Insurance & Commerce - Senate

Bills scheduled for Thursday. And then for for the following Tuesday of Thursday gets long we might do some adjustments there since that's a. There's a potential long bill in that committee has farce discussion we'll see how it plays out today and Thursday do we have anything. For anybody here all right you have quite a few handouts on several of the bills you should have received an email from me yesterday Mahler reference there's a hard copy in your packet and I'm gonna invite vice chairman Teague to the chair to the gavel and I'll go to the end of the table. Follows in favor of adjourning say aye. I'm. John this is for. Hang on just a minute by said Linnea. Senator Pitsch you're recognized for twelve thirty eight. Thank you Mr chairman members in front of you I would reference to things before we really get started we're gonna this is the omnibus bill house bill twelve thirty eight I sent out on one email before bills that have come to us from the insurance department and I would like you to understand that I want to respect your time I also want to respect the process we will present the bills but hopefully you've had time to see why they're there what has changed and the summary so house bill twelve thirty eight basically are on this bill I would reference the fact also that with an omnibus bill the state agency tries to not have anything that might have opponents to it you've got sections one through eight almost not quite a few sections modified if you look at the handout sections I believe there's something in almost every section twelve thirteen fourteen fifteen sixteen section seventeen through twenty one twenty two twenty three twenty four it was the baited I want to thank chairman Lowery here from the houses he presented it down there and offered his time to come down here you want introduce yourself Mister chairman if it's allowable I'd like to introduce someone to help with the presentation introduce yourself and all recognized thank you Mr chair I'm generator on the general counsel with the Arkansas insurance department. So Mister chairman I E. I can sit here and read this I believe it's don't have the exact number but this long bill if you will or I can run through each of the sections and reference that it is I want to respect the members time that's what I would recommend but I have to members want to go into more detail they can always ask well maybe that would be something that would be appropriate if I ask what their preferences I see Section. Well it's a police. Okay. We can run through real quickly in the handout if you can bring that in front of you I'm basically going to present that in that form sections one through eight basically the sections proposed to clean up some very old language in the code to conform with the modern practice found in most government bonding programs your place the word charity with fidelity you have the words any fraudulent or dishonest Act your place the words were needed public employer officials with participating government entity subtitle PGP throughout the code you'll see other things there within sections one through eight. section nine is a section that repeals part of the Arkansas Code which sets the charges for faxing misleads faxes we knew in the day microfiche electronic documents this is not a statue with which the insurance department currently has any method of complying so it needs updated it is antiquated those you'll see the words changing section ten modernize the code and permit electronic fund transfer method of payment claim sectional eleven outlines procedures for the licensing and regulation of captive insurance companies and states that it applies to captive insurance companies as defined in code again section twelve I'm not sure hopefully each of you have this for twenty four hours as I had that benefit if there's questions to that first page maybe will stop there and see if there's any questions and then we go to the second page any questions at. Continue on moving on section thirteen this amendment to the code makes it clear that all filings correspondence or any submission made by captive insurer is confidential there are reasons for that there is no public interest in a captive insurer section fourteen Arkansas passed the corporate governance annual disclosure act in the general session last because the B. the twenty nineteen because requirement of an annual disclosure in compliance with the act may be burdensome for smaller domestic companies this amendment limits the application of the act a single state domestic companies I think that's matching what other folks do around the country section fifteen this section adds accident health coverage the lines of insurance that surplus line insurance for insurers cannot write our rule twenty four regarding the regulation of surplus lines carriers is applicables only to property casualty marine insured E. business our statute is currently not clear as written although we do not license surplus lines carriers for accident and health this amendment to the Arkansas Code brings a law into conformity with the rule and current practices in the in the state section sixteen this amendment Arkansas Code removes requirement that an agreement or plan of merger may be filed with circuit Clerk section seventeen and twenty to twenty one these five sections that the applicability of the fraudulent insurance acts prevention statutes to the following entities which are not currently subject to those provisions and you'll find those in section seventeen eighteen nineteen twenty section twenty there should be a zero there behind that fourth bullet and section twenty one those entities section twenty two of this amendment seeks to repeal part of the code HMO those were brought into the state guarantee Fund in twenty nineteen so you no longer need. Need this part of the code section twenty three this amendment two Arkansas Code modernizes the method of settling claims by an insurer under the model actual regulation of life and health and credit disability insurance permitting the use of electronic transfer of funds and section twenty four last but not least this amendment to the code will permit any type of business organization organization to use for a multi employer welfare association identified as M. E. W. A. the current statute only permits not for profits this corrects an oversight from twenty nineteen legislation again I think you'll find most of those adjustments were agreed upon should not cause conflict with most again I'm open for questions. The questions Senator Elliot. Thank you Mr chair I'm looking at section sixteen where are it was changed from this seems to me basically change from a shall to may. It in the original language that said it shall be filed for the record in the office of the Clerk of the county of at the account. The county court or the county no so why did we make that change hi but you want to go to try and answer thank you. that's not something that the insurance department has practice in years it's just to this digital piece of language in the statute there there were filed with circuit court's or clerks why didn't day. That's a long before my time I apologize for not knowing that historical fact but it's I don't think the Clerk to know what to do with the work filed with them. What what are you saying there would be no value and having it filed with the clerks is is that the case I think if someone wanted to get it to get it from our department rather than having to go to the courthouse so there would be no no added value having it fall the court at the circuit clerk's office so would somebody who needed it routinely know they can come to you and get it from you I thank you yes ma'am and even folks of it we're a state agency to the extent that this is not a confidential which you wouldn't be we're subject to the freedom of information act yeah so but yes those those who need that to get from either I want just want to be sure that we are not striking of of you know a law something because we had been doing it that's a good enough reason to do it that's all and for whatever reason it was there they can if they can still be actualized on. You can tell me people know where to come to get the information yes ma'am. And I have one other question Mister chair on section fourteen I just need you to run through fourteen again because I didn't quite pick up what you were saying there so just tell it to me again basically Arkansas passed the corporate governance annual disclosure act it's on your sheet there yeah twenty nineteen General Assembly because the requirement of an annual disclosure in compliance with the act is burdensome for some companies Arkansas smaller domestic companies this amendment to the Arkansas Code limits the application of the act of those that are single state domestic companies okay so that's what I was trying to figure out burdensome is the reason that we are making this change and and could you just tell me I I I can't just sit here and visualize what burdensome is to the extent that we shouldn't do something for just kind of help me out with a little bit. A single state domestic company is one that's all only domesticated in Arkansas. For example is only it's it's in Arkansas it would have to file only with us if it were a state the board try to do is eliminate that the need for a company perhaps a small it is domesticated here from home to follow all states okay we are the primary would still file here yes okay all right thank you. Anybody else. You by no audience will speak for against you have one in so you can write in. Right. On the requirements nonresident injectors Hold on the next section of the bill fifty. Very nice. You're on to the next one yeah. Five so we're. All right any other questions you by for against I have a motion to pass I have a motion to pass in the second. Second from senator Elliots motion from Senator Ingram. education on the motions all those in favor I. Opposed you guys have. All right that's going to take us to the house bill twelve forty one Senator Pitsch of I think twelve thirty nine would be next if it's all over the nine oh yeah yes okay that okay that's perfect all right this you're recognized quite. We have we have an amendment yes we do that's what I have a motion to put members I have a motion from Senator Hickey in the second. Senator Pitsch basically the amendment is but me as the sponsor all those in favor I. Those guys have it now you're recognized to is amended thank you Mr chairman H. B. twelve thirty nine again I'm reading from my notes on page two the agent adjuster licensing bill you see how the House deal with that on their end reading on page three this bill as an amendment to the code this bill seeks to clarify the requirements to maintain a nonresident insurance producer adjuster consultant license in Arkansas insurance producers adjusters and consultants are required to have a license in their home state to obtain a nonresident license in Arkansas this amendment makes clear that if the licensee no longer has an active license in their home state they're Arkansas nonresidents license can also be made inactive without notice or hearing unless one is requested this bill also seeks a correction to Arkansas Code you see the reference code this bill or moving exemption for licensed adjusters from educational requirements required before they may take the Arkansas insurance adjuster exam and obtain their adjuster license adjuster applicant shall complete specific courses of study in the field of insurance as the commissioner shall prescribe for the license basically if you're licensed in another state this entity and you have nonresident status here and you were to lose your home state your nonresident based upon that is no longer valid because you've lost the home state. chairman that's the question Senator Ingram. All right of course. Verifying the Bill. Somebody. How we. We are a step participating states all states do participated in a state based system that's set up through the national association of insurance commissioners we get a feed from them daily and it will show if I'm license in Oklahoma and I go inactive that's put out there for all other states to fund generator is in active in Oklahoma. The reciprocity Arkansas gives Oklahoma then disappears because they've lost their standing it's important to note that and trying to keep this brief but no. Bad conduct would slip through that this is truly ministerial if didn't pay your exam you didn't get your continued education you didn't even pay your fees etcetera if someone has has taken it is been accused of and and the adverse action came because of bad conduct there's another system we we can take action here on that as well this does not capture those type of agents and producers. Senator Hickey you're recognized for. Yes Sir and this was an existing line I've read this this morning it just kind of popped out of me Page two. Plans to to route for. Is that written correctly because it the Insurance commissioner may suspend up thirty six months may revoke or refuse to continue our right place a probationary status any license issued by him or her. Does the current insurance commissioner. Are they the ones that is efficient issued all the lessons are one of a previous one it issued the lessons. The way this is written it almost alludes that only that person could do it I always think when I see that kind of language in the statute or rule I think of the office itself and a person happens to occupied with the office continues the authority stays with the office and that's exactly what I'd written up it almost is like it may issue the department issued by the department right right anyway I just want to. Now it is just the. A little odd to me yes. He does center Hickey any other questions. Senator Pitsch your closer close for the bill motion the vitality amend or against. I have a motion from Senator Pitsch do pass as amended as amended. But you're stuck at I have a second. I have a second for Senator Elliot. A discussion all those in favor I. Oppose the ayes have it maybe just one vote but still one with the Where are you now believe well forty one twelve forty one if that's acceptable Mr chairman. The. You're recognized Sir all right I believe I'm already on this bill except my copy doesn't show in my on this bill. Okay. house bill twelve forty one state tax intercept bill again you can see what the house is vote what they did with it house bill twelve forty one this state tax intercept bill seeks to add the Arkansas insurance department and the governmental bonding board to the statutory definition of claimant agencies the list in the statute exclusive and after July of two thousand three no agency was to be added to the list unless it was an annual outstanding debt of two hundred thousand dollars satisfying this requirement can be verified by a I. D. financial status the tax intercept program requires due process to the individual in its current status and this serves as a safeguard to prevent agencies from aronie Asli capturing someone's tax refund under the gavel governing statute debt is defined and you turn the page you'll see any liquidated some that is due and owing any claimant agency which is accrued through contract subrogation torque operation of law legal proceeding or any other legal theory regardless of whether there is an outstanding judgment for that some a debtor you see the definition there basically this there's a bill in the system right now and we chose not to wait on that which is claims several other agencies or seeking the the claimant agency title we need that in the insurance department because we have that kind of a day of a need to be able to function because of the death. Senate is my you're recognized for a question. the Bill offer. So. I'm trying to understand. It means so far we trying to collect on an LLC and if so they don't have withholding like it how is this tied back to this only applies to individuals that does not apply to organizations. And these would be somewhat with those individuals pay that would've been running through. An entity this is that primarily the the amount of money that's owed interest partners through the government bonding board and that's where a city or local or state entity that's covered under that program has had an employee commit fraud or steal from it. Most of them the the vast majority go through the criminal justice system they wind up with the in a conviction. I'll yeah in order for restitution of court might set that at a hundred dollars a month on a you know three hundred thousand dollar or higher amounts this would just give um are department one more tools to go after some more money of the sites which order the restitution in an amount that would think typically those individuals are going to so would on multiple levels to multiple entities probably some other things that are in this list how does it set you all as far as the priorities of to get true prepaid and and have. Through the limits I I don't know that any other entities would be in front of us in terms of the tax refund intercept that's possible but I don't know that all into the for instance the IRS my right that's what it yet but the IRS is not always implicated in these cases and right now this list of claiming agencies is not all in all inclusive all state agencies so there's a good chance we would be the first in line for state tax refund intercept. I mean I just I don't know that I have a problem with that I don't have success for you're going to be because tax refunds or fake and to some degree anyway I mean you you create those bank creasing with whole or decreasing with holdings if I realize that I'm in a situation that you're going to take it regardless many going to decrease with holdings in the net difference is nothing and so I know I'm not sure five. Yeah I'm not been thinking pose but I'm not sure that were publishing much Senator Pitsch we have some that. Shall. I failed in my opening to reference also that a department of finance and administration gave us Senate legislative impact it's a green sheet in your folders and it gives the fiscal impact there is no impact. That's I believe that to their analysis yes yes. Okay Senator Ingram you're recognized. Of what is a I know it's in the existing but what is the magic number of two hundred thousand what what two hundred thousand. I think that's that's the number they put into statute back in two thousand three I I suppose to keep every agency that just has a small amount from going into this process it's this is actually something that's administered by former finance administration claiming agencies have to give notice give due process to the individual that they want to accomplish this with and certify that name or their list of names to the if made by December first of each calendar year the loaded up and catch future tax returns. Thank. Good. Senator Hickey you're recognized. Just a couple things one was placed on was in this magazine it shouldn't just individuals is that correct yes explain to me then on the entity should not be added. Are we where we call an entity or we send us an individual line thirty four or one of my missing I think I can answer this I'm looking at it. Department of insurance is an entity see these claimant of agencies out to be a claim an agency can be a different state agency so the entity is a claim an agency and that would be the insurance department. One more for about an individual one other thing if the if of. If the court is issue doesn't happen judgment and some type of lean or someone can take attach a garnishment and I don't even know how they would attach it to a tax refund. Is that a party lean over and above this language put you all in a party position. we are gaining nothing though no advantage in this other than being able to file that in terms of priorities I don't think we would have priority over over another the court order. Get online intake Courtois class we realize we first come first served. Important a comment was made that there's zero financial impact from this I think I can explain why although I do agree this is not going to clear the debts to the government by pro program that there's not these individuals some residents jail we wouldn't go after them they don't have any income but this money is not money that's appropriated and so they will have zero the the money that the government funding for. Controls is a fun that these government entities VOL claims on when they've had a theft or fraud and so I think I will call off the books because it's it's broad daylight these are public notice of board meetings but I wouldn't expect this to have a times but the difference on the state budget their own and I'm not asking about that okay I'm I'm not and I can see where it wouldn't have an impact because if refunds. Do you're just trying to test the but and I have on the premise I have no or on the face of it I don't have any any issues with it and welcome you doing it the only thing is is I would like to four was running the Senate you know if it if it passes out here that you all make sure and let us know that I wouldn't want this to put you all in a priority lien position or superior lien position something that's already taken place so that's just one question that I'd like because I heard what you said you said you didn't think you would but I would like to make sure there's no language in this statute that would do that there's nothing that says an act claiming agency above anyone else by statute so I think I'm safe my assumption that it would not grant yes I just did what we'll find out I just didn't know if the statute itself my supersede some so that's where I'm at thank you. Thank you senator icky senator Ervin senator Devine. Thank you and. So actually I filed a a I mean at. Why wouldn't we want all agencies to be climate agencies. There there is a bill that I forget I found was that her bill that we are looking at because we weren't real sure because I don't think that bill is started to move yet right had this is part of the package right and we want to you know we're kind of taking care of ourselves because right to their the insurance department sure so I don't know that I have any problem with your bill I just wanna make sure this department has that ability to get in line with government board sure I'd and I I just right and I just didn't know if there was a value to a listing them out or not or okay. Thank you. Senate is buying. Yeah this is really a question on I would because there's you know there's twenty other. Entities above that nineteen about this one I just don't understand how it works when there may be claimed for multiple entities. And then back to the you know what takes priority over what if we can have that may be ready to answer presentation Ford be fine and my second question I don't know what we're talking about about the other bill. You know that the reference where was what was going on and who else is going to be included in this. I just I'm not opposed no think it really matters I just not sure if I understand how it's all going to play itself out once everybody starts adding cells we actually talked about this yesterday. And just hadn't seen that bill moving yet and decided to continue this with the package so. I got all our questions. Anybody in the audience was big for against. You I have a motion motion do pass a vote Senator patriot motion to pass a second second senator Hammer. The discussion on the motion all those in favor I aye opposed the ayes have it. Richey you done no I think we got one more Mr good. For about their though hang with this house bill twelve forty two that would be the one I believe we're good there on that bill already so that's been amended house bill twelve forty two again back to your old GGT mail mandate that out to you long term care insurers reporting requirement you can see the vote on the house and what they did with this bill this bill would require all long term care insurers reporting business in Arkansas to file market conduct annual statements commonly referred to as M. C. A. M. C. A. S. that's hard for me to say reporting all states require insurers reporting fifty thousand dollars or more in annual gross premiums within certain lines of business to file market conduct annual statements however because long term care insurance is crucially important to a vulnerable population all states key but Arkansas have eliminated the premium threshold for long term care insurers and require all long term care insurance companies reporting any level of premium collection written within the applicables state to file an M. C. A. S. Arkansas is the only state that does not require a long term insurers reporting less than fifty thousand dollars or more in annual gross premiums to file a said MCA else this bill fixes that. Are there questions what what people are looking. Long term care premiums are going up is that is that the the consensus or date R. State escalating rapidly that's part of why we want to keep a better eye on that market yes this this bill would impact about twenty five to thirty companies that currently while they don't have a lot of annual premiums would still like to have a window in and check the market conduct reports thank you any questions. The mind out its owner. Speak for against or asking questions. I have a motion for somebody in the past second from Senator Hammer. He will speak for against a motion. All those in favor I. Oppose ayes have it Senator Pete you pass for crazy little bills but she got out of my I think Mr chairman thank you for your compliment but I want to thank the insurance department they've done a lot of work in the back ready so Mr commissioner we're always glad to have you here thanks for coming. You're coming back up. Thank you to vice chairman Teague presiding appreciated. Senator Irvin you're recognized house bill twelve twenty six thank you thank I want to thank my representative Cindy Crawford he's here at and the committee room at she did a lot of work on this bill and so thank you and happy to present this bill on her behalf what this bill does and she also works with the insurance departments that Director of funeral services division Robert acres what this bill as allowing is for a perpetual care a licensee to tap some of the principal in the trust for the infrastructure repairs and capital improvements that are needed but it puts some restrictions there so that they can't draw that down completely So the current the law requires that the principle of the permanent maintenance fund shall be preserved and means that a license for perpetual care cemetery organization cannot utilize any of the principal balance and the transfer anything they could only withdraw accrued interest income from the trust to pay for the regular on going maintenance and any type of capital improvement projects that are needed so with declining investment income as you can see that this is become a problem and so the these organizations that want to be able to tap into that principal to pay for those large infrastructure repairs capital improvement projects such as road repairs drainage issues mausoleum repairs and currently they're having a difficult time generating that just or paying for those types of things just off of the accrued interest so and there are some restrictions that there's no more than one time every ten years can I make a withdrawal from that and it has to have prior approval from the board and and. Really that says what the bill does And that allows for rules and regulations I had to be created and administered by the Arkansas state board of embalmers funeral directors cemeteries and your your burial service. Okay hi I have several questions let's start with senator Hammer saw your hand first and then we'll go Senator Ingram and senator Elliots. Thank you Mr. On the infrastructure does that exclude like damage to cemetery stones when maybe vandalism has occurred and they want to fix it especially if they have historical value. Please identify yourself for the record and you may proceed thank you Sir I am Robert acres I am the director of the funeral services division in the prepaid funeral benefits division with the Arkansas Insurance Department nineteen answer senator Hammer question I think it's going to be durable type of items as Senator Irvin already pointed out road repair drainage repair mausoleum repair it's not going to be used for temporal or periodic mowing of the grass or maybe repairing. damage to headstones or ground level stones either because of vandalism or because the the zero turn radius mowers ran over the corner and ship the corner office that would still be on the funeral home. if I might put in the context here. In the state of Arkansas. They're probably forty three hundred or more cemetery statewide but the vast majority of the cemeteries are privately owned there either family on church owned county owned municipally owned they do not fall under the regulations of this particular code in the state of Arkansas we have one hundred and four potential care license cemeteries and. Even among the eight districts that are represented by this committee roughly twenty seven to thirty of those perpetual care cemeteries reside within your eight districts. as Senator Irvin pointed out report it pointed out Maybe forty years ago. You can get favorable rates of return you can get a percent ten percent twelve percent on your money a cemetery operating company might be able to take the accrued interest income and to do repairs and maintenance and things of that nature pretty much interest rates a flat lined over last couple of decades we've had instances where cemetery operating companies may earn fourteen fifteen thousand dollars in a given year upon their trust and once the bank turns around and takes seven thousand or eight thousand of it for the privilege of having it in a trust being administered by the bank it leaves them with nothing to do substantial repairs also Senator Irvin pointed out. the program will be. Created by rule by the board administrated by the board what we do not want to happen is and we've got a few as a matter of fact not necessarily in your district in district eight but in district nine next door to you we have some very high profile cases they get a lot of negative press because the money's just not there to poor place road to repair roads put in drainage and do anything and we get a ton of consumer complaints to the department and you may also get complaints in your in your district for things like that. Come essentially one time a decade. The board is leaning towards fifteen to twenty percent of the principal amount as again the Senator Irvin pointed out just a minute ago Arkansas code annotated twenty seventeen ten thirteen a permit maidens Fund generally item eighty one B.. Our states that the principle of the permanent maintenance fund shall be preserved and again it's similar to the analogy I use is you go to the bank and your bank account and you senator put my money in this thing you put money in the account month after month year after year and then you decide one day you want to renovate your bathroom or you want to go on a cruise and you go to the bank say like to take some money out make a will that's nice but you can't touch the principal but if you're in any interest on your your money you can use that and we have some of the some of our cemetery organizations in the state of Arkansas who just are not generating enough interest income on the trust to repair the road put in drainage repair Mosley Ms do things like buy durable equipment they or their backup breaks down and you can't do openings and closings and so those are the types of items that would be focused on by the board not taking money out we don't want we don't want the cemetery owners and operators to just indiscriminately say Hey I can take twenty percent of my and my principal and take it without any proof anything's been done essentially it's going to be presenting a case to the board I need to repair the roads the board says find get a couple bids a third party vendor says I'll do it for that price once the repairs have been made to the infrastructure it would be verified by the Department and upon verification in the board could disperse the funds out of the trust principal directly to the vendor who did the work in the money would not touch the cemetery pocket okay. Senator Hammer follow up yes sure one of. So on page three work comes to the temporary language it's establishes that the rules have to be made by January first twenty twenty two I'm thinkin representative. Well anyway and then it drops down their line thirty six that kind of if the board or if the rules are not passed. The board shall file the proposed rule who's to board referenced on line thirty six. The current board that has regulatory oversight over the perpetual care cemeteries in Arkansas is the Arkansas state board of embalmers funeral directors cemeteries and burial services they were created under ACT seven eighty eight of two thousand seventeen they replaced the former board which is a cemetery Board that was abolished under that same act that that war was originally put into place under twenty seventeen ten oh six so the Arkansas state board of embalmers funeral directors cemeteries and burial services has regulatory oversight over three segments of funeral services regulation in the state of Arkansas embalmers and funeral directors which includes the people who were individually licensed. The funeral homes Fortner mortuary services by the transport services and crematoriums as well as burial associations and perpetual care cemeteries okay let me okay Senator Irvin no go ahead Senator Irvin. It seems like we're required him to do it in twenty seven through thirty line thirty two but then we turn around and say if you don't do what we're required to do then you're going to file it with Legislative Council which what's the rationale the reasoning behind. Those those two things. If they're not gonna do it online twenty seven through thirty two I would think they would do it on lines thirty three through thirty six other than they got comes before Legislative Council explain why they didn't do it when on collocation thing was added after the fact this wasn't part of anything. To my knowledge was submitted on the thank you Mr. Your answer to that question I guess if I might be a good thing we're already in works of. Reading the rules in the guidelines for the program we have every intention of making sure that it is in place by the deadline as specified under section four on page three thank you Senator Ingram. Questions questions got answered Senator Elliot. Mine too are there any other questions of the committee. Thirty one in the audience would like to speak for or against the bill. Seeing none are there any last questions for the sponsor. Sirvan closed yes I do want to thank Mr Akers with the insurance department and his expertise and knowledge of the US I you know it's just an area of state government honestly there's so many areas of state government where we tend to overlook sometimes and this is an area that's very important obviously to loved ones and where their loved ones are laying to rest and so thank you for that all right. I believe the sponsor Senator Irvin you're closed. She has a motion to pass to have a second. I see Senator Hammer for the second. All in favor of passing house bill twelve twenty six police say aye same sign opposed your pastor bill Senator Irvin. Watson to house bill eleven fifty six and I believe Senator Dismang you have been asked to try and present their for Senator Rapert today. Regulations. Thank you Mr chairman of members I'm gonna go ahead and present this bill even though state agencies did meet last week on Thursday like we did And so they're behind on their schedule Senator Rapert wasn't able to attend today yes. Can we get that as a matter of record today well that's reason I stated for the video we are the first of many right here there is a amendment that it looks to me like all this is at an emergency clause is we need to adopt the amendment for Senator Rapert you cannot be here today I have a motion by Senator Ingram to accept the amendment. Secondus Senator Irvin all in favor of the of accepting the amendment police say aye. Same side of the proposed amendment is passed. All right members thank you for that it's my understanding that this bill just moves the funding from Adam to the nine one one board and I guess that's a reflection of. Transformation on the yes transformation. If if if you like some definition they tried to explain it to me too but I think you got a right it's putting a major change so need to cover that it's kind of a catch all to that. You have any questions of the committee. Go ahead Senator L. it will do our best Senator Rapert is in the room okay so it's been transferred because of transformation is that is it because they just accrued a bunch of money or and that's to be transferred someplace you know I see what is being transferred to I think it's a different agency and I look explain but I think it's different agency. Duties. Yeah because I guess the bottom line of what I'm asking is out with its transformation or not we can transfer this money you know to the rule enhancement fund without there being any negative impact on that that's what I'm asking. Hi at ten eleven on the chief of staff for the division of emergency management thank you yes this is just a simple trying to get all of the nine one one funding under well under the nine one one board so it's already there money is a seven other that there's two different things. So the nine one one board I is actually handling the money that came from the public safety trust that was passed last year I believe the nine one one rule enhancement Adam is actually been utilizing that fund for several years it's actually a derivative of the high cost fund that comes to Adam and it goes to a two million dollars of it actually goes to our county support by one one purposes okay and it also supports the smart and I won one and smart repair program that's in its in the entire state so in order to align all of the nine one one programs we felt it appropriate to put all of that into the board so that that could be looked at with the board and all the others of your responsibilities that go along with that okay so it's a consolidation yes yes all right thank you okay Needham Senator Irvin for question. I think somebody's gonna yeah sure if they'll shut off you'll be good. Sorry I'm maybe somebody outside. I was really all right here we go right now thank you can you M. as Senate can you describe the make up of this board and are they appointed is this who is who makes up the board because I just want to make sure that we have. A fiduciary responsibility over how those how that board is determining how this money is being spent. Yes of the board is appointed there are how many members twelve members and they're it is spelled out in the legislation that created the board specifically the appointees who appoints them and that their their term so it is it is lined out in legislation as to who's who a pool points and how they're put on that board. Are you done Senator no okay hello yeah I mean the the pop and so one of my issues I have with that is that if it's not within the Division of and of a if it's not within the agency then are we does that come before Legislative Council for approval over those disbursements of that board did they come before Legislative Council before they spend this money because of its not that's that's that we've run into issues and problems before where we have had a board and there has been no fiduciary responsibility your oversight by an agency which then that bypasses our ability to see what they're actually doing with that money sure three Legislative Council review I understand and this this particular legislation that we're looking at in front of you it clearly winds where that money is supposed to go so the two million dollars goes to the seventy five counties and it is actually broken down in the full legislation it's broken down how the amount of money that goes to each county it's actually a reverse process for population so a lot of times we'll see as a grant program if you will that goes by His population is the highest amount of funding in this particular legislation it's work so the lower populated counties actually get the majority of that two million dollars and it's broken down specifically in the legislation on on this particular language that we're talking about right okay that does that ever come before a Legislative Council for review no ma'am okay that's I I had that's I have a problem with that I'll be quite Frank. Thank you the other I want to reference the bill sponsor do you have a comment Senator before I go to selection pardon I have a question okay. Well I mean I guess my question be while if it's all lined out of how the money's gonna be transferred what difference does it make because to add a more than nine one one board I think the only difference is. The end of the day Smart nine one one gets six hundred thousand SmartPrepare gets to under twenty five thousand and then Arkansas counties get two million which lease the hundred seventy five thousand which instead of going to. Adam thing goes the nine one one board. So how would they utilize that one so that the only question here's the one seventy five everything else Adam would do automatically per the legislation so what are they going to do with the one hundred thirty five thousand. So the one hundred and seventy five thousand would be just as it's one that in there for Adam it would be for the admin any administrative costs of the board so everything is it find out in this legislation would just simply change to the board to do that and again I think the whole purpose behind this is so that as we look at nine one one in the state of Arkansas and that the board tries to move forward with getting the state of Arkansas next generation systems and text to nine one one embrace the state of Arkansas up to current technology for not one one we felt it appropriate that all of the funding that's coming four nine one one services is coming to one location so that that can all be handled looked at as it needs to be looked at and handled under that. do you have a follow up go ahead Senator Dismang so you keeping license for trying to take a look at that and I just wanna make sure because in statute and not in anything else with which we specifically say three million dollars dollars will be transferred to be honest I may have something to do with this a long time ago I think it's been on the books for a long time. But is it do we need six hundred thousand dollars for Smart nine one and do we need I don't know what smart of never understood what Smart nine one one is or SmartPrepare is is it need to under twenty five thousand or should we look at reallocating those funds in some other way or at least have the latitude to be able to re allocate those funds and some of the way because if we're just going to give. That's bigger than this bill but. Man and the way that I see it right now. I don't know what all the responsibilities and I'm on one board or. I'm not sure that they know yet because they haven't had the before release that incur costs for them. I mean if it's to take a look at these things why are we tying their hands by dictating that certain amounts go to certain funds that make sense it does I and I think it meant. I think is the original legislation. When Smart nine one one and SmartPrepare was actually placed into that legislation that is a program that is statewide it's in all of our dispatch centers so a very short explanation of that is that anyone can sign up to that program it's free of charge to any citizen so if I at let's I'll just take me for example if I have a medical condition I can go on to Smart nine one one I can register myself and I can say that I have an allergy to penicillin or latex that information when I call nine one one from my cell phone or my landline phone that information is directly transmitted to that dispatcher the dispatcher can then let the ambulance service no don't push penicillin and don't use latex so it gives that information to those first responders that are coming to the home so it's it it is a good service as far as the citizens of Arkansas are concerned that but again I think back to the point of of trying to move this at this time the nine one one board is as you said it's really trying to figure where are we right now where do we need to be how can we get the state of Arkansas really ahead of the game as far as nine one one is concerned so the point again of this is to let the board look at that let the board determines what what is that serving is that serving what it needs to serve are there other products that are out there as may be things that the board might need to look at in the future and I think that's the reason for kind of looking at this is to put everything together in one location I want to go to Senator Hammer then Senator Elliot I believe you want to be recognized and then serving but I want to clarify something that Senator Irvin ask the bill in question concern of not going in front of legislative oversight in the interim that's in a previous bill directive is that correct I'm seeing your staff behind you I think staff not. A is that a correct assumption so to the extent that has to go this bill senator Dismang deals with a hundred and seventy five thousand for administrative expenses do I have that clear yes and maybe my committee members all understand that but I want to identify those a very valid questions that senator from now so let's get back in the queue here senator Hammer you are recognized for a question. Thank you Mr first one is is this all driven out of the legislation that we passed last session and it's a matter I don't have anything to the last one right correct. It doesn't it doesn't in eighteen so this language is probably if I'm thinking about it correctly it's been around for six years let's say okay because I think I was the sponsor and still learning and I will completely admit I'm still. I mean I would just tell you like to have a I'm not. We need to find out I think if those different amounts that we specifically allocated out of the three million are actually the amounts because I'd be shocked if they stay true. For six years and if they did stay true why her. because at one point we're either paying too much for paying too little for the services okay I mean how many people signed up for smart nine one I have no idea if there's only a handful out there yeah in civil and I think that's the discussion we need to have the beginning for making this move and shifting everything over to this independent nine one one group to be able to start looking at the system that I think the bigger picture needs to probably strike some of this mandated transfer amount language from the bill so okay senator I'll go ahead. So the six hundred and twenty five thousand the two hundred and twenty five are still true to this day these Smart nine one one is more prepare are actually from rave mobile safety that's the company that provides that product Arkansas Arkansas is the only state in the nation that has the system in every dispatch center in our state no other state does that rave at this point has held that contract true and they have not increase that because we are still a state wide state what user of their product and they have agreed to hold that truth as long as this legislation remains in place they agreed not to increase that cost so that come that contract amount is still the true amount that we pay annually Senator hammer for recognized for follow up okay so inspection form the Emergency Clause. It It sages found the term by the General Assembly severance salt that is that a major contract involving crucial emergency management programs expires June of this year did that you use that term that runs through the normal procurement process and is it going to have to run through the procurement process again before June thirtieth and what happens if it doesn't yes it did run through there through the normal process yes it will have to run through that even if it's moved to the nine one one board the board still has to run through through all of the contract process to get that approved I'd I think that working with the raid they are willing to postpone the payment of that until July knowing that this legislation is in process right now so which is a contract for it will be a total of eight hundred and twenty five thousand it's the six hundred and that two hundred and twenty five. So I look at it is legislative branch will be one country force for review yes yes it will come to you for review. Senator I don't know if you want to answer. Okay not in let's just if I'm running the bill or not or not voting on the bill today because that I think there's some things that need to be is discuss with it would appear but I've got two people that might want the questions answered prior so they can answer questions I mean I mean I'm the sponsor and Roman. well. The reality I think what we're looking at here. What. We we with this bill need to get answers on a previous bill completely answered before we really do consideration of this bill it sounds like but Senator Elliott Senator Irvin do you need questions answered I would just make a quick and you know to the man in the case but then the table but actually it's it's not actually my question is not prohibited what. Yeah what this is kind of remind me that when Senator Dismang was talking about how to sponsor that legislation you know maybe twenty seventeen or something like that it is to see if my member is B. as part of the black caucus has met and talked about this a couple times times in death we've had presentations on this and I remember when we met in Fort Smith what we actually visited that we if we what do you want to all yes yes it was but you were not a part of that because we were we what we did went to see it demonstrated at the office and there was a misleading impressive and it was there and some other place but we saw how the how it actually worked and it made sense to me that we could have this kind of thing as is something that I'm out of the woods up some wherever and something happens and somebody comes to pick me up and I've got everything they need to know on my because I'm I'm I'm a smart you know of the subscriber so that's I am thinking about the right thing and that's why I see somebody has an announcmenet yes okay I'll get it for the rest of the stuff clear next time but I just wanna be sure I had my line of thinking right to that Senator been. Yeah I mean thank you I two Senator Dismang concerns that he brought up and I think that's that's right I mean you have this language in a in a statute is a little I'm not sure if we want to do that or not that my overall issue is when you have an an elected appointed board making decisions about taxpayer's dollars without proper legislative oversight that can get out of whack real fast and so four years you know you could accrue seven hundred thousand dollars and four years just for administrative costs I. There needs to be some oversights that there needs to be legislative oversight over that because they're not elected like we are and we have that responsibility lies with the legislature okay Senator Dismang you have a comment if this goes back to Smart nine one one because I understand that it's an all seventy five counties and that sort of thing but how many because this is what I've heard from county judges previous to this is I think they rather have it be to two point six million as opposed six four thousand the question for me would be how many people. How many folks have actually signed up for smart nine one one because what I'm hearing and I've heard it's been awhile the people are signing up that when I try to have their rallies or whatever it may be to get people signed up they don't participate in at the end of the day. You know it's a program that's really not working they were spending six hundred thousand dollars once you know the number of folks that are signed up. I do not but I can definitely get that information and if it if I may um C. J. Ingle with the nine one one board the ticket executive director could I have him maybe answer some of the questions you got on the petitioner at the very least let's introduce him at the end of the table I think our questions are waning to the point that I think we're taking somewhat of a different direction perhaps looking at a previous statute and what might need corrected there but please introduce yourself for the record thank you Mr chair C. jingle executive director of the Arkansas my one board I really just want to clarify back to the oversight of the number one more although they are appointed not elected positions in a separate bill this is where this kind of gets a little you know wavy here what we're talking about the ACT six sixty of two thousand nineteen which is the overall public safety telecommunications bill verses this moving the just the role enhancement funding to the board to put all that money in one place for distributions to the peace out in the accident sixty of two thousand nineteen the board is required to provide an annual report to the Legislative Council and the governor's office on the expenses and the revenues and all that so that is addressed in the overall public safety telecommunications bill which if this money was brought to the now one board with them fall under that so that might answer Senator eleven questions or it might not but I want to clarify what you just said the question was the hundred seventy five thousand will it have to come in front of a LC for spending present a straight expenses no Mr that's what we're still getting the same answer so Senator Irvin comment. Our question. Someone has done her so she can get all allowed three in a room. Yes no I mean I think that's my point and so I mean an annual report is very different from an appropriation and how agencies spend their money and how agencies report back to the legislature those are two different things and so and my experience working through audits we had a a board that created and utilized that money for their own nonprofit organizations and then they were double dipping in and for themselves and their unemployment and we had no eyes on that. At that that is those are vastly different things an annual report versus the way an agency has to come before us for an a a spent and then moving that money to spend Excellency are two very different things all I think Senator Dismang is pointed out the fact that we're gonna have to go back and look at what's in statute before we can really deal with this issue so thank you for being president members before everybody bills out of the room and I see Senator Hammer taking a call that's fine go ahead we'll catch up with you later I do want to reference that I want to publicly thank Sherri and Therese our staff members if you could each take a look at your calendar or upon completion of today. There will be roughly six bills on Thursday but my intention is to not run all six of those but be prepared if we move along at a good enough pace to get out of here we will you'll notice do not read senate bill four seventy one it's been withdrawn senate bill four seventy five is coming there at the bottom we have three bills that have been deferred and those four Bills at the bottom are to guarantee but there what's being heard in the House before we meet again so that your agenda that's all that's out there right now so we're getting to a point where we can lease the the end of bills so good job thank you again to Theresa and a sherry so