State Agencies & Govt'l Affairs committee approves emergency rules, two contract packages and a Conway school waiver; hears preliminary film production study

The Senate State Agencies & Governmental Affairs Committee voted to approve two emergency rules, authorized broker and management agreements contingent on pending legislation, accepted a procurement-study addendum, extended a consulting agreement and approved a Conway School District purchasing waiver during its meeting. The committee also received an initial film production study and heard preliminary economic findings.

The committee reviewed an emergency rule from the Arkansas Department of Human Services to implement Act 675 of 2023 and to revise categorical eligibility resource limits. Christy Putnam, secretary of the Arkansas Department of Human Services, told the committee the department updated the rule after receiving technical assistance and legal clarification and identified a benefit that could be extended to households deemed SNAP-eligible. “We were under the impression initially that we needed to look for some state match funding,” Putnam said, “What we needed to do was look for a benefit that could be extended to all households that could be considered SNAP eligible.” The committee approved the proposed emergency rule to be effective 12:01 a.m. Saturday, April 5, 2025, by voice vote without objection.

Members then considered an emergency rule from the Department of Commerce to amend the Community Assistance Grants Program rules. Jay Quinley, director of legislative affairs for the Department of Commerce, said the legislature appropriated $10,000,000 for the program, expanding applicant eligibility to include certain nonprofits and increasing the single-award cap from $50,000 to $1,500,000. Quinley described qualifying projects as community development activities such as construction or renovation of community centers, libraries, public health projects and equipment for police or firefighting. The committee reviewed and approved the emergency rule without objection; review and approval is effective 12:01 a.m. Saturday, April 5, 2025.

The Bureau of Legislative Research (BLR) presented two contract items tied to a proposed captive insurance program currently pending in the General Assembly. Jill Thayer of the bureau said the broker and consulting services agreement with Stevens and the master management services agreement with Willis Towers Watson are contingent on passage of the underlying legislation and on assignment through the Department of Transformation and Shared Services on July 1, 2025. Representative Rice moved to approve the Stevens broker contract and authorize BLR to sign and assign the contract; the motion was seconded and carried by voice vote. A separate motion to approve and authorize assignment of the Willis Towers Watson management agreement likewise carried by voice vote.

The committee accepted an addendum to the BLR procurement study that clarifies language on political subdivisions voting whether to use competitive bidding. The addendum was presented as matching the draft bill language moving through the legislature and was accepted without objection.

Consultants from OlsbergSPI submitted an initial film production study and presented preliminary findings. Marty Garrity of the Bureau of Legislative Research said the consultants interviewed more than 30 Arkansas stakeholders and completed a first pass of the economic analysis. Leon and Mira of OlsbergSPI summarized the draft report’s gross economic numbers and said the study will next remove economic deadweight to show net impact. The consultants reported that incentivized production delivered roughly $64,600,000 in gross value added in Arkansas from fiscal 2014 through fiscal 2025 to date and estimated a gross return on investment near $4.6, while noting that an outlier production inflated totals and that further analysis may modestly reduce the gross figure. They listed four headline recommendations: reform the incentive design, link incentive expansion to an industry development strategy, expand the film commission’s capacity, and improve data collection and publication. Committee members asked about staffing levels at the Arkansas Film Commission and about realistic demand for production; OlsbergSPI said the commission is comparatively under-resourced and that any expansion should be calibrated to realistic state ambitions. The committee did not take a formal vote on the report; staff said a final report is expected in about two months.

The committee approved a three-month extension of the CASA consulting agreement (the contract had been due to expire May 1) to allow continued training and rule-change work tied to pending legislation. The motion to extend the contract carried by voice vote.

Conway Public Schools requested and received approval to exceed the cooperative purchasing aggregate limit in Arkansas Code Annotated § 19-11-249(d) for renovation work on a school facility identified in the request as the Bob and Betty Courtway (as presented). Dr. Jeff Collum, superintendent for Conway Public Schools, and Shasta D. Wagner, the district’s chief legal officer, told the committee the work is scheduled to begin after students leave in May and finish before they return in August; the district said its maintenance team would provide some materials and labor to reduce costs. Representative Evans and other members praised the district’s use of local vendors and approved the waiver by voice vote.

Votes at a glance - DHS emergency rule to implement Act 675 of 2023 (categorical eligibility/resource limit $5,500): approved by voice vote; effective 12:01 a.m. April 5, 2025. - Commerce emergency rule to amend Community Assistance Grants Program (appropriation $10,000,000; award cap raised to $1,500,000; expanded nonprofit eligibility): approved by voice vote; effective 12:01 a.m. April 5, 2025. - BLR broker and consulting services agreement with Stevens (contingent on legislation; assignment to Dept. of Transformation and Shared Services 07/01/2025): motion moved by Representative Rice, seconded, approved by voice vote. - BLR master management services agreement with Willis Towers Watson (contingent on legislation; assignment 07/01/2025): motion moved and seconded; approved by voice vote. - Addendum to BLR procurement study (clarifying language on political subdivisions and competitive bidding): accepted without objection. - CASA consulting agreement extension (3 months): approved by voice vote. - Conway Public Schools waiver to exceed cooperative purchasing aggregate (Ark. Code Ann. § 19-11-249(d)) for school renovation starting in May and ending in August: approved by voice vote.

The committee adjourned after completing the agenda. Staff noted follow-up work on the film study and the contracts contingent on pending legislation; committee members requested timely processing of future emergency rules and clearer drafting to avoid delays.