Insurance & Commerce- House

We we have a relatively short agenda today. But some some significant issues. We're going to take bills a little out of order I I have to leave to go to Senate revenue tax someone turn the chair over to a representative Maddox the first bill we're going to take is Senate bill 594 then Senate bill 602 and then we will take up Senate bill 49 members of the we do have a short short agenda. I think the motion that we accept it last time the limit presentations to 20 minutes worked pretty well for is is there if there's no objection I would like to operate under the same rule for today 20 minute presentation which would include the the member and whatever within say bring to the table but that would not include the question time if there's no objection that's what we will operate under today okay thank you very much. So at this point I'm going to turn the chair over to representive Matix and representative hawks you are recognized to compress present your bill. Thank you Mr chair and thank you committee and 5 it's a great privilege to be able to present this bill today Senate bill 594 I think it's been said once 1 small step for man 1 giant leap for mankind. Arkansas is one of only 2 states without any warrant of habitability and today we have the opportunity to make sure that that happens I believe that there is a man an amendment that you guys are getting and so I would like to. First of all adopt the amendment first. Purpose of Alan you're recognized. Motion to adopt with a motion on the floor to adopt the amendment all in favor say aye. OPPO's NO represent park school in present your bill as amended thank you Mr chair. So as I was saying this is a great opportunity for the state of Arkansas to do something to protect our tenants and to give them a basis of security for whatever they enter into a lease agreement I know that we have looked at legislation in the past and we've not been able to come to an agreement but as far as I know at this point most everybody is on board and so what this bill does is it gives the tenants the ability to have someone of habitability and they also have the opportunity to to leave a lease without penalty without worry of repercussion from their landlord and they have a certain rights in here including the ability to put in smoke detectors in a property carbon monoxide detectors of which I know that that shocking the you know they've not had these opportunities before and so again this is that uh bill that's very well agreed upon and I'd be open for any questions. Thank you Resum parks for your presentation resent Boyd you're recognized for a question. Thank you Mr chair so the the question is it is kind of the basic thing when we come and look at these and it I understand that we need to have a contract are we need to make sure there's a certain level have ability ever I mean I think our Kansans want other are Kansas have to a safe healthy place to live but we also want to make sure they have a place to live so the main question I have is are these things gonna price tenants out of a place to live. Representative boy that that is a great question and I think that that is a reason why we've not had anything agreed upon to this point you know I've grown up in real estate development had rentals myself and that is a concern that I've often had it some of the bills we look at in the past is it frankly I mean there are there things that just would be too much and we would end up pricing people out of homes but I don't see that this legislation would do this I think this legislation will take care of the really bad actors that we want to take care of and it will not be a burden to those good players that we have that are in there to help the tenant so I don't believe that this would be overly burdensome on them. As a property owner myself. Thank you for that response any other questions by the committee for reserve hocks. Okay saying then we do have a motion that will address the proper time we do have some people signed up to speak in regards to this bill. What appears of a semester Smith you are the first person signed up to speak for you like to come to the table and introduce yourself. And present your testimony. My name is Sylvester Smith I'm a local attorney the represents landlords and I've been down here several times to speak to you regarding these various pieces of legislation and one of those instances representative flowers challenge me said is there any version of have ability that you would support and ladies and gentleman I want to say on behalf of the small landlords in medium size limits that represent this is the version that we can support this is a good bill I do not believe that it would be over burdensome represent what I think that it would provide the adequate amount of protection and do so in a way that won't. Cost out the small landlords just trying to help somebody out also with regard to the fiction process there there were some areas of the existing law that I believe needed to be fixed and this bill addresses those for example of the the law said that the service of these cases would be done by this year or lease it implied that and so this clean set up so they could be done by this year for a process server which is the the manner in which most of these cases of service so good overall bill I will provide protection for our citizens and also clean up one of the challenges that we've had in in the existing statute and I'd be happy to take any questions Mister chairman one heading thank you for testimony Mister Smith Committee are there any questions. President feeling you're recognized. Thank you Mr of. What you said this is a good bill. And I said the bill was a good bill so was different and not a good bill would pass out here and this bill. Approves the feeling I I think that is a of a very fair and appropriate questions the other one in my opinion created some too many burdens for the landlords I believe that there were to meet requirements and then one of the challenges were in my opinion the remedies FOR example the ability of a tenant I believe at the time it came out here the tenant to fix certain things themselves and then apply a credit to the future read I've I can't review was amended after came out here or if it came back to be amended but even the last version said that if there was a problem that would require 3 months worth of rent to fix that the tenant could just leave and that the landlord would have to give the tenant their deposit back in so there wasn't any flexibility what if the landlord could afford to fix that in the land or want to make the determination to fix if there wasn't an out for the landlord to say well Hey look I'll just go ahead and fix this don't worry about it it was solely on the tenant to decide well Hey I'm I'm here the other problem with that piece of legislation in my opinion was it's language that said if there was such a problem with the 10 the chills the lip leave the landlord could not relate the property until that was fixed and fixed appropriately well who's going to determine that and I just believe it would have created some potential liability. Thank you resin filling are you finished okay any other questions by the committee for Mister Smith okay saying and thank for testimony thank you Mr the peers would have someone signed up to speak against the bill and naias trow deck I'm not sure by said that correctly or not but. If you would introduce yourself and who you're with and you can proceed with the testimony. Hello I'm I'm I used to adopt from hot springs village. As I representative Richard McGrew said. That we were if you're dying of thirst and you want a bottle of water and there's only. A couple of water that I can give you would you want to die of thirst to will you accept that bottle of water that to a Cup of water. What I'd like to say is that for us this these are drops of water that we are getting right now and appreciate the work that everyone has done on this bill Asa representative Haak said this is the only state in the union. That really doesn't have any good warranty for ability and habitability. I'd like to take a different take on this the last Speaker mentioned that if the landlord can't afford it to make the repairs the tenant can leave. I'd like to talk about stability of neighborhoods. It's very very important for landlords to understand that they also have a right to maintain the stability of the neighborhood to maintain order when it comes to. Not kicking someone out because of certain reasons for the attitude of if you don't like it leave causes so many problems for a tenant the mother many times as a mother with children how to take your children out of school change schools which leads already to instability in the family might have to take them out of the church that they go to where they might have to leave the ethnic community and they can't find another adequate place to live and the whole family starts to go down what happens in the neighborhood once you have this common goal of tenants and where the landlord really isn't living up to the help have that have that ability laws in most states. It leads to. Drugs. Gangs coming into a neighborhood in the neighborhood starts to fall causes no stability we as citizens have the right and the responsibility to protect each other. And we as landlords we need to protect the tenants I'm a landlord I've been a landlord for 50 years I have property in 3 different states. And. I find that. If the landlord who really understands that it is our right to protect us the tenants to protect the state and this is even the obligation of the US government to protect protected citizens this is what we have to do with landlords we have to make sure that that that that the properties are in good working order because that way when you have. My neighbors who know each other for the same time yes Sir Mr I don't want interrupt you I don't mean that are to be if you can really really speak specifically just on your your objection to this bill or your thoughts specifically on the bill well it doesn't it it puts a lot of responsibility on the tenant the smoke detectors and carbon monoxide that representative Hawks mentioned. They can have them. And they can take care of them but it's no responsibility for any landlord. Carbon monoxide also. The constructive eviction. That's that's something that this. This. The bill addresses in a certain way and that is that is a good thing. If the if the landlord really does not. Fix the property if there's no agreement but once is agreement between tenant and landlord they both have responsibilities to keep a proper check the landlord especially. Are there any other questions. Thank you I'll do that I appreciate all the work you've done on this. All of him pardon would you say that thank you I'll handle that part of it representative or did you have a question no you he per she. Thank you Mr chair I just you know you you mentioned the personal responsibility the Tennant and I think that that's important I I'm a believer in personal responsibility and the landlord has to have some personal responsibility as well but one of the challenges that has been discussed whether I personally have that or not is again the affordability the pricing P. so when the tenant has some additional personal responsibility will that not help ensure that prices of real property stay affordable for tenants doesn't that help bring some balance to the equation well of course it really has to understand what his or her responsibilities and rates are and that of course depends on the kind of lease that you're giving and the understanding of that lease this is your job this is our job we'll be watching will be contacting you we will be supporting you. That thank you I represent what did you have a question. Yes Sir Mr chairman ma'am if you you own property for 50 years yes have you have you ever as someone to leave. I had to yes okay follow up you're recognized the. Have you ever had some believe because they were not pleased with the facility now in 50 years you had everybody you satisfied all the desires of your I always that that first property 50 years ago was a 2 family house and at that time a working neighborhood in in 50 years of course neighborhoods go up and down right now it's basically a neighborhood that that 2 on the port side and some working people. You're recognized for one more follow up with more yes. So are you saying that that the. Landlords over or responsible for the downfall of the neighborhoods and and the people who live within the gangs and shootings and that landlords are responsible for that. I don't quite understand the question well you made the statement that if people are forced or have to leave because they're not pleased that the neighborhood starts a downward spiral or are you saying that landlords are to blame if someone just give up Senate leaves because they're not necessarily meet the requirements but did you also stated that the neighborhood's file downward as a result of landlords not being a good landlords not not taking care of the property Leding goal and even if the if the tenant complains of the question the question is are you blaming are you saying that the social ills and problems of communities and neighborhoods today are caused by the landlords yes or no. But that was by the gangs drugs the funding yes. The service by this larger causing. Well in a yes and no questions I couldn't say no but I can say yes because all of us language our responsibility to keep up to property that the tenants live in so the question thank you thank you question brown you're recognized for a question. Thank you Mr chair. I think we all acknowledge in this room that in this premise of my question that that Arkansas has a very our population tends to be on the. Your side. The so would you not agree that these minimum habitability standards will enable landlords to keep their rants at a rate that are poor people can afford. And still provide them with with the necessities. Yes this is a glass of water that I was speaking of we would like to work on a bottle of water eventually yes this starts this is a start. Thank you thank you represent Clowney recognized for a question thank you Mr chair thank you for your testimony today we keep talking about minimum habitability standards and it's my understanding that under an implied warranty of habitability that means there are certain standards that cannot be waived is that your reading of this bill that some standards that some things can be waived if the tenant agrees to it at the front and. Well getting back to the smoke detectors and the carbon monoxide also is it's a question of locks on doors it's a question of. Having. The envelope of the House. The. A certain standard without the ex the ex explicit things that they're talking about if the tenant comes in and you say this heat and it's in June yes you can't test that out yes to believe and then all of a sudden come December it so there's no you know it's not working you start to complain and basically after 3 months of the land there can say listen I don't like it in I can fix it right now if you don't like it you can leave thank you. Okay saying no further questions by the committee thank you for testimony thank you very much I appreciate next on the list is bill Jones to speak for the bill. If you would introduce yourself and who you're with and you can present your testimony. My name's William Jones and I with the Arkansas State landlords Association. I'm signed up to speak for this bill. Personally I'm neutral I think. I think organization shares many of Mr Smith's comments and. In the essence of time I think I'm gonna abandon my prepared statements and just state that this product was created in faithful negotiations. There were given takes there is reasonable compromise and I think it satisfies what the rest of the country expects from the state of Arkansas. Whether that's truly what we need to or not I think the court of popular opinion at this time says that that Arkansas is required to have a. An implied standard of habitability. And my my neutral stance is from some. So for flexion. This bill is. This for this bill provides. Some protection so the tenant. Not I understand not everything that the tenant rights folks wanted in there. It provides some requirements of the landlord obviously not everything that the landlord or our our organization specifically. Wanted in there but as far as a a good first step. I think this is as the analogy was put moving the football down the field it's not a first down it's not a touchdown. It's movement and I think it's movement in the right direction I commend representative Hawks roles work all negotiations that that have taken place and I would just say you like to say we are we stand with without opposition to this bill. Okay thank you for testimony any questions by the committee person Clowney recognized thank you Mister Jones you mention that this is a movement in the right direction but also that you're neutral can you say a little bit more about where you see this maybe going I mean what is the right direction what is the end point as you see it and how does this help us get there. As good as it has been stated by the 10 tribes folks I and I and I don't. I don't have any illusions that this will be amended in the future that there will be some. Some other accommodation for remedy. For a tenant some verbiage for anti retaliation which under fair housing laws that's that's illegal anyway. Previous Speaker rope made reference to personal responsibility. And having. Having recently become the father of a 16 year old I understand better today. What or someone's rights and what is the responsibility for instance my daughter has the right to live in my house. She has responsibility. In my house. And I make that analogy to compare to a tenant. Under certain circumstances under our contract will often get obligation they have the right to live in my house. They also have certain responsibilities. And as I look across Arkansas and across the country as those responsibilities are taken away and placed on me. The tenant. Actually has less incentive to live in a decent. Habitable. Dwelling. They're they're more likely to cause damage without the without the threat of punishment they're more likely to be in arrears on rent. And it's more difficult to get those folks out in response to one of the previous comments. Very rarely have I ever evicted anyone. Because of non payment of rent. If they make even a modicum of effort I I tend to work with these folks. Now when I'm lied to or they avoid me or they're tearing up my property then I'm I'm forced into action. But very rarely is it for non payment or. And many times I have to. The spirit inside me has to evict someone. In order to make repairs. And and I don't I don't want to sit here and tell horror stories but there have been cases where you can't if you don't mind we're gonna try to keep this moving along I appreciate your test with this that's fine did you have a follow present on all of these thank you Mr chair okay so I hear all of that I hear the defense of landlords I hear that you are a good landlord I also hear from a lot of tenants in my district in a right across the state who aren't as fortunate so my question I guess to you is if this is the first step you as a landlord what do you see as the next step in terms of protecting tenants and really I guess my ultimate question is we're talking a lot about rights and responsibilities so maybe I won't get us too far off topic and I'll just ask do you think that a tenant who is paying rent to a landlord for a place to live has a right to have a place that is habitable for humans to live in how has the right to that. They have a right to what they've agreed to okay thank you thank you for your response reserve Boyd you're recognized for a question. Thank you Mr chair Mr Jones I just wanted to continue my questioning about personal responsibility and cost and so since you have experience as a landlord by one ask you so this does seem to ship some personal responsibility from the tenant to the landlord and my question is is this going is this ship such a big shift that it's going to price our Kansans out of affordable housing. In my opinion I don't think it will price our Kansans out of affordable housing it will make a difference and there may be some increases in rent to accommodate for additional expenses which is just the nature of the beast they cost more to make widgets you pass along to consumers until consumers stop buying your widgets. Thank you. Thank you for the question by the committee thank you for your testimony thank you chair representative skews me Lynn foster is the next person to speak. It doesn't say if you're for or against so just introduce yourself and proceed with the testimony. Thank you so much my name is Lynn foster and. I'm retired law professor and I'm here representing the president of our Kansans herrett representing our Kansans for stronger communities a nonprofit of which I am the president and this is the fourth time I think I've appear before you this session so thank you for listening to me one more time I hope it's the last. First we would like to thank senator Dismang and representative hawks for reaching out to us and allowing us to suggest amendments to this bill some of which have been included we believe this is the first time in the history of landlord tenant law in Arkansas that tenant advocates have been invited to the table and have been listened to. 2 weeks ago I testified that I wish our nonprofit could support the bill and I urge the Senate Committee not to pass it. But due to subsequent development developments our board has decided to take a neutral position on the bill so we are neutral. We would also like to thank representative Gazaway for sponsoring our bills in 2019 and also this year. We we and and tenant advocates have been attempting to get an implied warranty of habitability enacted since 2013 and his efforts resulted for the first time in the first for the first time such a bill being voted out of the committee. As you know all other states have implied warranties of habitability. And this bill isn't that. Implied warranty of habitability has 4 parts this bill only has about 1.5 of those for. However. We believe that this bill will not actively harm tenants it will not limit the rights that tenants already have in any way. And Blake Mr Smith we believe that the change to the unlawful detainer part of the bill is a good change in the law. And so therefore. Again we'd like to thank senator Dismang and representative hawks for allowing us a seat at the table on this legislation we've heard many people say that. This is the first step and one of the reasons for neutrality is that we're agreeing that this is a first step and we expect that there will be more steps and that we will be included in the making of those steps and I'm happy to answer any questions that you may have thank you for your testimony reserve filling recognized for a question. Do you feel that this bill also testified this bill if the bill in the right direction do you feel that. I'm sorry can you say the question again I didn't catch a review revealed that you feel that this bill that the bill is going in the right direction. Yes or no. Yes it doesn't. But yes thank you representative Clowney recognized. Thank you Mr chair thank you professor foster and represent Hawks I hate that I was in here to ask you questions directly so I'm going to ask you what was one of my biggest questions about this bill and I'm a little bit worried about the definitions at the very top the things that must be included in and I see the word functioning there a functioning roof and building envelope and a functioning heating and air conditioning system I guess my question is. What if after the fact so after 10 has exercise these rights and and moved out and terminated their their lease agreement what if after the fact the landlord objects and find out that in fact they have been in compliance that the roof was functioning or the air conditioning was functioning whatever we decide that means in the in the context of this law my concern is when the tenant makes the decision to leave they. May not know for sure whether that landlord is going to be found in compliance or not after the fact is there is an area where that 10 and ends up on the hook for 2 rents at the same time if they move out and rent a new apartment. Yes that's a possibility right now with the low constructivist have in my experience working with tenants and tenants advocates. Typically by the time a tenant moves out it's it's because they really just. Cannot live there it's it's unlivable and I don't think there are a lot of instances where courts have looking back decided that yes you know a tenant actually could have stayed there thank you. Thank you any further questions by the committee saying 9 thank you for testimony the foster. The last person appears to sign up on this is represent agree. If you like to come to the table. Just introduce yourself for the record and proceed with the testimony Sir thank you representative Richard McGrew district 22 and also to be transparent I am a pretty good size landlord in hot springs I think that this is a good bill this does for may what I think that we needed to do it tax the bad landlord. It makes that bad loan nationally provide these things that some of those are not providing. We talk about the the personal responsibilities the more personal responsibilities. That you take from the tendon allowing the landlord thing that represent.is talking about it raises the price. And. And I am an advocate for. But some might say that lower level I want them to have housing and have a reportable lot of people in my housing levels of security and fixed income so keeping that rent affordable so they can forward it is important. The one the reasons I think this is a good bill is it is that it doesn't impact the call to the landlord tremendously and so I will be able to maintain those rent that the level of which they are now which is is is important may for those people I have and and so I do believe that it's a good bill because it does. Give us had Arkansas the habitability that requires the landlord to provide those things and that's all lands okay thank you for testimony representative any questions by the committee for senator. Okay saying 9 thank you and we have no one else signed up to speak for or against on this bill represent part you're recognized to close for your bill. Thank you Mr chair and performance at appreciate everybody on both sides of this issue again coming together appreciate miss foster working tirelessly on this issue for many years and I believe that it is her and her advocacy that has brought us to this point. To the questions that were raised about smoke detectors and I could say something humorous about we all know one smoke detectors go off in the middle of the night and this is going to give our tenants the ability to take care of those issues and have that responsibility to take care of those smaller issues themselves as far as what else this bill is as far as a functioning roof and building envelope that that is in the bill. What is the definition of functioning there is no current definition and is miss foster said the tenants are already. Potentially gonna be liable for for those anyway and this adds a definition for that and then. Lastly. This is being called a small glass of water has been called a step in the right direction. Fosun is outlet in I said it's one small step for man one giant leap for mankind we're going in with nothing in this is going to give us one of habitability and representive cloudy I appreciate your heart and your advocacy for people and you asked about what is the direction that this is going to go. And I have faith that you and miss foster and others the we can continue our conversation but this is going to give us a start so let's do something right today and put Arkansas give them a step forward I'm closed thank you represent Hoxie has close for his bill I believe that representative Lundstrum had indicated she would want to make a motion at this time you're recognized. I would need to pass with the motion do pass as amended on the floor that's a proper motion during discussion on this motion person Clowney recognized for discussion thank you Mr chairman thank you representative Hawks you know I think I think we have to agree to disagree that this is in fact a warranty of habitability I think that this doesn't at this doesn't go far enough to get us off of that list I think you know when I hear the concerns of my colleagues about affordable housing it. I understand those concerns but at the same time I know that 49 other states have figured out how to do this and I know that Arkansas can this place is way too high a burden on the tenant in mind and in my opinion they're only remedy is to move really ultimately and I think that that's we've got to do better by the poorest are Kansans all of that said I agree with what you just said I think that this is unquestionably a step in the right direction I think that this will help people this will not hurt people this will help people I will be a yes on this bill but I would just plead with my colleagues that we not let the conversation end here that we not consider our job done they have ability is not checked off because we have a lot of work left to do for Arkansas tenants and I think you so much and Senator Dismang for taking that first step to make that happen thanks thank you reserve Clowney represent Boyd you're recognized for discussion. Thank you Mr chair so anytime we shift personal responsibility to someone else that's going to come at a at a cost and I think that this bill does move as it was said moves the football down the field but it doesn't move it so far down the field that I'm given pause to go okay our our Kansans going to be able to find enough affordable place to to rent and so with that said I'm a be voting yes for this vote today. Thank you reserve void any other any further discussion by the committee. Saying the representative wouldn't you're recognized for discussion. Thank you Mr chairman to the Committee on representative hogs and Senator Dismang in those of spoke for the building against the bill but I think the important issue here is that we're step of the direction of the we're we up until this poor we were walking where we have never been before now we're going to go into that and it just has to be a a gradual movement because we have to what we need to be concerned about the tenants rights and I agree to the is it the same time we have a responsibility to the landowners their citizens of the State of Arkansas and you know that I have so does not have a well or not so times most of the time I have a problem with one of the tenant complaints. Most of all we should know I don't know which are good properties in which are bad properties in Arkansas the just by sight I mean you can to fill some of some of these people is support has been made this is what they can afford and some of these some of these legislations that we've had would force the cost of enquiries to the landlords of such and make the the facilities uninhabitable by those who need a remote. Who are low income. So it you know this is gold bill balance is not it may not be the best the agree with the represented folks and others this is a starting point this is where we need to start and if we don't start we can get there. So with this bill will be voting for it thank you represent what any further discussion by the committee saying none we have a proper motion of do pass as amended on Senate bill 594 all in favor say aye. Any opposed no congratulations you've passed your bill Richard parks thank you Mr chair thank committee. Senator open would you like to present Senate bill 6 of 2. Senator if you don't mind just we all know you but introduce yourself for the record and your guests can introduce themselves also and then you can proceed with your testimony thank you so much Senator Missy Irvin District 18 happy to be before you. Okay I'm I'm with the line I was born and I'm a pretty out there so I think it and I have a craniofacial anomaly myself. 3 Arkansas insurance department here for information. Thank you you may president Senator thank you members of the committee so I am pleased to be here today to present this bill Senate bill 602 I have worked very closely with miss Osborne on this legislation the issue that we're trying to address that this legislation is the difficulty in ensuring that these procedures are covered and paid for and dealt with appropriately for patients that suffer the same type of craniofacial anomalies that this 1 Dylan Osborne herself has survived and lived through and and so what you're looking at is really a process of. Prior authorization certification of ensuring that things are put in place to so that patients can get the care that they need when they can get it and when they need it and and so I really just want to turn it over we've worked with the insurance companies I want to really thank BlueCross BlueShield for working with us on this process that we put together with miss Osborne and of course the insurance department with these rand as well he's here he's worked diligently with us and it's all born to ensure that the bill reflects what she has herself gone through and then what she has witnessed other patients that deal with the same type of craniofacial of abnormalities and so she's bringing her voice and her advocacy to this issue and has a piece of legislation to really work on what she started years and years ago with the passage of the first bill dealing with craniofacial of not abnormalities so I'm gonna turn it over to her for brief comments I know you've been here a long time someone to turn it over to her so she can explain why we have this bill before you today thank you. Thank you recognized hi. I was born with cranial metathesis L. dysplasia if you saw the movie masks started here in 1985 that's pretty much a true depiction this is corny I dialed the sale mine's pretty on the top of sale very very very very similar it took my parents 6 years to find a doctor who would be the look at me because in the sixties and seventies they didn't say I don't know like they do now. Right now they feel teams as we know them today did not exist while I was growing up craniofacial teams came into existence in 1989. But I was very fortunate to have the father a craniofacial anomalies as well as the father reconstructive surgery AS one of my doctors when I was in high school and early college and the doctor that I have now in Dallas Texas Dr Jeffrey fear on trained under Dr fear Tennessee I when he was come to United States that being said I would like to explain that craniofacial anomalies it's not just what I have what I have there is less than 3 just a little over 3000 in the world in my doctor in Dallas has seat has 6 of us in his care I'm the oldest but to find a doctor in the world was 6 patients with my diagnoses that's unheard of. The most common is classless and pallet and I'm sure all of you in this room had seen or heard of or know someone personally that deals with that but there are thousands and thousands and thousands of different diagnoses of craniofacial anomalies including I'm diagnosed multiple diagnoses and just. It is not not not so that the conditions are named after the doctor who discovered them so that being said. I will be 55 later this week and I have had multiple surgeries that I want you to know that a lot of my kiddos anybody with the craniofacial anomaly I consider my kid whether I've met them or not and and even if they're older than me but a lot of my kiddos they go in for surgery some of them to 3 years old has already had 20 plus surgeries double digit surgeries so these procedures are very complicated and there are there any that the conditions themselves are very complicated so when you take one step forward you're often taking 5 steps backwards you fix this one area that needs to be fixed but then it also messes up other areas that weren't messed up our it is very very confusing so you have to go to people who have specialization a craniofacial anomalies there are 5000 plus our Kansans living with some type of the craniofacial anomaly not with what I have but some type of the craniofacial anomaly so it's very important that we are able to go to those who specialize. Incredible that someone knowledge across the country there are 200 craniofacial teens accredited craniofacial teams in the country and. Not all pretty official teams treat all craniofacial anomalies and so I people need to be able to have a good report with their doctors they need to feel comfortable leaving their child or themselves in the care of that doctor so that is why it is important to allow people to go out of state so that they can have a choice in the doctor's thank you is this what you all if you say you want your PCP and that's all you got to go see a cardiologists when you get to choose what cardiologists one here in Arkansas there's only one team and it's at Arkansas children's hospital and on doctor people human beings should be able to go to whoever they want as their medical doctor as so I that's why we need to do that and supplies I am now I'm an adult obviously and I just told you that the doctor I have The Dallas has 6 of my conditions I doubt very seriously you're gonna find another craniofacial surgeon who has 6 of my conditions in his care. And then and then can we're gonna let these rands go through the bill okay thank you and then after that what we do have some questions on that we go ahead and do your presentation thank you both for and with the insurance department is going to go to your this bill for your information the the biggest part starts on page 3 and it's essentially giving for it's divided into 2 parts one part is for health care healthcare services are performed by the actual team members themselves the insurance companies only have 2 working days to review and approve the actual procedure for non urgent case they've got 2004 hours to do so for urgent cases the goal there is to try to speed up claims payment so people can get their claims paid. The other the other section and on page 3 refers to services that are that are requested to be performed from outside the teams themselves they were giving the team themselves 2 working days from the request for non urgent case to review the review the procedures or service for approval for for a non urgent case for an urgent case 2004 hours you might ask why is that so fast well in the normal insurance marketplace an out in the real insurance marketplace the insurance companies under prior authorization we have 2 working days to this as well so we're not making the craniofacial teams do anything faster than what the national insurance companies do it prior authorization December 1 senator Irvine's prior authorization act the other the other the other the other sections have to deal with providing here and I care and vision care they're needed for people with craniofacial abnormalities miss Austin didn't talk too much about that we've had quite a lot of insurance issues with people who have had issues getting hearing aids and humidifiers and other surgically implanted bone bone services for the craniofacial abnormality in the other last part of the bill is on page 4 miss Austin referred to allowing people to go outside the state 2 other teams that we have a we really only have one adult team here in Arkansas well we don't even have an adult team in Arkansas so we want to make sure insurance companies cover craniofacial abnormality team coverages outside the state so that's basically what this bill does not answer the question thank you Mr L. be glad to answer any questions thank you we do have a few questions under pressure Boyd you are recognized for a question. Thank you Mr chair Senator Irvin I just will before I say anything I want to disclose to the committee that my wife is an audiologist and dispenses hearing aids as part of her practice of the force anything I just want to make note of that no to that so Senator Irvin I guess the only question I have at this moment is is there enough stability in the the medical aspect the medical procedures where it makes sense for this body to govern if you will where we only meet every other year as opposed to just making a little little looser and send the insurance commission should you know be able to write rules and adapt quicker so that's thank you 9 and will work closely with with these random the of and the insurance department as we go forward on rules but I think we work through this issue and all kind of came to the agreement with these changes were needed to the law itself so and it's based on like you referenced the privatization bill and work that I've done so that's why you have me here for you because I'm familiar with this world as you will note so we just wanted to make that consistent thank you for the question. Thank you your reserve Alan you're recognized for a question. Thank you Mr chairman our office got to main you know. 9 yes ma'am wait the line with the W. okay well thank you for coming and and thank you for sharing your story today and I agree that. We need to have options outside of the State of Arkansas for example have been traveling outside of the State of Arkansas now for almost 9 years of my treatment and so I think it's important that patients have options especially with the needs can be met would you agree. I do thank you okay. Thank you represent Clowney I believe your next for a question. Thank you Mr chair so this is thank you first of all in thank you so much for your testimony today and for coming here this is outside of what I know much about so just and is there any opposition to this bill. So there are some facts I have reached out and had I'm more concerned with the terminology of healthcare provider or medical provider however in checking with Blue Cross blue shield they view those as the same so they'll be covered under the health care and medical care provider definition and if we do have in state folks and we we there is no intention to try to do anything oppose it obviously people that are providing care right now or trying to treat their patients so working with them with language I think I think really we can cover its covered under the current amended bill thank you can I say something you're you're recognized. Craniofacial teens were put into existence to protect the patients and what the reason that most of you in here know that the worst part of any surgery is anesthesia and so since we have to have so many multiples procedures throughout our lifetime the craniofacial teens are put together so that they can when they do put a child or a person adult anybody under that multiple surgeries are done during that one anesthesia what different multiple craniofacial specialist and they are also required to meet on a regular basis each team can set up their regularity however they're gonna need and they go all other each patient's our chart so everybody on that team is on the same page with that patient therefore everything begins with the craniofacial team and it ends with the craniofacial team so when they do need to bring out people who are not craniofacial subspecialties because there are a lot of areas out there that do not have a craniofacial subspecialty been they have and oversight over that and know that their patient is being taken care of. Thank you resent wooden you're recognized for a question. I have a motion at the appropriate time Mister chairman. Thank you for that we will take that at the appropriate time reserve Ferguson you're recognized for a question. Yes and this might be a question for base I know we passed the laws several sessions ago that covered craniofacial of. This debate required payment for craniofacial of surgeries and things. And I know it dentistry C. cleaner cranny of the substances that has a lot of dental ramifications is dentistry covered under this bill yes we think it is under medical provider and again echoed Senator Irvin we do have rule making authority at the insurance department for craniofacial abnormalities if it's unclear I'll be glad to do a rule on that to make sure that these other careers or these other these other medical specialists are covered but we've talked across blue shield and they view the term medical provider to include dentist as well may I ask a follow up you're recognized and in in the bill that we passed before our Medicaid in Arkansas Works included work says but Medicaid is not it's not of what about I guess we have no control over resupply and self insured plan say there is not fortunately okay so this bill is just really to assure that some of these things that were unclear in the original legislation that we required coverage for covered is it what is the insurance market yes okay thank you. Thank you any further questions by the committee. Senator Ferguson I worked with you that in the 2013 session on that and the thing in the actual law itself the original law is still in place so anything that the craniofacial state surgical team member states is needed is covered. And that includes in my original law it says including vision and dental and and etcetera etcetera. Thank you thank you for that clarification represent wooden you're recognized. Mr make a motion of a do pass okay we have a motion do pass that is not appropriate motion committee members is there any discussion on this motion. Okay saying none all in favor of motion do pass say aye. Any opposed no congratulations your bill is passed. Thank you thank you members of the committee we appreciate it and I just also want to say I've gained so much respect for miss Osborne her bravery her courage and her advocacy is really undeniable and it's been a process. And I love you so. Thank you thank you for your testimony. The Bill. So we. Committee members we need just a moment to. Just give us a moment please. Representa Maddox yes all right I forgot to mention that we had Dr Medha that came to speak for the bill that you already passed it so but I just wanted you to know that he is here can you just stay in same for the record just for seconds absolutely this is James from children's hospital yes yes come up and just introduce yourself for the record if you want state that you were in support of this bill I am in a segment that I am the queen of Max official director at Arkansas children's hospital and you know we've been working to expand. Process for patients so all the work that Wendelin Senator Irvin and booze and everyone I've been doing we just truly truly appreciate because we want to build within the state we have the resources to do that and to develop those resources we need finances realistically and so this helps us to help patients like Wonderland and other individuals that are out there that really really need our help and I care it's my passion and as I've spoken when I do it more for my passion than for anything else I'm a train crossing surgeon who could probably be doing cosmetic surgery but ultimately I've put a lot of effort into these kids in these families these adults over the years and hopefully help I'll be doing that for many years to come so thank you for passing a bill I appreciate your guys time and hope they can do to work Senator Irvin and booth and stuff to figure out how we can expands the services within Arkansas. Thank you thank you for being here we appreciate you okay representive Lundstrum would you like to come I'm going to present a bill and I believe you would be next to take over the chair. Confidence. Representative Maddox you're recognized to run thank you this B. for 89 thank you madam chair colleagues this is Senate bill 49 I mean I probably remember early on in the session we passed out of here was house bill 1662 which is the utility rate review act that was 1 that I thought was gonna be simple and it was in the end but we heard a lot of discussion about it so that became Act 489. So now there are some amendments and that's what this is so they're all agreed upon by all of the interested stakeholders it's my understanding there are no further issues but I know you've all probably looked at it so if you have any questions regarding basically this clean up amendment I'll be glad to to take those questions at this time. Members any questions representative voice. Thank you madam chair I just wanted to clarify I understood you to say that became ACT 489 was this that really I think I said that wrong okay yeah yes what. So is ACT 404 and thank you for pointing that out I appreciate you. Any other questions. Or any other questions any other from any other members. Thank you Committee and I make a motion to pass okay do we have anybody to speak for or against. I signed up for against. Okay. Mr Bethel would you make any comments I have I'm John Bethel director public affairs for under the Arkansas I don't have anything else to add I was here to help representative Maddox with any questions okay thank you. All right what is the will of the body. We have a motion to pass from representative Maddox any discussion. Seeing no discussion all in favor say aye opposed. Congratulations representative Maddox a bill is passed thank you Committee right and seeing no other business in front of the committee representative Maddox is there any other businesses all right saying no other business I believe we are adjourned. You might want to.