Transcript Highlights:

• I also want to thank my companion sponsor, Representative Rita Harris, who's in the audience today.

Committee: Senate Transportation

Summary: The Transportation Committee met and first considered SB 88, which would allow local governments to authorize utility terrain vehicles (UTVs) on certain low-speed county roads and municipal streets, with limits on who may operate them and where they may travel. An amendment from Sen. Wright was adopted to require minimum motor vehicle insurance, keep a registration certificate in the vehicle, and delay the effective date to January 1, 2026 for implementation. The bill drew mixed testimony: supporters said it would create a safe, locally controlled path for UTV use and reflect how the vehicles are already being used, while opponents from the Recreational Off-Highway Vehicle Association and Florida Justice Association argued UTVs are designed for off-road use and lack the safety features needed for public roads. After debate, the committee reported CS/SB 88 favorably, with Sen. Davis voting no and several members expressing support while noting safety concerns for future work. The committee then heard SB 274, which designates a portion of International Drive in Orlando as Harris Rosen Way in honor of the late hotelier and philanthropist Harris Rosen. Sen. Arrington described Rosen’s business success and extensive charitable work in Central Florida, and the bill received supportive comments from committee members and a representative from UCF. The committee voted the bill favorably without opposition. The final item was a discussion on transportation workforce issues led by FDOT Secretary Jared Perdue, with remarks from Florida Transportation Builders Association president Dan Hurtado. Perdue said Florida’s growing transportation needs, an aging workforce, and projected retirements require a broader workforce strategy, including a proposed Transportation Academy, craft and trade programs, learning labs, and a transportation research institute. He said FDOT has already reduced vacancies through recruit-and-retain efforts and hiring events, but still needs more skilled workers. Hurtado said FTBA supports expanding workforce development efforts and noted the industry’s own Florida Connect Academy. No vote was taken on the workforce discussion, and the committee adjourned at the end of the meeting.

Transcript Highlights:

• > or</c><00:47:36.240><c> how</c><00:47:36.480><c> we</c><00:47:36.640><c> use</c><00:47:36.880><c> AI
• </c><00:47:37.200><c> to</c> demand is growing or how we use AI to demand is growing or how we use AI
• and they're hiring because<01:32:54.639><c> they're</c><01:32:55.040><c> doing</c><01:32:55.520><c> AI
• </c><01:32:56.080><c> integration</c><01:32:56.639><c> in</c> because they're doing AI integration in
• because they're doing AI integration in med<01:32:57.199><c> device</c><01:32:57.520><c> development

Bills: HF4862 , HF4598

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Keywords: apprenticeship, education, teacher training, grant program, labor and industry, workers' compensation, Minnesota workers' compensation, Workers' Compensation Advisory Council, reinsurance association, Workers' Compensation Reinsurance Association, WCRA, occupational disease, presumption, first responders, firefighter cancer, PTSD, post-traumatic stress disorder, police officer, paramedic, emergency medical technician

Transcript Highlights:

• Then the AI would take a look and compare all of those things, because it is hard to replicate all of
• that the AI companies are always training on the data we put in there.
• that the AI companies are always training on the data we put in there.
• that the AI companies are always training on the data we put in there.
• We're at the forefront of using artificial intelligence to make decisions in agriculture with the AI

Bills: HF4698 , HF4608

Committee: House Higher Education Finance and Policy

Keywords: higher education, identity verification, enrollment fraud, funding, Minnesota State Colleges and Universities, postsecondary education, community college, university, developmental education, remedial education, remediation, corequisite, co-requisite, English composition, college readiness, adult basic education, ABE, student placement, credit-bearing courses, noncredit courses

Transcript Highlights:

• And I think it would also, through AI and stuff like that, be able to detect a little bit more and the
• And I think it would<01:29:01.840><c> also</c><01:29:02.800><c> through</c><01:29:03.199><c> AI</c><01
• :29:03.600><c> and</c><01:29:03.920><c> stuff</c><01:29:04.080><c> like</c> would also through AI and
• stuff like would also through AI and stuff like that<01:29:04.719><c> would</c><01:29:05.040><c> be<
• components as well but having there's AI components as well but there<01:29:53.280><c> is</c><01:29:

Bills: HF3396

Committee: House Taxes

Keywords: property tax, task force, assessment, state revenue, local government, 1183, house

Transcript Highlights:

• 03.520><c> like</c> companies um to invest in uh things like companies um to invest in uh things like AI
• Um and just real briefly, you talked about in manufacturing and AI.
• talked about in uh manufacturing<00:47:58.800><c> and</c><00:47:59.200><c> uh</c><00:47:59.440><c> AI
• ><00:48:00.319><c> Um,</c><00:48:00.720><c> are</c><00:48:00.880><c> there</c> manufacturing and uh AI
• Um, are there manufacturing and uh AI.

Committee: House Ways and Means

Keywords: 1183, house

Transcript Highlights:

• As you're probably all aware, AI has taken over the world, and so goes the Google search results.
• And with AI and Gemini, we did lose a significant number of direct visitors to our site.
• And with AI and Gemini, we did lose a significant number of direct visitors to our site.
• And with AI and Gemini, we did lose a significant number of direct visitors to our site.
• And with AI and Gemini, we did lose a significant number of direct visitors to our site.

Committee: Senate Jobs and Economic Development

Keywords: 1187, senate, all

Transcript Highlights:

• on decentralized networks, where blockchain provides the basic infrastructure, but it also includes AI
• but it provides the basic infrastructure but it also<00:46:10.560><c> includes</c><00:46:11.200><c> AI
• /c><00:46:11.680><c> metaverse</c><00:46:12.160><c> and</c><00:46:12.319><c> more</c> also includes AI
• I think there's a transcript in the Teams, and we could use some AI tools to summarize that into the
• AI tools to<02:07:45.360><c> summarize</c><02:07:45.840><c> that</c><02:07:46.079><c> into</c><02:07

Keywords: 1189, house, all

Summary: The Stable Token Study Commission held its first regular meeting, welcomed all remaining appointed members, and completed brief introductions from legislators and agency designees. The chair outlined the commission’s plan to use the first part of the enabling legislation as a “level-setting” discussion, focusing this meeting on the basics of blockchain, the current landscape for stablecoins and tokenized real-world assets, and leaving blockchain-based trust for a later meeting. No votes were taken. The main presentation came from Deanna Bario Zales of the Global Blockchain Business Council, who described stablecoins as increasingly converging toward fiat-backed or asset-backed models, with algorithmic designs viewed more cautiously. She said stablecoins are being used for payments, remittances, DeFi activity, cross-border transfers, retail use in high-inflation markets, and treasury functions, while noting risks such as peg instability, reserve transparency, counterparty and network risk, and possible capital flight from weaker banking systems. She cited growth in supply, wallet activity, and transfer volume, and said U.S.-pegged stablecoins dominate the market, with USDT and USDC leading. Zales also discussed tokenized real-world assets, describing them as digital representations of physical assets that can enable fractional ownership, liquidity, and faster settlement. She said the market is growing quickly, with institutional participation from firms such as BlackRock and Franklin Templeton, and projected continued expansion. She closed with an overview of regulatory developments, emphasizing the new U.S. stablecoin framework under the Genius Act, the proposed Clarity Act, OCC guidance, and similar regimes in the EU, UK, UAE, Singapore, Japan, and elsewhere, all of which she said are shaping compliance requirements and market development.

Transcript Highlights:

• services that are difficult for us to provide, like buying digital media, especially in these days of AI
• , where people are searching via AI and not by the traditional search engine methods.
• > digital media especially in these days digital media especially in these days of<01:23:52.239><c> AI
• ><01:23:53.280><c> are</c><01:23:53.440><c> searching</c><01:23:53.840><c> via</c><01:23:54.159><c> AI
• </c> of AI where people are searching via AI of AI where people are searching via AI and<01:23:54.800

Keywords: 958, all

Summary: The committee met with a quorum, approved the June 10 minutes, and then handled a routine agenda of contracts and agreements. It deferred one Kentucky Educational Television contract to the August 2025 meeting because the vendor was not registered with the Secretary of State, and then approved the remaining routine items on the PSC green list and related contract lists without objection. The most detailed discussion involved two personal service contracts for the Kentucky Employees Health Plan. Officials from the Personnel Cabinet and Department of Employee Insurance explained that the contracts were designed to identify claims errors and overspending, with vendors paid a percentage of validated savings recovered for the plan. Senators asked how the savings were calculated and whether the contracts had changed plan processes; staff said the contracts had produced realized savings, some errors had been corrected going forward, and the vendors report quarterly. The committee approved those contracts. The committee then took up a retroactive Kentucky Higher Education Assistance Authority contract for a customized College Info Road Show bus. Members questioned why the contract was being presented months after execution, why it involved an out-of-state vendor, and whether the purchase was reasonable and timely. KHEAA staff said the delay stemmed from the need to finalize sustainability and safety details after the RFP, and acknowledged internal process and staffing issues. Several members criticized the retroactive approval process and said they could not validate the purchase from the information provided, but the committee ultimately approved the contract after debate. A final KHEAA discussion focused on the purpose and value of the mobile outreach bus. Staff said the bus supports college and financial aid outreach, especially in rural areas, and has been used for 26 years. Some members questioned the return on investment and whether the state should rely more on broadband and remote outreach, while others supported the program as a way to reach students and families. The committee approved the KHEAA contract, with Senator Douglas voting no and explaining concerns about whether such outreach programs are the proper role of government and whether they are the best use of public funds.

Transcript Highlights:

• Chatbot, and it’s, by the way, it’s not generative AI, which means we don’t let the computer make up
• AI is used there also.
• c> means</c><00:50:34.200><c> we</c><00:50:34.319><c> don't</c><00:50:34.520><c> let</c> generative AI
• which means we don't let generative AI which means we don't let the<00:50:35.040><c> computer</c><00
• c><00:51:25.119><c> efficient</c><00:51:25.559><c> use</c><00:51:27.000><c> um</c><00:51:27.760><c> AI

Committee: House State Government Finance and Policy

Keywords: 1183, house

Transcript Highlights:

• And finally, the sponsor argues this bill addresses AI misuse of images, but it does nothing to stop
• AI manipulation.
• AI manipulation.
• HB 405 AI was red tape for school districts.
• GLBC, we got to make sure, I don't know, maybe AI can figure this out.

Keywords: 1182, all

Transcript Highlights:

• We're going to have to build on top of this, because it is moving so fast, with AI and all the things
• to be a constant issue solely because somebody could look one way and another way, unless we imply AI
• So we have, you know, things in place from age screenings to using AI and investing in AI to try to understand
• someone’s age,” “Screenings to using AI and investing in AI to try to understand someone’s age, and

Committee: House House Commerce Committee of Reference

Summary: The Commerce Committee heard and passed several bills dealing with insurance fraud funding, education scholarships, apprenticeships, workers’ compensation fraud, credit unions, manufactured home installation licensing, short-term rentals, homeowners associations, condo disclosures, and an advanced manufacturing infrastructure reimbursement program. HB 4020 would raise the annual insurer assessment cap for the Department of Insurance and Financial Institutions fraud unit from $1,050 to $1,350; it passed after testimony from Nationwide supporting the added resources. HB 2255 would extend Arizona Teachers Academy scholarship eligibility for community college students from two academic years to four, and HB 2591, as amended, would revise the definition and requirements for registered apprenticeships under DES standards; both passed unanimously. HB 2680, as amended, would narrow and clarify workers’ compensation fraud-related provisions and insurance disclosure requirements, and HB 2979, as amended, would modernize credit union bylaws, name changes, and operating powers; both also received due pass recommendations. HB 2868, which adds insurance and fingerprint-clearance requirements for manufactured home/mobile home installation licensees and gives the Department of Housing additional licensing authority, passed with some members present or voting no. The committee also took up HB 2429, a strike-everything amendment on short-term rentals that would let local governments set occupancy limits, extend the violation window for suspension actions from 12 to 24 months, and allow suspension after certain building code violations. The sponsor and city officials described it as a compromise giving communities more local control, while short-term rental owners and neighborhood advocates raised concerns about overbroad enforcement and the scale of the housing impacts; the bill passed 8-2 with one present. HB 4011, which would codify duties for condominium and planned community associations to act reasonably and provide access to information, was heard without the proposed Carter amendment and passed 11-0 after testimony from homeowners, attorneys, and HOA representatives about fairness and enforceability. HB 2397, another HOA-related bill, would expand disclosure requirements for condo and association purchases and escrow information; it passed unanimously after supporters said it would improve consumer transparency. Finally, the committee heard HB 4026, which would change the public infrastructure reimbursement program for advanced manufacturing projects by replacing the current statewide cap with a $75 million annual cap and requiring more transparency for related agreements. Supporters, including Queen Creek’s mayor, GPEC, and the Arizona Chamber, said the program helps fund roads, water, wastewater, and other infrastructure needed to attract large manufacturing investments and jobs, while some members questioned the budget impact and whether the program benefits rural areas. The discussion emphasized projects such as LG in Queen Creek and other major manufacturing investments, with supporters arguing the bill preserves Arizona’s competitiveness and generates long-term tax revenue.

Transcript Highlights:

• We want to create a factory that can produce a gigawatt of new AI infrastructure every week.'
• To create a factory that can produce a gigawatt of new AI infrastructure every week.
• Instead, hyperscalers are used for generative AI, which does not appear to have much use beyond exploiting
• This bill specifically applies to the high-intensity type that are typically associated with AI-related
• It is true that tech companies don't like to turn off power to AI data centers, but this means the bill

Summary: The committee began with a public hearing on Substitute House Bill 1592, which would change how state public defense funds are distributed and, in the substitute version, keep current law on state funding responsibility while revising the allocation formula. Staff explained the bill would shift county and city distributions to a pro rata, caseload-based model, allow very low-density counties to request OPD to provide some or all public defense services, require additional data collection and reporting, and direct OPD to study caseload reductions and retention. Representative Peterson said the bill is meant to create a better structure for future state support of indigent defense without the very large cost of the original proposal. Testimony from counties, cities, OPD, defenders, and local officials was strongly supportive, emphasizing a statewide public defense crisis, rising local costs, staffing shortages, and the need for a fairer funding model. The committee then heard Substitute House Bill 1742 on environmentally sustainable urban design and Substitute House Bill 1906 on water system regulation and water rates. HB 1742 would create a center in Ecology to promote sustainable urban design, fund design competitions and grants, and establish an advisory council; the sponsor said the bill reflects a desire to support a pilot project through alternative funding, and there was no public testimony. HB 1906 would require more planning and notice for Group A water systems, add customer notice and right-of-first-refusal provisions for some ownership changes, and direct the UTC to consider external funding sources, capital planning, and rate smoothing when setting water rates. Water utility and PUD witnesses supported the goal of improving transparency and consolidation of failing small systems, while noting the substitute reduced some fiscal concerns. The committee also heard HB 2248 on Secretary of State corporate and charity filings, HB 2438 creating the SEED scholarship for early childhood education students, and HB 2515 addressing emerging large energy use facilities such as data centers. HB 2248 would redirect part of annual filing fees to the Secretary of State revolving fund, require initial reports from nonprofits and LLPs, and change trademark certificate procedures; the fiscal note showed modest revenue losses, and the division supported restoring the fee split for operational funding. HB 2438 would transfer $10 million annually from the GET account to fund scholarships and wraparound services for early childhood education degree seekers, with testimony from early learning advocates and a student describing workforce shortages and personal financial barriers. HB 2515 drew extensive testimony both for and against: supporters said it would protect ratepayers, water resources, and grid reliability by requiring tariffs, reporting, clean-energy requirements, and a fee on large energy users; opponents argued it singled out data centers, could hurt investment and jobs, and included unrelated labor and procurement provisions. After public testimony, the committee moved into executive-session briefing on several bills and amendments, including HB 1903 on statewide low-income energy assistance, HB 1909 on a court unification task force, HB 1982 on vacating certain convictions tied to treaty Indian rights, HB 2034 on LEOFF Plan 1 retirement changes, HB 2105 on employer notice of federal I-9 audits, HB 2210 on ranked-choice voting, HB 2215 on Climate Commitment Act fuel supplier obligations, and HB 2271 on post-consumer recycled content requirements. Staff summarized proposed substitutes and amendments, with several changes aimed at reducing or shifting fiscal impacts, narrowing agency duties, or striking provisions entirely.

Transcript Highlights:

• Attorney General, with respect to the AI, part of the information that you provided early on, talking
• Part of the information that you provided early on talking about the AI portion in which individuals,
• like New Mexico State University that will help youth understand when they are being influenced by AI
• AI particularly is an issue for me as I'm learning more and more about AI and what it does.
• As I'm learning more and more about AI and what it does, it can take over a system, and so we're opening

Committee: House House Appropriations & Finance

Keywords: 996, all

Summary: The committee first heard an Aging and Long-Term Services Department budget presentation comparing the LFC and executive recommendations. The main differences were in the Aging Network, Adult Protective Services, Program Support, and Long-Term Care Division, especially the executive’s proposed $10 million infusion into the Kiki Savadra Senior Dignity Fund and $6.2 million for expanding New Mexico Care. LFC staff explained that the committee recommendation was lower in general fund and fund-balance use, while the executive emphasized rising senior population needs, meal and transportation costs, and the cost savings of keeping older adults at home. The secretary also reviewed the department’s special requests, including the conference on aging, outreach, emergency preparedness, and the Kiki fund, and described New Mexico Care’s growth, its evaluation results, and the department’s plan to separate Kiki into its own accounting fund. Members largely focused on senior services, rural meal delivery, transportation, caregiver support, and the Kiki fund. Several members urged stronger support for non-metro aging providers and for New Mexico Care, citing its role in keeping seniors out of nursing homes and the program’s reported savings and outcomes. Questions also covered eligibility, background checks for caregivers, respite care, dementia and Alzheimer’s screening, and whether Kiki funds can support home modifications such as ramps. The committee then voted to adopt the LFC recommendation with one executive language change: adding the executive’s page 14 language allowing an additional 12.5% distribution for initial payments to aging network providers at the start of FY27. Representative Dow opposed the motion. The committee then moved to the Attorney General’s budget. LFC staff explained that the office’s budget relies heavily on the Consumer Settlement Fund, with both recommendations reducing general fund revenue while increasing settlement-fund use, and that performance measures were in consensus. The Attorney General said the office was not seeking more general fund, but wanted greater ability to use funds it recovers. He highlighted major consumer and public safety work, including litigation against major social media and AI platforms, a case involving Snapchat and child exploitation/extortion, the statewide crime gun intelligence center, efforts to address oilfield theft, work on missing and murdered Indigenous persons, and efforts to protect federal funds coming into New Mexico.

Transcript Highlights:

• So, let me go back to ensure that we don't make AI-generated sexual content of minors.
• SB1964 modernizes Texas' AI governance by establishing clear definitions, ethical standards, and oversight
• mechanisms for AI systems used by state and local governments.
• So, let me go back to ensure that we don't make AI sexual contents of minors.
• With all the AI bills this session, this division we are creating in House Bill 2818 will be the main

Bills: SB15 , SB646 , SB800 , SB790 , SB748 , SB571 , SB1957 , SB1923 , SB1896 , SB1760 , SB1335 , SB2368 , SB2477 , SB2587 , SB2986 , SB2965 , SB1563 , SB1467 , SB1164 , SB1137 , SB614 , SB705 , SB918 , SB955 , SB869 , SB850 , SB863 , SB1055 , SB2206 , SB457 , SB2337 , SB1610 , SB1362 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB2972 , SB973 , SB865 , SB506 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB974 , SB2480 , SB3039 , SB3047 , SB2781 , SB826 , SB766 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB857 , SB2501 , SB66 , SB268 , SB331 , SB1302 , SB519 , SB2807 , SB13 , SB7 , SB1718 , SB1567 , SB1233 , SB413 , SB2177 , SB30 , SB2024 , SJR1 , SCR27 , SB2018 , SB1580 , SB2121 , SB1049 , SB1266 , SB1400 , SB1596 , SB2753 , SB2221 , SB1719 , SCR9 , SB204 , SB437 , SB568 , SB612 , SB672 , SB710 , SB823 , SB876 , SB904 , SB905 , SB968 , SB1084 , SB1207 , SB1230 , SB1313 , SB1504 , SB1790 , SB2232 , SB2366 , SB2367 , SB2398 , SB2515 , SB2520 , SB2589 , SB2786 , SB2790 , SB3048 , SB3050 , SB3052 , SB3053 , SB3056 , SB3029 , SCR3 , SCR18 , SCR30 , HCR146 , HCR148 , HCR149 , HCR153 , HCR155 , HCR157 , HB5560 , HB762 , HB1584 , HB 107 , HB 114 , HB138 , HB4386 , HB2495 , HB581 , HB3348 , HB5323 , HB4341 , HB6 , HB2712 , HB171 , HB3153 , HB143 , HB2688 , HB3464 , HB449 , HB3486 , HB4263 , HB2 , HB1522 , HB24 , HB 1237 , HB2637 , HB3126 , HB3233 , HB4310 , HB3487 , HCR9 , HB5331 , HB1397 , HB163 , HB3250 , HB3071 , HB3463 , HB5033 , HB35 , HB3824 , HB216 , HB4226 , HB3512 , HB18 , HB5154 , HB 103 , HB851 , HB647 , HB4520 , HB3016 , HB2313 , HB2818 , HB2851 , HB4486 , HB4264 , HB1500 , HB5081 , HB2974 , HB2080 , HB4384 , HB5659 , HB493 , HB4903 , HB2516 , HB4488 , HB4530 , HB3689 , HB145 , HB43 , HB5247 , HB2221 , HB5671 , HB700 , HB3711 , HB 120 , SB17 , SB1637 , SB1833 , SB2155 , SB21 , SB2778 , SB379

Keywords: SB 15, Texas Local Government Code, zoning preemption, housing affordability, small lots, lot size, lot density, single-family zoning, residential subdivision, municipal land use, local control, state preemption, parking requirements, setbacks, infill development, missing middle housing, lot width, lot depth, homebuilders, housing supply

Transcript Highlights:

• The AI translation will pick it up immediately. I mean, what goes back? How do you know what's?

Committee: Senate Corrections & Public Safety

Summary: The Senate Corrections and Public Safety Committee met in hybrid format, approved the minutes from May 13, June 10, and June 17, and then considered two bills. HB 329 would reduce the governor’s control over emergency powers by giving the General Assembly more authority to review, limit, or end emergency orders and regulations, requiring more frequent updates and tighter renewal rules; members discussed the bill’s effective-date language, and no public comment was offered. The committee then heard HB 468, which would raise the monthly 911 surcharge from 60 cents to 90 cents, the first increase in about 20 years, to generate roughly $13 million annually for 911 operations and next-generation technology. Senator DeFar and the state 911 administrator emphasized the need to stabilize funding and improve services such as text-to-911, geolocation, and faster language translation for non-English callers; several members expressed support and asked to be added as sponsors. No votes on the bills were taken during the meeting, and there was no in-person public comment on either measure. The meeting concluded after public comment was closed.

Transcript Highlights:

• Senator Guthrie, Senator Mann, Senator Standridge, Senator Weaver Senator Alverrd, Senator Coleman, I've ays

Bills: SB1303 , SB1343 , SB1435 , SB1438 , SB1444 , SB1641 , SB1765 , SB1916 , SB2067

Committee: Senate Business and Insurance

Keywords: workers' compensation, workers comp, Oklahoma Workers' Compensation Commission, Administrative Workers' Compensation Act, self-insurance guaranty fund, multiple injury trust fund, physician advisory committee, advisory council on workers' compensation, workers' compensation court, insurance, employer liability, self-insured employer, fund transfer, records transfer, agency reorganization, statutory cleanup, technical corrections, Title 85A, SB1343, Vision Plan Contractual Requirements Act

Transcript Highlights:

• everyone needs to remember to turn off their microphones because sometimes that has not happened, and the AI

Committee: House Education

Keywords: 989, all

Transcript Highlights:

• Anderson, there's been a lot of discussion around the country now about artificial intelligence and AI
• systems, and this sounds like a really good subject for AI to be used to gather all this information
• There's been a lot of discussion around the country now about artificial intelligence and AI systems,
• and this sounds like a really good subject for AI to be used to gather all this information or collect
• Clement, Madam Chair, we have discussed different ways, at least, you know, internally, of utilizing AI

Committee: Joint Judiciary Committee

Summary: The committee opened with a moment of silence honoring a deceased member, then approved the April minutes. The first major presentation was from Chelsea Florey of Child and Family Services on the Diversion Task Force and related grant programs created with one-time funding from HB 1012. She reported that five of six proposals were funded, with youth diversion services operating in Bismarck, Fargo, Grand Forks, Minot, and a Red River Children’s Advocacy Center program focused on problematic sexualized behavior. Members discussed barriers such as staffing shortages, voluntary family engagement, service fatigue, and the need for better coordination, broader outreach, and possible changes to diversion eligibility rules so low-level cases can remain in diversion longer. Several legislators pressed for more practical system changes and clearer service navigation, while Florey said the task force is trying to build a service array or hub and is leaning on the Children’s Cabinet for broader recommendations. The committee then heard from North Dakota Lottery Director Thomas Lawler, who gave an operational overview and biennium report. He described the lottery’s history, games, retailer commissions, Pick and Click subscriptions, Players Club membership, and revenue distribution. For the 2023-25 biennium, about $67 million in tickets were purchased, with roughly $16.2 million transferred overall, including money for the general fund, drug task force grants, and compulsive gambling prevention and treatment. Members asked about the compulsive gambling allocation and whether the amount is set by statute. A lengthy presentation followed from the Department of Corrections and Rehabilitation on criminal justice data connectivity and reentry. Adam Anderson explained that North Dakota’s jail, court, HHS, and correctional systems use multiple separate databases that do not communicate in real time, requiring manual cross-checks and staff communication. He said the department is exploring a centralized hub or other integration approach, but noted challenges with identifiers, vendor contracts, confidentiality, and cost. Robin Schmolenberger then updated the committee on a Medicaid data-sharing project with HHS, saying monthly application assistance is now occurring in correctional facilities and that automated bi-directional data exchange is expected in late 2026 to help suspend and reactivate Medicaid coverage and identify former foster care youth. Members also discussed parole, probation, transitional housing, and the need for better real-time notifications and clearer data definitions. The committee also received an update from county representatives on the 24/7 sobriety program, including a recent attorney general opinion that if a court waives 24/7 fees, sheriffs may use the cheaper twice-daily breath test or urine testing instead of SCRAM bracelets or drug patches. Finally, Bruce Johnson of the Racing Commission presented on an audit report, acknowledging serious findings involving overspending from the promotion fund, grant documentation failures, a breeders fund eligibility reversal, and repeated procurement violations. He said the commission has already changed its procedures by tracking fund limits monthly, requiring grant applications and itemized reports, enforcing breeders fund rules as written, and routing purchases through procurement with written contracts. The committee asked follow-up questions throughout but took no formal votes on these presentations.

Transcript Highlights:

• I had a question on how this will affect AI products and services. Yeah.
• So if the AI is software and you're paying for access to software, then that revenue stream would be
• tools that include cybersecurity services, payroll systems, cloud computing, productivity software, AI
• Poppy, obviously, in the public market and common use of ChatGPT and other AI is being used.
• We think California should direct its AI revenues to fund what is best about being human: our creativity

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• I had a question on how this will affect AI products and services.
• If the AI is software and you're paying for access to software, then that revenue stream would be subject
• tools that include cybersecurity services, payroll systems, cloud computing, productivity software, AI
• Poppy, obviously, in the public market and common use of ChatGPT and other AI is being used.
• We think California should direct its AI revenues to fund what is best about being human: our creativity

Keywords: 988, house, all