ALC-JBC Budget Hearings (9a-11:30A)

Members would get seats will go and get started. Okay members if you would we're gonna. Russ get be one for now and go to be to. Of B. two is basically federal grants that have been approved throughout the last biennium by The FAA has two findings and tobacco control board has one one so I'm a read all three of them for department of finance administration we have two findings the first one relates to. A misappropriation of nineteen hundred thirty three dollars and the hot springs downtown revenue offices the service Representative of the department of finance administration admitted to removing and destroying a personal check and recording and non existing customer check to conceal the theft. the employee with is subsequently terminated and reimburse the affinity for her portion which was six hundred thirty nine dollars of the Los. The second funding FOR D. F. and A is a different employee at the hot springs our hi eight. Revenue office. Did not follow proper procedures and was her cash drawer was a thousand and one dollars short it was noted that due to lack of the program following the proper protocol that a customer did not pay what they should have paid the employee subsequently reimburse the affinity and retired. This is the two findings from the department of finance and administration. The tobacco control board had one finding. The agency did not properly maintain an aging report for fiscal years ending June thirtieth twenty eighteen and twenty nineteen. Due to problems resulting from a conversion of the legacy system to a new records management system the receivables recorded cannot be reconciled to the amounts reported today if an a and aces. it was do basically to lack of proper internal controls and that's the funding for the tobacco control board. With any questions from the committee on all audit funding. Seeing none will move on to Mr pen and you can start with definite. Thank you Mr chair our first section this is DFA administration shared services this is in the manual to section of your binders on page one hundred and six. This section is the administration shared services section DFA. There are seven total appropriations here. But the first one this is for department of finance and administration this would be the secretary's office. That would be in the bill combining veterans services and revenue services divisions the six below that those are part of the FAA's regulatory division. Which of this was. ACT ninety five of ACT ninety of twenty twenty the combined. The FAA alcohol beverage control administration and enforcement division tobacco control board racing commission medical marijuana commission. And that covers all enforcement of regulatory issues. So we'll start Davis C. on page one hundred six with their appropriation summary there authorized level for FY twenty one is two point five million dollars in for both years the by any of the new biennium that passing for nine point two million an appropriation a six point seven million dollar increase. Our first section all these have changed levels will turn to page one of seven this is the department of finance administration. What would be classified as the secretary's office this is a the state central services fund appropriation that provide for operations of the shared services division of the FAA which provides the if they with assistance in human resources legal and administrative services. The agency's requesting appropriation in the amount of three point nine million for both fiscal years. And the request includes the following changes. And some of the rest for a transfer of positions and related appropriation from multiple divisions within the FAA. They're also asking to transfer appropriation from the FAA management services including four hundred and eighteen thousand operating expenses for at forty one thousand and concentrate all appropriation and hundred fifty four thousand an appropriation from professional fees line items. The agency also requested change this account from a paying account to a state central services fund account is that is their source of funding. The executor commission provides for the agency request along with one position title change in six cross gray that were part at the party dot within personnel. Our next appropriation is on page a hundred and ten. This is the regulatory division this is the enforcement appropriation. This was created by governor's letter in the twenty twenty fiscal session. And group together the enforcement positions of both Arkansas tobacco control and arctic the alcohol beverage control enforcement division. This division combines both of their operations appropriations and is partly funded by general revenue that would come from ABC enforcement operating budget. The agency is requesting two point eight million for both fiscal procure the biennium and general revenue funding in the amount of two point six million for both fiscal years. Agency request include the following they're asking for transfer of positions and appropriations into the regulatory division appropriation. And on page two hundred eleven are also asking for request of ten thousand dollars in overtime personal services matching of two three twenty three hundred dollars for both years. The agency's asking to transfer operating expenses of a hundred seventy five thousand and conference and travel expenses in the amount of twenty five thousand dollars from ABC enforcement state appropriation. And they're also requested to change this from a paying account to miscellaneous agencies fund to account for the general revenue that will be transferred from ABC enforcement. The second recommendation provide for the agency request along with title changes an upgraded positions that were handled personnel that come with an additional sixteen thousand and regular salaries appropriation and six thousand in personal services matching appropriation. Our next appropriation on page a hundred thirteen. This is the sales to minor enforcement cash funded appropriation. The next appropriations are being transferred over from Arkansas tobacco control. This particular preparation as a cash and treasury fund. Made of with funding made available from from a through a grant from the Arkansas department of health and is responsible for executing the sales to minors checks and forcing any violations that result from those tracks. The agency requesting one million dollars for each year the biennium which includes the following transfer positions and appropriations into this new appropriation. Dressing for transfer of two hundred thirty two thousand dollars and operating expenses five thousand dollars for promotional items and seventeen hundred dollars and professional fees from the. Tobacco control sale to minor enforcement appropriation. James is also requesting an additional five thousand in overtime for both years and a hundred thousand dollars in operating expenses for both years. Executor recommendation provide for the agency request along with title changes and upgrades or handling personnel with which comes with additional appropriation in the amount of fifty five thousand regular salaries and twelve thousand seven hundred for personal services matching. Next on paid a hundred fifteen this is the drug control cigarette fire safety appropriation. A funded by special revenues from cigarette certification fees in civil penalties this again is what is being transferred from Arkansas tobacco control. And the agency request to get transferred the fifty thousand an appropriation from the sacred fire safety appropriation from tobacco control for five fifteen prevention for each year and exactly recommendation provides for the agency request. On page two hundred seventeen this is the federal portion of the tobacco inspection program appropriation. Which allows drug control to assist the FDA and expecting retail establishments that sell cigarettes and or smokeless tobacco products. The agency requesting six hundred and fifty eight thousand dollars each year the biennium which includes their request includes changes a transfer of positions and appropriations. An executor condition provide for the agency request including title changes not grapes that were handled in personnel. On page one nineteen this is spared within vinous beverages appropriation. This appropriation is used by Arkansas alcoholic beverage control administration division for general operations that involved commotion education training alcohol safety awareness and enforcement activities it's funded by special revenues from fees paid ABC administration any agency request to transfer three hundred thousand appropriation from the ABC administration appropriation each year the biennium any executive recommendation provides for the agency request. Our final appropriation for the shared services section this is eighty C. revenue enforcement. This appropriation covers operating expenses of tobacco control board enforcement and is funded by the special revenue from the Arkansas tobacco control revenue fund. The agency requesting three hundred and eighteen thousand dollars for each year to pay any of. Which includes transfers of positions and related appropriation. A request an overt requesting overtime of five thousand dollars in personal services matching of eleven hundred dollars each year. And maintain and increasing twenty two thousand dollars in our capital outlay line item for each year exactly recommendation provides for the agency request. On page one twenty three through one twenty five you'll see the. Required report on shared service transfers made. FY twenty twenty one through August thirty first of this year. On one twenty three C. the. Operations that were transferred on one twenty four to go to the positions that were transferred. And on one twenty five it is the funds that were transferred. And Mr chair the conclude my presentation for the if a administration insured services. The servers are quite a few questions I'm just asking you guys could show me show hands you want to go ahead and get the agency to the table before we start these questions. Okay if you would missed water if you guys will make you a the table we start with our questions. I'm Larry Walter sector the department of finance and administration. Melanie Haislip administrator of administrative services. Senator hammer you can starts off. Thank you Mr chair I cannot remember what was that division within DFA called that was providing services free to some of the boards and commissions that some that got transferred over to shared services the service bureau the service for your Because of those responsibilities being transferred out can you point out to me where in the budget it showed a decrease on the DFA side on that or was there one as far as positions salaries or any other expenses there had we have not shown a decrease in any place for the there were three people in the office of accounting who were doing that work whenever we whenever we move those functions over to labor licensing we reduce that number back to the way we reduced it was the of they went over they went to the revenue department within the F. A. and field existing positions we still have those two positions shown in of the accounting organization at this point and the third one is still doing the services for several aged a several organizations within state government so we're still doing some of the of that work. So we've we've of reduced it by two but we haven't shown it is a savings at this point in time so they were reassigned to other areas yes Sir okay The the individual that was left doing the work Are they Max out at the forty hours a week you would expect somebody to work for the yes Sir that's not his only of responsibility he has other responsibilities when the within Mr Lothians organization of accounting and so this is a a portion of his work but he is a yes he's working forty hours a week in and of has a full time job for sure okay and then the final thing on our page one twenty four shows all the transfer of positions all those individuals came out of your DFA in of moved over the shared services is that up accurate statement yes Sir we are not adding any positions within the FAA what we've done is use the existing positions and re purpose them in many cases throughout DFA and then we and when we moved regulatory function from regulatory mail from or where they were intent ninety nine oh six it was just a movement of the people and the expenses associated with them into ninety nine oh six it should be a decrease in the other one our Dave them was our net increase in cost by salaries being increase when they moved from DFA over the shared services or did they transfer all at the same level with no increase in salary transfer to the same level and we are doing some upgrades of in certain areas because Mister Moore is is organizing and has been organizing the regulatory burdens ation with the with rainy and eight of the tobacco control in the ABC and so it is structure there may be some upgrades but I do we're not asking for additional money to do that are thank you Mr. Thanks under. Senate hammer you reminded me of something that we've talked about I spent a few weeks ago but labor licensing was way back but it was close to a million dollars in money that we're gonna have to be made up and there was discussion that some of that money to be made up to general revenue and some of it pushed over those agencies and we passed that language is so we can push it to those agencies. See if I heard you correctly you said there's three positions Mister layer that were there. We pay those three positions almost a million dollars that took care of all those services for all those boards and commissions and labor last I find this hard to believe I I would have to defer to J. lied about who's been working the budget moving that much money between departments so I'd add I'm not. I I can't answer that question but you can get an answer for you. Check the DFA office of budget I think I can answer it in that the three positions we're talking about an accounting only provided the accounting piece of the service bureau service bureau also had employees at OPM to handle the personal side it had an employee's over it S. P. for the procurement side nominally included mind office office of budget we provided all the budgets for that so there are a lot of other services and I think in labor licensing they had legal they had I. T. that some other things in there that the three positions that accounting wouldn't be providing services for okay but if we no longer need this shared services or or whatever you will call this agency you guys had how come we can't see savings here from those people being gone so there we do still need them because we still have some independent agencies that it is our service bureau agencies there are three positions in accounting to two of them have transferred over I think when we talk about savings will I think a lot of us are thinking of is at the end of the day that bottom lines going to drop and of course what happens with these two folks is we've had a huge demand for services for in revenue offices up in northwest Arkansas I think there's been a lot interest in some the wait times up there so we've increased our hiring up there to the extent that we can claim we save money I think the closest we could maybe get is we could say that we didn't grow as much in the number of positions could we agree with that the governor made very clear last Tuesday that there was twenty six point something million dollars I think it was point one my memory's not that great over seven days of sleeping but. The there were savings so where can we find some of the savings and we were told that the whole reason we were having trouble labor license because they didn't have access to this bank of people anymore and we're going to need it because these folks were gone so I just want some explanation of what what actually is taking place in the twenty six led the twenty six point five that the governor referred to when he did is balanced budget refers to those general revenue budget items that were cut in the current fiscal year category D. and the agencies did not request for that money to be returned in effect they said you know what we can continue those cuts so that's twenty six and a half million dollars that we cut this year and that the agencies are able to absorb they're able to continue with the same level services same productivity but with twenty six and a half million dollars less than the budget that's what the governor was talking about. As far shared services in the transformation savings I think that's something that TSS will be addressing here later on in the week so there's a one of the issues were kind of all wrestling with is how do you show that savings. Okay. Senate represented wouldn't you're recognized for a question. When a six million. Or if the oral sex represented would are you in seat sixteen. I think push to get represented back first I'm sorry. Represent thank you go ahead all the all the quick. This could be where is your questions that I was looking at the proof the the line item for the professional fees and I'm I denied it there's quite a bit. Simply independent amount of the total line appropriation what exact is governor that the page you all plays well off all of their is willing to see. The extra. Of there is one that was five the okay the This page one nineteen is five thousand. Dollars there I believe. Well I think you know that that was the one that was thirty one thousand dollars it is the it's also almost everyone except for just a few hours warning what was that these covered at the on page twenty one twenty two there is Five hundred dollars. And then It it's actually long pretty much most of all so I just wanna what exactly is covered under those particular line I don't necessarily have the details but I can't tell you those are professional contracts so those are for people coming in doing work for us on a contract basis that that's categorized as a professional service okay that that that's gonna thank you. Absent a wooden of came back to you now. Thank you Mr chairman. Jake I will follow up on that comment about the revenue stabilization act. So you're saying the governor said we save twenty six million because we did in the. For them and they may not have had anything to do with transformation. The connection to transformation I think that we're making there is that when the coronavirus hit and keep in mind we cut three hundred and fifty three million dollars out of one year and two hundred five million dollars out of the next it was a big shock on the agencies all of up and down the board the governor has been telling the agencies since he was elected to begin saving money to begin finding ways to become more efficient and since two three years ago under any Thatcher they've been asked to transform and find different ways to do it better. When the shock came along the agency suddenly realize that the all those steps that were taken all those measures that were were put into place had a we think of final benefit in it if they were able to absorb a twenty six and a half million dollar cut to their budget carrying it forward with no loss of services. The is it not affected is very seldom. It has been recently because we've been blessed with surpluses but a lot of times things and it used to be a the city well as a a a one of A. B.. C. D. the most of the agencies very seldom received the is that a correct D. is not budget in our current forecast okay so so what are we to okay what we what we've been told it would be thirteen to fifteen million now we're told is twenty six million but I have yet. This German as co chair of the personnel committee of a LCD is the anybody come in and request a reduction in positions or a reduction in potency it's all worries we'll give you thirty four one will give you five four one. So we and and we have this good transformation and shared services for a letter reporters sensing the indicate to this we have yet to see that leased out to others may have but we're we're or witty and everything we see today we find out that we have financing of fiscal officers in ever division of of DHS but to run and that there. But yet they're shown on the budget package. So where are we in the budgeting process so that we can understand how much we are saving commend the governor I think this is the right thing to do all right in my business. The only the only on the only three that I was in the worst condition I could ever believe in them up this business days so that when the bad times it didn't have to make a lot of adjustments and I recommend the governor for the for that aspect of asking the agencies to reduce the. So now we're told twenty six million so true for it your own the accurate figure. Well I obviously we think it is an accurate figure it's a reduction in the amount that those agencies had received in the past base level funding has gone down is it the transformation no one knew the virus was common I mean if we're going to ever return everything to the pandemic it's bad is terrible. But we would you know. We can't say can you just can use tell us today the twenty six and a half million is the direct result of transformation I can't say that every penny of it is no surprise thank you Mr chairman. Absent a Cavenaugh I think yours six sixty nine yes Sir you're recognized Mister chair. I myself to. Confused about the twenty six million that we say that we're so we're saving and were made that dead horse I understand that but when you're looking at state central services won all nine I wanna make sure I understand these this is actually the services that D. F. and A provides only the shared that services they provide only for a day of an eight correct. That is correct okay. What services this transformation provide FOR D. F. and A. The new transformation department. And how much did you have to pay for that. Of the services that. Promotion sure services are providing or things like the the service remote PM the office of state procurement building authority what else Even if the the employee the employee benefits so those are the services that DFA would be receiving from the shared services we do contribute to the B. days through the number of employees we have and the number for the lawyers we we were budgeted of so that's how that works with the that but we don't get a separate bill from TSS. I think they're covered to a great degree from center services to correct. Where would we find the dollar amount inside your appropriation for the money that you transfer to them for the services they provide you. It would really depend on the service so for example we have a couple buildings that are owned and managed by DBA which is the division of building authority which party as a. Of we pay rent on that so or or the lease payments we paid like secretary Walter said insurance to EDT on the number of employees so you it would be later out in those specific ones for those services but in other areas for example if we had a complex procurement that we wanted to do it DFA and we wanted the expertise of the office of state state procurement that be something we could avail ourselves of that we wouldn't necessarily have to pay separately for I think part of the reason is they also benefit from state central services fund that's kind of why they exist it's just like my office of budget provides help for agencies every day we don't charge the agencies for that because we get we exist to provide that function and were funded to do that through state central services fund. What Mr chair. I understand that but we really simply what I want to know and if you can please provide me is how much money do you have a day is going to transfer and have to pay however you want to say it. Two transformations shared services for the services that they are to provide the whole day of nine. We could we could take a look at that and come with put some information together on the payments we make to to DSS as part of our day to day operations and then you sit down with you and see how close we get to to what you're looking for and it might be something we just have to work with you on and and and figure out kind of how to best to answer that question. Yes I want that information for someone who works on a centralized system that's how I run my business I can take you to the penny how much I paid age my businesses pay my central office for the functions that they provide state government should be able to do the same so I'd like to have that information please thank you yes ma'am. Representative Ladyman you're recognized. Thank you Mr chair I have a question on on page one twenty. Or it shows the excess appropriation. As a as a negative down there and that excess procreation is almost as much. Was more than the whole budget why why is that number so high. I mean is that carry over. What is that Representative Ladyman I can answer that for you if you look over to the left where it has funding inference these what's in print season actual dollars not a negative figure that looks like a fund balance yes yes well my question is why that fund balance bigger than the budget. You you you have that must excess funds. What do you carry them any excess funds. A lot of times you. A lot of times you'll see with special revenue and cash funds where under the law. There's a stream of revenue that's created from folks who pay that fear that fine and under the law can only be used for one purpose and so it's very typical for agencies to carry of A fund balance and special revenue from one year to the next it could be because they're building a preserve so that they can make a large investment in capital expenditure could be there building a preserved in case there's a bad year there's a variety of reasons. Flowers stand that but in this case was the reason. It's a cumulated over the years it has accumulated. I am so that continues to accumulate to millions of dollars and you can't use it and so we've got all this money what we are you yet there's a lot of different things that we can do there I mean it could very well be the agency can invest that into improving operations maybe go online or something it could also be they can look at reducing that feed potentially this is something that a lot of some of the smaller boards and commissions wrestle with. Okay let's look at page one twenty two then. If you look at that one. The excess appropriation which to me is excess money is larger than the whole budget. So you know that's a two million dollars or whatever. Three meet two and a half million dollars that it's just going to lay there we don't have any use for that and that's going to continue to accumulate how do we use that money for purposes that we need that's a great question and it's something that we wrestle with with special revenue because of the constitution of our state actually prohibits that from being used for any purpose other than the the the purpose laid out in law so it's something that I think to some extent we have to maybe try a little harder to get a little creative on how to spend down those fund balances use it to help the agency or offset some of the other needs that we might otherwise fund was a general revenue. And the tobacco control board is aware of that fund balance and they do have an intent to use that they're gonna start assigning some salaries for some employees over there as well so they are monitoring that we are working with them to better utilize it in the long run it could mean that our request for general revenue could potentially go down but that's not a guarantee until we work the number Sir. Okay Anna and I know that I'm not specifically talking about this agency that's on a lot of budgets and accumulates to a lot of money and we talk about not being able to fund certain things that we've got all this money that's on allocated so thank you thank you for your answer. Representative rye you're recognized for a question. Thank you Mr chairman. Folks that two hundred and ten thousand dollars it Representative les mis speaking about is Senator rollover fund or is it lost its in the year which page are you looking at Sir stage of one twenty. That's fine just accumulates it is a fine balance that continues on so if there is a balance remaining it will be there the following year for the agency to use. What one order saying you know we're just like represented fram was speaking about that twenty six million. ill if it's not an employee's where can you go into this budget and say where that's been pulled away that actually it was cost and you know basically twenty six million dollars more Jake each each year so line at yeah you so I have a schedule here that shows the different agencies that record did not request the restoration of that did that absorb that twenty six million dollar cut and so you each one of those agencies you have to go and look at their general revenue funding and how that broke out in the specific appropriations it's not totally clear to the Representative wooden's point sometimes the the way the budget is built in way it's laid out. I merrily is to achieve the goal of avoiding deficit spending that was the whole purpose of it the the good news is it does do that the bad news is sometimes we were looking for something else like savings our bottom line changes it it's sometimes hard to connect those dots. Senator hammer you're recognized thank you Mr chair the were thrown around the twenty six point five million dollars in savings is that the number that was generated of the report that Amy had to produce per Representative backs legislation it's very close to it and that's totally coincidental I I I didn't realize that when we were putting together the budget it's I think that the both recognize a similar amount of savings but how those are are are recognized or how they're defined is is different or different reports to different amounts so. Would be the position that. The total savings is around fifty three million if you take what is produced in her report and what you're proposing is savings through the budget I don't think the you could add those two together is cumulative I think that they measure different years different of kind of angles are or approaches to it with the savings that we're looking at when we presented the balanced budget earlier less this last week is just general revenue reductions in spending so that's less money that the agency's requested is less money that's going to be provided to the next year I would that have not been included in that report is it the report that was presented I want to say it was back in March would have been for prior fiscal year it would have I don't think they would have been aware of I don't think anyone was really aware of what the balanced budget was going to look like for FY twenty two. How those US savings might be recognized in future reports is something I think TSS could answer so if we had legislation that required a annual reports moving forward similar to what Representative back in reduced. Would it be logical to conclude that we ought to see fifty three million dollars supported from the original report plus what's being done now or is that not realistic no Sir I wouldn't I wouldn't say that would be logical because again you're looking at a report one report that measured actions in say FY nineteen and twenty verses another that's projecting actions for FY twenty two as far as kind of what that bill might say in and what the results of that report might lead up to would really just depend on how the bills written and how it defines the the report and the the how we recognize savings in state actions okay and we'll get together offline about that to represented Kavanaugh's question. Are we know pain Publishers services. Are we know is DFA now pain. Two department of shared services. For services that DFA previously provided them self. Yes Sir. The only payment that DFA makes to the TSS to transformation insured services for is for goods and services so like tech said the rent on the buildings that we occupy EBT match which is a requirement of all state agencies to help fund insurance other than that yes this is funded by the state central services primarily justice DFA is. There's not a payment made from the individual agencies to TSS for services provided by the office of state procurement office personnel management or any other other divisions. Okay and then in your budget because I've heard this comment made so help substantiated or disprove it. What what's left the DFA I mean the the phrase was defacement gutted what's left the affair where would I find in the booklet what all those left the affairs at Justin Roni is comment we're going through the budget and you'll see as we go through it walls left at the FAA we you know we lost OPM building authority procurement ET the V. D. and criminal the tension and internal audit in total number of people that was not a large number of people and so we still have all the revenue you know we we have the revenue organization we do income tax we do both corporate and individual is a state sales tax things like that doing the audit for all of that we we have the regulatory division we got ABC tobacco control we've got the lottery we've got of casinos all those a which is still going on we were not good it was a it was in an attempt to move of the shares services that we were providing into and and create a organization that we could do shared services for all the agencies we still do some of that through asus you are aces organization we see we support the whole of state government with with that organization so it's we have a pretty significant organization DFI are thank you Mr. I see no further questions on the. First section of bills to I have a motion. Our motion projected recognize second all those in favor say aye. All opposed ayes have it you guys probably want to stay close so will go on to the next section two dash one twenty six Mr Pym and you're recognized to. Explain the. Sixteen. Thank you Mr chair our next section on page one twenty six. The department of finance administration but this is what will be the management services division. Appropriation summary is on page one twenty nine. FY twenty one authorized level was ninety three point one million an appropriation and for both years the biennium the agency requesting a hundred and six point seven million an appropriation eight thirteen million or fourteen percent increase over the FY twenty one authorized level. And there are sixteen total appropriations only nine of them have chains levels and for our conversation I will only go over those appropriations that have changed levels those that have no changes they're asking to continue after FY twenty one authorized level. First appropriation has a change level that's going to be on page one thirty seven. This is the management services operations appropriation. This provides for operations of the management services division of the FAA. And it is funded by state central services. It provides state agencies with assistance in accounting budgeting administering statutorily required controls. The agency requesting appropriation in the amount of. Twenty point nine million for both years the biennium. That includes the following changes thank you for a transfer of positions and related appropriation from their operations appropriation. They're also asking for transfer of. Appropriation into the the shared services appropriation we covered on page two hundred and seven. Include the four hundred eighteen thousand operating expenses forty one thousand in conference and travel appropriation and a hundred fifty four thousand professional fees appropriation. Also asking to maintain. wrist restoration of a hundred thousand and capital outlay to the FY twenty one amount. Pretty sure the biennium the cigarette commission provides for the agency request along with one reclassification and two upgrades there are a couple of personnel that come with regular salaries of twenty nine hundred and person Salas matching of eight hundred and seventy one dollars. Our next appropriation with change levels is going to be on page three forty five this is the information technology appropriation. Is also funded from state central services and provide for data processing development implementation enhancement and operation of automated systems within the effect. The agency requesting twenty nine point five million each year the biennium which includes a and request of a hundred fifty thousand dollar increase an appropriation this would be used for a print apprenticeship partnering with the Arkansas center FOR data sciences. The exact recommendation provides for the agency request. Sure annexed for. Our next appropriation with change what was going to be on page one forty eight. This is the state contribution for the developmental disabilities council. The purpose of this program is to provide advocacy capacity building and systemic change activities that support the development and improvement of a consumer and family centered system of community services FOR individuals with developmental disabilities this is funded from general revenue and is used to match the federal grant that's the appropriation will cover next and this is from the department health and Human Services. The agency is requesting to continue appropriation of thirty six thousand five hundred dollars in general revenue funding any amount in that same amount for each of the biennium in to request included general funding general revenue funding increase of fifteen hundred dollars for each year any second recommendation provide for the AG request an appropriation only. On page one fifty our next appropriation that has changed levels. As I mentioned this is the federal part of the developmental disabilities council. Agencies requesting one point nine million each year of the biennium which includes a change of an increase in our grants and AID line item by five hundred thousand dollars due to a change in the grant period and executive recommendation provides for the agency request. On page one fifty two we have our next appropriation with James levels. This is the domestic violence shelter grants appropriation. This one is used to provide funding for statewide grants awarded to a statewide domestic violence entity under the Arkansas domestic violence shelter ACT. It is funded by special revenue collected under. collected under section of the Arkansas code and moneys obtained from private grants or other sources that are designated to be credited to this fund. The agency requesting a hundred thousand dollars each year of the biennium which is an increase of fifty thousand dollars an appropriation the agency requested to allow for full utilization of the grant funds as collections continue to increase. And the second recommendation provides forty agency request. Our next appropriations these next for our federal grants the rest request to continue into the next biennium. Our first one on page one fifty six this is project safe neighborhoods. Administered through in a government services manages a federal grant program that supports creating and fostering safe neighborhoods through same reduction in violent crimes. This sort of this funding as mentioned is federal revenue agencies requesting to restore four hundred seven thousand dollars for each of the biennium it was previously established through the authority of the miscellaneous federal federal grant an exact recommendation provides for the agency request. On page one fifty eight this is our next. Grant this is the comprehensive opioid abuse program. This is a federal grant grant program that provides technical and financial assistance this two units of government to plan develop and implement comprehensive efforts to identify respond to treat and support those impacted by the opioid epidemic. It is funded by federal revenue and the agency is requesting to restore seven point eight million for each year the biennium was previously established through the miscellaneous federal grant through the peer committee. On page one sixty this is coronavirus emergency supplemental funds. Manage through in a government services. Established by Congress to provide assistance to state local and tribal governments and that responded to coronavirus. This is funded by federal revenue and agencies requesting to restore seven million for each year of the biennium that was previously established through the authority of miscellaneous federal program ACT and executive edition provides for the agency request. Our last procreation for the if I mentioned services this is the family violence prevention services grant. Manage through in a governmental services this is a federal grant program that includes salary operating expenses and the administration of federal funds received through the family violence prevention and services act. This was additional funded received in FY twenty for grants of for services and support of victims for domestic violence in their dependents related to or affected by covert nineteen. Davis is requesting to restore three hundred eighteen thousand dollars for each year that was previously established to the authority of the miscellaneous federal program ACT and exactly recommendation provides for the agency request. The chair the conclude my presentation forty if a management services division. Thank you Mr US senator Elliott you are first on the list I thank you Mr chair my question is like on page one fifty For these grants FOR the development will be out developmental disabilities council do we make a specific request an amount for a specific amount over is that grant from the federal government is that just to an amount designated by them because we've got a match it so I'm just wondering. About that federal I believe it's an amount set by the on my can verify that you by the federal government yes but I believe it is an allocation of the grant that they give to us okay and on page one fifty six. a the same question here in a way except that I don't know how this grant works if the you have some good this give me an idea about how it works and and For all our thank you see what we're putting into it but who can I talk to that can tell me about how this actually. Is operationalized that is going to be the inter governmental services administrator whose door Smith Doris yes Mister Smith and we can get are you her contact information that would be great she's got the details on all of this okay thank you that that's all Mr chair. Thank you. Senator hammer you're recognized. Thank you Mr chair can you talk about the coronavirus emergency supplemental funds a little bit more. As far as. What what is the intent of this and are you anticipating more money coming down from the federal government or can you just kind of expand on what it's about. I'm I'm gonna be honest I know very little about that my understanding is this was a federal grant and the cares that it was not like the coronavirus really funding so it did does not expire December thirtieth it does continue out I believe for another year I'm it was through the department of justice and I don't know if they're anticipating additional dollars or not but I do know that they're working through these grants now. we can get to any additional information you need those Senator hammer. With this fall under the same method of distribution as the one point two billion that has come down as far as it had to be cleared by the committee or is this is totally on related to that or yes Sir this is totally unrelated to that the inter governmental services group within DFA is managing that grant I do know they opened up an application period and took applications for this grant I do not know I'm the details behind how they're awarding it but I do know they're working through that process now and and what is the grant specifically intended to be used for I'm some of the primary stuff is PP. I'm for court houses for a police officers and stuff like that there are other things that can be used for such as AT T. equipment for remote say remote court appearances and stuff like that. But it I'm sorry but again I don't. I'm telling you what I know I can get you more details anything. But all it all has to be related to law enforcement or no it is primarily for law enforcement yes it can actually be used for others as well okay a let's get together afterwards if you don't mind please absolutely thank you Mr one of one on the viewed abuse program what about the funding for that what is it specifically targeted to be used for. The opioid abuse program I'm let me get to those details I am sorry the lady who would have those details was unable to attend today due to I haven't stay home with the child. Senator will will get that will get back to you on that okay thank you by Mister. Representative Cavenaugh you're recognized for a question thank you Mr chair my question is on page one fifty one I just wanna make sure I heard something about her it wrong when he was presenting but they were talking about a increase in rent is this the one that they were talking about the increase in rent. One fifty one. On this bill these. I'm confused. The operating expenses you that your about two hundred fifty thousand more. And I thought this was the page it was talking about that there was an increase in rent. We are that I missed that's what I'm trying to. What thank you on one fifty one. Note that increases due to a change in the grant period. I'm with this grant was formally thought of as a three year grant first spend purpose it's now been determined by the feds that it's actually a two year grant period so they're having to spend the money faster but it's not related to recount okay I just have a bill in your operating expenses is is for some reason I thought it one of the things he was talking about rent be an increased and I thought this was it not that I'm aware of thank you. Representative Ladyman you're recognized. Thank you Mr chair on page one fifty three. Of the domestic violence shelter grants of it shows no expenses is that true I mean why why why was or not any money expended there I'm part of it was accumulating dollars to be able to spend this is funded by fees that are collected at the courts and center that minister to a the administration of justice fund group which works for me and the funding has accumulated over time they are actually working on those grants right now I'm the first couple years that this was in existence they were not collecting very much money but now they have accumulated a substantial amount they are working on getting that that money out to the domestic violence shelters. Okay I have another question on one fifty seven. Well also fifty nine sixty one same thing it shows Salary expense and personal services matching expense but no employees how do you how do you spend that money we don't have any employees. The employees that will be allocated to these programs are in the single salary section board DFA budget and management services and they're not that a portion of their salary will be allocated here not their whole salary they work on multiple grants so it's part of a person it's part of a person yes thank you. Absent a wooden you're recognized for a question. Thank you Mr chairman on page one fifty six and one fifty seven. The Grants in aid three hundred and forty nine thousand is set for law enforcement shares office space state police of local police or how the hell are those grants made. I'm sorry I will have to get you that information but we will get that to you I will get within a criminal service today I apologize for not having those answers thank you Mr. Thank you see no further questions with the wishes of the committee on this section. I have a motion for executive wrecked. I have a motion second all those in favor say aye. All opposed the eyes have it with that Mister payment if you would carry on. Thank you Mr chair our next appropriation eight zero going to cover this is the revenue services division appropriation summaries on page one sixty nine. Revenue division is responsible for collecting taxes assuring taxpayer compliance with revenue loss of the state maintaining driver history records and issuing titles in licensing motor vehicles. Their total appropriation A the twenty one authorized level was one point for me billion they're asking for one point four billion for both years the biennium there's a two million dollar increase. There are nine total appropriations only two of them have changed levels. Those without change levels they're asking to continue the level of appropriation at the FY twenty one authorized level. So our first appropriation with change levels is going to be on page one seventy one that's the commercial driver's license program. This appropriation provides for operating expenses of the a phase Arkansas commercial driver license program and FOR other related purposes. The it is funded by fees collected by licenses issued or collected for licenses issued the agency's request to continue appropriation of four point seven million dollars for both years the biennium and executive recommendation provides forty agency request along with two position reclassification with an increase in regular salaries of fifty three hundred dollars and personal services matching of twelve hundred dollars for both years the biennium. Our next appropriation to change levels it is going to be on page one eighty two. This is the division's operations appropriation. This is one from state central services and provides for the operation of the FAA's revenue services division. Agencies requesting appropriation in the amount of a hundred nine million for FY twenty two and FOR FY twenty three. And eight to request includes the following changes as listed there asking for a transfer of positions and appropriations some positions are coming to the division some art being transferred out of revenue services division. They're also asking for a reduction of one point six million dollars from the operating expenses line item for the ending of the excel technologies contract for tax return processing that is moving back to DFA. They're also asking to maintain their cap outlay appropriation of six hundred thousand dollars. For both your the biennium any executor accommodation provides for the agency request including twenty eight position upgrades with regular salaries of a hundred forty four thousand personal services matching at thirty five thousand and a position re classifications that have been taken care that dealt with in personnel committee. Mister chair I conclude my presentation for DFA revenue services division. Thank you Mr men and present Wooten you're recognized for a question. My questions on page one seventy one dealing with the commercial driver's license program. What what do we have such a large fund balance in there seven point two million. I am Sir we have some as salaries for the appointed there we also pay some at expenditures directly out of that for the commercial driver's license it goes back to what Jake said earlier that it's a special revenue collected for a specific purpose I'm we are looking at there is a the system that we use for commercial driver's license house like a timing where you have to replace it and my understanding is that's coming up so a significant amount of that may be used we may be coming back for additional or for approval if need be but it is a his cumulated over time as this about the only answer that I have. What system did you say would be re approved or have to the Marshall driver's license system so the systems in the state revenue offices that issue the driver's licenses. That system those those computers and those cameras and staff have to be replaced because they become outdated. So. Anyone it goes in the revenue office has their pitcher made is this a different camera system for the commercial or is it the same system over charge that out here. I believe it's the same thing but I'll have to verify the same system I believe so we're paying it Allah commercial driver's license the. What is it that well. Hello seven accumulating like that I or let me let me back up is there a law that says that that money has to go into this division yes Sir there is specifically Jake to their okay yes Sir and so that expenditure for the cameras update we'll come out of this that is mine. As chairman. Thinkers and would. To follow up to represent wouldn't questions could that fee not be lowered so that that fund balance doesn't accumulate so large we can look at that I need to go back and do some research on that honestly can you get that back to the committee get us exactly what that fee is it and what that accumulation per year is please yes Sir. I see no further questions on this with them answered our questions do I have a motion for exactly record motion second all those in favor say aye. All opposed ayes have it so with that Mister chairman I move on to the next one. The a BC board I believe. Yes Sir Mr chair. This is A. B. C.'s administration's division. There are it it's appropriation summit on page one ninety one. There are three appropriation within the division which administers the regulation supervision and control of the manufacture distribution and sale of all alcoholic beverages in issuing permits and after the passage of the medical marijuana amendment of twenty sixteen the agency's mission was expanded to include oversight of medical marijuana cultivation facilities and dispensaries in Arkansas. Start all three of these appropriations at change levels but the spirit within vinous beverages we already covered with the transfer into their shared services section so. Three RD cover that if it. Please the chair I can get that section. Our first appropriation on page one ninety two this is the state operations appropriation FOR ABC administration this is funded by general revenue. Agencies requesting nine hundred and seventy seven thousand dollars for both years the biennium and they're also requesting general revenue in the amount of eight hundred and twenty two thousand for each year of the biennium agency request includes the following of a transfer of one position with related regular salaries and matching to deface regulatory division appropriation and you take a recommendation provides for the agency request along with a title change for one position that was covered in personnel. Senate page one ninety four spiritism vinous beverages we are to cover that the shared services section. Being transferred over. On page one ninety six this is the appropriation FOR the medical marijuana commission. This appropriation is funded from the cultivation to dispensary application of licenses licensing fees as used to support expenses related to the medical marijuana commission. Turn to page one ninety seven to see their appropriation summary. There is special this contingency appropriation. It is the line number two. This is supported by special language in there appropriations bill which authorizes the state CFO to transfer appropriation as needed to the ABC division of the F. a health department or any other state agency incurring expenses for any implementation administration or enforcement of the Arkansas medical marijuana amendment. Agencies requesting five point five million dollars for each year of the biennium which includes the following change of discontinuing the other refunds line item that would discontinue a hundred forty thousand appropriation associate with the medical marijuana commission expenses that the board states was never used any second recommendation provides for the agency request the chair that includes my presentation for ABC administration. Absent the back you're recognized for a question. Thank you Mr chair of. So. Looking at the page one ninety seven. Medical marijuana. Can you help me out with with the numbers there looks like the actual hundred thirty eight and we're going to. Five and a half million that correct. The refund appropriation that is there Sir is for refunds dealing with licenses so the cards if someone double pays they get their money back the two million is actually a contingency appropriation that any state agency can request a pool from if they have medical marijuana related expenses. That that's the total of the five point five there is not an increase the third line there the other re fines we are asking to discontinue that the hunter forty thousand and that was due to the fact that that was set up back with medical marijuana was originally put again as if this was going to be a separate agency and when it became part of ABC we no longer need that appropriation. I'm sorry did did did go back to at the center three point five million dollars the Senate for reimbursement of three fines refunds of I licenses so originally this could have been used for and can still be used for I'm if someone makes an application for a license and they didn't get it they got half of their feedback that's where this would be used it's also used in the instances of the the individuals who seek licenses to be able to beat tech get medical marijuana. The if they doubled Hey which we do have happened then that can be refunded from that line item as well. Okay I. Maybe we can talk off line this but. How how many applications that we have for cultivating marijuana. I'm Sir we would have to get the division of here but I'm sure door lien or mine. Or. Jake. I would be more able to answer that question directly Sir. Early channeler director about Pollock beverage control ministration we had in excess of a hundred and fifty cultivation applications that received when the. A time period that those applications were being held for for potential issuance of licenses we began those refunds back at the beginning of July of this year we have in place in excess of three hundred fifty dispensary applications those applications will be determined the abeyance period for those will end in January of twenty one and at that point we will be refunding all those that have not been awarded. So so this number your and anticipating and this is a real number you're anticipating that you will be refunding three point five million dollars is percent to the roles we will be required to re find half the application fee back to all those and those that are deemed not successful in obtaining a license it's a new anticipate that will be three point five million dollars I have not put the pencil to the math to figure out the exact amount. So where the three point five million dollars come from. That was an amount that was established when we created this appropriation for that means not knowing what the applications how many applications we would get or how much would need to be refunded. Thank you very much. Senator hammer you're recognized for a question thank you along that line and on the question of your jeep part pope for get away the. You're gonna refund half of it what happens to the other half. The state keeps that is revenue Sir. That all eventually end up in general revenue. Yes Sir medical marijuana as general revenues all right. And you don't know. You don't know how much that is right right now not right off hand but that is a number that we can get you and the money has already been deposited into general revenue. When the licenses when applications were originally done. All right so so you need the appropriation in order back to money out of general revenue in order reimburse that but you don't know how much have is at this time but you can get that number yes Sir we can get that for you okay of you don't anticipate any future litigation over that matter because a member sit through several meetings where that was kind of a contentious point. are we expecting that there be any litigation over that anymore just gonna bring into it. We currently have to a lawsuits that are pretty are pending and Carroll County right now regarding medical marijuana one is a lawsuit over the other the expansion of the cultivation licenses the second lawsuit is a lawsuit over the expansion of these one dispensary license there are three additional designs that could be expanded and there is potential for litigation at the expansion of those three licenses as well showing the numbers you have presented force day you're taking that in consideration that if those are successful others might follow the like patterns or. Or you feel pretty confident that this is going to cover the need. At this point this will cover the Nate the of the litigation and the re funds. Okay are thank you thank you Mr. Senator Elliot you're recognized for a question. Thank you Mr chair I know will be set up this process for the licensing where people and everybody you know had to pay and they were not to Get in the entire amount back if they were not successful for the license now that we have and that was for lack of better terminology kind of seat of the pants type thing we had to do to get going and now that we've been in this process for a bit do we what do we see as downside for the state if we re fund people all of their money of when they are not able to require a license. What's. What's the what's the problem with that now that we know more about it than we did when we started. I would I would ask your early is that in the. Constitutional amendment or is that in the law. Our rules in the MMC roles that we have set out that that added a new portion of that money we also did pay for the commission that had an outside contract for scoring of those dispensary licenses they did not internally score those. And now. Do we still need that FOR upside scoring don't we scored in turn we now or we have a. The commission had passed a rule to hold free twenty four time period those licenses and so there is no additional scoring this scoring would only occur if at the end of the twenty four month time period on those dispensary licenses which expires January ninth of twenty one if they do not award the additional three there is the potential for those additional three to be awarded in the future but it would require a new application process with new scoring okay well I'm I'm trying to get to my specific budget question about this if we re fund the license fee to every person who is does not successfully get a license. Budgetary lady how does that hurt the state. Normally haven't we already sent money out of and given re funds and but we also have expenses that were being paid out of those dollars so if you if you gave everyone the refund you would be you have to go to general revenue to cover the difference between what you've already paid out. Correct and and expenses that as an and expenses you had to pay out of that same. a dollars. Correct because what also is being covered in this is the issuance of the employee cards the paper and all of the those products that are used to continue this program down the road. It yeah we we could if it were deemed or something we would like to do we could probably do a pro rated from ran a. I don't think that would make more sense because understandably there there is some kind of administrative cost I get that that I I just in a that's a real sore spot for people because it appears and I understand that it appears that you know you're not successful but then It might not stand to reason once we put the no pencil to paper that it really that you should not get a your entire cost back but program Adam would make more sense to people they would feel better about I think with the state is doing as opposed to we just arbitrarily decide you're going to get half of it back that's I can't justified in other words what I'm saying I don't know how to justify it and from a policy standpoint we haven't really addressed the issue of the of of this idea of of only give them fifty percent back that was that was determined up front and that was what was presented to do and now we're at the tail end of it so amend something we could could look into okay all right that thank you Mr chair I think that be good if we did that. Absent a Payton you're recognized for a question. Thank you Mr chair A so if you would turn to page one ninety one. And this may I have a simple answer. That have not caught before but. In the first column you've got the nineteen twenty fiscal year that ended with eight hundred and sixty three thousand. Positive fund balance. The budget for the twenty twenty one fiscal year shows that fund balance growing to eight seventy four course we don't have the actual on the on this year that were in. But we're projecting that we start twenty twenty one fiscal year with only two eighty three. So that's nearly five hundred thousand dollars that we expect to go on the whole this year. Where the budget show that we would. And this year with the eight hundred and seventy four thousand surplus in the fund balance. Check pleads coming up to assist with that. JP DFA office a budget so the it's very typical for agencies that have that fund balance for that special revenue used to go ahead and request the appropriation to spend a great portion of or if not all of that fund balance kind of is a what if for a contingency purpose this is A. B. C. a guest medical marijuana and there. Of ABC admins that knowledge. So we could get into the exact details of how they want to spend that money but it's pretty typical for agencies to project out of potential need in the event that some of emergency happens or something happens where they have to access those funds yes course I'm not on that excess appropriation a I mean in the in the twenty twenty one budget. It projects and eight hundred and seventy four thousand fund balance at the end of the year. But in the twenty one budget or only projecting to start that you're with two eighty three in the fund balance. Let me look in figuring out exactly what happened there there normally is that that eight seventy four one eighty one would have carried over to where you see when I was eight three six thirty five but when you look into that and figure out what's going on there. Okay thank you thank you Mr. I think I think we got staff may have an answer to that page thank you Mr chair thank you Kevin Anderson Jake you may want to look on page one ninety five where that is you'll see the five hundred and ninety thousand is transferred out. And that would that explains the difference in the fund balance. What is. Sorry that is the amount they got transferred to that ninety nine oh six business area so that's why it goes away and it reduces that fund balance the agency fund balances the whole decreases because we took one bucket and moved it up to ninety nine oh six can you tell me what ninety nine oh six is ninety nine oh six is the DFA secretary shared services level that is also where we are locating DFA regulatory division enforcement. Okay we covered that in the budget yes. That was that was the first division that we looked at. Okay thank you thank you Mr chair. Thank you. Senator hammer you're the last one thank you let me get back on marijuana for a minute On the on the page one ninety one. If I understood the explanation awhile ago. That three point five million is there for the purpose of re funding to the potential growers there half is that correct that is correct okay when I look in one ninety one at the X. thirty six which is department appropriation summary that level maintains out into twenty twenty three. Is it is it necessary for that level to maintain out before going to disperse that money back to them and should that not be lowered because once that's done we would need that. The yeah that's something we can certainly look at I mean I think that as was mentioned earlier that's an amount that we had in place and when we are actively engaged in taking applications. Reviewing those applications making decisions on issuing licenses and it individuals wish to to get that refunded pull their licensing that funding would be there. My guess is were moving out of that I would defer to door Leon that but I don't anticipate we're going to be in a place like that so that's certainly a number that we could look at again in the future. Or S. reducing so so when we expect that would that be would all that be concluded before the twenty two twenty three. Budget. That all those refunds would be disbursed. Yes Sir the refund should be disbursed and buy the latest of March of twenty one. Okay. But we don't know exactly what that number is going to be as we sit here today is that correct that's correct it will depend also on how many license the mining licenses the commission authorizes all right and we're not we're not giving out any more growing gore licenses right that's correct with mac mark maximize what the constitutional amendment will allow okay and those that fail to get it did they fail because of something that was not acceptable in the application process or did they. Was a failure on on our partners that part what's in the litigation. Those that did not receive an application was based upon their scoring and there were refunded at that point is nothing to do with necessarily something that it lacked in their application. Okay it was a very competitive math. Right do you know what average what how much do you how much did each individual have to put with their application what was the. What we charge turned in. Fifteen for cultivation. It is seventy five hundred for the application fees. Cultivation I want to see the full fee was fifteen thousand of which half would be refunded. We can certainly get you that's going back a little bit away. Okay so the last thing is if we can get this worked out before we let that item clear out of here we could reduce the appropriate fish appropriation level on the milk of medical marijuana smoking medical marijuana commission the fifty five that five point five million we could reduce that down could we if you can get all those numbers pull together. Yes. Okay yes Sir. Share the. Appropriate time please. You're recognized you want to hold that appropriation on hold that appropriation maybe before we get out of here and budget hearing say we could work this out to where we could adjust set down so as not to leave that hanging out there more parade will forget the next year and we might as well deal with it now is later thank you. Senator hammer we do we will be Ending this section eleven so definitely will be on the agenda after lunch so you guys I have the afternoon to try to work that out if not we can put it on tomorrow's agenda but otherwise it'll be held to the session okay those of that we get it done thank you thank you. Representative Payton you're recognized. Thank you Mr chair just request of Mister Anderson may be. Can you tell me how the chase down more information on that ninety nine oh six cabinet level business. What page to turn to or anything. We'll we'll have Mr semi we you thank you outside a committee. Thank you so with that Committee we're going to not take a motion on that section until we get that worked out. So with that Mister a pin mental recognize you for the next one. Thank you Mr chair our next appropriations. On page. One ninety eight and then on. To to these are appropriations that have been moved we discussed them previously when we're looking at the shared services section. ABC enforcement on page. Two hundred. And then tobacco control on page two hundred and two as you'll see all their appropriations have been zeroed out for the biennium as they've been transferred into DFA shared services section. Our next appropriation we can discuss that is. On page two thirteen and appropriation something on page two sixteen this is the FAA's. Racing commission. Has sold jurisdiction over thoroughbred horse and greyhound dog racing there are three appropriations in this section. Only one of which has changed level in you'll see the twenty one authorized level seven point two million and appropriation for the agency moving into the biennium the requesting twenty seven point two million. State increased twenty million what is related to their casino holding appropriation. That is on page two twenty one this is the cash and treasury account. That allows the racing commission to meet the requirements of the Arkansas casino gaming amendment. The agency request a per appropriation of twenty five million each year the biennium which includes an increase of twenty million appropriation which will be used to move seventeen and a half percent of casino revenue to two commercial bank accounts owned by the racing commission where the racing commission within pay the money to Oaklawn and Southland and the exact recommendation provides for the agency request. Mr conclude my presentation on the if a racing commission. Six seventy five an entity's. Thank you Mr chairman I've got a question the. Amendment one hundred it says that the racing commission to provide a minimum of two hundred thousand dollars for gambling addiction where would I find that in this budget manual. tick to DFA office a budget. The amendment requires the racing commission fund that the. That payment I'm not sure if there's a specific line no and where that comes in we've got some folks in the office or in the audience right now we're digging for that if you could we're gonna add that to list of questions would like to answer after one. The act that defined. I mean I just wanna make sure that something that the racing commission is funding out of their budget. And I think the minimum funding amount is two hundred thousand that's right. The. Sir would you like to come to the table. Thank you with the state your name for the record please I name is Byron free long. The. The affinity. The rest the commission yes yes okay. A what was the question. The question is I believe that the racing commission is supposed to be providing a minimum of two hundred thousand dollars for gambling addiction and I just wanna know where in this budget manual I might find that and also to make sure that the grace commission is doing that right what that out of the racing commission's budget deal with the racing commission is doing is we've met with the. Current health and Human Services on two occasions there is a third party vendor this an Arkansas corporation is met is made a proposal were city from meeting to whether or not they want to adopt the proposal from the Arkansas corporation all the other Oaklawn cellphone and in the others have out of state a compulsive gambling programs if you're paying money to and that constitutional amendment offices the rest as usual paid department healthy you Human Services two hundred thousand dollars. Two for for the program with their existing programs they're trying to set the program now with the Arkansas company in the two thousand dollars is not needed until probably another year. In the two hundred thousand is the is the minimum amount that the racing commission is supposed to provide FOR at imitation correct correct so it is the intent to provide the minimum more or more than that well we have to see what's the the proposal from the Arkansas company and I've gone blank on the name of that company with there's an Arkansas company is made a presentation to to compulsive gambling and they have other contracts with the state and we don't know that we do not know the amount would take it to. They know the chair thousand dollars of the cost issue they not given zone at this point. All right thank you. All right Senator hammer you're recognized for a question thank you Mr manager the two commercial bank accounts are they are they on by the rationing entities or is that of the affair can you tell me something about that. The two commercial bank accounts are actually set out in Arkansas code in their own by DFA. And they're a pass through to Oakland and Southland okay and the process for picking the to commercial banks how's that spelled out in the process. Those bank accounts have been in existence for some time. So the I I'm not sure on the answer to that question Sir okay you right thank you thank you Mr. All right the. Representative Cavenaugh you're recognized for a question. Six it's still thank you madam chair just a quick question on those two commercial banks we had found out earlier that if agencies or boards had those commercial banks is sometimes they were charged a fee for not having them and the treasury is that the case with these. No ma'am these these bank accounts are at. They are not charged a fee they are holding and pass through only so there are no expenditures against it where they're paying for goods and services there strictly passing money on to Oakland and South one day just wanna make sure because the other agencies actually have a fee that I paid to to us because they have all in a privately held yet as may I registry yes ma'am the cash fund service start yes yes ma'am okay thank you. All right to Senate. Senator Chesterfield. Page to see on page two twenty one. Are we talking about in the. Ford says increase of twenty million the appropriation is used to move seventeen point five X. in a revenue to commercial bank accounts. Owned by the racing commission does the racing commission literally on to bank accounts so they have bank accounts in various banks. No ma'am they literally have to commercial bank accounts that are the person awards finds one is FOR Oaklawn and one is FOR Southland are they housed in a regular bank or is there racing commission the owner of those banks they are housed in a regular bank ma'am and but they are owned by the state they are in bad DFA all right that's that clarifies it for me thank. Representative Wooten you're recognized for a question follows loans Representative Kevin those quick question. She's talk about what the bank charges what we're talking about is at four percent for the that goes in the state treasury. they pay in there no Sir not on not on these back. Yes you all those rule your regulation while they're not paying that like all the other individual private day agencies and the licensing labor licensing board there's several and they all were telling this transformation and calls them a considerable amount of money that's how we found out about the four percent fee that was a rule that DFA created years ago I come they're not paying name these monies are held on behalf of another entity they're not X. they're not true expenses rules is the rules says money not deposited in. The state treasury would be charge that fee it didn't make an exception so the spa understanding so what are they not paying for the. Poliquin is headed to the table and Larry Walter. Thank you better answer that question Sir. Follows in the by. The funds that we charge as the mystery thirty two or the operating phones were expenses and revenues were collected. We have a service charge these are fiduciary phones that are not owned by the state there simply managed by the state. Therefore to appropriate Chris take any funds away from that because all we have signature authority over these phones you find funds like this at DHS. for the prison system and correction division. Jake what is the rules say exactly Mister Billy. I'm afraid I'm not familiar the rule but I think Paul loading would be the authority on the this is specifically. What what I'm after is we will treat it will want while we're not treating everyone the same as it relates to my account I don't care what operating money otherwise was held to to this state by well it's in a state account but we are not the owner of those monies in the fashion that we are if we collect that money and use it for operational expenses of the state if they're fiduciary in nature we do not have ownership of that we are simply signatory authorities over the administration of those funds totally different situation well is it is it will do ninety do we own do we own those private bank accounts for those agencies in licensing in those glasses in the division but need we don't all those funds those are fees that are collected the fees are collected by a state agency and they're used by that agency to carry out state business but let me once this money collected for this money would be collected for a nonstate entity but let me see if I can try it this way we help with and then state entity I believe the constitutional amendment that was adopted requires it. Is under as I understand it these or collections that go toward purses for both Oaklawn and Southland and it was in addition to the to enhance the person so that the they have. More quality races what are we involved in the purses at the race track one the believe the purse fund is derived off of of fees or taxes that are collected by the state so we collect those funds and then pursued to the constitutional amendment there's a portion of that money that we have to set aside into that person is that right. One after one hundred requires a percentage to be deposited for the person construction fund. That percentage is actually in the amendment. So we held their money. In order that we can collect our fees. Well let me try this. Typically with with funds and the state central services the constitutional offices officers fee that three point one percent that we pull off the top for those funds. The justification for doing that is that that money is necessary to support agencies like the FAA and TSS all the administered office of the courts all those other pieces that run state government are justification what we what we hang our hat on to take that money is to say to them Hey look that's money that you all are going to use to run your state operation your state operation benefits from the work of DFA from the work of all these entities and state central services therefore we're gonna go ahead and take our three point one percent in this case this is money that's not going to a state agency it's not going to a state operation it's not going to anything that benefits from the work of DFA or TSS or all the other entities that benefit from state central services fund or how do you differentiate being able are doing that for them. And you don't do that with the motor fuel tax the gasoline and diesel fuel tax. Three percent of that goes. Well I date gets into kind of issues with the are not and I would certainly argue that are not benefits from the entities within the state central services fund and constitutional officers. Thank you Mr chairman. Thank you. So senator Johnson if you would hit your request button we had a. Malfunction with the machine you're recognized. Thank you Mr chairman of. German on this this racing thing of my understanding is the the dog track in west Memphis is gonna cease at some time soon being a dog track. and so there what happens to their purse fund when that happens I guess Mr free on that's on you dog racing should and I believe this remember again at the end of twenty two with that time the way the constitutional amendments being interpreted is all that money would go to Oakland at that time and this is some change million constitutional amendment or if the could be a legislative change but right now the plan is that that would all go to Oklahoma. So a at it so it would just be at a horse person fund as opposed to being divided between dog this is this reading of the other may be some either litigation try to be some kind of change the constitution can we get you closer to the Mike please Sir the best rating of of the amendment is that it all go to Oaklawn when Southland seizures racing okay and and I I still question the the language which says that the franchise holders able to have a casino well if they're no longer racing or they still a franchise holder I'm just curious how that should get out of the the I thank you the language is pretty clear I think they've. It is here somebody drafted the amendment with that in mind so it looks like the language meets that requirement very easily so that should not be a legal issue. Okay and one final question Mister chairman of. and in Larry or whoever can can get me this of. Can you compare the the actual revenues and the projected revenues from the casino the as the tax was a defined in amendment one hundred versus the Movement revenue from the electronic games of skill. Which I assume is phased out with the implementation of amendment one hundred words how did it go up to go down and if so by how much. Subject seems to be coming around on the. Are you asking state revenue. Yes Sir I'm there less but causing no sure if we went down from the state is that the proportions of provided more to the cities and counties. To to in effect garland and and and Crittenden county and the city of west Memphis and city hot springs but from the state side it was a reduction a net reduction about thirty million well of the the casino tax if you recall the first thirty one million of went to a general revenue and beyond that I believe highway funding I don't know that before I remember Jake because the governor made it part of our our previous session that he would dedicate amount above certain would go toward the R. dot and I yes Sir and that's not but I'm just curious I'm I know they wrote themselves an amendment in the constitution but I'm wondering how much did they get to cut their taxes the state was receiving some were just north of sixty million dollars annually from the games of skill and now our in the thirty million ninety the lower than that so we're looking at more than fifty percent. Reduction. Yeah. We have those numbers will we can get them to you have a great thank you thank you very much missed wealth thank you Mr chairman you will get those numbers to staff and will get those out all the committee members thank you. What we do Representative rye I believe that you would see twenty four you're recognized for a question. Yes Sir thank you Mister chairman of folks on page two twenty one. A. About three fourths the way down on the budget request it mentions seventeen point five percent. Of causing a revenue to to the commercial banks that we were speaking about earlier today. Is the seventeen point five percent is this the state's portion. Of a. Of the taxation for that price you are those two projects the seventeen and a half percent is in Houston amendment one hundred there's a lower percentage is in amendment one hundred and then it goes to seventeen at half percentage with the revenues go over certain amount I don't have those memorized with the way the amendment is it's like I'm gonna say it was a fifteen percent and then what it passes a certain amount of revenue goes to seventeen and a half as my memory. Okay thank you Sir and thank you Mr chairman. By seeing no questions drive a motion for executive wrecked. I have a motion and a second all those in favor say aye. All opposed us have it so with that committee will go ahead and break right here and when we come back at one thirty. Of we'll start with tobacco control board.