Transcript Highlights:

• The historic artifacts and the collection within the DEP archives or history are exempted from audit

Bills: HB159

Keywords: U.S. Space and Rocket Center, Alabama Space Science Exhibit Commission, public facilities, space exploration, education programs, bond issuance, Governor involvement, 923, senate, all

Transcript Highlights:

• This bill excludes financing from notice requirements but includes risk mitigation actions, procurement

Keywords: 905, all

Summary: The House met with a quorum, approved the journal, and received messages from the governor and Senate, including notice that the governor vetoed CSHB 16 and allowed HB 14 to become law without signature. The chamber then took up the conference committee report on HB 381, a major Alaska LNG-related bill that revises the project’s tax and regulatory structure. The conference report was explained as a compromise package that, among other things, changes required local contribution language, expands disclosure and notice requirements, adjusts foreign ownership reporting, extends the Phase 1 construction deadline, adds a $10 million workforce development/community impact fund, modifies project labor agreement provisions, and exempts the Alaska LNG project from the new pass-through entity tax while still requiring an informational tax return in 2027. The Speaker also announced the governor had issued a proclamation calling the legislature back into session on July 27, 2026, and said sine die would be moved after debate. Debate on HB 381 was sharply divided. Supporters argued the bill is necessary enabling legislation to improve the project’s financial viability, protect Alaska’s interests, and move the North Slope gas line toward final investment decision, while also adding transparency, foreign ownership safeguards, and labor and workforce provisions. Several members said the conference committee process was collaborative and that the bill reflects hard-fought compromise with the developer, AGDC, labor, and the administration. Opponents focused on the addition of the pass-through entity/S-corp income tax and related reporting requirements, arguing it is a separate tax policy issue that should have been considered in its own bill, creates uncertainty and litigation risk, could harm existing oil and gas and Cook Inlet production, and may discourage investment. Multiple members also criticized the process as rushed and insufficiently transparent, especially the limited opportunity for the minority and the absence of Department of Revenue testimony during conference. No final vote on the conference committee report is shown in the transcript excerpt. The debate continued with members alternating between support for the gas line project itself and opposition to the tax provisions and process used to advance HB 381.

Transcript Highlights:

• These include items such as site costs, professional service fees, state-procured furniture and equipment

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes before hearing a series of informational updates. The Petroleum Council reported that North Dakota oil production is expected to remain relatively flat at just under 1.2 million barrels per day, with activity shifting northward in the Bakken as technology improves and three- and four-mile laterals boost well performance. The presentation also discussed oil and gas prices, gas taxation, flaring concerns, the importance of pipelines and other linear infrastructure, and enhanced oil recovery pilot projects supported by state and federal funding. Members asked questions about gas production taxes, natural gas liquids, and the outlook for drilling rigs and future production. The Office of State Tax Commissioner then reviewed the federal “big beautiful bill” and its estimated effect on North Dakota individual and business income tax collections. Staff explained that most of the individual income tax impact comes from the permanent increase in the standard deduction, while temporary provisions such as senior deductions, tip and overtime exclusions, and auto loan interest deductions have smaller or limited-term effects. They also noted that business tax changes, especially depreciation and expensing provisions, create a larger near-term cash impact, and that some FY25 collections likely reflected one-time oil field transactions that may have inflated the baseline used in earlier estimates. OMB provided updates on major capital projects and facility funding. For Capitol grounds improvements, officials described plans for 18th-floor renovations, wayfinding upgrades, public seating, lighting, tree management, and possible restroom and lobby reconfiguration, while also noting the governor’s residence security project and the discovery of human remains on the Capitol grounds. OMB and its consultants also reported on the state facility maintenance fund, including window replacement, boiler work, roof and foundation repairs, and a new facility conditions assessment covering more state buildings. Updates were also given on the new state hospital in Jamestown, the Minot state office building, and the use of federal state fiscal recovery funds, including possible future reallocations to the Department of Corrections. Finally, Legislative Council staff summarized the interim compliance report on legislative intent and trust fund activity, highlighting the status of lines of credit, Bank of North Dakota profit transfers, the statewide litigation pool, the new Office of Guardianship and Conservatorship, corrections planning, HHS program updates, and a likely future general fund request for the unemployment insurance modernization project. No formal votes were taken beyond approval of the minutes; the meeting was primarily informational, with members asking clarifying questions throughout.

Transcript Highlights:

• the Stockbridge-Munsee people to continue to conserve and protect Monument Mountain without the procurement

Keywords: 995, all

Summary: The committee first heard testimony on a proposed Massachusetts baby bonds program, including H. 3429, S. 2146, and the Treasurer’s related bill H. 48. Treasurer Goldberg and a broad coalition of advocates, researchers, health professionals, and people with lived experience said the program would create trust accounts for children born into low-income families or in DCF custody, with funds available at age 18 for education, homeownership, business startup, or other long-term asset-building uses. Supporters argued the program would help close the racial wealth gap, improve economic mobility, and not affect eligibility for financial aid or public benefits. Committee members asked about administration, investment returns, eligibility, and withdrawal rules; the Treasurer said the accounts would be held in trust and managed by her office with an advisory board, with funds accessible at 18 and usable through age 35 if the beneficiary remains a Massachusetts resident. No vote was taken during the testimony shown. The committee also heard testimony on legislation establishing Lobular Breast Cancer Awareness Day, including S. 2666 and H. 4625. Senator Ross, Representative Badger, physicians, survivors, and advocates described invasive lobular carcinoma as difficult to detect because it often grows in lines rather than forming a lump, can be missed on mammography, and is underfunded and underrepresented in research and clinical trials. Witnesses said the bill would codify an annual October 15 proclamation to raise awareness, improve diagnosis, and encourage more targeted research and treatment. Committee members asked why the disease is so hard to detect, and medical witnesses explained the imaging challenges and the lack of lobular-specific protocols. The witnesses urged favorable reports. The committee then took testimony on H. 4648, a bill concerning the purchase or lease of Fenn Farm in Stockbridge by the Stockbridge-Munsee community. Representative Davis, the Stockbridge Land Trust president, and the tribal president testified that the bill would remove a conservation restriction tied to a state MVP grant so the tribe could manage the land without a restriction that they said would conflict with tribal sovereignty and Indigenous stewardship practices. They said the parcel is a sacred site connected to Monument Mountain and that the restriction is unnecessary because the land is already surrounded by conserved property. The witnesses asked for favorable action on the bill. Finally, the committee heard testimony on H. 3416, a resolution urging Congress to create a national infrastructure bank. Representative Senna and several advocates argued that an off-budget infrastructure bank could finance major repairs and upgrades to roads, bridges, rail, water systems, broadband, and housing without adding to the state budget, while creating jobs and supporting economic growth. Witnesses cited historical precedents for national infrastructure banks and said Massachusetts could benefit substantially from such a program. The transcript shown does not include a committee vote or final action on the resolution.

Transcript Highlights:

• parishes and municipalities but does not require local government to change any of their current procurement

Keywords: 974, senate, all

Transcript Highlights:

• I'm still confused on this because earlier I asked the question if this applies to a woman who procures

Bills: HB1168

Keywords: abortion, abortion-inducing drugs, medication abortion, mifepristone, misoprostol, methotrexate, pro-life, pro-choice, reproductive health, unborn child, trafficking, felony, contraception, pharmacist, pharmacy, Title 63, Oklahoma statutes, abortion pill, drug distribution, criminal penalty

Transcript Highlights:

• This request covers the procurement of subscription licenses and implementation services to configure

Summary: The subcommittee heard presentations on several GovOps-related budget proposals, beginning with ongoing funding for the California Education Learning Lab. The Learning Lab described its intersegmental grants to UC, CSU, and community college faculty, including AI-related work and a math alignment project, and said the Governor’s proposal would move the program’s home agency to GovOps and restore $4 million annually. The Department of Finance supported the proposal as a way to improve coordination, while the LAO recommended rejecting it, arguing the projects are hard to scale, similar professional development already exists in the segments, and the state should consider saving General Fund dollars. Senators split on the value of the program, with some emphasizing innovation and intersegmental collaboration and others questioning its measurable long-term impact; the item was held open. The committee then reviewed the Office of Civil Rights proposal to implement AB 715 and SB 48 with $3.5 million in 2026-27 and $2.8 million ongoing. GovOps said the office had been set up administratively, positions were being recruited, and it would provide training, technical assistance, and complaint review related to anti-Semitism and other discrimination in TK-12 schools. The LAO had no concerns, but senators raised substantial questions about the office’s placement in GovOps, the lack of guidance while the laws are being implemented, the use of gubernatorial appointees, and whether the staffing structure matches the likely workload across different discrimination categories. GovOps said it would develop guidance, coordinate with CDE, and shift resources as needed once staff are hired, but several members said they were not prepared to support the item as presented; it was also held open. After public comment supporting the California Education Interagency Council, the subcommittee approved vote-only items 11 through 17 and 6 through 10. It then heard from the Office of Data and Innovation on a request for five positions and $1.25 million in reimbursement authority to expand digital service delivery work. ODI described projects such as reducing unauthorized EBT theft and forecasting community water system outages, and said it uses guardrails and contracts to protect sensitive data when working with vendor AI services. The LAO had no concerns, and members generally praised ODI’s small, high-impact role; the item was held open. Finally, the Department of Technology presented on the Middle-Mile Broadband Initiative, reporting that 423 miles are complete, more than 70% of the network has been permitted, and about 5,300 miles are expected to be completed by December 2026, with some work potentially slipping into 2027. CDT said Skyline Technology Solutions had been selected to operate the network and that the third-party administrator, Golden State Net, would continue to support development and later help oversee operations and sales. The LAO noted the project’s progress but raised concerns about the novel three-party structure, accountability, and long-term financial sustainability. Senators questioned the legal basis for the operator arrangement, the revenue outlook, reporting to the Legislature, and whether the network will be self-sustaining; CDT said it expects revenues to cover operations over time and will continue annual and quarterly reporting. The item was left open.

Transcript Highlights:

• This request covers the procurement of subscription licenses and implementation services to configure

Keywords: 987, senate, all

Transcript Highlights:

• yesterday I was visited by the DOA regarding whether it would be allowable to post only on the procurement

Keywords: 1182, all

Transcript Highlights:

• They'll have to follow our procurement policies and things of that nature. But yeah, we are.

Summary: The committee approved the November 3 minutes and then received an extensive presentation from Arkansas education and workforce officials on how the LEARNS and ACCESS Acts are affecting career and technical education, concurrent enrollment, and postsecondary readiness. Officials said the state’s goal is for students to leave high school employed, enrolled, or enlisted, and reported increases in K-12 CTE enrollment from about 161,000 to 171,000 students and concurrent CTE enrollment from about 12,000 to 16,000. They also described the new success-ready pathways, merit and distinction designations, and how those measures tie into school accountability and graduation outcomes. The discussion then turned to scholarships and grants. Officials explained that ACCESS expanded concurrent credit support, increased funding per credit hour, and broadened eligibility for the Arkansas Academic Challenge and Governor’s Scholar programs by adding diploma-of-merit and diploma-of-distinction pathways. They said the Governor’s Distinguished Scholarship itself did not change, but the non-distinguished Governor’s Scholar award now includes diploma of distinction as an additional eligibility route. Members raised concerns about how these requirements apply to private school and homeschool students, and officials said the intent is to ensure those students can qualify if they meet the same standards, though some implementation details are still being worked out. Questions also focused on whether students who explore multiple pathways could be penalized in school letter grades; officials said the system allows multiple ways to earn credit, including AP, IB, concurrent credit, technical certificates, and apprenticeships. Officials also reviewed workforce scholarships and short-term training funding. They said the state is developing policy for the Workforce Challenge and related professional skills training to set an 80-hour minimum and tiered funding, and they discussed the new federal Workforce Pell rules, which they said are very narrow and will likely apply to only a small number of Arkansas programs unless providers repackage training into stackable, credit-bearing pathways. Members asked for lists of eliminated programs, apprenticeships, and data on scholarship recipients, and staff said they could provide those. The committee also heard from Cody Waites on a $35.8 million U.S. Department of Labor cooperative agreement for the American Manufacturing Apprenticeship Incentive Fund, which Arkansas will administer nationally. He said the grant will support advanced manufacturing apprenticeships, use a pay-for-performance model, and be distributed to sponsors after apprentices are employed for 90 days, with applications opening January 28 and the state expecting to keep administrative costs under 8-9%.

Transcript Highlights:

• the gravity and the frequency of this happening, that individuals are out there willing to try to procure

Summary: The committee hearing covered several bills related to privacy, consumer protection, and online harms. SB 259 by Senator Wahab would prohibit surveillance pricing based on device data such as geolocation or battery level; supporters argued it would curb discriminatory and predatory pricing, while opponents raised concerns about geolocation definitions, legitimate location-based pricing, and impacts on discounts and loyalty programs. The bill was moved on a due pass motion to the Judiciary Committee and passed 8-1, with members noting amendments and ongoing discussions with stakeholders. SB 22 by Senator Laird would raise the amount of gift cards that can be redeemed for cash, with the author saying the goal is to update the long-standing $10 threshold for inflation and preserve consumer value. Consumer advocates supported the bill, while retailers, restaurants, grocers, and chambers of commerce opposed or opposed unless amended, citing fraud concerns, safety issues, and the need for clarification on donated or returned gift cards. The committee voted the bill out on a 6-1 vote and kept it on call. SB 576 by Senator Umberg would apply broadcast-style loudness rules to streaming advertisements. The author said the bill is intended to prevent ads from being much louder than programming, especially for children, while the opposition argued that streaming ad insertion is technically different and that existing industry standards and FCC oversight already address the issue. The bill passed 8-0. SB 683 by Senator Cortese would clarify that people can seek injunctive relief, including a TRO, for unauthorized use of name, image, or likeness; supporters said it strengthens privacy protections, while opponents warned about prior restraint and First Amendment concerns. The bill was moved out on a due pass motion and kept on call. The final bill discussed, SB 771 by Senator Stern, would clarify that existing civil rights and hate-related laws apply to social media platforms and their algorithms, with higher penalties for intentional or reckless violations. Supporters, including the Simon Wiesenthal Center and the Islamic Networks Group, described online hate as fueling real-world violence and urged stronger accountability; opponents argued the bill could conflict with Section 230, chill lawful speech, and create vague standards. Members raised questions about constitutionality, definitions, and whether the bill would be workable, but several expressed support for the author’s goals.

Transcript Highlights:

• MANAGED CARE IS A PROCUREMENT PROCESS LED BY ACHA WITH MEDICAL ACUTE LONG TERM CARE, HOME COMMUNITY BASED

Keywords: 999, senate, all

Transcript Highlights:

• Over two years and- And we would be able to contract with our local universities to help procure that

Bills: HB3619, HB3652, HB4572, HB4891, HB4941, HB5103, HB5105, HB5106, HB5224, HB5600

Keywords: surface estate, well plugging, Railroad Commission, landowner rights, liability, strategic reserve, gas supply, petroleum products, disaster response, Railroad Commission of Texas, energy security, emergency planning, oil and gas waste, environmental regulation, waste management, mining pits, groundwater monitoring, regulation, commercial disposal facilities, environmental standards

Transcript Highlights:

• I know I speak for our Chair when I say that these will be competitive procurements.

Keywords: 988, house, all

Transcript Highlights:

• There's a special type of procurement that you have to follow for this type of work.

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• So we follow pretty much the same rules as the Department of Education: 287 for procurement, we are operating

Summary: The Education Administration Subcommittee held an introductory meeting focused largely on member introductions and “homework” reports about education issues in each district. Members raised a wide range of concerns and priorities, including early childhood care and VPK access, school choice and school closures, teacher recruitment and retention, conflict resolution and school safety, early literacy and preparedness, technology and AI/STEM instruction, attendance and mental health, ESE services, dual enrollment and career/technical education, caregiving youth, and real-time student enrollment/funding tracking. Several members also emphasized local challenges such as housing-driven teacher turnover, disaster-related attendance problems, and funding inequities across counties. The committee then heard a detailed presentation on Florida’s early learning system from Chancellor Carrie Miller of the Department of Education’s Division of Early Learning. She outlined the structure and funding of School Readiness, VPK, and the Gold Seal Quality Care program, the role of early learning coalitions and DCF, and the state’s quality and accountability measures. She highlighted the importance of kindergarten readiness, teacher quality, and the new School Readiness Plus program, which helps families transition off subsidy more gradually. Additional panelists from the Children’s Forum, the Early Learning Coalition of Miami-Dade/Monroe, and a Tallahassee child care provider discussed workforce shortages, low wages, provider turnover, the TEACH scholarship program, Help Me Grow, local coalition operations, and the need for more providers and more consistent regulation. During questions, members asked about wait lists, special needs services, teacher retention, provider onboarding, and DCF regulation. The panel said Miami-Dade’s wait list was about 4,000 children and described priority categories for service; they also said children with disabilities are screened and referred for support, though not given a separate priority category. Panelists reported that TEACH has helped reduce turnover through education support and service commitments, but said wages and career pathways remain major issues. Members also pressed for clearer, more consistent licensing standards and more support for new providers entering the field. No formal votes or committee actions were taken in the meeting.

Transcript Highlights:

• career coordination system, which is, thanks again to the legislature of the governor, we have this procured

Summary: The Higher Education Budget Subcommittee met for an introductory overview of the higher education programs under its jurisdiction. After roll call and member introductions, Chair Busatta outlined that the subcommittee oversees programs in the Department of Education and the State University System, including vocational rehabilitation, blind services, private postsecondary licensure, student financial aid, career and adult education, the Florida College System, and the Board of Governors. The chair and staff also noted that these areas represent roughly $9 billion in current-year funding. Officials from the Department of Education presented on several programs. Vocational Rehabilitation Director Kelly Rogers described services for adults and youth with disabilities, including pre-employment transition services, job coaching, assistive technology, and employer support; she said the program served more than 55,000 people last year, has no wait list, and reported a return of $7.61 to the economy for every $1 invested. Division of Blind Services Director Robert Doyle explained services from birth through older adulthood, including early intervention, school-age support, vocational rehabilitation, independent living, the Business Enterprise Program for blind vendors, and the Braille and Talking Book Library; he said the division serves about 12,000 people annually and also has no wait list, though some community rehab providers may have one. Tiffany Hurst of the Commission for Independent Education described licensure and consumer protection for independent postsecondary institutions, reporting oversight of about 1,100 institutions and 721 non-degree schools, along with enforcement actions against unlicensed operators. Sean Haskin of Student Financial Assistance reviewed 22 scholarship and grant programs totaling about $1 billion for more than 200,000 students, including Bright Futures, Benacquisto, need-based grants, EASE, EASE Plus, veterans’ scholarships, dual enrollment reimbursement, first responder scholarships, and the Ocoee and Rosewood scholarships. Members asked about surplus funds, marketing, Bright Futures eligibility requirements, and whether EASE awards had changed; Haskin said any unused funds are reverted to the Legislature, that the department markets through schools and the Florida Lottery, and that EASE remained at $3,500 per FTE for the last two fiscal years. Several members raised concerns that students and parents may not learn about aid programs early enough, especially in economically disadvantaged communities. Chancellor Kevin O’Farrell then presented on Career and Adult Education, highlighting record participation in career and technical education, adult education, and apprenticeship. He said about 800,000 secondary students and 480,000 postsecondary students are in CTE, adult education serves about 183,000 learners, and apprenticeship/pre-apprenticeship programs include more than 22,000 participants. He also described the workforce development fund, Perkins, WIOA Title II, the Pathways to Career Opportunities Grant, workforce capitalization grants, CAPE performance funding, and the Pipeline nursing initiative, noting strong NCLEX outcomes and expanded outreach through the Get There, Your Way, Future of Work Florida, and Zello platforms. Kathy Hebda began the Florida College System presentation by emphasizing open access, workforce preparation, statewide reach, and strong enrollment and completion growth, including more than 672,000 students, over 131,000 degrees and certificates, and significant dual enrollment savings for students and families.

Transcript Highlights:

• Just this week, we passed the stage one audit for the AS9100D, the international standard for aerospace
• So there's an awful lot of audit-level kind of substance in the report.
• One, two, three, four, five, six, so there's like 11 different audits of documents and procedures and
• accounting team, and they're able to operate like an external payroll service might, or an external audit
• And then one of the things that we had done within the last two years was conduct an internal audit.

Keywords: 908, all

Transcript Highlights:

• Just this week, we passed the stage one audit for AS9100D, the international standard for aerospace and
• So there's an awful lot of audit-level kind of substance in the report.
• One, two, three, four, five, six, so there's like 11 different audits of documents and procedures and
• accounting team, and they're able to operate like an external payroll service might, or an external audit
• One of the things that we had done within the last two years was conduct an internal audit.

Summary: The Higher Education Institutions Committee met at NDSU and heard an extensive presentation from President David Cook/President Stewart and NDSU leadership on the university’s priorities, including enrollment, student success, research growth, and use of New Horizons funding. Leaders emphasized NDSU’s land-grant mission, its role in workforce development, and its goal of becoming more distinctive through strategic planning, recruitment and retention, commercialization, and partnerships. They highlighted that NDSU awarded 2,370 degrees in 2025, produces a large share of the state’s engineering, nursing, and agriculture graduates, and reported strong outcomes for graduates staying and working in North Dakota. They also noted enrollment headwinds, competition from other institutions, and the need to manage tuition waivers more carefully through a scholarship optimization effort. Provost Sherry Vale outlined academic stewardship efforts, including review or consolidation of low-producing programs, strategic hiring tied to institutional priorities, faculty workload policy changes, and expanded online and regional offerings. She said the university is using New Horizons dollars to strengthen advising, student support, and programs in engineering, agriculture, and health. NDSU leaders also described new or expanded academic offerings such as robotics and automation, artificial intelligence, material science and engineering, nuclear engineering certificates, accelerated nursing, nurse practitioner certificates, a Master of Health Administration, and a clinical research master’s program with Sanford Health. They stressed that these investments are intended to improve student completion, meet workforce needs, and increase return on public investment. The committee also heard testimony from students and recent graduates who described the value of NDSU’s education, mentorship, internships, research opportunities, and support services. Alyssa Hodges spoke about pharmacy education, public health work, and campus support as a parent and student; Ethan Blessy described engineering coursework, internships with Marvin, and career preparation; and Aiden Freolic discussed neuroscience research, federally funded projects, and plans for graduate study. Their testimony was followed by presentations on partnerships with Gateway to Science for K-12 STEM outreach and with Sanford Research on biomedical research, clinical trials, obesity research, and a joint biostatistics hire. NDSU also highlighted systemwide shared services, Governor’s School programming, and research growth, including a reported 8% increase in research expenditures from $199 million to $215 million. No bill votes were taken; the meeting was informational and featured presentations, testimony, and discussion of future planning and partnerships.

Transcript Highlights:

• holds primary responsibility for the state's financial accounting, reporting, disbursement, and auditing
• More importantly, it also identified a major gap around audit capacity and accountability oversight,
• that SCO currently lacks resource capacity and appropriate funding to support strategically targeted audits
• The analysis further stated that having this additional audit capacity is a critical part of any effort
• Sacramento County just, or the city just audited us, and it came out today one of our shelters was number

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