Arkansas Legislative Council (ALC)

Members were gonna be seats are going to get started. So with that we'll go ahead recognize Mister Richard Wilson for the revenue report. Mr Wilson we would get the revenue report. Taylor. Thank you Mr chairman. Again I have with me at least in it. A The New legislative economists she's. Bieler comes number three. And I just want to. Members to get used to seeing her so. This phase in begins and over the session shall be a you'll be seeing her with. your fiscal impacts and the. Main June next interim what we'll get back to the council type duties as well. So today we're looking at the report for November twenty twenty. so after five months cumulative. On a gross basis were three hundred thirty two million above last year after five months the growth rate is twelve percent and on a net basis. we are two hundred seventy five million above the net the growth rate there is eleven point four percent. Turning to the graph page you can see currently after five months two hundred eighty three million dollars above the official forecast. And again one more page to the spreadsheet. The five month growth rate for gross receipts is eight point eight percent and our income taxes are running about fifteen percent due to the time shift. With that would lead trying to questions. We do have a few seed eighty one. Thank you Mr chairman and really I'll just have to live with a commentary I think there was an article in the paper this morning I didn't have a chance to to get to really fully understand. What its impact was going to be but it was the decrease in personal income for you know our Kansans and we were one of the I meant I guess steepest declines in the in the country are among that list what what we think the impact on that would have moving forward as far as a collections and revenue for a given if you're not prepared to to talk about that didn't see the article I completely understand I didn't see it center but I can tell you that personal income is that one of the main drivers on on a. Our revenue forecast so if you were to do that. Derive an equation it said Arkansas general revenues a function of Arkansas personal income that would be that would be a very high explanation and a good question so to that extent it does have a negative impact on general revenue outlook. Thank you an out and like to pull that up for him and it's a significant decrease since my it's a question for DFA a question regards to how we move forward with the forecast I would think that's. That's a significant As we move into the session so thank you it's a twenty percent drop in third quarter is what it says and personal income from burning right all right thank you Sir. Sir yes ma'am would you like to hear the answer from the F. and I. That would be awesome I can't see anyone because I'm trying to work classes today and spoken up so. If someone's nodding out there I'm. All four to see play their last they're at the table Sir high perfect thanks. Action of you would entered John shall not with D. F. A. I did see the report this morning and and went through the components of the report for Arkansas. it is a quarterly number and it's it contains anomalies in the components in this case and quite often it is revolves around farm income. The the the bureau of economic analysis takes directly from USDA without any massaging of the number and that's not. It's not a adjusted in any way it does have swings in at the Aphex a group of states in the Midwest. And then another group of states in other quarters. so I don't think there's any Big story in that swing. actually when I look at the core component of personal income which we look at in the forecast for revenues wage and salary growth we actually out perform the national average. So that tells me that there's no need to change the forecast in that twenty percent something that we see then. On the on an annual basis there's a dip in the third quarter second what you're saying because the farming Commission user essentially yes must have something to do with farm payments or subsidy payments of some sort okay is there it so is it possible to take a look at that report and then look back with C. three years to make sure that that's a you know a typical decrease I can do that every great thank you. Thank you guys do have one more questions Senator Elliot for this group at the table yes I services shall not so when we determined. However that that number was determined does it include folks and when we determine that the income does it include folks and anyway who are newly or recently unemployed how do we get to that number well the I guess the the other story that shown in that report is swings in transfer payments from Washington to the states to individuals including the stimulus payments. those are rolled up into a a large number just call transfer payments and it as of that reporting quarter it was still a positive number and it's about to swing the other way quarter to quarter which we have anticipated and as the as I said the revenue forecast is largely. And to the wage and salary component which does not swing as much so we're essentially looking past that radical swing and transfer payments to come up with the revenue for the main portion of the revenue forecast in individual income okay thank you for. Senator Stubblefield you're recognized. Thank you Mr chairman I want to make sure I understand this the the report does reflect all of the agriculture subsidy payment this would pay out this past year. As far as the be a reporting of those payments and I'm not clear about the the answer to that question I. I have I have inquired with the federal agency before about that but at this point a I merrily focus more on non farm income for for forecasting purposes for a. four Arkansas revenue but I don't have a clear answer on the technicalities of farm income reporting through those two age federal agencies. All right thank you Mr chairman. Like Senator. So with that thank you guys for report good info in the discussion this morning so that I'll go to represent of Sullivan for a ministry for rules. You're recognized Representative. Thank you Mr chair the administrative rules subcommittee met on Wednesday December sixteenth at the agency's request one rules pool pulled from consideration prior to the meeting specifically at DHS rule concerning the children's health insurance program state plan amendment all other rules were reviewed and approved the subcommittee also received an agency update on delinquent rulemaking under ACT five seventeen of twenty nineteen a Mister chair I moved for the adoption of this report. As proper motion drive second. I have a second. All those in favor say aye. All opposed us have it thank you Representative with that we'll go back to the the report from the executive subcommittee out right recognized chairman but so. Thank you Mr chair the executive subcommittee met at eight thirty AM this morning and reviewed and approved rule one twenty two regarding prior authorization waivers for post acute transfers as an emergency rule for the Arkansas insurance department I move for adoption of this report. That's proper motion drive second. I have a second all those in favor say aye. All opposed ayes have it. So if that will move on to the hospital in Medicaid study representable of. You're recognized thank you Mr chair the hospital in Medicaid sub study subcommittee met December seventeenth at one PM to discuss the status of the company nineteen pandemic in the state the subcommittee also discussed how the spread of the virus is impacting the availability of intensive care beds in the state hi in addition to that we also discussed the vaccines and a vaccine rollouts this is a report I move for approval. Proper motion do I have a question for Representative okay as proper motion drive second. I got second all those in favor say aye aye All opposed us have it. Thank you. Representative a lane five you're recognized for litigation reports. Thank you Mr. The report oversight committee met Wednesday December sixteenth two thousand twenty at eleven AM in the back of the building members reviews seven litigation cases including one administrative appeal by the I a per sport to trustee of the trustees three cases involving public service commission three compensation claims by the labor analyzing Ford on behalf of workers seeking compensation from former employees the subacute a committee reviewed three proposal certain settlements in closing. One from the Department of Community community corrections employees one from the open a Firestone building products to recover use tax and interest from the state one settlement print DF and I've for a tax adjustment agreement between industrial iron works to do with Arkansas Mr I moved for a vote I moved for approval of this report. That's proper motion drive second. I have a second all those in favor say aye. All opposed us have it so with that we'll move on to Center Malek for the peer support Senator you're recognized. Thank Mister the peer subcommittee met on Tuesday December fifteenth the subcommittee approved request for various temporary appropriations ugh the cares propraetor request a rainy day fund transfer a restricted reserve fund transfer and reallocation of resources for the department Human Services subcommittee also reviewed several other items and receive monthly reports I move adoption of the report. Thank you senator. Members with this report I'm going to call Mr Jaitley to the table there's been some discussion and some changes since Tuesday's meeting. So I won't have a. Mr believed of given the Committee a report on that. Thank you Mr a. The requested that I'd like to update you all on is somewhat unusual one that we presented to the pier subcommittee on Tuesday as you all know we were given a large amount of funding for by the federal government under the carriage Act and given a deadline of December thirtieth to have all that money expended. When we got it back in February I think a lot of us had a hard time seeing the coronavirus even lasting that long but now we are in December and looking at that deadline. and we have a fair amount of money which has not yet been fully expended. The of we sent over a report last night which shows the amount of funding which we have we have about forty one point nine million dollars which has not been allocated and therefore is available for distribution in addition we have about two hundred five million dollars which has been allocated to the agencies in which you are anticipating will be spent that has not yet been spent. The intent of the request that we presented to peer on Tuesday was really a what if situation if Congress does not act to give us an extension on that December thirtieth deadline we anticipate that we will get that extension we have been anticipating that for some time the Congress has not yet acted. In the event that they don't act we want to make sure that we don't forfeit any funding and that we use the remaining cares Act funding in a way that can best help the state going forward. At the time we had proposed a three hundred million dollar appropriation which would allow us in the event the Congress does not act to sweep any remaining money over to the unemployment insurance trust fund and we still plan on pursuing that however over the last couple days we've been made aware of some some information and we've seen some numbers in our fight against cove it that make us think that the amount we would be transferring over to unemployment insurance will actually be significantly less. A. In particular you're looking we've we've noticed that and I'm sure you all are aware what as well that the numbers four positive cases for hospitalizations and for debts continue to grow and we are aware that between now on the thirtieth we may get of requests and we may identify needs which Kerr cares Act money can be used to support if we need to for example expand bed capacity in hospitals we have the funding in place and we obviously I think have the need the desired it to to respond but that would require additional action by this body an emergency request for appropriation to spend that money for that purpose. Assuming that request was approved that would reduce the amount of money that we have available to distribute in addition we have identified Costs which the agencies have incurred which under some more recent guidance from the treasury department we would be able to use that money to reimburse those agencies for those costs if we did that that would put us in a better position for next year. And finally there are some limitations that we've been made aware of on how we can how much we can transfer over to that you I trust fund which might limit how we handle it at the end of the year I wanted to make sure you are all aware of some of the the variables that we're juggling right now it's very fluid situation but I appreciate that you're giving me a chance to come up and go over that with you all. So as you can imagine we have some questions yes Sir senator Bon your first. Well I had funds my button before there was uh further explanation so Mr believe not discuss this in the peer committee but at my point is why do we need to approve the three hundred million dollars sleep or the ability for you all the sleep that much at this point knowing that they're going to be changes if we go ahead and approve it then it seems to me you don't have to come back to the legislature at all and I know we're gonna be limited to our emergency powers. Probably in between now but it seems to me the legislature shouldn't approve that sweep at this time. Why should we be based on what you just said well the request strictly limits and would give us the authority only to move money over you I trust fund any other use the funding we have to come before you all on request your approval on emergency basis or otherwise the request was made in advance to the full LC into the peer subcommittee as part of the normal process so that we could not only get you all every member not just the the chairs approval on this if possible but also give you all an opportunity to discuss and debate this issue to be aware of the issue and to give us your input. So just a follow up on that the but if we give you the the three hundred million sweep authority and there are competing interests maybe the legislature believe some of this money should be spent on something else you all can just use this week you don't have to ask for any additional appropriation so if there comes up an issue with schools teachers and staff proposal but I have that many in this body have been pushing I know that doesn't look like it's going to happen this year but I think it should be considered but if we give you the authority then we don't have to hear from you again correct that is correct and the encourage you to keep in mind this is contingent on Congress not giving us an extension and we do anticipate that will happen or should happen but this is really just a plan B. or fall back in the event that we don't get that why not I agree a hundred percent that the extension should be granted I want to be clear about that and I think that newspaper is reporting this morning that that's broken down somehow on the discussion so hopefully hopefully that will happen thank you Mr chairman. Sender sender Elliott you're recognized for a question. Thank you Mr chairman and and part of my concern kind of think about son but senator bond said but without repeating all of that out just do a one interesting here if we are doing this week and we are going to use it a particular way and we don't have any chance to have a say about that I want to have a say right now about the weather not I think this is a good idea we've been talking and we pray for all this time with about our schools and it is been made very evident from the people that we are required to do what they have to do put themselves in harm's way it harms we keep our schools open what I'm hearing time and time again as they don't have the equipment they need to be safe and I believe of the folks who were in the schools were saying I don't have this so. Is there any reason that OR is there any way you could kind of assure me that there is that there is money someplace else that could help these folks have the quickness they need to be safe that's not in the care is possibly in in the carrots funds that you're talking about sweeping up should I be content that that could be what will be addressed someplace close that that proposal has been I can even say better known to suspend on the agenda for some time is that something you would include if you're going to have a complete suite I I know that is something the department education very aware of the need and it's something that they've been assessing regularly that issue has been raised by the steering committee which forces the body delegated with the responsibility of raising issues and and proposing things they voted not to take it up at the last meeting now I can't say that that will that will continue to be their decision I know that additional meetings are planned for the steering committee but this is really and presented to you all so that we could get your input and so that we could get the ideas like the one you're presenting here which is of course what we don't get we present them on an emergency basis well I I know that what that item is but on the on the committee more than just one meeting and I so I don't have any faith at this point that you know the steering committee is going to do anything with that that's why I am giving my input to just to say is that something you could sit before send the clear that we will make safety for the folks who are keeping our schools open a priority for what they don't have right now because no matter what the education department is saying that's not what the folks on the ground out there who are doing the work to say I understand completely and and I did just get a note from Greg Rogers a department education who did say that there was some set aside funds for PP for public schools as I understand it be happy to get with you and provide that. Additional information can Greg Rogers tell us how much that is and whether or not if it's just been set aside one they don't already have it because otherwise it would be a problem for me is great here I don't believe so but I'll get with him to get that information to you. If the information that he gets to us is not satisfactory and will not cover the needs out there. Will you declare that this if we give you this by permission for this sweet that we will include making sure the folks are keeping our schools open as we have the clear they must be open they'll have what they need to be safe I will certainly pass that along to those who have the authority to make that decision. All right I think they permit without keep on hearing I guess thank you. Thank you Mr boilerplate I appreciate you. Centerview recognized for a question thank you Mr chair thank you Mr blade follow up on your comments about I'm way over here follow up on your comments about we have some limitations about how much we can sweep into the unemployment trust fund I think I heard you say that can you elaborate that's new information that has never been presented to us it was a new information to me as well so the cares Act money was given to us to respond to covert nineteen and it was limited to that purpose. We have of course distributed a fair amount of money out of the U. I trust fund over the last three months and I think that I had in my head and I think a lot of us did that all of that funding was somehow another related to cope nineteen. However some of it is estimated to not necessarily be coded nineteen and regardless we already moved a hundred and sixty five million dollars over there so the total amount that the trust fund has paid out is the two hundred and three hundred million issue which a hundred seventy five million of which we've already paid so of. What we're looking at is about a hundred million dollars more would fully of refund for all the. The planters yes the trust fund for everything that they paid out. After that any additional funding would not be an allowable use of Kerr's Act monies I understand. Well I okay that's interesting to me we and then in the steering task force were very clear that I think you know we understand that small businesses are going to get hit hard from the second quarter from twenty twenty unemployment's numbers from the second quarter of this this year because we as a government forced these businesses to shut down. And so you know they're they're tab coming up January twenty twenty one is going to be incredibly high and some businesses small business are going to have a very difficult time pain that and so that was the purpose and the intention of putting more money into the unemployment trust fund to prevent those small businesses that our government said you have to shut down like great clips and boutiques and Janssen's and all those folks and restaurants they're gonna get hit hard with a high unemployment formula as because of that second quarter unemployment laws that we forced upon them so you know I I guess. That bothers me because again you know we had other things that we were considering and. And I and I my other question is what elaborate more on what can be reimbursed agencies because you know we had a pretty strong debate about how this money was going to be spent and you know the thirty million dollar for cybersecurity software and hardware is that what you're trying to spend the money on. Is that what you're talking about with agency request in this new dynamic here or for reimbursement no ma'am and it and we're we're talking about kind of that contingency plan B. if Congress does not give us the extension so what we're looking at is things that we could do late in the in the in the month when it's clear that Congress will not act and that we could make best use of our existing dollars. The cares Act guidance that we've gotten from the treasury has really changed over since the funding was provided to us there's been publications and faqs and additional information that's come out one of those guidance requirements or or instructions allows the state and local entities to reimburse the for costs that the agencies of incurred in responding to the corona virus in particular for salaries. If you think about the salary costs for some of our agencies corrections being a good one Department of Health is another one. We're huge portions of their workforce have been pulled off of whatever it is they they were supposed to be doing or they were budget try you can offset it with the money correct. That's what we did with the cities and the counties that's it it's the exact same thing okay and so if we're looking at that that could be a way to really put those agencies back on a better footing of the funding would flow would basically reimburse them for money that they've already spent if they wanted to spend that money they would need additional appropriations so we would need to come back before you all but it would be a way that we could move that money over. Help the state going forward and do so kind of on the eleventh hour if Congress doesn't act so and and that appropriation power is going to have to be based on an emergency appropriation well to the reimbursement of the agencies for costs that they've already incurred would not require appropriation so we would not be coming to you all for an emergency appropriation the agencies would need additional appropriation if they wanted to spend that money and so we would be coming to you all at some point in the future in the event that that happens but merely taking that money from one fund within treasury and transferring it over to another agency within trade treasury would not require appropriation at this time. Okay okay and then I guess Mr Chad finally addressed asked department of education and in there and and maybe to send out to the Legislative Council or to the members of the legislature of the report on all the federal money that's been brought to towards or that has been sent and from the federal government at that might be helpful because another was direct federal funding that got sent to schools as well so that that report probably should be made available to the members of the of the committee thank you Mr really. Thank you. All right senator Ballenger your next. The manager over senator garner over to your far left Jake So if we appropriate the three million dollars a day and you've made it that you are probably going to come back to us to emergency A. L. C. meeting to appropriate monies for other needs whether it's increased faster hospitals when there's other issues that may arise before the end of the year. What would stop you from just bring in the rest of the that money appropriation at that time to be appropriate to the unemployment trust fund rather than doing today whenever we don't know what the numbers may or may not be a weed that is an option we could pursue it's not something we wanted to do because we wanted to have this debate that we're having right now secondarily if we did appropriate the money today and the federal Congress push the deadline back what would stop you from moving every dollar that money into that unemployment trust fund even though we do have extended deadline is there any legal or otherwise things would stop you all for doing that well I don't know if this is legal but the express terms of the letter that we submitted made it clear that in the that Congress does extend that that we would forfeit the appropriation we would not utilize it. Okay I don't know that binding or not okay thank you Mr madam chairwoman it is to me for what it's worth well not. All right of center to Wallace recognized for a question I don't. Senator Wallace. I'm sorry measure. A check on that comment all right excuse me just a minute ladies and to the point of we have trouble seeing appear and to also we're not sitting in assigned seats so when I call you your name the. If it's the wrong one hold your hand up so that I can make a correction to this there we go Senator hammer you're recognized for a question. Thank you madam chair. On the. Would you go on a little deeper on the comment you just made in response to a the senator as far as the the at the end if we don't have congressional approval. And we don't take action in here. Today than that money will be swept swept back is that where you're going with all this well if we don't have a congressional extension on that deadline and we do not have action here today than we would potentially looking be looking at forfeiting the money of which the federal government has given us when we have a an allowable use over the you I trust fund it we would either need to. Come back to you on ask for mercy approval which was just the chairs or we would I guess find another use for to forfeit the funding but what we're hoping to avoid is any kind of misunderstanding or any kind of we're hoping to avoid not taking advantage of your meeting today to have this conversation so that we can lay out for you where we're at going into the year and what we think would be an appropriate use for the funding in the event Congress does not act. The question to the chair please. But your question would be the intent to handle this to the emergency process where the chairs would make the decision or would chair's entertain call in full A. L. C. N. or what with the information's being developed today which which way with the chairs anticipated going. Of all the lands more to Garrity to answer that question. Senator hammer I I think it's going to be a decision by the chairs of the with the limited time between now and December thirtieth the requirement that A. L. C. give sixty days notice prior to calling a meeting and we don't know when to anticipate the request from DFA I can't speak for the chairs but I think the time is limited in having a meeting. All right thank you thank members your. All right of. Represented Dotson. Thank you madam chair Jake I just had a question completely different topic entirely but the business interruption grants that we approved over the last a couple of months ago I'm not sure exactly when which which meeting it was have we received a total yet on how much was applied for and are we looking at. The funding them in. Any additional way if that amount was larger than the the amount that we approved. Elizabeth Smith secretary and inspector general will be here she's chairing the steering committee and she will be able to answer that question a little better. Good morning Elizabeth Smith and steer steering committee chairman for the care that yes we have a number and I believe it's two hundred and thirteen million dollars were requested okay the amount that we had. But if Senate set aside for that program was fifty million I believe Anitta forty seven or eight after we. Administrative expenses the I did get a request from secretary Hearst yesterday or day before she's been watching the numbers coming in and she said if there is a our additional funds she would like for us to consider that but we haven't we will have a proposal for the Committee at work or anything that does that what you need yeah I was just looking to see if there is and and it's a little bit larger than what I was anticipating but yes hopefully you can consider that as a use for some of those additional funds if if we if we do have additional funds left at the end of the year thank you thank you. All right the Representative Wooten you're recognized for a question. Thank you Mr chairman Jack up I think I understand what you're what you're trying to do. The. how much what is the balance that has not been allocated in cares forty one point forty one million okay is that in that three hundred million yes Sir so the report so when we put this request before you all's three weeks before because we were we were trying to plan this all out in the at that time the amount of money that the agencies had and and that's three hundred million was a combination of everything that we hadn't allocated and therefore wasn't spent and everything that we had allocated but which the agencies hadn't spent yet we were really thinking worst case scenario right what we didn't want to do is find ourselves on December thirtieth with agency sitting on money that they would then have to forfeit because they weren't able to to to move the money out at an appropriate time. So. Since that time though those agencies and we've been very aggressive encouraging them to either surrender the money back to that pool that's where that forty one million dollars is from or go ahead and spend it like they have proposed. They've done a pretty good job of that and so I think the report we sent over last night shows that were at forty one point nine million in funding which has not been allocated and another two hundred and five million which has been allocated but is not yet been spent. Follow up if I may madam chairman yup. Go ahead but either way are you going to have to spend the money it if you sweep and bring it in that's not going to lie in the fact that U. K. if Congress doesn't do something or shin and tell you the money still you can't expend that money. After the thirty first at the thirteen you that's right so what we would need to do is the thirtieth is the deadline if Congress doesn't act II and and we've we've developed a plan to put this in place that if they don't act the unemployment insurance trust fund some of the agency's expenses we've talked about those are transactions we can do which are allowed to use the funds would properly expend them for purposes of the cares Act and would make sure that we don't forfeit we don't leave any money on the table. Okay. Then you pull you are you gonna put the money in a sweep okay up and you could end up putting it in the unemployment is that what is that what you're saying if it's not expended in order to be to go ahead and use the money sure so the expenditures for that purpose for unemployment insurance the expenditures that we would be incurring. Would be the expenditures that the insurance unemployment insurance trust fund has made throughout the course of the year which we could reimburse them for use and carriage Act money and that's what we would be doing okay one one more question with very quickly what about the schools relative to the vaccine giving it to the the teachers are providing the teachers as any funding going to be my my superintendents are becoming very concerned because the they haven't really been told what to expect to have us going to be done when it's gonna happen and the they're trying to make plans to deal with their staffing situation is going to be any money for them or do you know of how that's going to be an. I do this to me is it to me the the the in the in the funding but the if I don't know they don't know what to ask for and this moneys go just be swept up and like Senator hammer and others have said that I'm concerned that that it's going to end up being the FAA decision which I don't have a problem with the carriers committees going to be left out and we're giving you all the right to date is is that is that is that a fair assessment well so the decision to move the money over the unemployment insurance is something that we obviously support it's something the governor supports but it's being presented you all today for your approval on that if if you don't give us that approval and obviously that transfer won't happen well. So are you sweeping it into a sweep account or you sweeping it directly into the unemployment it would go into the unemployment trust fund correctly in the air yes Sir good how are you going to extract that if some of the data funding. So the unemployment insurance once the money's put over there it could only be used for the insurance fund purposes so once it's for web it's got all yes Sir. But when when would you do that then on the on the thirtieth the twenty ninth of the thirtieth yes Sir. Thank you madam chairman did you that the you know one thing about the schools relative to the expended I'm afraid I do not but I think that there was a report coming regarding the amount of funding that has been made available to schools and I think Greg Rogers a department education is working on getting some more information okay thank you thank you madam chairman. You're welcome. The center Chesterfield thank you Mr chair. I believe that we need that we need to be careful about the employment because I don't want people to be without food clothing and shelter but I am concerned number one about schools because we requiring teachers to do not only teach during the course of the day but to teach. Extra duty as well and I'm not sure that we appreciative of what the sacrifices that they're making also concerned about the fact that we I don't know if we have the expended anything extra to provide healthcare to minority communities other than the moneys we expended for the Marshallese community and the Latino community in northwest Arkansas what have we done for the nineteen and African American communities. There are not enough in Northwest Arkansas. A. I'm afraid I don't know the answer is committed person is the. Yes senator Chesterfield I'll speak to that the Northwest Arkansas. The work that they performed did include Latino population across the state they were not able to include the Marshallese across the state because of the language barrier and because of the inability to reach them by telephone mostly a lot of the interactions that they had to do with the Marshallese was in person and out with community with the community itself there's also a community outreach a grant that was presented by the Department of Human Services and they are working specifically with minority populations on that. How much money has been expended for that gosh I am sorry I don't have that on the top of my head I'm still getting request even though I don't represent all parts of the state I'm getting request for minority communities across this state certainly wondering what is there and how do they access it yes they can have more availability yes I believe the community outreach grant was five million but also all of the city's. Across the state of Arkansas and all of the counties across the state of Arkansas received funding directly so that they could assist with the community and with the need with and those particular communities but let me tell you what my concern is with that having worked with some small town mayors you have to have expended money in order to get money if you don't have money in the first place you can't get access to the money this made available so we did have an op we do have an opportunity for the counties and cities to apply without reimbursement if they were unable to do so there's a process three D. F. and a for them to do that and we make sure that they knew about that and so if you have someone that's been in that situation I'd be happy to talk to them myself for that was one of the things that I was very concerned about when we address this issue enemy just say I don't want to lose the money but I what with trepidation around us giving this much authority outside of legislative review thank you. Me okay. You've already had one question on this group right and I just have a quick question I'm hoping will come back to you I've got a large queue if you would jump back in. Senator hammer you're recognized okay. Bishop. Represented Ladyman you're recognized. Thank you Mr chair. A. You know we want to make sure that our schools are funded our our minority communities are taken care of in our frontline hospital workers are also taking care of but we also have to think about our small businesses and as senator Irvin said earlier we had small businesses come for public health who if not given the proper funds to cover this large unemployment that they will have to pay in the first quarter of next year. These businesses will go under. So we have to make sure that there's adequate funds there to take care of this cost that these businesses had no voice in in where they got this cost or not and they're gonna have to come up with that money these are small businesses that very little income but there's many of them throughout the state. So we have to make sure that there's adequate funds in this unemployment account to take care of that large bills coming in in the first quarter or many of these small businesses will go under so we want to allocate funds to education to a minorities but let me just tell you you don't kill the golden goose or they quit laying the golden eggs the funds that we allocate come from the small businesses seventy or eighty percent of our businesses in the state our small businesses if they shut down we will be talking about a lot less money to allocate here so make sure that we give them their adequate funding. So it's it's not. just that we can give it to the schools we've got to figure out how can we adequately protect of the small businesses so thank you Mr. Sugarman recognized thank you quick question in case we need to use the money for bed capacity and increasing that back capacity Mr Billy do we have an appropriation for that or are you bringing that before us up for would be needed. My review of the health department appropriation was. Pretty quick but I don't think we have a specific expressed appropriation laid out there now they may disagree but what I wanted to do was and and we don't have a specific plan or project in place right now to do that or I would have brought that request you all today. My intent on bringing that up was just to make the body aware that an emergency request for appropriation to spend additional cares Act money may be presented between now and the thirtieth given the direction of the the viruses taking here in the state so is just to be aware that that that is an option we're looking at and that we may be bringing that to you on the future well I I would feel. Mister chair I mean I do have the print out if anybody wants to see it the most recent print out of expenditures from the cares committee report here but I I would feel more comfortable having to appropriations one for this week for you why and one for hospital bed capacity and I wouldn't I would feel more comfortable today approving that as a body so that you know our priorities if that be the will of this body that's my my priority is always been for the people on the front lines always for those doctors and nurses and the staff people that are in our hospitals in our nursing homes and if we need an appropriation to increase bed capacity because the reports this week have been you know alarming at the hospital Medicaid subcommittee yesterday had reports from the hospital we are at a ninety six point five percent occupancy rate on I. see you beds that's alarming and so I know and keeping track we have had equipment sent to us for makeshift temporary morgues and things like that you a mass as I reported that they are out of out of space in that cap category which I hate to even bring up but that's the reality of the situation so if we need an appropriation to spend that cares money on bad capacity and open up more beds and I see use then that to me is a number one priority and my yup small businesses are also one of my second priorities as well but. I'm just wanted to get an answer on that because I think that would be probably the best thing to do for this body to speak on that and to vote on that if that be the case. Q. Mister chair. And if Mister Blake answer that would appreciate it so senator Oxford by staff as you were talking we would have to basically send appropriation with an excess amount. A and I hope I'm making sense by using the words excess amount yes so that they would have lead way to fulfill those needs if we did it here today I thank Mr bleeds problem was is he want to do it for an exact amount and the so he was looking at coming through an emergency it and I don't know that we need to make a request at all frankly but I was in my apology senator Reid I'm not sure I heard your question I was confirming with the CFO to for the department of health to see if we can come up with a ballpark figure on how much appropriation would be appropriate for a bed the tech an expansion of that capacity well that's that's that is a motion I would make right now is that we would have the ability to have a ballpark appropriation for unemployment trust fund so that you can sweep that money at the end of the year and and a a ballpark appropriation as to the words of the Mister chair Mister ever present Wardlaw event except the preparation amount to be able to spend that money on increase bed capacity in our hospitals and nursing homes and other centers that are being utilized for that and if we need to spend the money on that we've opened up ambulatory surgery centers federal government has waived that requirement so that they can be utilized for back capacity that that's what I personally would like to vote on today and I think that the more appropriate path of being able to give you our input. And I would build feel comfortable more comfortable moving in that direction and I think it alleviate the pressure off the emergency powers and those folks that are going to have to make that decision. The only that that I think that would be something we would welcome the only caveat I'd say is that we haven't had a chance to present anything to the steering committee so it would be contingent upon their review and approval as well just to follow procedure and proper. Okay center to I have a lot of people in the queue yes I come back at that point thank you will take your motion but if you would like when we come back to that motion can you have some amounts yes I will thank you thank you. Okay Senator Chesterman take your information and I've got a couple members that just has a distinguished point because I I'm concerned are you saying is Mr bleed saying that if this council votes to approve the motion that senator that the senator has proposed senator being is proposed it would have to go to carers we don't have final authority over these. If we wanted in this is the process that was set up for the use of Kerr's Act money the the process would be for this body to prove the appropriation the authority to spend the money the money itself that would come from the cares of holding fund and the process that would set up way back in February March was the steering committee would oversee or recommend those release of funds but this this body being the final arbiter during the interim if we say this is the way it's supposed to be spending you saying that that's not gonna happen I'm I'm I'm trying to understand Mister and I'm not in the labor we typically bring issues to the steering committee get their initial approval and then bring them to you all for appropriation this is my only point saying that is that we haven't had a chance to really present a formal proposal with all the details the. The I's dotted tease crossed to the steering committee so that we would I would like I would want to do that before we exercised any appropriation that shouldn't those stand in the way of any expression by this body to go ahead and make that appropriation available contingent upon that funding only being used for the expansion of bed capacity in the event of the covered emergency requires it. Not making sense to me J. I need to know if this body makes that motion today. It is approved I don't know if it will be. That it can be overturned by the carriers committee or is that. Something that is mandatory for them to carry out center Chesterfield the way the law is written is the cares Committee wood fires those preparations to council for final action the the actual preparation we are working kinda into readers that today because if any motion passes here today that's not been approved Medicare's Committee they would have to go back to the cares many for approval it takes both bodies to expand those dollars okay so we are not the final arbiter. No in all right thank you thank you. Represented gray you're recognized for a question. Thank you Mr chair. M.. Hello I feel like we've made is a little bit or a lot more difficult than it should have been because today's December the eighteenth December thirty is when we have to spend that money we have twelve days. To make sure that we don't leave money on the table and so unless we planned to call another meeting now you know Christmas the core of what the maybe the day after Christmas and there is no way that it's going to come back to this body which means that anything additional we have today would be done to emergency with the chair signing off on it. So I understand the need for that you know what sweet the have it available to sweet anything additional that we want today between now and the end would come to the steering committee work is that correct we can do the steering committee to be approved yes ma'am all right and any additional appropriation that needed because of that would then be done through emergency and and the one thing high understand Senator Irvin said the motion that she made and the intent behind it but also from a functional perspective I think you used the bed capacity just as an example although it probably wasn't the best example to use them there's no possible way that we could actually expanded capacity with carrots Act funding in the next twelve days and it's not a space problem it's a staff problem and and so the intent is good but functionally I don't really see how. We could actually do that said I mean having been on the steering committee and you guys can tell I'm nervous I don't usually get nervous this one's making me nervous but haven't been on that steering committee this whole time knowing where we're at and how we've been I would hope we would meet at least once or twice more if not for the next couple weeks I think it's prudent of us to make sure that that the businesses of Arkansas don't have. Huge amounts of money that they're fixing to have Dave in this unemployment insurance I'll be offered some in the ballpark of hundreds of thousands of dollars and that's that's going to be David this is going to be detrimental to our to our businesses throughout the state if we don't do this I just more than anything I think I'm just trying to figure out why we're making this so difficult and that we need to make sure we don't leave any money on the table and although I appreciate senator Durbin's intent I don't think that that's necessarily Anything that we could actually functionally David the next twelve days thank you Mr chair. All right the represented Bentley you're recognized for a question. Should be on. At the are you in C. twenty nine. A. If you are limited okay thank you I would like a response from a the folks at the table from representing gray's comments before I make my question please. Thank you I can respond to her comment first and the. Department of Human Services received a fifty million dollar grant just recently that would go not grant that a fifty million dollars for hospitals and nursing homes to be utilized for cares Act needs I mean Kirk coronavirus needs so they can utilize those dollars if they if they need to expand their back capacity they can use those dollars for that they also are working I think to incentivize employing the right amount of staff that's one of the reasons for that so there is there has been some consent to them just just recently over the last two weeks so I just wanna make sure of that thank you Jake did you have anyone at as well this represents gray's correct in saying the bed capacity was just an example my intent on that was really to make you aware that we are. Wrestling with a difficult situation something that were may require additional funding and may require us to move very quickly on that thank you pass is one of the ideas that the governor's winners Task Force has discussed and it's an area where although represent gray's absolutely correct we're we're gonna have a hard time logistically doing it it may be an area where we can spend additional money to do it and maybe something that we want to go ahead and get started on as early as possible in the event that we we do come up with a plan for it not necessarily have to wait until a LC meets again so it could potentially be an emergency request that we bring to you all. Okay can you be more specific you just had a regular put out there by some outstanding things was different agencies can you be specific of what you're talking about some agencies what are some specific in his right mind some money when they need that money for your reimbursable costs so It one of the guidance one of the things that the the treasury said we can do with the cares Act money is reimburse for the salaries of public health and safety employees whose jobs have been substantially affected by the code pandemic what do you think about the effect that code is had for example on our department of corrections we're we've had repeated it very big outbreaks and everybody in that building has had to expose themselves has had a mascot has had to go through new training probably take on new duties and responsibilities those payroll costs are potentially reimbursable with cares Act money that's a fair amount of money that we could if if Congress does not act transfer over to the department of corrections we could use to something similar for department of health there's several agencies that have staff for payroll costs that could be reimbursed that funding that is money that the agencies could operate on going forward and they could help the state going forward and it would help us avoid forfeiting funding at the at the last moment so that's really what we're looking at. Okay so I just wanna specifically saying. As a small business owner and being a voice for small business owners across the state we have not received because of money by the department of health said this the schools of that money directly federally there's been a lot of money that's been spent that the small businesses that not received if if we go under because we have you know we can't pay these unemployment talk because it's considers occurred the outcome of the state moving forward so I think we need to move for with the plan with head and his last miss which is a really concerning me something we need to move for with the planet with the promised to put that money into the trust fund this is voicing my opinion thank you. Okay Committee after conferring with leadership and confirm my co chair we have decided that we will call a later council meeting on December twenty ninth to handle all change items or new appropriations this needed to be. If Congress does not extend the deadline if they extend the deadline all these things could be handled the first week of the session and budget are there any objections to this call. To see a nine. let's move on third report and we'll plan on having all these questions answered on the twenty ninth as need be. Are there any other questions for the peer report so. Represented Dotson you have a question. Yes Mr does that mean we're going to be removing the three hundred million dollar request from the peer report. No Sir. No Sir is we talked about earlier it if they. One the lower that request that's up to D. F. and I. four if we're going to have another meeting. Potentially to consider other requests. Or is that meeting only contingent upon something changes that the meeting was only depending on something changing from where we are today okay thank you. I have a motion I need a second. I have a second all those in favor say aye. All opposed ayes have it the airport has been adopted. So. With that final paper will go to the review subcommittee Senator Flippo you're recognized. Prove that yeah motion of a sister chair hello I'm sorry. Yes ma'am so we we win at I just wanna make sure that we are clear that we did approve the report with the appropriation for you I sleep is that correct yes ma'am okay that's fine and I support the decision by the chair to meet again on December twenty eight thank you thank you. Senator Flippo. Are you ready for your report on review. You're recognized thank Mr the review subcommittee met on Tuesday and reviewed the methods of finance grants and services contracts no lives were held which is somewhat unusual how about moving adoption of the report. Be happy to make that motion that we adopt a motion I got a second Senator Rice all those all those in favor say aye All opposed us have it is with that we'll move on to the you know for a person Committee Senator Wallace. You are recognized. Good morning Mr chairman sure in the personal subcommittee of A. L. C. met on Tuesday December the fifteenth twenty twenty the Committee received discussed a very supportive required no action listed as items one through five on the report the Committee also review the actionable items listed as item six through eleven and we had discussion on item twelve I'll be happy to take any questions and I moved for adoption the board at the proper time. As proper motion drive second. I have a second all those in favor say aye. Oppose the eyes have it. Thank you senator reports adapted Senator Elliot you're recognized for the lottery oversight. I thank you Mr chair of the lottery oversight subcommittee met Thursday Thursday December seventeenth at two thirty I and a big Medicaid and the subcommittee heard testimony regarding the following item recommendations for the Arkansas academic challenge scholarship program with testimony from Dr Maria Markham director of Arkansas division of higher ed and the subcommittee review the following reports the department of finance and administration office of the Arkansas lottery and secondly approval of the A. L. C. lottery oversight subcommittee annual report to the Arkansas Legislative Council the final report is attached to the two are the minutes I think respectfully submitted Joyce Elliott and chair and Representative Lori Russian chair I move the adoption of the report Mister chair. Thank you senator Dr second. I have a second. All those in favor say aye. Oppose the eyes have it that will move to the board adopted will move on to the highway subcommittee Representative of center Dismang. Senator you're recognized thank you Mr chairman the Highway Commission review the battery subcommittee met on Wednesday to subcommittee receiving discuss reports from the Department transportation report on including a report on the annual expenditure and revenues from additional wholesale sales tax on fuel efficient vehicle registration fees on hybrid electric vehicles and casino gaming receipts restricted reserve fund transfers report on congested. Routes crash history expenditures and how we system mileage report of proposed legislation for the regular session and report on the progress the construction projects that exceed ten million dollars I move for adoption the report Director tutor was not it will be here today but I did speak to Randy Orton earlier he was hoping that we would have some questions thank you. See non do I have a second for the proper motion. I have a second all those in favor say aye. Opposed us have it poured up did so with that we'll move on to senator hammer for the Arkansas market place. Senator you're recognized thank you Mr chair the Arkansas health insurance marketplace oversight subcommittee met on December seventh at ten AM to discuss the current Roman trends over the last few years in the market places subcommittee also discussed how Arkansas continues to have the lowest healthcare insurance costs in the region and respectfully submitted on behalf of co chair Deborah Ferguson myself and with that make a motion to accept Mr. As proper motion to a second. I have a second all those in favor say aye. All opposed seven the report is adopted we'll go to the occupational license center Irvine you're recognized. Thank you the occupational licensing review subcommittee met Tuesday December the fifteenth we discussed and adopted the final report this report encompasses the work completed by the subcommittee to review and to make recommendations regarding occupational authorizations within the first of the six groups of occupational entities for review under Act as six hundred of twenty nineteen. I make a motion to submit the final report today to the Arkansas Legislative Council and included in the report are at potential draft legislation that you'll see before the body next session. That's proper motion the second. Five seconds all those in favor say aye. Our first ayes have it the door a report adopted. With that I'm going to recognize of Mr Speaker four point of personal privilege. It's a button. The Speaker you are recognized. Yeah. Thank you Mr chairman of members at thank you for your an indulgence today it's it's a bitter sweet day for all of us in the House as our long time assistant to the Speaker and assistant coordinator Kaye Donham is retiring after thirty five years of service to the house of representatives and let me just say that she has been an invaluable asset to the house I know during my time as Speaker and particularly in leading up to each session that we've had it's amazing what all goes into planning a session and she has checklist after checklist of things that have to happen that I mean it's it's just unbelievable and I know I drove her crazy because it's no surprise to you all that even on the very small details I'm very deliberate and it she but she always made sure that we we were knew what we were doing that we were well planned well organized and we're going to there's certainly today invite you to stop by the house and tell her goodbye but also wanted the opportunity to recognize he heard here publicly and also alongside our friends from the Senate so if you'll join me in congratulating Kaye Donham on her retirement from the house records. Thank you Miss K. you are unbelievable. With that we'll move on to the special subcommittee on data sharing of Senator English you're recognized thank you the special subcommittee on data sharing and data driven decision making met on Monday December fourteenth at twelve thirty visor to the subcommittee approved the ALC data sharing and data driven decision making final report of its recommendations as required by the Arkansas Legislative Council I move that we adopt this report. That's proper motion drive second. I have a second all those in favor say aye. All opposed us have it. So that report is adopted. Representative Douglas you're recognized for your report. I thank you Mr chair the committees on agriculture forestry and economic development in compliance with facts six seventy one of two thousand nineteen met on September the tenth two thousand nineteen and heard reports from agencies and individuals involved in the ATV tourism industry. And believe it or not while people that profited from ATV tourism more in favor of expanding and supporting the promotion of buy two very terrorism there were private property owners that were in opposition up that concludes my report and I moved for adoption. Thank. Does the proper motion drive second. I have a second all those in favor say aye. The opposed Is have it reported opted so members with that we'll move on to G. one. Under G. one I need a motion to review. I have a motion the second. I have a second all those in favor say aye. All opposed us have it. A report is reviewed for us moved down to four C. I need a motion to approve these order grants that were Requested. I have a motion. Second. I have a second all those in favor say aye. All opposed us have it so with that we'll move on to six and under number six there's a typo under the first letter received by BLR number five grants there is actually a second letter with two more grant so there are seven all seven are listed there through a through G. I need a motion to approve those grants I have a motion the second of second all those in favor say aye. All opposed us have it so this moved down to number ten. Under parks and tourism these are grants that constitutional officers were awarded to I'll need a motion to approve those. motion drive second. I have a second all those in favor say aye. Of first. Is have it with that those grants are approved will move down to J.. And we're here a Update on on and on unemployment claims from Dr Childress. But your issue would introduce yourself a record and you're recognized together for. Good morning strays charters Director of the Division of work for services. So if you will please of look to your. Power point presentation that was shared with you or I think it's on the screens as well. I will go through that. Today is an update. So I don't know why the headers are not showing. The header on this one is local office staffing on this slide. Mandatory we can work has been discontinued our local offices due to the decline and we can call volume it is a voluntary it's on voluntary basis now we do have a schedule we reduced it last Saturday and will be reducing again this Saturday based on the number of calls we're still taking volunteers in order to of to cover the calls that are coming in on Saturday there are very few but we know that our busiest day is on Monday and so we want to make sure that we cover those calls on Saturday and take care of that as well as working on other issues of that are in the local offices that they can work on when the phones are not ringing for Christmas are data yes offices will be closed on Christmas Eve and Christmas day of course and then also on the day after Christmas our call center will be closed sars annual leave and carry over our local office staff they've worked weekends and and have been designated as essential and unable to take vacation will be allowed to carry over those leave hours in excess of two forty a we are working currently with the office of personnel management to determine which individuals this will apply to most of the local office staff if not all will get to carry over there two hundred forty a carry over their hours in excess of two hundred and forty and that information was required to be submitted to opium I believe it was yesterday so that's being reviewed as we speak. The next slide is. These are also. Okay the next slide is titled in identity theft fraud claims so you will say that the U. R. fraud claims that when we presented this to you on eleven fourteen or thirty thousand six sixty nine as of today thirty two day or two thirty two thousand five hundred and sixty two rise of twelve twelve the P. these are self reported an employer reported fraud claims P. U. a fraud claims a self reported because of in most cases an employer is not involved in this the rights for individuals that are self employed. So are fraud claims in P. ray were fifteen twenty and and as of twelve twelve there were eight one thousand eight hundred seventeen for total claims of as of today thirty four thousand four sixty nine. You'll see there the dollar amount of fraudulent benefits paid out and then also the amount recovered. The next slide the title as PI claims flagged for fraud review. So fifty nine thousand seven hundred and thirty nine P. U. I. claims are flat our flag for review based on a date of yes Is fraud detection algorithms so we just to sit beginning December fourth each flag claim that received a letter in an email requiring them to log in to an ID verification site which captures a picture of the back of their driver's license so far we have eight percent that it responded in two thousand five hundred fourteen claims have been released for processing out of that fifty nine thousand seven hundred and thirty nine. This is of this is the low response confirms our suspicion that the majority of these flag claims are likely fraudulent this is in line with the ID verification of ants that we held throughout the state in August where individuals were asked to. Present their ID in person to events that we had across the state and our response right there was also very low again confirming our suspicion that most of these are fraudulent or they're they've used addresses that are not their address the climate to do not provide an into identification with team within ten days will have their claim deactivated we will keep the claim we will still have it in our system because we will need it to further investigation but it will not be in the in the fraud status. The next slide the title as you I and P. U. A. claims pending adjudication and is Jim Hudson spoke last month what we're saying is that you know the the tide is just moving so we first had you know our initial of backlog was in claims obviously when people were filing claims it and uh astronomical of amount then now and now we're saying these claims and adjudication and. And thanks to that is important to note is this is this item at the bottom claims cleared and issues cleared for each claim there are multiple issues so some of you I've actually spoken to in person about a claimant and the issues that are that are Part of their claim and there and the adjudication process we're we're doing discovery so a claim may be energy to Cason because of multiple reasons. a lot of times it has to do we just not falling in time a lot of times it has to do with the separation issue where the employer reports one thing and the claimant report something else so in the past all of these were handled in our local office they were put in an air Q. and then the local office identified those. But obviously that was when we didn't have the volume of claims that we have today our local offices are working with clients a face to face and addressing their needs and then also they're working the call center so these claims are going straight to adjudication we do plan on putting and stops after the first of the year which means they will stop in the local office for that local office those local offices to started dressing some of these issues so that we can. Keep them from going to adjudication they'll be handled right there in the local office but as of all also explain these in these issues have to be looked at and they have to be resolved and determine whether the individual is eligible or not for unemployment and what we're finding now which I know a lot of you're getting the calls because you're sending them to me and to our office of which is what we've asked you to do that a lot of the calls and the emails an hour from individuals that that are not eligible for unemployment you have to be in have been employed to be eligible for unemployment and we're finding that some are applying which we still have to address every single claim summer applying and they don't have wages or they only had wages for a week or two and so they don't have enough wages to set up a claim so we're at the point now where we have individuals that that we're sending and suggesting that the ID of six services through DHS because that's probably where they would be eligible for benefits. The next slide a toss about some of the things that I've already addressed that it's fact intensive and assess the tidings supplemental information from the claimant and the employer must claims have multiple issues I'm so adding staff to claim adjudication but it takes months to hire and someone is proficient and claims adjudication because they have to know about unemployment so they have to know what what to look for and how to address those issues read Ebeling our local offices to resolve some issues without the involvement of claim adjudication adjudicators and will begin and ramped that up after the first of the year after we have a quarter change so the end of a quarter where a lot of claimants there where their claims will will expire or exhaust all their benefits process streamlining the documentation is required to close the claim and then we have a great that she that's processing supplemental documents so when the employer sends in their documentation and the claim that may send in documentation then we are we have to image that and we have a company that does that for us within the all of those images have to be attached to the file for the claimant so they will have those when we when it reaches adjudication and or the appeals process so we have a group that we have moved into just doing that process as far as the is moving the images into the file. The next slide the title as new hire update so steps we're taking to address the judicata in an appeals backlog recreates the increasing our judicata and staff of two thirty three we expect those to be filled by the end of December our appeals tribunal staff will increase from fourteen to forty six and then our board of review staff will increase from eight to eighteen aware were saying the the claims now is in adjudication and obviously an appeal at the appeals tribunal we know that that will increase and and then reach the board of review as well we are working tirelessly to fill these positions are we are we have advertised we've advertised we have some of our positions that have no end date so we accept applications all throughout the year we are working with the new system called A. R. careers and so all of the applicants that have applied now in in in the system a new a new Hey were up personnel system application system called A. R. careers and wall when it's perfected it will be an improvement over our our past A. R. jobs site right now it still has some Kinks in it so we're working through those in its it's requiring us to to in some cases take paper applications so that we can try to get these of positions reviewed our applicants reviewed and then set up for interviews but this is something obviously we know we need but it's a it is a a difficult and long process it's my understanding that we have a lot of positions that are That are open right now and state government and we're also seeing a lot of our businesses that are advertising for positions and have openings but people aren't applying so we are doing our best to try to get as many applicants as possible reaching out even to the law school in order to to encourage those individuals to do internships with the so that they can work in our areas of G. adjudication and appeals so I'll be glad to take any questions that that you have We we do have a few Senator Johnson you're recognized for first question. Thank you Mr chair Dr elders. One day ten days ago I got five thank you received it yet I got tired of Philly at the envelopes I just asked the Senate staff to Fordham to you unopened and I'm probably not. On the Hiestand of it but I'm certainly not on the lowest and I can't help but think that. Even if just to a small number of these fall through the cracks slip through get their money that this is costing us a lot and course you heard earlier discussion about dealing with trust fund and all that of. Is there a mechanism and are you pursuing prosecutions on these I just feel like if we don't we may be seeing this elevated to a a high art there may very well be professional computerized fraudsters that have done this I wonder about I call it ballot harvesting check harvesting where they are they could catch they pull the letter out of my mailbox before I see it and fill out some fraudulent in the installation I did take my dog for a walk around the property make sure someone was living there that I didn't know about but this if it was just a little bit I'd say well that's just you know frictional problem but this is obviously a lot of fraud what is eighty or have you pursued any prosecutions yet and B. do you need legislation to authorize further prosecutions on this because that you have just the volume of this is a shock to me. Senator Johnson thank you for your question and I will say that that you reported those I'm sure there are others that have had that many claims at at one address And just have not reported them to us so I appreciate you for for bringing that to our attention because then we can immediately stop those claims and in most cases no benefits have been paid out we are working with the inspector general we are working with the F. B. I. we are working with the state police we are working with you know all of federal agencies that and and state agencies on the fraudulent claims a no there is to my knowledge there's been no prosecution because as the of an agent from the FBI told me that you know they're looking at at the rings they're looking at the the ones that are filing in mass quantities they're investigating those in there have been some a discovery of or A charges filed in in a couple of. Circumstances are cases in Arkansas but on a large scale to my knowledge they're not to that point yet as far as is there is there legislation that's needed now we have the we have the sufficient legislation at the state and the federal level it's just that is a long process in order to get all the information and to identify of the individuals so if they have if they use an address that's not there's obviously the mails going to go to that address but I can still access their account online and then if they set up a fraudulent bank account or a bank account that is that is The foster is set up obviously we aren't aware of that unless the bank identifies it or it's part of our we do have a a a a verification process in place where we are I have identified those banks that are thought to be of of. Online accounts only accept or a and we are we are also of working with those those banks and and our local banks as well. Okay but thank you it's great answered thank you very much Dr Childress thank you Mister thank you. Represented gray here recognize. Thank you Mr chairman. I'm over to your right moving saving thank you M. thank you my question was about about workers comp I'm starting to get some reports of businesses workers comp. Policies getting canceled for next year due to their excess claims thirty what we do is a state to make sure that these people are able to get the coverage that they need. That would be a question for workers comp Commission so I'm not of. Able to speak to that question but I'm sure that someone's listening and will respond to your question thank you thank you. Senator garner you're recognized. Thank measurement first recommend you and Alicia for every time I send something you you get on it very quickly for people unemployment and I know that it's hard to when there's so much inundated but the main issue I'm seeing now is in is something you mention your presentation with the appeals process and it seems like that people are being hung up on that without really a answer resolve for an extended period of time that's the number one issue I keep hearing from over and over Hey I'm not didn't work one way or the other I'm not getting a justification for why it's not going forward can you speak more on Expedia a net understand which sets on the people may not qualify there might be issues with their employer I think it people answer quicker usually reserved help them move forward if they're going to find another way to make a get money or doing something else can you can you speak on a little bit more. I yes as far as the the appeals process once the determination is made then that individual has the option to appeal to the appeals tribunal and so they would submit a request to the appeals trap tribunal to look at their determination and then to make a decision on on that on that claimant what's the average time right now. Between some might fall in that appeal against decision. A fourteen to sixteen weeks. So in order for us to to do just here to we have hearing officers for all of the all of the clients so all of the hearings are set up and that individual that is notified of their hearing date and in between filing their their appeal and the hearing date is when you're hearing from the most likely because they want to you know they want it to be heard immediately but obviously just like an adjudication we have an aging schedule so it's that those that have been submitted were hearing those and we're adding staff to our appeals tribunal but again like I said earlier that takes time and it takes training and for someone to to hear that case they have to know unemployment insurance law. So there is as the the last time I checked it was fourteen to sixteen weeks. Yes ma'am thank you is just a very long time for these people come to be hung in either and I understand why it has to be that way but anything we can do I can do to help expiate that I would be very open to that thank you Mr chairman for endorsement thank you in subdivision I've met and talked throughout this week about an issue that I've noticed in my district and that issue is is that a lot of these folks on similar lines C. N. A.'s different places where they have to be replaced whether on quarantine are being laid off but on their form that comes to you guys we're seeing the check box in the fired section. in Arkansas right to work states I mean that's that's a fair place. But shouldn't we get a message out to our employers because we have. Done took an action or taking action in this committee to take those released a way where it doesn't penalize those employers so I listen your slideshow not open you mentioned that can you talk to that for second and how do we get that message out to those employers to stop that from happening because that's stopping up Our judicata in process right or wrong. I don't know that it's right or wrong as far as the way that they respond obviously the that's the employers right to to and that's what's considered in when they're filed their claim is in adjudication or appeals but I will say that after we've visited on Tuesday I did send that information in your and your request and suggestion to are you a staff so we are working on that and and working to notify employers of you know of the ability to one either complete those electronically or when they send them in and to know what their options are as you suggested when there's an individual where there's a unusual circumstance which the one that you described is where they're and quarantine of they had to have to fill that position and so is that employer able to use the family first coronavirus response act for those two weeks or are they just letting them go for allowing them and then have to replace that person which means they're paying for of the individual and that song quarantine or that individuals using sick leave or they're using family first coronavirus response act tax credit option a and having to hire someone to fill those shoes of that city and I understand I understood at on Tuesday and understand today of the importance of that and having our employers of the in the employer response is important in order to one get the benefits to these individuals that can receive them and then also to keep it from going to judicata so I followed up on that I don't have I don't have any any of anything of. Information that I can give you at this time but I'll be glad to share with you once we get a. Communication plan in place Senator Elliot you're recognized thank you I I just want to get a clarification of for all the reasons that somebody might not be at work quarantine blood or whatever the case may be. Did you say is that right or is it wrong are you don't know. If I'm quarantine if the employer turns and that I'm fired. Well that's on the employer response and so we don't tell the employer how to respond and that's what I meant with I'm not I can't say if it's right or wrong of as far as if their answer and responses right or wrong it's based on the rules of the coronavirus of families first run of ours response act in that particular circumstance as how that employer responds now of back to the the question earlier by Representative Wardlaw city at posed to me on Tuesday maybe they're putting fired because they think that helps the employee. Rather than you know to get their benefits and that's where I don't know why that what their reasoning is as to as to why they respond the way they do but it was suggested that we might want to give them some some you know hear your options and here's why you might choose this or here's why you might choose this recess this of response when you answer the question as to why this person was separated from employment is it is it not problematic though whether it's right or wrong but true or not true. Yes no right answer yes ma'am Senator Elliott is it true or not true. This is the way date is the way they should respond of but at but as represented Wardlaw pointed out he is hearing that they're right there responding based on you know what the circumstances and what they think might be and might the employer might think is the right answer no I I understand that and but I just think about it in terms of you know the employer and the worker the reason that we might want to be real diligent. Unless there's some overriding reason I don't see right now about just telling the truth because if somebody says I'm fired That have some real implications for me down the road to become a part of my record if that is not the truth that's. Service center okay help me out I will one of the problems is when they click that box fired those people have to go to adjudication yeah and R. judicata and files are backed up extremely of in the upwards of the upper twenty thousand mark. And that's the issue some of those people have been awaiting assistance since April of we asked last month for an aging report we got it and it went back to April and my conversations with Dr Childress and Mister Hudson earlier in the week or we were still looking at some of those people from April and we're at the end of December so what I was wanting was some kind of form of communication out to these employers. To stop that backlog from going to adjudication so that that's the whole point in my statement and the whole point going forward well that's kind of what caught my ear and you know at the beginning because if that's causing a backlog. And it's not not true that's all the more reason seems to to maybe they're on the side of truth so that we don't have these these backlogs that that just it's. Thank you for the clarification. Thank. So senator hammer you're recognized for a question thank you Mr on all the folks that are being hired for the appeals tribunal staff the board review and also the adjudication staff. At some point this thing's going to get under control for all these folks being hired on under the understanding is temporary or how do you plan on handle and that the future. Because we expect the adjudication and appeals based on past experience during the recession for one we expect that these individuals will be employed in the and they have will we will have backlogs in hopefully not an adjudication to this extent but definitely an appeals and board of review for probably a year or two they're not hired on a temporary basis but they are hard based on just like with any federal grant they're hired on of the of the availability of funds so as long as the program is funded and we are receiving claims and we're having to the judicata and and those claims are going through appeals of those individuals will route retain their employment at the point that we don't have funding and we do not have the the volume then those individuals will be released okay the Bill of talent just side bar just listen the conversation will be a lot of talent that we put up on the shelf but I'm not there to be a conversation for the future because I know one of the problems she faced was having to give up so quickly not having the staff trained to the level you need to be trained as far as the number of people so just the a side bar thought the last question would be this on the amount of money that is still on collected that has been identified as fraudulent all that fraudulent money is the result of covert claims not just your normal day to day fraud that you deal with. Senator hammer if you will let me go back to our fraud right prior to the to the pandemic it was almost non existent zero. so these week we we don't have them broke are I don't have in front of me the breakdown of which ones we suspect are covered related and which ones are not but I would suspect that most of them are covered related and have. At our. Your P. where you are and they are covered related and under the laws is there any state you limitation time that you have that or that's going to confine you in going after these individuals in a timely manner because deals may drag out for a while so do you have the latitude to pursue this to the end of the earth if you have to. I don't know the state and federal law pursuing individuals that have fraudulent of that are being charged with fraudulent fraud of unemployment insurance but I'll be glad to get that information to the okay be great I want committee publicly because you and your staff under the circumstances I know it's been a trying time but I want to thank you personally because you have been very attentive to the needs of them brought to you so uh want to recognize you say thank you for that thank you senator hammer thank you Mr. Representable you're recognized for a question you are the one Westerman. Hello hello early giving this information is of the the other breach within your system has as the F. B. have they done any forensics on your computer system others I just don't understand like the comment you just made it was almost non existent before and then all of a sudden we have the pandemic in its just wide over my police department shared with many of the they've got screen after screen after screen of people who've come in and filed in total but how are they getting this information and what is the if the the there there's. Well I won't say well it was going to say about them but go ahead it share. Thank you Representative wouldn't we have we are using all of the tools that are available to us through the through the NASD law our National Association integrity hub and then we've also employed other identity tools that are that are that are reviewing each and every claim and then and then determining which ones of those are suspected fraud and then we're doing these ID verification of dance and the most recent mail out an email that requires them to show their ID part of pandemic every single claimant had to report to a local office and show their ID in addition we had a waiting week so that gave our office time to verify their identification it gave us time to get the claimant time a to go into the local office and show their identification with the of the volume of claims that we had and the and the encouragement to process these claims and get money to the individuals as quickly as possible and with the threat of our local offices are becoming infected with coveted we shut down our offices a to the public even though we had individuals that were coming to our office every day and we were assisting them we were not requiring them to show their ID because that would have even increase the the volume at our local office of people coming to our local office for assistance so not requiring the ID on the front end even though we have required it with random pulls in request individuals to bring in their ID and we will reinstate the ID verification after the first of the year even even then we still have individuals that are following front and. Ointment. And they just they pick an address out of the blue I don't know why they chose senator Johnson's address but they did and then I use that for their claim we did our ID verification of Vance we ask these individuals because that's why they were there why are are all are all six of you living at the same address you know in a sense they did show up to the event they were telling us that that is the address that they use non senator Johnson's case that's not the address that they're using our lives are not living there at least of so what we're finding is individuals are just pulling addresses we've been told that they're also looking in the newspaper to see houses that are for rent and they're using those addresses because they know that no one's living there and again it they can get their information by going to their account online and and they're not worried about where the where the mail is going as long as the the benefits are getting deposited via debit card or to their bank account so so we know that that in this period of time that fraud could have been avoided if we've had required every single person to show their ID like we did before however we know what that would've looked like as far as our offices the lines would have been five times what they were and we would have also delayed benefits to individuals that needed it. So it's just a random. A random choice of theirs but but yes it is it's a There are those groups of the fraudulently doing this on a large scale bases throughout the country yes Sir and I'm hopeful that the the federal authorities and state authorities are are of finding in Arkansas where these exist and will report those to us as quickly as possible and that is being done there are fraud and and a fraud unit within our our agency but you all are putting a stop to the payments as soon as you get notification from someone this guy now or have a claim against yes Sir okay so we we do stop the claim we put it we hold it and then those individuals need to submit of the police report so if it was filed in an individual and I receive it they do need to file a police report and appreciate you asking that question because it is even more critical now than it was a month ago as we're looking at ten ninety nines that will go out to individuals whose name whose client who who had a claim filed on them and benefits were of were distributed we want to make sure that every single person that had a claim filed on them that they reported it to us and it was fraudulent of that they reported to us in that they also submit their police report because we will be working out feverishly over the next couple of months before ten ninety nines go out to make sure that we don't send someone a ten ninety nine that that did report all their information to us however if it's not reported then we don't have the knowledge and we can't stop it. Thank you thank you so with that thank you Dr Richard a report very educational very good members the last item on the agenda was taken up in the peer committee report today that fifty million for unemployment was included in the three hundred so with that see no further business we stand adjourned.