Transcript Highlights:

• office overpayments, or duplicate invoice payments.
• They approve the payments.
• Most vendors are paid under net 30 payment terms.
• We also have vendors who have ACH payments.
• payment into two.

Summary: The committee met to receive a detailed financial operations presentation from the South Carolina Vocational Rehabilitation (VR) agency, with staff walking members through funding sources, budgeting, accounts receivable, accounts payable, and grants management. Sabrina Walker explained VR’s blended funding structure, including federal grants, state appropriations, program income, and interagency contracts, and emphasized that state funds are essential to meeting the federal match and maintenance-of-effort requirements. Members asked repeatedly about transparency, audit controls, and the risk that state cuts could reduce federal drawdowns; staff responded that all reports reconcile back to the SCEIS accounting system, are subject to state audits and internal reviews, and that even modest state reductions could significantly reduce total available funding. The committee also discussed pre-employment transition services for students with disabilities, with staff confirming services are offered through school districts, charters, and private schools, and that contracts are monitored for performance and compliance. The presentation then shifted to budgeting and internal controls. Walker described a zero-based departmental budgeting process, monthly monitoring reports, contingency reserves for unexpected expenses, and a formal annual cycle that culminates in board approval. Members asked about facilities tracking, culture, and how the agency maintains accountability; staff said facilities staff inspect buildings and equipment, supervisors justify line-item requests, and the process has become smoother over time as departments learned the system. Cynthia Johnson followed with an accounts receivable overview, describing invoicing, receipting, aging, customer verification, year-end reporting, and the use of cross-training, shared email inboxes, and spreadsheets as checks and balances. She also explained work training center billing, interdepartmental transfers, and the revolving fund used to issue consumer checks more quickly than standard vendor payments. Olivia Perez presented accounts payable operations, including invoice processing through SCEIS and OnBase, the three-way match, travel reimbursements, revolving fund checks, State Treasury Office interactions, and handling of reversals, rejections, and levy notices. She reported that AP processed 67,723 SCEIS payments, 13,670 case management system invoices, 3,379 travel reimbursements, and 15,693 revolving fund checks in fiscal year 2025, with only 70 payment rejections. The final portion of the meeting covered Grants and Funds Management, where Walker explained federal reporting, drawdowns, payroll allocation, asset tracking, lease and IT contract reviews, cost allocation, and closing packages. She noted upcoming system changes such as S/4HANA, Workiva, and SC Pro, but said the agency is receiving training and feedback opportunities. No formal votes or legislative actions were taken during the presentation portion beyond approval of the prior minutes and a brief recess.

Transcript Highlights:

• Um, modernizing payments.
• Um, modernizing payments.
• Um modernizing payments. We've had side. Um modernizing payments.
• </c> rules around those payment stable coins. rules around those payment stable coins.
• They can use it for payments. They don't care what the payments are done for.

Summary: The commission met to review stable tokens, real-world asset tokenization, and blockchain-based trust, approved the agenda and December 12 minutes, and heard a presentation from Anchorage Digital after postponing a planned Bitco presentation because of its IPO quiet period. Anchorage’s Melinda Delos, Joe Mioli, and Kevin Wasaki introduced the firm, describing it as a global digital assets platform and the first crypto-native institution in the U.S. to receive a federal banking charter. They said their approach emphasizes security, regulated custody and trading services, and responsible innovation for institutional clients, banks, states, and sovereigns. The presentation focused on post-Genius Act momentum in the stablecoin market. Anchorage said the law provided regulatory clarity and helped spur activity with major clients, including Athena, Tether, and Western Union. The speakers highlighted Western Union’s planned stablecoin as especially significant because it reflects adoption by a long-established traditional payments company, and they said the project illustrates how stablecoins can support programmable, real-time, interoperable payments. They also noted that Anchorage is providing issuance infrastructure for the Western Union project. The commission and presenters also discussed government uses of tokenized assets, including reserve legislation, digital assets for tax collection and fees, and a Marshall Islands initiative to use a tokenized sovereign bond for direct citizen payments. In response to a question, Anchorage said it would follow up on which states are using digital assets for revenue collection, mentioning Louisiana and Pennsylvania as examples. The banking discussion centered on remittances, instant payments, and interbank settlement, with Anchorage arguing that stablecoins can reduce settlement time, fees, and foreign exchange risk while improving traceability and auditability.

Transcript Highlights:

• toward TRS liabilities began in payments toward TRS liabilities began in 2016<00:05:04.320><c> with<
• </c><00:05:14.400><c> for</c> budget Cycles projected payments for budget Cycles projected payments for
• are projected to continue to payments are projected to continue to increase<00:05:34.039><c> more</c
• beyond the expected two billion in annual payments for unfunded liability.
• c><00:16:20.399><c> payments</c><00:16:20.959><c> for</c><00:16:21.240><c> unfunded</c> in annual payments

Summary: The Senate State and Local Government Committee met and first took up Senate Bill 193, described as a simple measure to restore a wallet card for jailers to carry when outside the jail. The chair noted the fiscal impact was essentially zero, there were no questions, and the committee voted to pass the bill 9-0. The committee then heard Senate Bill 9, a proposal focused on the Teachers’ Retirement System (TRS). The sponsor argued TRS remains underfunded despite large state contributions, cited rising unfunded liability and negative cash flow, and said the bill is intended to standardize and limit what sick leave, personal leave, and annual leave can count toward retirement calculations. The bill would generally cap TRS retirement credit at 10 sick days and 2 personal days per year, prevent annual leave from being rolled into sick leave, require more uniform reporting and oversight from participating districts and agencies, and shift costs to districts that offer benefits beyond TRS limits. The sponsor also said the bill would add 30 maternity leave days, allow voluntary supplemental contributions for Tier Four teachers, and include a floor amendment directing the state auditor to audit TRS and report on agency leave policies. During the presentation, the sponsor emphasized fairness, transparency, and accountability, and used a hypothetical high-salary administrator to illustrate how leave payouts can increase retirement benefits and create additional unfunded liability. Senator Mills thanked the sponsor and said members had been working to understand the issue, but no committee action on Senate Bill 9 was completed in the portion provided.

Transcript Highlights:

• In any event, a payment stable coin or token must be used or designed to be used for payments.
• In any event, a payment stable coin or token must be used or designed to be used for payments.
• </c><00:18:54.720><c> Um</c> it to be a payment stable token. Um it to be a payment stable token.
• </c> with the payment. with the payment.
• They're a payment mechanism, a payment structure.

Summary: The commission met on November 12 and first approved the September 17 and October 15 draft minutes unanimously after brief discussion. Members also identified themselves for the record, including a new member from Bumpsk Bank, a staff attorney from the Secretary of State’s Bureau of Securities Regulation, a prior crypto commission participant, and a uniform law commissioner involved in tokenization projects. The main presentation was by UNH law professor Seth Orinberg, who discussed the federal GENIUS Act and the pending Clarity Act and how they affect New Hampshire’s options in the digital asset space. He described the GENIUS Act as governing payment stablecoins/stable tokens, defining them as blockchain-based assets used primarily for payments, redeemable for a fixed amount of national currency, and required to maintain stable value. He said the law creates three possible state roles: hosting federally qualified issuers, becoming a state qualifier for issuers up to a $10 billion threshold, or exploring state-backed issuance as a sovereign. He noted that the state-qualification path would require conforming legislation, examination capacity, and coordination with Treasury, while the sovereign-issuer theory is legally uncertain and may become a test case. Orinberg also outlined the core compliance framework he said applies to covered issuers: 100% reserve backing in high-quality liquid assets, monthly public reserve reporting, no yield or interest-like rewards, segregation of reserve assets, immediate redemption at face value, and anti-money-laundering/know-your-customer obligations. He then turned to the Clarity Act, describing it as a broader market-structure bill that would create categories such as digital asset, digital commodity, digital security, and ancillary asset, with self-certification procedures for issuers. He said the two federal laws together would separate payments from investments, preempt inconsistent state standards for covered payment stablecoins, and likely reshape the boundaries of state authority over digital assets.

Transcript Highlights:

• </c> payment suspensions uh in 2025. payment suspensions uh in 2025.
• </c><00:28:41.120><c> until</c> they can withhold those payments until they can withhold those payments
• </c> avoid the withholding of payments avoid the withholding of payments included<00:30:30.560><c> in
• ,</c> uh or reduce payments, uh or reduce payments, uh<00:35:02.920><c> you</c><00:35:03.080><c> said
• And that's all we want here because issue payment suspensions, there is no issue payment suspensions,

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• Welcome to our second meeting of the Special Legislative Commission to study the future of payments and
• I've worked on payments policy for about 20 years, most of those as a staffer for U.S.
• efficient payments for consumers and businesses.
• Today, the payments industry is not simply a financial service.
• These are high-quality jobs that spread across the industries, not just in payments.

Summary: The commission met to continue studying credit card payments, interchange fees, fraud, chargebacks, and the impact of card processing costs on small businesses, especially restaurants and retailers. Members heard extensive testimony from credit unions, retailers, restaurant owners, payment-industry representatives, and an airline trade group. Supporters of reform argued that swipe fees are a major and rising expense, that businesses are paying fees on sales tax and tips that are merely pass-through amounts, and that merchants have little negotiating power. Several restaurant and retail witnesses described thin margins, higher costs for card-not-present transactions, and chargebacks that they said usually favor cardholders and leave merchants absorbing losses and fees. Witnesses from the Cooperative Credit Union Association cautioned that state-level interchange regulation could reduce revenue used for fraud prevention, compliance, and member services, and could lead to higher rates or reduced access. Retail and restaurant representatives countered that fees have risen sharply, that statements are difficult to decipher, and that rewards programs and card-network pricing are subsidized by merchants and ultimately by all consumers. The Massachusetts Restaurant Association and independent operators urged legislation to bar fees on tax and tip portions of transactions and to allow businesses to pass along card fees if they choose, saying this would improve transparency and fairness and help keep small restaurants open. Other testimony came from the National Restaurant Association, which supported interchange reform and said modern point-of-sale systems can already separate tax and tip amounts, and from a payments-industry group that emphasized the broader economic benefits of digital payments and warned against state-by-state rules. Airlines for America opposed changes that could undermine airline credit card rewards programs. Commission members asked detailed questions about fee structures, card types, chargebacks, POS systems, and whether consumers paying cash are also affected. No votes or formal actions were taken at the meeting.

Transcript Highlights:

• Well, the law says monthly, but this committee can approve alternative payments.
• It will reflect those payments. Thank you, ma'am. Okay.
• Who approved the payment is what I...
• The receipt books in which these payments were recorded could not be located.
• The receipt books in which these payments were recorded could not be located.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee first approved a motion by voice vote, then received updates on delinquent private water and sewer reports. For the 2012 reports, staff said five additional 2024 reports had been received since the December meeting, bringing the total to 17 with escrow funds released and 26 still escrowed. For the 2023 delinquent reports, two more had come in, leaving five outstanding; both reports were filed without objection. The committee then focused on Act 709 repayment issues for the town of Daisy. Audit staff said Daisy had made unauthorized payments to a nonprofit and had used restricted street funds for fire-related expenses, and that the town had not yet adopted the required repayment ordinance. Mayor Lisa Cogburn said the council had not approved repayment because members disputed the amount, though she said the town had funds to pay. After discussion about the audit calculations and statutory repayment requirements, the committee adopted a motion requiring 10% repayment of the street fund under the statute and providing that failure to comply would result in withholding turnback funds. The Daisy report was then filed. The committee reviewed numerous additional audit findings from cities, counties, and water departments. Several local officials appeared and described corrective steps, including reconciliation work in Harrison and Carroll County, revenue-code corrections in Izard County, monthly bond-pending reviews in Alexander, fixed-asset documentation and receipt procedures in the town of 56, and bookkeeping/receipt improvements in Ozan and Lee County. Some matters were deferred, including several private water and sewer reports and Green Forest, while others were filed. Reports involving more serious issues were referred to the prosecuting attorney and Attorney General, including Bull Shoals, Lone Oak County, Beaver, Central City, Gravette, Ralston Water Department, Thornton Waterworks, and others. The committee also filed 19 reports with resolved findings and 53 reports with no findings, and adjourned with the next meeting set for February 12, 2026.

Transcript Highlights:

• I've worked on payments policy for about 20 years, most of those as a staffer for U.S.
• Today, the payments industry is not simply a financial service.
• These are high-quality jobs that spread across industries, not just in payments.
• There is a value to digital payments, as was pointed out by the representative PWC.
• But all of these payment options, whether it's...

Summary: The commission met to hear testimony on the future of credit card payments and swipe fees, with a focus on impacts to small businesses, especially restaurants and retailers. Members and witnesses discussed interchange fees, processing fees, chargebacks, fraud risk, rewards programs, and the growing use of card-not-present and digital wallet transactions. Several witnesses urged the commission to support legislation that would prohibit fees on the tax and tip portions of transactions and allow businesses to pass credit card fees on to customers if they choose, while others warned that state regulation of interchange could reduce fraud protections and harm consumer rewards programs. Small business owners and trade groups described rising costs and thin margins, saying card fees are now among their largest expenses and are often charged on money that is merely passing through the business, such as sales tax and gratuities. Restaurant representatives said the current system shifts fraud and chargeback losses onto merchants, with little ability to negotiate rates or recover disputed funds, and argued that transparency and fee relief would help keep independent businesses open. Retailers gave similar testimony, citing rising swipe fees, complex statements, and the burden of online and phone transactions. A representative from the airline industry opposed interchange reform, arguing that airline credit card rewards are popular with consumers and support travel and jobs in Massachusetts. Credit union representatives cautioned that state-level interchange limits could weaken fraud prevention and force higher rates or reduced services, while the National Restaurant Association and a payments-policy attorney countered that banks and networks already operate under fee caps in other contexts and that interchange rates are fixed rather than competitive. Commission members asked questions about how chargebacks work, how fees are broken down, whether businesses can negotiate with processors or POS providers, and how consumer behavior has shifted toward cards, online ordering, and delivery since the pandemic. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• So that's why that payment.
• So those payments are well above.
• For grandfathered payments...
• the Medicare payment rate.
• However, each year, CMS adjusts Medicare payment rates, so the new upper payment limit will grow over

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• It's not just public lands; there's a lot of lakeshore land, and the payment in lieu of tax payments
• The bill also requires payments to townships of 10% for the payment received for other lakeshore land
• </c><00:37:05.760><c> are</c><00:37:06.079><c> the</c> payment in lie of tax payments are the payment
• :58.800><c> to</c> comparing these PILT payments to comparing these PILT payments to potential<00:47:
• </c> so my question is how do PILt payments so my question is how do PILt payments maybe<00:49:56.079

Committee: Senate Taxes

Transcript Highlights:

• had, they returned the payment.
• Or are they under any legal obligation to accept that payment?
• The payment was made directly to the bank without our knowledge.
• So in that scenario, it's an unconditional payment.
• So they were offered a payment on their loan.

Committee: House Utilities

Transcript Highlights:

• </c> payments business? payments business?
• </c> payments by DHS. payments by DHS.
• </c> happened to be caught in the payment happened to be caught in the payment withhold<01:20:21.040>
• </c> well as the temporary payment withhold. well as the temporary payment withhold.
• </c> And unfortunately, the temporary payment And unfortunately, the temporary payment withhold<01:32

Committee: Senate Human Services

Transcript Highlights:

• </c> payment withholds and so payment payment withholds and so payment withholds<01:09:30.000><c> are
• </c> vestigations so the governor's payment vestigations so the governor's payment withhold withhold
• </c> um I I am I'm hesitating because payment um I I am I'm hesitating because payment withholds<01:24
• </c><01:47:22.360><c> we</c> we had taken action to stop payment we we had taken action to stop payment
• </c> that instance was to allow the payments that instance was to allow the payments to<01:47:44.639>

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• The city of Jericho was granted a payment agreement less than 10% allowed by the law.
• The city made the following payments totaling over $2,600. This is a repeat finding.
• The city made the following payments totaling over $2,600. This is a repeat finding.
• , and then once they receive those payments, they transfer and sign off on those receipts or payments
• Invoices and timesheets were not properly approved prior to payment.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the February 12 minutes and received updates on delinquent municipal water and sewer reports for 2022 and 2023, noting continued progress toward compliance and reinstatement of turnback funds for several cities. It also deferred several matters to the June 4 meeting, including Fargo’s municipal accounting noncompliance report, Jericho’s street-fund misuse issue, Biggers and Holly Grove deferred reports, and a group of private water and sewer reports lacking proper responses. Members then heard and filed a detailed report on the City of Strong, which involved repeat findings on undeposited receipts, improper use of solid waste funds, unsupported spending, late payroll tax payments, accounting control problems, and fund balance issues. Mayor Darrell Howell described corrective steps, including new internal controls, outside CPA assistance, repayment of misapplied funds, budget amendments, and efforts to address the findings; the committee commended the city’s efforts and filed the report. The committee also filed reports on Thornton Waterworks, Calhoun County, Salem, Briarcliffe, Compton Water Association, Montgomery County Regional Public Water Authority, Camden, Johnson County, and Sparkman, while deferring several private water reports and other unresolved items. A major portion of the meeting focused on the Pulaski County Regional Solid Waste Management District and other regional solid waste districts. The audit found issues in Pulaski County involving unapproved payroll items, missing credit card documentation, unapproved contracts, vehicle and cell phone documentation problems, lack of competitive bidding, and weak internal controls; members questioned the district’s practices and deferred the report to June while requesting district representatives appear. The committee also reviewed a statewide report on six regional solid waste management districts, with findings in Pulaski, Faulkner, and Benton counties and no findings in three others; that report was likewise deferred for Pulaski County questions. The meeting ended after a lengthy discussion with Cross County Rural Water System about overdue audit posting, water quality problems, grant-funded improvements, board notice practices, and the broader challenges facing rural water systems, after which the committee filed the report and adjourned.

Transcript Highlights:

• And apparently those payments for those bags were being received.
• I spoke with the chairman of their board, and he explains. those payments.
• two extra payments each year.
• I was just thinking, as many of you know, our state has gone from 24 payments a year to 26 payments a
• It has accrued two interest payments at the end of September and the end of December.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• From our vendor payee payments page, this is primarily how a user is going to search for payment information
• Again, this is state agency payments.
• You may want to view payments that are made to a specific vendor.
• View payments that are made to a specific vendor.
• in between, you're going to be able to see that payment information.

Summary: The Joint Legislative Auditing Committee met to receive updates on Transparency Florida and related transparency tools. The Governor’s Office and the Department of Financial Services described the Transparency Florida website, the state payment and contract systems, and the local-government financial reporting system (Logger X/XBRL), emphasizing public access, searchable payment and contract data, downloadable reports, and ongoing upgrades. Members asked whether school districts and the Department of Corrections are included in these systems; staff explained that state agencies like Corrections are covered through Transparency Florida, FACTS, and the state financial reports, while Logger X is for local governments. Committee staff reported that the Transparency Florida Act’s requirements have been met and noted that any new recommendations would need legislative action; members were invited to submit recommendations by October 30. The committee then reviewed repeated audit findings for local governments and educational entities. Staff explained the statutory process for “three-peat” findings: first requesting an updated written corrective-action status, then possibly requiring an appearance before the committee, and finally taking further action if findings remain uncorrected. Most entities were recommended for written updates, while the City of Daytona Beach was singled out for an in-person appearance because of a repeated finding involving unexpended building permit balances. Members also raised questions about specific entities, including McIntosh, White Springs, Pahokee, and the Fred R. Wilson Memorial Law Library special district, with staff explaining the nature of the findings and noting that some entities may warrant further review. The committee adopted a motion to accept staff’s recommendations and to send letters to entities with uncorrected audit findings in late-filed 2023-24 audit reports. It also approved a motion directing the Auditor General and OPPAGA to conduct the required audit of the Department of the Lottery for fiscal year 2025-26, with the Auditor General handling financial, internal control, and compliance work and OPPAGA preparing operational recommendations. The meeting concluded with notice that the next meeting was tentatively scheduled for November 3 at 3:30 p.m., followed by adjournment.

Transcript Highlights:

• It limits state flexibilities related to eligibility determinations and payments to providers through
• state-directed payment limits.
• payments which are payments<00:09:24.720><c> to</c><00:09:25.040><c> providers</c><00:09:26.000><c>
• </c><00:10:13.680><c> So</c> payments particularly for hospitals.
• So payments particularly for hospitals.

Summary: At its second meeting on July 30, 2025, the Medicaid Oversight and Advisory Board approved the minutes from its June 25 meeting and received housekeeping materials, including follow-up information on provider taxes, mandatory and optional Medicaid services, and the 1115 community engagement waiver. The chair noted that members should hold general questions until the end of the meeting. The main presentation came from Katherine Castanza of the National Conference of State Legislators, who gave a nonpartisan overview of Medicaid provisions in HR1. She explained that the bill contains more than 20 Medicaid-related provisions, with major changes affecting provider taxes, state-directed payments, eligibility and enrollment rules, work or community engagement requirements, and the frequency of eligibility redeterminations for expansion populations. She emphasized that five provisions account for most of the federal savings, that the fiscal effects are backloaded into the final years of the 10-year window, and that expansion states and provider payment changes make up a large share of the impact. Castanza also highlighted that the Medicaid provisions would take effect either upon enactment or before October 1, 2029, creating roughly a five-year implementation period. She noted that some states may not realize the same savings as the federal government because of financing changes and implementation responsibilities, and she cited estimates that the enacted Senate provisions could reduce hospital payments by 18.2%, or more than $660 billion over 10 years. The transcript provided does not show any votes or final actions beyond adoption of the minutes.

Transcript Highlights:

• managed care payments have decreased.
• And then we're able to set up payment arrangements with them.
• This is payments toward the private providers.
• case mix index to a patient-driven payment model.
• How much supplemental payment? 4.4-ish billion. Okay.

Committee: House Appropriations

Transcript Highlights:

• </c><00:44:45.839><c> error</c> seeing our inner our uh payment error seeing our inner our uh payment
• </c> in managing um and improve our payment in managing um and improve our payment error<00:45:00.319
• </c> integrity statutes to strengthen payment integrity statutes to strengthen payment control<01:08:
• We can discontinue payments.
• The stop payment is tied to the investigation.

Committee: Senate Health and Human Services

Transcript Highlights:

• 40-hour work week processing credit card payments.
• Representative Contreras, it was every employee that was receiving these incentive payments.
• As for the amount of that incentive payment, I— As for the amount of that incentive payment, that would
• And as of federal fiscal year 2024, the department's improper payment rate was approximately 8.8%.
• And so as a result, reducing the department's payment. the highest match rate of 15%.

Committee: House House Health & Human Services Committee of Reference

Summary: The committee met as a Joint Health and Human Services Committee of Reference to hear sunset reviews and performance audit findings for several health-related boards. The first action taken was on the Arizona State Board of Pharmacy. The Auditor General reported that while the board met some licensing deadlines, it had significant problems enforcing controlled substances prescription monitoring program (CSPMP) requirements, timely investigating complaints, and documenting fee analyses and other compliance items. The board director said the agency had implemented some recommendations, was seeking legislative help on CSPMP enforcement and data issues, and described staffing and vendor challenges. A public member testified that the board was generally efficient but that statutory gaps limited its effectiveness. The committee then voted 13-0, with six not voting, to continue the Board of Pharmacy for six years until July 1, 2032, with statutory changes to improve its operations. The committee next reviewed the Arizona State Board of Nursing. The Auditor General found the board timely processed licenses but continued to resolve too many complaints late, with a large and growing backlog of open cases, and identified additional issues in oversight, accounting, public records, and conflict-of-interest practices. The executive director said the board had been under-resourced as nursing volume and complaints increased, requested 28 additional investigative positions, and described efforts to triage cases and improve tracking. The Arizona Nurses Association supported the board’s role and said it was working on a bill, House Bill 2408, to improve accountability, prioritization, and fairness in the disciplinary process. A nurse attorney testified that changes to complaint notice, the scope of investigations, and triage could shorten delays. The committee approved continuation of the Board of Nursing for four years until July 1, 2030, by a 14-0 vote with five not voting. The committee then heard the sunset review for the Arizona Board of Occupational Therapy Examiners. The Auditor General reported that the board generally met licensing timelines but had documentation problems verifying fingerprint clearance cards or criminal history checks, and it failed to act promptly on a renewal application involving serious sex-trafficking-related charges. The board said it had accepted all recommendations, had implemented most of them, had moved to a new licensing platform, and had hired help to address rulemaking delays. Members asked about fingerprint verification and the handling of the serious criminal charges. The committee voted 16-0 to continue the board for four years until July 1, 2030, with statutory changes to improve its performance. Finally, the committee began the review of the Arizona Regulatory Board of Physician Assistants. The Auditor General found the board had met some licensing and enforcement requirements but lacked adequate executive oversight, accountability, and tracking systems, and it had very high complaint-resolution delays. The report also criticized the board’s incentive pay structure, which paid all staff based on measures unrelated to complaint timeliness. The new executive director said the board had created formal investigative timelines, improved reporting, sought additional support staff, and was updating IT and incentive metrics; she also explained that the board is a shared agency with the Medical Board. The transcript ends during this presentation, before any vote on the physician assistant board is shown.