Transcript Highlights:

• We are entering into an audit RFP for auditing.
• We are entering into an audit RFP for auditing.
• We are entering into an audit RFP for auditing.
• Oh, I guess audit want to do the audit.
• <01:07:47.359> auditing<01:07:47.760> auditing of insanity auditing auditing auditing

Keywords: 912, senate, all

Summary: The Department of Health presented its supplemental budget requests and described several sources of uncertainty affecting federal funding, including policy changes, shutdown-related disruptions, and shifting appropriations proposals in Congress. Officials said some federal grants had been terminated and then restored, but the department still faces added administrative burden to access funds. They also said trust in public health institutions has declined, and outlined efforts to respond through community engagement, website cleanup, social media, and transparency dashboards. The department highlighted staffing and operations issues, noting a 29.7% vacancy rate and the success of its hiring pilot under Act 291, which has hired 38 candidates with an average 95-day hiring timeline. On the budget side, officials said the supplemental request includes increases in general, special, and revolving funds, and they walked through the first major general fund item for emergency medical services. After discussion, they said the EMS request was reduced from $8 million to $4.5 million to cover collective bargaining increases and keep contracts whole through August 2027. Behavioral health items included the payment crisis center in Ewa, which has connected more than 2,000 people to services, though roughly one-third remain unconnected or return frequently. Members questioned the quality of follow-up data and whether the program is reducing repeat use. The department also discussed state hospital decompression efforts, including use of the behavioral health crisis center, transfers to community hospitals, neighbor-island placements, and direct discharge to long-term care facilities; officials said the hospital is licensed for 292 beds and has seen census pressures rise again. A substantial portion of the hearing focused on Kalaupapa/Kalawao jurisdiction and preservation after patient care ends. Members pressed the department on the lack of a clear statewide plan, the roles of DOH, DNR, and DHHL, and what happens to land, buildings, and the cemetery after the last patient leaves. DOH said the current law is unclear on an end date, that the proposed bill would change the law, and that the landowners’ agreements with the National Park Service and each other will shape the transition. Officials said they would provide more information at a later hearing.

Transcript Highlights:

• audit rights based on however the contract is laid out.
• the contract as far as auditing goes.
• recoup from community pharmacies for these audits.
• Currently, PBMs have unfair rules in these audits. pharmacies.
• recoup from community pharmacies for these audits.

Keywords: 995, all

Summary: The committee held a lengthy hearing on a large docket of pharmacy and drug-pricing bills, with most testimony focused on PBM reform, 340B drug discount program protections, specialty medication access, and medication adherence. Chair James Murphy and Senator Paul Feeney opened the hearing and took testimony from legislators, patient advocates, pharmacists, health center leaders, industry representatives, and policy groups. Several speakers described delays, denials, high out-of-pocket costs, and pharmacy closures tied to PBM practices, while others emphasized the importance of community health centers and independent pharmacies in serving patients. On the 340B program, supporters including Senator Eldridge, Senator Payano, Community Care Cooperative, Fenway Health, the Massachusetts League of Community Health Centers, and several community health center leaders argued that bills such as H. 1107 and S. 819 would stop discriminatory PBM and manufacturer practices, preserve contract pharmacy access, and protect safety-net providers that say they reinvest savings into care, pharmacy expansion, interpreter services, behavioral health, and other services. Opponents including PhRMA, the Community Liver Alliance, and a public policy analyst argued the program lacks transparency and accountability, has grown beyond its original purpose, and may benefit large hospitals and for-profit entities more than low-income patients. They urged more reporting and oversight rather than expanding protections. On PBM reform, testimony supported bills including H. 1157, H. 1234, S. 724, S. 831, and related measures that would require rebate pass-through, ban spread pricing, limit steering to PBM-owned pharmacies, and improve reimbursement for community pharmacies. Independent pharmacists and patients said current PBM practices raise costs, create administrative burdens, and threaten access to local pharmacies. PCMA, representing PBMs, opposed the reforms, arguing PBMs lower costs, that plan sponsors choose to contract with them, and that the Health Policy Commission and CHIA should complete their ongoing study before new mandates are adopted. The committee also heard support for H. 1322 and S. 734 on specialty medications, and for H. 781 and H. 1305 on medication synchronization to improve adherence. No votes or formal actions were taken during the hearing.

Transcript Highlights:

• Okay, somebody gets audited. They come in an appeal.
• They’re only in the audit program.
• They're only in the audit program.
• It has to do with coverage rate on your audit coverage.
• And that's what our audit selection program is focused on.

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

Transcript Highlights:

• passed a federal audit and a state<00:15:26.639> audit<00:15:27.760> without<00:15:28.399
• And then the last point here is accreditation and audit review teams.
• And then the last point here is accreditation and audit review teams.
• And then the last point here is accreditation and audit review teams.
• And then the last point here is accreditation and audit review teams.

Keywords: Appropriations - Room 216, 14 January, 2026; 1:00 PM, 925, all

Summary: The committee first heard a budget presentation from a charter-school authorizer agency. Witnesses explained that the agency no longer receives the federal CSP grant, that a one-time $499,000 equipment grant was not recurring, and that in FY25 they also had no general fund appropriation. They said their special-fund revenue has grown but is not enough to sustain operations alone, especially because the money arrives once a year and the agency needs a cash balance in advance. Their budget request sought a mix of general and special funds, but the legislative budget recommendation stayed near the FY26 appropriation level. Members asked about salary growth and contractual spending; the agency said higher salaries reflected doctorate-level staff and a planned sixth position, while contractual costs covered technical assistance, consultants, CPA reviews, and outside legal support. The agency also said a pending bill, identified as House Bill 2, could significantly affect its operations and revenue. Members asked about Republic, and the agency said a peer report had just been released, the school had made operational changes, and progress was being made though questions remained. The Library Commission then presented its budget request. The outgoing director announced retirement and introduced the incoming director, and praised the agency’s recent federal and state audits with no findings. The commission asked to restore two headcount reductions in the budget recommendation, saying the positions were hard to fill because they require specialized librarianship credentials and that losing them would cost about $130,000. It also asked to restore federal spending authority in case IMLS funding became uncertain, and requested about $173,000 for a 5% salary progression pool because turnover had reached 35% and many employees were near the start step. Senators asked about the open positions and turnover; the commission said one position had been open 10 months, another about eight months, and some turnover was due to retirements. Mississippi Public Broadcasting then presented its request for an $18.153 million appropriation. The agency said it wanted salary progressions to retain staff, four new vehicles for engineering and transmitter work, and $522,000 in reappropriated digitization funds to continue a project that has digitized more than half its library holdings for online access. The director also highlighted programming and outreach, including a new food-focused show, a music program, live coverage of the National Folk Festival, a Medgar Evers documentary now in national distribution, and expanded radio programming. He said MPB reaches nearly 1 million TV viewers annually, has strong radio and app usage, and continues to provide required weather, Silver Alert, and Amber Alert notifications. He also described a partnership with the Department of Education using e-glass technology to connect teachers to classrooms lacking instructors, saying the program is already serving multiple districts and drawing national interest.

Transcript Highlights:

• The department has never had an audit, and we recommend that an audit be done.
• Number one, as we said, perform an audit of that.
• There's no reason for us to have an audit of an audit performed.
• Can you respond on the audit part that was mentioned?
• Are you referring to the part of the audit every four years? Yes?

Summary: The Assembly Budget Subcommittee 5 on State Administration heard presentations from Go-Biz and the Department of Financial Protection and Innovation on the Governor’s budget proposals. Go-Biz described California Jobs First, the state’s 10-year economic development strategy, and emphasized support for small businesses, workforce development, and targeted investment in sectors such as ag tech, life sciences, semiconductors, and advanced manufacturing. Members raised concerns about federal policy changes, tariffs, tourism, housing, child care, and whether state incentives are truly additive; Go-Biz responded that it tracks federal actions closely, works with chambers and advocates, and uses programs like California Competes to target jobs that would not otherwise come to California. The committee then reviewed the proposal to restore the California Competes grant program with $60 million. Go-Biz said the grant would help businesses that cannot use the nonrefundable tax credit, and explained the program’s five-year contracts, milestone-based awards, and recapture provisions. The Legislative Analyst’s Office said the grant could be effective but recommended stronger oversight and clearer eligibility criteria, while also noting the 30% cap in trailer bill language may be too restrictive given the smaller funding level. Public testimony supported the grant and suggested considering refundability or transferability for the tax credit to broaden access for smaller and startup businesses. Members also heard the CHIPS-related proposal for $25 million to support Natcast’s semiconductor design and collaboration facility in Sunnyvale. Go-Biz and public witnesses argued the state investment would help secure a major federal research facility, retain engineering talent, and leverage billions in broader investment, while the LAO recommended rejecting the item because of its dependence on uncertain federal funding and the state’s budget condition. The committee also considered a $17 million continuation of CA RISE, which supports employment social enterprises; Go-Biz and several grantees cited strong job placement and workforce outcomes, while the LAO recommended rejection absent a more rigorous evaluation, noting prior LA RISE evidence did not show long-term employment gains. Finally, the Department of Financial Protection and Innovation presented budget requests for IT security and rent increases, and a trailer bill to raise fees across several programs. DFPI said decades-old fee schedules, inflation, and new regulatory responsibilities have created a structural deficit and warned the department could face insolvency without adjustments. The LAO recommended approving the fee increases only on a three-year limited-term basis and asked for more detailed revenue plans for programs not covered by the proposal, so the Legislature can assess actual collections and market impacts before making the changes permanent.

Transcript Highlights:

• Just very quickly, the audits that are behind the City of Livingston—do we know how many audits they're
• Do you know what statutory authority there is to hold the funding when DLG reports lack of audits?
• uh that are very quickly U the audits uh that are behind<00:21:09.480> city<00:21:09.720>
• they're behind or what how many audits they're behind or what years<00:21:13.600> they're<00:
• the exact statutory behind on its audit the exact statutory authority<00:21:40.240> to<00:21:

Keywords: 00:13 Call to Order and Roll Call 01:00 Election of Co-Chairs 03:38 Approval of Minutes 04:09 Information Items 05:55 Project Rpt from Finance and Admin Cab 12:13 Lease Rpt from Finance and Admin Cab 17:48 Ky Infrastructure Authority 28:50 Economic Development - EDF Grants 32:50 Ofc of Financial Mgmt 36:30 SFCC Debt Issues 40:50 Adjournment, 958, all

Summary: The committee first reorganized by electing new co-chairs for the Capital Projects and Bond Oversight Committee: Senator Fanny Fromom? as Senate co-chair and Representative McPherson as House co-chair, both by acclamation. The committee then approved the minutes from the prior meeting and received quarterly capital project status reports from the Administrative Office of the Courts, Finance and Administration Cabinet, and postsecondary institutions. Those reports noted University of Kentucky equipment purchases, several school districts planning general obligation and revenue bond issues, a notification of non-approval for PR 3567, and Kentucky Community and Technical College System asset preservation projects. Kevin Cardwell of the Finance and Administration Cabinet reported two action items: a $5,100 federal-funded Transportation Cabinet renovation of the Rowan County east and westbound rest areas, and a $1 million federal fund increase for the Capitol City Airport terminal building project, bringing the total federal support to $10 million and reducing the need for restricted funds. The committee also received a no-action report on a $1,363,000 Kentucky State University exterior repairs project funded through the 2024 asset preservation pool. Both action items were approved unanimously after roll call votes. The committee approved four lease renewals presented by Natalie Bronner for Cabinet for Health and Family Services locations in Bell, Lee, and Clay counties, plus a parking lease for the Department of Corrections in Jefferson County. Members asked about lease pricing and were told renewals must remain at existing terms and conditions. The committee then approved a $57,000 Kentucky WATS emergency grant for Wood Creek Water District to cover part of arrears tied to the City of Livingston; members discussed the city’s audit delinquency, possible regional water/sewer solutions, and concerns about rates and private involvement, but the grant was approved. Finally, the committee approved a $1 million line-item water grant to the City of Williamsburg with no action required, three Economic Development Fund grants for Bell, Franklin, and Shelby counties totaling $8 million in state support for site acquisition and infrastructure work, and five SFCC-supported school debt issues for Elizabethtown Independent, Erlanger Independent, Boyd County, Henderson County, and Union County. The school projects included middle school, high school, and vocational school renovations or new construction, and members requested a breakdown of the space funded by the debt. All action items were approved, and the meeting adjourned.

Transcript Highlights:

• They audit those inquiries fairly rigorously.
• Over the four-year audit...
• If anything, the lesson of this audit is the opposite.
• I was obviously shocked by what happened with this audit, but looking back in past audits, I think the
• In each of those audits, it's interesting because instead of using the fund balance in those audits,

Keywords: 908, all

Transcript Highlights:

• Taxable accounting services are defined as including but not limited to audits, bookkeeping, financial
• Taxable accounting services are defined as including but not limited to audits, bookkeeping, financial
• Taxable accounting services are defined as including but not limited to audits, bookkeeping, financial
• , including but not limited to audits, including but not limited to audits, bookkeeping,<00:26:14.000
• , as audits, bookkeeping, However, as audits, bookkeeping, financial<00:26:36.000> statement<00

Keywords: 1187, senate, all

Transcript Highlights:

• robust uh compliance and auditing robust uh compliance and auditing system<00:53:45.960> that
• audited financial report any independent audited financial report or<01:10:57.120> anything<01
• There was a revision made to what's called audit scope, so it was called limiting the audit scope, and
• LBA will in fact conduct an audit LBA will in fact conduct an audit conduct<01:26:46.360> an<
• Question: So this is an audit by yourselves of yourselves? It's just a report, not an audit.

Keywords: 928, house, all

Summary: The committee opened a public hearing on HB 402, a bill dealing with whether Education Freedom Account (EFA) payments should be described in state law as not constituting taxable income. The bill sponsor argued that the current statute is misleading because New Hampshire should not imply a federal tax result, and said the bill would remove that language and could also be amended to clarify that families should consult tax advisors. He emphasized that the measure was not intended to impose a state tax on EFAs, but to avoid giving inaccurate advice about possible federal tax liability. Testimony was divided. A retired representative and a tax preparer both opposed the bill, saying EFA payments are already treated consistently with IRS rules and that the bill would create confusion, administrative burden, and possible tax consequences for low- and moderate-income families. They argued the bill is a solution in search of a problem and warned that requiring 1099s could add costs for the scholarship organization and recipients. A tax attorney supported the bill’s repeal of the state language, saying New Hampshire should not put tax advice into statute and that the current wording is inaccurate because federal law, not state law, controls taxability. He cited IRS Section 117 and Publication 970, explaining that only some scholarship-like payments are tax-free and that many EFA-eligible expenses may not qualify for federal exemption. Members asked questions about what would be misleading, whether the bill was trying to tax EFAs, and the cost of issuing 1099s. The sponsor and witnesses repeatedly said the bill was not a state tax on voucher payments, but a clarification about federal tax treatment. No vote or final committee action was taken in the portion provided.

Transcript Highlights:

• It also mentions that we're subject to the state auditor audits.
• Multiple audits a year, um, and we have had a great, uh, record of unmodified audits with over 3 decades
• or CAP, and we also have federal annual award audit and our external auditing firm is Clifton Larson
• Other than external audit, we also have internal audit and we have the contract with Moss Adams as an
• Other than these mandatory audits, we also have subjected to discretionary audits which we don't face

Transcript Highlights:

• We also have five reports without findings, and these are listed on page one of the audit summary.
• of almost $59,000, could not be physically located for observation and/or properly identified for audit
• State Park, the $100 in camping drawer funds could not be located by park staff at the time of our audit
• , and at one more stadium, it was discovered at the time of our audit that the change fund had an $80
• It was discovered at the time of our audit that the change fund had an $80 overage.

Summary: The committee opened with prayer and approved the January minutes, then heard a series of audit reports with findings. The Department of Human Services report described theft and fraud involving false benefit claims, including about $8,000 in Disaster Supplemental Nutrition Assistance Program benefits, about $5,800 in Medicaid benefits, and an altered state warrant for nearly $610,000 that was cashed by an auto body shop in California; it also noted asset-control problems and an error in sales tax paid on exempt vehicle purchases. Members asked whether the fraudulent business had been flagged or notified to other agencies, and DHS said the matter had been referred to law enforcement but no broader notification to California officials was known. The Department of Parks, Heritage, and Tourism report cited missing museum receipts of nearly $3,500 and issues with change funds at Daisy State Park and War Memorial Stadium, including a missing $100 drawer fund and an $80 overage; officials said they were considering cashless operations at War Memorial Stadium and provided an update that the museum theft investigation was still ongoing, with misdemeanor time limits expired but felony investigation still possible. The Department of Corrections report found unauthorized fuel-card purchases totaling about $4,500 and a delayed disaster-recovery test for offender management software; Corrections said staffing had been increased for fuel-card oversight and that a full production disaster-recovery test was now scheduled after DIS upgrades were completed. The Department of Veterans Affairs report found four Fayetteville Veterans Home employees were paid for hours not worked, with additional unapproved overtime totaling more than $6,600, a duplicate vendor payment of nearly $1,000 that was refunded, and many overtime instances lacking proper approval; the department said it had tightened overtime approval policies statewide. The committee also received a special report on law enforcement agencies’ compliance with Arkansas’s racial profiling policy requirement. Legislative Audit said it had received responses from 203 of 383 agencies and forwarded updated policies to the Attorney General, while identifying 180 agencies that had not responded and were deemed out of compliance. Members asked what happens if agencies still fail to respond and requested a list of nonresponding agencies; staff said their role is limited to collecting and forwarding policies, and the committee agreed to receive the list. All reports were filed or reviewed without objection, and the meeting adjourned after announcing the next meeting date and a possible room change due to building work.

Transcript Highlights:

• Um, we're basically, you know, removing some audit requirements on our small cities and I was able to
• them<00:14:30.880> the<00:14:31.040> money<00:14:31.199> of<00:14:31.519> audit
• but it satisfies them the money of audit but it satisfies the<00:14:33.199> examiner's<00:14:
• basically, you know, removing some audit basically, you know, removing some audit requirements<00
• Before I even brought this bill up, preparers came to me, which ones are selling the audits basically

Bills: HB2, HB163, SB326, HB17, HB363, HB2, HB163, SB326, HB17, HB363, SB333

Keywords: vaccination, parental consent, minors, medical consent, guardian approval, income tax, research expenditures, economic development, tax deductions, Tax Cuts and Jobs Act, Alabama tax law, sheriff, credit card, debit card, financial procedures, Jackson County, purchasing authority, HB17, Alabama Squat Truck Law, squat truck

Transcript Highlights:

• forensic audit or any type of audit forensic audit or any type of audit requested<00:59:13.839><
• forensic audit? forensic audit?
• And so maybe a forensic audit isn't the route. Maybe it's some kind of audit.
• And so maybe a forensic audit isn't the route. Maybe it's some kind of audit.
• I know audits take time. six months. I know audits take time.

Keywords: 1189, house, all

Transcript Highlights:

• One of the things that I would like to see maybe in the future is actually set up some audits.
• I know there are reports, but that's not the same as an audit.
• I know there are reports some audits.
• do, but that's not the same as an audit. do, but that's not the same as an audit.
• be important to build in some audit be important to build in some audit features<00:18:10.160>

Transcript Highlights:

• Even the most recent audit on the Department of Human Services Behavioral Health Administration, they
• Even the most recent audit on the Department of Human Services Behavioral Health Administration, they
• Even the most recent audit on the Department of Human Services Behavioral Health Administration, they
• Even the most recent audit on the Department of Human Services Behavioral Health Administration, they
• Even the most recent audit on the Department of Human Services Behavioral Health Administration, they

Keywords: 1187, senate, all

Summary: The discussion focused on fraud in Minnesota public assistance and human services programs, with an emphasis on the harm done to vulnerable recipients rather than just the dollar amounts. The senator described cases involving childcare, PCA, adult daycare, autism, housing support, and food programs, arguing that fraud and poor oversight leave children, disabled people, nursing home residents, and others in neglect or unsafe conditions. He said many of the programs are Medicaid-related or state-funded entitlements intended to address social needs, and that stolen funds directly worsen outcomes for those they are meant to help. He traced the problem to weak state oversight and agency inaction, citing the creation of the DHS Office of Inspector General after earlier childcare fraud concerns, whistleblower reports, and alleged failures by agency leadership to pursue larger, organized schemes. He pointed to the Feeding Our Future case as a major example, saying federal investigators uncovered broader fraud patterns across multiple programs and that state agencies failed to act despite warning signs. He also said recent audits, including one involving DHS Behavioral Health Administration, showed inadequate site visits and other serious deficiencies. The senator said he recently met with federal officials in Washington, D.C., because a large share of Minnesota spending includes federal dollars and federal partners have a stake in preventing misuse. He argued that federal action is necessary but not sufficient, and that Minnesota also needs stronger internal controls, standardized eligibility verification, identity and residency checks, site visits, and better use of data tools. He supported creating an independent Office of Inspector General passed last session, but said it is only a partial solution and that agencies themselves must be retrained and held accountable. No formal votes were taken in the exchange, but the senator described ongoing legislative efforts and said he was pessimistic about the governor’s willingness to act.

Transcript Highlights:

• What this bill does is it increases the threshold for the audits for the conservation districts.
• <00:07:47.599> for<00:07:48.360> the for the uh uh audits for the for the uh uh audits
• So I think this is something that we need to look at, some of the thresholds for these audits all across
• which are very expensive and for audits which are very expensive and very<00:09:14.560> hard<
• for these audits all across the<00:09:26.279> board<00:09:26.640> there<00:09:26.839><

Keywords: 00:00 Meeting Start 00:45 Attendance Roll Call 01:50 Introduction of New Members 07:10 Discussion of HB 24 09:36 Roll Call Vote 12:20 Discussion of HB 216 19:25 Roll Call Vote, 958, all

Summary: The Agriculture Committee met for its first meeting of the 2025 session, with the new chair opening the meeting, confirming a quorum, announcing the House’s 24-hour rule for committee substitutes and amendments, and welcoming several guests and new committee members. The chair also emphasized agriculture’s importance to Kentucky’s economy, citing crop revenue and the broader economic impact of the sector. The committee first considered House Bill 24, which would raise the audit threshold for conservation districts from $750,000 to $1 million. Supporters said the bill updates an outdated threshold and helps reduce the burden of costly audits amid inflation. The bill received a motion and second, no opposition was raised, and it passed by roll call vote. The committee then took up House Bill 216, presented by the vice chair and Brandon Reed of the Kentucky Office of Policy. The bill would allow certain Department of Agriculture employees to apply for grants or loans while preserving the existing prohibition for employees who oversee those programs. Testimony explained that the office’s funding comes from tobacco master settlement dollars, with a formula that directs money to agriculture and other purposes, and members discussed the importance of keeping those funds in Kentucky. The bill passed with favorable expression by roll call vote. Before adjournment, members made additional welcoming remarks for local officials and guests, and the chair noted the National Farm Machinery Show and tractor pull as a major event for Kentucky agriculture. The committee then adjourned.

Transcript Highlights:

• They audit those inquiries fairly rigorously.
• Together, those funds moved roughly $4 million over the audit period.
• I was obviously shocked by what happened with this audit, but looking back in past audits, I think the
• because instead of using the fund balance in those audits, they use revenue.
• And so, I mean, within, we just did an audit of 24 and 25 releases.

Summary: The committee opened with a moment of silence honoring a deceased member, then approved the April minutes. The first major presentation was from Chelsea Florey of Child and Family Services on the Diversion Task Force and related grant programs created with one-time funding from HB 1012. She reported that five of six proposals were funded, with youth diversion services operating in Bismarck, Fargo, Grand Forks, Minot, and a Red River Children’s Advocacy Center program focused on problematic sexualized behavior. Members discussed barriers such as staffing shortages, voluntary family engagement, service fatigue, and the need for better coordination, broader outreach, and possible changes to diversion eligibility rules so low-level cases can remain in diversion longer. Several legislators pressed for more practical system changes and clearer service navigation, while Florey said the task force is trying to build a service array or hub and is leaning on the Children’s Cabinet for broader recommendations. The committee then heard from North Dakota Lottery Director Thomas Lawler, who gave an operational overview and biennium report. He described the lottery’s history, games, retailer commissions, Pick and Click subscriptions, Players Club membership, and revenue distribution. For the 2023-25 biennium, about $67 million in tickets were purchased, with roughly $16.2 million transferred overall, including money for the general fund, drug task force grants, and compulsive gambling prevention and treatment. Members asked about the compulsive gambling allocation and whether the amount is set by statute. A lengthy presentation followed from the Department of Corrections and Rehabilitation on criminal justice data connectivity and reentry. Adam Anderson explained that North Dakota’s jail, court, HHS, and correctional systems use multiple separate databases that do not communicate in real time, requiring manual cross-checks and staff communication. He said the department is exploring a centralized hub or other integration approach, but noted challenges with identifiers, vendor contracts, confidentiality, and cost. Robin Schmolenberger then updated the committee on a Medicaid data-sharing project with HHS, saying monthly application assistance is now occurring in correctional facilities and that automated bi-directional data exchange is expected in late 2026 to help suspend and reactivate Medicaid coverage and identify former foster care youth. Members also discussed parole, probation, transitional housing, and the need for better real-time notifications and clearer data definitions. The committee also received an update from county representatives on the 24/7 sobriety program, including a recent attorney general opinion that if a court waives 24/7 fees, sheriffs may use the cheaper twice-daily breath test or urine testing instead of SCRAM bracelets or drug patches. Finally, Bruce Johnson of the Racing Commission presented on an audit report, acknowledging serious findings involving overspending from the promotion fund, grant documentation failures, a breeders fund eligibility reversal, and repeated procurement violations. He said the commission has already changed its procedures by tracking fund limits monthly, requiring grant applications and itemized reports, enforcing breeders fund rules as written, and routing purchases through procurement with written contracts. The committee asked follow-up questions throughout but took no formal votes on these presentations.

Transcript Highlights:

• It might be the LBA, it might be a federal audit, it might be the single audit.
• We do audits in my division. We also work as a liaison when we get audits.
• <01:29:47.679> uh audit it might be the single audit uh audit it might be the single audit
• audit.
• in the most recent audit.

Keywords: 1189, house, all

Summary: House Finance Division III convened a work session on the DHHS budget, with the chair noting there would be no votes and that the committee would spend the day hearing from the commissioner’s office. Nathan White, DHHS Chief Financial Officer, opened with the Division of Finance/Office of Business Operations, explaining that the unit supports the department through daily financial management, AP/AR, audit work, expense projections, transfers, and procurement functions such as contracts, amendments, RFPs/RFAs, and grants management. He also described the division’s revenue and reporting work, including federal draws, CMS-64 reporting, and the public assistance cost allocation plan, and said the department had centralized rate-setting work and a small team handling Medicaid rate analysis and nursing facility rebase work. Members asked about vacancies, turnover, and budget changes. White said the division had 18 positions unfunded in the governor’s budget, reducing personal services from about $10.8 million to $9.9 million, and estimated the division’s vacancy rate at about 11 percent, below the department average. He said turnover was relatively low, with one retirement at the manager level and higher turnover mainly at lower AP-level positions. He also explained that some budget lines reflected reallocations rather than new spending, including fringe benefits centralized elsewhere and an EBT card contract moved into this unit because the staff member overseeing it works in Finance. When asked about a rent/lease increase, he said it was due to higher copier leasing costs under a statewide DAS contract. White highlighted several management and technology improvements. He said a business intelligence tool procured in 2022, using Salesforce and Excel-based data, helped DHHS better track federal revenue and maintenance-of-effort spending, reducing FY24 General Fund lapse by about 70 percent and federal/other revenue lapse by 88 percent compared with FY23; he warned that the tool is not funded in the current budget. He also described Lean Six Sigma efforts in the contracts team, training for vendors and nonprofits on procurement and indirect cost rules, and a Finance Academy to standardize policies and procedures. On the contracts side, he said the department uses Smartsheet for project management and DocuSign for electronic signatures, which cut contract execution time dramatically, but noted DocuSign is also not funded in the governor’s budget. The session ended as the committee prepared to move on to the Employee Assistance Program presentation.

Transcript Highlights:

• They all have audits, right?
• An audit is only a fair audit if the information is there, and so because of the FBI investigation and
• On the CAC's website, along with their audit, because here's the deal.
• That audit goes to the federal level.
• All of those audits are available to the public.

Bills: HB2510, HB3589, HB4611, HB4655, HB4665, HB4666, HB4670, HB4700, HB4730, HB4798, HB4838, HB5136, HB5243, HB5302, HB5539

Keywords: assisted living, healthcare, licensing, criminal offense, personal assistance, group home, regulation, health and safety, inspections, resident care, criminal background checks, adoption, parental rights, registry, vital statistics, disclosure, counseling, foster care, independent living, financial literacy

Transcript Highlights:

• If the local government has been subject to the legislative audit committee’s audit within one year after
• This amendment is technical and simply moves the audit language to the appropriate section of statute
• This amendment is technical and simply moves the audit language to the appropriate section of statute
• So right now, J-LAC can put somebody under audit, and, as I've seen in my own community, they can be
• under audit for six to eight years, basically thumbing their nose at the Legislature and not fixing the

Summary: The Appropriations Committee on Agriculture, Environment, and General Government heard and reported favorably several bills. CS/SB 800 would increase penalties for repeated unlicensed engineering practice and create an engineering student loan assistance program funded by licensure fees and fines; Senator Sharif asked about restitution for victims, and the sponsor said the bill does not create a reimbursement mechanism. CS/SB 576 would create a local government cybersecurity protection program administered by Florida Digital Service, with state purchasing support, grant access, and data-sharing requirements; local government and cybersecurity groups waived in support. CS/SB 1078 would establish transition procedures between gubernatorial administrations, including liaisons, briefing books, office space, IT access, and access to agency records under a signed confidentiality agreement. The committee also reported favorably CS/SB 314 on payment stablecoin issuers, CS/SB 530 updating lottery operations and security rules, CS/SB 1614 giving JAC/LAC-related audit findings more enforcement effect for local governments seeking state funds, SB 990 authorizing protective cell captive insurance companies, SB 1588 beginning implementation of the prior gold-and-silver legal tender law, CS/SB 1440 adding cybersecurity-related exemptions and reporting provisions for financial institutions, and CS/SB 1568 creating a stablecoin pilot program for DFS fee payments. Several bills had support testimony from state agencies and industry groups, and some included technical or guardrail amendments that were adopted without objection. The committee also received a budget overview highlighting major funding items, including more than $350 million for Florida Forever, $738 million for Everglades restoration, more than $500 million for water quality projects outside the Everglades, $60 million for Farmers Feeding Florida, and more than $250 million for citrus recovery. Members asked questions about school lunch funding, state park improvements, land acquisition, water quality funding, gaming enforcement offices, and staffing for PERC. After the bills and budget discussion, members recorded a few affirmative votes on selected tabs, and the committee adjourned.