Transcript Highlights:

• >> Yes, sir. what what are the liabilities >> Yes, sir. what what are the liabilities
• dollars or what is the liability dollars or what is the liability responsibility responsibility
• So, what are the limits of liability<00:33:21.440> and<00:33:21.919> where<00:33:22.320
• > are<00:33:22.640> they<00:33:24.000> uh<00:33:24.399> actually liability
• and where are they uh actually liability and where are they uh actually put<00:33:26.960> in<

Bills: HB300, HB40, SB19, HB283, HB179, HB296, HB300, HB40, SB19, HB283, HB179, HB296

Keywords: HB300, Choctaw County, probate court, probate judge, recording fee, filing fee, deed tax, mortgage tax, deeds, mortgages, property records, recordation, county local act, local legislation, technology upgrades, digitalization of records, recordkeeping, county treasury, special fund, court administration

Transcript Highlights:

• SB 771 would dramatically expand liability for third-party speech, conflicting.
• They will mute any speech that risks liability.
• It's a liability.
• It's seen as a liability to address mental health. ...only address our physical health.
• It's a liability. It's seen as a liability to address mental health issues.

Summary: The committee hearing covered several bills related to privacy, consumer protection, and online harms. SB 259 by Senator Wahab would prohibit surveillance pricing based on device data such as geolocation or battery level; supporters argued it would curb discriminatory and predatory pricing, while opponents raised concerns about geolocation definitions, legitimate location-based pricing, and impacts on discounts and loyalty programs. The bill was moved on a due pass motion to the Judiciary Committee and passed 8-1, with members noting amendments and ongoing discussions with stakeholders. SB 22 by Senator Laird would raise the amount of gift cards that can be redeemed for cash, with the author saying the goal is to update the long-standing $10 threshold for inflation and preserve consumer value. Consumer advocates supported the bill, while retailers, restaurants, grocers, and chambers of commerce opposed or opposed unless amended, citing fraud concerns, safety issues, and the need for clarification on donated or returned gift cards. The committee voted the bill out on a 6-1 vote and kept it on call. SB 576 by Senator Umberg would apply broadcast-style loudness rules to streaming advertisements. The author said the bill is intended to prevent ads from being much louder than programming, especially for children, while the opposition argued that streaming ad insertion is technically different and that existing industry standards and FCC oversight already address the issue. The bill passed 8-0. SB 683 by Senator Cortese would clarify that people can seek injunctive relief, including a TRO, for unauthorized use of name, image, or likeness; supporters said it strengthens privacy protections, while opponents warned about prior restraint and First Amendment concerns. The bill was moved out on a due pass motion and kept on call. The final bill discussed, SB 771 by Senator Stern, would clarify that existing civil rights and hate-related laws apply to social media platforms and their algorithms, with higher penalties for intentional or reckless violations. Supporters, including the Simon Wiesenthal Center and the Islamic Networks Group, described online hate as fueling real-world violence and urged stronger accountability; opponents argued the bill could conflict with Section 230, chill lawful speech, and create vague standards. Members raised questions about constitutionality, definitions, and whether the bill would be workable, but several expressed support for the author’s goals.

Transcript Highlights:

• valuation leaving an unfunded liability valuation leaving an unfunded liability of<00:54:40.920>
• We have 35.4 billion of actuarial accrued liability, asset valuation of 28.3 billion, unfunded liability
• We have 35.4 billion of actuarial accrued liability, asset valuation of 28.3 billion, unfunded liability
• amortization of the unfunded liability amortization of the unfunded liability ility<00:56:56.680
• That gave us a funded ratio of 67.2% and an unfunded liability of $6 billion.

Keywords: 1187, senate, all

Transcript Highlights:

• And then Russ Olson from the Pollution Liability Insurance Agency.
• And then Russ Olson from the Pollution Liability Insurance Agency.
• We also are seeing increased premiums and insurance liability.
• So let's start with the utility liability market study.
• It's a strict liability statute.

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• YOUR BILL OUTLINES FOR SOMEBODY WHO'S BEEN PRACTICING NURSING AND HOW THAT HAPPENS BUT WHAT'S THE LIABILITY
• MY QUESTION IS WHAT LIABILITY FALLS ON THE NURSE IF THEY DON'T RECOGNIZE SOMEBODY IS BEING TRAFFICKED
• Bartleman: I WOULD ASSUME THE SAME LIABILITY FOR SOMEONE WHO DOESN'T RECOGNIZE A MEDICAL CONDITION.
• FOR ANY OTHER LIABILITY.
• GROW, I'M GOING TO GET FURTHER AS A MOTHER OF A NURSE FURTHER CLARIFICATION ON THE LIABILITY FOR YOU,

Transcript Highlights:

• <00:42:10.760> I liability for your negligent conduct.
• I liability for your negligent conduct.
• Willful or wanton liability there.
• That's the limitation of the liability That's the limitation of the liability as<00:48:05.600>
• It creates liability for the owner, not It creates liability for the owner, not the<01:03:15.640>

Keywords: 1187, senate, all

Transcript Highlights:

• That's relating to energy and establishes a Wildlife Liability Trust Fund to be placed within DCCA for
• to energy establishes Wildlife liability to energy establishes Wildlife liability trust<00:08:19.280
• But I guess it would be hard to figure out a different way to address the liability question.
• <00:31:40.320> issue at the addressing the liability issue at the addressing the liability
• <00:34:51.480> question<00:34:51.879> was liability question was liability question was

Keywords: 910, house, all

Summary: The committee on Energy and Environmental Protection heard testimony on Senate Bill 897, which would create a Wildlife Liability Trust Fund within DCCA for administrative purposes. The chair opened by noting the hearing had to end by noon because of floor session, and that written testimony would be considered if not all witnesses could speak. Testimony included support from DCCA, the Attorney General’s office, the Public Utilities Commission, Charter Communications, Ulupono Initiative, AES Hawaii, Hawaiian Electric, Clearway Energy Group, Kauai Island Utility Cooperative, Hawaiian Telcom, and IBW Local 1260, with opposition or concerns from the Hawaii Association for Justice and some others. Hawaiian Electric strongly supported the bill and asked for amendments, saying the fund would help address wildfire liability, protect customers and the economy, and support restoration of investment-grade credit; it also proposed a larger shareholder contribution and said the bill was part of a broader effort to raise settlement funds and improve grid safety and resiliency. Committee members focused heavily on whether the bill would actually lower costs for ratepayers and improve credit ratings. DCCA said there was a nexus between limiting liability, creating a sufficiently large wildfire fund, and transparent mitigation requirements, but acknowledged there was no guarantee of a credit-rating improvement or precise estimate of rate impacts. Members questioned Hawaiian Electric about the assumptions in its cost comparisons, the 30-year securitization structure, and whether funding could be shifted later to shareholders after credit was restored. Hawaiian Electric responded that the bill assumes the fund is paid through securitization, that removing that presumption could undermine the credit-rating benefit, and that its models suggest credit-spread savings could offset the customer charge over time; it also said it would follow up with additional analysis. The company and Ulupono both described the measure as a difficult but potentially necessary way to socialize wildfire risk and avoid a larger crisis later. The Hawaii Association for Justice opposed the bill’s liability caps and raised concerns about consumer rights, oversight discretion, statute-of-limitations changes, and evidence rules. Hawaiian Telcom suggested amendments to clarify compliance with FCC pole-attachment agreements. No vote or final action was taken during the portion of the hearing provided, and members indicated they wanted more analysis before being comfortable with the bill’s long-term ratepayer impacts.

Transcript Highlights:

• Is there a way for us to look at liability and reducing the liability of people who are hunting in this
• So that's less of a question and more of a think about liability, and I'm happy to think about liability
• and um reducing us to look at liability and um reducing the<00:14:23.519> liability<00:14:24.440
• Is there a way for us to look at liability and reducing the liability of people who are hunting in this
• I encourage thinking about liability I encourage thinking about liability mechanisms<00:42:38.960

Keywords: 1183, house

Transcript Highlights:

• He was found shielding them. Emma Folultz bravely led her bunkmates to safety.
• He was<07:54:00.320> found<07:54:00.558> shielding<07:54:00.958> them.
• <07:54:02.160> Emma<07:54:02.558> Folultz was found shielding them.
• Emma Folultz was found shielding them.

Keywords: U.S. House of Representatives Floor Proceedings on Tuesday, July 15, 2025, 1012, house, all

Transcript Highlights:

• There are three shields that defend our homeland: defense, diplomacy, and development.
• .<04:07:10.319> There<04:07:10.560> are<04:07:10.720> three<04:07:11.040> shields
• There are three shields that security.
• There are three shields that defend<04:07:12.640> our<04:07:12.960> homeland.

Keywords: U.S. House of Representatives Floor Proceedings on Thursday, June 12, 2025, 1012, house, all

Transcript Highlights:

• They shield the abusers, silence the survivors, and shut the courtroom doors of justice, especially when
• They shield the abusers, silence the survivors, and shut the courtroom doors of justice, especially when
• They shield the abusers, silence the survivors, and shut the courtroom doors of justice, especially when
• They shield the abusers, silence the survivors, and shut the courtroom doors of justice, especially when

Keywords: 910, house, all

Summary: The committee heard several housing, landlord-tenant, and condominium-related measures. Senate Bill 62, relating to the Hawaii Public Housing Authority, would allow HPHA-owned parcels and related areas such as parking lots to be closed to the public with posted signage; HPHA strongly supported the bill, saying it would help reduce loitering, drinking, and other problems, and no further testimony was offered. Senate Bill 822, relating to the landlord tenant code, would create a three-year working group in the Department of the Attorney General to study and improve the residential landlord-tenant code. The Judiciary supported the measure but said the scope should be narrowed; the Attorney General opposed leading the group and suggested another agency should do so; Hawaii Realtors and the Hawaii Worker Center supported the concept and suggested moving the chairmanship to the Judiciary and including Legal Aid participation. The Judiciary said it could chair the group if the bill were narrowed to matters within the court’s purview. Senate Bill 38, relating to housing, would limit counties from imposing stricter conditions, AMI requirements, or fee-waiver reductions on certain affordable housing proposals if those changes would increase project costs. HHFDC supported the bill, saying county changes after state approval create uncertainty for developers, while the Hawaii State Association of Counties opposed it as an intrusion on local authority and a restriction on county safety and infrastructure conditions. Members asked about whether existing county review periods were sufficient, and the county association said the main concern was the bill’s language limiting counties from making cost-increasing conditions. Senate Bill 146, relating to condominiums, would revise alternative dispute resolution procedures for condo disputes, including evaluative mediation and binding arbitration. The Hawaii Real Estate Commission said it took no position overall but supported a $150 mediation fee and asked for a similar arbitration fee; Community Associations Institute supported the bill with suggested amendments; however, most testimony was strongly opposed by condominium owners and advocates, who said the bill had been changed to the detriment of owners and would increase costs and reduce protections. The committee noted 44 testimonies on the bill, with 2 in support, 37 in opposition, and 2 with comments. Senate Bill 253, relating to condominium reserves, would require a detailed budget summary to stand on its own, remove a good-faith defense for certain noncompliant budgets, and clarify standing and the association’s burden regarding substantial compliance. Hawaii Realtors and Community Associations Institute supported the measure as improving transparency and giving owners and buyers a clearer picture of association finances. Greg Msakian also supported it, arguing it would help owners and describing problems he experienced with budget committee exclusion and budget noncompliance in his own association. The discussion ended while testimony on the bill was still underway, with additional witnesses expected.

Transcript Highlights:

• Existing laws shield certain confidential communications like those between attorneys and clients, but
• 00:29:19.760> So,<00:29:20.000> existing<00:29:20.399> laws<00:29:20.720> shield
• So, existing laws shield privilege.
• So, existing laws shield certain<00:29:21.440> confidential<00:29:22.080> communications

Keywords: 1187, senate, all

Transcript Highlights:

• But I mean, we just don't say to the MCOs, we don't say to Blue Cross Blue Shield or Aetna or, you know
• Senator Kolkhorst: ...We just don't say to the MCOs, we don't say to Blue Cross Blue Shield or Aetna
• But I mean, we just don't say to the MCOs, we don't say to Blue Cross Blue Shield or Aetna or, you know
• But I mean, we just don't say to the MCOs, we don't say to Blue Cross Blue Shield or Aetna or, you know

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• As you can see here in chart one, on page one, the report estimates the current and likely liability
• to be between $200 and $700 million with possible liabilities as high as $1.6 billion.
• the low end of our likely orphaned well liability to be about $700 million.
• These are the wells that the report terms 'possible liability.'
• Chair, that is insufficient for the likely liability.

Transcript Highlights:

• There's specifically a state in the bill: the end user doesn't have that liability.
• It does include a wide range of unrelated mandates, liability standards, and speech restrictions.
• And also, there are concerns that this would increase litigation costs with some of the liability issues
• And I think one more glaring concern: when you look at the civil liability product liability section,
• there seems to be kind of a conflict in how the product liability is defined.

Summary: The committee met without a quorum at first, but proceeded with public hearings on two Senate bills. Senate Bill 944, sponsored by Sen. Carla May, would update the statutory salary range for the City of St. Louis sheriff’s attorney, which she said has been unchanged since 1990 and no longer reflects inflation, modern legal demands, or comparable compensation in other jurisdictions. Rep. Fuchs offered supportive remarks, and there was no opposition or informational testimony. No vote was taken on SB 944 during the hearing. The committee then heard Senate Bill 1012, sponsored by Sen. Nicola, a broad artificial intelligence bill intended to clarify that AI is not a legal person, that humans remain responsible for AI-assisted decisions, and that licensed professionals must retain independent judgment. The bill also addressed companion chatbots, election-related AI disclosures, and other consumer protections. Supporters of the bill’s general accountability approach were not present in testimony, but opponents from Americans for Prosperity and the Missouri Chamber of Commerce and Industry argued the bill was overly broad, could chill innovation, and contained numerous drafting and cross-reference errors, including unused definitions and inconsistent metadata requirements. Members questioned how liability would apply to end users and noted the need for clearer drafting. After public testimony, the committee moved into executive session on SB 1012. A motion was made for do pass, but the roll call resulted in zero ayes and 11 noes, and the bill was voted failed. The meeting then adjourned.

Transcript Highlights:

• Thus, that act immunizes entities like websites, for example, from liability for those things posted
• House Bill 2133 might be preempted by Section 230 because it attaches liability to a commercial entity
• Federal law only allows liability to be imposed on the original publisher or producer.
• It also authorizes operators to contract with participants to release those operators from liability
• As long as some level of liability remains, your view is that it doesn't conflict with the anti-abrogation

Keywords: 1182, all

Summary: The Rules Committee considered a series of bills, with the Rules attorney flagging constitutional or preemption concerns on several measures. HB 2060 would prohibit public educational institutions and universities from encouraging or facilitating abortions; the attorney noted Prop. 139’s new abortion-rights language could create a state constitutional issue, but the committee still recommended the bill 5-3. HB 2085 would ban gender transition procedures and also restrict referrals; the attorney said the procedure ban is supported by recent U.S. Supreme Court precedent, but the referral restriction raises possible First Amendment issues in light of a Ninth Circuit case, and the bill was recommended 5-3. HB 2133 would impose age and consent verification requirements on commercial entities publishing sexual material online; the attorney warned it may be preempted by federal Section 230 law, but the committee recommended it 5-3. HB 2086, which would bar governmental entities from requiring masks or vaccinations, was flagged for Supremacy Clause and intergovernmental immunity concerns because it included the federal government, but was recommended 5-3 after the sponsor indicated an amendment was coming. HB 2279, dealing with liability limits for Grand Canyon river outfitters, raised anti-abrogation concerns because it would eliminate ordinary negligence claims; the sponsor said he would offer a floor amendment, and the bill was recommended 5-3. HB 2364 would add criminal penalties for mailing or delivering abortion-inducing drugs; the attorney said it likely conflicts with the new abortion-rights protections in Prop. 139, though the legal landscape is unsettled, and the committee recommended it 5-3. The committee then took a mass motion covering many additional bills, resolutions, and memorials. The Rules attorney said the listed measures were generally constitutional and in proper form, with one update on HCR 2003, which would place a measure before voters affecting school sports participation and facilities use based on biological sex. The attorney said the issue is actively being litigated nationally and that a pending U.S. Supreme Court decision in similar Idaho and West Virginia cases could affect the measure’s legal status. The mass motion was approved unanimously, 8-0. Throughout the meeting, members from the majority voted aye and minority members generally voted nay on the individual abortion-, gender-, and speech-related bills, often citing constitutional objections tied to Prop. 139, the First Amendment, or federal preemption. The meeting adjourned after the unanimous approval of the mass motion.

Transcript Highlights:

• Based on the existing law, Enterprise takes a voluntary primary liability position in just two states
• Rental car companies will continue to extend the state's MFR of liability to cover damage to innocent
• Rental car companies will continue to extend the state's MFR of liability to cover damage to innocent
• regarding House Bill 1301 regarding primary insurance liability for rental car companies.
• Insurance liability for rental vehicles addresses the critical issue of primary versus secondary liability

Keywords: 995, all

Summary: The Joint Committee on Financial Services held a public hearing on a wide range of auto insurance and vehicle-related bills. Testimony focused heavily on autonomous vehicle regulation, auto insurance rating by ZIP code, rental car liability coverage, and surcharge thresholds for minor accidents. Representative Polito supported a bill to regulate autonomous vehicle testing and deployment, arguing for school-zone restrictions, slower speeds, a remote kill switch, and minimum insurance requirements to protect the public. Representative Mendez and Senator Payano testified for legislation to reduce racial and socioeconomic inequities in auto insurance pricing by limiting the weight insurers may place on territorial loss costs, while the Mass Insurance Federation and Consumer Federation of America offered opposing and supporting views, respectively, on the fairness and actuarial impact of geographic rating. The committee also heard support for a bill to remove inspection-sticker violations from license-point calculations, and for a bill to raise the damage threshold for insurance surcharges and minor/major accident classifications. A substantial portion of the hearing addressed House Bill 1301 on rental car liability. Enterprise Mobility, the American Car Rental Association, and a small Massachusetts rental company supported the bill, saying personal auto insurers should be primary when their insureds drive rental cars, that Massachusetts is an outlier compared with most other states, and that the change would reduce costs and simplify claims handling. The Mass Insurance Federation opposed the bill, arguing that current Massachusetts law already clearly makes the vehicle owner’s policy primary and that shifting liability would raise costs for private-passenger policyholders. Committee members asked detailed questions about how rental coverage works, whether premiums or rental rates would change, and how other states handle the issue. The committee also heard testimony on a bill to adjust surcharge rules for at-fault accidents, with sponsors arguing that repair costs and vehicle values have risen sharply and that the current thresholds are outdated. Members discussed how the point system affects drivers, whether the proposal should apply cumulatively or per incident, and how Carfax and out-of-pocket repairs factor into consumer costs. At the end of the hearing, the chair noted written testimony could still be submitted and, during a brief personal privilege, recorded support for two underinsurance bills, H. 1109 and S. 748. The committee then moved and seconded a motion to adjourn, and the hearing ended without any votes on the bills themselves.

Transcript Highlights:

• Basic liability insurance is priced on non-driving factors such as level of education, marital status
• > from have heard from have heard from others<00:03:22.120> basic<00:03:22.599> liability
• <00:03:23.280> insurance<00:03:23.879> is others basic liability insurance is others
• basic liability insurance is priced<00:03:24.519> on<00:03:24.799> non-driving<00:03:25.760
• ...they continue to pay premiums into the system, they continue to maintain liability insurance so they

Keywords: 1183, house

Transcript Highlights:

• Yeah, the amendment addresses the liability of landowners.
• At that point, the liability of the injector, the operator of that project, ceases.
• The regulatory liability is taken over by the state as part of the fund that has been created, and it
• the language regarding the liability the language regarding the liability that<00:10:36.200>
• ,<00:10:53.120> the<00:10:53.440> the liability of the injector, the the liability

Keywords: Meeting Start 00:00 Attendance Roll Call 00:25 HB 667 Discussion 01:21 HB 667 Roll Call Vote 03:56 HB 677 Discussion 05:01 HB 677 Roll Call Vote 11:51 HB 535 Discussion 13:33 HB 535 Roll Call Vote 34:46 HJR 77 Discussion 38:33 HJR 77 Roll Call Vote 44:23, 958, all

Summary: The committee first considered House Bill 667, described by the sponsor as a cleanup measure to a 2024 solid waste law. Testimony said the bill would clarify issues involving indirect access to protected information, contractors and consultants, Open Records Act interactions, and remedies when protected material is obtained. The committee voted 13-0 to pass the bill favorably and recommended it for passage on the House floor. The committee then took up House Bill 677, which would establish Kentucky’s legal and regulatory framework for carbon dioxide geological sequestration and help the state seek EPA primacy over Class VI injection wells. Supporters said the bill was the product of 18 months of work among industry, landowner, environmental, and cabinet stakeholders, and argued it would promote economic development, protect landowners, and support carbon-capture investment and related infrastructure, especially in Western Kentucky. An amendment was adopted by voice vote, and the bill then passed favorably with committee amendment attached. Finally, the committee discussed House Bill 535 as amended by a committee substitute. The bill would authorize securitization for certain investor-owned utilities with out-of-state assets, including Kentucky Power, to refinance assets such as the Mitchell plant and certain regulatory assets, with a two-year rate freeze and PSC review for net savings. Sponsors and supporters framed it as an affordability and jobs measure that could finance new natural gas generation at Big Sandy, create several hundred construction jobs, and support long-term economic development in Eastern Kentucky. Members raised concerns about utility fees, PSC discretion, and transparency; sponsors said the proposal would not be approved without overall savings and that applications would also be reviewed by the legislature, the Attorney General, and EPIC. The committee adopted the committee substitute and then passed House Bill 535 favorably, with several members explaining their votes and some noting continued reservations for floor consideration.

Transcript Highlights:

• Now on to the pension liability.
• Now on to the pension liability.
• In 2023, the liability increased significantly to about 1.5 billion. 23, the liability increased significantly
• So why does the pension liability fluctuate? So why does the pension liability fluctuate?
• Page 15 summarizes the system's long-term liabilities.

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.