Education Committee - Senate

List every bill that's been referred to this committee on the agenda for the opportunity for members to come and run those bills so with that we will go ahead and get started on that we've got A number in the back and then as soon as the Senate is concluded with their business then we will go into the joint meeting to consider the lottery revenue bills okay all right so starting at the top Is Senator Clark anyone here for SP three forty eight. First call second call. Three forty eight. As Senate bill five forty anyone here Senate bill five forty okay. You'll state your name for the record you're recognized to present Senate bill forty center draws Beckham run this bill Senator Breanne Davis of this bill there is a bill that ran earlier in session that we. Prohibited the path out of contracts to. University presents a chancellor's for more than one year the same thing in this bill that prohibits us pay superintendents or were dismiss more than twelve months of state tax funds. About their contracts. Okay. Members are there any questions. Any questions on Senate bill five forty Senator Elliot you're recognized for a question. Well I always ask if there are people signed up to speak with a lawyer there are no we are not okay I think my question maybe more for. Somebody else okay thank you. All right any questions from members of the committee were on Senate bill five forty. All right those to speak for and against. We have Senate bill five forty Dan Jordan. If you'll please come up. I feel this state your name for the record and then you're recognized to speak. There we go. Excuse me thank you a chair and members are then Jordan Arkansas school board association. A. We have our organizations is concerned that if this bill passes the districts will no longer offer multiple year contracts to superintendents. Which will in turn drive up superintendents salaries and subsequently a rise in costs to districts. And for that reason we are concerned and oppose the bill can you bring that Mike right up to you for some reason I'm the volumes are very low can you hear I can hear hardly anything sorry can you hear me now. That's much better you're just gonna have to speak right into the mikes apparently because sorry I know it's the volume is not turned up. Thank you and would you like me to repeat that ma'am yes please okay I'm Dan Jordan with the Arkansas school board association. An organization organization is as concerned that if this bill were to pass that districts would no longer offer multiple year contracts to superintendents which are concerned would be then with that is that it will in turn drive up superintendent salaries in obviously subsequently be a result in a rising cost to districts and for that reason we oppose the bill all right thank you. And just just let me make for clarification for the House members. A House members we're gonna meet after this jointly of the Senate's going to fart me first and then the house will meet with us but you can hang out with us we would love to have you. But you have to stick around because we'll be together afterward that okay alright perfect she's out with her okay are there questions for Mister Jordan Senator Elliot you're recognized for a question Mister what and would you describe what the process is now or if there is any kind of are there any kind of standards or is it just up to individual school boards how to handle these matters of buying a contract that would be up to individual district and that extended the contract tendered contract to this a superintendent in individual district up but there are there are not any likes a best practices or anything out there for people to kind of go by to create any kind of I guess common standards that's there's nothing like that that suggested. Not that I'm aware they usually go through local council I have with regard to to a creating superintendent contracts and the obviously local council that would be something that they would have to defend. And do you have any idea say like over the I don't know in a given year how many contracts might be bought out I'm not looking for a specific number but just how common is it I understand that are I do not know that specific answer I checked with A check with the Department U. cation checked with the Mister Association and and they don't track that we know of one or two per year in the last couple of years but no we don't we do not track that and I couldn't find any source that did. Okay all right thank you. Thank you are there any other questions for Mister Jordan Senator Eads you're recognized for a question. Hold on. Okay go ahead. Thank you manager do you understand you know what like some of surrounding states have as far as comparative to this as far as the level of the length of contracts if they can hold for your prudence no Sir I do not know the answer okay all right. What's the W. questions with the Department have that information now okay all right thank you venture okay thank you Senator Chesterfield you're recognized for a question right thank you if madam chair and thank you for being here Sir if I'm understanding your your logic you're saying that this will put you on your ability to recruit superintendent is that's not it what's your major objection to this. The concern is if super superintendents were not able to sign our multi year contract. What we preclude them from doing that. There would be nothing to report to them from doing that but if the cause for termination of contract depending on what that language wound up being and they couldn't be paid more than the balance of the fiscal year is with the I think the way the the bill is worded. Then they couldn't pay them the balance of whatever contractor ripping a three year two year or three year or two year contract. You could not use state moneys to do that but you have local monies don't you. Yes ma'am is there anything in here that would preclude local monies from being used to pay the remainder of it. I think so okay thank you. Or any other word. I'm sorry go ahead you can speak the way it's currently we're in a mental thing so okay. Any other questions. All right thank you so much we have Mister Mike Hernandez I believe to speak. Appeal to state your name for the record and then you're recognized. That working all right thank you right into it thank you my command as administrator sociais Asian. I think the N. one of the questions I think we had was answered by the last Testimony that was given but overall with that with the contract you know we have some concerns related to the S. multi year contracts that are afforded as capabilities to superintendents currently thank you in Arkansas those are a maximum of three years what this bill seems to add to the mix is that a board and the superintendent would have to agree on a series of things that would be specific to why superintendent can be dismissed for cause And I almost feel like I'm talking to both sides of our mouth in one way that could be a good thing because you know unless it specifically specified in the contract with those calls items or that could then force the district to have to do a buyout where is now That term for calls is is very general and no and some of the things that could happen by the way the superintendent doing something that didn't need to be done that currently that language is is I would think intentionally left vague because there's multiple things that could come up in a period of contract Turner when you go on to the second part of the bill where it talks about That the buyout stuff I think the the questions that we have thank you. There is that that question about what is state funds and so if if it is local funds that are paid out primarily through local funds to make up the foundation funding or additional money that's collected by the district by way of activity funds and that does allow for additional ways that contracts can be bought out and so that was one of our concerns is there is no definition in this bill of what is state funds There are some districts that have very little in by way of of local funds are coming to the district most a lot of foundation funding that comes into the districts of those kinds of districts may be unable to pay out that contract if that if that does come to fruition and so with that those are some concerns about you know if it does give an appearance that limits contracts and may have issues with the tracking superintendents into the profession if they're not allowed to maintain a three year contract that most thank you. All right thank you senator Chesterfield you're recognized for a question thank you Dr Anand is is there not a legal definition for call. That is usually acceptable such as creating harm. I would think so and so that that's the you know when you have to specify according to this is an up front negotiation about what is for because I would see that is is very explicit and of the items that would need to be listed out that I could be terminated for cause as a superintendent otherwise I would have recourse against the district for not having that delineated out my contract right now there's not a party most superintendents contract is it it is in terms of being let go for cause period. But I know we will we had when I was president of the school board there was always that subjectivity is this not given more and more definitive Reason for letting someone go by saying it has to be because not just because I don't like you which is what happens many times and school board contracts. I thank you in in terms of it being differentiated by what is determined for because I think it could be seen as limiting but of course I'm not to I'm I don't pretend to be an attorney but I would think that there is no doctor Hernandez. Thank you thank you madam chair. Thank you senator Chesterfield are there any other questions. I'm sorry Senator Elliot yes. I'm I wanted to get some understanding of what the not both of you are defining what a contract is the same way thank you does that include you know some of the I later maybe understanding it but some of them some of the other things that are part of the contract or not such as an annuity and and that kind of thing so if you would just tell me see we can get on the same page about what a contract is that will be helpful to me. So I would assume that a contract would include things if a district was paying out and a new team course not all districts do that it can be as simple as here's your base pay and and whatever benefits that are allowed all the way up into Car allowances those types of things so I think it would be inclusive of all items that were listed in the contract our incentive Beckham is that the way you see it as a contract it's everything to do with the employment and compensation for employment to that superintendent SO IT even if even if it included the annuities and other things okay all right that's helpful to me thank you very much. I'm finished manager okay are there any other questions from members of the committee all right scene nine is there anyone else here to speak for against this bill scene nine center Beckham you're recognized to close for the bill. Thank you manager this bill doesn't prevent school district from entering into three year contracts just prevents them from firing superintendents and because they don't like him anymore and using more than twelve months of state funds to pay for it about the contract it's a pretty simple bill we've just we've just passed that for college. College level and I think it's a great bill for the. High school in free of K. through twelve levels well. All right Sir what is the pleasure of the Committee. Motion to pass is there a second second all those in favor say aye. And oppose ayes have it the bill passes. All right. Senator make a motion well here yes you're recognized for me to make a motion a motion to suspend the rules to introduce Senate bill six ninety four runs expert Senate bill six ninety four okay and will you explain the bill six ninety four is a bill that I worked with the with the Department issue on four of financial personal financial education for college students I believe we have a copy of the bill we do have a copy of the bill numbers it was it's the permit driven bill it's a bill that's agreed to and that you filed it today no I filed it last week it read across the desk today okay. Yeah he added to the agenda is fine that's as motion. Second all those in favor say aye. And oppose ayes have it we will hear that bill would give us time to read it and then we'll go to okay Senate bill six oh nine Senator Johnson Senator Johnson here Senate bill six oh nine anyone running it for him all right scene nine Senator English are you running five nineteen or no. I mean six nineteen. Hi. Senator English you're recognized for thank you bill six nineteen Senator Jane English District thirty four and this is basically a a a bill to the concern school district board of directors and elections that's very permissive language should be a problem Senator English you have an amendment no I don't have it with me I'm sorry you do have an amendment yes I do okay movement. I forgot to bring that. Thank you very much. It's not a great thanks. Thanks a motion to adopt the amendment. And okay all those in favor say aye. Okay and is adopted you may present the bill as amended thank you. Okay so with that basically gives times for school board elections and the terms of office for a school board of board of directors and if the school board is elected so let's say a school district has been taken over and a whole new school board will be elected then that will be done during probe preferential primary election or general election time the school board members will draw lots just like we do in the Senate to see who's going to have a two or four year term the length of time for school board director in a school district that has a ten percent or greater minority population out of the total population it can have a four year or five year term. And of special school elections the election of a school district board of directors not elected entirely during the same election may be held in each public school district of this state on the date of preferential primary election general election or an annual school election. Other questions Senator Chesterfield you're recognized for a question right thank you madam chair Senator English recognizes not less than three no more than five. And you are moving into just four and five is that correct by. Why is that I'm so that just like the senators for years also across the state is it the you have even numbered terms I mean I years of term so what I would be for a four year term or a five year term. Well that be elected for a four year term a five year term. It is there something that came up that said the three year is not working or is this just something that you just decided he wanted to do I think this to equalize it make it more consistent across the state. Which means it would take longer for them to get rid of a bad school board if they want to if they had three years is that right. Awesome thank you. Yes senator Elliots you're recognized for a question. I just wanted to be clear Senate Senator English so the the the problem that you're solving here is just a matter of creating consistency or is there a problem with the way it's when I know there's a consistency just kind of like we've done with school board elections for the last two or three years is instead of having them haphazardly we have now we have the very primary elections during general elections this just continues that. What I'm trying to find out is there is there there's no issue with the way that is now we just make that okay thank you. Are there any other questions from members of the committee. All right is there anyone here to speak for or against Senate bill six nineteen add to have Dan Jordan. You'll state your name for the record you're recognized. Thank you chair I'm Dan Jordan with the Arkansas school board association brought Lucas harder who's one of our council that. Caught the issue with this bill if I may allow. Yes please. Look it's harder Arkansas school boards association. And not again not having been able to see the amendment we say we still have concerns as as was discussed last week with the potential constitutional questions on article fourteen section three but I would also say that if the if the bill contains the provision that. If a school board is all elected at the same time. As of right now. Under six thirteen six thirty one all school districts with at least a ten percent minority population are required to elect all new school board members next year. So if this has the potentiality to actually cover a whole lot more districts than just those that would end up being returned for two local control. Okay so are there members any questions from the membership. Senator Elliot you have a question yes. Mr Jordan this is so that. You have not seen the amendment and. Did you know there's going to be an amendment. There was a there was an amendment brought to the meeting last week but but the bill was pulled and we didn't see the amendment and we looked on the website and there was an amendment this morning there may be one now but there wasn't one this morning so we haven't seen that amendment it may be the same amendment of. It's the same amendment it's the same amendment and we did discuss this bill but I think Iran. You. Can I ask you Senator English if you don't mind just pulling it down and having a discussion with them in the back about the amendment would you mind doing that and we'll come back to you I'll be fine okay that said I'd. Council from that of our education as well come to the table. I don't think there's a constitutionality issue from what I understand from the department of education we keep talking about that but I don't think there is an issue okay. I DO want to power while in the back. Have a discussion about it that would be great okay we move on. Right we're gonna come back to that bill and if if the general counsel from the Department of that can get was Senator English and Mister Jordan annual powwow about that that would be great Senator Beckham are you running six forty nine. Yes senator Chesterfield. Sorry. I'm not used to this new board yes you're looking at six thirty is this not the bill that was pulled from our committee incentive Revenue and Tax yes okay so it really isn't on our agenda yes now it yes that bills already off the Senate floor okay as I'm not sure how Senate bill one direction thank you. Senator second Senate bill six thirty right across for six fifty it's already at the house yeah I know I don't know how that yeah it's on the agenda that okay Senate bill six forty nine centre back are you running that one. if the senator Beckham if you will you're recognized Sir Charles Beckham Senate bill six forty nine is an act requires certain percent a lottery proceeds. Users could to be used for scholarships at the increases to twenty what twenty percent. On. June thirtieth twenty twenty two all the way up to twenty five percent on June thirtieth twenty twenty seven. Increasing one percent a year. Okay other questions from members of the committee. And okay I'll just share my concern about it is that the way it's structured The way it's structured to me I I think the the intention is is good by the way it's structured may actually jeopardize the lottery itself in the scholarship themselves so. Those are just my concerns with the bill but other other members that have any questions about the bill Senator Elliot. Buckham Would you share with us your rationale for one of this percentage you know as opposed to a. I straight amount that we might. Read it to the presenters rather than just a straight amount that might result from the. Yes. Please thank you it in seven numerical a dollar figure to use the percentages so that when we have swings revenues it'll just down and up as well any business should have a. In my personal business the business of my wife and I run we have a percentage of overhead that we try to try to maintain and that'll allow that. Dollar value to change as as our incomes change which we still have a certain amount that was set aside for prizes for operating expenses and the amount for the the scholarships to be paid out of the the idea here is that reason scholarship as the namesake of the lottery. To to sell people on the lottery when the past and we're paying a very small percentage. To the scholarships overall and the. The numbers that I've seen this is shown a trend downward on the amount that's actually being paid out percentage wise year over year and that's concerning to me that we may not have controls in place within the scholarship to women are expenses while we maximize of the prize payout and the return to our. Our scholarships which is the intent of the lottery. Okay thank you Richard. Any other questions from members of the committee. Art scene nine I have somebody here to speak against Eric Hagler. calcular here. Sure can you hear me yes state your name for the record and then you're recognized my name is Erica I'm the director of the office of the Arkansas lottery I'm here to speak against Senate bill six forty nine I know that the days long and session is winding down and I'll be brief with my comments I'm not going to go over the same argument that you've heard in twenty nineteen twenty seventeen twenty fifteen about. Having a bigger piece of the smaller prior having smaller piece of a bigger pie think that point is all been made but what I would like to point out to you is this. Since the inception of the Arkansas scholarship lottery the return on that investment averages annually eighteen point six four percent. That's a nice returning any retail business. We did train down in fiscal year twenty twenty a year that I inherited and I believe that we came in just a tad above sixteen percent. Currently we're trending at eighteen and change so we're training the right direction one of the things that we're trying to do with the at the lottery is we're trying to run it more like a conservative business and and less for topline sales we objected to a bill that would have allowed us to pursue keno we don't believe that that's correct we're running a conservative lottery but what what a Mandate does. Is it attempts to fix something that's not broken you use a mandate when an organization is woefully underperforming and that's simply not the case of the Arkansas lottery right now the way of example since twenty eleven we have funded over one billion dollars in college scholarships so when you get down to numbers those are audited numbers and those are verifiable so we are performing very very well. We're setting sales records but that's not our goal what we're looking for margins we have to sell games that provide good margins that allow us to continue to grow healthy lottery and that's exactly the path that we're on. I'm I'm driven by the old adage don't try and fix what's not broken in twenty fourteen the lottery was in distress and it appeared before this body and this body rightfully to concern since that point in time the lottery has begun to return to health. And I'm I'm I'm buoyed by the fact that we've had some executive administrative changes of the lottery they give it a little bit more of a A focus on running it as a profitable organization as opposed to simply driving outside sales for headlines. The effect of a mandate does a few things that you need to understand first it's a draconian measure mandates are just that they are a mandate it is a government mandate it tells us how to run our business we start with one metric among many matrices that are present in operating a business when you focus on a single metric it's a very dangerous thing because you're shutting doors and you're limiting your options by way of example the mandate that's proposed absolutely ignores ordinary business cycles anyone that owns a retail business or any business of any kind understand business cycles you can trying to stretch a business cycle outlet you will fail it's been proven time and again and every economics course that any of us have taken business cycles will occur the market simply has to breathe numbers will go up and numbers will go down the ideas you're playing for the average in consistency the second thing that are mandated Norris's economic market forces. Economic market forces are a result of a competition for discretionary dollars the lottery competes for people's discretionary dollars we're not looking for their rent money we're not looking for their gas money but as the economy ebbs and flows the purchase of our games will have been flow along with it in the profitability of the lottery will also be impacted along the way. A mandate nor is other things that that we've seen now is being historic in nature of a pandemic forced me here in February we we lost fifty percent of our retail business to the weather. The numbers reflected that that's the ordinary life in the business world and when you have a mandated number that's the number you're chasing constantly to the exclusion of operating an otherwise healthy business. With regard to the timing of the mandate well I don't believe the mandate is is is merited. It's important just by invocation understand that the lottery we plan our games nine to eleven months out this isn't something that we can stop and turn on a dime all right now fiscal year twenty twenty two is already at the printer our tickets are being printed our advertising budget is locked in our financial budget is set. We would have to throw out everything we've done for fiscal year twenty twenty two to accomplish the mandate under Senate bill six forty nine I could go on and on with a host of reasons as to why I do not believe the mandate is appropriate on behalf of the staff of the Arkansas lottery I would like to ask you to vote against this bill would like the opportunity to grow this game organically it's being run by our Kansans for the benefit of Arkansas students I'm available for questions thank you. Senator Chesterfield you're recognized thank you in which you repeat your name please Erica garner. Hey word had H. HG Ellie are okay cake or Mr Haigler could you tell me where the other eighty two percent goals yes absolutely eighty two percent you're looking at administrative costs you're also looking at it mentored by percentage if you don't mind I don't I don't have that with me now we know eighteen percent goes the scholarship that's correct but you don't have any idea how to break it down by percentages as to where the other amount of money goes. I wouldn't want to speak out of turn I have those numbers available and can make those numbers available to you but I I understood that the meeting today would be short and I did not bring a complete file that that barely hear you were here. They've got to tell you we're not short I guess my concern is if we know what senator Beckham is trying to do is get a larger percentage which would reduce the and the percentage they go somewhere else correct so that's why I'm trying to find out what percentages go to what because we know only eighteen percent goes to the lottery but I don't know where the other money goals I know a percentage has to go to the persons were buying the tickets for a Powerball mega ball a cache three or four you know whatever it is but I need to know what percentage that would be so helpful to me absolutely one of the one of the issues that that I think the lottery has has worked itself into is is an imbalance in its game portfolio would you look at the lottery you have two types of games you have instant games and you have drawn games those games are provided to the lottery on a contract by vendors those vendor contracts which were executed in twenty nineteen set the the amount of compensation and compensation is based on sales. In my mind if I were negotiating those contracts today I would change that and I would base that on net proceeds and going forward I think that should be the path however when you're in a contract it's hard to change direction maturing so what we're trying to do is organically move in a direction where we are balancing that portfolio our margins in drawn games or twice what are margins are an instant games they grew the lottery successfully when it was precipitously declining in twenty fourteen the idea to goose the lottery for revenue was to hit the instant title so instance sales went up instance sales go up but your margins are very sent so all the money coming in and most of it is going out it's going out in the form of prizes it's going out in the form of vendor compensation so I wouldn't sit here and and tell you that the contracts are where I would like to see them but they are contracts that are in place and we're having to work within the confines of contractual terms they're outside contracts I was shocked coming into the lottery industry and and I share senator Beckham's concerns and others however I do not believe that I mandated return is the answer to trying to balance that portfolio so that we have more of a balance draw game portfolio which gives us health your margins to offset our instant that the reduced margins on the instance side in a camera and I appreciate all of that but what I'm trying to find out is how much goes to administrative costs what percentage generally goes to the pay offs what percentage goes to advertisement for percentage goes to communication that sort of thing and you don't have those figures are are administrative costs and again I hate to hate the ballpark but I'll do it. To try to come to you are administrative cost away from any vendor services is slightly under a million dollars a year so when you look at that you can tell very easily with these vendor contracts are expensive I don't think anyone would sit here and with a reasonable expectation of Rick Rick remaining credible I thank you I don't know which vendor contracts are I don't have any particular angst about your vendor contracts I'm just trying to get it how do we distribute money percentage wise that's my I have no ulterior motive not dealing with anything else I just needed to know that because it helps me to make a more informed decision thank you very much thank you. All right thank you are there any other questions from members of the committee okay Senator back okay thanks good question sure. Thousands legislation would allow you to go back to your vendors and renegotiate contracts correct Centerville choir to pay out more in. Rises it would Senator it also would have this rate net proceeds for the year but we can certainly do that it just I think I think the body politic would have to be comfortable with the lottery would essentially go to zero revenues to get that done. It would be a restart of the lottery essential. I mean we we you you alluded to the fact that this is going on for a decade has been brought up for a decade we've never approach that we just sign contracts that you allude to or being bad contracts correct I don't know that they're bad they're not beneficial under the current sale structure because we've we've sold enough of a of the instagrams to swing I believe the balance due to the negative I don't at you know bad good I mean that that guess that subject when you're signing the contracts one thing I would point out though with with regard to Amanda is Wall Street sets economic expectations for every publicly traded company of size on the street. Not even Walmart can can hit their numbers every year I mean the the ordinary vagaries of business cycle economic conditions and market forces are such that you're always trying to break in pedal at the same time you can't rely on an accelerator you can't rely on a break you have to have the full benefit of all the tools available to you and that's what we're asking for one of the things that you can do when you're trying to restructure within the contract period as you're looking at margins were not forced to sell any particular game so as we are doing a margin analysis and remember I joined in August of twenty twenty but we're in the process of doing a margin analysis right now in each game in the portfolio we will be able to shift in focus within the portfolio and I believe we can gain some balance during the life of the contracts obviously if a vendor begins to fail us or under perform their mechanisms for trying to extricate from that contract that's that's not where we are at the current moment but we are certainly looking at our margins and we are certainly looking at the under performance. All right thank you is there any other questions. All right as the nine thank you very much we did have somebody speak for which is thank you can can you hang. I'm members after this bill I'm actually going to go back to Senator English as bill if they have figured that one out but we're not going to run anymore Senate bills or House bills today after this bill always every year is that we we suspended them the rules for yes but I didn't so we can get on it's almost five o'clock and we want to get the House members there waiting for us I'm sorry okay Mr Yang if you'll just state your name for the record and you're recognized to present hi my name is can you hang on with the Arkansas family council thank you madam chair I'm back again on this is my fifth session working on the lottery as it was alluded to we talked about years ago thirty five percent to proceeds thirty percent to proceed to twenty five percent of proceeds now a you know five U. five fiscal years you get twenty five percent because we want them the water to have the time to to do that According to the Democrat Gazette back in twenty ten the Arkansas lottery pays one of the lowest percentages in the nation for its stated purpose that is still true today and so you know we talk about the return how would investment is eighteen point six four percent yeah that is true but the national average is thirty two percent would you have rather have thirty two percent or you rather have eighteen point six four percent we talk a lot in the legislature about where does Arkansas rank on a lot of things we don't want to be at the bottom Arkansas consistently ranks at the bottom when it comes to scholarship lottery bottom or next to last and the water has been around since two thousand nine at some point we have to get away from what I call the ghost of already passed away. And that has to stop we keep talking about a proceeds given Louisiana recently had thirty five percent mandated reduced to twenty five percent but guess what they still give thirty five percent to the to what they're supposed to do Oklahoma thirty five percent repealed in two thousand seventeen they still give twenty five to twenty eight percent Iowa continues more comparable to the state of Arkansas and population continues to give twenty three to twenty four percent. The lottery consistently gives out more to its players it's in the top five when it's proceeds to the players over seventy percent the national rate on that is sixty five percent even if you were to take that from the price pool Arkansas would still be above the medium median on on the Scott on prizes given out. All in with this because these two things is. It Louisiana border state in fiscal year twenty eighteen twenty nineteen twenty twenty thank Garner around five hundred million dollars which is around ten million dollars less in Arkansas depending what fiscal year look at and they still gave eighty million dollars more to what they suppressed what they're supposed to fund that trend continues today. Even if revenue dropped by one hundred million dollars for the larger here in Arkansas requiring a twenty five percent pay out would increase the scholarship funding by more than ten million dollars so the idea the Lowery fold is not a good one. My last point is I hear a lot about saying that this is to shut the water down and I take great offense to that because it is not. As joint Senator Elliot knows I voted for the scholarship lottery that might not be a good thing to say working for family council voted for the scholarship lottery I received a scholarship lottery so I want more students to get scholarship lotteries and I want Arkansas to no longer the last when they get when it's given out to proceeds so I think it's time past time that Arkansas starts mandating the Arkansas scholarship lottery which is failing the students of Arkansas and getting more scholarships and students hand here in the state of Arkansas with that I would ask for a good vote on SB six twenty nine and we have to take any questions are there any questions. Senator Elliot recognized for a question. Mr Yang one we've talked a great deal about the percentage or the numerical amounts yes and and what I've heard in the past is we're better off for having that numerical amount because the percentage you might have less money you might back ourselves into a corner but I'm looking at the the bill though actually it the bill actually says that when you use a percentage of not less than we still have this large amount of money it wouldn't it would not be you would not be precluded from adding that larger amount of money to the percentage that you have the bill is that correct correct to be similar like Louisiana or they mandated at twenty five percent but they give thirty five percent every fiscal year okay thank you. Are there other questions for members of the committee. All right CNN thank you very much thank you all right is there anyone else here to speak for against this bill. Okay Senator Hickey you're recognized speak against. Managers who signed up. I'm the chair that's my prerogative. Thank you members. Thank you members I don't know since I've been here since two thousand. Thirteen if I've ever come down to speak against anybody's bill be it in the chamber or a or in here but I have to say this you all know that probably around two thousand fourteen that we had some major issues with the lottery we were in the red and cash flow was horrible and we got in there and and did a lot of work to try to correct it a lot of that was not fluent was not easy we had not only re work Some of the scholarships are given out. But we also would hired to hire a consultant for the lottery to try to to try to approach it from the revenue side in addition. And as you know at the beginning of the session we passed a bill where we were actually able to take a hundred million dollars to be able to start running the watery one year when you're in arrears which is something that we always needed to do so to say that this thing that we have not been working on it and and doing the right thing is just an understatement I agree with Mr Hagler with what he said one hundred percent. Any time you start trying to mandate a returning to business this is what happens that all sounds good as long as everything is a little raw along and doing good but if you have a downturn in the economy where the revenue is not we're supposed to be but you have a mandate. That's that's in place what what you have to do at that point is you have to cut into your expenses and then what you have to do is you have to cut into your expenses that are possibly us creating of additional revenue for the lottery such as your marketing such as Yes your marketing maybe maybe even your sales people that are going out to the vendors. Another thing that you need to think about whenever you're doing these these contracts that we have in place with the vendors there their own a term and those and those are locked in if you want to try to help the lottery and if you want to try to be involved and do that then where you need to address the address those type things is in lottery oversight that's why we have lottery oversight this set up through a L. C. so that we can get in there whenever these contracts come do and try to get those things to go she added. That's where we ask the questions and that's where we do the review at the approval of those so with that and like I say we've come a long ways with this member members and we and we deal with this literally every session and it's just it's just not a good good way to do it we just need to approach it from different a different way I appreciate you Senator back with bringing it up I know that it may sound like a good thing but from my standpoint it's just not the way we need to go thank you thank you Senator Hickey is there any anyone else see or hear speak for against this bill right C. N. nine you're recognized to close for your bill. The manager in mandates on always draconian the oftentimes a correct vendor expectations contract expectations help help you with contract negotiations said the expectation to hold people accountable for their performance special people the manager oversee lottery the vendors employees all those people be held accountable with some type of expectations that in business in my business we set expectations we set up percentages that we want to see returns on I'm sure everyone in here that has a business does the same thing. And your father called a scholarship lottery I think we ought to set the expectations. Of what type return we want to see. And demand that we receive the returned. That appreciate a good vote. All right thank you. All right with that motion to pass is there a second. Second all those in favor say aye. One. And opposed. I know that but thank you. Senator Beckham set there and run six ninety four. That will bring you a copy of it. And if I can get same Broadway to come to the table. Them okay after this bill we're gonna go back to Senator English as bill so it's six nineteen Senator English. And then organize in the Senate Committee and then we're going to go to the lottery bills at the joint meeting all right if you will state your name for the record you're recognized to present Senate bill six ninety four Senator Charles Beckham. Shame roadway issue system all right of this bill requires a division higher education developing the synchronous module on the concept of personal finance and macroeconomics. Or just distribution of students enrolled in the institution of higher education of members this bill came from the meeting we had I think was last Monday morning I'm sure you'll notice me trying in every athletic director and coach whether not able they believe that personal finance should be taught higher education I personally believe that should be and this bill helps ensure that we're exposing students to savings to a personal finance management written investment plans retirement plans retirement ideas things such as that in the. Shane Broadway is been gracious enough to help. A draft this legislation and get a bill that. They're happy to support thank you your for so you're you're recognized thank you manager members of the committee I'll be brief and I want to say first off how much I appreciate Senator Beckham coming to us before he filed his bill two of sit down and visit and kind of walk through some of the issues because they sometimes send initial draft can create a lot of issues surrounding number of credits required for graduation for scholarships all those kinds of things and so I think what we've come up with will be what I think all of you want and I know Senator Irvin you have a bill that's or over in the House about financial literacy and creating a commission I think this will work hand in glove with in terms of developing that all the campuses have some kind of program that we normally provide to our students prior to their enrollment in the state required and so we have a great ones because Carter to black red black scarlet to black that we do on the issue over campus I know a lot of the other cancers or have been working on similar thing so this will allow us to all work together have reached out to economics Arkansas which many of you have been on their board been involved with their excited about partnering with this and so I think we'll be able to pull everybody together develop something that students can take that does not upset the the core courses that are required by statute or add to the graduation requirements and so I appreciate center back working with us I think this would be a good thing. I think when we have a discussion around the name image and likeness bill that came before us that representative Shepherd Scented you know a lot of the information was making sure that those student athletes have the ability to understand financial literacy and and what exactly that was going to mean and as for them if they open and go down that path right as they walk through that door they need to be prepared for eggs everything that that opportunity would present to them and so but it should just be our student athletes I mean financial literacy is so incredibly important and every student on that campus at every campus of higher ed really needs to be you know exposed to that and and given the opportunity to learn because it's so critically important and so you want one thing I'll add one thing until center Beckham one the biggest challenges we have is first about student loans we always get calls about are you letting kids to got this that we we have no option we can't tell them no you can't do this by federal law I've had a conversation with our conventional delegation every time I go to the C. give us authority to be able to say no but hopefully we can use this as a tool to further encourage this courage them and taking out all the money that's available to them interest have a back later on in life yep that's about making good choices appreciate that. Any other questions for members of the committee. C. nine anyone here to speak for against this bill. C. nine are you close for your bill as for the receipt of the motion to pass motion do pass is there a second. Second all those in favor say aye opposed I'd have if the bill passes. Thank you senator English do you want to go back to Senate bill six nineteen did you all get that worked out. Hopefully maybe okay. I will try it anyway okay. I if you to state your name for the record then you can be recognized. Senator Jane English and I have that part of education general counsel with me. Courting solace for chief legal counsel for the department of education okay. Mr Ford do you want to go ahead and just. Speed things up give us your two cents worth please sure so as amended the the department does not believe that the bill on its face is unconstitutional or conflicts in any way with the Arkansas constitution With complete respect for any of the opinion and concerns raised by the school board association's council and you know the concern being that the bill allows for a school district to choose to have school board elections every other year instead of every year by having terms of two years sees me for years and so if they were to also choose to have a millage election and not at the annual school election that at a at a different time so I can during a special school election then they have the potential of being challenged that they did not in fact have an annual school election. It is possible that a court could read article three as The cons at section three of article fourteen of the constitution it to require an annual school election again there there's a disagreement they are whether in in fact does that it is our opinion that it does not but if someone was to challenge a school district that is a decision that a court would have to make in order for that to happen a school district would both have to choose to not have a school board election in a particular year and she used to have a special school election for the millage and so that is what led to the school boards association having concerns about this bill again for that reason we don't believe that it's unconstitutional on its face because the bill itself is not conflicting with the constitution it is just making permissive choices that a district could make that might cause a situation where someone could challenge them on constitutional grounds got to okay so may I ask Senator English is this a bill that was requested by the department or by somebody or just I think bye bye of interested parties interested parties right okay. Okay. Okay senator Elliots. Reckless thank you. So is centered in English I was gonna ask that same question who wants the bill. Are you not in a position to tell us anything might have a sickly it yet what we've I did four years ago was to change the times for elections to general elections primary elections at specific times this just kind of adds consistency to that yeah I under I understand what you're a bigot so when I asked earlier if we are solving some kind of issue and there is no issue so are you just not in a position to to give us any idea of who wants to build on I know you don't have to but that would certainly I don't. I don't understand necessarily why we're changing something that's not an issue that could maybe. Maybe be unconstitutional or at least put a school district in a position of having to find out if it is. So we don't have to put him in that kind of position on it says help me with why we should what we should I just I just think it's a good bill would be able to add consistency to what we're already trying to do. I'm trying to figure out in whose interest is it to have the consistency that I don't know if necessary modem against you can be excuse me thank you I don't I don't. I guess I'll just leave it but if you can't tell us anything else thank you much thank you on. Okay Senator Chesterfield you're recognized for a question yes madam chair I guess my concern is it something else we're taking away from local control. School boards have been able to determine the length of service between three and five years since time immemorial it had created a problem. In and I begin to wonder why we continue to decide local issues about how long they will serve if the school board wants to be there school board members three years and the community thinks that's the best thing for them so that they have more access because House members only serve to hear. We serve for the you've got a minimum of three. And I'm trying to see what it would be a problem because consistency of. ET I'm not I'm not into the consistency thing I guess I'm more into we continue to take authority away from. Local school districts and parents in those school districts to determine what they want to do in their own school districts and that's why as a concern of mine I think this says three for five years. Is this three to five L. rate for five year right and so why not just leave it there and let them determine if they will people there for three years four years or five years that should be up to me. That should be up to the local school at the school district and the parents who are in that school district and we're taking that away from them that's my concern with your bill. Okay thank you are there any other questions. All right and we've heard at a opposition I don't think there's anybody else signed up to speak for or against this bill that I can tell is there anyone out anyone to speak for against Senate bill six nineteen yes please come for. Miss Courtney thought the you can be excuse please according. If you're the state your name for the record you're recognized. Yes. Jerry Newton with Arkansas learns of we're in support of the bill because of the increase in voter participation but I specifically wanted to come up in reassure senator Chesterfield that it does not change three four or five it simply adds for as an alternative alternative. In the district's ten percent or more minority right now ten percent or more minority districts have to have a five year term. And if those districts chose to go to the every other year term five year terms wouldn't work so it simply added four as an option to the ten percent or more minority districts the three four or five options have not changed at all so the bill is a hundred percent permis it has nothing dictated that the local boards must do. Okay are there any questions yes senator Chesterfield you're recognized for a question you telling Mr Newton of any of those minority districts ask you to do this. The district's didn't ma'am but school board members have have expressed support for this. For the for two reasons primarily. The increase in voter turnout because after Senator English pastor bill before more every school district in Arkansas set a record for turnout. In school board elections. The second is the cost savings when a school district now has an election in an off year it must bear the entire cost of that election when it has chooses to have an election and every other year in even numbered year it shares a percentage of the total cost so individual members are very supportive I haven't heard from those that are not supported at this because it's a hundred percent permissive everybody can choose what they do or don't. Mr Newton yes ma'am. Those districts have the opportunity without this legislation to change how long they will have a school board in place do they not know man it that. Well but you said that if they may choose how long they have a school board if they want to have school board member secretary for five years they have the opportunity to say that don't hundred percent and less there a ten percent or more minority district to send more minority district they have to have five the law says they have to have five and if they have to have five is it heard anybody it doesn't hurt anybody but if you're going to get people the opportunity to have the every other year election and you only give them the option of five year terms it betrays the whole every other it was just giving them an option to do that if they wanted. And how many of those districts are we talking about. I couldn't tell you I know that the team of the Arkansas school boards association estimated be over a hundred districts that may have to re draw because of being zone because of ten percent or more minority after the senses so you remember the school boards association and no ma'am I'm not a citizen votes for school all right thank you yeah. Senator bless your I mean Elliott English Elliott Elliot. I I'm trying to I'm going to understand more about who's asking for that for this bill so you said it's it's individual members but not saying school boards themselves is that correct Mars Senator that that would be accurate I. I can't speak for school boards I can speak to why we were supportive of it and why we reached out to individual school board members to find out what they thought about it and I I would hate to quote them here I'd be. The but I can't without at the distributing what they said it was about costs in those elections an about turn out it also gives the consistency of a two year cycle with no change whatsoever in the board if they chose to do it who knows it'll choose and do you have any any concern at all about the. The questionable constitutionality of this of the bill I know ma'am because I've and I'll forgive me I'm not a lawyer but the at either article or section for leave school board elections entirely up to the legislature the constitution does not mention school board elections are elected how to elect school board members so. When Senator English file this bill this just seems like a continued perfection of doing everything we can to get as many people to participate in school board elections in our view the most important local elections in our state as many as possible to participate what is it that the Little Rock School District support this too you know because I'm I'm we've not heard I've not heard anything from anybody about individual members of the physical members hi okay all right they don't have to shore thank you. All right thank you just thank you thank you very much are there any other questions from members of the committee hi the nine you're recognized a close for the bill some clothes for the bill all right and do pass motion to pass as amended correct. Second all those in favor say aye hi and opposed no. I must say the nose hobbit because I'm not sure if I can count to five roll call. Yeah thank you can count okay now gotcha I'm sorry I needed to committee on I'm sorry that they don't roll call it. Thank you thank you all right members and at this point we're going to East hearing any Senate Committee met Bills just for clarification if you're here to testify we appreciate you coming today however we will not be hearing house bill seventeen forty nine house bill seventeen no one House Bill eighteen twenty six. Those bills will not be heard today so we may have them on the agenda for Wednesday that we are ceasing that committee for today and we're moving to the Joint Committee agenda and without the