UA System shares mandate approach

But no steps unveiled for vaccine rule

The University of Arkansas System expects to take “a measured approach to allow the System to comply” with an executive order requiring federal contractors to have workers vaccinated against covid-19, according to a statement dated Tuesday and geared toward investors.

However, the UA System as of Wednesday had not announced any vaccine requirements for workers.

Covid-19 vaccine mandates have been restricted by state lawmakers, and Arkansas Attorney General Leslie Rutledge on Friday joined nine other states in a lawsuit seeking to block the Sept. 9 executive order from President Joe Biden that applies to federal contractors.

The preliminary statement issued Tuesday for investors as part of a bond issue included a section about Biden’s announced covid-19 requirements — described in the document as Biden’s “Action Plan” — and effects

on the UA System, which is also the recipient of federal contracts.

“At this time, the System anticipates that it will review these requirements on a contract-by-contract basis, along with additional information that may be received from the federal agencies, and take a measured approach to allow the System to comply the Action Plan without violating State law,” the statement reads.

Nate Hinkel, a UA System spokesman, on Wednesday did not explain how the system expects to comply with the executive order and when it might do so.

“Navigating this issue considering the crucial resources involved is obviously a high priority for the UA System, but I don’t have any more information to report at this time,” Hinkel said in an email Wednesday.

Last week, Hinkel said the UA System was “in the process of reviewing the executive order and guidance.” Hinkel acknowledged that roughly $120 million in federal contracts may be “subject to the requirements” of the Biden order.

On Wednesday, Hinkel said: “This is obviously a complicated issue that we are still working through. We stand by the position taken in the preliminary official statement and also what was communicated in our response to your questions about the issue last week.”

Large public universities in some bordering states including Oklahoma, Tennessee and Mississippi have publicly stated plans to require all or some employees to be vaccinated against covid-19 to meet the requirement set forth in the executive order.

The Biden executive order applies broadly to federal contractors, including small businesses. Vaccine exemptions may be required for employees with disabilities or strongly held religious beliefs, according to federal guidance about the order.

Biden’s executive order applies to new contracts but also to the extension or renewal of existing contracts. Generally, the contracts must also be for more than $250,000.

The executive order states that federal contractors must adhere to guidelines that, as published Sept. 24, state that “contractor employees must be fully vaccinated no later than December 8, 2021.”

The federal safety guidelines define a person as “fully vaccinated” two weeks after receiving the second dose of a two-dose vaccination series or two weeks after a receiving a single-dose vaccine. The deadline to comply with the Dec. 8 requirement with the Moderna vaccine passed on Oct. 27, based on the schedule for administering the two doses in the sequence 28 days apart. The deadline to comply with the Pfizer vaccine passed on Wednesday.

The preliminary statement published as part of the bond issue describes two state laws passed by lawmakers this year restricting vaccine mandates. It also notes ongoing efforts to legally block Biden’s “Action Plan.”

“The Action Plan is the subject of multiple legal challenges from various states, including Arkansas, but the System is unable to predict the ultimate outcome of any legal challenges or whether enforcement of the Action Plan will be deferred or continued while any legal challenges are subject to litigation,” states the preliminary statement, published on the website MuniOS.com, a platform used by issuers of municipal bonds and investing professionals.

Noting that Biden’s “Action Plan” has various parts, the preliminary statement also says: “Compliance with the Action Plan’s vaccine mandates may increase operating costs of the System institutions or impact their ability to recruit and retain employees.”

Some universities in bordering states that, like Arkansas, are dominated politically by Republicans have cited how they risk losing millions of dollars in federal contracts that help pay for research and other services if they do not comply.

Many Republicans, including Rutledge, have voiced strong opposition to vaccine mandates, either generally or specifically in the case of the executive order from Biden, a Democrat.

Not all large universities in states where mandates face political opposition have made an announcement, including several large research universities in Texas.

The preliminary statement dated Tuesday notes that failure to comply with federal vaccine mandates “may result in the loss of federal contracts.” The statement goes on to say, however, that the federal requirements “run counter to recent laws” passed by state lawmakers, including Act 977, which “places limits on, and in many cases prohibits, the State, a State agency (including the System), or a political subdivision of the State” from mandating covid-19 vaccination.

The preliminary statement also referred to other parts of Biden’s plan, including a pending vaccine requirement that would affect workers in health care facilities that receive Medicare and Medicaid reimbursement, such as the University of Arkansas for Medical Sciences health care centers.

“The System and the various campuses of the System enter into contracts with the federal government from time to time, and unless an exemption is received, the System may be subject to the Action Plan’s requirements as a federal contractor and a Medicare and Medicaid provider,” the statement reads.

The preliminary statement notes that a state law otherwise restricting state agencies or entities from imposing vaccine mandates does allow for a state-controlled medical facility to seek approval from legislators for a covid-19 vaccine requirement.

Other large public universities in the state last week — including the Arkansas State University System and the University of Central Arkansas — said they were still reviewing the federal executive order.

Some large private universities in other states have announced vaccine requirements for their employees.

In Arkansas, the state’s largest private university, Harding University, in a statement sent Monday via email by spokeswoman Katie Clement, referred to a separate coronavirus-related federal requirement that remains pending but is expected to affect certain employers:

“We have informed our employees of potential regulations concerning a federal vaccination mandate and gathered preliminary status information through an employee survey. The university has made vaccinations available on campus and a large number of our employees have chosen to be vaccinated. For those employees who have chosen not to vaccinate, we are patiently waiting for the final [Occupational Safety and Health Administration] standard to determine next steps regarding testing and any possible exemptions that will be allowed.”

Harding University is a Christian university in Searcy.

Another private university, Hendrix College, also is “awaiting [Occupational Safety and Health Administration] guidelines and court rulings concerning President Biden’s executive order that private employers with 100 or more employees should have their workers vaccinated or tested weekly for the coronavirus,” spokeswoman Amy Forbus said in an email Monday.

Forbus said Hendrix College, a liberal arts college in Conway, does not expect to be subject to the executive order that applies to federal contractors.

John Brown University, a private Christian university in Siloam Springs, also does not expect to fall under requirements set forth in the executive order that applies to federal contractors, according to spokeswoman Julie Gumm.