Transcript Highlights:

• Um so a work group um with DOT, auditor.
• So, who would >> The auditor is not here.
• >> The auditor, as I understand the bill, the auditor is going to determine whether or not we're fit.
• If you need an auditor to tell us that.
• send it on and not have the auditor send it on and not have the auditor portion<00:10:51.839>

Bills: SB2003

Keywords: Mauna Kea, land management, University of Hawaii, astronomical observatories, leasable lands, natural resource management, stewardship authority, 912, senate, all

Summary: The joint committees on Water, Land, Culture, and the Arts and Education heard testimony and discussed SB 20003, which would require the auditor’s report under Act 255 to include a recommendation on whether the Monarch Stewardship and Oversight Authority is fit to continue managing Monaca lands. Testimony focused on the bill’s reversion language, the role of the auditor, and whether the measure gave the auditor too much discretion without clear criteria. The Office of the Auditor’s position, read into the record, was that it had strong reservations because the bill did not provide standards for assessing fitness and asked that the requirement be held or amended. Other testimony suggested a work group with relevant agencies and Hawaiian practitioners to manage the transition and reduce conflict. Committee members debated whether the bill should simply restore the original reversion language or also require an audit-based fitness determination. Several members questioned the need for a 2031 audit when Act 255 already provides for a performance and financial audit in 2031 and noted that the bill could shift authority away from the legislature. In response, the committee chair explained that the measure was intended to restore language removed during conference and to address the transition back to the University of Hawaii if the authority was not meeting the act’s purpose. The committees ultimately recommended SB 20003 be passed with amendments. The amendments would strike the auditor/audit section, add language addressing timelines by providing a 10-year lease extension and sublease extension, and make technical changes including a defective date. The committees voted to adopt the amended measure and send it forward as an SD1. The transcript also included a separate Education Committee hearing on SB 3286, which would require the University of Hawaii to develop a facilities and student housing master plan and report to the legislature. University of Hawaii testimony said the system supports the intent but that the bill’s requirements are a heavy lift across 10 campuses and should follow development of a broader academic strategy. Members raised concerns about deferred maintenance, shifting priorities, and the lack of a systemwide plan, while the university said it already has a six-year capital improvement plan but acknowledged it does not fully incorporate the broader academic and housing strategy the bill contemplates.

Transcript Highlights:

• The independent third-party auditors and IVOs can create a de facto national standard in the absence
• auditors with no standards.
• We don't need auditors who are experts in child safety to have a successful program.
• We don't need auditors who are experts in child safety to have a successful program.
• So, the auditor, to the author, the auditor report calls into question how these.

Keywords: 988, house, all

Transcript Highlights:

• I know, for example, home auditors were mentioned.
• energy auditors can actually go into a home and do the.
• I need to understand what is the auditor? What is the requirement for the auditor? Mr.
• There are also different levels of energy auditor and the certification.
• So, is the level of auditor determined?

Transcript Highlights:

• We've also recently been engaging with the state auditors.
• We mostly refer those to the Office of the State Auditor.
• We also refer the harder cases to the NMDOJ, the Office of State Auditor, as I mentioned earlier, DFA
• I'd like to talk a little bit about what we do here at the Office of the State Auditor General.
• Like one of the main things you need to be in compliance with the Office of the State Auditor.

Transcript Highlights:

• , Auditor Ball, is doing an audit that is not complete.
• So, the leadership's response to the proposed audit from Auditor Ball was to do their own audit with
• Not only is that a problem, it's the way they chose the auditor to do their own audit.
• You know, auditors by and large use management data and assumptions. I can remember, Mr.
• Auditors rely on management. But, you know, we've not heard an outcry.

Keywords: 958, all

Summary: The Senate convened with prayer and the Pledge of Allegiance, then established a quorum with 34 members present and approved the prior day’s journal. The chamber also received a House message that House Bill 96 had passed and requested concurrence. During second reading, Senate Bills 17, 34, 39, and 181 were reported and sent to the Rules Committee, and Senate Resolution 56 was introduced honoring Elder Nathan Craig and Sister Amy Craig for their mission service. The chamber then took up Senate Bill 27, which would allow local governing bodies, after consulting with a coroner and making a 30-day effort to locate next of kin, to choose cremation rather than burial for indigent decedents; it also preserved options for religious organizations to take possession of a body. A committee substitute was adopted, and the bill passed 35-0. Senate Bill 30, dealing with the Motor Vehicle Commission’s restricted fee account and allowing unused funds to carry forward for commission operations, also passed unanimously 35-0. Senate Bill 40, concerning public library district boards of trustees, was amended by committee substitute and passed 34-1 after debate. Supporters said it would return county library board appointments to local officials and speed appointments, while opponents argued it could politicize libraries and weaken their independence; several members explained their votes, including concerns from library advocates and a defense that the bill still allowed local boards to seek advice. Senate Bill 76, which limits school boards from increasing occupational license taxes above the base 0.5% until a county reaches a population of 500,000, was also amended by committee substitute and passed after its sponsor argued it responded to a disputed Fayette County tax increase and would restore transparency and public trust.

Transcript Highlights:

• And we asked the auditor, "Hey, what are your recommendations based on what the DNR has put forward in
• And<00:03:56.520> we<00:03:56.720> asked<00:03:57.040> the<00:03:57.200> auditor
• c><00:03:57.760> "Hey,<00:03:58.760> what<00:03:59.000> are And we asked the auditor
• , "Hey, what are And we asked the auditor, "Hey, what are your<00:03:59.320> recommendations<00

Keywords: 919, house, all

Summary: The House took up House File 3426, the annual LCCMR bill appropriating money from the Environment and Natural Resources Trust Fund, which is funded by lottery proceeds and does not use general fund money. Representative Jordan said the bill funds 108 projects totaling $102.036 million, including projects in resiliency, water, outdoor recreation, fish and wildlife, energy, and a newly created community grants program. He thanked LCCMR members and staff and noted strong voter support for these programs. Representative Fischer supported the bill but raised concern about a prior decision to cut funding from a group that had misused the LCCMR logo, saying the penalty may have been too severe given the project’s purpose of helping expose 12,000 children to the outdoors. Representative Heintzeman also supported the bill and emphasized the committee’s work on integrity measures for the new community grants program, including consulting the Office of the Legislative Auditor and building safeguards against fraud. He highlighted the program’s focus on aging trail infrastructure and said grants of up to $2 million could help restore trails and improve safety. After discussion, the House proceeded to a roll call vote. The bill passed with 117 yeas and 15 nays, and its title was agreed to.

Transcript Highlights:

• That was our concern: today in the Ethics Commission, if the auditor were to have a lawyer... ...is today
• in the Ethics Commission, if the auditor were to have a lawyer, the Attorney General could, someday
• So the auditor does audit the Attorney General's office; if there was ever a conflict there, it felt
• So the auditor does audit the Attorney General's office; if there was ever a conflict there, it felt
• The second is the auditor, and there was an argument made that because of the auditor's office might

Keywords: 908, all

Summary: The Senate opened with prayer, the Pledge, a quorum call, and approval of journal corrections. It then handled several House messages, appointing conference committees on Senate Bills 2004 and 2006 and House Bills 1018, 1019, and 1363, and re-referring House Bill 1216 to Appropriations. The chamber also adopted amendments to House Bill 1601, which would have expanded special assistant attorney general authority for certain offices, but the bill failed on final passage after strong opposition centered on preserving the Attorney General’s control and avoiding a solution in search of a problem. A major portion of the day focused on education funding. House Bill 1369 was amended to raise per-pupil aid from 2% and 2% to 3% and 3% and to increase the school construction loan transfer from $75 million to $100 million; supporters said this would help local schools and military base projects, while opponents raised questions about special education placement language and state coordination. The bill passed 44-3. House Bill 1013, the DPI budget, was also amended extensively to adjust staffing, funding sources, grants, meal assistance, teacher training, and other education programs; it passed 45-2. House Bill 2234, dealing with Choice Ready grants, was amended to shift funding away from general funds and toward federal or other sources, but then failed on final passage after the sponsor urged a red vote. The Senate also approved House Bill 1482, restricting bond and indebtedness elections for counties, cities, school districts, and park districts to primary or general election days, and House Bill 1332, creating a value-added agriculture facility incentive program with an emergency clause. House Bill 1010, the Insurance Department budget, passed unanimously after amendments reflecting the merger of the Securities Department into Insurance and adding staff and fee changes, while House Bill 1011, the separate Securities Department budget, failed because its funding was already included in HB 1010. House Bill 1584, a major pharmacy benefit manager reform bill, passed with an enforcement fund and new licensing/enforcement structure despite debate over ERISA and market transparency. In other action, the Senate concurred in House amendments and passed Senate Bills 2226, 2230, 2069, 2082, 2387, 2385, and 2186, with SB 2186 on parenting time interference and a child custody task force passing 27-20 after debate over whether the issue should be left to the courts. Senate Bill 2234, on Choice Ready grants, and Senate Bill 2243, on driver’s license points and traffic penalties, both failed after concurrence motions were adopted but final passage votes were overwhelmingly negative. The chamber also advanced Senate Bill 2291 to conference committee consideration near the end of the transcript.

Transcript Highlights:

• We had two auditors that completed the doorway program audit.
• I'm the in-charge auditor for the special education outcomes audit. Good morning.
• > the<00:54:24.559> special the incharge auditor for the special the incharge auditor for
• neutral, you know, auditor of of fact. neutral, you know, auditor of of fact.
• How many auditors are involved in the special header on it?

Keywords: 1189, house, all

Summary: The committee first approved the minutes from the March 6, 2026 meeting and then received updates from the Legislative Budget Assistant audit staff on several ongoing audits. Christine Young reported that the special education audit was in report-writing stage with 39 of 80 observations completed and a draft expected in the second quarter, the education freedom accounts audit had 27 of 42 observations completed with a draft also expected in the second quarter, and the Doorway program audit had a draft report with 15 observations sent to DHHS on March 30, with responses due April 24 and presentation expected at the May fiscal committee meeting. Members asked about the size of the special education report, and staff estimated it would be over 800 pages and roughly three pounds. The committee then reviewed prior audit responsiveness from the Human Rights Commission. The commission reported that 22 observations had been completed, with remaining issues focused on timely case processing, a formal risk assessment, and a performance measurement system. Officials said staffing shortages were improving, a risk assessment manual had been drafted, a scorecard system was nearly complete, and the commission’s rules were moving through the public hearing process. Members asked about the timeline, and the commission said case processing was averaging 20 to 22 months and that the remaining items were expected to be resolved over time. Police Standards and Training also reported progress on prior audit items. The director corrected one status designation and said the job task analysis for curriculum development was substantially resolved, with findings and recommendations being prepared for the council. He said work on fitness testing was on hold pending legislative action, the performance measurement and strategic planning item remained a priority, and the council was focusing first on updating administrative rules. He also said the corrections advisory committee likely needed a statutory amendment to better reflect members with practical corrections experience. In response to questions, he said the council does not certify county correctional officers but reviews county curriculum annually, and he said the agency would be open to discussing consolidation or a pathway for county officers to become state-certified. The Department of Corrections then updated the committee on parole board-related audit items, saying 11 of 13 DOC-related findings were resolved. The remaining issues involved implementing a structured decision-making process for the parole board and improving data collection for recidivism tracking; the board had applied to the National Institute of Corrections for training, and manual data collection was underway. DOC also said it had created a HIPAA-compliant release form to share substance use disorder treatment information with the parole board. Finally, OPLC reported on the mental health workforce audit, saying six findings were fully resolved and six substantially resolved, with most remaining items tied to rulemaking and application processing. The office expects to complete its backend system migration and improve timeliness metrics by the end of the year, and it recently launched a jurisprudence exam for the mental health board. Under potential audit topics, staff said two items remained suspended because of litigation, and the committee discussed whether to keep DHHS contract management on the list. Representative [name unclear] proposed adding two new education freedom account audit topics: verification of residency and eligibility, and a record of educational attainment while preserving student privacy. Members supported adding them, but staff warned the expanded scope could delay the report and would require coordination with the Department of Education and approval by the Fiscal Committee. The chair said staff would work with the commissioner and LBA to draft the revised scope for further committee action.

Transcript Highlights:

• another category of professionals, then, um, the committee should refer this matter to the State Auditor
• :28.760> state should refer this matter to the state should refer this matter to the state auditor
• for a sunrise analysis pursuant auditor for a sunrise analysis pursuant to<01:11:32.080> HRS<
• Well, the sunrise analysis would have to be performed by the state auditor.
• to do a sunrise analysis I the auditor to do a sunrise analysis I think<01:20:46.360> there<01

Keywords: 910, house, all

Summary: The committee on Consumer Protection and Commerce met on January 30, 2025, and heard testimony on several condominium-related bills, beginning with HB 70. HB 70 would require a budget summary disclosure for condominiums. Supporters, including Community Associations Institute, a real estate broker, and several condominium owners, said the bill would improve consumer protection by giving owners and buyers a clearer, more understandable snapshot of an association’s financial health and reserve compliance. One supporter noted the bill should help reduce confusion caused by lengthy reserve studies and emphasized the importance of accurate disclosure. A testifier also urged the committee to hear other condominium bills quickly, including measures related to an ombudsman, managing agents, parliamentarians, and attorney’s fees. The committee then heard HB 106, which would change the process for condominium fines and disputes. Phil Nery of CAI and other supporters said the bill would strengthen due process by requiring clearer notice, allowing an internal board appeal, and then permitting small claims court review without attorney’s fees unless the fine is upheld. They argued this would prevent fines from escalating into costly legal disputes and provide a more linear, fair process. Some supporters suggested amendments, including clarifying that the statute controls over association documents and refining refund language. During questioning, members raised concerns about small claims limits and whether associations would be represented by volunteers or attorneys. One testifier initially in support later said he would not support the bill as written after hearing HPD’s concerns. HB 224, relating to property rights, drew opposition from the Department of the Attorney General and the Honolulu Police Department. Both agencies said the bill would improperly push law enforcement into a quasi-judicial role and could short-circuit existing due process procedures for occupants of residences. A realtor who had initially been listed in support changed his position after hearing the opposition testimony. The committee also heard emotional testimony from a resident describing a long-running squatter and utility theft problem at a neighboring property, which he said took years of court action and police involvement to resolve. No votes or final committee actions were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• Uh, Auditor Randall, thank you for coming up.
• Um thank you. uh auditor uh >> Thank you.
• But but<01:41:53.679> to<01:41:53.920> Auditor<01:41:54.320> Randall, but to Auditor
• I don't think only you, Auditor Randall.
• <01:52:37.119> and<01:52:37.440> a Auditor Randall's um encouragement and a Auditor

Keywords: 1183, house

Transcript Highlights:

• and the financial crimes and fraud section of the Bureau of Criminal Apprehension, the legislative auditor
• , state auditor, and the inspector general.
• Criminal Apprehension,<00:09:49.240> the<00:09:49.360> legislative<00:09:49.960> auditor
• , Apprehension, the legislative auditor, Apprehension, the legislative auditor, and<00:09:50.520>
• > inspector and state auditor, and the inspector and state auditor, and the inspector general.

Keywords: 1187, senate, all

Transcript Highlights:

• And so first up we have HCR 24 / HR23 requesting the auditor to conduct a follow-up Sunrise review to
• :14:38.680> HR23<00:14:39.680> requesting<00:14:40.160> the<00:14:40.320> auditor
• have HCR 24 HR23 requesting the auditor have HCR 24 HR23 requesting the auditor to<00:14:40.880>
• So, in order to address the issue and comply with section 26H-6, HRS, we're going to ask the auditor
• to do a sunrise analysis on HP auditor to do a sunrise analysis on HP 1312<00:42:15.440> that

Keywords: 910, house, all

Summary: The Committee on Consumer Protection and Commerce heard three resolutions focused on condominium management, insurance, and landlord-tenant issues. For HCR 24/HR 23, which sought a follow-up Sunrise review of condominium association managers, Hawaii Realtors and the Real Estate Commission supported the measure, while several condo owners and advocates described alleged embezzlement, misconduct, and lack of accountability in association management. The Real Estate Commission suggested using a more current bill, HB 1312, as the basis for the review. In decision-making, the committee adopted an HD1 to direct the auditor to conduct a Sunrise analysis on HB 1312 instead of the older cited bills, and the measure passed with amendments by unanimous votes, with one member excused. For HCR 85/HR 79, which asked the Insurance Commissioner to study alternative insurance models for condominium associations and unit owners, the acting insurance commissioner said the division supported the concept but warned the study could be costly and time-sensitive, estimating roughly $1.5 million based on the breadth of the requested work. A committee member and the commissioner discussed whether the scope could be narrowed, and the commissioner said a narrower study could reduce costs. The committee ultimately deferred the measure for possible revision and future discussion. For HCR 158/HR 153, which proposed an Attorney General-led working group to improve landlord-tenant code provisions, the Attorney General’s office said another agency with housing expertise would be better suited to convene the group and suggested LRB for legal research support. Hawaii Realtors supported the idea but said the chairing agency could be changed, while Maui Tenants and Workers Association urged stronger tenant representation and warned against framing the effort in a way that favors investors over tenants. A mediator also noted procedural gaps in court filing requirements for tenants and landlords. In decision-making, the committee adopted an HD1 to shift the convening role from the Attorney General to the judiciary, narrow the scope, and make technical changes; the amended resolution passed unanimously, with one member excused.

Transcript Highlights:

• It's the state's audited financial report, audited by the Office of Legislative Auditor.
• controls auditors and internal controls professionals<00:40:05.720> from<00:40:05.840> across
• O'Malley and with the Office of the Legislative Auditor that this training is relevant and helpful in
• <01:25:16.720> Even<01:25:17.040> the the Legislative Auditor holds.
• Even the the Legislative Auditor holds.

Keywords: 1183, house

Transcript Highlights:

• Our state auditor is one of our commissioners, and believe me, she goes through those expenses and says
• And then a third is an internal auditor. We have a chief internal auditor.
• Our agency, where we, through our charter some years back, we brought in a chief internal auditor and
• I can't turn I do not terminate the chief internal auditor or the general counsel.
• We have a geologist who's our director of minerals, auditors, auctioneers, appraisers.

Keywords: 914, all

Transcript Highlights:

• Arkansas Code directs the legislative auditor to notify the Arkansas Governmental Bonding Board of audit
• Their auditors are great to work with.
• Their auditors are great to work with.
• But one thing that, as probably the only auditor in here, and that was 30 years ago, might be helpful
• to them that may or may not be a prosecutorial item, but we don't want to make that decision as auditors

Summary: The committee first adopted prior minutes and then heard several standing committee audit reports. The executive committee report noted audit and special reports scheduled for the month, one outstanding committee-requested report, and a request to gather information on a possible special report for February. The city/county/local report covered delinquent private water and sewer audits, including reinstatement of turn-back funds for 17 entities, 59 of 64 delinquent 2023 entities filing reports, and action on the town of Daisy requiring repayment of misused street funds. The education report filed three higher education audit reports and deferred one Northwest Arkansas Community College report. The state agencies report filed four reports and deferred audits of the Department of Human Services and the Department of Parks, Heritage, and Tourism for more information on corrective actions. The committee then received a special audit review of the Charles W. Donaldson Scholars Academy at UA Little Rock. Auditors said the program received $10 million in desegregation funding and a $50,000 grant, awarded $1.87 million in scholarships to 379 students, and saw 116 students graduate. The review found many scholarship eligibility exceptions, including awards above the maximum and to students who did not meet GPA, enrollment-hour, or full-time requirements, and numerous disbursement documentation and authorization problems. Committee members sharply questioned the program’s oversight, the role of former staff, the use of funds for travel and cultural activities, and whether any improper spending should be referred for criminal review. UALR representatives said the program was overseen as a sponsored program, that some controls were later strengthened, and that Philander Smith only verified enrollment rather than eligibility. The committee voted to table the report until the next meeting and asked staff to gather the federal court order and additional information. Finally, the committee reviewed the annual report on matters referred to prosecutors and the Attorney General for 2024. Staff said 164 matters were referred, with 28 criminal charges filed, 39 still under review, 3 dismissed, 5 pending in court, and 96 not charged; convictions in 20 cases led to fines, restitution, audit costs, and some bond trust fund payments. Prosecutor representatives explained that many referrals do not become criminal cases because of intent, timing, or other legal limits, and said they generally seek restitution even when charges are not filed. Members asked for more standardized reporting, including whether restitution was recovered and why cases were not prosecuted, and discussed possible training and a checklist for future reports. The committee then voted to file the report and adjourned, with the next meeting set for February 12-13.

Transcript Highlights:

• Uh the auditor there at that meeting.
• <02:11:47.520> to Why why didn't you ask the auditor to Why why didn't you ask the auditor
• Um, when the auditor is that letter.
• <02:20:15.920> and to bring that up with the auditor and to bring that up with the auditor
• <02:20:22.640> was was the meeting where the auditor was was the meeting where the auditor

Keywords: 912, senate, all

Summary: The joint House Committee on Tourism and Senate Committee on Economic Development and Tourism held an informational briefing on the Hawaii Tourism Authority’s interim action plans, current projects, contract updates, destination management action plans, and state auditor findings. Interim CEO Caroline Anderson described her role as temporary and said she was focused on identifying problems, gathering information, communicating with stakeholders, and implementing solutions. She said HTA is now operating as a typical state agency subject to state controls, but noted that HTA’s work often involves nontraditional programs that can create process errors. She also said she had directed staff to review the auditor’s findings on the destination management action plan process and that the review was posted publicly. A major topic was the search for a permanent CEO and the agency’s restructuring under SB 1571. HTA board chair Tata Po said he hoped to select a CEO within about four months, with three to six finalists expected in roughly two to two-and-a-half months, and said the job description would largely remain the same except for compensation and reporting changes under the new law. Department of Business, Economic Development and Tourism representatives explained that HTA’s board is now advisory and does not approve the budget, while DBEDT retains budget authority. They also said HTA is working with the governor’s office and DBEDT on contract and budget transitions, including a possible shift to a calendar-year process so grantees and contractors have more certainty. Members pressed HTA on staffing, oversight, and accountability, especially around the destination stewardship team and the CNHA/Kilohana and HVCB contracts. HTA said the destination stewardship team supports destination management and product development, including workforce development, sports, and implementation of destination management action plans, and that staff provide direction to contractors rather than simply handing work over to them. Anderson said the stewardship team had 11 people and that the destination management side covered about 15 contracts, while the branding side had three managers overseeing nine contracts. She said the agency had 47 contracts overall and that the major contracts included CNHA/Kilohana and HVCB. Several members criticized HTA’s management history, questioned staffing qualifications and compensation, and expressed concern that the agency had lost public trust. No votes or formal actions were taken during the briefing.

Transcript Highlights:

• sub down through page 21, on page 10 of the committee substitute, in summary, this would allow the Auditor
• <00:04:04.040> the Sub in summary this would allow the Sub in summary this would allow the auditor
• of Public Accounts to set up a auditor of Public Accounts to set up a process<00:04:08.439> to
• if the auditor determines that there<00:04:17.600> is<00:04:17.840> issue<00:04:18.280
• on the issue so findings of the auditor on the issue so that<00:04:52.960> is<00:04:53.199>

Keywords: 958, all

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

Transcript Highlights:

• there was a bipartisan working group that spent a year looking at recommendations from both the state auditor
• it sounds like it's a state auditor's just you're basically trying to clean up language from the auditors
• They worked in conjunction with the auditor and also with Loft and the investigative or the forensic
• Basically, the group worked closely with the state auditor, her office officers, and legal staff.

Bills: HB3057, HB3279, HB4428, HB3420

Keywords: government reporting, information technology, child welfare, environmental policy, state agency compliance, employment restrictions, state officers, prohibited acts, government contracts, public service, public finance, pension, pension fund, retirement system, board of trustees, proxy voting, proxy proposal, shareholder vote, shareholder activism, fiduciary duty

Transcript Highlights:

• In other business, Legislative Auditor Kevin White updated the committee regarding the completion of
• And I'd like to especially call out Jana Kaysen, our chief financial auditor. Is she in the room?
• have seen, and immediately called the authorities and met with the authorities as well as state auditors
• . ...and met with the authorities as well as state auditors so that we could make sure that accountability

Summary: The Legislative Joint Auditing Committee met to approve prior minutes and receive reports from several subcommittees and audits. The executive committee reported that audit and special reports were scheduled for presentation, one requested report remained outstanding, and staff had reviewed circuit-court caseload assignments in Benton County’s 19th West Judicial District. The committee also heard that Arkansas legislative audit financial statements and audits for fiscal years 2024 and 2025 received clean opinions with no internal-control findings, and that the report was accepted. The counties and municipalities report covered delinquent private water and sewer audits, with many entities reinstated after filing required reports, and reviewed current and deferred reports; several reports were referred to prosecutors, the attorney general, or the Government Bonding Board. The education audit report covered 57 school district audits, with three districts—Camden Fairview, Forest City, and Eudora—deferred until the June meeting because of findings and referrals. A substitute motion amended the report to file the Nettleton School District report, and the amended report passed. The state agencies report noted findings at the Department of Public Safety and the Department of Transportation and Shared Services, including duplicate payments, collateral issues, record-keeping problems, and missing vehicle logs; the committee filed five reports. The committee then reviewed the City of Pine Bluff’s 2024 financial audit. The city received clean opinions overall, but the management letter identified serious issues in the mayor’s office, Parks and Recreation, and Finance, including unaccounted-for receipts, altered invoices, unallowable and questionable purchases, missing equipment, and weak cash-receipting and reconciliation procedures. City officials, including the mayor and department heads, testified that the problems largely involved prior activity, said they had terminated involved employees, referred matters to law enforcement, and described corrective steps such as a forensic audit, new procurement and accounting procedures, electronic receipting and payments, and software upgrades. After questions from members, the committee voted to file the Pine Bluff report and adjourned, with the next meeting set for June 4-5, 2026.

Transcript Highlights:

• When this started, CSF was actually cooperating, my understanding was, with the auditors, and then the
• , and then the Department of auditors, and then the Department of Education<00:27:43.400> stepped<
• Have any auditors been freed up so you'll actually be able to get those two audits going?
• We have two auditors that the Doorway program auditors.
• We have a senior manager and a staff performance auditor that are wrapping up Doorways.

Keywords: 1189, house, all

Summary: The committee received an update from the LBA on three audits related to education programs. Christine Young reported that the special education audit is in report-writing, with 44 of 81 observations completed, and that a draft is expected early in the third quarter with a final report later in the summer. She also said the doorway program audit has a draft report with 12 observations, auditee responses were received May 14, an exit conference was held May 18, and the report is now expected to be presented at the June fiscal committee meeting. The bulk of the discussion focused on the education freedom accounts audit and a proposed expansion of scope. Beulah Skids explained that the original audit, required by the 2022 law creating the EFA program, would be expanded to examine whether students were New Hampshire residents at enrollment and throughout participation, and whether records of educational attainment satisfied program requirements. She described the current work, the draft cooperation agreement being developed with the Department of Education and the Children’s Scholarship Fund, and the department’s concerns about the audit period and the term "educational progress," which the LBA said it would revise. The committee discussed that the expanded work would depend on a written agreement giving the LBA access to needed records, policies, and staff, with the Department of Education potentially serving as an intermediary for data access. Members raised concerns about the scope period and data access. Senator Lang asked that the residency review be limited to the 2024-25 and 2025-26 school years, rather than the broader 2022-25 period, because those years captured the major program expansions; the committee appeared to agree, with clarification that the reference was to school years, not fiscal years. Members also discussed reconciliation of EFA funds, noting that the department has agreed to reopen rulemaking to make reconciliation more frequent so unused funds can be returned to the state sooner. Several members expressed frustration that access to data had been delayed, while LBA staff said the cooperation agreement is intended to prevent further roadblocks and that the AG’s office could review it if needed.