Transcript Highlights:

• <00:07:34.879> as the office of the legislative auditor as the office of the legislative auditor
• State Auditor Blaha and Ms.
• Madam Auditor, thank you.
• Auditor Blaha, thank you, Mr. Chair.
• be a real help thank you madam auditor be a real help thank you madam auditor Senator<01:15:44.639

Keywords: 1187, senate, all

Transcript Highlights:

• I know that that principle has provided information to the Auditor General.
• These training programs must be approved by the Auditor General.
• And it has to be approved by the Auditor General.
• I'm sorry—the training has to be approved by the Auditor General.
• No, no, no, not the Auditor General. The Attorney General, thank you. Sorry.

Keywords: 1182, all

Summary: The committee heard and advanced several education-related bills. HB 2318 would impose term limits on school district governing board members in districts with at least 250 students, with a four-year break before a former member could run again; the sponsor said it was meant to bring in new ideas after problems in a district, while opponents argued voters should decide and raised concerns about the timing of the change. It passed on a 6-5 vote. HB 2312 would allow certain federally recognized patriotic youth groups to address students during school hours and require equal access for such groups; supporters framed it as a way to expand youth opportunities, while opponents objected to use of instructional time. It also received a due pass recommendation on a 6-5 vote. HB 2320 would require school districts to hire an independent municipal advisor before calling a bond election and, if successful, for each bond issue. The sponsor argued this would lower underwriting fees and save taxpayers money, citing data showing lower average fees when advisors were used; testimony from the Arizona Tax Research Association and a school accountability group supported the bill, while members raised questions about costs if a bond fails and about how public information is presented. The bill passed 7-3 with two present votes. HB 2376 would prohibit districts from buying or leasing school property when an operating charter or private school is on the site, aimed at preventing a district from using a purchase to manipulate enrollment counts and trigger state construction funding; members debated whether the underlying allegation was hearsay, but the bill passed 7-5. HB 2378 would tighten conflict-of-interest rules for the School Facilities Oversight Board by barring the architect and engineer members from having school-construction business. The sponsor said it was prompted by a reported conflict involving Tolleson Union and a board chair’s firm; some members supported the ethics rationale while others said the bill did not address broader issues, and it passed 8-4. HB 2379 would require school district governing board members to complete biennial training on duties and responsibilities, with county superintendents required to offer the training and ADE as a backstop; the committee adopted an amendment making county training mandatory and allowing intergovernmental agreements, and the bill passed 7-5 after debate over unfunded mandates, whether ASBA should be included, and whether charter boards should also be covered. Finally, HB 2380 would require board and subcommittee meetings to be held in-district, keep meeting materials online for five years, and require prior approval for out-of-state travel or later ratification with possible reimbursement; rural school representatives warned it could hinder regional collaboration and create administrative burdens, and discussion continued on how to preserve executive-session confidentiality and public access.

Transcript Highlights:

• the Joint Legislative Audit and Review Committee's Initiative 900 performance audits by the State Auditor
• anyone online has a question, If anyone online has a question, seated next to me is the legislative auditor
• I'm a performance auditor at the Office of the Washington State Auditor.
• Auditor.
• I'm here today with my colleague Nancy Patino, who is also a performance auditor.

Summary: The Joint Legislative Audit and Review Committee’s Initiative 900 subcommittee held a hybrid public hearing on two State Auditor performance audits. The first audit examined efforts to reduce non-emergency use of emergency systems through CARES programs. Auditors reported that Washington has 52 fire-agency-led CARES programs in 26 counties, but many communities without programs said they need one. Major barriers included unstable funding, difficulty hiring qualified staff, volunteer-based rural departments, and lack of statewide guidance. The audit also found that only about half of programs tracked both required performance measures, and it recommended that the legislature consider private insurance reimbursement options and convene a statewide work group to develop guidance, standards, and possible changes to the role of the Department of Health. Agency representatives and fire officials largely supported the findings and emphasized that short-term grants and one-year contracts make programs hard to sustain. Committee discussion focused heavily on financing, especially Medicaid reimbursement and accountable communities of health (ACHs). Auditors clarified that the 10% figure cited in the report referred to direct Medicaid reimbursement for treat-and-refer services, which some agencies do not pursue because the $115 rate is too low relative to the administrative effort. Several fire officials testified that their programs rely on grants and ACH support, but that funding is often year-to-year and uncertain. They also described the value of CARES programs in reducing emergency room use, jail detentions, and long ambulance wait times, while noting barriers to sharing patient records across systems. Members asked whether the new public safety sales tax authority could help, but fire district representatives said it is not a direct funding option for them. The second audit reviewed performance management in the Department of Commerce’s Office of Economic Development and Competitiveness. Auditors found that the division does not yet have a statewide economic development strategic plan and that performance management is inconsistent across its 16 programs. In a limited review, all six sampled programs had goals, but only half clearly identified performance measures and targets, and only three tracked outcomes and published results. The audit highlighted leading practices from other states, including strategic planning, regular progress reporting, aligning program goals with agency goals, and using performance-based contracts and grant monitoring. Recommendations urged Commerce to seek stakeholder input, assess internal and external conditions, set goals and measures, align programs with the strategy, and strengthen monitoring and evaluation. Commerce officials agreed with the audit and said the division is already working toward a strategic plan, with a new assistant director to be hired and a target of completing the work by mid-next year. Members pressed the department on how the plan would connect to workforce, higher education, housing, and other economic development systems, and asked Commerce to return to JLARC next year with progress updates. The meeting ended with instructions for submitting written public comments and notice of the next JLARC meeting schedule.

Transcript Highlights:

• Before I go to the next speaker, I just want to note, the State Auditor is in the audience.
• Auditor has said.
• I'll say a couple things, and then I'd like to ask our auditor question if he's still here, yes.
• So, but I would like to hear from our State Auditor.
• State Auditor: Thank you, Madam Chair, members of the committee. It's a pleasure to be here.

Transcript Highlights:

• The State Auditor will be presenting their recent report, enhancing Washington's child support insurance
• The State Auditor is authorized to do this under the provisions of Initiative I-900, which was voted
• The State Auditor is elected by the people and acts independently from the legislature and thus independently
• My name is Lisa Weber, and I am a senior performance auditor with the Washington State Auditor's Office
• I was the lead auditor for this performance audit. I'd also like to thank...

Summary: At the June 4, 2025 JLARC I-900 Subcommittee hearing, the State Auditor’s Office presented a performance audit on Washington’s child support insurance intercept law. The audit reviewed the mandatory reporting system for insurance claims tied to past-due child support, noting that collections increased after the law took effect in 2022, but that some eligible claims still are not being reported. Auditors said DCS learns about roughly 1 in 10 claims through other channels, and that insurers may miss reporting because they are unaware of the law, make administrative errors, or misunderstand the $500 threshold and timing requirements. The audit recommended that the Office of the Insurance Commissioner help educate insurers by adding information to its website and sharing insurer contact contacts with DCS, and also recommended that the Legislature amend the law to create monitoring and enforcement authority. The auditor said neither DCS nor OIC currently has authority to monitor compliance or take action against noncompliant insurers, though other states use insurance regulators or market conduct exams for this purpose. Committee members asked about possible coordinated enforcement between DSHS and OIC, which the auditor said was beyond the scope of the audit but could be considered by the Legislature. An OIC representative said the commissioner is willing to help educate insurers, post information on the OIC website, and share contact information with DSHS, and that the agency is open to further discussion. No public testimony was offered, and no votes or formal committee actions were taken at the hearing.

Transcript Highlights:

• The Auditor General did indeed audit the fleet process and the fleet management system.
• We're waiting for the Auditor General to come back to us on that.
• In January 2025, the Auditor General released their report.
• And that is what we have submitted to the Auditor General as part of our response.
• So this is a required date by the Auditor General. It had to have been done by that time.

Summary: The Committee on Governmental Oversight and Accountability met for its first meeting of the session, took roll, and heard a presentation from Ken Plant of the Joint Administrative Procedures Committee on SB 108, the 2025 law overhauling Florida rulemaking. The presentation focused on new deadlines for agencies to begin and publish rules, limits on automatic sunset provisions, changes to emergency rule procedures, expanded public input on statements of estimated regulatory costs, a five-year review cycle for existing rules, and new licensing-reporting requirements. Members asked about the review timeline and emphasized the need to keep agencies accountable for meeting the new requirements. The committee then reviewed the Department of Management Services’ response to Auditor General Report 2025-1096 on fleet management. DMS said the audit found 10 issues, most of which it believes it has addressed, and described the statewide fleet system as tracking about 27,000 assets with limited staff. DMS highlighted two major improvement ideas that would require funding: an enterprise telematics system to automate vehicle data and improve tracking, and centralized fleet procurement to reduce duplication and save money. Members questioned the status of FleetWave implementation, missing vehicle records, integration with other state systems, and access controls for separated employees. DMS explained that FleetWave is fully implemented but still relies on manual data entry, that discrepancies with the state accounting system largely reflect mismatched or inconsistent entries, and that policies and procedures were updated after the audit. The department said it now works more closely with People First to deactivate access when employees leave. After discussion, no further business was raised, and the committee adjourned without objection.

Transcript Highlights:

• on um our um state staff, our state auditors.
• on um our um state staff, our state auditors.
• on um our um state staff, our state auditors.
• Workload on state auditors.
• Davids, we do, uh, have audit auditors Davids, we do, uh, have audit auditors that<00:58:19.119>

Bills: HF4119, HF3959, HF3792, HF3913, HF3752

Keywords: property tax, renter credits, co-pay, housing affordability, tax relief, homestead, tax refund, Minnesota, tax increase, financial relief, homeowners, AmeriCorps, taxation, individual income tax, living allowances, stipends, national service, tax compliance, revenue, analytics

Transcript Highlights:

• Working together, I want to give credit to the Office of State Auditor.
• Working together with the state auditor, we completed the first audit of the SHARE system.
• We have worked closely with the Office of State Auditor. I want to thank them.
• The auditor sent out letters saying, "Don't send your audits," but we need them.
• Auditor. We've had several meetings with him.

Transcript Highlights:

• Everyone’s having trouble filling auditors everywhere.
• re giving up out-of-state auditor positions.
• We are looking at, I could hire an auditor today anywhere in the world.
• re giving up out-of-state auditor positions.
• We're going to come back and say in our LBR, we're going to cut 25 auditors.

Summary: The subcommittee met to review agency vacancy reports and agency-requested budget reductions, with Chair Lopez framing the discussion around stewardship of taxpayer dollars, agency efficiency, and whether long-vacant positions should be cut or repurposed. Members were given vacancy summaries and asked to focus on how agencies are functioning with current staffing, which positions are mission critical, and whether some vacancies reflect market pay issues, re-engineering of work, or true excess capacity. The chair also noted that agency heads had been asked to provide follow-up information on current openings, average vacancy duration, mission-critical roles, and reasons for vacancies. The Department of Revenue was the first major agency reviewed because it had the largest number of vacancies. Its leadership said vacancies had improved from pandemic-era highs due to market pay adjustments, but that some areas—especially general tax and audit—still had long-term openings. The department explained that some positions are intentionally frozen while work is restructured, that it hires above minimum salary in some cases to stay competitive, and that it is using automation and process changes to reduce backlogs. Members raised concerns about vacancies outside Leon County, out-of-state auditor positions, salary compression, and whether the department should provide a list of frozen positions and the salaries actually needed to recruit. The Department of Financial Services said its long vacancies were concentrated in risk management, law enforcement, and the general counsel’s office, where salaries and competition from private employers and other agencies make hiring difficult. DFS said it was using outside vendors in some areas, had reduced vacancies in its general counsel office significantly, and was willing to identify positions that could be cut, including some from treasury and OAT. The Department of Business and Professional Regulation reported progress in lowering vacancies through statewide recruiting, centralized legal hiring, automation in service operations, and leadership changes in alcoholic beverages and tobacco; it said one recommended cut could be achieved by combining two half-time positions. The Florida Lottery reported a low vacancy rate, said all positions were critical, and explained its longer onboarding time due to extensive background checks; members discussed sales reps, incentives, and the agency’s field-office structure. The Office of Financial Regulation said many of its vacancies were already in the hiring pipeline, with recent vacancies tied to promotions, a death, and internal moves, and noted that it often serves as a training ground for federal agencies. The Office of Insurance Regulation, which had a high vacancy rate concentrated in Leon County, said it had been reducing vacancies from a much higher level and was still working through hiring and administrative constraints.

Transcript Highlights:

• Judy Randall, Legislative Auditor: Thank you, Mr. Chair and members.
• For the record, my name is Judy Randall, Legislative Auditor.
• Uh, Auditor Randall, uh, please right.
• I want to Randall, legislative auditor.
• Thank you, Auditor Randall.

Keywords: 1187, senate, all

Transcript Highlights:

• ><00:16:31.480> agree<00:16:31.720> with<00:16:31.839> the<00:16:32.240> Auditors
• you do or don't agree with the Auditors you do or don't agree with the Auditors um<00:16:33.480>
• Now, your original request had been for 3.9, but the auditor gap came out at 5.4.
• Now, your original request had been for 3.9, but the auditor gap came out at 5.4.
• <00:22:00.360> came i' be more precise 3.6 the auditor came i' be more precise 3.6 the auditor

Keywords: Meeting Start 00:00:00 Roll Call 00:00:05 HB 537 Discussion 00:00:40 HB 537 Vote 00:02:45 HJR 34 Discussion 00:03:30 HJR 34 Vote 00:07:45 HJR 30 Discussion 00:08:30 HJR 30 Vote 00:10:25 HJR 32 Discussion 00:11:00 HJR 32 Vote 00:41:00, 958, all

Summary: The committee took up several measures related to appropriations and school facilities. House Bill 537 was explained as a technical fix to Kentucky’s opioid abatement settlement framework so the state can accept funds from national bankruptcy settlements under the allocation structure now used by the courts; the bill was supported by the Attorney General’s office and local government groups and received a favorable recommendation. House Joint Resolution 34 authorized release of previously appropriated KCTCS funds for three projects, and members discussed whether KCTCS facilities could be used more broadly for community needs such as public health, workforce, and other services. KCTCS officials said they were open to that idea, and the resolution also received a favorable recommendation. House Joint Resolution 30, concerning the Waters program and release of funds for projects that had remained in design, was adopted by committee substitute and passed favorably. The committee then heard extensive testimony on House Joint Resolution 32, which concerns school facility gap funding for districts with low bonding capacity. The chair and sponsor explained that the General Assembly had previously asked the auditor and Blue & Co. to analyze district data because of disputes over project costs and bonding capacity. Superintendents from Marion County, Augusta Independent, Williamstown, and Walton Verona described their projects and financial constraints. Marion County and Augusta argued that full gap funding is necessary for new school or multipurpose facility projects that cannot be phased in; Augusta emphasized its old building stock, high poverty rate, and the need for a gymnasium/multipurpose space used for school and community functions. Williamstown described a STEM center and field expansion, saying the project would be delayed for years without full funding. Walton Verona described rapid growth, overcrowding, and an intermediate school project that had risen sharply in cost from the original estimate. Members asked questions about the accuracy of cost estimates and the scope of the projects, including why some estimates differed from the auditor’s figures and whether the funding requests covered only parts of larger phased plans. The testimony generally supported full funding for the listed districts, with the districts arguing that the projects are necessary for safe, modern learning environments and that local tax effort has already been substantial. Each of the measures considered during the meeting was reported out favorably, with the chair voting no on the resolutions and bills before the committee.

Transcript Highlights:

• This has been discussed for a long time, and we're extremely grateful for Auditor Ball and her staff
• work of KLC and the Kentucky auditor work of KLC and the Kentucky auditor office<00:11:57.839>
• want to thank the KLC and the auditors want to thank the KLC and the auditors office<00:12:18.519
• ball and uh and her grateful for auditor ball and uh and her staff<00:12:42.680> trying<00:12
• and so this would can't get an auditor and so this would allow<00:14:11.399> us<00:14:11.519>

Keywords: Meeting Start: 00:01 Attendance Roll Call: 00:04 HB 684 (Rep. Decker): 00:49 HB 71 (Rep. Duvall): 06:55 HB 290 (Rep. Wilson): 09:20 HB 555 (Rep. Freeland): 15:21 HB 160 (Rep. Witten): 16:30 HB 455 (Rep. Flannery): 22:04 Adjournment: 27:21, 958, all

Summary: The Senate Standing Committee on State and Local Government considered several bills. House Bill 684, an elections “continuous improvement” measure, drew the most discussion. Rep. Jennifer Decker said it was based on issues identified during the 2024 election cycle and included changes to absentee voting for primary caregivers and other election administration updates. Senators focused on a committee substitute removing credit and debit cards as a second form of ID for provisional ballots; Decker said local election workers had reported people trying to use cards with no photo ID, and she did not want financial institutions determining voter eligibility. The bill also clarified that certain ballots could be issued by hand or by mail. It passed 9-1, with some members voting no or passing because they wanted more time to consider the ID change. House Bill 71, requested by the Kentucky Public Pension Authority, would reorganize KPPA by creating an Office of Financial Management and moving the CFO into an executive director-level role. Testimony said the change was structural only, with no impact on system funding and minimal short-term costs. It passed unanimously, 11-0. House Bill 290, by Rep. Nick Wilson, would allow county law libraries to use funds for online legal research resources, computers, and internet-related equipment. Supporters said libraries had money but were limited to buying books; the bill passed unanimously, with the chair noting it would let libraries use existing funds more effectively. House Bill 555, as amended by committee substitute, addressed audit and reporting requirements for small cities. Supporters from the Kentucky League of Cities and the Auditor’s Office said many small cities struggle to find certified CPAs, and the bill would raise the threshold for less frequent audits, expand the exemption threshold, allow the Auditor’s Office to contract to perform audits, and clarify that state-fund withholding for noncompliance would not apply to contractual or utility payments. It passed 10-1, and the title amendment was adopted. House Bill 160, with a committee substitute, would regulate manufactured housing and local zoning by establishing standards that supporters said were needed to prevent discrimination against modern manufactured homes. Several senators expressed concern about state interference in local zoning, while others supported the bill as a housing access measure; it passed 10-1. Finally, House Bill 455 would create a Unit of Election Investigations and Security in the Attorney General’s Office to handle election-crime allegation review, the voter fraud hotline, prosecutorial referrals, and legislative oversight. Supporters said it codified existing practices and would not require new funding, but opponents objected to placing the hotline in a partisan office. The bill passed 9-1 with one pass, and the committee adjourned after reporting favorable action on the bills.

Transcript Highlights:

• The county auditor is then responsible for training and certifying municipal clerks on their election
• Finally, if a record cannot be verified through DPS or the SSA, it is reviewed by the county auditor.
• The county auditor must either complete registrations for first-time voters that are registering by mail
• This report also requires identifying the total number of individuals for whom the county auditor does
• Back to the 2018 Office of the Legislative Auditor report, as well as the current process that the OLA

Transcript Highlights:

• Um, it would provide similar grants to secretary of state-elect, state auditor-elect, and state attorney
• Provides up to $50,000 to each of the state auditor and secretary of state and $75,000 to the attorney
• - secretary of state elect, state auditor- secretary of state elect, state auditor- elect,<00:02:
• <00:02:37.840> to<00:02:38.000> the<00:02:38.560> state<00:02:38.800> auditor
• <00:02:39.200> and attorney up to the state auditor and attorney up to the state auditor and

Keywords: 1187, senate, all

Transcript Highlights:

• Thank you, Madam Auditor.
• As the auditor mentioned, my name is Paul Trevely.
• Thank you, Madam Auditor. Good afternoon, everyone.
• And now Steve LaSawkes, Executive Deputy Auditor. Thank you, Madam Auditor. Thank you, Mr.
• We do not have enforcement authority in the Office of the State Auditor.

Keywords: 995, all

Summary: The joint budget hearing opened the FY27 budget process with remarks from the Senate and House Ways and Means chairs, who described the fiscal outlook as challenging because of slow revenue growth, rising health care and other costs, and uncertainty from federal policy changes. Governor Healey and Secretary of Administration and Finance Matthew Gorzkowicz then presented House 2, a $62.8 billion budget that they said grows by about 1% and does not raise taxes or fees. They emphasized affordability, fiscal discipline, protection of core services, and continued investment in education, transportation, housing, child care, health care, and public safety. The administration also discussed a separate bill to delay and phase in certain federal tax-code changes from the so-called OB3 law, especially research and experimental expense provisions, to reduce immediate budget impacts and preserve competitiveness. A major portion of the hearing focused on education and municipal aid. The administration said House 2 provides about $7.6 billion for Chapter 70 aid, fully funds the final year of the Student Opportunity Act, increases special education circuit breaker funding, and raises rural school aid. Senators and representatives from both parties raised concerns that Chapter 70 and other aid formulas are not equitable for small, rural, and low-wealth communities and are not keeping pace with inflation, and several called for broader review of the formula and related funding streams. The governor and secretary said they are open to further discussion, pointed to additional support through rural aid, special education, transportation reimbursements, and minimum aid, and said total Student Opportunity Act investment would reach about $2.1 billion over the life of the law. Transportation, housing, and fair share spending were also central topics. The administration said fair share revenues are being used holistically, with education-heavy spending in the operating budget and transportation-heavy spending in the supplemental budget, and estimated the overall split to date at roughly 57% education and 43% transportation. They highlighted MBTA stabilization, regional transit authority support, microtransit, fare-free regional transit, and bridge and commuter rail investments, while noting the MBTA remains a major fiscal concern. On housing, the governor stressed production, permitting reform, ADUs, down-payment assistance, and support for public housing authorities, while lawmakers pressed for more funding for local housing authorities and for ways to address out-migration, energy costs, and affordability. The governor also said the administration will not withhold fire safety grants from communities over MBTA Communities Act noncompliance and will handle such issues case by case. No votes were taken at the hearing; it was an informational presentation and question-and-answer session.

Transcript Highlights:

• You could ask the State Auditor to do the audit and the technical evaluation, and that would take the
• One of the advantages to having the State Auditor do it is that they're reporting to you.
• As the auditor did mention, there are so many different options to move forward.
• , or outside technical evaluator. ...like RAND or some outside auditor or outside technical evaluator
• They can have the auditor do it. They can also bring in a third party.

Keywords: 987, senate, all

Transcript Highlights:

• One of the people that I talked to was the legislative auditor, and the legislative auditor actually
• One of the people that I talked to was the legislative auditor, and the legislative auditor actually
• One of the people that I talked to was the legislative auditor, and the legislative auditor actually
• One of the people that I talked to was the legislative auditor, and the legislative auditor actually
• One of the people that I talked to was the legislative auditor, and the legislative auditor actually

Keywords: 919, house, all

Summary: The committee took up Senate File 856, a bill to create a statewide Office of Inspector General to combat fraud. Representative Norris presented a delete-everything amendment that would keep most of the Senate bill but add more emphasis on fraud prevention, fully fund the office, avoid duplicating work already done by the BCA’s financial crimes division, and preserve subject-matter expertise by keeping some existing inspectors general in their agencies. He said the amendment would retain strong investigative powers, including subpoenas, while using the BCA for arrests, and he acknowledged his original version was likely too broad, so he planned to offer smaller amendments if needed. Chair Nash and other members challenged the DE on both process and substance. Nash said the amendment had not been shared with key stakeholders, noted that the Senate author had publicly distanced herself from it, and pointed to a governor’s office document saying the administration wanted a different approach than the Senate bill. He argued the Senate bill was a bipartisan, bicameral product and said the committee should be careful about accuracy and process. Representative Davis questioned Norris about the claim that the Senate bill was underfunded and about the governor’s role in selecting the inspector general, arguing that the governor should not have broad control over the office. Norris responded that the Senate bill’s fiscal note estimated roughly $12 million for the biennium, but the bill appropriated less than that amount, and he said the Constitution requires the governor to appoint the inspector general if the office is in the executive branch. He said the DE tried to preserve independence through a bipartisan advisory commission, Senate confirmation, a five-year term, restrictions on partisan activity, and removal only for cause with a public hearing. After debate from several members, the committee held a roll call and the DE failed on a 7-7 tie, so it was not adopted.

Transcript Highlights:

• I'm with the Office of the Legislative Auditor, and I was the manager of this evaluation.
• <00:01:34.000> Rodriguez deputy auditor Joey Mson Rodriguez deputy auditor Joey Mson Rodriguez
• deputy auditor, uh, you may proceed. deputy auditor, uh, you may proceed.
• Um, Miss >> Um, thank you, Deputy Auditor.
• I want to thank the legislative auditors, um, staff, um, and the three of you.

Keywords: 919, house, all

Summary: The Legislative Audit Commission heard a presentation from the Office of the Legislative Auditor on its evaluation of the Office of Ombuds for Families (OBFF). Auditors said the office remains important because of Minnesota’s long history of racial disparities in the child protection system, but they found major problems with how OBFF is operating. The report said OBFF’s statutory duties are very broad compared with its small staff and budget, and that the ombuds persons are not carrying out all required duties while spending substantial time on activities not required by law. Auditors also said the office’s recent impact is unclear and that its complaint-handling work has significant deficiencies, including poor documentation, limited data, few policies, inconsistent handling, and failure to follow best practices. The presentation also focused on oversight and accountability. Auditors said OBFF’s three community boards, which are supposed to appoint and oversee the ombuds persons, have not provided adequate oversight: meeting requirements were often not met, attendance was low, and there was little evidence the boards were fulfilling their statutory duties. The auditors further said OBFF’s unusual structure, with no single designated leader and shared authority among the three ombuds persons, creates unclear lines of accountability. Their recommendations included revising OBFF’s statutory duties to better match legislative goals and resources, improving complaint-handling practices, strengthening board oversight, and establishing a single leadership position for the office. Members asked follow-up questions about racial disproportionality in out-of-home care, spending on nonrequired activities, and whether the ombuds persons met statutory qualification requirements. Auditors referred members to the report for more detailed data, said the office does not track expenditures by function, and noted that while the ombuds persons have relevant professional backgrounds, the evaluation raised concerns about whether they are meeting their duties as expected. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• I just wanted to talk about one item on this package, and it's the auditors.
• I just wanted to talk about one item on this package, and it's the auditors.
• I just wanted to talk about one item on this package, and it's the auditors.
• I just wanted to talk about one item on this package, and it's the auditors.
• I just wanted to talk about one item on this package, and it's the auditors.

Keywords: 919, house, all

Summary: The committee took up House File 2437, the governor’s proposed tax bill, and first adopted the A25-Z42 amendment to put the bill in the desired shape. Commissioner Paul Marquardt of the Department of Revenue then presented the bill as part of Governor Walz and Lieutenant Governor Flanagan’s budget, describing it as a response to budget pressures that would make the tax system more fair and stable while supporting economic development and jobs. Marquardt walked through the bill’s major provisions. These included sustainable aviation fuel policy, repeal of K-12 education credit assignment, elimination of the political contribution refund, expansion of the research and development credit, short-line railroad infrastructure modernization, changes to the state airport fund levy, replacement of attachments and appearances with distribution systems, a narrow personal property tax exception for low-income housing tenants, reduced aquatic invasive species aid, and a 34% reduction in PILT payments. He then focused on the sales tax article, saying it would lower the statewide rate by 0.75% while expanding the base to selected professional services such as accounting, banking, brokerage, and legal services, with business-to-business transactions exempt. He said the proposal would be effective for sales and purchases after September 30, 2025, and estimated a first-year rate-cut impact of about $99 million versus $215 million from the service expansion, while arguing that most households would see a net tax cut. He also noted other changes such as landlord penalty adjustments, a 30% reduction in sustainable aviation fuel incentive payments, repeal of local government cannabis aid, and repeal of the tax filing modernization account. Public testimony began with Kyle Playford of the Financial Planning Association of Minnesota, who strongly opposed the proposed sales tax on professional services, especially financial planning. He argued that financial planning is an essential service for retirement, investment, and long-term financial security, and said the tax would raise costs for consumers, reduce access for middle-class families, small business owners, and retirees, and put Minnesota firms at a competitive disadvantage. The chair then indicated that additional public testimony would continue before member questions.

Transcript Highlights:

• And I review it using my... legislative auditor. Thank you for legislative auditor.
• I think there are uh two things auditor.
• or state auditor.
• or state auditor.
• <00:40:21.200> for heard from the legislative auditor for heard from the legislative auditor

Keywords: 919, house, all

Summary: The committee approved the October 15, 2025 minutes and then held a broader discussion on current challenges with data retention and government transparency. Judy Randall of the Office of the Legislative Auditor said historical data is essential for post-audits, which often look back three to five years, and that retention decisions must balance audit needs with the burden of separating public and nonpublic data. She described the records-retention panel process as informal and largely based on individual judgment, noting she had objected to a proposed 60-day email retention period and generally uses a three-year guideline, though she said that standard is not grounded in a formal rule. Members discussed whether auditing standards should set retention periods, with Randall saying auditing is a good starting point but other offices, including the attorney general, also have needs, and that some agency discretion is unavoidable because of the gray area between official records and non-records. Representative Elkins raised the related principle of data minimization, arguing that government should not keep data longer than needed and citing a University of Minnesota legacy data warehouse breach as an example of the risks of retaining unnecessary sensitive information. Randall agreed that data no longer needed is a liability and said her office purges workpapers after five years. Representative Scott pressed whether three years is enough for fraud investigations and financial records; Randall responded that a reasonableness standard is needed and that longer retention can produce diminishing returns, though she said she would follow up on whether financial records should be treated differently. Tanya Tacker of the Rum River Special Education Cooperative testified in support of updating Minnesota’s data-retention laws for schools. She said districts want to protect student information and maintain transparency, but the current general retention schedule dates to 1985 and 2000 and does not reflect digital records, modern systems, or the volume of special education data. She urged modernizing the schedule, clarifying what must be kept in paper versus digitized form, aligning state rules with IDEA and other federal requirements, and providing practical guidance and tools. Members praised the specificity of her recommendations. Dr. BB Newman testified that retention failures in St. Anthony Village have made it difficult to obtain routine municipal and police data, with records delayed, missing, or inconsistently produced and no clear explanation of what systems were searched or whether records were destroyed. Newman argued these gaps undermine statutory access rights and force residents into costly litigation, and recommended stronger retention auditing, documentation of destruction, mandatory disclosure of systems searched, and consequences for noncompliance. In response to questions, Senate counsel said there is generally no direct penalty, but affected parties may seek mandamus, Data Practices Act claims, or informal mediation/opinions from the Data Practices Office. The discussion closed with calls for clearer standards and possible legislative updates to improve compliance and transparency.