Transcript Highlights:

• OHA is still willing to serve as a procuring agency.
• We also made a suggested amendment that we would be on the procurement selection committee, and DLNR
• </c> still willing to serve as a procuring still willing to serve as a procuring agency agency agency
• </c> that we would be on the procurement that we would be on the procurement selection<04:00:18.960><
• </c> out there for wherever this procurement out there for wherever this procurement would<04:00:40.120

Committee: House Finance

Transcript Highlights:

• It removes the section regarding procurement of information technology.
• It removes the section regarding procurement of information technology.
• It removes the section regarding procurement of information technology.

Summary: The House convened with prayer, the Pledge of Allegiance, quorum calls, and several recognitions before taking up a series of Senate messages and House motions. Members also recognized House Sergeant at Arms staff, visitors in the gallery, and family members. The chamber approved the journal and then moved into message lists and concurrence motions on several bills. On CS/CS/SB 1668, relating to the Florida Birth-Related Neurological Injury Compensation Association (NICA), the House concurred in a Senate amendment that clarified that if the NICA plan lacks adequate cash flow, the Office of Insurance Regulation may authorize a cumulative transfer of up to $20 million over the life of the plan and removed a proposed time limit on provider assessments. The bill then passed 96-2. The House also concurred in a Senate amendment to CS/CS/CS/HB 905, the foreign influence bill, after debate over a proposed strike-all amendment that would have removed surrogacy-related language; that amendment failed. Supporters said the bill still retained key foreign-influence restrictions, while opponents objected to the surrogacy provisions and other remaining restrictions. The bill passed 83-17. The House then took up CS/CS/HB 1279 on education. The Senate amendment added provisions on tuition residency for certain military and State Department families, a one-year deferral option for Benacquisto Scholarship recipients, virtual school notifications, educational emergency authority for persistently low-performing schools, epinephrine flexibility, VPK and New Worlds Reading changes, math pathways, dance credit, IEP service notifications, charter school safety officer options, and FEFP adjustments for Florida advanced courses, while removing several House provisions including the 95% Florida resident requirement for preeminent universities, the 5% cap on undergraduate international enrollment, and DEI-related provisions. Debate focused heavily on the educational emergency and collective bargaining language for persistently low-performing schools, with supporters saying it would help districts improve student performance and opponents warning it would weaken unions and affect schools that are not truly failing. The bill passed 81-16. Finally, the House considered CS/CS/CS/HB 399 on land use and development regulations. An amendment to repeal portions of last year’s SB 180 was ruled not germane. The House then took up a Senate amendment on compost facilities that would bar local governments from conditioning compost-facility approval on the purchase of additional property to expand a privately owned road and would limit local revocation of permits when facilities comply with state or regional environmental regulation; debate began on that motion as the transcript ended.

Transcript Highlights:

• influence another person to undergo a self-induced abortion or attempted self-induced abortion, or to procure
• To abortion or to procure an unlawful abortion or attempted unlawful abortion.
• to abortion or to procure an unlawful abortion or attempted unlawful abortion.

Transcript Highlights:

• So, you know, I think as they utilize the procurement process, clearly there should be some due diligence
• It deletes a provision regarding the state university system procurement, which covers only state agency
• and local government procurement issues.

Committee: Senate Governmental Oversight and Accountability

Summary: The committee first confirmed Heather L. Turnbull to the Florida Commission on Community Service, with the motion adopted and the confirmation recommended favorably. Members then took up SPB 7022, which sets Florida Retirement System employer contribution rates beginning July 1, 2025, updates rates to address unfunded actuarial liability, and allows certain elected officers to elect a DROP accumulation; a technical title amendment was adopted, the bill was submitted as a committee bill, and it was reported favorably as a committee bill. The committee then heard extensive debate and public testimony on SB 1710, which would restrict diversity, equity, and inclusion-related policies, trainings, and activities in state agencies, state-funded contractors and grantees, and medical institutions of higher education. Sponsor Senator DiCeglie said the bill is intended to prevent state agencies and contractors from using state funds for DEI programs and to limit state agencies from adopting DEI-related official positions; he also said the medical-school portion would likely be amended out later. Senator Polsky and others questioned the bill’s breadth and how it would affect health-related grants, public universities, historically Black institutions, recruitment, and contractor training. Public testimony was overwhelmingly opposed, with speakers arguing the bill would harm health care, education, access, and inclusion; a few supporters said DEI is ideological, can undermine merit, and should not be used by state agencies or publicly funded institutions. After debate, Senator Polsky argued the bill was confusing, overbroad, and harmful to serving diverse communities, while Senator Arrington said it was an overreach into private business and could have significant fiscal impacts. Chair Fine closed by saying DEI is political ideology and that the bill is meant to ensure government focuses on talent rather than identity. SB 1710 was then reported favorably on a roll call vote, with Senator Arrington voting no and the remaining members voting yes. The committee then began SB 1678, relating to entities that boycott Israel, and heard the sponsor’s explanation of a delete-all amendment that would expand and clarify state restrictions on dealings with entities engaged in boycotts of Israel, including certain nonprofits, foreign educational institutions, and grants; the amendment was adopted, and the sponsor and a witness began answering questions when the transcript cuts off.

Transcript Highlights:

• allowed businesses to disclose data to law enforcement if it had information related to accessing, procuring
• allowed businesses to disclose data to law enforcement if it had information related to accessing, procuring
• Leah Griffin with the American Federation of State, County and Municipal Employees in support.
• I have personally procured Dragon, an accessibility software that uses AI to capture a worker's voice

Committee: House Privacy and Consumer Protection

Transcript Highlights:

• It's Senate Bill 497, and it is entitled: Removing a Reference to Procurement Through the Department
• It's Senate Bill 497, and it is entitled: Removing a Reference to Procurement Through the Department
• It's Senate Bill 497, and it is entitled: Removing a Reference to Procurement Through the Department
• Cloutier said, for the record, that this is just a bill aimed at state-funded building projects, not municipal

Committee: House Public Works and Highways

Transcript Highlights:

• The turnover, being over $4 million back to our municipal budgets, can be used for a reinvigoration of
• And today, the Bay State has laws restricting state investment and procurement from Sudan, China, and

Committee: Joint Joint Committee on Public Service

Summary: The Joint Committee on Public Service held a hearing focused first on teacher retirement legislation, especially H. 2932 and S. 1884, which would give long-serving educators a one-time opportunity to enroll in Retirement Plus after the program’s 2001 rollout was described as confusing and inconsistently communicated. Legislators, union leaders, and many teachers testified that some educators missed the opt-in window because of faulty notices, leave status, transfers, or misinformation about payroll deductions, and that many have had to work several extra years as a result. Supporters said the bills would correct an unfair administrative error, provide a buyback option with interest, and could also save local school districts money by allowing earlier retirements. Representative Mark Sylvia also testified for H. 4234, a Fairhaven-specific bill to raise the age limit for special police officers from 65 to 70 and clarify appointing authority, citing experience and budget needs. The committee then heard testimony on several pension investment and divestment bills. Supporters of H. 2811 and related climate-risk measures argued that PRIM should assess, disclose, and address climate-related financial risk in the state pension fund, warning that fossil fuel investments could threaten long-term returns and public finances. Environmental advocates and financial experts said climate risk is systemic and urged transparency, divestment planning, and alignment with the Commonwealth’s climate goals. Another set of speakers supported H. 2984, which would divest pension investments from companies selling weapons to Israel; they argued the state should not be complicit in violence in Gaza and cited humanitarian and human rights concerns. Additional testimony supported H. 2900 and S. 1869 to divest from the firearm industry, with speakers saying pension investments should not undermine Massachusetts gun laws. No votes were taken during the hearing. The chairs repeatedly thanked speakers, limited testimony time, and noted that written testimony could be submitted later. The hearing concluded with the committee moving through the sign-up list and hearing extensive public testimony on the teacher retirement and divestment proposals.

Transcript Highlights:

• development boundary established by vote, or was it by a local body like their commission, whether municipal
• Oftentimes, there are young people that want to stay out of trouble, and so they have procured a lawnmower

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:

• Under existing law, California's local municipalities have seven months from the end of their fiscal
• Local officials are entrusted with taxpayer money and authority over budgeting, procurement, management

Summary: The Assembly convened, established a quorum, offered prayer and the Pledge of Allegiance, and then moved through a long floor file with many Senate bills. Early procedural actions included unanimous-consent motions, a successful roll-call to rescind prior action on SB 351, and a 54-vote suspension of Joint Rule 61(a)(3) to allow floor amendments on SBs 80, 351, and 415. The chamber also made several referrals, moved one item to the inactive file, and welcomed new Assembly Member Natasha Johnson and other guests. The bulk of the meeting consisted of concurrence and third-reading votes on a wide range of measures, many of them passing with little or no opposition. Topics included tribal gaming grants (AB 221), State Bar fee and bar exam changes (SB 253), AI guardrails in community colleges (SB 241), consumer arbitration clauses (SB 82), due process for law enforcement in Racial Justice Act cases (SB 734), dental payment fee disclosures (SB 386), HOA balcony inspection reports (SB 410), farmland protection and EIFD rules (SB 5 and SB 516), emergency shelter zoning (SB 340), HIV confidentiality (SB 504), election signature-cure reforms (SB 3), contractor workers’ compensation compliance (SB 291), fire training funding (SB 345), wage theft enforcement (SB 355 and SB 261), food allergen disclosures (SB 68), ride-share insurance coverage (SB 371), housing and disaster recovery measures (SB 233, SB 625, SB 21), midwifery education (SB 520), mobile home insurance access (SB 525), epinephrine in schools (SB 568), health facility emergency licensing (SB 582), hair relaxer enforcement (SB 236), wastewater surveillance (SB 317), and several tax, transportation, and public health bills. A number of bills drew brief policy debate or opposition. SB 388, creating a California Latino Commission, prompted criticism from some members who argued the money should go directly to community needs rather than a new commission; it still passed. SB 50 on digital safety for victims of abuse, SB 20 on silicosis prevention, SB 306 on prior authorization reform, SB 373 on oversight of out-of-state special education placements, and SB 437 on reparations descendant-status verification were among the more substantive and discussed measures. Most bills passed by wide margins, often unanimously, and several urgency or tax-levy measures required 54 votes and were approved. The session ended with continued passage of remaining file items and multiple items retained or passed temporarily for later action.

Transcript Highlights:

• optimization, workers' compensation and regional return-to-work staffing model, and third-party procurement
• The third area of focus was third-party procurement.
• For example, with the third-party procurement, they were able to pull every spend category, look at contracts
• For example, with the third-party procurement, they were able to pull every spend category, look at contracts

Summary: Assembly Budget Subcommittee No. 6 heard the Governor’s May Revision proposals for the judicial branch, the Board of State and Community Corrections, the Department of Justice, and the California Department of Corrections and Rehabilitation. The Legislative Analyst’s Office opened with a warning that the state budget remains structurally imbalanced and urged the Legislature to avoid new ongoing spending unless offset by reductions elsewhere. In the judicial branch discussion, the Judicial Council highlighted language access funding, appellate court security, a backfill for the state court facilities construction fund, and an extension of the lactation room mandate; Finance supported most items but suggested reporting language on interpreter costs and reducing the General Fund backfill. Members raised concerns about judicial vacancies, long-term salary freezes, remote hearings, and the lack of progress on court staffing in some counties. For the Board of State and Community Corrections, the administration proposed $10 million one-time each for the Missing and Murdered Indigenous People grant program and a human trafficking vertical prosecution grant program. The LAO said both should be weighed against other priorities and suggested the Legislature consider whether the Tribal Nations Grant Fund could support MMIP work, while Finance said it preferred General Fund support and wanted more review before any fund swap. Members strongly supported MMIP funding and asked whether ongoing support would be considered. On the human trafficking grant, Finance said BSC was a good fit because of its grant administration experience and prior vertical prosecution work, while legislators asked why the program was not placed with the Office of Emergency Services as originally contemplated in prior legislation. The Department of Justice presented antitrust litigation funding, Medi-Cal Fraud and Elder Abuse staffing, completion of organized retail criminal enterprise cases, and trailer bill language for a continuous appropriation from the Victims of Consumer Fraud Restitution Fund. The LAO supported the antitrust account use but questioned the Unfair Competition Law Fund’s ability to cover the full request without General Fund repayment, and recommended against a continuous appropriation for the restitution fund in favor of a more limited mechanism with legislative oversight. Finance said the fund would remain solvent and defended the continuous appropriation as necessary to pay victims promptly. In the CDCR portion, the largest discussion centered on the Boston Consulting Group efficiency review and sharply reduced savings estimates; LAO said the department had not fully explained the proposed position eliminations or future $100 million savings target, while Finance said the work reflected deeper analysis and ongoing efforts to find savings. Members repeatedly pressed CDCR and Finance on the gap between earlier promised savings and the revised figures. CDCR also outlined population projections showing continued declines in prison and parole populations, while LAO again urged the state to close an additional prison to save ongoing costs. The department then walked through several May Revision items, including workers’ compensation funding, a Corcoran honor housing dorm, incarcerated firefighter pay implementation, an incarcerated menopause program, mental health receiver staffing, mental health resource teams and crisis intervention teams, medical classification staffing changes, and AI note-taking for the electronic health record. LAO generally recommended limiting-term funding and more reporting for many of these proposals, while Finance defended them as necessary ongoing investments or court-ordered obligations. Members questioned the cost of workers’ compensation, the need for more prison closures, the lack of funding for women’s facility violence prevention, and the timing and transparency of the BCG savings process. No votes were taken.

Transcript Highlights:

• We're still in the midst of the state procurement process to select an external campaign partner...
• We're still in the midst of the state procurement process to select an external campaign partner, and
• Could be procurement or exporting. Yeah. So lots of stuff.
• Maybe they got a procurement opportunity with a foreign government.

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:

• We're still in the midst of the state procurement process to select an external campaign partner.
• We're still in the midst of the state procurement process to select an external campaign partner, and
• Could be procurement or exporting. Yeah. So lots of stuff.
• Maybe they got a procurement opportunity with a foreign government.

Summary: The subcommittee heard an overview from Go-Biz Director D.D. Myers on the administration’s economic development strategy, centered on the California Jobs First framework. Myers described regional planning across 13 regions, the Jobs First Council, and pilot sectors including ag-tech, space and defense, life sciences, and semiconductors. She also outlined budget requests for CalCompetes, CalExport, the California Film Commission, innovation/emerging technologies, and the California Civic Media Fund, along with the new California brand campaign. Committee members raised questions about misinformation about California, regulatory burdens, tourism versus broader economic messaging, and how the brand campaign would highlight underrepresented communities. No vote was taken; the item was informational. The committee then reviewed CalOSBA’s work on small business support, including California RISE, the Performing Arts Equitable Payroll Fund, and TAP/SIP technical assistance and capital infusion programs. CalOSBA reported that California RISE’s first cohort awarded $16.9 million to 61 employment social enterprises, with growth in revenue, contracts, and jobs; the performing arts payroll fund paid all 100 recipients but was heavily oversubscribed; and TAP supported more than 112,000 businesses in the past year, helping leverage federal and local funds. Testimony from program partners emphasized the importance of small business counseling, community-based outreach, and support for arts organizations facing post-pandemic and AB 5-related cost pressures. Senators pressed for more data on long-term job retention, better outreach to smaller and ethnic media, and possible program changes to speed grants and stretch funding further. Finally, the committee heard Go-Biz’s request for additional staff and funding for the California Film and Television Tax Credit Program. Staff said the request would support application review, DEIA implementation, and data tracking. The Film Commission reported that about 147 productions had been approved and roughly 90% were opting into the new diversity provisions, with career pathways reporting to include demographic and participation data and a future report expected in 2027. Senators asked about accountability, apprenticeship and internship hours, and whether the program was producing real career pathways and inclusive hiring outcomes. The item remained informational, with no vote or action taken during the hearing.

Transcript Highlights:

• Angeles, Sacramento, Oakland, California, a number of other California cities, and we're also in procurement
• we're<00:13:50.240><c> also</c><00:13:50.800><c> uh</c><00:13:50.880><c> in</c><00:13:51.120><c> procurement
• </c> we're also uh in procurement in Boston. we're also uh in procurement in Boston.

Bills: HF3919 , HF3791 , HF1781 , HF3908 , HF4233 , HF3966 , HF3430

Committee: House Transportation Finance and Policy

Transcript Highlights:

• I just want to be sure that that wouldn't create any procurement or scheduling issues.
• wouldn't create any uh, Yeah, yeah, that wouldn't create any uh, Yeah, yeah, yeah.<00:19:01.800><c> procurement
• 02.240><c> or</c><00:19:02.320><c> issues</c><00:19:02.640><c> in</c><00:19:02.720><c> the</c> yeah. procurement
• or issues in the yeah. procurement or issues in the scheduling,<00:19:03.400><c> yeah.

Summary: The committee first heard several measures and took testimony without questions on SB 2431 relating to health savings accounts and SB 2797 relating to consumer protection. For SB 2797, the DCCA Office of Consumer Protection offered comments, Retail Merchants of Hawaii opposed the bill over gift card fraud compliance costs and legal risk, and AARP Hawaii supported it. The committee also heard SB 2946 on foreclosures, where the Hawaii State Bar Association’s Collection Law Section and several lenders, associations, and individuals opposed the measure, while the Hawaii Bankers Association and others offered comments. SB 2961 on insurance drew comments from the Insurance Division and Hawaii Insurance Council, with NAMIC opposing and some individuals supporting. SB 2948 on insurance fraud received comments from the Insurance Division and support from the American Property Casualty Insurance Association, with NAMIC and the Alliance for Responsible Consumer Legal Funding also commenting. No votes were taken during the hearing portion, and the committee recessed after testimony. The committee then reconvened for decision-making on the 9:30 agenda. SB 2431 was passed with amendments, including DOTAX-requested changes, a five-year limit on credit carryforwards, removal of an aggregate cap, a rural definition, transparent reporting, technical amendments, and a deferred effective date of July 1, 2050. SB 2797 was also passed with DCCA-requested amendments, technical changes, and the same deferred effective date. SB 2946 was deferred because there was no testimony in support. SB 2961 was passed with amendments, but after Senator McKelvey raised concern that policy-limit language could undermine the bill, the committee removed two policy-limit amendments before adopting the recommendation. SB 2948 was passed with amendments deleting certain definitions, aligning penalties and public-records provisions, adding coordination and disclosure clarifications, and making technical changes; one no vote by Senator Awana was recorded, with the rest in favor. The committee also considered SB 3000 from a prior hearing and recommended passage with amendments clarifying the Attorney General’s authority, creating a special fund, and addressing concurrent actions, again with a deferred effective date and one no vote by Senator Awana. In a joint CPN/GVO agenda, SB 2258 relating to school agriculture procurement targets was passed with amendments after the Department of Education said it would need to follow up on whether changing the target period from calendar year to school year would create procurement or scheduling issues; the committee added technical changes, a deferred effective date, and routed the bill to Ways and Means, with a note that Education should also have received it. In a later joint CPN/AEN hearing, SB 2452 relating to climate-friendly insurers drew strong opposition from the Insurance Division and several insurance groups, who warned it could push insurers out of the authorized market and into the surplus lines market, raising costs; Senator Dela questioned whether the bill would worsen an already strained market, while the division said the legislature could make the policy choice but warned of market disruption. The hearing then moved to SB 2760 on invasive species, where DLNR, DAB, CGAPS, and the Oahu Invasive Species Committee generally supported broader inspection and quarantine authority, civil penalties, and longer interim-rule authority, while committee members asked about staffing, treatment capacity, and implementation for non-agricultural commodities such as building materials and vehicles.

Transcript Highlights:

• And when we originally procured these services, the requirement was for those reviews to be conducted
• :19:55.880><c> when</c><00:19:56.040><c> we</c><00:19:56.200><c> originally</c><00:19:56.880><c> procured
• And when we originally procured Program.
• And when we originally procured these<00:19:57.560><c> services,</c><00:19:58.200><c> the</c><00:19:58.320

Summary: The committee first approved the minutes from its January 13 meeting and then moved through a large agenda of contracts and agreements, with members repeatedly voting to review items without objection. The chair noted the agenda included 227 contracts totaling about $89.5 million, all with vendors registered with the Secretary of State. Most items were approved after brief discussion and roll-call votes. Several contracts drew questions. Kentucky State University explained two four-month contracts tied to its online academic program: one for continued implementation support and one for marketing. University officials said the program is in a transition year under a management improvement plan, that the university owns the intellectual property, and that the marketing effort is aimed at growing enrollment in targeted programs such as business and social work. They reported online enrollment had grown from 74 students to 612, with an overall university enrollment of 2,872, and said the goal is to reach about 1,000 online students by fall. The committee approved both items, though Senator Douglas said he would keep watching university spending. The Department of Education presented a contract cancellation for administrative reviews of the National School Lunch and School Breakfast Program. Officials said USDA changed the review requirement from every three years to every five years, making the outside contract unnecessary because internal staff can now handle the work. The committee approved the cancellation. The Transportation Cabinet also explained an increase to a professional services contract for engineering work on a section of KY 54 in Owensboro, describing it as preliminary design and commissioning work for a multi-section roadway project; the committee approved that item as well. The Kentucky Lottery Corporation sought approval for an amendment tied to its iLottery platform. Officials said the increase reflected higher sales volume, since the contract structure causes prize and platform-related expenses to rise as sales grow. The committee approved the amendment. The Department of Public Health also discussed a perinatal psychiatry consultation program funded by a five-year federal HRSA grant; members raised concerns about what would happen if federal support changes, but no action beyond discussion was noted in the excerpt.

Transcript Highlights:

• know, overcommitting dollars that are not helpful in the production of whatever it is that we're procuring
• know, overcommitting dollars that are not helpful in the production of whatever it is that we're procuring
• have a federal Brooks Act of 1972 that requires that all architectural and engineering services are procured
• have a federal Brooks Act of 1972 that requires that all architectural and engineering services are procured

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• Regular field assessments and activities were discussed and coordinated with agency engineering and procurement
• Regular field assessments and activities were discussed and coordinated with agency engineering and procurement
• coordinated with agency<00:24:40.280><c> engineering</c><00:24:41.280><c> and</c><00:24:41.400><c> procurement
• </c> agency engineering and procurement agency engineering and procurement specialists<00:24:43.040><

Summary: The committee received testimony from Personnel Cabinet Secretary Mary Elizabeth Bailey and Deputy Secretary Robert Long on the state’s telecommuting policy. Bailey explained that telecommuting in the executive branch is governed by a statewide policy requiring eligible employees to work in the office three days a week and telecommute up to two days a week. Eligibility depends first on the position, not the person: public-facing jobs, roles requiring special equipment or insecure document handling, and other duties that cannot be performed remotely are not eligible. Employees and managers must complete training, sign agreements, comply with safety and IT requirements, and telecommuting privileges can be revoked for poor performance or discipline. She said the cabinet audits compliance and that telecommuting has helped maintain services during inclement weather, disasters, and building renovations. Bailey also said about 33% of the workforce is hybrid, 11% telecommutes full-time, and 56% does not telecommute. Members asked about cost savings, eligibility, discipline, and technology requirements. Bailey said she did not have statewide cost-savings figures and referred that question to the Finance and Administration Cabinet. She said employees must have reliable connectivity and appropriate equipment, but there is no fixed broadband speed requirement; if an employee cannot connect, they must come into the office. She also said telecommuting postings indicate whether a position is eligible, and that performance issues are handled through progressive discipline rather than being ignored. Transportation Cabinet officials then described how their agency manages remote work. Deputy Secretary Mike Hancock, along with IT and human resources leaders, said the cabinet follows the executive branch policy and actively manages telecommuting employees through Microsoft Teams, VPN access, daily standups, project tracking, and manager oversight. They said more than 2,600 of the cabinet’s 4,000 employees cannot telecommute because their jobs are public-facing or field-based, while about 35% are eligible to telecommute up to two days per week. The cabinet also has 13 state employees and 94 contract employees working full-time remotely in IT. Officials said telecommuting has improved recruitment and retention, supported emergency response and weather operations, and allowed the cabinet to continue working during storms and other disruptions. Members asked about phone equipment, monitoring, and “mouse jiggler” devices; officials said phones are often forwarded to personal or state devices, Teams shows real-time availability, and managers rely on daily accountability and project management tools to monitor work.

Transcript Highlights:

• We did have a separate fee-for-service pharmacy benefit manager; again, that has to be procured too.
• We did have a separate fee-for-service pharmacy benefit manager; again, that has to be procured too.
• again that<00:36:58.920><c> has</c><00:36:59.040><c> to</c><00:36:59.160><c> be</c><00:36:59.359><c> procured
• too</c><00:37:00.079><c> so</c><00:37:00.240><c> there</c><00:37:00.359><c> are</c> that has to be procured
• too so there are that has to be procured too so there are two<00:37:01.319><c> separate</c><00:37:01.760

Summary: The subcommittee met to review the Department for Medicaid Services’ program integrity work. Commissioner Lisa Lee and Program Integrity Director Jennifer Dudinsky outlined Kentucky Medicaid’s structure, funding, enrollment, and spending, including FMAP rates, the size of the Medicaid and KCHIP populations, the number of providers, and 2024 expenditures. They also described the managed care and fee-for-service populations, noting that managed care serves most members while fee-for-service is concentrated in long-term care and waiver populations. Most of the discussion focused on fraud, waste, abuse prevention, and provider oversight. The department described its provider enrollment and certification checks, revalidation requirements, site reviews, fingerprinting for some high-risk providers, and termination grounds such as false application information, Medicare actions, unreported ownership changes, and abandonment of a provider number. Members asked about nonprofit ownership reporting, MCO fraud oversight, and how the department tracks unusual CPT code utilization, especially in behavioral health. The department said it uses data analytics, audits, policy review, and collaboration with behavioral health staff to monitor those trends. Dudinsky explained the division’s four branches: provider licensing and certification, audits and compliance, recovery, and third-party liability/estate recovery. She described prepayment and postpayment audits, referrals of credible fraud allegations to the Attorney General, monthly meetings with the AG’s office, and coordination with the Office of Inspector General, CMS, HHS OIG, MCOs, and other partners. She also explained payment suspensions, stand-downs during law enforcement investigations, and recovery efforts for overpayments, provider/member fraud, and third-party liability. The department said its recovery and avoidance efforts produced more than $251 million in savings so far in 2025. No votes or formal actions beyond approving the minutes were taken.

Transcript Highlights:

• 29:11.360><c> this</c><01:29:11.600><c> work</c> So I am also troubled that this discussion about procuring
• We can fast-track procurement under emergency rules, and we're in an emergency, but we're not moving
• We need to get to emergency procurement speed. Understood.
• an emergency we need to get to this is an emergency we need to get to emergency<01:32:48.639><c> procurement
• </c><01:32:49.239><c> speed</c><01:32:49.760><c> so</c> emergency procurement speed so emergency procurement

Transcript Highlights:

• The procurement, all of that plays a role because right now these foods are cheap.
• The procurement, all of that plays a role because right now these foods are cheap.
• The procurement, all of that plays a role because right now these foods are cheap.
• The procurement, all of that plays a role because right now these foods are cheap.
• The procurement, all of that plays a role because right now these foods are cheap.

Summary: The meeting opened with roll call and housekeeping, including moving standing attendees to an overflow room and asking the audience to avoid interruptions. The task force then heard testimony from Allison Adams of the Foundation for a Healthy Kentucky, who presented statewide health trend data showing Kentucky ranked 41st overall and 44th in health outcomes, with especially poor performance on premature death, chronic disease, diabetes, and vaccination rates. She emphasized that Kentucky has the highest rates of residents with multiple chronic conditions, that diabetes remains above the national average, and that childhood immunization rates have worsened. She also highlighted major provider shortages in rural areas, noting that 43 of 120 counties meet shortage criteria and that more than half of primary care providers are concentrated in Fayette and Jefferson counties. Adams urged the task force to focus on prevention, early intervention, access to care, physical activity, and healthier school and community environments, and said the foundation is prepared to share results from its demonstration projects. Task force members asked follow-up questions about the age range for chronic-condition data and whether the diabetes figure reflected type 1 or type 2 diabetes; Adams said the chronic-condition measure spans all ages and that the diabetes figure likely reflects type 2, though she offered to provide the full report. The task force then approved the minutes from the prior meeting. The committee next turned to SNAP benefits and heard from Lisa Dennis, commissioner of the Department for Community Based Services, and Roger McCann, director of the Division of Family Support. They explained that SNAP is not only a food assistance program but also a public health and family stability tool, arguing that poor diet contributes to chronic disease and that food insecurity is linked to family stress, child welfare involvement, and neglect-related CPS referrals. They cited research showing that more generous SNAP policies are associated with fewer CPS reports, fewer substantiated reports, and fewer foster care placements, and said SNAP helps reduce risk and promote stability across vulnerable populations including children, older adults, people with disabilities, and pregnant women. They also described SNAP-Ed as the nutrition education component that teaches healthy eating, cooking on a budget, and how to use fresh produce, but warned that recent federal legislation eliminates federal funding for SNAP-Ed beginning in federal fiscal year 2026. McCann outlined the remaining SNAP outreach and employment-and-training components, noting that outreach is typically run by nonprofits with a 50% match and that employment and training funds job-skills programs to help recipients move toward better jobs and self-sufficiency. The discussion emphasized that access to nutritious food, education, and job supports are all part of improving health outcomes and reducing food insecurity.