Transcript Highlights:

• But before I close and allow for, I suppose, allow for questions before moving on to the next regulation
• Well, I will say, Kansas statutory construction, I mean, they are often applied to regulations as well
• Is there any type of regulation?
• The regulations allowed them to do it when that occurred.
• The regulations allowed them to do it when that occurred.

Committee: House Joint Committee on Administrative Rules

Transcript Highlights:

• The law and its associated regulations specify how Ecology should carry out cleanups and work with communities
• The new regulation for tribal engagement requires Ecology to engage tribes separately and in addition
• The new regulation requires Ecology to provide tribes with timely information, effective communication
• Regarding tribal engagement, as was mentioned by the auditor, as part of both our regulations and our
• As part of both our regulations and our guidelines, we set out the kind of timing early and up front

Committee: Joint JLARC I-900 Subcommittee for SAO Performance Audits

Summary: The I-900 Subcommittee held a public hearing on the State Auditor’s performance audit, Community Engagement During Contaminated Site Cleanups. Auditors said Ecology directly conducts or supervises cleanup at only about 8% of active contaminated sites, while most sites are handled by third parties or have no cleanup plan yet. The audit found that Ecology generally met legal requirements at the sites it oversees, but community engagement varied, was not consistently tailored to local needs, and lacked a systematic “lessons learned” process. Auditors also found inconsistent coordination between Ecology and the Department of Health, and limited guidance for staff on when to collaborate. Tribal feedback was mixed: some tribes said engagement met their needs, while others wanted earlier and more tailored outreach. Committee members pressed the auditors on why many third-party-managed sites appeared to have little or no public involvement, and whether Ecology has broader authority to require public engagement and oversight. The auditors responded that their review focused on community engagement requirements, not the full cleanup permitting process, and said the gap they identified was the lack of required oversight for third-party engagement. Members also asked about tribal engagement, exposure scenarios, and the meaning of “active” and “planless” sites. Ecology officials said they agreed with many of the findings, were already taking steps to improve community research, lessons-learned reviews, tribal guidance, and coordination with Health, and had recently launched a public email notification system for site status changes. They also said some recommendations would require additional funding or staff resources. Public testimony supported stronger community engagement and more resources for Ecology. Washington Conservation Action said contaminated sites disproportionately affect communities of color and low-income communities, praised the audit for highlighting the need for better site-specific engagement, and urged full funding for MTCA-related work. The hearing ended with the chair inviting written comments and adjourning the meeting.

Transcript Highlights:

• And regulation if we move this bill, all for what? That's it. Oh, for what?
• ...where over-regulation and failure to allow rate increases have destroyed the private market and led
• create an unintended situation where the state Department of Insurance is unable to regulate and react
• Yes, TDLR brought forth a problem with their combative sports area of jurisdiction and regulation.
• I'm the Director of the Field Inspections Division for the Texas Department of Licensing and Regulation

Bills: SB 21 , SB21 , SB72 , SB140 , SB262 , SB370 , SB372 , SB495 , SB627 , SB703 , SB764 , SB842

Committee: Senate Business & Commerce

Transcript Highlights:

• have learned many things about safety measures, and one thing I have learned is that this state regulates
• My name is Morgan Judge and I am the Senior Director of Compliance Regulation and Policy at Ever Driven
• Transit buses worldwide must comply with anti-pinch regulations and past testing conformance.
• Mazer believes it is essential that any future regulation in Massachusetts provide a clear, enforceable
• The regulation most used for anti-drag is EN 14752, and the test specimen is a 0.8-millimeter rubber

Bills: S2743 , S2861 , S3021

Committee: Joint Joint Committee on Public Safety and Homeland Security

Keywords: domestic violence, police training, suspicious deaths, homicide investigation, victim support, school bus safety, commission, student safety, operator training, safety standards, Legislative oversight, public health, student transportation, school bus, school pupil transportation, pupil transport, child passenger safety, school van, transportation contractor, motor vehicle safety

Transcript Highlights:

• All right, members, the Committee on Regulated Industries will now come to order.
• These illegal slot operations fuel secondary criminal activity, undermine Florida's regulated gaming
• Of course, vacation rentals are regulated by DBPR.
• Of course, vacation rentals are regulated by DBPR.
• I drafted this amendment alongside the Regulated Industries staff, and I'd like to take up that first

Bills: S0530 , S0658 , S0608 , S1708 , S0680 , S0980 , S0204

Committee: Senate Regulated Industries

Summary: The Committee on Regulated Industries met and reported several bills favorably. SB 530 on state lotteries, presented by Senator Pizzo, made technical changes to the Department of Lottery’s powers and duties, clarified definitions, and allowed more flexibility to purchase rather than lease machines; two technical amendments were adopted before the bill passed. SB 204, also presented by Senator Bradley, increased penalties for illegal slot machine operations to a third-degree felony and created a process for veteran service organizations to seek binding declaratory statements from the Gaming Commission about whether a machine is lawful; the bill was reported favorably after testimony from supporters and a veteran organization expressing concern about clarity and good-faith cooperation. SB 658 and SB 608 were combined into a proposed committee substitute on water safety for rental and vacation properties, requiring certain pool or water safety devices and adding enforcement provisions through DBPR; the merged bill was reported favorably after strong testimony emphasizing child drowning statistics and support from local residents and industry representatives. SB 980, as amended, created the Florida Agegate Act to restrict advertising, promotion, and display of non-FDA-approved nicotine dispensing devices around minors, with escalating penalties and inspection authority; members discussed concerns about illegal products and enforcement, and the bill was reported favorably. SB 1708 on veterinary licensure by endorsement removed a three-year recent practice requirement for out-of-state veterinarians while keeping other competency standards, and it was reported favorably with support from several animal and veterinary-related groups. SB 680, as amended, addressed double taxation of electricity used at EV charging stations by creating a sales tax exemption for separately metered electricity transferred to consumers, and it was also reported favorably. The committee also noted additional support forms for the water safety bill and adjourned after miscellaneous remarks and announcements.

Transcript Highlights:

• QUICKLY I WANTED OF A QUICK OVERVIEW OF THE OFFICE OF INSURANCE REGULATION AND WHAT IT DOES VERSUS THE
• GENERALLY SPEAKING OFFICE OF INSURANCE REGULATION HANDLES INSURANCE AND INSURANCE IDENTITIES AND EVERYTHING
• THEY HAVE AND FINANCIAL SOLVENCY TO PAY ON THE OTHER HAND AT THE DEPARTMENT OF FINANCIAL SERVICES REGULATES
• WHICH BRINGS FORWARD A NUMBER OF NEW TOOLS AND MEASURES TO THE OFFICE OF INSURANCE REGULATION TO HOLD
• THAT IS THE MARKETPLACE THAT IS THE MOST REGULATED.

Transcript Highlights:

• </c> uh does monitor and regulate uh FFLs. uh does monitor and regulate uh FFLs.
• </c> reasonably regulated. reasonably regulated.
• So, current state of the law is that's not something that's regulated; they don't regulate color and
• ,</c><02:22:05.600><c> that</c> not something that's regulated, that not something that's regulated,
• ><c> and</c><02:22:08.080><c> things</c> they don't regulate color and things they don't regulate color

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• They're just implementing; they're not coming up with their own regulations.
• I just don't like over-regulation of business. One more rule on business, large or small.
• I just hate regulations on business. Thank you. I appreciate what you're trying to do, though.
• for when they're approving or rejecting proposed regulations.
• “Regulation of speech, no matter how ugly and inherent it is. Thank you. Thank you.

Summary: The committee heard several bills, with most of the discussion focused on public safety, consumer protection, and youth harms. AB 1557 by Assemblymember Papin would clarify e-bike motor power limits and set lower speed-related standards for Class 1 and 2 e-bikes. Supporters, including the California Police Chiefs Association, cities, the California Medical Association, and the American Academy of Pediatrics, argued the bill would reduce severe injuries and deaths among young riders. Opponents from People for Bikes warned it could conflict with federal law, create legal uncertainty, and disrupt the bicycle market. The author and committee members acknowledged industry concerns and urged continued work on the bill. AB 1770 by Assemblymember Garcia would place large health care service plan arbitration under California Department of Justice oversight and require compliance with the California Arbitration Act. Supporters described cases where patients were forced into private arbitration with little transparency or accountability, arguing the bill would make the process fairer and more neutral. Kaiser Permanente and the Civil Justice Association of California said they were still reviewing amendments and had not settled on a final position. Committee members expressed sympathy for the personal stories shared and encouraged continued negotiations. The committee also heard AB 2075, which would require fire suppression equipment to be kept closer at hand during brush work, and AB 1864, which would require screening of gene synthesis orders to prevent misuse for bioterrorism. AB 2075 was presented as a response to a Ventura County wildfire, with support from the Ventura County District Attorney’s office and no opposition heard. AB 1864 was backed by the author, Stanford biosecurity expert Dr. Milana Trout, and Encode AI, while Biocom opposed unless amended and California Life Sciences remained neutral. Members discussed implementation details and the role of the Department of Public Health. A major portion of the hearing was devoted to AB 1709, which would set a minimum age of 16 for social media accounts on platforms with harmful features and create an e-safety advisory commission. Supporters, including youth advocates, parents, medical groups, and Common Sense Media, said addictive design features are harming children’s mental health and safety. Opponents, including EFF, the ACLU, TechNet, and other civil liberties and industry groups, argued the bill is overbroad, raises First Amendment and privacy concerns, and could limit access to important online communities. Despite those objections, the bill was moved forward after committee discussion, with members emphasizing the need to protect children while continuing to work on carveouts and implementation details.

Transcript Highlights:

• Most of our neighboring states have moved away from monopoly-era regulations.
• The handout in your packet regulations.
• We regulate telecom as an essential service for a reason.
• </c><00:32:35.440><c> Thank</c> regulation into the 21st century.
• We regulate telecom as an legislation.

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• the use of AI developing clinical decision support systems is evolving faster than our laws and regulations
• Children, parents, researchers, doctors, regulators, and lawmakers alike have clearly delineated the
• But our pleas for social media platforms to self-regulate have gone unanswered.
• This is a chatbot regulation bill, and I know Mr.
• Last year, Senator Padilla passed a first-in-the-country bill to regulate how companion AI interacts

Summary: The committee heard AB 1979, which would limit the use of AI in health care by requiring licensed professionals to retain final clinical judgment, prohibiting automated systems from directing unlicensed individuals to perform licensed clinical functions, and clarifying medical-record privacy rules for direct-to-consumer health chatbots. Supporters, including nurses and labor groups, said the bill preserves patient safety and keeps care decisions in human hands. Hospital and industry groups opposed unless amended, arguing the bill could create compliance burdens and interfere with training and legitimate AI-assisted care. The bill was approved 6-1 and placed on call. Members then considered AB 2624, which would expand California’s Safe at Home confidentiality program to immigrant service providers, employees, and volunteers facing harassment or doxing. The author and supporters described threats, stalking, and online targeting of immigrant advocates and said the bill would let them use substitute addresses to protect their safety. Opposition focused mainly on concerns about the bill’s legal enforcement language, though the author said it mirrors existing Safe at Home provisions and does not create a new private right of action. The measure passed 4-1 and was placed on call. AB 2103 would make Engaged California a permanent statewide public engagement program. The author and the Office of Data and Innovation said it is meant to broaden civic participation through structured deliberation and transparent publication of results. Some members raised concerns about partisan balance and topic selection, while supporters emphasized the need to reach Californians who do not typically participate in hearings. The bill passed 6-0 and was placed on call. The committee also heard AB 2, a social media accountability bill for harms to children and teens, and AB 883, which would expand privacy protections and shorten data-broker deletion timelines for elected officials and judges; both drew support and opposition, were approved on committee votes, and placed on call. Later, the committee began AB 2023, a chatbot safety bill for children that would require age verification, safety audits, default protections, and limits on ads and data sharing; testimony was strongly supportive from child-safety advocates, while industry groups raised concerns about vague standards, audits, and liability.

Transcript Highlights:

• As such, I want to provide a brief overview of some of the laws, regulations, and procedures in place
• As such, I want to provide a brief overview of some of the laws, regulations, and procedures in place
• Rights Regulations Package, which became effective October 1, 2018.
• Our RCFEs must also train their staff on residents' rights outlined in our regulations, which require
• CHCQ licenses and certifies... ...and regulations.

Transcript Highlights:

• As such, I want to provide a brief overview of some of the laws, regulations, and procedures in place
• , which were the RCFE Personal Rights Regulations Package, which became effective October 1, 2018.
• Our RCFEs must also train their staff on residents' rights outlined in our regulations, which require
• And our regulations specifically require facilities to assign rooms according to a resident's gender
• And regulations.

Summary: The committee held an inaugural hearing on the health care and support needs of older LGBTQ Californians, with members and witnesses emphasizing that this population has made major gains in rights and longevity but still faces discrimination, isolation, economic insecurity, and gaps in services. Opening remarks highlighted concerns about older LGBTQ people entering nursing homes and feeling forced back into the closet, as well as the growing number of Californians aging with HIV. The hearing was structured into three panels, with public testimony considered if time allowed. The first panel focused on the overall health and support landscape. Justice in Aging described survey findings showing discrimination, poor health, difficulty with errands, and economic insecurity among older LGBTQ Californians, and warned that federal Medicaid cuts and broader federal actions could worsen access to home- and community-based services and culturally competent care. CalHHS and the Department of Aging described the Master Plan for Aging, the first statewide LGBTQIA older adult survey, and efforts to support gender-affirming care, PACE, care management, and community supports. Witnesses stressed the need for better outreach, data collection, and a “no wrong door” approach so people can more easily find and access services. The chair and senators pressed the departments on how survey findings are being translated into concrete action and how state agencies are coordinating across silos. The second panel addressed health care for seniors living with HIV. A longtime survivor described severe financial and benefits consequences from a federal clawback and argued that California needs stronger legal, navigation, and housing supports, including HIV-specific housing funding. The Department of Aging reported on implementation of SB 258, saying it has educated area agencies on aging, added HIV data to planning tools, and found that 20 of 33 area agencies identified HIV as a target population, with 16 including specific strategies. The Office of AIDS outlined Project Cornerstone, Ryan White, ADAP, HOPWA, a Medi-Cal waiver, and PrEP-AP, noting these programs serve thousands of older clients and that local case managers are expected to coordinate whole-person care. Case managers and advocates said housing, food, transportation, mental health, and premium assistance remain major needs, and senators asked whether future ADAP rebate funds could support navigation, housing, and other gap-filling services. The final panel turned to transgender, gender nonconforming, and intersex seniors. The Department of Social Services described protections under SB 219, including nondiscrimination notices, resident rights postings, required records for preferred names and pronouns, and annual inspections of licensed facilities. The Department of Public Health and a TransLatin Coalition leader were introduced to discuss additional supports for TGI seniors. Across the hearing, members repeatedly returned to the themes of visibility, coordination, and implementation, asking departments to follow up on how they will better connect services, improve outreach, and ensure that existing laws and programs are actually reaching the people they are meant to serve.

Transcript Highlights:

• I mean, we were very excited about this bill as being a very timely and necessary way to regulate the
• There's no regulation of data centers whatsoever, and it's just the wild west.
• Thank you, as far as how are you using the term regulation, I guess, what regulations?
• You’re obviously making multiple changes to land growth regulations and rules across the state.
• in act relating to land use and development regulations.

Summary: The Senate convened with opening prayer, the Pledge of Allegiance, and several member introductions of guests and staff. The chamber then took up returning messages from the House and acted on several bills, including transportation facility designations (SB 628), affordable housing/Live Local Act changes (HB 1389), utility services (HB 1451), education (HB 1279 substituted for SB 7038), data centers (SB 484), and land use/development regulations (SB 208/HB 399). Several other measures were temporarily postponed, including education, emergency services, and environmental rule ratification bills. On SB 628, the Senate concurred in the House amendment and passed the bill 31-4. On the affordable housing bill, senators discussed the fourth iteration of the Live Local Act, including a new provision allowing certain affordable housing on religious institution property, removal of accessory dwelling unit language, and changes to tax exemption and expiration provisions; the Senate concurred in the House amendment and passed the bill 35-0. On the utility services bill, the House amendment shortened the surcharge phase-out timeline and advanced reporting dates; the Senate concurred and passed the bill 30-6. The education package was substituted with the House companion, amended to include agreed-upon provisions on student health and safety, early learning, math, virtual instruction, career and technical education, school choice, accountability, tuition protections, and financial aid, and passed 36-1. The data centers bill drew extensive debate over transparency and ratepayer protections. Senators questioned the removal of the Senate’s nondisclosure agreement prohibition, the 12-month confidentiality period, and whether costs could be shifted to residential and commercial customers. Supporters said the amendment strengthened ratepayer protections and maintained local land-use authority, while critics objected to the loss of transparency and the possibility of local NDAs. After debate, the Senate concurred in the House amendment and passed the bill 31-6. The land use and development bill generated the most contentious discussion. Amendments addressed a Fontainebleau/Miami Beach resort water park issue, a sunset provision, and a major rural boundary/property rights proposal affecting counties such as Orange and Seminole. Senators debated whether the rural boundary language protected property rights or undermined local planning and environmental safeguards, with concerns raised about takings, county liability, and the use of an Attorney General opinion. The transcript cuts off during extended debate on that amendment, so no final vote on the land use bill is shown in the excerpt.

Transcript Highlights:

• And quite frankly, while I would have many arguments with the regulators, I looked at them as a variable
• And quite frankly, while I would have many arguments with the regulators, I looked at them as a variable
• And I would tell you that I'm not one who introduces any kind of additional rule, regulation, or hurdle
• FinCEN requires know-your-customer guidelines and regulations, as well as...
• I would say money transmitters, digital money transmissions, are one of the most regulated industries

Committee: House Financial Institutions

Summary: The committee first met in executive session and voted do pass on House Bill 2423 and House Bill 2473, each passing 13-0. It then moved to public hearing on House Joint Resolution 159, which would modernize the Missouri State Treasurer’s investment authority by allowing investment in high-rated municipal securities and other prudent instruments, subject to voter approval. Representative Thompson and Treasurer Vivek Malik argued the change would update outdated constitutional limits, improve returns, and still preserve safeguards through written investment policies, asset allocation plans, and legislative oversight. Some members questioned the seven-year maturity limit and the meaning of “reasonable and prudent” investments, while supporters said the proposal remained conservative and was intended to expand options without removing oversight. No vote was taken on the resolution in the hearing. The committee then heard House Bill 2412, a foreign remittance bill sponsored by Representative Keithley. The bill would require money transmitters to verify the lawful immigration status of senders of foreign remittances, keep records for several years, and face penalties for noncompliance. Keithley and Treasurer Malik said the measure was meant to address illegal immigration, create a paper trail for enforcement, and reduce links to cartel activity and money laundering. Opponents from Remitly, the ACLU of Missouri, the Immigrant Justice Collaborative, and the Missouri Money Services Roundtable argued the bill was overbroad, would burden lawful users and businesses, raise privacy and data-security concerns, and could be difficult to implement because the bill did not clearly specify what documents would be required or how verification would work. Members also raised questions about interaction with federal banking laws, the Division of Finance’s role, and the 25% penalty. The hearing on HB 2412 closed without action. Finally, the committee heard House Bill 2636, which would protect first-position lien status in certain mortgage modification situations by stating that amendments to a first deed of trust do not change its priority. Representative Owen and banking industry witnesses said the bill would reduce uncertainty and avoid repeated subordination agreements, and no opposition was presented. The committee then heard House Bill 2116, also by Representative Owen, which would limit Missouri’s 529 tax deduction to contributions made to Missouri’s own 529 plan rather than any state plan. Owen and Treasurer Malik said the change would keep tax incentives in-state, strengthen Missouri’s plan, and reduce the flow of deductions to out-of-state programs; members asked about savings, plan performance, and whether families would lose options. The hearing continued with testimony in support, and no vote was taken during the portion provided.

Transcript Highlights:

• OTPs are already heavily regulated at the federal level, and states layering additional regulations can
• under 42 CFR Part 8, as the state promulgates permanent regulations.
• Regulated.
• Buprenorphine is regulated somewhat differently in that.
• Methadone instead of just buprenorphine if we lose SNAP regulations.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• And that every single one of these regulations, whether it's methy baby regulations, whether it's, you
• And that every single one of these regulations, whether it's methy baby regulations, whether it's, you
• And that every single one of these regulations, whether it's methy baby regulations, whether it's, you
• and regulations and mandate and regulate and regulations and all<02:17:19.480><c> those</c><02:17:19.880
• It's regulation of lobbyists.

Transcript Highlights:

• </c> regulations will affect that. regulations will affect that.
• ><c> in</c><03:15:48.920><c> one</c> Putting all the regulations in one Putting all the regulations in
• </c><03:16:20.640><c> that</c> both great examples of regulations that both great examples of regulations
• </c> in regulation. in regulation.
• It was how my licenser interpreted and decided to enforce rule three. regulations. regulations.

Committee: Senate Health and Human Services

Transcript Highlights:

• Now, your bill goes beyond federal regulations. It requires everyone to be verified using SAVE.
• those regulations change.
• We ask for your support and additional guidance and regulations. Thank you. Thanks. Thank you.
• There's comprehensive regulation. There's housing policy.
• There's a comprehensive regulation. There's housing policy.

Committee: House Transportation

Transcript Highlights:

• postsecondary education under KRS 164.000 N2 and then also pregated underneath an administrative regulation
• </c> underneath an administrative regulation underneath an administrative regulation 13<00:16:25.560>
• lead to enrollment increases, and that was under KRS 164.000 N2 and, underneath, Administrative Regulation
• And that was under KRS 164.000 N2 and, underneath, Administrative Regulation 13.2.1 160.
• Particularly in some of the statutes and administrative regulations that we have seen that we are getting

Summary: The House Standing Committee on Postsecondary Education met to consider House Bill 4, relating to postsecondary education. Before taking up the bill, the committee adopted a committee substitute. The substitute removed language creating a private right of action and immunity provisions, added a definition of “indoctrinate,” revised language tied to the Attorney General, and added a new section directing the Auditor of Public Accounts to review compliance every four years. If an institution is found out of compliance, it would have 180 days to cure the issue or become ineligible for formula funding increases in the following fiscal year, with an opportunity to petition the Attorney General. The substitute also added language barring licensing authorities from requiring diversity, equity, and inclusion training as a condition of initial or renewal licensure. Representative Decker presented the bill as an effort to end what she described as unconstitutional DEI practices in Kentucky’s postsecondary system and to refocus colleges on academic instruction, equal opportunity, and affordability. She argued that DEI offices and initiatives have cost taxpayers heavily and have not improved enrollment outcomes for low-income and underrepresented students. Michael Frasier, testifying in support, framed the bill as an equal-protection measure rather than simply an anti-DEI bill, saying it targets preferential treatment and discrimination while exempting traditional civil-rights compliance offices such as Title IX, disability, and other anti-discrimination functions. He also argued that the bill aligns with recent U.S. Supreme Court precedent and that Kentucky should shift toward socioeconomic-based approaches. Several members raised concerns about the bill’s assumptions and effects. Representative Willner questioned the claim that DEI initiatives caused enrollment declines and asked why the state would not make such programs more inclusive instead of eliminating them. Representative Stalker argued that the bill ignored decades of exclusion in higher education and asked what would replace DEI efforts aimed at closing achievement gaps and preventing brain drain. Supporters responded that the bill addresses unconstitutional preferences and that the state should move toward equal treatment and socioeconomic factors rather than race-based criteria. After discussion, the committee substitute was adopted, and the committee continued consideration of House Bill 4.

Transcript Highlights:

• I don't think we'll have compliance issues because, again, you guys have federal regulators breathing
• you have all the kind Federal Regulators you have all the kind of<00:52:45.160><c> regulators</c><00
• breathing down your necks of regulators breathing down your necks if<00:52:47.280><c> you</c><00:52:
• It's so heavily regulated. It's safe.
• it so the any ability to to regulate it so the with<00:58:53.359><c> the</c><00:58:53.839><c> which<

Summary: The committee heard a budget presentation from New Hampshire Lottery Director Charlie McIntyre and CFO Jim Durus. McIntyre said the Lottery has more than tripled its return to the Education Trust Fund since 2011, from $62 million to $207 million in FY 24, while keeping expenses relatively flat over time. He explained that the Lottery operates like a business, is heavily audited, and that the governor’s budget raises the FY 26-27 revenue estimate to $185 million, up about $12 million annually from prior estimates. He attributed FY 24’s unusually strong results to record Powerball sales driven by a spike in billion-dollar jackpots tied to higher interest rates, and said scratch tickets still make up most gross sales, though Powerball is the highest-margin product. Members questioned the Lottery about the difference between gross revenue and profit, the steep rise in operating expenses, and the reasons for requested budget increases. McIntyre said the main drivers were payroll, benefits, advertising, added regulatory responsibilities from expanded gaming, and a new Salesforce customer-tracking system. He also described requested capital needs, including an outdated security system, building access and ADA improvements, and upgrades to the front office for employee safety. He said the security system is still running on an old Windows 7-based setup and that the requested upgrade would modernize cameras and add redundancy. The discussion also covered staffing and gaming expansion. McIntyre said the Lottery has 84 employees including three commissioners, with 13 funded vacancies, and that it plans to fill positions as two new gaming rooms come online in Rochester and Derry. He said the Lottery’s revenue estimates were revised upward because sports betting in Massachusetts had less impact than expected and historic horse racing machines have been more profitable than forecast. He also explained the governor’s proposal to shift historic horse racing toward slot-style machines, saying the physical machines would look largely the same but the content and math would change, and that the state’s revenue share would increase under the proposal. No votes were taken; the committee mainly asked questions and received explanations about the Lottery’s budget and revenue assumptions.