Transcript Highlights:

• um when it comes to meeting materials um when it comes to meeting materials need<00:18:32.760>
• <00:48:44.000> by collection and critical materials by collection and critical materials by
• Is it to harvest the materials?
• They can only audit so much.
• They can only audit so much.

Keywords: 1187, senate, all

Transcript Highlights:

• It would also prohibit adverse material changes to these contracts.
• Second part of this is a critical need to curb abusive PBM audit practices.
• Over the last year, so in 2024, we responded to 1400 audits, and that comprised 2900 prescriptions.
• He was audited for a claim of insulin for a fragile diabetic patient.
• However, during the audit, the PBM found a simple clerical error.

Transcript Highlights:

• Those programs were the focus of our audit.
• As a result, these legislative changes and as I guess... audit.
• The second issue we noted in the audit was an extended budget.
• They may have bought materials.
• They may have bought materials.

Summary: The Senate Appropriations Committee on Pre-K-12 Education met for its first meeting of the 2025 session to hear the Auditor General’s operational audit on 2024-25 school funding accountability challenges, focused largely on the Family Empowerment Scholarship and its interaction with the FEFP. Deputy Auditor General Matthew Tracy described rapid growth in scholarship enrollment, timing mismatches between scholarship payments and public-school funding calculations, delayed membership survey processing, weak cross-check and recoupment procedures, inconsistent handling of parent survey responses, and limited documentation for withholding and returning funds. The audit said these issues contributed to funding inequities, duplicate-payment risks, and an unexpected draw on state education funds, and it recommended separating scholarship funding from the FEFP, aligning application windows with budget timing, strengthening controls and staffing, and creating clearer, documented recoupment and balance-limit processes. Committee members questioned whether current law gives the department and scholarship funding organizations enough authority and whether the system is effectively a pay-and-chase model. Several senators expressed concern about the lack of timely reconciliation, the size of the funds involved, and the absence of clear records showing how money was recovered or withheld. Adam Emerson, executive director of the Office of School Choice, said the department is working more closely with school districts and scholarship funding organizations, including pausing payments when districts identify students still enrolled in public schools, and said the office wants to improve the process. President Gates then previewed legislation he said would address the audit’s findings by funding Family Empowerment Scholarships as a separate FEFP categorical, expanding the Education Stabilization Fund, setting clearer application and acceptance deadlines, moving to monthly payments with eligibility verification before each payment, assigning student IDs for scholarship assistance, lowering SFO management fees, requiring annual audits, and requiring prompt return of audit-related funds. Public comment included a private-school attorney describing losses from unpaid scholarship amounts. Members generally supported the need for reform, with several senators saying the program should be preserved but better structured and more accountable. The committee adjourned after the discussion, with no vote taken on the legislation.

Transcript Highlights:

• Our collection of print and electronic materials is focused on state-level public policy issues and on
• <00:12:51.760> um<00:12:52.160> a<00:12:52.360> biographical of M materials
• um a biographical of M materials um a biographical database<00:12:53.639> of<00:12:54.040>
• materials that we publish uh<00:19:12.960> we<00:19:13.080> also<00:19:13.280> of
• I notice that that wasn't listed in the materials.

Keywords: 1183, house

Summary: The committee met briefly to approve the January 16 minutes, then heard a series of informational presentations from legislative joint offices and commissions that fall under its jurisdiction. Michelle Urick of the Legislative Coordinating Commission explained the LCC’s governance structure, including its leadership-based membership and role overseeing joint offices such as the Legislative Auditor, Legislative Budget Office, Legislative Reference Library, Revisor of Statutes, and the LCC staff office itself. Christian Larson of the Legislative Budget Office described the office’s nonpartisan fiscal note work, local impact notes, and support for the Tax Expenditure Review Commission, noting the volume of requests it handles and that the office currently has 18 budgeted FTE. He also explained the LBO Oversight Commission’s role in setting standards and appointing the director. Elizabeth Lincoln of the Legislative Reference Library outlined the library’s services, including answering thousands of reference questions, maintaining state policy and legislative collections, archiving state documents, supporting the legislative website and search tools, and preserving House and Senate audio, video, and committee minutes. She also noted the library’s staffing levels and its move to the Capitol. In response to a question, she said copies of the book Minnesota Standoff were in constant circulation, that the title is out of print, and that the library had digitized it for use by legislators and staff. Ryan Inman, the Revisor of Statutes, described the office’s drafting, legal review, publication, IT, and other services. He said every bill introduced is reviewed by a Revisor attorney, the office publishes Laws of Minnesota, Minnesota Statutes, and Minnesota Rules, and it maintains the legislative drafting system now being replaced. He also discussed rule drafting for agencies, legal counsel, the claims subcommittee, court opinions reports, and the annual technical Revisor bill. Members asked about bill volume, amendment drafting, and the history of administrative rules review; Inman said the office is handling over 2,500 active bill requests and that a prior commission on administrative rules existed in the past. No votes were taken beyond approving the minutes.

Transcript Highlights:

• /c><00:09:15.200> the audit the executive branch we audit the audit the executive branch we audit
• > and well audit CPA's Financial Audits and well audit CPA's Financial Audits and that<00:11:55.680
• <00:11:58.600> the audit division does they audit the audit division does they audit the state's
• <00:39:17.200> audit presented this to the audit audit presented this to the audit audit commission
• audit performance audits like financial audit performance audits like this<01:42:03.080> one<

Keywords: 1187, senate, all

Summary: The committee first heard Senate File 563, a bill to change the board makeup of the Northern Koochiching Area Sanitary District. Senator Hild said the proposal had been heard the previous year and had broad support from local officials and stakeholders. Cali Briggs, the district’s executive director, explained that the board structure no longer reflected current populations and sewer service patterns: International Falls now holds six of eight seats after earlier consolidations, while East Koochiching has grown through sewer expansions and should receive additional representation. The bill would reduce the board to seven members, with International Falls having three seats, East Koochiching two, Rainier one, and one at-large member chosen by the board. The committee raised no substantive objections, and Senator Gustafson moved the bill to pass and go to general orders; the motion prevailed. Members then briefly joked about the topic and moved on to an overview from the Office of the Legislative Auditor. Legislative Auditor Judy Randall described the office as a nonpartisan legislative branch agency serving both chambers, with a mission of strengthening oversight, promoting accountability, and producing objective, useful reports. She outlined the office’s structure, including financial audits, program evaluations, and a growing special reviews unit, and explained the Legislative Audit Commission’s role in appointing the auditor and selecting program evaluation topics. Randall also emphasized the office’s broad access to records and data, its independence, and its responsibility to protect nonpublic information. Randall answered questions about the office’s authority over entities such as the University of Minnesota, explaining that OLA has audit authority there but often relies on the university’s internal audit function and can also conduct special reviews and program evaluations. She noted that public employees are required to cooperate and that subpoenas are available if needed, though the office prefers to maintain cooperative relationships. Special Reviews Director Katherine Tyson then described how her unit handles complaints and allegations involving misuse of public funds, data, or noncompliance with law, including preliminary assessments, communications with complainants and agencies, and deeper reviews when warranted. She said allegations and reports have increased steadily, with 481 received from 2020 through 2024 and nearly 10 per week on average last year, contributing to a heavier workload for her small team.

Transcript Highlights:

• Approximately two years ago, the Federal Department of Justice audited and identified a finding stating
• this portion of Senate Bill 302 simply codifies existing practices in the law and to correct the DOJ audit
• If a grantee's most recently completed audit documents material weakness or deficiency, the grantee shall
• They were working hard and diligently to catch up and Actually submitting audits and catching up, but
• The whole auditing system needed to be rebuilt from the ground up.

Transcript Highlights:

• We are entering into an audit RFP for auditing.
• We are entering into an audit RFP for auditing.
• We are entering into an audit RFP for auditing.
• Oh, I guess audit want to do the audit.
• <01:07:47.359> auditing<01:07:47.760> auditing of insanity auditing auditing auditing

Keywords: 912, senate, all

Summary: The Department of Health presented its supplemental budget requests and described several sources of uncertainty affecting federal funding, including policy changes, shutdown-related disruptions, and shifting appropriations proposals in Congress. Officials said some federal grants had been terminated and then restored, but the department still faces added administrative burden to access funds. They also said trust in public health institutions has declined, and outlined efforts to respond through community engagement, website cleanup, social media, and transparency dashboards. The department highlighted staffing and operations issues, noting a 29.7% vacancy rate and the success of its hiring pilot under Act 291, which has hired 38 candidates with an average 95-day hiring timeline. On the budget side, officials said the supplemental request includes increases in general, special, and revolving funds, and they walked through the first major general fund item for emergency medical services. After discussion, they said the EMS request was reduced from $8 million to $4.5 million to cover collective bargaining increases and keep contracts whole through August 2027. Behavioral health items included the payment crisis center in Ewa, which has connected more than 2,000 people to services, though roughly one-third remain unconnected or return frequently. Members questioned the quality of follow-up data and whether the program is reducing repeat use. The department also discussed state hospital decompression efforts, including use of the behavioral health crisis center, transfers to community hospitals, neighbor-island placements, and direct discharge to long-term care facilities; officials said the hospital is licensed for 292 beds and has seen census pressures rise again. A substantial portion of the hearing focused on Kalaupapa/Kalawao jurisdiction and preservation after patient care ends. Members pressed the department on the lack of a clear statewide plan, the roles of DOH, DNR, and DHHL, and what happens to land, buildings, and the cemetery after the last patient leaves. DOH said the current law is unclear on an end date, that the proposed bill would change the law, and that the landowners’ agreements with the National Park Service and each other will shape the transition. Officials said they would provide more information at a later hearing.

Transcript Highlights:

• Joint Legislative Auditing Committee will now come to order. Let's please call the roll.
• So some of our audit procedures covered earlier activity.
• period and what years you were auditing for them, please?
• period and what years you were auditing for them please so we're predominantly the auditing period and
• to determine the town's progress and correct the audit findings.

Summary: The Joint Legislative Auditing Committee first heard a long-running audit finding involving Daytona Beach’s unexpended building permit funds, which have exceeded the statutory limit for several years and were reported at $10.8 million in the most recent audit. Mayor Derek Henry and city staff said the city has analyzed the fund, adopted a corrective action plan, waived more than $5.5 million in permit and inspection fees over several periods, and used some excess funds for a training facility rehabilitation and a proposed City Hall expansion. Committee members repeatedly questioned whether the city was simply trying to spend down the money, raised concerns about the legality and necessity of proposed expenditures, and asked about interest earnings, truck purchases, and the lack of detailed tracking for training-facility use. The city said an Attorney General opinion allows construction of a new building for building-code functions but not purchase of an existing building, and that if the city cannot comply through permissible construction it would have to return the funds. No vote was taken, but members expressed strong frustration and urged the city to resolve the issue quickly and lawfully. The committee then received the Auditor General’s presentation on the Town of Greenville, which found 31 findings and described pervasive control failures, possible fraud, waste, and abuse. The findings covered elections and quorum issues, conflicts of interest, late or missing financial disclosure forms, related-party transactions, poor meeting notices and minutes, council involvement in day-to-day operations, missing ethics training, budget and accounting deficiencies, weak bank reconciliations, improper utility billing and rates, grant compliance problems tied to a grocery store project, personnel and compensation issues involving the town manager, late vendor payments, weak procurement and P-card controls, vehicle-use and property-control problems, public records issues, and IT/fraud-policy weaknesses. The auditor said the review focused mainly on October 2022 through February 2024 but went back further for some grant-related matters. Greenville’s mayor and staff said the audit reflected actions of a previous administration and that the current council and staff have already adopted seven new policies to improve procurement, financial controls, inventory management, grant oversight, and ethics. They said the town has a new manager and clerk, that the former manager was terminated, and that the town referred matters to FDLE, which is investigating. Committee members asked about the manager’s salary increase, severance, P-card use, and whether the town should consider consolidation or dissolution. The mayor said the town is on a better path, that most of the prior leadership has been voted out, and that the town is working with auditors and an outside accounting firm to correct the problems.

Transcript Highlights:

• And if I'm correct, I believe we had to bring it because did we we had an audit issue as it relates to
• <00:14:20.079> What providing education materials, etc.
• What providing education materials, etc.
• <00:14:41.760> issue<00:14:42.079> as because did we we had an audit issue as because
• did we we had an audit issue as it<00:14:42.480> relates<00:14:42.800> to<00:14:43.120

Bills: SB182, SB251, SB252, HB74, HB159, HB292, SB182, SB251, SB252, HB74, HB159, HB292

Keywords: psychoactive cannabinoids, cannabis, beverage prohibition, criminal penalties, youth access, Jefferson County, pistol permit, gun permit, concealed carry, firearm permit, sheriff fee, permit fee, weapons license, gun licensing, school security, Jefferson County Sheriff's Fund, retirement system, Gardendale, Birmingham legislative office, local bill

Transcript Highlights:

• reports, for our single audit for all years to date, with no material weaknesses or required repayments
• for all years to date with no audit for all years to date with no material<00:02:00.560> weaknesses
• Um I have two for these audits.
• is this help me understand the auditing is this help me understand the auditing process?
• <01:23:59.760> The timeliness and quality audits. The timeliness and quality audits.

Keywords: 1183, house

Transcript Highlights:

• audit.
• I mean, there were audits; the last audit was 2021, I believe, and that audit was clean, and there were
• I mean, there were audits, the last audit was 2021, I believe, and that audit was clean, and there were
• This was a clean audit.
• audit.

Summary: The committee was called to order, the Pledge of Allegiance and prayer were offered, and the minutes from the previous meeting were approved. Members then received a memo summarizing major audit items and began hearing audit presentations from the State Auditor’s Office and private auditors on a range of state agencies and organizations. Several audits were reported as clean, including the Bank of North Dakota, the North Dakota Guaranteed Student Loan Program, the Office of the Governor, the Office of the State Treasurer, the Office of Management and Budget, the Department of Transportation’s flexible transportation fund, Lake Region State College, and the Department of Environmental Quality. The North Dakota Stockmen’s Association also received an unmodified opinion, though repeat findings were noted for limited segregation of duties and financial statement preparation due to its small staff. The Council on the Arts audit found two findings: payroll charged to federal awards without adequate timekeeping records, and unallowable expenditures from a restricted cultural endowment fund. The Department of Public Instruction audit identified unsupported scholarship applications in the paraprofessional-to-teacher program, though additional testing showed the funds were used for their intended purpose. The most extensive discussion centered on the North Dakota Racing Commission audit, which identified four findings: overspending the promotion fund’s 25% operating limit, grant conditions not being met, improper Breeders Fund awards, and improper procurement for advertising services. Racing Commission director Bruce Johnson acknowledged complacency and weak controls, said the agency would tighten procedures, and explained that the commission had since worked with procurement and would follow the rules more closely. Auditors also explained that the commission would now be audited every two years because of the findings. Another major discussion involved the University of North Dakota School of Law, where auditors found a lack of documentation supporting admissions decisions for post-baccalaureate programs. UND officials said they remain in good standing with the American Bar Association but agreed better documentation and tools are needed; the committee pressed for more transparency and follow-up on admissions criteria. The committee also received an update on Dakota College at Bottineau, where Minot State University reported that bank reconciliations had been brought current after a significant backlog and would now be maintained through shared services. Members requested a written follow-up report on the issues and corrective actions. Finally, the North Dakota Fair Association explained that its foundation has been dissolved and remaining funds were transferred to another nonprofit for continued support of the state fair, and the Department of Public Instruction provided an update on school meal debt, saying the reported amount was about $1.1 million from a partial district survey and that debt remains a local issue, though it could be revisited if school meal funding changes.

Transcript Highlights:

• So when they see pornographic material or they read very graphic pornographic material, how would you
• I don't think that seeing that kind of material is...
• Are they ready to encounter that kind of material?
• any material harmful to kids.
• Okay, but what about materials collected after that?

Bills: HJR175, HJR88, HB21, HB49, HB216, HB346, HB573, HB565, HB954, HB1953, HB2686, HB1441, HB2734, HB1650, HB3161, HB2876, HB3185, HB3388, HB2761, HB3233, HB 1186, HB1534, HB5506, HB5129, HB3619, HB778, HB2867, HB3221, HB3672, HB2434, HB4903, HB3687, HB3675, HB4609, HB4582, HB4921, HB3866, HB3901, HB4534, HB2446, HB3984, HB700, HB4012, HB4491, HB4088, HB229, HB4234, HB722, HB4136, HB4105, HB4413, HB170, HB551, HB2858, HB3053, HB3142, HB3180, HB3722, HB2200, HB1794, HB1784, HB1581, HB2530, HB4308, HB1896, HB2974, HB3359, HB4580, HB2458, HB2215, HB3332, HB2278, HB3015, HB3151, HB1368, HCR9, HCR40, HB5138, SB17, HB4944, HB2284, HB3421, SB1569, SB2420, SB1968, SB2351, SB2544, SB1490, SB1349, SB1568, SB2776, HB3531, HB2149, HB4327, HB3158, HB3717, HB4520, SB888, SB552, HB3138, HB3704, HB2921, HB4853, HB4506, HB3892, HJR161, HJR175, HJR88, HB1937, HB3334, HB5444, HB5137, HB361, HB321, HB5447, HB464, HB678, HB2294, HB4172, HB3225, HB1769, HB5394, HB1837, HB1787, HB2271, HB2440, HB5134, HB5149, HB2151, HB2073, HB2186, HB2025, HB1936, HB1777, HB1663, HB 1306, HB 1290, HB1527, HB4802, HB3462, HB2963, HB2462, HB2560, HB644, HB2725, HB2621, HB2588, HB1443, HB1403, HB3032, HB1557, HB1664, HB2811, HB2088, HB2598, HB3062, HB3134, HB3940, HB4027, HB4097, HB4862, HB4170, HB4157, HB4205, HB4279, HB4377, HB4838, HB5424, HB5294, HB4870, HB4763, HB5639, HB4112, HB2275, HB1677, HB5014, HB3848, HB3797, HB3727, HB3709, HB3177, HB3057, HB4176, HB4202, HB2180, HB3528, HB3658, HB21, HB49, HB216, HB346, HB573, HB565, HB954, HB1953, HB2686, HB1441, HB2734, HB1650, HB3161, HB2876, HB3185, HB3388, HB2761, HB3233, HB 1186, HB1534, HB5506, HB5129, HB3619, HB778, HB2867, HB3221, HB3672, HB2434, HB4903, HB3687, HB3675, HB4609, HB4582, HB4921, HB3866, HB3901, HB4534, HB2446, HB3984, HB700, HB4012, HB4491, HB4088, HB229, HB4234, HB722, HB4136, HB4105, HB4413, HB170, HB551, HB2858, HB3053, HB3142, HB3180, HB3722, HB2200, HB1794, HB1784, HB1581, HB2530, HB4308, HB1896, HB2974, HB3359, HB4580, HB2458, HB2215, HB3332, HB2278, HB3015, HB3151, HB1368, HCR76, HCR127, HCR9, HCR40

Keywords: constitutional amendment, medium of exchange, currency rights, digital currency, financial autonomy, tax exemption, rainwater harvesting, graywater system, local government, ad valorem taxation, housing finance, multifamily residential, low income, audit requirements, affordable housing, development bonds, oil waste, gas waste, liability, treatment processes

Transcript Highlights:

• So, a very clean audit.
• audit.
• I mean, there were audits—the last audit was 2021, I believe—and that audit was clean, and there were
• This was a clean audit.
• audit.

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• We've heard oblique or maybe even direct criticism of the audit and risk assessments.
• To protect industry innovation, the individual audit reports remain strictly confidential.
• To protect industry innovation, the individual audit reports remain strictly confidential.
• searches on behalf of immigration agencies that were somehow missed by existing audits.
• SB 1013 addresses this by requiring audits by the California Department of Justice.

Keywords: 988, house, all

Transcript Highlights:

• They also perform some auditing functions with the counties. A key part of it.
• They also perform some auditing functions with the counties.
• And then we also perform an audit of funds dispersed through the treasurer's office.
• If that, how material is that to the reinvestment decisions?
• If that, how material is that to the reinvestment decisions?

Summary: The Tax Reform and Relief Advisory Committee met with a quorum, approved the March 17, 2026 minutes, and heard a lengthy update from Tax Commissioner Brian Croshys on property tax relief programs. He reviewed the Homestead Property Tax Credit, Disabled Veteran Credit, and Primary Residence Credit, noting increased relief after House Bill 1158 and House Bill 1176, but also discussing how some households “income adjust out” of eligibility over time. Members asked about indexing income thresholds, expanding eligibility by age alone, simplifying administration, county-level notices, and whether the county and state systems could be streamlined. Croshys said the programs are heavily used, largely administered at the county level, and that the department is still refining compliance and reporting; he also said there were no material findings or overarching concerns in the latest review. The committee agreed more detailed PRC information would likely come back in a September meeting, and the chair announced an afternoon recess for lunch before later reconvening. Shelly Myers then presented the statewide property tax increase report, the zero-growth report, and a statistical report on property values and tax levies by class. She explained how county auditors report levy and valuation data, how increases and decreases are counted, and identified counties and cities with the largest percentage changes in growth or decline. She also summarized recent trends: agricultural values remain relatively flat, while residential, commercial, and centrally assessed values have risen over the last five years; in 2025, residential property accounted for the largest share of statewide property tax levies, followed by commercial, agriculture, and centrally assessed property. Committee members asked about unusual zero-growth figures, the effect of annexation and land-use changes, and whether the 3% levy cap was forcing political subdivisions to use reserves or defer spending. Myers said many counties complied by using reserves, delaying capital projects, or limiting increases, and that some counties had not used their full cap. The committee then moved to the stripper oil extraction tax exemption. Commissioner Croshys reviewed the state’s oil tax structure and estimated the revenue impact of keeping stripper wells exempt from extraction tax while still paying production tax. He said the exemption saves operators hundreds of millions of dollars over a biennium, while the state still collects production tax on those wells. He also discussed projected impacts if the exemption were changed for future wells and noted that future outcomes depend on oil prices, production declines, and technology such as CO2 enhanced oil recovery. Nathan Anderson of the Department of Mineral Resources briefly explained the historical difference between the 35-barrel and 30-barrel thresholds for certain wells, citing differences in completion costs and lateral lengths. The committee then heard from EERC CEO Charles Gorecki, who presented an analysis of oil well life cycles and said most oil is produced before wells reach stripper status, but that refracturing or other reinvestment can significantly extend production and keep wells above the threshold for years.

Transcript Highlights:

• We are starting the Joint Legislative Audit and Review Committee. Today is December 3, 2025.
• audit.
• To audit tax filing.
• Just a reminder, this is not a performance audit.
• This is a performance audit report. Good morning, members of the committee.

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

• I will be speaking off of a handout that you should have in your materials today.
• slides five and six, we request additional funds to restructure the salary rates for the agency's audit
• Speaker: Yes, that and continuing to manage our audits of those certified vendors to ensure they stay
• Remind me what the audit issues were?
• And obviously the comptroller's office has a lot of sensitive material, a lot.

Bills: SB 1, SB1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, appropriations, budget, state funding, education, healthcare, infrastructure, 1185, senate, all

Transcript Highlights:

• > of<00:40:35.839> required validation and auditing of required validation and auditing
• Incorporates new material requirements.
• /c> existing material incorporated by existing material incorporated by reference<00:40:53.440> consistent
• John Wood, outside counsel for the Board of EMS. material. Provides the website to access material.
• :41:15.119> makes incorporated material and makes incorporated material and makes technical<00

Keywords: 0:22 – Roll Call 0:30 – Approval of minutes 1:04 – Department of Veterans Affairs 2:06 – Board of Pharmacy 3:20 – Board of Optometric Examiners 39:26 – Board of Nursing 40:07 – Board of Emergency Medical Services 41:52 – Department of Fish & Wildlife Resources 44:36 – Transportation Cabinet: Department of Vehicle Registration 45:36 – Department of Alcoholic Beverage Control 47:00 – Cabinet for Health & Family Services: Department for Medicaid Services 49:59 – Cabinet for Health & Family Services: Department for Community-Based Services, 958, all

Summary: The subcommittee approved the minutes from the previous meeting and then took up several regulations. The first was a Department of Veterans Affairs regulation, with a staff amendment, to allow nurse practitioners to apply for the Veterans Affairs nurse loan repayment program year-round and to make technical drafting changes. The committee heard from the Office of Kentucky Veteran Centers, then adopted the staff amendment and approved the regulation without objection. The main item of the meeting was the Board of Optometric Examiners’ proposed amendment to 201 KAR 5:010, which would allow applicants to use the Optometry Examining Board of Canada written exam in place of part one of the National Board of Examiners in Optometry exam for licensure. The board said the change would improve access to care, provide an additional pathway for Canadian-trained candidates, and still require applicants to pass the remaining national board parts. Opponents, including NBEO officials, ARBO, Pearson VUE, and several optometrists, argued the Canadian exam is not equivalent, does not test the same biomedical science content, is not validated for U.S. scope of practice, and raises concerns about test security, transparency, and portability across states. They urged the committee to find the amendment deficient or vote no. Committee members questioned both sides about prior communication with the board, whether Kentucky would be the first state to adopt such a change, the rationale for the proposal, and the cost difference between the exams. Supporters said the board had received some written comments and one phone call, and that the proposal was driven by access concerns and the presence of Canadian students. Opponents said they had not had direct discussions with the Kentucky board before the hearing. No final vote on the optometry regulation is reflected in the transcript excerpt, but the committee heard extensive testimony and rebuttal before moving on.

Transcript Highlights:

• businesses up to Fortune 500 businesses in this particular area, in the application and defense in audit
• When my company bids a new construction project, the sales tax only applies to the materials.
• Typically about 40% in commercial construction is materials, 60% is everything else.
• And so in one instance, we had a member who had an audit, ...polluted and confusing.
• So in one instance, we had a member who had an audit.

Summary: The Senate Finance Committee heard several tax and economic development bills. SB 935 would exempt counties from the motor fuels tax on fuel used exclusively in county vehicles; Sen. Hall and Cass County Judge Travis Ransom argued it would save counties money without changing fund allocations, and the bill was left pending while the committee waited for the House version. SB 2206 would extend and revise Texas’s research and development incentives by tying the franchise tax credit more closely to federal law and changing the program’s effective date; supporters from business, manufacturing, and tax policy groups said it would protect innovation jobs and help startups, while the Comptroller’s office explained the fiscal note and said the committee substitute was no longer needed. The committee later withdrew the substitute and left the bill pending before ultimately voting it out favorably. The committee also heard SB 2020, which would repeal the “rehab tax” on nonresidential remodeling. Sen. Campbell said a large fiscal note led him to delay a full presentation, but builders, architects, and contractors testified that the tax raises remodeling costs, complicates audits, and discourages reuse and reinvestment in existing buildings. The bill was left pending. SB 2018 would create a two-year “strong families” tax credit for businesses donating to nonprofits that provide family support services; supporters from Family First, Buckner International, and Texas Baptist said it would strengthen families, father engagement, and upstream prevention, while the author said the Comptroller and HHSC were still working on administration details. That bill was also left pending. After a quorum was established, the committee heard and later reported several bills favorably. SB 1030 would exempt certain aircraft maintenance, repair, and overhaul parts from sales tax for general aviation; industry, airport, and local economic development witnesses said it would keep high-wage aviation work in Texas and improve competitiveness with neighboring states, and the bill was reported favorably. SB 214 would create a temporary sales tax holiday for qualifying residential HVAC systems; it was laid out and left pending. SB 1901 would make administrative and ethics changes to the Opioid Abatement Fund Council, including staggered terms, conflict rules, and fund reallocation procedures; it was reported favorably. SB 266 would repeal the Texas Research Incentive Program and use the appropriation to address the existing backlog of unmatched donations; the chair and Sen. Paxton said the state should honor past commitments, and the committee substitute was adopted and the bill was reported favorably. The committee then recessed subject to the call of the chair.

Transcript Highlights:

• Likewise, our advancement staff audited Likewise, our advancement staff audited all<00:14:31.760
• We will also continue to audit our programs and job descriptions regularly.
• ,<00:37:52.000> and operations, public materials, and operations, public materials, and programming
• <00:56:26.640> The<00:56:26.880> university in all material aspects.
• The university in all material aspects.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Education met to hear updates from Kentucky public universities and the Kentucky Community and Technical College System on compliance with House Bill 4, which restricts DEI-related activities and requires institutional and viewpoint neutrality. The chair emphasized that the hearing should focus on both compliance and the financial effects of the law. Eastern Kentucky University said its board adopted a House Bill 4 compliance resolution and an institutional neutrality policy. KCTCS reported systemwide reviews of programs, websites, scholarships, personnel, and admissions language, along with board actions removing a cultural competency course requirement, adopting institutional neutrality, and certifying compliance. KCTCS said about $2.5 million annually had been reallocated to other needs, and that no personnel were eliminated, though some roles were reassigned and DEI-related offices closed. Kentucky State University said it had already dissolved DEI offices before the bill passed, ended DEI-specific training, revised policies and gift acceptance rules, adopted a viewpoint neutrality policy, and was conducting ongoing reviews of programs, job descriptions, and web content. KSU said it had achieved substantial compliance, expected full operational integration by August 1, and had not terminated staff or closed academic programs because of the law. In response to questions, KSU said it was broadening outreach to all students rather than targeting specific populations and that its prior diversity finding was tied to not meeting a diversity quota. Morehead State University said it had no DEI office before House Bill 4, amended its non-discrimination statement to include political and social viewpoint neutrality and condemnation of religious and ethnic discrimination, and remained focused on serving its largely low-income student body. Murray State University reported reviewing scholarships, expenditures, training, and academic programs to ensure no differential treatment or indoctrination, revising its neutrality policy, and updating non-discrimination posters and training. When asked about a statement that DEI would “look different,” the university said it meant student support services would continue in a different form. Northern Kentucky University said it dissolved its diversity office and chief diversity officer position in 2024, reviewed programs, events, scholarships, and employee affinity groups, adopted a statement on intellectual diversity and viewpoint neutrality, and reviewed about 2,000 courses for compliance. NKU also said its new Center for Belonging would focus on first-generation and commuter students rather than rebrand prior DEI efforts. The University of Kentucky began its presentation by describing earlier changes made in August 2024, including disbanding its office of institutional diversity, removing diversity statements and mandatory training, adopting institutional neutrality, and ending race-based consideration in admissions and scholarships; the transcript cuts off before the rest of UK’s testimony and any committee votes or formal actions beyond receiving the presentations.