Transcript Highlights:

• The system. The systems are interconnected, it's critical that we really look down that path.
• To build the systems, and then we have our SCADA operators, our IT systems, cyber security, all those
• In our river systems.
• these systems.
• It's for that section, meaning to the main system, to the main wastewater system.

Keywords: 1184, house, all

Transcript Highlights:

• utility I'm sorry adding water system utility I'm sorry adding water system that's<00:10:02.399>
• . system can stabilize.
• system debt is<00:18:38.240> non-system is non-system is non-system proceeds<00:18:40.480>
• City retains ownership of the system City retains ownership of the system assets<00:18:58.000>
• be used to support annual system be used to support annual system expenses<00:20:07.120> and<

Keywords: Energy - Room 210, 2 February, 2026; 4:15 PM, 925, all

Summary: The committee took up several energy, utility, and infrastructure bills. Bill 2527 on solar decommissioning was presented as a landowner consumer-protection measure that would set statewide baseline requirements for solar lease agreements, preserve some freedom of contract, preempt duplicative local rules, and protect landowners from reclamation costs; after no questions, it was moved and passed. The committee also discussed changes to the Gulf Coast Regional Utility Act in HB 2058 and HB 2309, including new first-right-of-refusal language, prohibitions on unauthorized service, civil penalties and enforcement tools, and legislative intent language aimed at preventing duplication and protecting public investment; both were adopted as committee substitutes and passed. HB 2018 was amended to extend similar oversight to water systems, and it was reported after questions about the scope of the change. Several bills focused on water and wastewater oversight. SB 2311 and SB 2312 would create statewide A-to-F grading systems for drinking water and wastewater systems, require annual public reporting, and direct the health and environmental agencies to adopt objective scoring rules; both were passed. SB 2526 would create a Mississippi Rural Water Oversight Committee, require rate studies, capacity studies, and asset management plans for water associations, and provide staffing and funding support from existing revolving-fund resources; it was adopted as a committee substitute and reported, with supporters saying it would help identify and assist troubled associations. The committee also heard a bill creating the Metro Jackson Water Authority, allowing a lease of city system assets, special revenue bonds to refinance legacy debt, and supplemental revenue sources such as sanitation fees and possibly sales tax revenues; the sponsor said no general fund money would be used, and the bill was reported. The committee also advanced HB 2641, which was stripped down to a study committee on wind turbine facilities, grandfathered existing projects, and imposed a moratorium on new construction until the study is completed; members asked about existing projects and were told current projects under construction would not be penalized, and the committee substitute passed. SB 2783 would make targeted definition changes to BEAD-related broadband grant programs so remaining federal funds could support other state initiatives, including AI workforce training, and it was reported after questions about future federal guidance. Finally, HB 2787 would add propane to the school gas-leak testing statute; the sponsor said the inspections would not require additional state funding because propane dealers and the State Fire Marshal’s office already handle the checks, and the bill passed.

Transcript Highlights:

• That is the claim system.
• Our systems are not there.
• Lastly, we build checks into our claims system. The MCOs have their own claim system.
• Still in the system. They're in the system, but they do not have active Medicaid.
• So that includes our pharmacy system, our claim system, our provider enrollment.

Summary: The Senate Committee on Health and Human Services convened to discuss interim charges regarding fraud, waste, and abuse in Texas human services, particularly focusing on Medicaid and childcare programs. The meeting highlighted the importance of preventing misuse of taxpayer funds, with testimony from various stakeholders emphasizing the need for increased oversight and accountability in these programs. Key points included the alarming rise in healthcare fraud in other states, the necessity for Texas to enhance its fraud prevention measures, and the potential financial repercussions of failing to meet federal compliance standards. Several committee members expressed concerns about the impact of fraud on vulnerable populations, particularly those relying on Medicaid services. Testimonies from experts underscored the effectiveness of Texas's Office of Inspector General (OIG) in combating fraud, yet pointed out existing vulnerabilities, such as inconsistent enforcement and the need for better data sharing among agencies. The discussion also touched on the challenges faced by hospice care providers, with a significant increase in the number of hospices in Texas raising concerns about quality and oversight. The committee heard from various witnesses, including representatives from health plans and advocacy organizations, who provided insights into the complexities of managing Medicaid and the importance of maintaining program integrity. The meeting concluded with a commitment to further explore legislative solutions to enhance oversight and ensure that resources are directed to those in genuine need.

Transcript Highlights:

• So I had mentioned the electrical systems upgrade projects.
• , and/or involvement in the child welfare system.
• the county delivery systems but in our non-specialty mental health delivery system.
• Making the benefit optional moves our system backwards.
• Remove one and the system fractures. The stool falls.

Summary: The subcommittee heard presentations from the Department of State Hospitals (DSH), the Commission for Behavioral Health, and the Department of Health Care Services (DHCS) on budget proposals and implementation updates. DSH outlined its proposed 2026-27 budget, including funding for patient operating expenses, IST solutions savings, conditional release program costs, LPS bed allocation changes, electrical infrastructure projects at Napa and Patton, SB 380 transitional housing feasibility work, and expanded dental services at Metropolitan and Patton. DSH also reported that it has met court-ordered IST treatment benchmarks in the Stiavedi v. Clinton case, with average time to initiate treatment down to about five days and pending placements reduced to roughly 250, while noting that Proposition 36 could increase referrals and SB 1323 may divert some individuals earlier into community-based treatment. Members asked about rising outside hospitalization costs, Medicare enrollment, the timing and structure of capital projects, and whether IST solution funds are being fully used; DSH said the savings reflect slower-than-expected ramp-up of community programs and that the Central California FACT replacement program is still on track for January 2027 activation. The Commission for Behavioral Health described its role under the Behavioral Health Services Act (BHSA), including data, evaluation, grantmaking, technical assistance, and transparency work. It highlighted the new statewide Innovation Partnership Fund, a five-year, $20 million-per-year program with small and large grant categories; the first RFA drew strong interest, with more than 400 questions and over 1,000 bidders’ conference participants. The Commission also discussed a proposed extension to spend down about $4.1 million remaining for the Alcove Youth Drop-in Center grants so sites can finish implementation and Stanford can complete the final evaluation. Members asked about grant duration, whether projects can be renewed, what qualifies as innovation, and whether the fund could support service delivery rather than awareness campaigns or training; the Commission said awards are expected to be three-year contracts and that proposals must be new or meaningfully expanded approaches that support BHSA priority populations. DHCS reviewed major behavioral health changes under CalAIM and BH Connect, including peer support, mobile crisis, contingency management, traditional health care practices for tribal members, updated specialty mental health access criteria, and new substance use treatment standards based on ASAM’s fourth edition. DHCS reported strong contingency management results, with more than 13,000 members served and 95% testing negative for stimulant use during treatment, and said 21 Indian health care providers have been approved to offer traditional health care practices. It also described BH Connect initiatives such as the $1.9 billion access reform and outcomes incentive program, workforce investments, evidence-based practice expansion, IMD participation by four counties, and transitional rent services. On BHSA implementation, DHCS said it is not tracking individual county contract cuts but is monitoring county plans and statewide outcomes, while stakeholders raised concerns about local prevention and service gaps. DHCS also outlined its H.R. 1 implementation strategy, including outreach, streamlined renewals, exemptions for disabled, substance use, and medically frail individuals, and proposed clinic navigator and outreach funding; it said it has not yet produced a focused estimate of H.R. 1 impacts on behavioral health populations. The discussion ended with DHCS noting that B-CHIP bond funding has supported 437 infrastructure projects, creating 546 new or expanded facilities and more than 9,500 residential beds across the state.

Transcript Highlights:

• system.
• , the connectivity system.
• , being able to inspect these systems and enabling that to happen. secure in the communication systems
• they are making... ...system, and I don't want to speak for ERCOT, but there's the affidavit system
• These are the residential systems.

Keywords: 1185, senate, all

Transcript Highlights:

• My last question is to the EC system.
• Should there be a system-wide reserve policy?
• We know that the UC system and our other system have been leading.
• but also with our Colleague systems, CSU, the community college system, and so we're here to support
• . program in physics in the UC system.

Keywords: 988, house, all

Transcript Highlights:

• of the system of supports. of the system of supports.
• capabilities on an agency-based system. capabilities on an agency-based system.
• The system itself is not a well-thought-out system. I've got constituents.
• The system itself is not a well-thought-out system. I've got constituents.
• The system itself is not a well-thought-out system. I've got constituents.

Keywords: 919, house, all

Summary: The House first took up Senate File 334, a bill to modernize county human services technology used to administer programs such as Medicaid and SNAP. The author and several members described the current systems as outdated “green screen” platforms that are slow, duplicative, and difficult for workers and applicants, and argued modernization would improve service, retention, and fraud prevention. The bill would create a technology modernization fund with about $90 million over time, capped at $50 million, route funds through Minute, establish an interagency group with county representation, create a legislative working group, and provide $15 million for Office of Inspector General technology. Members from several counties spoke in strong support, citing local system failures, cyberattacks, and the need for better tools; one member noted the bill was about 20 years overdue. The bill passed third reading by a vote of 134-0, and a title was agreed to. The House then considered Senate File 4401, the cannabis bill. The author described it as a maintenance and cleanup package developed with more than 80 stakeholders over months of meetings, including business owners, labor, tribal representatives, and medical cannabis interests. The bill was presented as making noncontroversial adjustments to support small businesses, clarify statutes, improve privacy protections, adjust event and transporter rules, address good-faith errors, strengthen enforcement against unlicensed operators, and support local governments and municipal cannabis dispensaries. It also included a first step toward a medical psilocybin program and changes intended to make the medical cannabis market more sustainable, including easing the grow-and-sale ratio issue. The transcript cuts off before final action on this bill, but members speaking in support emphasized collaboration and the need for practical regulatory fixes.

Transcript Highlights:

• . system. system.
• system improvements, etc. system improvements, etc.
• :00.360> system-wide accountability with system-wide accountability with system-wide performance
• . system. system.
• transportation system? transportation system?

Keywords: 1187, senate, all

Transcript Highlights:

• Our top priority remains addressing system infrastructure improvement needs.
• These tend to be smaller-scale efforts that focus on upgrading building systems.
• At the system this year.
• The 27 projects listed utilize the new ranking system; is that accurate?
• The systems are now beyond their lifespan, and it's really about replacement.

Keywords: 988, house, all

Transcript Highlights:

• The thing to do is look at our social programs as well as our workforce system.
• And the same thing goes with, you know, systems integration and data sharing.
• WIOA and the public workforce system is about employment.
• You need a state longitudinal data system.
• And they've got some of their human service system.

Summary: The committee heard a presentation from Nick Moore, Acting Assistant Secretary of the Office of Career and Technical Education, focused on integrating workforce, education, training, and human services systems. Moore argued that WIOA, Perkins, and ESSA should be aligned more closely, with fewer federal and state bureaucratic layers, more state flexibility, and a stronger emphasis on labor force participation, postsecondary attainment, and training tied to in-demand jobs. He said the federal agencies are moving toward combined plan timelines for 2026, encouraged states to pursue combined plans and waivers, and described efforts to streamline reporting, reduce administrative overhead, and expand tools such as integrated intake, cross-training, virtual and mobile service delivery, apprenticeship, and talent marketplaces. Moore also emphasized accountability and outcomes, saying states should measure training-related employment, retention, and the share of funds going to direct services rather than administration. He criticized the current workforce system as too costly and ineffective, and said states should use primary labor market information, better wage records, and employer input to align training with actual job demand. Members asked about balancing flexibility with accountability, the role of employers versus postsecondary institutions, serving rural “training deserts,” state waivers, and data-sharing systems such as Mississippi’s workforce technology efforts. Moore said states can use waivers and technology to create common intake and co-enrollment across programs, and that enhanced wage records are key to better workforce planning. The committee then received a separate update from DHS Secretary Janet Mann and Director Jay Hill on reimbursement rates for aging and adult behavioral health services. They said DHS had compiled more than 100 public comments, submitted a recommendation to the governor to hold current rates, and was awaiting executive review, which they estimated could take 30 to 60 days. Members asked about the timeline and the scope of the legislation requiring monthly reports. The meeting ended with notice of a later audit presentation scheduled for 1:00 p.m. at the Big Mac building.

Transcript Highlights:

• THERE'S WORKFORCE, FLORIDA COLLEGE SYSTEM, AND STATE UNIVERSITY SYSTEM.
• IT'S SHOCKING TO THE SYSTEM.
• NEXT LET'S MOVE TO THE FLORIDA COLLEGE SYSTEM FUNDING MODEL.
• THESE OR OTHER FUNDING SOURCES FLORIDA COLLEGE SYSTEM INSTITUTIONS THAT ARE NOT DEDICATED JUST OUR SYSTEM
• FUNDING FOR FTE FOR EACH INSTITUTION IN THE SYSTEM.

Keywords: 999, senate, all

Transcript Highlights:

• going forward within our systems.
• to our Medicaid uh managed care system. to our Medicaid uh managed care system.
• apply to our system. apply to our system.
• into the health care system every day. into the health care system every day.
• our our eligibility system. our our eligibility system.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:36 Department for Medicaid Services 00:01:44, 958, all

Summary: The House Budget Review Subcommittee on Health and Family Services met for an overview of the Department for Medicaid Services budget. Commissioner Lisa Lee and CFO Steve Beal described Kentucky Medicaid enrollment at about 1.4 million members, including more than 600,000 children, and said the agency’s 2025 total budget was $20.6 billion. They reviewed enrollment trends before, during, and after the COVID-19 public health emergency, noting that redeterminations begun in 2023 reduced enrollment from its peak but that total membership remains above pre-COVID levels. They also explained the difference between the fee-for-service population, which includes long-term care and waiver members, and managed care members, and gave examples of the kinds of services and diagnoses seen in each group. A major focus was the governor’s recommended Medicaid budget and the department’s forecast process. Lee said the budget is split into benefits and administration, with benefits covering fee-for-service services, managed care capitation, transportation, and Medicare premiums, while administration covers contracts, personnel, operating costs, and IT-related advanced planning documents. She said the department uses a consensus forecasting group and actuary input, and that its forecasts have been within 1% of actual spending in recent years. The department also said the governor’s budget includes new waiver slots to address waiting lists, a 2% staff COLA, and a 10% phase-down on state-directed payments beginning in January 2028. Much of the discussion centered on House Resolution 1 and the funding needed to implement its Medicaid-related provisions, including community engagement requirements, six-month redeterminations, and future cost sharing. Lee said the department requested about $35 million in total funds for fiscal 2027, including about $8.2 million in general funds for system changes to the integrated eligibility system, claims processing, notices, and monitoring; and about $11 million in fiscal 2028 for ongoing maintenance, with about $1.6 million in general funds. She said the department expects to seek federal APD matching funds for the IT work. In response to questions, she explained that community engagement would apply to Medicaid expansion members, with qualifying activities including work, school, volunteering, or equivalent income, and that certain groups such as pregnant women, children, caretaker relatives, and some people with chronic disease or substance use disorder would be excluded. She said the department identified roughly 70,000 expansion members who could be subject to the requirement. No votes or formal actions were taken.

Transcript Highlights:

• envisions a just, equitable public health system that centers those facing systemic and cultural oppression
• that access those systems.
• Later this month, we are shifting to a new back-end system for our EBT system.
• Later this month, we are shifting to a new back end system for our EBT system.
• And I did want to take the opportunity. back-end system for our EBT system.

Keywords: 995, all

Summary: The hearing was an informational and oversight session of the Joint Committee on Children, Families, and Persons with Disabilities, with chairs and members hearing agency updates from several commissioners. The Department of Public Health’s Bureau of Family Health and Nutrition described its maternal and child health work, including home visiting, early intervention, WIC, newborn hearing screening, and cross-agency efforts on prenatal substance exposure, respite care, children’s vision, and maternal health initiatives. DPH emphasized that federal grant cuts, layoffs, and the loss of data systems such as PRAMS would weaken services and planning, and members asked about Title V funding and the impact of federal uncertainty. The Massachusetts Commission on the Deaf and Hard of Hearing highlighted communication access services, interpreter and CART referrals, emergency after-hours support, family navigation, and independent living services. Commissioners and members discussed the shortage of ASL interpreters and the need to expand training pipelines, including partnerships with colleges and possible ASL programming for younger students. The Department of Developmental Services reported serving nearly 50,000 people and focused on youth and adult services, transition-age supports, autism services, self-direction, respite, and new high-acuity residential models. Members asked about respite availability, self-direction outcomes, and workforce shortages; DDS said it was expanding clinical capacity and provider rates while monitoring possible federal Medicaid, SNAP, and immigration-related impacts. The Commission for the Blind described services for about 28,000 legally blind residents, most of whom are older adults, including social rehabilitation, orientation and mobility training, children’s services, assistive technology, vocational rehabilitation, and Turning 22 supports. The commissioner discussed a UMass-based effort to build the workforce pipeline for blindness services and said the agency was watching federal restructuring but had not yet seen direct cuts. MassAbility’s leadership then warned about major federal changes affecting Social Security disability determinations, including staff restructuring, office closures, and a new overpayment repayment policy, and said the agency was preparing for possible increases in claims and uncertainty around reallotment dollars that help fund services. The Disabled Persons Protection Commission closed the hearing with an update on its abuse investigations and protective services for adults with disabilities. DPPC reported rising hotline calls and investigations, a growing caseload, its sexual assault response team, the abuser registry, and a new interagency protective services integration system funded by ARPA dollars through 2027. The agency also flagged new federal rules that could affect funding eligibility and said it may need statutory changes to comply. Members asked about funding, reporting pathways, and how complaints reach DPPC, and the commissioner said the agency uses both mandated reporting and proactive outreach to identify and respond to abuse.

Transcript Highlights:

• Parks and Trails System. Parks and Trails System.
• <00:16:38.000> built<00:16:38.480> 60 system is a very mature system built 60 system
• So, um I'll get into our system.
• is in the other systems too. is in the other systems too.
• length of the water systems. length of the water systems.

Keywords: 1183, house

Transcript Highlights:

• Address ongoing system changes at the local level.
• Responsive behavioral health care system for Floridians.
• All of those are important cogs in the system of care.
• The lower the level of care, the less expensive it is for the system.
• So we funded two FTEs, but we've incorporated our complaint management system.

Summary: The Human Services Subcommittee met to receive an update from the Florida Department of Children and Families on implementation of House Bill 7021, which revised the Baker Act and Marchman Act and was funded with a $50 million appropriation. Deputy Assistant Secretary Bill Hardin reported that the department has updated reference guides, training, administrative rules, and forms; launched regional behavioral health collaboratives; and created the Office of Children’s Behavioral Health Ombudsman. He said early data show continued declines in Baker Act use, high diversion rates from involuntary examinations through 988, mobile response teams, and care coordination, along with generally positive provider feedback on changes such as allowing psychiatric nurses to initiate emergency treatment orders and clarifying the 72-hour examination period. Hardin also described Marchman Act changes, including a streamlined petition process, remote testimony, improved discharge planning, and a new annual data report. He said the department has completed or is completing multiple training courses for providers and law enforcement, and has adopted or is finalizing numerous rules and forms. He reported that the regional collaboratives are identifying common statewide needs such as service capacity, resource sharing, funding flexibility, and peer support, while the ombudsman office is handling complaints and helping families navigate services. Members asked about whether the current funding is sufficient, future budget needs, outreach for the new ombudsman office, and services for juveniles. Hardin said DCF has posted legislative budget requests for additional forensic FACT services and short-term residential treatment beds, including children’s beds, and noted the ombudsman office is staffed with two FTEs and supported through existing complaint-management and regional systems. He said outreach is being done through regional collaboratives and coordination with other agencies, especially the Department of Education, and that juvenile transport and placement issues have improved with the new law. No votes were taken, and the meeting adjourned after the presentation and questions.

Transcript Highlights:

• another actuary retained by the systems. another actuary retained by the systems.
• funded through the systems per statute. funded through the systems per statute.
• Uh that and methods of the systems.
• administrative budget of the systems. administrative budget of the systems.
• And then lastly, there's a system.

Keywords: Meeting Start: 00:00:09 Attendance Roll Call: 00:01:42 Approval of Minutes: 00:03:23 Overview of Actuarial Audit Process: 00:03:47 Overview of Reemployment After Retirement Provisions: 00:25:26 Teachers’ Retirement System: 00:25:26 Kentucky Public Pensions Authority: 00:50:32 Adjournment: 01:02:55, 958, all

Summary: The meeting began with quorum, approval of the prior minutes, and an announcement that the June meeting had been canceled and replaced by this combined May/June meeting; the next official PPOB meeting was announced for July 21 at 2:30. Staff then gave an overview of the Public Pension Oversight Board’s required actuarial audit process, explaining that House Bill 238 requires a review every five years of the retirement systems’ actuarial assumptions and methods, funded by the systems themselves. The presentation distinguished this audit from a financial or forensic audit, described the three possible audit levels (full replication, limited/spot review, or basic review), and noted that the last audit in 2021 was a level one performed by Milleman Consulting at a cost of about $190,000. Members discussed timing for the next audit cycle, with a request to LRC likely needed in July or August to target the June 30, 2026 valuation, and several members expressed interest in another level one review. Questions also addressed whether prior audits found major issues; staff said the 2021 review was generally clean but recommended more consistency in reporting and assumptions across systems. The committee then welcomed new staff and interns, including Odet Guanzi of KPPPA and Team Kentucky intern Amamira Bowman. Bo Barnes of the Teachers Retirement System presented an overview of the statutory framework for reemployment after retirement under KRS 161.605. He explained that the law is intended to let retirees return to help with staffing needs, do so in an actuarially sound way through required contributions, and keep TRS compliant with federal tax rules for a qualified plan under section 401(a). Barnes described the required breaks in service and earnings limits for retirees returning part-time or full-time, including the three-month or 12-month break depending on the employer, the 6,900-day limit, and the daily wage threshold based on years of service. He also noted a lightly used critical shortage program that allows school districts to hire retirees without a wage cap, while still observing the break-in-service rules. Members asked questions about who decides the scope and level of the actuarial audit, how the audit would treat leave balances and other benefit-related items, and whether the prior level one audit identified substantial problems. Staff said the committee would request the audit, but LRC would handle contracting, and that the audit scope could include items like sick leave and annual leave costs if requested. On the reemployment topic, Barnes emphasized that the rules are designed to avoid pre-arranged retire-and-return arrangements that could jeopardize TRS’s tax-qualified status. No formal votes were taken beyond approving the minutes, and the meeting concluded with the presentations and discussion of these pension oversight issues.

Transcript Highlights:

• disruption the re reproductive system disruption the re reproductive system that<00:05:12.120>
• <00:30:05.760> not I think uh issues uh of systems not I think uh issues uh of systems not
• <00:30:54.480> to uh the system to uh the system to review<00:30:56.360> um<00:30:56.919
• about number of people in the system about number of people in the system together<00:37:24.400>
• <00:37:42.640> as the system as the system as well<00:37:44.319> commissioner<00:37

Keywords: 919, house, all

Summary: House File 435 was taken up with an author's amendment that added a definition of “female,” “woman,” and “girl” based on biological sex. The committee debated the amendment at length, with supporters saying it was needed for clarity and opponents arguing it was unscientific, dehumanizing, and imported from outside model legislation. The amendment was adopted, and the bill was laid over because no fiscal note had yet been received. As amended, HF 435 would require the commissioner of Corrections to house only biological females at the Minnesota Correctional Facility in Shakopee and to transfer any nonbiological females out within seven days of enactment. Chair Franson described it as a common-sense women’s rights and human rights bill intended to protect incarcerated women. Alicia Beckman, a former Shakopee GED teacher, testified in support, saying the current policy had allowed biological males with violent histories into the facility and created fear, retraumatization, and safety concerns for staff and inmates. Several testifiers opposed the bill. Deva Guy, Lucy Ailia G., Reverend Dr. Justin Saia Tannis, and Jess Braverman argued that the bill would endanger transgender women, scapegoat a vulnerable minority, and conflict with research, the Prison Rape Elimination Act, and constitutional protections. They urged the committee to focus instead on broader prison conditions and safety issues. Committee members also questioned Department of Corrections Commissioner Paul Schnell about the placement process; he explained that transgender placements are reviewed through a multi-step process involving behavioral health and medical staff, a gender identity committee, and final review by the deputy commissioner and commissioner. He said 49 people systemwide have identified as transgender. The discussion ended with the bill laid over and the chair noting that a constitutional challenge would likely follow if the bill became law.

Transcript Highlights:

• our state employees and all the systems our state employees and all the systems are<00:27:06.880
• , but of the company that the pension system is invested in, because the pension system needs the highest
• , but of the company that the pension system is invested in, because the pension system needs the highest
• , but of the company that the pension system is invested in, because the pension system needs the highest
• > not targeted the pension system and said not targeted the pension system and said please<00:32:09.480

Keywords: Meeting Start: 00:17 Attendance Roll Call: 00:41 Approval of Minutes: 02:40 HB 694: 03:16 SB 183: 18:32 Discussion on PPOB Membership: 36:10 Adjournment: 42:35, 958, all

Summary: The committee first approved the minutes from its January 27 meeting and then took up House Bill 694, which would create a default rule for the Teachers’ Retirement System health insurance trust fund once it reaches 100% funding, currently anticipated around 2027. The bill would redirect two funding streams now going to the health trust—state payments on behalf of local districts and other employer contributions—into TRS pension benefits if the health fund reaches and maintains full funding. The sponsor said this would add about $154 million annually to TRS pensions and would only serve as a default if no other plan is adopted later. Members asked whether the bill would shift the unfunded liability to teachers or affect employee contributions. The sponsor and staff said it would not shift liability to teachers and would not change the employee contribution; only the employer-side payments would be redirected. Several members asked about the meaning of actuarial 100% funding, whether the fund could fall back below 100%, and whether employee contributions might be reduced in the future. The sponsor said the bill is based on actuarial projections, would revert the money back to the health trust if funding fell below 100%, and does not prevent future legislative or board action. Senator Higdon and others spoke in support of discussing the issue, noting the 2010 shared-responsibility changes and the need for a default approach as full funding is reached. The committee then heard Senate Bill 183, which would amend Kentucky law governing proxy advisers used by retirement systems. The sponsor said the bill would require proxy advisers, when handling shareholder-sponsored proposals, to act solely in the interest of retirement system members and beneficiaries and to provide an economic analysis when voting against a company board’s recommendation. He argued the measure is aimed at proxy advisers such as ISS and Glass Lewis, which he said often advance ESG-related proposals not tied to shareholder value. A guest from APCIA said the bill is meant to distinguish proxy advisers from investment managers and to strengthen the 2023 law by requiring a clearer economic justification for votes that depart from board recommendations. Members asked how proxy advisers differ from other financial advisers, whether Kentucky uses them, and whether the bill would prevent pension funds from investing in companies with ESG factors if those investments are profitable. The sponsor and guest said the bill would not bar such investments; it is intended to regulate proxy voting recommendations, not investment decisions. They described the bill as a proactive measure to reinforce fiduciary responsibility and limit outside proxy influence on pension voting. No final vote on either bill was taken in the portion of the meeting provided.

Transcript Highlights:

• Obviously, we set this system up.
• Systems in place today range from sophisticated systems to simple Excel spreadsheets, but there's not
• Systems in place today range from sophisticated systems to simple Excel spreadsheets, but there's not
• in the system.
• in the system.

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• These yet these modernization system.
• And system before we just turn it off.
• So, it's and a good operating system.
• That's the information software system That's the information software system developed<00:21:26.880
• That's for maintenance costs, system.

Keywords: 00:01 Call to Order and Roll Call 00:47 Maintenance 12:40 Approval of Minutes 12:55 Vehicle Regulation 21:08 General Admin and Highways 34:11 Adjournment, 958, all

Summary: The House Budget Review Subcommittee on Transportation met without a quorum at first, then later approved the minutes once quorum was established. The committee heard presentations from Transportation Cabinet officials Mike Hancock, Jeremy Slinker, and Sean McCarnieran on maintenance, vehicle regulation, general administration, highways, and related capital projects. Hancock emphasized that maintenance is the cabinet’s most visible public service, especially for snow and ice removal and routine roadway upkeep, and said rising costs have outpaced funding. He cited a 61% increase in highway construction costs since 2020 and said maintenance spending was $488 million in FY 2024 and $511 million in FY 2025, while the FY 2026 baseline request was $483.3 million. The cabinet’s additional maintenance request would add $23.6 million in FY 2027 and $38.6 million in FY 2028, with expected impacts on litter pickup, mowing, vegetation management, and pothole repair if not funded. The cabinet also outlined five maintenance-related capital projects: additional funding for Ballard County maintenance/salt storage, Hopkins County maintenance/salt storage, Whitley County maintenance/salt structure, and the District 2 office and materials lab, plus reauthorization of the Breckinridge County maintenance and salt facility. Hancock also asked for budget language allowing the cabinet to use unexpected restricted and federal funds more quickly, similar to existing authority for federal earmarks. McCarnieran described the governor’s inclusion of funding for the ASHTOWare system, employee health exams, priority IT projects, and a District 7 office renovation request, noting that some items were not funded because they ranked low among competing projects. He also said the governor’s budget included a $7.5 million annual maintenance pool for the cabinet’s 1,200 facilities and requested additional restricted fund authority for Trimark and the Cumberland Gap Tunnel. Slinker focused on the Department of Vehicle Regulation, saying recent investments in staffing and equipment had reduced wait times and improved customer service in driver licensing offices. He requested $535,600 to keep temporary contract workers in place for the rest of the year, warning that without it regional office operations would have to be reduced. He said the surge in demand was driven by new 15-year-old licensing requirements, vision testing, and Real ID implementation, but believed the volume was beginning to level out. He also outlined FY 2027 and FY 2028 plans totaling $20.38 million and $19.85 million, including six new regional offices and a shift away from temporary workers toward state positions. Additional requests included $106,000 for debt service on the new driver’s license modernization system and operating costs of $5 million in FY 2027 and $2.5 million in FY 2028 to support the transition from the old system. Members asked about the cabinet’s funding sources, and officials said the road fund is the primary source, supported by motor fuels tax, usage tax, driver-related receipts, and some restricted funds; they stressed that the requests were not for additional general fund dollars. Questions also covered employee health exam reimbursements, the annual Trimark/Cumberland Gap contract, and the District 7 renovation request. No votes were taken on the budget items during the meeting, beyond approval of the minutes.