Transcript Highlights:

• "And then I see provide funds to administer federal low-income home energy assistance program.
• If that's correct, could you explain the rationale for decreasing the funding for this program while
• the fun- funding for this program<00:33:48.840> while<00:33:49.080> increasing<00:33:49.720
• > the<00:33:49.800> funding<00:33:50.880> for program while increasing the funding
• for program while increasing the funding for the<00:33:51.080> UK<00:33:51.440> Medicare

Keywords: 958, all

Summary: The committee first approved a motion and then deferred a large batch of 246 contracts totaling about $187.8 million until the April 2026 meeting. It then moved through the agenda and reviewed several pulled items, beginning with four Attorney General contingent-fee contracts. Committee members questioned why the contracts were new, what the $20 million maximums meant, and how the fees would work; the AG’s office explained they were new awards from a September RFP, that the $20 million was an outside estimate tied to a full recovery, and that one contract would require a $380 million recovery to pay out the maximum. The committee voted to consider those contracts reviewed without objection. The Department of Highways then explained an “alternative delivery support” contract, describing it as a procurement method different from the usual design-bid-build model and noting it can help with innovation, speed, timeliness, or cost reduction. After that explanation, the committee again voted to consider the contract reviewed without objection. The Kentucky Horse Park/Kentucky Horse Racing and Gaming Corporation presented eight legal services contracts; members focused on differing hourly rates and retroactive approval. The corporation said it had selected four firms through an RFP to maintain flexibility and avoid conflicts, would use in-house counsel first, and did not expect to use the maximum rates. Senator Thomas argued the committee’s statutory hourly rate cap is outdated and should be revisited. The committee then approved the contracts. One Transportation Office of the Secretary contract was deferred to the April meeting, consistent with the agency’s prior request. The committee then reviewed Cabinet for Health and Family Services items from the Department of Community Based Services: three contract amendments and one memorandum of agreement. Members asked about funding sources, service outcomes, and whether the programs reduce future need; the agency said one amendment was a $55,000 increase offset by reductions elsewhere, that the total contract amount with the agency did not change, and that follow-up data show over 90% of children remain in the home after services. The committee approved those items. Finally, the committee reviewed a LIHEAP contract amendment from the Division of Family Support, which the agency said used federal funds, not state general funds, to add newly appropriated federal money for low-income home energy assistance and crisis heating support. Members asked about future funding and were told that continuation depends on Congress. The committee approved that item. It then began reviewing Behavioral Health, Developmental and Intellectual Disabilities memoranda of agreement tied to Kentucky Correctional Psychiatric Center staffing; members asked for a count of personnel, and the agency said it would provide that information, after which the discussion continued.

Transcript Highlights:

• There is a base budget decrease in the Medicaid program that is actually saving some funds—about 1.2%
• Okay, so on slide 10, I'll talk about the Medicaid-based program general fund request.
• So going to slide 17, our base program budget request is $323 million general fund.
• Chair, Madam Secretary, so when we talk about the funds to pay for these activities or programs...
• In a social work program where they receive funding to become a social worker, get a degree in social

Keywords: 996, all

Transcript Highlights:

• Program.
• the Land Acquisition Trust Fund for reforestation and efforts in the Florida Future Forest Program.
• to state funding.
• All right. $603,200 in trust funds to procure testing equipment for the electric vehicle testing program
• So it says, as you can see, the department actively seeks and uses federal funding under USDA programs

Summary: The Agriculture and Natural Resources Budget Subcommittee met to hear member-led presentations on agency budget requests after prior meetings with the agencies. Representative Barnaby summarized the Florida Department of Agriculture and Consumer Services’ fiscal year 2025-26 request, highlighting major funding for the Rural and Family Lands Protection Program, Florida Forest Service wildfire and land management needs, citrus disease and research efforts, a new Conner Complex facility and lab, agricultural water and BMP projects, agricultural law enforcement staffing and equipment, maintenance and vehicle needs, and federal grant-related spending. No vote was taken on the department’s request during the meeting. Representative Bartleman presented the Department of Environmental Protection request and said the subcommittee supported it fully. The request emphasized Everglades restoration, water quality grants, springs, harmful algal bloom and red tide response, alternate water supplies, resilience and flood prevention, beach and coral reef restoration, land acquisition and state parks, and cleanup of petroleum, dry cleaning, and hazardous waste sites. Representative Alvarez asked DEP to provide a list of the most contaminated lakes, along with estimated costs, so the committee could prioritize cleanup efforts. Representative Black summarized the Florida Fish and Wildlife Conservation Commission request, which included additional law enforcement funding in high-demand areas, oyster and reef restoration, habitat restoration, heavy equipment for land management and prescribed burning, a water survival training center, and red snapper data research. Representative Salzman then presented the Department of Citrus request, describing a lean agency budget focused on operations, PALM readiness, marketing and consumer awareness, greening-resistant plant material, and building repairs; the workgroup recommended fully funding the request. The meeting ended with members thanking the chair and staff for the more member-driven budget process, and the subcommittee adjourned without objection.

Transcript Highlights:

• We have the funds to cover this and we’re planning to add additional positions to our non-state program
• This program's governance and oversight, once the legislature funds the program, is through our LEED
• I wanted to give you a quick snapshot overview of the program, how it's funded, and then a couple of
• Our facilities program, major repairs, that has transportation trust fund regular appropriated, and then
• That program is led by our federal partners, and the timing of projects getting construction funding

Keywords: 965, house, all

Summary: The Ways and Means Committee held an informational hearing on the state capital outlay process, with Roger Husser and Matt Baker of the Division of Administration’s Office of Facilities Planning and Control (FPNC) presenting a detailed review of House Bill 2 and proposed improvements. They said FPNC administers about 54% of the bill, while other agencies administer the rest, and emphasized that the capital outlay program has improved significantly over the last few years, with project expenditures more than doubling due to better cash-flow management, staffing changes, and more efficient project administration. They also explained how the bill is structured by priorities, how the priority-one cash line of credit is capped and adjusted for construction inflation, and how the bill has grown into a much larger, longer-range plan than a true five-year program, especially on the non-state side. A major theme was that the bill contains too many dormant, legacy, and low-priority projects, which creates false expectations and ties up funding. Committee members pressed the presenters on culture change, third-party project management, staffing shortages, and the use of technology and statutory interpretation to speed projects without sacrificing compliance. Husser and Baker said they had reduced internal bureaucracy, used staff augmentation because of hiring difficulties, delegated smaller projects to agencies when appropriate, and improved cash-flow analysis so projects can move forward with less money up front. They also discussed overappropriations, dormant projects, and the need to reappropriate unused funds to projects that can actually spend them. The presenters offered several recommendations and considerations: limit the number and size of new projects, reduce scope creep, require more regular endorsement of long-running projects, consider caps on priority-five funding, impose time limits and reporting requirements on non-state grant projects, and possibly require non-state entities to escrow or otherwise demonstrate their match earlier. They also suggested bundling related projects together, expanding that approach beyond the current pilot, and improving transparency by showing full project funding history and the first year each project appeared in the bill. No votes were taken, and the meeting remained informational, with members generally supportive of the efficiency reforms while also raising concerns about false hope, dormant projects, and the need for clearer expectations and accountability.

Transcript Highlights:

• In addition to charter schools, we have the Public Project Revolving Fund, which is the primary program
• In the PSEOC funding programs is complicated.
• Number one, there's only a handful of programs that PSEOC funds.
• And that is what bars them many times from going for the PSEOC funding. So the NMFA loan program.
• A different fund, different program, something like that.

Transcript Highlights:

• We're also ready to work on program integrity.
• I'd like to note that these funding requests were for IT originally for ongoing funding.
• Yes, it was one-time funding.
• What we don't understand is all these programs operate in different programs.
• And some of these programs are 75/25, 50/50.

Keywords: 1183, house

Transcript Highlights:

• Could digital equity programs and initiatives be better coordinated to enhance efficiency, optimize funding
• Funding from the federal Broadband Equity, Access, and Development program, with a primary focus on broadband
• grant program that the state Funding for the digital equity capacity grant program that the state had
• The program was managed as a competitive grant initiative, funding outside organizations providing digital
• program received $92 million, representing 83% of the total funds they dedicated for digital equity

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:

• Fund these great programs now.
• Fund these great programs now.
• Fund these great programs now.
• Fund these great programs now.
• Fund these great programs now.

Bills: HF1082, HF1042, HF1295, HF1686, HF1998, HF1775, HF1163

Keywords: public safety, law enforcement, mental health, domestic violence, appropriations, criminal justice, Minnesota corrections, victim services, task force, personal safety, Independent Use of Force Investigations Unit, criminal sexual conduct, sexual assault, peace officers, law enforcement oversight, Minnesota National Guard, U.S. armed forces, military installation, armory, air base

Transcript Highlights:

• outside of the KPDI program to offer additional funding upfront for communities looking to come in for
• Or if we could provide under the grant program funding for the infrastructure, then you can work with
• :03.680> for<00:42:03.920> the grant program funding for the grant program funding for
• Um, but that's kind of where I know Ohio gets a lot of their funding to do these programs.
• got a dedicated fund that helps them fund some of these programs.

Keywords: 958, all

Summary: The committee received an update from Secretary Jeff Noel of the Kentucky Cabinet for Economic Development, joined by Matt Wingate and Terry Bradshaw of the Kentucky Association of Economic Developers, on the Kentucky Product Development Initiative (KPDI) and the closing fund. The presentation focused on how KPDI helps communities develop shovel-ready industrial sites by funding infrastructure, engineering, geotechnical work, and other site-preparation costs. Noel emphasized that the program is designed to reduce uncertainty for companies, improve speed to market, and support statewide job creation and investment, especially in rural and eastern Kentucky where development costs are often higher. Testimony highlighted the complexity and expense of preparing sites, with examples of road, water, power, and rock-removal costs, and the importance of third-party evaluation in scoring applications. Noel said the program has 116 total projects statewide, with 20 active projects stemming from pilot efforts and 35 projects already resulting in about 6,381 jobs and $4.4 billion in investment. He cited examples including Crown Holdings, Flash Metals, Phoenix Paper, Pratt Paper, AESC, Sound Elements, Kitchen Foods, Latte, Krueger, Biomass, and Anna Munsman. Bradshaw added that even communities that have not yet landed a project have benefited by building spec buildings or improving access to industrial property. The speakers said the last KPDI round drew $81 million in requests but only $35 million in available funding, and they urged lawmakers to consider whether additional funding or program adjustments are needed. Suggested changes included modestly increasing eligibility or funding flexibility for rural and eastern Kentucky, while maintaining third-party performance metrics, and continuing to prioritize finishing existing parks and creating strong regional sites. No votes or formal committee actions were taken during the meeting.

Transcript Highlights:

• The Capital Fund and the Texas State History Museum Fund.
• For FY 26-27, the L.A.R. submitted includes all program area operating expenses. collection of funding
• Grant Program to award grant funding to community non-profit organizations, local government departments
• And how vital that funding is to the programs across Texas that provide these services to survivors.
• But this funding will allow programs like the Purple Door and others across the state to be able to provide

Keywords: 1184, house, all

Transcript Highlights:

• EFAs, phase out, um, multiple other programs that are funded by the Education Trust Fund and the building
• Never mind. programs that are funded by the programs that are funded by the education<00:53:25.000>
• We have federal funding specifically to support the programs, and then we have state funding too, called
• The federal funding is specifically to support the programs, and then we have state funding too, called
• The funding formula is very similar to the way the funding formula works for the other two programs discussed

Keywords: 928, house, all

Summary: The Department of Education’s Bureau of School Finance provided an adequacy-funding training for Division II, led by Mark Mello. He walked the committee through the adequacy formula using Albany, Allenstown, and Alton as examples, explaining average daily membership, base adequacy aid, and differential aid for free/reduced-price meals, special education, and English language learners. He also noted a recent change requiring home-education differential aid and emphasized that these aid streams are generally unrestricted district funding rather than money tied to specific students or programs. A major focus was the ongoing litigation over the adequacy base amount and the statewide education property tax, or SWEPT. Mello explained the historical basis of the current base amount, the 2008 legislative report that set the original methodology, and the later court ruling that the adequacy amount should be $7,356, which is now before the Supreme Court. He also described how SWEPT currently raises a fixed statewide amount of $363 million and how that revenue is used to offset the state’s adequacy obligation. For the example towns, Albany and Allenstown receive state adequacy grants because their SWEPT revenue is below their calculated adequacy cost, while Alton is an excess SWEPT community because its local SWEPT revenue exceeds the cost of adequate education. The discussion then turned to the pending “excess SWEPT” issue in the Supreme Court and what would happen if excess collections had to be remitted to the state. Mello said the Department is preparing a hypothetical walkthrough and explained that, if the court upholds the Superior Court ruling, DRA would likely be directed to collect excess SWEPT. Members raised concerns about whether SWEPT must be used for educational purposes and about the cash-flow burden on towns if money had to move from municipalities to the state and then back to districts. Mello and members discussed possible administrative workarounds, such as credits against other state aid distributions, and noted that the committee would continue reviewing the mechanics if the court decision comes down during budget work.

Transcript Highlights:

• , appropriates funds for the continued implementation of the food hub pilot program.
• <00:14:28.320> um program and an appropriation of funds um program and an appropriation of
• <00:25:27.559> this<00:25:27.840> program appropriate amount to fund this program appropriate
• It inappropriately allocates public funds to programs that sterilize cats and then abandon them to the
• We do not take a position on the program that is sought to be funded.

Keywords: 910, house, all

Transcript Highlights:

• All right, commissions paid in fiscal year 2022 and prior funded social welfare programs, which included
• All right, House File 2812 will bring back $1.3 million in commissions to fund social welfare programs
• To date, 41 states dedicate funding to these programs.
• These programs play a crucial role in combating gun violence and need to be properly funded and sustained
• used these funds as a means of self-gain rather than allowing programs like this to actually see the

Transcript Highlights:

• They requested of us our thoughts on how to make the program better after the first year of funding.
• So, the Kentucky Waters program has the ability to provide funding as principal and interest repayment
• Each funding program also has specific scoring and ranking criteria.
• Our state, our federally assisted drinking water and clean water state revolving fund programs, those
• Our state, our federally assisted drinking water and clean water state revolving fund programs, those

Keywords: 958, all

Summary: The committee received a budget and program update from Kentucky Emergency Management on the state’s urban search and rescue buildout. Eric Gibson and Doug Hargrave said the legislature’s funding was used to create FEMA-type urban search and rescue capacity, including Kentucky Task Force 1 and 2, the incident support team, and the helicopter aquatic rescue/hoist team. They emphasized that the effort is not just equipment purchases but also training, credentialing, warehouse and training-facility development, canine program expansion, and coordination with local search and rescue agencies across the Commonwealth. Gibson reported that the agency executed 99.4% of the $16.175 million appropriation by the end of the fiscal year and said the team met its readiness target ahead of schedule, with equipment already being deployed in recent flood response operations. He also said $500,000 per year was set aside for local search and rescue grants, with about $482,000 awarded to 29 teams in one year and $490,000 to 36 teams in the next, averaging about $20,000 per grant. Several members urged the committee to consider increasing support for local responders in future budgets, noting rising equipment costs and the importance of local teams as first on scene. Members asked about staffing, coverage, and benefits. Gibson explained that the task force is a mixed workforce of full-time fire personnel loaned from local departments, professional service staff such as doctors and engineers, and temporary deployment staff, with workers’ compensation coverage provided through KYEM and/or home agencies depending on the arrangement. He also said local search and rescue members are not currently included in line-of-duty death benefits. In response to questions about coverage and deployment, he described the two task force locations as designed to keep resources within roughly 100 miles of every Kentuckian. The discussion also turned to recent flood response and disaster recovery. Gibson said the state had mobilized up to 24 teams over the weekend, documented roughly 60 to 80 water rescues or assisted evacuations, and was seeing significant damage in counties such as Cumberland, Clinton, and Metcalfe, including agricultural losses. He said several counties were meeting FEMA public assistance thresholds and that the state was preparing a broader relief request that could include FEMA, SBA, and USDA assistance. He also updated members on efforts to claw back and reallocate unused “strained fiscal liquidity” funds by the statutory deadline, saying notices were sent and funds were redirected where possible to unmet local needs.

Transcript Highlights:

• From this pool of money, the state would fund the grants to businesses pursuant to the new grant program
• The strike-and-insert amendment changes how that fund is funded.
• program.
• Funds available for the program would be subject to appropriation by the Legislature.
• Funds available for the program would be subject to appropriation by the legislature.

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum present, approved the prior meeting minutes, and then took up several House bills with strike-and-insert amendments. House Bill 5510 was amended to incorporate provisions from Senate Bills 1065 and 928, modernizing Alcohol Beverage Control licensing and adding rules for low-proof spirit alcohol products, including a $1.25 per gallon tax; the committee adopted the amendment and reported the bill to the full Senate with a do-pass recommendation. The committee then considered House Bill 5453 on school funding. After discussion of a proposed block-grant system and supplemental aid for special education, the committee adopted an amendment replacing much of the bill with weighted funding for level two and level three special education students, exempting those funds from block grant rules and limiting their use to direct instruction. The committee also adopted a clarification to extend the special education funding to charter school students and reported the amended bill to the Senate. House Bill 5412, dealing with multi-year technology licensing contracts for local fiscal bodies and science-of-reading training for K-5 teachers, was amended to clarify contract language, delay implementation dates, change “endorsement” to “training,” and require charter school teachers to participate; it was then reported. The committee next amended and reported House Bill 4006, which creates aerospace development and workforce grant programs, changing the funding mechanism to use Department of Commerce reporting and personal income tax proceeds rather than direct employee withholdings. It also took up House Bill 4009, combining voluntary portable benefits for independent contractors with microcredentialing and an expanded apprenticeship tax credit, adopted the Finance Committee amendment, and reported it. Finally, House Bill 4004 creating the Recharge West Virginia training reimbursement program was amended to raise the annual employer reimbursement cap from $50,000 to $100,000 while keeping the $10,000 per-employee limit, and the committee reported the bill. The meeting ended with adjournment.

Transcript Highlights:

• All states except for Alaska use provider taxes to fund the non-federal share of their Medicaid programs
• program, the detrimental nature.
• program, the detrimental nature.
• And with the one-year ban on federal funding for programs like Planned Parenthood, what is the first
• A state program to fund these kinds of reproductive health, gender-affirming care, health insurance for

Summary: The joint informational hearing focused on the impacts of H.R. 1 on California’s Medi-Cal program and on community health effects from recent immigration enforcement actions. Committee leaders said H.R. 1 would sharply reduce federal funding, increase administrative burdens, and worsen access to care, especially for Medi-Cal enrollees, immigrant families, rural communities, and reproductive health patients. The second half of the hearing examined how ICE raids and related federal actions are creating fear, reducing clinic and emergency department use, and disrupting children’s access to schools and early childhood education. Department of Health Care Services Director Michelle Bass outlined the main H.R. 1 provisions affecting Medi-Cal: work requirements, semiannual eligibility redeterminations, shorter retroactive coverage, new cost-sharing, limits on provider taxes and state-directed payments, reduced federal support for emergency and lawful immigrant coverage, and a one-year ban on Medicaid funding for prohibited abortion providers. She estimated millions could lose coverage, with tens of billions of dollars in federal funding at risk. Planned Parenthood Affiliates of California warned the defunding provision could force clinic closures, service reductions, and loss of access to family planning, STI testing, and cancer screenings. The California Hospital Association said the financing changes could cut hospital revenue by tens of billions over 10 years and threaten access, especially for rural and safety-net hospitals. The Western Center on Law and Poverty argued the law would increase churn, paperwork, and uninsured rates, disproportionately harming working adults and people experiencing homelessness. Committee members asked about implementation timelines, notification systems, administrative costs, the effect on immigrant eligibility, and whether California could delay or mitigate some provisions. Bass said the state was still assessing federal guidance, planning county and provider outreach, and exploring a possible delay for work requirements and a transition period for provider-tax changes. Members also discussed how state budget actions may need to be revisited in light of H.R. 1, and how California might preserve access through state-only funding or other policy changes. In the second panel, CHIRLA, Los Angeles County Department of Health Services, and the Children’s Partnership described the health consequences of immigration enforcement. Speakers said raids and data-sharing fears are causing anxiety, trauma, and avoidance of care, with Los Angeles County reporting declines in emergency, urgent care, and clinic visits after enforcement actions. The Children’s Partnership said school and early childhood absences are rising in some communities and that enforcement is undermining children’s emotional well-being and access to education. Members asked for more data and discussed possible state protections, telehealth, mobile care, and legal and policy responses to reduce fear and preserve access to health and education services.

Transcript Highlights:

• But because those funding mechanisms are in two different program IDs and have individual line items,
• But because those funding mechanisms are in two different program IDs and have individual line items,
• through EDN 100 it's system is funded through EDN 100 it's one<00:18:08.000> program<00:18:08.400
• program?
• Assistance Program- Education Program. Assistance Program- Education Program.

Keywords: 910, house, all

Summary: The House Committee on Higher Education met on February 18, 2026, and heard four bills. HB 2519 would shift University of Hawaii funding toward block appropriations, a stabilization fund, limited procurement and fiscal exemptions, performance-based metrics, and annual reporting. UH supported the bill, saying line-item budgeting hampers systemwide efficiency across its 10 campuses; the State Procurement Office commented on the procurement exemption. The chair proposed amendments to address concerns from Budget and Finance and procurement, including capping UH’s retained funds at 10%, requiring lapse after three fiscal years, removing CIP-to-operating transfers, narrowing procurement exemptions while keeping Chapter 103B principles, shifting performance metric-setting to the Board of Regents, and requiring annual reporting. The committee then voted to pass HB 2519 with amendments. HB 2409 would establish the Hawaii Geological Survey in Hilo and designate its director as the state geologist. UH Hilo supported the concept but said it would need sufficient general-fund support, estimating roughly $200,000 to start. DLNR and the Attorney General offered comments, with the AG calling it a matter of statewide concern. The chair said the DNR testimony raised public safety concerns and that UH Hilo had not identified a firm funding amount, so the committee voted to defer the bill. HB 2141 HD1 concerned state enterprise zones and would expand eligible business activities and allow DBED to designate up to two areas as enterprise zones with gubernatorial approval. DBED, the Tax Foundation, and other organizations submitted support or comments. After discussion, the chair said the current version no longer fit the higher education committee’s focus and recommended reverting to the original bill, which would limit the zone to Kakaʻako Makai for a biomedical health innovation hub near JABSOM and the Queen’s Cancer Center, with a defective date. The committee voted to pass HB 2141 HD1 with amendments. HB 2233 HD1 would appropriate funds to continue the SNAP-Ed program through UH and the Department of Health. DOH supported the bill and said it had been working on nutrition education and environmental changes; it estimated about $600,000 each for DOH and SEAR, or $1.2 million total. Testimony in support also came from several organizations and individuals, including a senior advocate who described the program’s practical benefits. The chair said the committee would reflect the $600,000-per-entity estimate in its report, and the committee voted to pass HB 2233 HD1 as is before adjourning.

Transcript Highlights:

• special fund, to audit the fund and the program every two years, every even year.
• out of the special fund. out of the special fund.
• to use the money in allows the program to use the money in the<00:21:02.159> fund<00:21:02.799
• <00:22:20.880> and<00:22:21.120> the<00:22:21.360> fund they submit to the program
• and the fund they submit to the program and the fund the<00:22:22.240> appropriate<00:22:22.640

Keywords: 912, senate, all

Summary: The informational briefing focused on the Office of the Auditor’s recent audit of Hawaii’s deposit beverage container program and the Department of Health’s response. State Auditor Les Condo reviewed the program’s structure, noting it was created to increase recycling and reduce litter, but said prior audits have repeatedly found weak internal controls, reliance on self-reported data, and an “honor system” approach. He cited examples of underreporting and overpayment risks, including a Whole Foods settlement and secret-shopper testing at a redemption center where the program reimbursed more than what was actually paid to consumers. Condo said the special fund continues to grow, increasing by more than $12 million between FY24 and FY25, and that the 2024 audit found no meaningful progress in implementing earlier recommendations. He also noted that many prior recommendations were later codified in law, including risk-based audits and internal control requirements, and said the office will audit the program again in about a year. Senator Fevella said the briefing was needed because he has seen little progress over the years and emphasized the program’s goals of reducing litter and promoting recycling. He noted that Hawaii has lost a glass recycler, underscoring broader challenges in the system. Department of Health Deputy Director Kathleen Hoe said the department is committed to addressing longstanding problems and said the director’s office meets with the program twice a month. Program staff outlined steps being taken to respond to the audit, including revising accounting and inspection/enforcement manuals, retaining third-party services, and implementing risk-based audits of distributors and redemption centers. They said internal control process documents from distributors were due June 30, with about 200 received and roughly 100 still outstanding, and that enforcement letters are being sent. The department also described plans for electronic reporting to reduce manual entry and improve accuracy, as well as a broader legislative proposal for a tiered audit system. Under that proposal, larger distributors would remain subject to the current every-other-year audit requirement, middle-tier distributors would be audited every five years, and smaller distributors would be exempt. Officials said the governor had temporarily waived enforcement of the 2025 independent audit requirement because of cost concerns for smaller distributors, while the department reviews submitted audits and considers a longer-term fix. No votes or formal committee actions were taken during the informational briefing.

Transcript Highlights:

• Medicaid, leaving state officials to shoulder more of the costs of these programs from the general fund
• You know, they put some of these fundings off a year or two, but it's the staffing and the program.
• California is releasing tens of millions of dollars to fund their CalWORKs program.
• And Madam Chair, it says, what will happen to mandatory programs that are funded in the Appropriations
• Advocate for you to fund state programs because they help us, so very grateful for that.

Transcript Highlights:

• funding. ...than to note that most of the general fund has just been one-time funding, largely the transfers
• The agency is just other funds, which is federal funds and special funds.
• is a one-time transfer from the general fund for homeless programs, and then our continuing appropriation
• And again, our homeownership program does not take any general fund dollars.
• And that is through our housing incentive fund and all of our federal programs.

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.