Keywords: 1204, all

Keywords: 1204, all

Summary: The committee first approved the minutes and then heard an emergency rule from the Department of Human Services on hospital-based residential treatment for adolescents with substance use disorders. Paula Stone explained that the rule would allow Medicaid reimbursement for services in a separate unit within a general hospital, beginning with Unity Hospital in Searcy, which plans to open a 24-bed adolescent unit. Members asked about licensure, length of stay, and cost; Stone said the unit would be licensed by the Arkansas Department of Health, length of stay would be based on ASAM criteria rather than a fixed cap, and the proposed Medicaid rate was $850 per day pending CMS approval. The committee then considered an electronic visit verification rule for in-home personal care, attendant care, respite care, and home health services. Elizabeth Pittman said the update was intended to keep Arkansas compliant with federal EVV requirements, increase electronic claims submission, and allow audits and corrective action plans for providers with excessive manual claims. She also said the rule would remove the W-9 submission requirement and allow automatic IRS verification. Members confirmed the federal EVV mandate and noted that providers may use the state system or their own third-party system. After the EVV discussion, the rule was reported as reviewed. The chair then adjourned the meeting after no further business was raised.

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Summary: The House Health Services Subcommittee met to approve the October 7, 2024 minutes and then shifted to behavioral health as the main topic. Representatives Wooldridge and Vaught described the work of the behavioral health working group, saying Arkansas needs a more proactive system focused on access, workforce, reimbursement, and reducing red tape. Members raised concerns about provider shortages, licensure barriers, rural access, reimbursement rates, jail-based services, non-emergency transport, and the need for step-down options and crisis diversion before people end up in jail or the state hospital. DHS Director Paula Stone outlined the behavioral health system, emphasizing that Medicaid pays for most behavioral health services in Arkansas and that many services cannot be billed once a person is in jail or the state hospital. She described current efforts including family-centered treatment for children, community reintegration group homes, a new adolescent substance use disorder unit, forensic evaluation and restoration changes, and a planned IMD waiver to allow Medicaid payment for certain psychiatric and residential services. She also explained the backlog at the state hospital and in forensic restoration, the role of therapeutic communities, and the challenges of serving rural and difficult-to-serve populations. Members asked about crisis stabilization units, civil commitment, dashboards for bed availability, and whether Arkansas should expand step-down or long-term facilities. Stone said the state has supported crisis stabilization units in several cities, with mixed results, and noted that Fort Smith and Jonesboro have been more successful than Fayetteville and Little Rock. She said DHS does not yet have a statewide bed dashboard but sees it as a useful tool. The meeting ended with agreement that the discussion was a starting point and that the committee would continue the work, tentatively in August, to develop policy ideas for the 2027 session.

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Summary: The Executive Subcommittee met and first considered an emergency Department of Education rule amending consolidation and annexation rules to implement Act 919 of 2025 and Act 157 of the 2026 fiscal session. The rule addresses the detachment of previously isolated schools into new isolated school districts and the funding transition for parent districts. Department officials explained that the parent districts will continue to receive foundation funding based on prior-year enrollment, declining enrollment funding, and local tax revenue, while 90% of the foundation funding generated by detaching students will be forwarded to the new districts. They also said the rule uses existing, previously unspent department funds and does not require new appropriations. The committee approved the emergency rule without objection, effective upon adjournment of the Legislative Council meeting on June 19, 2026. The committee then approved an emergency Department of Human Services rule allowing hospitals to open separate adolescent substance use disorder units and receive payment for residential services provided to adolescents. DHS said the change amends the hospital manuals to recognize these units. Senator Irvin asked that the item be brought to the Public Health committee for an update, and the committee approved the rule without objection, effective upon adjournment of the June 19, 2026 Legislative Council meeting. Later, the committee heard a Whitehall School District request for a waiver to exceed $1 million through cooperative purchasing for construction services. The district’s athletic director said the vendor’s system offers a longer warranty, has a strong track record, and has provided responsive service, and the project was expected to begin in late August 2026 and finish in November 2026. The committee approved the waiver. In the director’s report, members also approved keeping committee fund allocations the same for the next fiscal year and adopted a motion canceling the July 2026 ALC meeting, allowing subcommittees to meet only on urgent matters and requiring July actions to be reported at the August 21, 2026 meeting.

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Summary: The meeting focused on the state’s “one door/no wrong door” workforce and social services modernization effort, with consultants Mason Bishop and Cameron Christie presenting recommendations. They argued that Arkansas should shift from fragmented programs and multiple access points to a more integrated system that promotes upward mobility, longer labor force attachment, better employer access to talent, greater efficiency, and faster adaptation to changes such as AI and economic shocks. They described the current system as overly siloed, with separate offices, portals, and funding streams that force job seekers and employers to navigate multiple doors and bureaucratic handoffs. The consultants emphasized that Arkansas should treat workforce and safety-net programs more like a coordinated franchise model, with a single point of access, one team, and integrated governance, service delivery, and financial administration. They discussed federal workforce waivers already submitted, a possible cost-allocation plan with the federal Office of Management and Budget, and a potential benefits-cliff pilot. They also said Arkansas Launch is a useful tool but not a full service-delivery system. Members asked how the proposal would affect DHS offices, local workforce boards, TANF, and disability-related services, and the consultants said TANF should be viewed as a workforce program and that Arkansas could consider co-locating or integrating staff, or even merging agencies as Utah did. Committee members repeatedly cited Utah as a model, noting its high workforce participation and lower reliance on Medicaid and SNAP, and asked whether Arkansas could use TANF and other programs to cross-train DHS workers and make county offices more work-focused. The consultants explained Utah’s 1990s reforms, later audits showing improved customer service, and the role of cost allocation in blending funds behind the scenes. They also addressed federal flexibility and said current waiver efforts are a fallback after a broader federal pilot proposal did not advance. The meeting ended with a request to continue examining case management, specifically whether Arkansas should case-manage people rather than programs, and the chair adjourned the meeting.

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Summary: The committee first approved the prior meeting minutes, then heard a presentation from Maddie San Juan of the Women’s Foundation of Arkansas on the report “Holding It All Together: Working Moms and Child Care in Arkansas.” She said the research found Arkansas moms are working and want to work, but face major barriers from inflexible schedules, high child care costs, and the mental load of balancing work and caregiving. The report cited survey and focus group findings showing most mothers want full-time work, with flexibility as the top requested workplace support. It also highlighted that child care costs can consume a large share of family income, with one infant care averaging about $8,900 annually and infant-plus-toddler care about $17,500. She also discussed paid leave, noting many mothers returned to work before six weeks after birth, and shared a personal story from a working mom in Monticello to illustrate the strain families face. Committee members asked about labor force data, flexibility examples, child care voucher changes, and whether state or employer policies could help. San Juan also referenced partnerships with Excel by 8 and business leaders to address child care as both a family and economic development issue. The committee then received an update from the Department of Education’s Office of Early Childhood on several administrative issues. Officials said new internal dashboards had gone live to improve transparency and data tracking for school readiness assistance, including enrollment, applications, and provider participation. They also said the state is continuing the CLASS transition and expects to release transition funding to providers soon, while emphasizing that OEP awards based on CLASS scores are separate from OEC’s work. They warned providers that a system transition from ACE to a new platform will likely delay payments from June 30 through about July 13, with payments owed during that period to be processed once the system is back online. Members also asked about Head Start audit requirements, market rate survey work, and an overpayment case involving a child care center that is under appeal. Additional updates covered early childhood special education funding, with one member raising concerns that inflation has eroded the value of the funds and that rural areas need more early intervention support. Department officials said they would follow up with special education staff to review funding sources and needs. They also discussed the upcoming QRIS work, including a June 23 webinar, and said the local lead network has been recompeted and will consist of 23 local leads covering all counties starting July 1. Officials said the local leads’ job duties remain the same, and that a new stakeholder group has been formed to provide ongoing feedback on PDG and broader early childhood issues. The meeting ended with no further business and adjournment.

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Summary: The committee first approved special expenses incurred by the committee, then took up interim study proposals. The first, ISP 2025-069 by Representative Perry, would move collection of sales tax on motor vehicles from the current registration-based process to the point of sale at dealerships. Representative Eaton presented the proposal, and members questioned DFA about fiscal impact, dealer implementation costs, verification and audit issues, and whether the change would shift burdens to dealers or consumers. DFA said the overall tax amount would not change, but system programming and timing changes would be needed, and dealers would likely face process changes and possibly added costs. Despite concerns from some members and references to opposition from auto dealers, the committee voted to send the proposal to research and passed the ISP. The committee then considered ISP 2025-071, based on House Bill 1636 from the 2025 session, which would phase out Arkansas’s soda excise tax over five years if revenue triggers in the Medicaid Trust Fund were met. Representative Ray explained that the bill had passed committee but failed on the House floor in the prior session, and members discussed the tax’s annual revenue, its dedication to the Medicaid Trust Fund, and whether the proposal would replace lost revenue. Questions were also raised about who controls distributions from the trust fund and whether the legislature has oversight. DFA said it would follow up with DHS on the mechanics and provide additional information. The committee then voted to adopt the interim study proposal, and the meeting adjourned.

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Summary: The committee reviewed several personnel and appropriation items. Item C, a two-for-two position swap with no increase in total authorized positions and recommended by OPM, was approved. Item D, a Department of Higher Education request for South Arkansas College, added three authorized positions overall, including food service, public safety, housing, and project/program support roles, and was also approved. Item E moved positions and $3 million in salary and match appropriation within Workforce Services to consolidate shared services, with no net change in positions; it was approved as well. The committee then considered Items F through O as continuations of previously approved or reviewed personnel actions into FY27. These included growth and surrender pool positions, various pay differentials, hard-to-fill and on-call differentials, a labor market adjustment for crime lab medical examiners, and continuation of several federal grant-funded positions at Commerce, Emergency Management, State Police, and Military Department. No questions were raised, and the block of continuation items was approved on a single motion. Reports were taken up with no action required and were simply noted as reviewed. On the supplemental agenda, the committee suspended the rules and approved Item A-1, which authorized salary increases for 92 employees whose merit raises would place them over their grade maximums. Senator Dotson asked about the public safety entries on the list, and staff indicated they were likely crime lab medical examiner positions. The meeting then adjourned.

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Summary: The State Insurance Programs Oversight Subcommittee met on June 17 and reviewed a series of Employee Benefits Division and Office of Property Risk items. Grant Wallace presented March and April formulary changes, including moving to lower-cost generic and preferred drugs, leaving several new-to-market drugs not covered, and adjusting migraine and diabetes medications; the committee approved those recommendations. The subcommittee also approved a cell and gene therapy policy that excludes automatic coverage for those therapies so they can undergo prior authorization and review, with members emphasizing that the policy was intended to create review, not an absolute denial, and that expedited appeals would remain available. Members spent significant time discussing the UAMS pharmacy benefit consultant amendment. Wallace explained that the contract included both basic services and optional services related to coupon and rebate management and prior authorization support, but the written materials created confusion over the dollar amount. After questions about whether the committee was approving a higher amount than the base contract and whether the optional services duplicated work already being done by Navitus, the committee agreed to review the item with a contingency that any use of the optional services would return to the committee for approval. The committee also reviewed and approved the U.S. Able Mutual/Blue Advantage third-party administrator contract, the CompSack employee assistance program contract, and the proposed 2027 employee and public employee rates, which call for a 9.8% increase for state employees and a 4.9% increase for public school employees. On the property risk side, the committee reviewed permanent rules for the property insurance program, a contingency-fee subrogation contract with Denenberg-Tuffley, and renewals for Sedgwick claims management, Actuarial Advantage, and Stevens Capital Management. Wallace said Sedgwick had faced delays after a major winter storm and other weather events, but performance guarantees and communication expectations were being added; members discussed whether a shorter renewal term would be preferable, but the item was reviewed. The committee also approved the 2026-27 captive insurance program rates, which Wallace said would lower the overall rate by 10% while keeping minimum deductibles unchanged. He noted the program had stabilized after a difficult first year and that the rate structure was now based on a more transparent actuarial foundation. The meeting ended with an update that the UnitedHealthcare rebid was nearing completion and would return in August, and the committee adjourned after approving the remaining items.

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Keywords: 1204, all

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted the March 2026 minutes, then approved reports from the executive committee and the standing committees on counties and municipalities, educational institutions, and state agencies. The counties and municipalities report noted progress on delinquent private water and sewer audits, compliance improvements by Denning and Gum Springs, and a 60-day compliance window for Omer and Fargo; several reports were deferred, while others were referred to prosecutors, the Attorney General, or the Government Bonding Board. The educational institutions committee filed 103 audit reports, including findings for several school districts, and one Booneville School District finding was referred to law enforcement. The state agencies committee filed 13 reports and deferred one Department of Health report to August. The committee then reviewed the State of Arkansas annual comprehensive financial report and single audit for fiscal year 2025. Legislative Audit reported clean opinions on the state’s financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology over threat monitoring and unauthorized access, and problems at the Division of Workforce Services with changes to year-end accounting estimates and documentation for unemployment-related receivables and payables. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; auditors reported 33 findings, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Findings included improper advance draws and reporting issues in Summer EBT, documentation problems in broadband projects, and reporting/reconciliation issues in child care funding. Members questioned agency officials from DHS, the Office of State Technology, the Department of Finance and Administration, the Department of Education, and Workforce Services about the findings and corrective actions. DHS said the Summer EBT issue involved drawing funds in advance and that procedures had been changed for the 2026 cycle; it also explained several repeat findings as timing or provider-enrollment issues. OST officials said they were expanding logging, endpoint detection, and enterprise monitoring, and described cybersecurity as a moving target requiring more investment and training. DFA and Workers’ Compensation officials discussed the workers’ comp fund’s actuarial position and said it should be monitored but did not require immediate action. Education officials said the child care reconciliation problems stemmed from a former employee’s failure to reconcile reports, that staffing and checks had been strengthened, and that the federal funding cut affecting child care was a separate issue. The committee voted to hold the two major state financial reports over until the August meeting, with members asked to submit specific questions in advance, and then received a special report on the Hot Spring County Solid Waste Authority review.

Keywords: 1204, all