02:56
Senator Gilmore
Members, if you would, let’s go ahead and take our seats so we can get started. We’re going to start very shortly. All right, 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 and a second. All in favor say aye. And I neglected to start with a prayer, so we’re going to go to Representative John Carr right now.

05:23
Representative John Carr
Let us pray. Father God, we come to you today. Lord, 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 they’ll be great for our constituents here in the state of Arkansas. Lord, I just pray you continue to have your hand on 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 thank you for the day and thank you for the weather and just pray you stay with us at this time. It’s in your son’s precious name. Amen.

06:15
Senator Gilmore
Senator King, do you have a question?

06:17
Senator King
Oh, I’m sorry, I just have a question when it comes to the report of the Executive Committee. That’s it on E. 

06:22
Senator Gilmore
You’ll be recognized then, if you would light up at that time. All right, members, moving right along the next is the presentation of the revenue report by Dr. Silva. If you would make your way to the table, doctor, and you may proceed once you recognize yourself.

06:43
Carlos Silva
Thank you, Mr. Chairman. Carlos Silva, Bureau of Legislative Research. And today I’m presenting the October 2024 revenue report. As you look on page number one, you see gross general revenues year to date at $2,631 million. That is a decline of $85.8 million from last fiscal year to date. There’s a 3.2% decline. As we move to net general revenue available for distribution, we’re going to have $2,224 million. That is also a decline of $64.5 million from last fiscal year to date which is approximately 2.8% of the difference between those two dates there. As we move to page number two, you’re going to see our cumulative deviation from DFA net general revenue available for distribution forecast. That is based on the August 2024 forecast. The agency provided a forecast yesterday, 11/14/2024, and it’s available on your packages.

So as we move forward here, we’re going to see page number three and number four is general revenues detailed. As page five to page seven, you’re going to have special revenues detailed there. As we look into this month you’re going to see consumer confidence and sentiment has increased in the last few months. We have looked at the national level. Total debt has increased. Just aggregate that. As we look into that true income there has been a stable but unfortunately as we look into that true income rate one of the issues we see there is that does not take into account the different income groups. And as we start looking a little bit more into the different income groups you have seen that the high income group has started to pull out a little bit of their spending.

So we are following that and we can talk to the members more about that if there’s some needs. And when you look into the unemployment rate, the US is still stable at 4.1 and Arkansas at 3.3. For the last few months CPI has slightly increased from 2.4 to 2.6. But as we look into detail CPI October 2023 was a little bit lower and that’s why we see this slight increase here as we move from 0.1 in 2023 October to 0.2 here in this month and we see that bump and that is that’s what’s going on. So with that I’ll take any further question. Thank you.

09:05
Senator Gilmore
Thank you Dr. Silva. Members, do you have any questions? And I would point out that on your desk is the updated official general revenue forecast for fiscal years 25, 26 and 27. Any questions for Dr. Silva? Seeing none, thank you doctor. All right, members. Moving right along, the report of the Executive Subcommittee and recognizing Representative Eubanks.

09:26
Representative Eubanks
Thank you Mr. Chair. The Executive Subcommittee met on November 13th and heard from Perr & Knight with an update on their work on the property insurance captive feasibility study. In addition, the Subcommittee adopted an amendment to the Perr & Knight 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 are not voting on this rule today because the rules require at least six days’ notice and therefore this rule will not be voted on until December. Mr. Chairman, I move adoption of this report.

10:19
Senator Gilmore
Thank you sir. I have a motion. I have a second. Any discussion? Senator King, you’re recognized for discussion.

10:26
Senator King
So just to answer a question on the rule change, basically what this says is during the legislative session when all Council members are here, this would allow only eight members to be able to decide these consulting contracts. So it consolidated just to eight members, right?

10:43
Senator Gilmore
Senator King, that would increase to eight versus two right now as the rule currently stands. And I look to staff for confirmation of that.

10:52
Senator King
Okay. And then on this Perr & Knight, we’ve seen where DEI, a lot of Republicans make a big deal about a college professor teaching DEI. This Perr & Knight, I mean, they’re big DEI pushers if you go to their webpage. And I’ve been a real critic of these consultants in the last 10 years. You want to talk about Arkansas tax dollars going out of state, we’ve sent over $600 million just to about six or seven firms outside the state for consulting services. So this is a bigger issue of wasting money. 

But I mean, I just feel like this Perr, whatever they are, if we’re going to keep– If you’re going 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 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 wastes money that could be used for the needy, too. So 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 a London, England, company to advise on film tax credits. So I just feel like at some point, nothing stops till it stops. I’m just going to object to this.

12:19
Senator Gilmore
Your objection is noted, Senator King. Thank you.

12:22
Senator King
No, I guess I will ask for no vote on the Executive Council meeting.

12:29
Senator Gilmore
Thank you, Senator King.

12:31
Senator King
I just need to be recognized for a motion to not accept it.

12:35
Senator Gilmore
Would that be a substitute motion? Because we have a motion and a second now. We were about to vote.

12:39
Senator King
Well, we’ll have to make a substitute motion now. I didn’t hear the motion and the second. Went pretty quickly. But I’m going to make a substitute motion to not accept the Executive Committee report.

12:49
Senator Gilmore
Okay, Members, do we have a second on the substitute motion? All right, we have a motion, a second. All in favor? Any discussion? Any discussion? Senator Chesterfield, you’re recognized.

13:06
Senator Chesterfield
Well, as one of those persons who is a strong believer in diversity, equity and inclusion, I was somewhat taken aback by the speech from my colleague here. Of course, I understand that people think that other people are going to 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 we have both male and female, which is a part of the conversation about diversity. Women are underrepresented in too many things in this country and in this state. We have underrepresentation of qualified people.

We are not talking about giving people jobs for which they are unqualified, but we are talking about recognizing that this country, which has been called the great melting 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 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 particular body do not recognize the necessity for inclusion. They don’t recognize that Linda Chesterfield brings a unique perspective to this body. They don’t recognize that as a woman, Frances Cavenaugh 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, Senator King and I, and just visit about his perspective and mine, because we’re going to 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 no vote.

16:06
Senator Gilmore
Thank you, Senator. Representative Cavenaugh, you are recognized.

16:10
Representative Cavenaugh
Thank you. Mr. Chair. I just want a clarification. This rule change only applies to the contracts that were going through the Policymaking Committee. It does not apply to the contracts going through Review. Is that correct?

16:24
Senator Gilmore
That would be correct.

16:25
Representative Cavenaugh
I just wanted to clarify that. So it’s not all contracts, it’s only those few select contracts that had gone through Policy making. Thank you.

16:32
Senator Gilmore
Thank you, Representative. Senator Dismang, you’re recognized.

16:35
Senator Dismang
And this is just a clarification. Who was the second on the motion for the substitute?

16:41
Senator Gilmore
I heard Senator Hill.

16:43
Senator Dismang
Okay.

16:46
Senator Gilmore
All right. Speaker Shepherd, you’re recognized.

16:49
Representative M Shepherd
Thank you, Mr. Chair. And just for a point of clarification, maybe. Maybe Ms. Garrity can clarify this. But as far as this Executive Subcommittee report, the contract is already in place. 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?

17:11
Marty Garrity
That is correct. The amount of the contract has not changed.

17:17
Senator Gilmore
Senator Payton, you’re recognized.

17:19
Senator Payton
Thank you, Mr. Chair. I’m just trying to catch up on exactly what we’re voting on. 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 rule change?

17:43
Senator Gilmore
I believe it would delay that, but I would defer to staff to make sure that I’m accurate.

17:48
Marty Garrity
Senator Payton, the vote by Executive was to provide this body notice that this vote will come up in December, I think. And I need to look at this, but I think you all have notice now. I mean, per the ALC rules, you have been given notice that there will be a proposed rule change at the December meeting.

18:10
Senator Payton
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?

18:19
Marty Garrity
You’ve been given notice. That’s correct.

18:20
Senator Payton
Okay. Thank you.

18:23
Senator Gilmore
Senator Hammer, you’re recognized.

18:25
Senator Hammer
Would the chair restate the motion that we’re going to be voting on, please?

18:29
Senator Gilmore
We are voting on Senator King’s substitute motion, which I was about to go to him to close for that, if he’d care to restate his substitute motion.

18:37
Senator Hammer
Thank you.

18:38
Senator Gilmore
Senator King, would you care to restate your substitute motion?

18:42
Senator King
Yeah, it’s just a motion not to accept the report. And let me. Senator Chesterfield 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 you know, I’ve been someone that I’m not a fan of DEI and that I’ve been a longtime Republican being against affirmative action years ago. That’s a pretty path that I’ve done. But 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 send our tax dollars out of state. Whether it’s San Francisco, London, England, wherever else, and you waste money on that, well, you’re hurting extra money that could be used to help the truly needy too.

So this is a twofold 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 the issue that’s been in the paper. And when you have extra money and you 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 six or seven companies that’s received $600 million. Do you know how much $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, our audit staff and our staff could do those reports. 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 going to tell you 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. 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.

20:58
Senator Gilmore
Thank you, Senator King. All right, members, you’ve heard the substitute motion. I will call for all those in favor of the substitute say aye. Any opposed? No’s have it. We will now vote to adopt the underlying motion of the Executive report. All in favor, say aye. Any opposed? Ayes have it. Thank you. Moving right along, members, we’ll move to the Administrative Rules. Senator Hammer, you’re recognized.

21:33
Senator Hammer
Thank you, Mr.  Chair. The 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 rule was reviewed and approved with the change as presented by the agency during the meeting. Two rules will be placed on the December agenda due to a lack of second to a motion to suspend the Subcommittee rules. And all the rules were reviewed and approved as noted in the report. And Mr. Chairman, I move for the adoption of the report.

22:11
Senator Gilmore
I have a motion to adopt. I have a second. Any discussion? Seeing none, all those in favor say aye. Any opposed? Ayes have it. Moving to the EBD reports. Representative Pilkington, you are recognized.

22:26
Representative Pilkington
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 approved 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 move for the adoption of this report.

22:54
Senator Gilmore
Thank you, Representative. I have a motion to adopt. I have a second. Any discussion? Seeing none, all those in favor say aye. Any opposed? Ayes have it. Moving down to the Peer report. Representative Cavenaugh, you’re recognized.

23:09
Representative Cavenaugh
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 move for adoption of the report.

23:32
Senator Gilmore
Thank you, Representative. I have a motion. I have a second. Any discussion? Seeing none, all those in favor say aye. Any opposed? Ayes have it. Moving down to the Review report. Representative Eaves, you’re recognized.

23:46
Representative Eaves
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.

24:16
Senator Gilmore
All right, members, I have a motion. And I have a second. Any discussion on the motion? Seeing none, all those in favor say aye. Any opposed? Ayes have it. Moving down to the Personnel report. Representative Berry, you’re recognized.

24:34
Representative Mark Berry
Thank you, Mr. Chairman. The Personnel Subcommittee met on the 12th and the Committee reviewed the items listed as one to four in the report and approved each item as listed. I will take questions and move for adoption of the report.

24:48
Senator Gilmore
All right, I have a motion. I have a second. Any discussion? Seeing none, all those in favor say aye. Any opposed? Ayes have it. All right, members, we’re moving down to item H from AID. It’s a report from AID. Are they here? I will call them to the table to present. If you would recognize yourself for the record.

25:48
Booth Rand
Thank you, Mr. Chair. My name is Booth Rand, General Counsel of the Arkansas Insurance Department.

25:53
Jake Windley
Jake Winley, Director of Legislative affairs for the Department of Commerce.

25:57
Booth Rand
Thank you. The Executive Committee is requiring the Insurance Department to report various PBM activities that have been developed by the Insurance Department and to report to this body each month about PBM activities. For many of the members, they may already be aware of the fact that the Insurance Department is promulgating a rule related to pharmacy reimbursements and dispensing costs. We held a public hearing on Rule 128 addressing that topic on October 22, 2024. And we have been receiving public comments on the rule. So far, we have received over 85 public comments, many of which are in favor of the rule. But we have quite a significant number who are opposed to the rule.

The administrative records is now closed and the Insurance Department is drafting a final version of the rule, as well as a bulletin that is going to attempt to implement that rule. 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. We still have continuing pending enforcement actions against Express Scripts, CVS and Magellan. And these are ongoing. This last month we received over 2,106 NADAC reimbursement complaints. And we have made about approximately 70 reimbursement adjustments in response to those violations. I’ll be glad to answer any questions, if you have any.

27:34
Senator Gilmore
Thank you for the report. Do we have any questions? I see Senator Hammer. You are recognized.

27:38
Senator Hammer
Thank you, Mr. Chair. Did you say that the public comments– you said you received approximately 85. Is that what you said? And those are up on your website?

27:47
Booth Rand
Yes, sir.

27:48
Senator Hammer
Okay. Thank you.

27:52
Senator Gilmore
All right, members, seeing no other questions. Thank you for your presentation.

27:55
Booth Rand
Thank you, Mr. Chair.

27:56
Senator Gilmore
And then we will move to item H8. Sorry. And that would be DHS. Madam Secretary, if you would please come to the table and recognize yourself for the record.

28:29
Kristi Putnam
Good morning. Kristi Putnam, DHS Secretary. And I also hope you all don’t mind. I also brought our new Chief of Staff.

28:38
Senator Gilmore
Welcome and congratulations on your new position. Madam Secretary, you are recognized to proceed.

28:44
Kristi Putnam
Thank you. So our report as Directed by Section 15 of Act 213 of 2022, I am reporting to the Arkansas Legislative Council the status of our efforts regarding reimbursement rates under the Living Choices Assisted Living Waiver. DHS has completed all work necessary to implement Act 198 of 2023, which authorized DHS to assist establish cost reporting for Medicaid funded assisted living facilities.

29:10
Senator Gilmore
Madam Secretary, I’m sorry to interrupt. Would you mind pulling that microphone? I’ve got members that are having. Thank you.

29:17
Kristi Putnam
I might have to use my teacher voice. 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 quite a bit. Public comment responses were compiled and posted on March 4, 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 3, 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 1, 2024. 

DHS presented the proposed rate increase to Public Health on August 14 and received full ALC approval on August 23. Living facilities were reimbursed at the new rate retroactive to July 1, 2024. The new rate was implemented effective September 1 for all new claim submissions and all claims submitted between July 1 and August 31 were reprocessed and an adjustment to those payments was made on October 4, 2024. 

And just in full transparency, 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 payments that were made to all providers and all information has been presented correctly at this time. 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, 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. And we also will continue the immediate email and text notifications when we do get updates from these facilities. And that concludes our report.

31:20
Senator Gilmore
Thank you. Madam Secretary. Do we have any questions? I see Senator Chesterfield. You’re recognized.

31:25
Senator Chesterfield
Thank you, Mr. Chair. Madam Secretary, as you speak of the closures, what impact is that having on services?

31:32
Kristi Putnam
So the impact on services, we have not had a significant number of closures. We have had changes of ownership 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. We have people who live in these facilities. Some receive Medicaid services.

31:54
Kristi Putnam
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.

32:02
Senator Chesterfield
And so we have done that?

32:03
Kristi Putnam
Yes, ma’am.

32:04
Senator Chesterfield
All right. Thank you. Thank you, Mr. Chairman.

32:06
Senator Gilmore
Thank you, Senator. All right, members, we have several reports on the agenda. If you look at those, have any questions. Madam Secretary, you’re dismissed. Thank you.

32:14
Kristi Putnam
Thank you very much.

32:15
Senator Gilmore
If you have any questions on those, please let us know. I know we have a report from the JPR Committee. If there’s any questions, I know Senator Hammer is here. But seeing none, we’re going to move down to Item 9B, Division of State Parks. This is a request for favorable advice to establish a new state park or may acquire real property. If there’s any questions on that, please let me know. Seeing none, I need a motion to give favorable advice. I have a motion. I have a second. Any discussion? Seeing none, All those in favor say aye. Any opposed? Ayes have it. Thank you. Members, I see nothing else on the agenda but reports, and seeing no questions on either of those reports– Hang on one second. All right, members, seeing no further business, we are adjourned.