Transcript Highlights:

• There's a lot of awards that come out of 227 RFAs. Almost 1,100 awards come out of that.
• So all RFAs have been made, and the majority of the awards have been made.
• This means that upon the award, the recipient will automatically receive 25% of their award up front.
• awards.
• You mentioned performance metrics. My question is, do you do internal audits?

Transcript Highlights:

• As of date, we know that 49 of these were intended to be multi-year awards, but due to the late award
• We have awarded one And the conditions for that.
• General release awards, which are the non-apprenticeship awards, and then we have about $5 million that
• And those things can sometimes delay those awards.
• Issue those awards out.

Summary: The Higher Education Budget Subcommittee met to review funding models for the Florida College System and district workforce education programs, with an emphasis on how new dollars are allocated in the program fund and how performance and targeted funding are incorporated. Chancellor Hebda explained the Florida College System model, including base program funding, student success and pipeline funds, performance incentives for industry certifications, and the 2022 president-developed formula that weights enrollment, workforce enrollment, completions, small-college factors, and regional cost differences, plus a targeted funding floor for colleges below a minimum per-FTE level. Vice Chancellor Goodman then outlined the district workforce model, which uses lagged enrollment, program cost weights, local revenue offsets, small-district adjustments, and unmet-need calculations to distribute lump-sum appropriations to school districts offering workforce education. The department also provided updates on several grant programs and funding delays. Goodman said the Workforce Development Incentive Grant, Pathways to Career Opportunities Grant, Graduation Alternative to Traditional Education Startup Grant, and teacher apprenticeship/mentor bonus programs all involve multi-year awards and often require reversions and reappropriations because projects are delayed, extended, or not fully obligated by year-end. She said the department is moving toward an electronic grants system and had already adjusted internal deadlines to speed awards, while acknowledging some reimbursement delays and explaining that mentor bonuses for teacher apprentices will not be paid until the first cohort reaches the statutory timing requirement. Members asked about tracking whether CTE students work in their trained fields, how Xello is used to inform students about career pathways, how FTE is calculated, whether the funding formulas could encourage growth over quality, and how students with disabilities are counted in workforce funding. Questions also focused on tuition, enrollment trends, and the gap between college and university funding. The committee heard that tuition has remained flat for more than a decade, enrollment has rebounded from COVID and is projected to exceed pre-pandemic levels, and the college system’s funding per FTE varies widely. Valencia College President Kathleen Plinsky testified in support of the proposed formula and an additional $200 million for the Florida College System, saying Valencia is the second-largest college in the state but ranks last in per-FTE funding, which has made it difficult to recruit and retain faculty and admit qualified students in high-demand programs like nursing. The committee took no vote and adjourned after the presentations and questions.

Transcript Highlights:

• Nobody was performing in the outstanding category. We had no one performing in the good category.
• Currently, there are 23 poor performance ratings and 32 marginal performance ratings.
• We had three good performers and 17 satisfactory performers, but it's not enough.
• with routine awards for their performance.
• So, there is an award for performance. Great. Thanks. I'm so glad to hear that, Mr. Chair.

Transcript Highlights:

• The average award size was $124,000.
• And many performing arts organizations just didn’t survive.
• Nonprofit performing arts organizations across California.
• The awards are announced August 27, 2025.
• Rather than awarding applicants on a first-come, first-served basis, awards are determined based on evaluation

Summary: The subcommittee heard an informational update from the Governor’s Office of Business and Economic Development on the state’s Jobs First economic development strategy and related budget requests. Go-Biz described its regional planning process, priority sectors such as ag-tech, space defense, life sciences, and semiconductors, and requests including an extension of the CalCompetes tax credit, support for export promotion, additional film commission staff, innovation and emerging technology capacity, and a California brand campaign. Members questioned the campaign’s purpose, with some supporting efforts to counter misinformation about California and others warning it should not obscure regulatory and business-climate concerns. Go-Biz said the campaign would be nationally focused, could include business attraction efforts, and was intended to complement—not replace—policy work on permitting and workforce development. The item was informational only. The committee then heard from the California Office of the Small Business Advocate on the California RISE program, the Performing Arts Equitable Payroll Fund, and the Technical Assistance Program/Capital Infusion Program. CalOSBA reported that California RISE’s first round awarded $16.9 million to 61 employment social enterprises, which collectively increased revenue, secured contracts, and employed thousands of people facing barriers to work; a second round is being launched with a new administrator and expanded services. For the performing arts payroll fund, the office said all 100 awardees had been paid, but demand far exceeded available funding, and the program was oversubscribed within days. California for the Arts testified that the sector remains fragile after COVID and urged statutory changes to simplify eligibility and stretch dollars further. SBDC representatives described TAP/SIP as a statewide network supporting small businesses, capital access, and disaster recovery, emphasizing their role in underserved communities and the leverage of federal matching funds. Committee members focused on whether these programs produce durable outcomes and reach smaller or disadvantaged businesses. Questions centered on long-term job retention in California RISE, outreach to ethnic and community media in the civic media program, and whether TAP/SIP are accessible to entrepreneurs with limited capital or capacity. CalOSBA and its partners said they rely heavily on local community organizations for outreach, provide one-on-one counseling and training, and are working to collect more longitudinal data. The committee also discussed the film and television tax credit program, for which Go-Biz requested funding for three permanent positions and ongoing program support. Film Commission staff said the expanded program is tracking demographic and career-pathway data, with most productions opting into new diversity provisions, and that a formal report to the Legislature is expected in 2027. The item concluded without a vote, as the hearing was for oversight and budget discussion.

Transcript Highlights:

• I'm the Assistant Director of Performance Audit at the State Auditor's Office.
• We were using performance management standards for conducting a project.
• Fourth, Commerce did not manage or monitor grantee performance using consistent performance measures
• SAO Performance Audits, is adjourned.
• The Committee to Hear SAO Performance Audits is adjourned.

Keywords: 904, all

Summary: The Joint Legislative Audit and Review Committee subcommittee held a hybrid hearing to receive three State Auditor’s Office performance audits. The first audit examined implementation of the Law Enforcement Training and Community Safety Act. Auditors said the Criminal Justice Training Commission had developed most required training, but six community/cultural topics were still unfinished, the patrol tactics curriculum was incomplete in one area, and the agency lacked a systematic project management approach. They reported that most officers had not completed the 40 required hours, with low participation in patrol tactics training, weak communication, limited data to track compliance, and ineffective incentives or consequences. Committee members questioned staffing, liability, and enforcement, and the Commission said it generally agreed with the findings and had begun implementing recommendations, including improving training development and communication. The second audit reviewed Washington’s digital equity planning. Auditors concluded the state lacked a comprehensive, unified digital equity strategy, a designated lead, and reliable funding. They said the existing PEAR/Impact Plan, BEAD five-year plan, and NTIA-approved digital equity plan each addressed parts of the issue but none provided a full statewide framework with clear authority across agencies. The Department of Commerce’s Broadband Office and the Office of Equity said they agreed with the findings and were open to working with the legislature and the Digital Equity Forum on a more structured approach. A public witness described local and regional digital equity planning efforts and emphasized the importance of coordination and community-based work. The third audit focused on Commerce’s management of the Digital Navigator Program. Auditors said Commerce did not consistently use a competitive process, did not adequately vet grantees and subgrantees, wrote contracts that lacked clear deliverables and monitoring requirements, failed to enforce reporting, and paid $10.7 million without sufficient documentation to verify reimbursement eligibility. They said agency staff had raised concerns that were ignored and that some payments and contract expansions occurred despite warnings. Commerce officials said new leadership had already begun major contract-management reforms, including centralized oversight, risk assessments, clearer documentation standards, and staff training, and they said they would pursue recapture where appropriate. Committee members expressed strong concern about accountability, and the hearing ended after public testimony and committee discussion.

Transcript Highlights:

• THANK YOU FOR CONTINUING TO INVEST IN A PERFORMANCE BASED FUNDING.
• WE HAVE TWO METRICS DEVOTED TO IT IN PERFORMANCE BASED FUNDING.
• WE LOOK AT THE UNDERGRADUATE DEGREES AWARDED IN PERFORMANCE BASED FUNDING AND THE GRADUATE DEGREES AWARDED
• IN PERFORMANCE BASED FUNDING IN THESE AREAS.
• ARE SOME LAGS IN THE DATA AND REPORTING BUT WE WILL BEGIN TO AWARD PERFORMANCE BASED FUNDING BASED ON

Transcript Highlights:

• We'll explain what is SNAP and how it works and how performance is measured.
• Performance.
• Performance issues that they are intended to correct.
• So you can see multiple years of performance information.
• But this is a summary of all the performance that's been going on.

Keywords: 996, all

Transcript Highlights:

• This was put on hold in 2021-22 during the pandemic, again due to concerns that county awards and performance
• We find that that minimum guarantee disconnects the awards from actual performance and it doesn't...
• We find that this minimum guarantee disconnects the awards from actual performance and it doesn't advance
• to $87 million for the 2024 award.
• to 87 million for the 2024 award.

Summary: The committee heard a broad public safety budget hearing focused on youth justice funding, probation incentive grants, and disaster response and recovery. On the youth justice item, the Office of Youth and Community Restoration described a proposed change to the JJRBG funding formula that would shift resources away from a DJJ-based measure and toward county youth population, serious offenses, and step-down placements in less restrictive programs. Members asked about data on Native American youth; OYCR said statewide data are limited, but its SYTF data show about 1% of youth in secure youth treatment facilities were Native in 2024. The Department of Finance had no objections, and the item was discussed as a way to support alternatives to long-term incarceration. The committee then reviewed the community corrections performance incentive program for county probation departments. The Department of Finance proposed stabilizing the program with a maintenance payment, updating the performance baseline, and adding a growth factor; the LAO agreed the formula needed changes but recommended using 2022-23 data instead of 2021-23, using marginal rather than average cost assumptions, rejecting the growth payment and minimum guarantee, and adding stronger oversight through the BSCC. Finance said it was open to some technical changes but opposed a new BSCC audit framework, noting Judicial Council already surveys probation departments and that evidence-based practice use has increased over time. Members and staff indicated the proposal still needed further work. A major portion of the hearing focused on the January 2025 Southern California wildfires and state disaster response. A resident of Altadena gave emotional testimony about evacuation failures, loss of home, and the need for accountability. LAO and Cal OES outlined the disaster response and recovery system, including mutual aid, alert and warning, debris removal, FEMA and state funding streams, and the long timeline for reimbursement. Cal OES said it had pre-positioned resources, temporarily took over the county’s wireless emergency alert function for about three weeks, coordinated debris removal and recovery operations, and had already allocated more than $286 million in state funds. Officials also discussed the 100% federal cost share for emergency work for 180 days and the uncertainty created by changing federal processes and the cancellation of the BRIC resilience program. The committee also heard two smaller Cal OES items: a request to reappropriate about $22 million for the law enforcement mutual aid reimbursement program, which the LAO said should be placed in statute with clearer goals and reporting, and an update on Victims of Crime Act funding, where Cal OES said federal VOCA allocations have fallen sharply and that roughly $224 million would be needed to maintain current service levels if federal funding does not improve. Public comment included a request for funding to expand datacasting and emergency alert receivers for wildfire and earthquake warning.

Transcript Highlights:

• I'm the Assistant Director of Performance Audit at the State Auditor's Office.
• We were using performance management standards for conducting a project.
• Fourth, Commerce did not manage or monitor grantee performance using consistent performance measures
• SAO Performance Audits, is adjourned.
• The Committee to Hear SAO Performance Audits is adjourned.

Summary: The Joint Legislative Audit and Review Committee subcommittee heard three State Auditor’s Office performance audits: implementation of the Law Enforcement Training and Community Safety Act, Washington’s digital equity planning, and the Department of Commerce’s Digital Navigator Program. In the law enforcement training audit, the State Auditor found the Criminal Justice Training Commission had developed most required training content but had not developed all required topics, lacked a systematic project management approach, and had weak tools to ensure participation and compliance. Auditors said most officers had not completed the required 40 hours, patrol tactics training was a major bottleneck, and the Commission’s reporting did not clearly show statewide compliance. The Commission said it generally agreed with the recommendations and had begun implementing some changes. Committee members raised concerns about staffing, liability, incentives, and whether the law had enough enforcement “teeth.” In the digital equity audit, auditors said Washington lacked a comprehensive, unified statewide plan, a designated leader, and reliable funding for digital equity efforts. They said existing plans were fragmented, with the NTIA-approved plan the most complete but no longer fully funded after federal changes. The State Auditor recommended the legislature establish oversight authority and require a lead organization to coordinate and evaluate statewide digital equity efforts and develop a unified plan. The Department of Commerce and Office of Equity agreed with the need for clearer leadership and coordination, and a public witness described ongoing coalition and local planning work. Committee members asked about best practices from other states and whether the auditor could provide additional research on coordination models. In the Digital Navigator Program audit, the State Auditor concluded Commerce did not consistently follow core grant-management practices, including competitive award processes, vetting of grantees, clear contracts, performance monitoring, and reimbursement controls. Auditors said Commerce expanded grants without a new competition, lacked adequate documentation and reporting, and paid out millions without sufficient support; they also cited management decisions that overrode staff concerns. Commerce said it had already begun major contract-management reforms, created a new contracts and compliance structure, and was working on risk assessments, documentation standards, and staff training. Members pressed Commerce on accountability, possible recoupment of improper payments, ethics issues, and whether the agency had clear performance metrics for the program. No votes were taken, and the hearing ended after public testimony and committee discussion.

Transcript Highlights:

• The average award size was $124,000.
• And many performing arts organizations just didn't survive.
• Nonprofit performing arts organizations across California.
• The performing arts industry is a powerful economic driver.
• Rather than awarding applicants on a first-come, first-served basis, awards are determined based on evaluation

Keywords: 987, senate, all

Summary: The subcommittee heard informational updates and budget requests from the Governor’s Office of Business and Economic Development (Go-Biz), the California Office of the Small Business Advocate (CalOSBA), and the California Film Commission. Go-Biz Director D.D. Myers described the California Jobs First strategy, including regional economic planning, sector working groups, and investments in priority industries such as ag-tech, space and defense, life sciences, semiconductors, and microelectronics. She also outlined budget proposals for a five-year extension of the CalCompetes tax credit, support for export promotion, additional staffing for the film tax credit program, innovation and emerging technologies work, and the new California brand campaign. Senators questioned the campaign’s purpose, its relationship to tourism promotion, and whether it could obscure regulatory and business-climate concerns; Myers said it was intended to counter misinformation, promote California’s economic strengths, and support business attraction and retention, not to shut down debate about policy challenges. CalOSBA Deputy Director Claire Whitmer and program partners reported on the California RISE program, the Performing Arts Equitable Payroll Fund, and technical assistance/capital infusion programs. CalOSBA said RISE’s first cohort awarded $16.9 million to 61 employment social enterprises, which collectively expanded operations and employment for people facing barriers to work; a second round is being launched with updated services and a new grant administrator. The Performing Arts Equitable Payroll Fund fully distributed $11.6 million to 100 recipients, but witnesses said demand far exceeded available funding and that the sector remains fragile after the pandemic and AB 5-related cost increases. The technical assistance and capital programs were described as serving more than 112,000 businesses in the last year, helping start 3,780 new businesses and leverage significant loan and equity capital, with emphasis on outreach to women-, minority-, veteran-, rural-, and low-wealth-owned firms. Committee members focused on whether these programs produce durable outcomes and reach underserved communities. One senator asked for longitudinal data on employment social enterprises and whether jobs created through incentives persist over time; CalOSBA said it would provide prior studies and future tracking. Another senator pressed for more outreach and support for small businesses at different stages of development, especially those in disadvantaged communities that may struggle to access capital. The California Film Commission then presented a request for three permanent positions and ongoing funding to administer the expanded film and television tax credit program. Commissioners said the program is tracking demographic and career-pathway data, with about 90% of productions opting into new diversity provisions and reporting due to the Legislature in 2027. The LAO supported the film commission staffing request given the larger program size and expanded applicant pool. No votes were taken; the items were informational or budget requests under review.

Transcript Highlights:

• These performance funds are not part of the base allocation.
• It can vary annually depending on district performance locally.
• Appropriate 20 million for performance funding across Florida's 28 state colleges in 24. 25.
• A Gold SEAL K program supporting 592 students with an average awarded $902.
• Totaled $533,713 supporting 602 students with an average award of $887.

Transcript Highlights:

• This year, 25 systems-based awards were awarded in the past year.
• the awards subcommittee and the PSCOC.
• One is for capital awards.
• We were awarded an initial award to get that going with UNM Valencia.
• One, just on the performance side of things: charter schools do close because of performance issues.

Transcript Highlights:

• This is an award language change. This is just utilizing part of the initial award.
• They were originally awarded 3 million for a system-based award.
• This is an award language change.
• The district is requesting to convert the award from a pre-K award to a standards-based award to allow
• We do a district performance award for those performing at the highest level, and that was provided to

Transcript Highlights:

• other items, including performance other items, including performance funding?
• uh in Kentucky were awarded uh awarded uh in Kentucky were awarded to<00:49:07.600> the<00:49
• The performance fund.
• It seems to me that we're awarding performance-based funding on a higher cost structure, and shouldn't
• Two, what is the purpose of performance Two, what is the purpose of performance funding?

Keywords: 958, all

Summary: The House Postsecondary Education Committee held its first-ever meeting and first meeting of the session, with Chairman Tipton outlining committee procedures, attendance rules, and the process for submitting committee substitutes. After a roll call confirmed full attendance, the committee heard a presentation from Senator David Givens on the history and purpose of Kentucky’s performance-based funding model for postsecondary education. Givens said the model was created to replace an older “shares” approach that distributed funds based largely on prior-year allocations, and argued the new system better aligns funding with student success and the state’s long-term educational attainment goals. Council for Postsecondary Education President Aaron Thompson and CPE staff then explained the model in more detail. They said the system was designed to address long-standing funding disparities among institutions, reward outcomes such as degrees, credit-hour progression, and completion in high-demand fields, and support the state’s “60 by 30” goal of having 60% of Kentuckians hold a postsecondary credential by 2030. Thompson said Kentucky is now at 56.2% attainment, above the national average, and highlighted gains in graduation and retention rates, lower student borrowing, and improved completion outcomes. He also emphasized that the model is part of a broader strategy that includes affordability, adult learners, low-income students, and wrap-around support services. CPE staff described the work group process that developed and periodically revises the model, noting that the General Assembly created the framework in House Bill 303 and later enacted Senate Bill 153 and Senate Bill 191 to codify changes. They explained that in 2016 the legislature carved out about 5% of institutional budgets, roughly $43 million, to be redistributed through the new model, and that the model has been reviewed every three years with changes made each time. Recent revisions included increasing the student-success weight, adding a premium for low-income students, creating a premium for adult learners, and redefining underrepresented students as first-generation college students. No votes were taken at this meeting, and the committee adjourned after the informational presentation and discussion.

Transcript Highlights:

• That Notice of Intent to Award is not actual contracts; it's the intent to award contracts.
• That if you, if HHSC were able to award strictly on performance, that it would actually provide for better
• over actual performance.
• Performing plans. You don't need to look at your middle or your low performing plans.
• We still have to perform.

Bills: HB149, HB252, HB643, HB1442, HB1500, HB1672, HB1851, HB1893, HB2028, HB2768, HB2818, HB149, HB252

Keywords: artificial intelligence, regulation, biometric data, ethical AI, consumer protection, AI governance, employment compensation, state agencies, salary payments, general appropriations, government efficiency, public works, contractors, payment bonds, government contracts, construction law, transparency, open meetings, government accountability, public access

Transcript Highlights:

• well in its application, we were awarded well in its application, we were awarded $213<00:06:08.480
• period one, we awarded the $213 million. period one, we awarded the $213 million.
• performance period The first performance period ends<00:53:03.200> October.
• Again, the breakdown for this 27 award, that's our current award we're told to plan with.
• <01:17:45.720> we're award, that's our current award we're award, that's our current award

Keywords: 958, all

Transcript Highlights:

• If you guys know the performer Sday, when we did our first performance, she was on there just chatting
• If you guys know the performer Sday, when we did our first performance, she was on there just chatting
• If you guys know the performer Sday, when we did our first performance, she was on there just chatting
• If you guys know the performer Sday, when we did our first performance, she was on there just chatting
• If you guys know the performer Sday, when we did our first performance, she was on there just chatting

Keywords: 1187, senate, all

Transcript Highlights:

• State law requires agencies to perform pre-award risk assessments for any grant of $50,000 or more.
• State law requires agencies to perform pre-award risk assessments for any grant of $50,000 or more.
• performance performance um<00:03:53.120> uh<00:03:53.280> duties<00:03:53.599> that
• , talking about the small grant awards, talking about the small grant awards, the<00:14:56.399>
• We have past performance identify risk. We have past performance with<01:28:47.360> grantees.

Keywords: 1183, house

Summary: The committee approved the March 3 minutes and then heard a presentation from the Office of the Legislative Auditor on state grant-management requirements. Deputy Legislative Auditor Katherine Tyson outlined the main controls agencies must follow, including pre-award risk assessments for grants of $50,000 or more, reimbursement as the preferred payment method, limits and documentation requirements for advance payments, and monitoring obligations for active grants. She emphasized that these controls are intended to reduce improper payments and fraud, but also require staff time and strong internal systems. In response to questions, she said advance payments are used in some grants but reimbursement is more common, and noted that agencies can add controls such as retaining a portion of funds, surprise visits, or audits. She also said surety bonds are required in some state programs, but not generally for grants, and that this could be a policy discussion for the executive branch. The committee then received a Department of Natural Resources presentation on the new Environment and Natural Resources Trust Fund community grant program created in 2023 law. DNR officials said the program is intended to expand access to ENRTF funding, especially for communities affected by pollution and environmental degradation, and to support projects such as environmental education, resource restoration, trail work, and aquatic invasive species management. They said the department will use the same grants team that handles Outdoor Heritage Fund and LCCMR grants, which already manages a large volume of grants, and that the advisory council application is open through April 10. DNR described its implementation plan as similar to the Conservation Partners Legacy program, with both standard and expedited grant rounds, technical assistance, and use of technical experts. Differences include no match requirement, allowance for fiscal agents to help smaller organizations, and more flexibility for administrative expenses to reduce barriers to participation. Officials said the program will follow state grant rules, including pre-award financial reviews and monitoring, and will use the 5 percent administrative allowance to support both oversight and grantee assistance. They also said the report’s suggestion of advance payments for grants under $50,000 was raised for discussion, but they did not dispute the auditor’s emphasis that reimbursement is the preferred approach.

Transcript Highlights:

• And 525 megawatts of incremental performance. 525 megawatts of incremental performance. Okay.
• on the performance.
• So there's a performance period. Awards have two years to complete.
• on the performance.
• So there's a performance period. Awards have two years to complete.

Summary: The committee first heard Issue 1 on trailer bill language to redirect funding for emergency demand-response programs. The Department of Finance proposed using about $26.9 million in General Fund originally set aside for the Distributed Energy Backup Assets program to bolster the Demand-Side Grid Support Program for summer 2026, and using about $70 million in CalCHAP interest to support ratepayer-funded demand response in summers 2027 and 2028. The CEC and CPUC said they are working on a transition from DSGS to ELRP or a successor program, while the LAO noted the General Fund money would otherwise revert to savings. Members pressed the administration on whether demand response remains important, whether DSGS has been successful, and whether the state should keep funding it through the CEC rather than shifting to a ratepayer-funded CPUC program. The CEC and CPUC said the programs are not directly comparable, emphasized different cost structures and enrollment metrics, and said a CPUC rulemaking is underway with a proposed decision expected in Q3 2026. No vote was taken in the transcript. The committee then took up Issue 2, a budget proposal tied to SB 254 and the new transmission accelerator. GoBiz and the California Infrastructure and Economic Development Bank described a five-year, roughly $26 million request to staff and administer the accelerator and manage Proposition 4 and AB 1207 funds for transmission financing. Members asked about state liability, ownership of financed lines, FERC revenue requirements, and whether the program would help underserved regions and offshore wind development. Staff explained that the accelerator would only consider projects already identified through CAISO’s competitive transmission planning process, and that state financing would be a small portion of large projects intended to lower overall costs to ratepayers. The LAO said it had no specific concerns but urged the Legislature to ensure the final language matches its intent. The committee also heard Issue 3 on petroleum market oversight. The CEC and its Division of Petroleum Market Oversight requested additional positions and funding to implement ABX2-1 and continue work on supply stabilization, refinery monitoring, and transportation fuels analysis. Members questioned why the work was funded through the Energy Resources Programs Account, whether existing staff from the paused price-gouging work could be reassigned, and whether the program had produced evidence of price gouging or improved supply conditions. CEC and Finance said the new positions are needed because the workload has expanded, while some existing staff remain on related analysis and reporting duties. The discussion ended without a vote in the transcript.

Transcript Highlights:

• awarded on December 29th, 2025.
• Secondly, unallowable costs and limitations: pre-award costs.
• Future funds and awards will be conditional on recipient satisfactory performance in implementing the
• Future funds and awards will be conditional on recipient satisfactory performance in implementing the
• That's the award that we get.

Bills: HB1623

Keywords: HB 1623, North Dakota, rural health, rural health transformation program, medical facility infrastructure loan fund, medical facility infrastructure loan program, rural health loan program, Bank of North Dakota, Department of Health and Human Services, HHS, federal grant, health care infrastructure, rural hospitals, critical access hospitals, nonprofit health care providers, gap financing, loan fund, public health funding, healthcare financing, Medicaid

Summary: The committee heard House Bill 1623, the appropriations bill tied to North Dakota’s Rural Health Transformation Program, which is funded through a new federal rural health care grant. Senator Bekkedahl explained the bill’s background, the interim committee process that developed it, and the federal conditions attached to the award, including spending deadlines, administrative cost limits, and restrictions on uses such as new construction, supplanting existing funding, and certain other costs. Legislative staff then walked through the seven sections of the bill, including appropriation authority, transfer authority, contingent appropriations for pass-through grants, procurement and public improvement exemptions, recipient reporting, legislative reporting, and immediate effective date. Commissioner Traynor and HHS staff described how the department plans to implement the program, emphasizing that the funding is intended to improve rural access, workforce recruitment and retention, technology and data connectivity, and community health initiatives. They said the department will rely on local applications, technical assistance, templates, listening sessions, and partnerships with providers, schools, public health units, tribal entities, and other community groups. Members asked about reimbursement timing, upfront costs, administrative expenses, sustainability after the five-year grant period, and whether CTE centers, public health units, gyms, grocery stores, and other community partners could participate; the department said yes, within program rules and with a focus on measurable outcomes and sustainability. Several supporters testified in favor. Mental Health America of North Dakota and the Mental Health Advocacy Network supported the bill and urged investment in community-based mental health, crisis response, children’s services, peer support, and mobile crisis teams. HIA Health described the grant as a chance to expand home-based and hospice care, noting that rural providers already have workable models but need funding to scale them. A cybersecurity representative also supported the bill, warning that the large amount of health data and AI-related tools will require strong data protection and professional support. The hearing was closed with no opposition testimony, and the committee announced it would return later in the day for further work on the bill and other measures.