Arkansas Legislative Council (ALC)

Members, if you would, let's go ahead and take our seats so we can get started. We're gonna start very shortly. Our members, let's get our seats so we may begin. Calling to order the Arkansas Legislative Council. Good morning to you all, and I would entertain a motion to approve the minutes of the October 18th. All right, I have a motion to 2nd. All in favor say aye. And I neglected to start with a prayer, so we're gonna go to Representative John Carr right now. Let us pray. Father God, we come to you today, Lord, uh, we, uh, we're very thankful for the blessings that you bestowed on our state and our nation, Lord. Just pray you bestow wisdom upon us today that we make decisions pleasing to you and that will be great for our constituents here in the state of Arkansas, Lord, I just pray you continue to have our hand on our our state and our nation, Lord, and just help us keep looking to you for wisdom and guidance, Lord, for you are the one. We just, uh, thank you for the day and thank you for the weather and just, uh, just pray you keep, stay with us at this. Senator King, do you have a question? Oh, I'm sorry. I, I just have a question when it comes to the report of the executive committee, that's it on E. OK. You'll, you'll be recognized then if you would light up at that time. All right, members moving right along, um, the next is the presentation of the revenue report by Doctor Silva, if you would make your way to the table, doctor, and you may proceed once you recognize yourself. Mr. Chairman Carlos Silva, Bureau of Legislative Research, and then I'm presenting the October 2024 revenue report as you look on page number one, you see gross general revenues year to today at $2,631 billion. That is a decline of $85.8 million from um last fiscal year today, that's a 3.2% decline as we move to net general revenue available for distribution you're gonna have $2,224 million. There's also a decline of 64.5 million. phone last fiscal you date, which is approximately 2.8% of um the difference between those two. dates there as we move to page number 2, you're gonna see our cumulative deviation from DFA net general revenue available for distribution forecast that is based on the August 2024 forecast, the agents has provided forecast yesterday, 11-14, 2024, and it's available on your packages, so, um. As we, we move forward here, we're gonna see page number 3 and number 4 is general revenues detailed as page 5 to page 7, you're gonna have special revenues, uh, detailed there. As we look into this month, you're gonna see uh consumer confidence and sentiment has increased in the last in the last few months we have looked at a national level total debt has increased, but um. Just, uh Aggregate that as we look into that to income, there has been a stable, but unfortunately as we look into that income rate, one of the issues we we see there is that does not take into account the different income groups and as we, we start looking a little bit more into the different income groups that have seen that the high income group has started to pull out a little bit of the spending, so we are, we are following that and we can talk to the members more about that if, if there's some needs and uh when you look into unemployment rate, the US still stay about 4.1 and our 3.3 for the last few months, CPR has this slightly increased from 2.4 to 2.6, but um, as we look into detail CPI, uh, October 2023 was a little bit lower and that's why we see this is slight increase here as we move from 0.1 in 2023 October to 0.2 here on this month and we see that bump and that is, that's what's going on. Um, so with that, I'll take any further question. Thank you. Thank you, Doctor Silva. Members, do you have any questions? And I would point out that on your desk is the updated the official general revenue forecasts for fiscal years 25, 26, and 27. Any questions for Doctor Silva. See none. Thank you, doctor. All right members moving right along the report of the executive subcommittee and recognizing, uh, Representative Eubanks. Thank you, Mr. Chair. The executive subcommittee met on November 13th and heard from Perry Knight with an update on their work on the property insurance captive feasibility study, in addition, the subcommittee adopted an amendment to the paren night contract that adjusted the scope of work. The subcommittee also recommended approval of an amendment to the ALC rules, a copy of the draft amendment is attached to this report. The amendment abolishes the policymaking subcommittee and transfers those duties to the. Executive subcommittee. Under the ALC rules, final approval of this proposed amendment will be taken up at the December ALC meeting. I repeat, we're not voting on this rule today because the rules require at least 6 days' notice and therefore this rule will not be voted on until, uh, December, Mr. Chairman, I move adoption of this report. Thank you, sir. I have a motion. I have a second, um, any discussions, Senator King, you're recognized for discussion. Yeah, so just to answer your question on the real change, basically what this says is during the legislative session when all council members are here, this would allow only 8 members to be able to decide these consulting contracts. So it consolidated just to 8 members, right? Uh, Senator King, that would, uh, increase to 8 versus 2 right now is the, the rule currently stands, and I look to staff for confirmation of that. Yeah, OK. And then on this per night, you know, we've seen where, uh, DEI, a lot of Republicans, Make a big deal about a college professor teaching DEI this per night, I mean, they're big DEI pushers if you go to their web page, and I've been a real critic of these consultants in the last 10 years, uh, you want to talk about Arkansas tax dollars going out of state. We've sent over $600 million just at about 6 or 7 firms outside the state for consulting services. So this is a bigger issue of wasting money, but, I mean, I just feel like that this curve, whatever they are, you know, If we're gonna keep, if you're going on one hand, say, well, I'm not for these DEI contracts on these other people, but then we're going to turn around and give contracts to these consultants, which are the biggest DEI people out there. I just feel like it's, uh, not something we should do. We should be consistent if you vote that way. And also, this consulting contract, when we send all these hundreds of millions of dollars to these consultant contracts. A lot of them just advise us on how to tie our shoes. That waste money that could be used for the needy too. I just feel like, once again, it needs to stop. Last month, we gave 340,000 to a San Francisco company to advise us on business contracts, 100,000 to London, England divides on film tax credits. So, I just feel like at some point, nothing stops till it stops. I'm just gonna object to this. Uh, your objections noted, Senator King, thank you. Now I'm, I guess I'll ask for a no vote on the executive, uh, meeting. Uh, think. Thank you, Senator King. We're, we're I just need to be recognized for a motion to, to not accept it. Would that be a substitute motion because we have a motion in 2 now we were about to vote. Well, we'll have to make a substitute motion now. I didn't hear the, the motion in the second went pretty quickly, but, uh, I'm gonna make a substitute motion to not accept the executive committee report. OK? Uh, members, do we have a second on the substitute motion? All right, we have a motion to 2. All in favor. Any discussion? Any discussion? Uh, Senator Chesterfield, you're recognized. Well One of those persons who is a strong believer in diversity, equity and inclusion. I was somewhat taken aback by By the speech from my colleague here, of course I understand that uh people think that other people are gonna get something. At their expense, which is not what this is about at all. It is about recognizing that in this country, we are diverse. We are not one people. We are a plethora of people. Coming from different backgrounds, different races, ethnicities, and certainly, uh, we have both male and female, which is a part of the conversation about diversity. Women are underrepresented. And too many things in this country and in this state. We have underrepresentation of qualified people. We're not talking about giving people jobs, but which they aren't qualified. But we are talking about recognizing that this country, which has been called the great melting pot pot. Is now just a big pot of people who don't want to recognize that others have a right. To have some representation. In this great state as we as we give out contracts. I have told those who want to bring contracts or ask for grants, please don't include those names because you're automatically doomed because the people of this of this particular body do not recognize the necessity for inclusion. They don't recognize that London Chesterfield brings a unique perspective to this body. They don't recognize that as a woman Frances Kavanaugh brings a unique perspective to this body. They don't recognize. That each and every person in this room is unique and each and every person in this room brings a unique perspective to this body. And so while I understand the political games that are being played and for my friend Brian King, he doesn't play games. He's just as serious as he can be, and I'm just as serious as I can be. This is not a reason. I don't know who decided on the language, but they know the political climate in which we live and when they include this kind of stuff, they almost doom a contract. Because they dare to say in this state we recognize or the individuals with whom we do business recognize. That we are not just a monolith, but we are made up of a plethora of individuals who bring unique perspectives and unique experiences to the conversation. So I am against the substitute motion. I hope it fails. I hope that we will be able to sit down collegially, uh, Senator King and I and just visit about his perspective and mine because we're gonna continue to be friends regardless of our differences on this issue, but I do differ, and I guess it's just frustrating. to me that after all these years, we're having a conversation now in the state of Arkansas that says, People who look like me don't matter our perspectives don't matter, and if you think that's not what you're saying, it's exactly what you're saying to me. Thank you. I'd appreciate a note. Thank you, Senator, uh, Reg Kavanaugh, you are recognized. Thank you, Mr. Chair. I just want to clarification. This rule change only applies to the contracts that we're going through the policymaking committee does not apply to the contracts going through review. Is that correct? That would be correct. I just want to clarify that. So it's not all contracts, it's only those few select contracts that had gone through policymaking. Thank you. Thank you, Representative Senator Dismay, you're recognized and this just clarification was the second? On the motion for the substitute. I heard Senator Hill. OK. All right, uh, Speaker Shepherd, you're recognized. Thank you, Mr. Chair. And just for a point of clarification, maybe, maybe, uh, Miss Gerty can clarify this, but as far as this executive subcommittee report, the contract is already in place. This, this concerns contract amendments as far as what's part of this report and those amendments relate more to process than anything else. Is that correct? That is correct. The amount of the contract has not changed. Senator Peyton, you're recognized. Thank you Mr. Chair. I'm just trying to catch up on exactly what we're voting on, uh. It was said that the rule change would be at the next meeting. So, By blocking Or by voting yes or no on reviewing. The report. What does that do to the, to the rule chain. I believe that it would delay that, but I would defer to staff to make sure that I'm accurate. Senator Peyton, the, the vote by executive was to provide this body notice that this vote will come up in December. Um, I think. And I need to look at this, but I think y'all have noticed now. I mean, for the agency for the uh ALC rules, you have been given notice that there will be a proposed rule change at the December meeting. So the vote for or against reviewing the report has no effect then on the fact we'll be voting on the rule change next month. You've been given notice, that's correct. OK, thank you. Senator Hammer, you're recognized with the chair restate the motion that we're going to be voting on, please. We are voting on Senator King's, uh, substitute motion, which I was about to go to him to close for that if he'd care to restate his substitute motion. Thank you. Senator King, would you care to restate your substitute motion? Yeah, it's just a motion not to accept the report and let me, Senator Chester Field and I have known almost going back 20 years, and I appreciate what she says when I say what I mean and mean what I say. But, uh, you know, I've been someone that, you know, I'm not a fan of DEI and that, I mean, a longtime Republican being against affirmative action years ago. That's a pretty path that I've done, uh, but, uh, the other flip side of this is too that to my other colleagues that might not agree with that is when you waste money and you give money to these consultant contracts and you see our tax dollars out of state, whether it's San Francisco, London, England, wherever else, and you waste money on that, well, you didn't, you're hurting extra money that we could be used to help the truly needy too. So this is a two-fold thing. One is what standard do you have and you want to get on some college professor about teaching DEI or some librarian, and then all of a sudden you have this standard, and then all of a sudden, we need to have money to help the needy, whether that's helping, uh, the, the issue that's been in the paper. And when you have extra money, and you don't don't waste money in one area, you have more money somewhere else. So this consultant stuff has been so out of hand, like I said, in the last 10 years, there's about 6 or 7 companies that received $600 million. Do you know I'm at $600 million could go to help the needy. And why do we send that money out of state to get these people to do it. We've got people here in Arkansas if we even need it. Many of these consultant reports are audit staff and our staff could do those reports. OK? And we're giving these millions, so I just urge, like I said, nothing stops until it stops. Senator Chesterfield and I can have a discussion about that. We've had very good discussions. She knows me as well as I know her, but I'm gonna tell you, you know what, you can't have one standard for one people and go out there and preach to them and tell them how wrong it is for them to do something, and then you do something else with hundreds of millions of dollars of our hard-earned tax dollars that you send to San Francisco or London, England, or wherever, Florida. So, the other part is, if you want to have money to help the needy, you've got to cut waste fraud and abuse. Elon Musk and Vivek are now trying to cut waste. We're at the Arkansas in 2015 was the largest spending state per capita per tax dollar of our surrounding states. That means we waste the most amount of money. So anyway, I just appreciate a no vote. Thank you, Senator King. All right, members, you've heard the substitute motion. I will, uh, call for, uh, all those in favor of the substitute say aye. Any opposed? knows habit. Uh, we will now vote to adopt the underlying motion of the executive report. All in favor say aye. Any opposed? I have it. Thank you. Moving right along. Members, uh, we'll move to the, uh, administrative uh rules. Uh, Senator Hammer, you're recognized. Thank you, Mr. Chair. It's subcommittee met on November 14th. The subcommittee received and filed quarterly reports by the Department of Corrections and post-prison transfer board, the subcommittee received agency updates on outstanding rulemaking from the 2023 regular session subcommittee filed a written update related to rulemaking from the 2024 fiscal session, one row was reviewed and approved with the changes presented by the agency during the meeting, two roles will be placed on the December agenda due to a lack of second to a motion to suspend the rules and all the rules were reviewed and approved as noted in the report, and Mr. Chairman moved for the adoption of the report. All right, I have a motion to adopt. I have a second. Uh, any discussion? See none. All those in favor say aye. Any opposed? I have it. Moving to the EBD reports, uh, Representative Pilkington, you are recognized. Thank you, Mr. Chair. The employee benefit division oversight subcommittee met on Thursday. The subcommittee adopted the final report of the diabetes management study to the Arkansas Legislative Council. The subcommittee reviewed and proved actions by the state Board of Finance, including EBD formulary reports for September, October and November 2024. Medical drug recommendations for November 2024, and EBD contract amendments with HMO Partners Incorporated and Mainstream technologies. I moved for the adoption of this report. Thank you, Representative. I have a motion to adopt. I have a second, any discussion, see none. All those in favor say aye. Any opposed? Eyes have it. Uh, moving down to the peer report, uh, Representative Kavanaugh, you're recognized. Thank you, Mr. Chair. The peer subcommittee met on Tuesday, October 5th, the subcommittee received reports, reviewed requests, and approved the following. Various temporary appropriations, American rescue Plan Appropriations, infrastructure investment and Jobs Acts appropriation and restricted reserve fund transfers. I moved for adoption of the report. Thank you, Representative. I have a motion. I have a second. any discussion, see none. All those in favor say aye. In your post, eyes have it, uh, moving down to the review report, Representative Eaves, you're recognized. Thank you, Mr. Chairman. The review subcommittee met on Thursday and reviewed the agenda items including MOFs, alternative delivery construction projects, grants and contracts. The committee held contract 11 on page 7 of the report for additional information. That information has been received, but the hold has not been released. In addition, there was a ratification approved for a contract with UAPB on page 8. I move adoption of the report. All right, members, I have a motion and I have a second. Any discussion on the motion? See 9, all those in favor say aye. In your post, eyes have it. Uh, moving down to the uh personnel report, uh, Representative Barry, you're recognized. Thank you, Mr. Chairman. The personnel subcommittee met on the 12th and the committee reviewed the items listed as 1 to 4 in the report and approved each item as listed. I will take questions and the move for adoption of the report. All right, I have a motion. I have a second. Any discussion? See none all those in favor say aye. And he opposed, I have it. All members, we're moving down to item H, um from AID, it's a report from AID, uh, are they here? I'll call them to the table to present. If you would recognize yourself for the record. Thank you, Mr. Chair. My name is Booth Rand, general counsel of the Arkansas Insurance Department. Jake Quinley, director of Legislative affairs for the Department of Commerce. Thank you. Um, the executive committee is requiring the insurance department to report various PBM activities that have been, uh, developed by the insurance department and to report to this body, um, each month about PBM activities, um, for many of the members, um, they may already be aware of the fact that the insurance department is promulgating a rule related to pharmacy reimbursements and, uh, dispensing costs, uh, we held a public hearing on Rule 12. addressing that topic on October the 22nd, 2024, and we have been receiving public comments on the rule, um, so far we have received over 85, uh, public comments, uh, many of which are in favor of the rule, but we have quite a significant number who are opposed to the rule, um, the administrative records is now closed and um the insurance department is, is drafting a final version of the rule as well as a bulletin that is going To attempt to implement that rule. Um, we have all of the transcripts of the public hearing available on our website, all the public comments are on our website for members to review if they would like to. Uh, we still have continuing pending enforcement actions against Express Scripts, CVS and Magellan, and these are ongoing. Um, this last month, we received over 2,106 NAA reimbursement complaints, and we have made about approximately 7 reimbursement adjustments in response to those violations. I'll be glad to answer any questions if you have any. Thank you for the report. Uh, do we have any questions? I see Senator Hammer, you were recognized. Commission chair, did you say that the, uh, the public comments, you said you received approximately 85, is that what you said? And those are up on your website. OK, thank you. All right, members see no other questions. Uh, thank you for your presentation. Thank you, Mr. Chair, and then we will move to, uh, item H. Uh 8. Sorry, um, and that would be DHS. Madam Secretary, if you would please come to the table and recognize yourself for the record. Good morning, Christy Putnam, DHS secretary, and I also, I hope you all don't mind, I also brought our, our new chief of staff. Welcome and congratulations on your new position. Madam Secretary, you, you recognize to proceed. Thank you. So our report as directed by Section 15 of Act 213 of 2022. Um, I am reporting to the Arkansas Legislative Council, the status of our efforts regarding reimbursement rates for under the under the living Choices Assisted Living waiver. DHS has completed all work necessary to implement Act 198 of 2023, which authorized DHS to establish cost reporting for Medicaid funded assisted living facilities. Madam Secretary, I'm sorry to interrupt. Would you mind pulling that microphone? I've got members that are having trouble here. Thank you. I might have to use my teacher voice. Um The uh the agency is preparing to I'm sorry, the agency is preparing to begin the next cycle of annual cost reporting in January of 2025. The first cost report analysis we've previously reported on, uh, quite a bit, public comment responses were compiled and posted on March 4th, 2024, and those responses can still be found online and that website is listed in the letter that we sent to the council. On July 3rd, 2024, DHS received formal approval from CMS of the Living Choices waiver amendment, approving the new proposed rate of $86.73 to begin on July 1st, 2024. DHS presented the proposed rate increase to public health on August 14th received full ALC approval on August 23rd, and assisted living facilities were reimbursed at the new rate retroactive to July 1st, 2024. The new rate was implemented effective September September 1st for all new claims. submissions and all claims submitted between July 1st and August 31st were reprocessed and an adjustment to those payments was made on October 4th, 2024. And just in full transparency, uh, we had some communications with Senator Rice and a few other legislators. We provided some information that was not completely accurate. We went back and corrected regarding the, the payments that were made to all providers and all information has been presented correctly at this time. Um, annual cost reporting for Medicaid funded assisted living providers will now be conducted in accordance with Act 98 of 2023. The results of this annual cost reporting analysis will be shared with ALC. And finally, as requested during the May 31st ALC meeting, uh, we have attached the report on facility change of ownerships or closures for the previous month of October. And as part of this report, we will continue to provide an updated list of such closures or changes of ownership. We are not aware of any pending currently, um, and we also will continue the immediate email and text notifications when we do get updates from these facilities, and that concludes our report. Thank you, Madam Secretary. Do we have any questions? I see Senator Chesterfield, you're recognized. Thank you, Mr. Chair. Madam Secretary, as you speak of the closures, what impact is that having on services? So the impact on services, we have not had a significant number of closures. We have had changes of ownership, uh, which does not have an impact typically the residents are able to stay and it's just a different owner. The one closure we reported in October was to a residential care facility, which is different from assisted living facility. Um, we have people who live in these facilities. Some receive Medicaid services, and when we have individuals who are at the residential care facilities who are receiving Medicaid, we do assist in making sure that they have another place to live. And so we have done that. Thank you, thank you Mr. Chair. Thank you, Senator. All right, members, um, we have several reports on the agenda if you look at those, have any questions, Madam Secretary, you're, you're dismissed. Thank you. Thank you very much. Um, if you have any questions on those, please let us know. Uh, I know we have a report from the JPR committee. If there's any questions, I know Senator Hammer's here, um, but seeing none, uh, we're gonna move down to item 9B division of State Parks. This is a request for favorable advice to establish a new state park or acquisitions real property, um, if there's any questions, on that, please let me know. See none. I need a motion to give favorable advice. I have a motion. I have a second. Uh, any discussion? See, none all those in favor say aye. Any opposed? Uh, I have, I have it. Thank you. Um, members, I see. Nothing else on the agenda but uh reports and seeing no questions on either those reports, um, Hang on one second. All right, members see no further business. We are adjourned. Thank you.