JBC-Special Language

Members please take your state. All right thank you for coming in early this morning we're going to get started everybody ready let's go. Yes builder. Okay good morning members welcome to the special language subcommittee we will be meeting at seven thirty per the rules of the Joint Budget Committee the first thing would like to do including your package we have included a copy of the rules of the Joint Budget Committee this subcommittee falls under those rules during session so you're welcome to take those with you and I'll go over those at your leisure we're going to go through I don't see on the agenda which is the brief overview of the committee. The purpose of this committee essentially is to make recommendations back to the Joint Budget Committee on special language is included in the appropriation bills all the pertaining to fiscal and programmatic operations we're gonna go through state agencies boards commissions and institutions of higher age higher education this subcommittee receives bills that include special language with any changes from the previous acts or new language that was recommended by legislative counsel Joint Budget special committee during the fall budget hearings it's going to review all proposed member amendments later on in the session in any member bills or governor letters with new special language including market that's been referred to the subcommittee or signed to the agenda by the chairs of this subcommittee were also charged with making sure that these bills referred back to Joint Budget there are some general guidelines essentially this language is in force for one year so you'll see that there's a sense that I must be selling which in all languages been formatted to reflect the market style so anything that is new will be underscored or underline and anything that's requested to be removed will be struck through come a committee actions we can approve language we can approve it is modified we can delete or discontinue language and if there's any changes to code that would be a motion to repeal language. Thank you Mildred. Senator sample did you have a question. Question but I was just going to ask me over pole mark Fuhrman for the closure to serve good here thank you. Hello my close. Right in the when you're ready. Okay let's move on to Adam date will start looking at the special language. Members in Iran D. these are all bills that have been referred from the Joint Budget Committee special language. Each item in the packet will have the first page of the bill that we're discussing and then the piece of language and you'll see that indicated by a black arrow so for the first piece on page two this is for the purpose of finance administration the regulatory division at house bill ten seventy two you look on page three you'll notice that black arrow this is special language that has not been changed the change is that previously the tobacco control commission had this language in their bill that sense transformation now that it is part of DFA regulatory division this language has been moved to reflect the proper placement of that program. We need a motion on each piece of language manager. Do I have a motion. Represent the level do you have a question yes ma'am I have a question. How long have we had this piece a special language is this is this. Years and years that we've been renewing in or assist. You know. Many of these pieces of wine which have been there for a number of years With regards to exactly when it was put in we would have to do some research for you and get back to you on. Engine that was put in what is there a reason why this this piece a special languages can be incorporated into the bill so that we can that we can get it out of special language. Because I think I mean we we meet every session and we continue to go there special language that we continue to approved instead of the agency just and into the bill and the and. And then be and done I I guess if in this is this a special reason why we need to continue this special language could we not just have them incorporated into the bill into their appropriation written appropriation Representative cannot I'm a Representative Love I think Mr believes going to come down we've been speaking about that to him okay thank you. Jake please DFA office of budget this is an issue that we've had with with special language for a while I think if I understand your question you're asking why this is in the appropriation act as special language as opposed to stand alone bill that would be added to code is that is that right that is correct and it's certainly something that we'd be happy to look at our work with the General Assembly on it's an issue that the previous a special language committees and struggled with and it's it's an area where some of these pieces certainly I think could be moved over to code without any effect okay thank you thank you Mr. Do I have a motion. The couple. Senator Hickey up based on based on what we just told and with all these are coming up my suggestion would be that since were surveyed in session that that be done I mean if we're going to do it I think you know for my past experience sitting on this committee is we always say yep we need to look at doing that we never do so I don't I don't see what why with this one and multiple others that are coming up that we wouldn't just say well we're in session this make it happen. Senator Hickey I think Marty's gonna going down and address part of our concerns we've been having the same conversation about why we keep seeing the same special language again and again thank you ma'am. Marty Garrity with the bureau of legislative research center Hickey and represent of love so we undertook a little bit of this process two years ago with prior to transformation we took a look at agencies that weren't going to be impacted by transformation to look at their special language to determine what could be codified Jake and I have had an initial conversation as well as conversations with some of the other members to after session take a look at all of the special language to determine what could be codified for the fiscal session that was our intent it's a long process and we want to make sure that we don't codify something that should be codified it should remain a special language and it was a project that we were considering would be done in coordination with the FAA. If I could add to that Marty's right I mean we were looking at all the appropriation acts as you all know a lot of these bills have been amended with special language that some special little wrinkles to that special little section the act I think the first question is do we really still need to special language if we do need to special language and where should it worship Leo should within appropriation act or to live in code keep in mind if it's put into code this body will not it will be presented to this body on an annual basis it will just leaving code forever until somebody files a bill to amend it keeping it in special language in keeping in an appropriation act gives you could sit there for you all annually and requires the sort of debate we're having right now on each one of these pieces of language so there is an advantage. The firm up from an oversight standpoint to having it as special language in an appropriation. With that and I do understand that I guess and respectfully maturity I just the. I mean we can sit there and say this but I mean it looks like this one is five thousand dollars for. tobacco control for sale of cigarettes or tobacco to minors is that what. Senator Hickey this is for the merchant can education needs there's a program where they go out they indicate merchants on what requirements are needed under the miners and enforcement the fails to make sure that all distributors and and people who were engaged in that activity following the rules. Does anybody here think that we're not going to continue that as long as the money's there. Of. Well we concert that's certainly something we can look at the dressing in code if we wanted to a lot of the specialized and that we're talking about a promotional items language that's an area where you see a lot of agencies who have special language giving them that I'd love to see a uniform promotional items code. So that everybody's operating on the same rules and we all know what's happening for example and that might be one bill that could remove the need for a lot of individual pieces a special language that alternately all the same. I just I just would like for us to look at him on a case by case basis and if there's something that we see that we can remove you know I'd like to because I just the again. I came in down here. In a few years and we keep saying this all the time and never never happens at I love the look I would love to work with this body on doing just that because we struggle with a lot of the same issues internally so do we not do or do without may it may continue I did mean to continue that way merit continue reading yes so or so we were looking at this particular item. Can we not take it today and see if that they could be putting code and if there's any issues just will bring it back up as another special language with with the permission of the chairs I'd like to get with the agency really quickly and have a conversation with them Mr believe and and if if it's okay with you I'd like to come back and and kind of follow up on this conversation on that issue and then really asked the same question of everybody who brings business before this committee and and you to be honest I didn't mean to pick on you because you're just happen to be the very first one and and that's exactly why I'm doing it at the beginning because each and every one of them I think that we need to go through this I think represent both as of correct with these the sings the if there so we can go out and get into code. It would make sense of it doesn't make sense and it needs something we do need to look at ever. You know every time then we can do that. So I would I would like for us to look at that the now this okay madam chair yes. Seriki we as a as an early check we've been looking at that too thank you mark in my eyes after so many years is no longer special language it needs to be codified in needs to be put in because of it's a process that's continuing going way there to have a rule we need codified because it's not special language any longer I understand thanks thank you. Commission skews me. On page five of the package you see section six is this section we're discussing this deals with fund transfers. After review of the CFO and reporting the Legislative Council the Commission current quest up to what was previously in language was two million dollars to requesting a change to one million dollars per year. And to move that from the oil and gas commission plan to their abandoned and orphaned well plugging Fund the new language that you know is also request. To transfer ten million dollars at one time an emergency transfer so that they can go ahead and plug somewhere else the only gas commission has identified approximately four hundred fifty abandoned wells in ten million dollars in needs for well closures and the increased level of funding will allow them to go ahead and reduce our inventory. So they would like to go ahead and have this language approved injuring budget hearings that appropriation for these funds was increased from two million to twelve million to accommodate the request. Any questions. Representative has. And Hester. Yeah you know it says ten million dollars mistake treasury it is that they have that money in their budget or is that coming from some sort of state revenue general revenues they currently have the funds to complete the project the fund balance last year was processing thirty nine point two million thank you. Any other questions members. Do I have a motion. I have a second. All in favor say aye. Thank you. I was looking to three. This is house bill eleven forty four for the department of education the Arkansas school for the blind and the Arkansas school for the deaf the notice on the next page on page eight and section twenty one this is a request for carry forward of funds. They would like to transfer the balance of their general revenue funds that remain in the school who the bond fund account on June thirtieth twenty twenty one into a sub fund that's going to be created within the school for the blind and the like to use it for special maintenance renovations or future construction projects you'll see that there are stipulations to the carry forward we're familiar with them having to explain why they need it and for the information on the projects and expenditures to be included into the Budget manuals so can be reviewed during the budget hearings on there's another companion piece that will go through this will be for school for the deaf that is also similar it's also carry forward of funds but my understanding is that these entities don't normally have savings but in the event that they do that like to just as they do with the apartment education has a building fund utilize these funds for any repairs and construction. Any questions members. CNN do I have a motion. I have a second. All in favor say aye. All opposed nay nay. All right carries let's go into number four. This is house bill eleven forty six this is the department of corrections division of community correction on page thirteen you'll see the first piece language deals with their holiday compensation currently there authorized to pay their employees for up to ninety six hours of unused holidays if and anything that exceeds a balance over a hundred fifty hours they would be paid the language of the structures says following the end of the calendar year the agency would like to change this so that they can pay those employees earlier than that. Representa Wardlaw do you have a question. Yes madam chair can I get someone from the department please yes can the department please come forward. Thank you. Right. Thank you great some great state terror corrected the Wardlaw your bill. Yes Sir thank you madam chair. If you look at line seven on page nine thirteen I guess and who gets to page numbers on a. When you strike that language that language is there to give us some sort of idea of when these people get paid. And throughout this last year these folks have worked a lot of overtime so they put in a lot hours due to other guards and all janitors and different people being all quarantine how do we know or how do we just insert some type of deadline here that we know they get paid by a certain time I understand you want PMR earlier but I want to make sure they get paid. Yes. Wardlaw what this language created is a situation where we could only in there somewhere language for the Division of correction that will get you want to stick with this language. In effect required by the division of community correction to only pay holiday leave. Between January first of the calendar year and if you skip down to. I just had it with a line eight. June first what we're wanting to do is leave and the Joan first name due date of the cruise holiday in a fiscal year but say a officer works July fourth instead of that July fourth being banked until January of the following calendar year we want to pay the July fourth out as is as is our. Okay as long as that happens I got no problem you. Thank you madam chair. Thank you. Any other questions members. Thank you. Do I have a motion. Second. All in favor. I'm opposed. Past. I move on to number five this is Senate bill one oh nine this is for the bureau of legislative research Legislative Council in their interim committee of the General Assembly on page fifteen on the next page you'll see section eleven. Classifications utilization language that allows the discretion of the director with regards to utilization of the classifications that are listed in the language these are only temporary reclassification for cross grades of positions and you'll see a bottom of the page on line thirty five that there is a new request for application support specialist and I. T. five my understanding is that there was or requirements that were needed in our I. T. department and this is just across grade changing Bob Jones job duties skews me. Any questions members. Sandra have a motion. Do pass do I have a second. All in favor say aye. I'll close a nine. It's moving the number six please this is house bill ten seventy seven Arkansas public employees retirement system on page seventeen you'll see section nine there's a request and there is another companion request these deal with the judicial retirement fund transfers and the state police retirement fund transfers right now the public employees retirement system administers both those systems and they have costs that they incur in doing so so the language essentially is asking for reimbursement of those cost is approximately a two point nine percent increase from the previous fiscal year so for the judicial retirement system you'll see the cost is going up from sixty one thousand two approximately sixty three thousand and then the next piece of language for the state police retirement it's going up from a hundred fourteen thousand two hundred and seventeen thousand agencies just requesting reimbursement of these costs. Any question members. C. N. nine do I have a motion. Second. All in favor say aye. Right so moved was moved down to number seven place this is house bill twelve oh six department of corrections division of correction. The first piece the languages on page twenty and deals with contingent positions this is a long section all of these are contingent positions for the medical services and the changes agency actually take page on page twenty two M. online six and seven you'll see the institutional HR coordinator in HR specialist their grades have just been changed to reflect the uniform compensation classification new titles that will put in. On page twenty three we'll see in section twenty six as secretary grease mention this as a companion piece regarding holiday compensation issues the same like to go ahead and remove the language that limits when these payments can occur for the holiday employees who fall under the categories listed on page I'm sorry online thirty four you'll see there's also a increase in the grade and on page twenty four there's also an increase in the great these grades went through the personnel subcommittee during budget hearings and they were accepted by Legislative Council joint budget so the special language was changed to reflect that. Any questions members. Representa Payton. Thank you madam chair on a. Page number twenty four of the agenda. Page twenty one of the bill. Line number eleven what can somebody tell me the difference twenty straight time liability and gap time liability. Can you please come down. When you come down please introduce yourself for the record please. Solomon graves a tear correction of representation there is absolutely no difference and straighten gap time this was a change in nomenclature requested by our human resources staff prior to the fiscal session thank you thank you madam chair. Thank you. Thank you recognized yes of the language that represent a Payton was discussing the employee compensation report essentially the off the Budget has to prepare a report for the Legislative Council or Joint Budget review that reflects the amount of appropriation funding necessary for department of corrections to operate the programs that were mentioned by Secretary gray's and that's three questions to change the name of the program but not the program itself. Any other questions members. CNN do I have a motion. To have second. All in favor say aye. Look into number eight please. All sorry we're not finished with that one sorry this is a long section on page twenty five there's language requesting new facilities sent to this language states it'd be beneficial for the department to after receiving approval of the chief fiscal officer and prior review by counseling Joint Budget transfer from their line item in the inmate care and custody appropriation. Into what used to be there professional fees and services line item they'd like to change that since transformation has taken place to their shared services appropriation and line items so they can operate new facilities my understanding is within this year services appropriation there's a line item for regional jail currently there are about three hundred thirty six beds and B. we County Texas that are housing Arkansas inmates and they would like to move these inmates back to the state of Arkansas and so they've got facilities in Baxter Andrew counties that they aren't like the contract to have operating in the facility so they can go ahead and move this and that's what languages request. Section thirty nine on page twenty seven deals with transfers of appropriation to the county region jail reimbursement fund that like for any savings of the General Revenue appropriation and funds that accrue during the next fiscal year. To be transferred to the county jail reimbursement fund so they can meet all their obligations to counties for housing state inmates. On page twenty nine this section forty six. You're in make consumption language this is completely new language on notice it's all underscored and they would like the value of the products that are produced or processed on the farm that are consumed by inmates to be based on the prices obtained by the division and the state procurement director to purchase some of the products and quantities. There are utilized by other state agencies institutions and universities. One more piece which is section forty seven. This is carry forward. This is further energy maintenance and operational savings financially this gives the Department authorization to reinvest their guaranteed savings for future and existing energy conservation projects right now they have got some maintenance and operational savings that they think that they've generated through energy usage the approximate it's about three hundred forty thousand. And I believe that this also reports to council the amount of realize savings and expenditures by the department. Thank you Russians. Yes and I have a I have a question if the agency could come down for a moment please. And please introduce yourself again. The represented Kevin Kevin Oliver may have a bit of leeway going back to section forty six yes we actually ran a bill and Revenue and Tax yesterday that address the same issue going back to the comments that the committee discussed at the beginning this can actually be struck. That thank you secretary that's exactly what I was going to ask you did we not just run this language and get it out right after that. Okay. Yeah Senator Hickey you have a question. It just a question to make sure I understood I heard the comment about the Billy County prisoners and it would be used to transfer I thought that that it already transpired. So. What would we say. Yes go ahead senator Senator Hickey of and and and you're right that it was phrased as if we were doing it we have already move bills of resident those inmates back to Arkansas what this language the reason why we made that change inst instead of administering that contract out of the lord Division of correction appropriation it's being administered out of our shared services appropriation which necessitated the change in special language would you correct we have already relocated those inmates back to the state of Arkansas. Okay so the office of the the comment as far as that the and if I understood that right that the money was going to be used for that that was done because of that is not correct in yes. Yes that is correct you know you not you're a your understanding of of it is correct that the money that was initially allocated for the but we County contract is intended to offset the regional jail contract down and Bradley and Drew County but you are correct that the inmates that were House done of the bill we County contract have already been relocated back to Arkansas. Follow up matter yes. Okay I thought the reason for removing them was that there was going to be a a large deduction in the cost. So we transferring the entire male the of rest in the reasoning for terminating the contract with but we County related to the differences in the of coded response protocols. At that facility versus what the department of health had instituted for correctional facilities instead of Arkansas. If I remember right I thought that that we we kind of talked about there being a reduction in cost whatever we were discussing all that. I don't remember anything about the code response what I remember being a large factor was the You're with the reduce costs that the removing those. Senator Hickey in the just the rationale for my request to the governor and to the board of corrections to terminate that contract related to how that facility was handling code. Okay as far as the special languages that relates to that particular one's I'm in a binder stood right stood you right that's just a budgetary amount how much is. I'm. Thank you do. H. the. The project the Boyd county contract was about four point three million dollars a year. And we're saying that we need to need that four point three million. For those for the same exact prisoners that we moved to the new facility when it opens and January of twenty two. The there were actually be a slight increase in the housing costs so in order to offset the state's obligation to house five hundred inmates of Bradley and Drew County we do regional jail as opposed to the three hundred and thirty six we were contracted for in but we County we're taking we're reallocating the money from the what was the Boyd county contract offsetting that within a of additional general revenue allotment to meet our five hundred offender. Ation to the contract so it is so it will be more more invasive care of yes Sir and I guess my question on this particular item is. I see we're doing it in special language with its not be something that we could have done in cold. Your record record budget process on that one I'm going to have to defer to the expertise of DF and a and the bureau as to the appropriateness of codifying this section. Because that's what it I would assume all the. It'll all other moneys we've got our. Inco the way that the that's been transferred to you all. I don't either I can say in as the sake secretary I don't want to have a preference as to where the languages but as to the appropriateness of codification I wouldn't be the expert on that once or. You will get will get check billing during the minute thank you Whitaker. Representa Payton. Thank you madam chairs on section thirty six. So special language pertaining to the new facilities operation. And it has own line five there. The. Transfer from any line item appropriation contained in the inmate care custody appropriation of this Act or from any other appropriation acts authorized by the department that seems awful broad and I'm wondering if that's. I mean I know it's got to do a shared services but is that something that is ordinary used in other places to open it up and say from any other appropriation act authorized by the department. Representa Payton the intention behind that of the languages if the emergency situation does not set the date itself where we needed to plug a hole in a housing contract with special revenues this language would allow us to do that. instead of having to come back to the General Assembly this is of contingent of form of contention authorization. Well I appreciate that but I don't see where it's restricted to emergencies. Why don't you come on down. Be sure to introduce yourself for the record. Jake we DFA office of budget you're correct in that this language does not specifically limit its utilization to emergencies but it is it does require prior approval from both DFA and ale sees I read it so this would be something that would not be utilizing normal course of events if it is a process that they're trying to use in transfer language the normal process that in normal budgeting we want to see them present that in an appropriation I to this body early on as part of normal budget process this is really there in the event that something unforeseen happens during the interim where we have to they would come to us with an issue soon we approve we would presented to LC LC could then approve it and then we would utilize language well it turns me that we would start practice like this the could be. An excuse to do it a lot other appropriations and departments and it seems very broad. In its interpretation here. So I'd just like to know is there any other precedents where this is been done. Not the least among immediately and and you're right this is new ground because we are in in transformation we did create a shared services process up top of the agencies where we do have sectors appropriations corrections is a little different because the regional jail operation is up there in there Secretary level in eight create some different challenges for the agency they have to do that though to maximize the the efficiencies of utility the regional jails that all those different divisions can can use it this seems like a maybe if we might need it. Meanwhile. Like civility thank. Is this something that's absolutely necessary to be in the special language or could it be amended out. Of I was just talking to secretary here I think that we might be able to utilize our existing processes through transfers and his indication is that they would may be able to find a way to operate without that language is nice is certainly appreciated because it gives me great pause to Senate president like this thank you thank you Sir. A senator Dismang. Thank you madam chair and just real quick some a little bit confusing that transfer of you know that those inmates back Arkansas I thought the argument back during. Budget meetings was that there was actually an being increase costs and it was really due to services that weren't being provided to those inmates out of states were getting them back in state so that we could do. You know do more with them and help them succeed you know it as they're coming out so I was a little bit surprised to hear that the transfer is solely because of because of the. and also thought it was going to cost more to the state senator dismaying your your recollect tion of a joint of our precision budget hearings is correct that is the reason why we wanted to and twenty twenty two shift from Boone County to the regional jail you are correct that it does provide in addition to the benefit of bringing Arkansas animates Arkansas inmates back to Arkansas it did provide an opportunity for us to provide more services to those inmates at that facility subsequent to of our budget presentation we became aware of some differences and co good response protocols that necessitated us immediately pulling those inmates back to the state of Arkansas and and I guess as far as is being special language and maybe this is the if any may just said it I was reading side with a processing where probably should but then if we will who put this in co that is perpetual at least in this way that transfers it only happened once those expenses should move into the main it does expenses that we had in place for the out of you know state jail would not be able to be or prison would not be something that would be moving forward and so I would think this is something that should be in special language. and I'm getting down to the very last of section forty. Seven and if you don't mind give us a refresher on that and you guys have some energy saving projects and kind of similar to that I know there was one over at the desire to see kind of what was going on before you started spending those funds to that there were true savings realized he walks through ten year road map of how that's going to play out the server of we have entered into a. Energy savings of contracting program in conjunction with the department of energy and environment where we have a vendor that has come in and has identified mechanisms through of Linda renovating our water systems at facilities are electrical age back systems at facilities we utility we've you've incorporated the utilization of solar at several locations and we're working on a another solar site now what this language will allow us to do is those guaranteed savings instead of the instead of of the Department being in a position where we have to immediately find a way to utilize those in a given fiscal year that they're realized this language allows us to transfer those rely savings after we paid the Bond commitments on that project move those realize savings into this fund that subject to review and approval by the Legislative Council we can come back and utilize those energy efficiency savings to offset deferred maintenance to our facility. It and so for us as members a minute think if I remember again pre budget we wanted to make sure you demonstrated the savings that we saw that kind of this model was going to work for this thing it was firmly putting code or if it was ever to be put in codes and is it yes that's where lines thirty three and thirty four coming to get to get ahead from DFA that was also your desire or something that you would like to see also. We would be okay with that that's. Presenta Payton. Thank you madam chair the motion at the proper time to. Change the language and section thirty six just a moment any other questions from members. It were also named in that motion that we have to strike out section forty six. Okay I wouldn't. An attention to that one. The. Hi motion to use your. To somebody else. We can combine or someone else can do it but we need we need a motion on both of those. So my motion would be that we return the language this section thirty six of two original form. No I have a second. No second. Motion dive. I need a motion to strike section forty six. I have a motion. Second. They're all in favor say aye. Right. So moved. We're going to move on to thank you all Jake did you have anything to add about the prior. No ma'am okay thank you. We're gonna go to number eight. Members house bill twelve oh seven this is department of energy and environment division of environmental quality on page thirty to the next page and section forty seven this deals with the landfill post closure cleanup restrictions the current language allows at any excess expenditures of fifty thousand from that fund for corrective action to remedy any environmental impacts of closed the disposal site previously operated as landfills to have their expenditures approved five Arkansas pollution control and ecology Commission that changes that the agency is requesting is that rather than fifty thousand per site they would like to increase the amount of two million per site. And rather than prioritization an authorization by the Arkansas pollution control and ecology Commission they would like it to be subject to review and approval I want to make the distinction that here the language previously said two million per fiscal year have to be approved by the commission but now it's going to be two million per site so that's a major change and that's the language madam chair. Senator this mind you have a question well actually I want to go back to I wanna make sure I understand what we just did on house bill twelve of six and we had a motion to strike the language on the in section forty six we have a motion to adopt the language in twenty two twenty six twenty seven thirty six forty seven. Now we need that motion okay if I can make a motion that we adopt language in twenty two twenty six twenty seven thirty six thirty nine and forty seven I think that's everything yes. They're all in favor. Opposed thank. Thank you senator is mine. Do you have any questions dealing with H. B. twelve oh seven. With no questions I move to section forty nine that deals with the landfill post closure trust fund currently the language allows for the department to assist. Solid waste management districts that have difficulty in finding the necessary costs of closure and post closure care of landfills the language that is being requested to be change if they would like to remove closure from any monies being exposed expended from the landfill post closure trust fund so any funds that are expended for this purpose only be for post closure activities and this is under conditions of any regional solid waste management district that has filed for any protection under federal bankruptcy law is unable to meet any obligations or is otherwise and saw and those of the changes that are being requested manager. Any questions members. Do I have a motion. Do I have a second. All in favor say aye this move on if there's no objection. I would like to move to SB one twenty one. Do you want. We still have one more section yes deal with that six. The final section for this bill is on page thirty four it's section fifty one and this is a code amendment to change too with the currently existing and concerns the issuance modification renewal or transfer of the national pollutant discharge elimination system permitting process there was language that was requested to be added that meet the Division treat a public facilities boards or public water authorities as municipal systems and researching this issue what my understanding is the language waives the contribution fees for public facilities boards or public water authorities because currently in order to obtain one of these permits there is a trust fund contribution fee that is required which can be up to ten percent of the estimated cost of construction of any new domestic sewage treatment plant for ten percent of any modification of the nonmunicipal domestic sewage plant and. It can charge up to a thousand dollars for notice charge permit for five thousand dollars for a discharge permit so the language that's being requested exempts these two entities from having to pay those. Contribution fees. That makes sense. Okay. Any questions members. Motion. Thank. Come down check. Please recognize yourself for the record. J. clean DFA office of budget my understanding is the Department energy environment has a separate bill that would duties language so this particular pieces special language is not necessary so we contract section fifty one special language yes. The Bill pass. It has been it will be filed or has been filed. It will be filed thirty one is distract the special language yes we would like to address this issue too caught up to code. Thank you thank you. Do I have a motion. What is the motion the motion should be to strike the special language in section fifty one P.. And then we have to approve the rest of the sections. We need to lift each water. Or whatever forty seven and forty nine have to be approved also. That the motion second. All in favor say aye. Okay. Carried. Let's move down with no objection to SB one twenty one. Members on page thirty nine this is Senate bill one twenty one department of labor licensing division of labor on page forty of forty one you'll see that there's some loose language is requested dealing with expenditure and transfer limitations. Essentially this languages saying that any expenditures of each individual board commission section or division in the department of labor licensing when combined with their fund transfers. But not limited to their shared services transfers should not exceed the net collections of the board in any fiscal year. There are some stipulations with regards to how these expenditures and transfers have to be calculated. Essentially language is trying to prevent a situation that would create the need for any board commission section or division to have to raise their fees fines penalties or any other collection at the in order to continue to provide services as a result of having more money being transferred out. Then coming in in revenues and collections. Any questions. Can we have the agency please come to the table. When you get down can you introduce yourself for the record. Madam chairman audio bass that secretary labour and licensing I'm accompanied by on my. CFO Karen freaky in my general counsel Denise Oxley I didn't forget. Speaking about something else first of all measurement thank you so much members of the committee I want to say from the outset that and we don't come to the table in any way in opposition to the intent of the special line which quite the contrary we come in support of its intention we think we share a common goal here in that goal being to preserve the fiscal integrity of the agencies that fall a within the department of labor and licensing we would be remiss having reviewed the special language if we didn't call your attention to what we believe to be some critical unintended consequences that will result from the special language I think it's important to note at the outset that a number of the twenty one agencies that were transferred to the department of labor licensing or insignificant fiscal distress prior to the transfer we you must know that we are in the process of rehabilitating the finances of those particular agencies now however we believe that the special Kateri can you pull that closer they're having a hard time hearing what you're saying I'm sorry. Maybe I should just talk louder. We believe though that the special language will impair our ability to continue the rehabilitation of those of those agencies that are in a fiscal distress the language in question to special language in question as I said earlier is is is is has great intentions but the consequences the unintended consequences that we see coming out of that we just like to just briefly and numerate one you will recall that we don't have the transfer language in place to create a common paying fine what this will create is my finance staff will be forced because of this special language to invoice each of the twenty one agencies then to monitor the receipt of the moneys from those invoices then to write twenty one separate checks for each bill that comes through the department I don't need to say how it efficient that is and potentially costly to the public you will recall coming out of the fiscal session that are transfer language what is current check the transfer language that was in place coming out of the fiscal session was going to allow us the efficiency of writing only one check because we were going to do inter fund transfers from the various twenty one agencies that special that transfer language while existed in most of the other departments no longer exist in my department that language was going to provide the department with the opportunity to continue to provide the needed administrative services that were once provided by the service bureau which effectively now does no longer exist many of these agencies you must know R. one and two person it. they do not have the where with all to conduct their administrative duties or and in most efficient manner or at least in a manner that I think would certainly pass muster with legislative audit and so that is a principal concern the overarching problem with this special language and that exacerbates of the problem is a reality that we now have the appropriation in one place and we have the money in another so even if this body elects to not address our concerns we will still have the dilemma of the agencies that will have to pay their own bills they won't be able to pay their own bills because we have appropriation one place and the money in another I'd like to just call my CFO to elaborate on just that point briefly so that you can get a greater understanding of what that means the appropriation being in one place and the money being in another restricted would you care to address that. Yes Is that the appropriation has been moved to the padding Fund for us to pay the on going normalized expenses of the brand and the copiers and the things that are operating there in the central office it's been moved there. Currently in without transfer language to be able to move the moneys from these boards and commissions we would not be able to do that and and and then that's the unintended consequence that he's referring to we have several boards that would not meet the capability for us to be able to do any transfers for them even if it's for paying for ongoing operating expenses. German if I may elaborate on that we currently have six different agencies that would be impacted by the special language the six agencies are are among those that were already in fiscal distress before transfer of we believe firmly that once we average the net this year and we we we average three years of revenue three years expenses once we factor in the covert year this year next year we know that they're going to be a number of other agencies that are going to also be impacted by. By the special language and so the problem is it is exacerbated we're we're going to have to find a way. if we're going to be supportive of this special language and we're going to be we're going to have to find a way to implement this process And I that's going to be extremely difficult under the current construct thank you secretary unfortunately we have run out of time we're gonna have to put you to the next one will put you first on the agenda but peer has to start at eight thirty we're just a little bit past that right now. Thank you for coming and we'll get you first thing on the next agenda thank you thank you. With that we're going to release the following from special language subcommittee H. B. ten seventy two H. B. ten seventy six H. B. eleven forty four H. B. eleven forty six S. B. one oh nine H. B. one zero seven seven H. B. twelve all six H. B. twelve oh seven and SB one six four thank you.