Transcript Highlights:

• Now, again, that doesn't cost us. That doesn't cost you.
• side and operational costs on the education side.
• Oh, how much would it cost? Well, it costs this much money, fine, where do we find the money?
• How much would it cost? Well, it costs this much money. Find where do we find the money?
• And how much does it cost?

Committee: Senate Senate Committee on Intergovernmental Affairs

Transcript Highlights:

• costs, and reduce the number of 100% disability cases.
• AB 1582 threatens to cripple this operational lifeline.
• Similarly, transplant services operate within narrow clinical windows.
• Today, CalSavers is already operating at scale.
• We know that these are tools to cut costs without regard...

Committee: Senate Labor, Public Employment and Retirement

Transcript Highlights:

• And there will be costs associated if you eliminate those cost-sharing ideas.
• Hospitals are clear on all prices and costs. PBMs are clear on all prices and costs.
• PBMs are clear on all prices and costs. Is hospitals are clear on all prices and costs.
• PBMs are clear on all prices and costs?
• the cost for the needy.

Committee: House Health and Mental Health

Summary: The committee first met in executive session and approved a combined House Committee Substitute for House Bills 2642, 2296, 1996, and 1680 on a 15-0 vote after adopting a committee amendment and substitute. It then adopted a substitute for House Bill 2596, which expanded access for sole proprietors with at least one common law employee and their dependents, and passed that bill do pass by a 15-0 vote. The committee then heard several health-related bills. House Bills 2194, 2349, 1826, and 2560 focused on expanding epinephrine access in schools, child care facilities, nursing homes, and first responder settings to include nasal sprays and other delivery systems, with testimony emphasizing the need for easier administration, training, and broader school nurse support. House Bill 1827 would add occupational therapists to the list of professionals who can certify disability parking placards and plates, with supporters saying OTs already perform the functional assessments needed. House Bill 1783 would let the Department of Health and Senior Services contract with nonprofit public health institutes to help administer federal public health grants and reduce lapsed funds; supporters said the state lacks staffing capacity, while some members raised concerns about oversight and fraud. Finally, Representative Peters presented House Bill 2372, a large omnibus health bill combining many previously heard measures, including epinephrine delivery system updates, pseudoephedrine purchase limit changes, doula participation in Mo HealthNet, telehealth, workplace violence signage, long-term care inspection changes, RX CARES sunset removal, 340B language, anesthesia time protections, and other provisions. Support came from numerous medical, nursing, pharmacy, public health, and provider groups, while opposition focused mainly on the 340B provisions, non-opioid alternative language, anesthesia contracting language, and telehealth standards, arguing those sections needed separate consideration and stronger transparency safeguards.

Transcript Highlights:

• It helps offset the cost of application and compliance reporting.
• That's just unavoidably an expensive operation. Next slide.
• Those will be costs added to development overall.
• How long has your pilot been operating? Thank you.
• of operation.

Committee: Senate Housing

Summary: The committee heard presentations on several housing finance and permitting tools. Chattanooga described its payment-in-lieu-of-taxes (PILOT) affordable housing program, which ties property tax abatements to the number and affordability level of units provided, using a calculator based on market rents and HUD affordability levels. Senators asked about the 15-year term, auditing, and whether the program was attracting private market-rate developers; the presenter said the first mixed-income project would include 278 units with 42 affordable units and that annual compliance monitoring is conducted. Shoreline then described its MFTE and inclusionary housing approach, emphasizing that longer 20-year exemptions helped make projects pencil out and that most recent development has clustered around light rail station areas; city staff said they will study whether the program should be adjusted further and noted the importance of the new state inclusionary housing law. The Department of Commerce and MRSC discussed tax increment financing, proportional impact fees, and the CHIP program. Commerce explained that TIF can fund public improvements such as roads, utilities, parks, broadband, and some affordable housing or child care facilities, but jurisdictions should only use it when development is likely to occur and the public benefit justifies the investment. On impact fees, Commerce said fees should be proportional to the actual infrastructure demand of a project and based on capital facility plans; it also noted that fee reductions for affordable housing must be backfilled through CHIP. Senators asked for more information on CHIP funding levels, project selection, and how much of it supports affordable housing. Commerce also presented the first annual permit-timelines report under the 2023 permitting reforms, saying 2024 data showed timelines still exceeding statutory goals and that future reports will examine factors such as paper versus electronic processing and local reform efforts. Auburn and Bellevue highlighted local permitting innovations. Auburn said it has moved to fully electronic review, uses MyBuildingPermit.com, has internal performance standards, and offers a stock-plan program that can cut later review to about a week; staff said most stamped plans still require at least two review cycles and that the city is watching how middle-housing code changes affect development. Bellevue described a pilot with GovStream AI to use artificial intelligence for pre-application assistance, document triage, and plan-review support, with the goal of reducing back-and-forth and improving application quality. Finally, Seattle presented a pilot for accessory dwelling unit co-development in which a mission-driven partner would finance, build, and manage backyard ADUs for homeowners, with the owner eventually buying out the partner; senators raised questions about rent-setting, management fees, liability, and what happens if a homeowner sells early. The committee also heard from community land trust representatives, who explained how ground leases and resale restrictions keep homes permanently affordable and allow public subsidies to serve multiple generations.

Transcript Highlights:

• A project has its operating cash flow and operating income, which it uses to pay off debt service and
• That's just unavoidably an expensive operation. Next slide.
• How long has your pilot been operating? Thank you.
• And I thought, oh, my gosh, that would add a significant cost.
• of operation.

Summary: The Senate Housing Committee heard presentations on a range of housing finance, permitting, and affordability tools. Chattanooga described its affordable housing PILOT program, which uses a per-unit property tax abatement tied to the rent loss from providing affordable units, with a 15-year term and annual compliance monitoring. Committee members asked about the program’s structure, whether it had been used elsewhere, and who was participating; the presenter said the first mixed-income project would bring 278 units with 42 affordable units and that the model was attracting private market-rate developers. Shoreline then described its MFTE and inclusionary zoning approach, emphasizing that longer tax exemption periods and station-area zoning changes had helped spur development, with most current pipeline projects concentrated near light rail stations. The committee also heard from the Municipal Research Services Center and the Department of Commerce on tax increment financing, proportional impact fees, and permit timelines. Commerce explained that TIF can fund public improvements such as roads, utilities, broadband, and some affordable housing or child care facilities, while proportional impact fee guidance is intended to help jurisdictions charge fees more closely aligned with actual project impacts. On permit timelines, Commerce presented its first annual report under recent law changes, using 2024 as a baseline year and noting that reported timelines were generally longer than statutory goals; members asked about outliers, paper versus electronic processing, and whether back-and-forth between applicants and staff was driving delays. Commerce said it would follow up with more data, including on CHIP funding and permit reform practices. Several local governments then shared permitting process improvements. Auburn reported relatively short review cycles and described its move to fully electronic permitting, internal performance standards, and a stock plan program that speeds review for repeated home designs. Bellevue described an AI permitting pilot with a local startup to help with pre-application questions, document triage, and plan review, aiming to reduce incomplete applications and revision cycles. Seattle presented a pilot for accessory dwelling unit co-development in which a mission-driven partner would help homeowners split lots, finance, build, and manage ADUs, with the homeowner eventually buying out the partner and retaining ownership; committee members asked about rent setting, management fees, and default risk, and staff said they would follow up. The committee also heard brief overviews of community land trusts and limited equity cooperatives as permanent affordability models, with presenters urging continued state and local funding support and policy recognition for these approaches.

Transcript Highlights:

• So what we'd like to do is defray those costs.
• We're not operating it. We don't need anything.
• It would have cost a fortune to move into that.
• Sincerely appreciate the cost savings.
• Sincerely appreciate the cost savings.

Summary: The Appropriations Subcommittee on Public Safety and Judiciary heard presentations from several agencies. The Office of the Chief Medical Examiner reported full National Association of Medical Examiners accreditation, major improvements in turnaround times, staffing growth to 18 forensic pathologists, and expanded rural coverage, but warned that a flat budget would leave it short of funds by August. The agency requested $4.5 million in recurring funding for professional staff and operations, citing rising supply, transport, IT, and facility costs, and said failure to fund the request would cause a catastrophic collapse. Members asked about cremation fees, other revenue sources, and the consequences of not funding the request; the chair said the recommendation would be forwarded but not necessarily adopted. The Council on Judicial Complaints said complaints against judges have roughly doubled since 2018, with most complaints involving dissatisfaction with judicial rulings rather than misconduct. The council emphasized its goal of responding within 90 days, its new judges college to prevent ethics problems, and the cost of removal proceedings. It requested an additional $125,000 on top of its current $300,000 appropriation to cover rising operating costs, a lease increase, judicial college expenses, and salary adjustments. Senators asked about case prioritization, turnover, staffing, and whether a specific courtroom incident could be investigated; the director said it would be an appropriate complaint to review. The Oklahoma Indigent Defense System described heavy caseloads in rural counties, a mix of satellite offices and county contracts, and a need to reduce attorney workloads, especially in Norman and Lawton. It requested funding for six resource navigators, a project manager, direct-care support, eight additional attorneys, internal training, and continued county contract funding, while also discussing possible diversion programs and grant opportunities. The Department of Corrections requested increases for county jail backup per diem and ICON maintenance, highlighted contraband interdiction, centralized visitation, mobile check-ins, and tablet-based efficiencies, and discussed an ICE detention contract at Watonga that brings in monthly revenue and jobs but is not counted in the budget request. The Oklahoma Bureau of Narcotics and Dangerous Drugs presented a revised legacy-fund request tied to purchasing and remodeling a building shared with OSBI, saying the new plan would cost about $25 million total and save money compared with new construction; it also noted declining wire-transfer revenue tied to fewer grow operations and other enforcement changes.

Transcript Highlights:

• You have your construction costs, your soft costs, your entitlement costs, your land use costs.
• You have your construction costs, your soft costs, your entitlement costs, your land use costs.
• of housing, lower the cost of development, and then lower the cost of... ...then you can reduce those
• fees, lower the cost of housing, lower the cost of development, and then lower the cost to the end consumer
• It prevents cost shifting to the general rate payers.

Summary: The committee took up a long agenda of land use, public records, infrastructure, and local-government bills. The most debated measures were CS for CS for HB 399 and CS for HB 979, both sponsored by Rep. Borrero, which sought to streamline development approvals and reduce local-government barriers. HB 399 would require simple-majority approval for certain land development applications, mandate local definitions of compatibility, and add provisions affecting destination resorts, manufactured housing, historic properties, and a study of urban development boundaries. HB 979 would allow administrative rezoning of environmentally damaged five-acre-or-larger parcels in Palm Beach, Broward, and Miami-Dade counties for residential use if adjacent to neighborhoods. Supporters argued both bills would increase housing supply, encourage cleanup of contaminated land, and lower costs; opponents argued they preempt local decision-making, weaken voter-approved growth controls, and do not guarantee affordability. Both bills were amended and then reported favorably, with HB 399 passing 16-10 and HB 979 passing after debate. The committee also approved CS for HB 437, a public records bill by Rep. Andrade, on a 25-0 vote. The bill requires agencies to respond to public records requests within three days by producing the records, citing why they cannot, or giving a good-faith estimate of time and cost; it also limits agencies from later relying on exemptions not previously raised. Proponents said the measure addresses long delays and nonresponses by agencies, while school district representatives warned the timeline could be difficult for large, complex requests. The committee adopted the bill and sent it favorably. Several local and special district bills were also approved. CS for CS for HB 1103 would help local governments coordinate with FWC on derelict vessels and anchoring issues and passed unanimously. CS for HB 1245, dealing with biosolids regulation, also passed unanimously. CS for HB 4081 to expand the East Point Water and Sewer District passed 25-0. CS for HB 4103, creating a state special district for the Apalachicola water and sewer system, passed 25-1 after testimony from city officials who argued the city had improved its water system and should retain a role. CS for HB 4105, expanding the Port St. Joe Port Authority into a multi-county regional board, passed 23-3 despite opposition from residents concerned about infrastructure, environmental impacts, and local control. The committee also began consideration of PCS for CS for HB 433, an agriculture-related bill with changes to surplus lands and other provisions, but the transcript cuts off before final action on that measure.

Transcript Highlights:

• Operation Game Thief was established in 1981 by the 67th Legislature.
• No, I understand there's costs. What I'm saying is that...
• So the way that would operate.
• Here's what that cost is and it can't go above that percentage.
• It's out of just the membership and out of the... within TSCRA of our operating.

Bills: SB384 , SB503 , SB565 , SB616 , SB740

Committee: Senate Water, Agriculture and Rural Affairs

Keywords: hunting license, fishing license, donation, operation game thief fund, wildlife conservation, livestock, electronic registry, marks and brands, Texas Animal Health Commission, animal identification, SB 565, Texas Water Code, TCEQ, Texas Commission on Environmental Quality, compliance agreement, enforcement suspension, utility consolidation, regionalization, water supply, sewer

Summary: The Senate Committee on Water and Agriculture and Rural Affairs convened under the leadership of Chairman Kelly Hancock, who opened the meeting with a prayer in remembrance of Chairman Perry, who was absent due to a personal loss. The session focused on the discussions surrounding SB384, which aims to support the longstanding initiative known as Operation Game Thief. Senator Flores presented the bill, emphasizing its essential role in the fight against poaching through public support. The operation has a successful track record of convictions but is currently dependent on donations and merchandise sales for funding. The committee aimed to vote on multiple bills during this session, contingent on achieving a quorum. Notably, discussions also revolved around fiscal notes on two bills that were set aside for later consideration, indicating the committee's intention to carefully manage their legislative decisions. The meeting showcased a productive atmosphere, with committee members actively engaged in the review and potential advancement of key legislative measures.

Transcript Highlights:

• </c><01:25:47.440><c> of</c> relates to the county share of cost of relates to the county share of cost
• It comes from our operations area.
• ,</c> create home affordability to lower cost, create home affordability to lower cost, I<02:42:20.880
• </c> operations, how to cover increasing cost operations, how to cover increasing cost of<02:42:37.200
• Also, um the cost in this instance.

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• It is a low-cost airline, has stopped operation.
• uh airline has stopped is a lowc cost uh airline has stopped operation operation operation I<00:30:28.799
• </c> I think it's a suspension of operation I think it's a suspension of operation uh<00:30:31.720><c
• </c> all kinds of programs that that operate all kinds of programs that that operate in<00:50:04.240>
• </c> to it with respect to our operating to it with respect to our operating budget<04:41:02.878><c>

Summary: The Committee on Finance held its first informational briefing for 2025, beginning with member introductions and then hearing an economic outlook presentation from Dr. Eugene Tian of the Department of Business, Economic Development and Tourism. Dr. Tian said Hawaii’s economy was in relatively good shape in several areas, especially construction, which he described as at a historical high, with construction employment above 40,000 monthly and building permit values and contracting tax base both up sharply. He also noted real estate sales had rebounded in 2024, the labor market had stabilized with unemployment around 2.9%, and initial unemployment claims were below 2019 levels. At the same time, he highlighted challenges including inflation running above the national rate, a shrinking labor force, lower employment compared with 2023, and continued weakness in visitor spending and arrivals. He said future growth would likely come from health care, professional services, construction, tourism recovery, and diversified sectors such as renewable energy, aquaculture, creative industries, and technology. Dr. Tian also discussed Hawaii’s economic structure and recovery, saying the state remains more concentrated in a few industries than the U.S. overall, with government and hospitality making up larger shares of the economy. He said non-tourism sectors had recovered, but tourism-related jobs and output were still below pre-pandemic levels, with Maui and the visitor industry still affected by the wildfire and COVID-19 impacts. He projected tourism and non-agricultural wage and salary jobs would not fully recover until 2027, and said population trends remain a concern because of aging, the likelihood of deaths outpacing births in coming years, and reliance on in-migration. After his presentation, the chair said questions would be taken later and the committee took a short break. After the break, Dr. Carano of the Hawaii Executive Director’s office presented a second outlook, saying Hawaii’s economy in 2025 looked better than 2024 overall, though he emphasized substantial uncertainty tied to the incoming federal administration. He said possible changes to tariffs, tax policy, immigration, and federal spending could raise inflation and keep interest rates higher than previously expected, which would affect housing, consumer debt, the dollar, and Hawaii’s visitor industry. He noted that U.S. visitors account for roughly three-quarters of visitor spending in the state, making federal policy especially important. He also said deregulation could be a long-term positive but would not likely have much effect in 2025 or 2026. As an additional risk, he pointed to bird flu and its effect on livestock, poultry, and egg prices. No votes or formal actions were taken during the briefing.

Transcript Highlights:

• costs, something is very wrong.
• the taxpayers and cost our schools.
• But this amendment costs the schools much less than it will cost to go through those lawsuits.
• And then we have MSOC, material, supplies, and operating costs.
• They're materials, supplies, and operating costs.

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Summary: The House first took up Substitute Senate Bill 6225, a transportation bond measure. Supporters said it was needed to fund preservation and maintenance of Washington’s transportation system, including road upkeep and emergency repairs, while opponents argued the state had already addressed current needs through a recent unanimous budget and existing bond authority. The bill passed final passage 59-38, meeting the required three-fifths vote. The House then considered Gross Substitute Senate Bill 6260, an education budget-related bill with many floor amendments focused on transition to kindergarten, alternative learning experience (ALE) funding, local effort assistance (LEA), educational service district reserves, superintendent pay, MSOC funding, and collective bargaining limits. Most proposed amendments were rejected, though Amendment 2654 on TK priorities was adopted. After the committee amendment as amended was adopted, the bill advanced to third reading and then passed 50-47. Supporters described it as a necessary budget reduction and risk-management measure; opponents argued it cut K-12 funding too deeply, especially in rural and property-poor districts, and would worsen inequities and invite litigation. The House also concurred in Senate amendments and passed several other bills. House Bill 1796, about school construction financing and capital levy use, passed 95-2. Second Substitute House Bill 2105, dealing with immigrant worker protections, passed 58-38. Engrossed House Bill 2211, on food sourcing for a health-related program, passed unanimously. Engrossed Substitute House Bill 2225, regulating companion chatbots and child safety, passed 74-21. Engrossed Substitute House Bill 2247, related to animal care, passed unanimously. Engrossed Second Substitute House Bill 2418, streamlining permitting timelines to support housing affordability, also passed unanimously. The House then moved on to additional Senate-concurred bills, beginning with Second Substitute House Bill 1906.

Transcript Highlights:

• Um sorry I'm operational autonomy.
• </c> all of our cost. all of our cost. &gt;&gt; Senator<00:42:17.760><c> Office.
• </c> So we operate on a reimbursement model within the state system. We do a cost study.
• So we operate on a districts.
• We do a cost study. So, we system. We do a cost study.

Committee: Joint Education

Transcript Highlights:

• student's cost.
• The state's increased workers' compensation costs, mostly due to the rising cost of medical.
• , operation from start to finish.
• FEMA estimates that this cost will be about $156 million. They will reimburse 75% of that cost.
• The speaker said there are significant clinical and operational costs for QRTPs and other residential

Committee: House Budget

Transcript Highlights:

• </c><00:25:22.159><c> This</c> your u replacement cost value. This your u replacement cost value.
• ><c> the</c><00:25:24.240><c> insurance</c> measure does not cost the insurance measure does not cost
• </c> the standard inflationary cost the standard inflationary cost adjustment, the<00:42:32.000><c> the
• The cost of the groceries.
• </c> This is the you know inflationary cost This is the you know inflationary cost under<00:57:55.280

Summary: The committee first took up a short-form administrative licensing measure requested by the administration to correct and clarify renewal provisions in a prior bill. Members raised no questions, and the committee voted to adopt the proposed Senate draft and recommit the bill back to the Commerce and Consumer Protection Committee for a further public hearing. The committee then heard SB 2876 on natural hair braiding, which would exempt natural hair braiders from licensing under certain conditions. The Board of Barbering and Cosmetology said it views hair braiding as within the broader scope of cosmetology, but agreed that people who only braid hair should not need a license because the training and exam requirements are minimal. The board warned, however, that exempting braiders could create consumer protection gaps involving sanitation, training, and enforcement, and noted that related services such as waxing, cutting, coloring, shampooing, and relaxing would still require licensure. Supporters included the Grassroot Institute of Hawaii and the Institute for Justice. The committee also heard SB 2950 on captive insurance and SB 2951 on insurance proceeds. On SB 2950, the Insurance Division opposed the bill, saying captive insurance is designed for formal self-insurance for companies and that allowing captives to insure the public would not fit the existing regulatory framework; a fire survivor advocate supported the measure as a way to expand disaster-related insurance options. On SB 2951, which would require mortgage servicers to follow certain rules for disbursing insurance proceeds after residential damage or destruction, United Policy Holders strongly supported the bill, citing delays in releasing funds and the need to help survivors rebuild, while banking and financial industry groups submitted opposition or comments. Finally, the committee heard SB 2952, SB 2960, and SB 2964, all related to property insurance and disaster recovery. SB 2952 and SB 2960 would extend the time policyholders have after a declared disaster to submit documentation and recover replacement cost value, with supporters arguing that rebuilding after major disasters takes far longer than standard policy deadlines allow and that the bills would improve consumer protection and transparency; the Insurance Division, the Insurance Council, and national insurance groups opposed the measures. SB 2964 would require annual disclosures of replacement cost value and coverage sufficiency; the Insurance Council opposed it as costly and unnecessary because policies already include inflation-related adjustments, while United Policy Holders and fire survivors supported it, saying many homeowners are underinsured and do not understand their coverage.

Transcript Highlights:

• A fiscal note is available and shows no cost to the Department of Revenue and an indeterminate cost to
• , they should be able to negotiate some of the operating conditions.
• A fiscal note is available with no estimated state fiscal costs and additional local costs depending
• So that has been a desire on the operating agreement side.
• And the structure is just not set up for how LECs are operated.

Bills: HB2304 , SGA9280 , SGA9281

Committee: Senate Housing

Keywords: condominium, housing, warranty, property rights, construction

Transcript Highlights:

• Is it fair for taxpayers to subsidize corporate labor costs?
• Is it fair for taxpayers to subsidize corporate labor costs?
• And what does that cost the state and taxpayers each year?
• This is the manner in which they operate their business.
• And now we are seeing this cost in human life that's going to be expected as well.

Committee: House Labor and Employment

Transcript Highlights:

• as all the other families that worked for the small operation.
• Furthermore, the cost of implementing robust security measures such as...
• Depending on the size of the organization and the complexity of its operations, these costs can be prohibitive
• My name is Brian Giuliani, and I am Chief Operating Officer in Tampa Bay.
• My name is Brian Giuliani, and I am Chief Operating Officer in Tampa Bay.

Committee: Senate Commerce and Tourism

Summary: The Commerce and Tourism Committee met to hear an overview of its jurisdiction and then focused primarily on Florida manufacturing. Secretary of Commerce Alex Kelly described manufacturing as central to a more resilient, diversified economy, citing the 2023 Florida Manufacturing Report and noting strong growth in manufacturing businesses, jobs, exports, and workforce programs. He emphasized that most Florida manufacturers are small businesses, that the sector is increasingly STEM- and technology-driven, and that the state’s main challenge is workforce aging and the need to retain trained talent. Members also discussed how to better expose students and parents to manufacturing careers, improve startup access to capital, and strengthen regional manufacturing corridors and transportation links. Kevin Carr of FloridaMakes said Florida is on track to become a top-five manufacturing state, but warned that productivity, technology adoption, and workforce shortages remain key issues. He said a proposed manufacturing bill would create a chief manufacturing officer and help address workforce, technology, and market-visibility challenges. Bain Beecher of PGT Innovations described the company’s growth and community role, but highlighted obstacles such as affordable housing, insurance costs, permitting delays, supply-chain disruptions, and limited awareness of manufacturing careers among students and parents. Andrew Kosowski of Veterans Metal focused on small- and medium-sized manufacturers, citing labor shortages, the cost of adopting new technology, regulatory burdens, and cybersecurity compliance as major pressures, and urged support for the draft manufacturing bill. Brian Giuliani of the Port of Tampa Bay outlined the port’s cargo mix, infrastructure investments, and role in moving fuel, construction materials, and manufactured goods, saying the port’s expansion and transloading plans could better connect Florida manufacturers to suppliers and markets. Committee members repeatedly stressed the need to promote manufacturing careers earlier in school, improve public perception of the industry, and reduce barriers to investment. No formal vote was taken during the discussion, but the panelists broadly supported the draft manufacturing legislation and the committee’s focus on manufacturing policy.

Transcript Highlights:

• what it costs for diabetes.
• what it costs for diabetes.
• So that was a cost shift; it was really just a cost shift that we made.
• Sometimes this comes at a cost, whether the cost is financial, emotional, or health-related.
• We know we can do it in a cost-neutral and a cost-beneficial way.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• Currently, state employees only pay about 7% of their health insurance costs.
• Currently, state employees only pay about 7% of their health insurance costs.
• Employees only pay about 7% of their health insurance costs.
• Because some counties operate differently. So, Madam Whip and members.
• for the administrative costs of the employment and unemployment insurance program.

Transcript Highlights:

• got a defect, to identify that defect and assist the operator in correcting the defect so that it operates
• Our prior school safety series has covered emergency operation plans.
• We questioned costs for this specific transaction, which were $41,05.
• The special audit could cost between $547,000 and $625,000.
• We have not noted any fraud, but we have noted questioned costs.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.