Transcript Highlights:

• multiple vendors and multiple contracts.
• Now, if we had contract language in there before and we didn't monitor that contract language tight enough
• That being said, it's part of the contract.
• So we're focusing on the future in the new contract.
• I think Cal OES or maybe it’s a contract or something Position within Cal OES, or maybe it’s a contract

Summary: The Emergency Management Committee held an oversight hearing on California’s Next Generation 911 rollout, focusing on Cal OES’s decision to move away from the original regional vendor model toward a statewide provider model. Cal OES said the regional architecture created complexity at the boundaries between regions, leading to misrouted calls, transfer problems, and degraded audio, and that a statewide model would better align with national standards and provide a more reliable, secure system. The Legislative Analyst’s Office urged the Legislature to pause further implementation until it has more information on the problems, tradeoffs, costs, and oversight needs, and recommended stronger reporting and possibly independent technical review before proceeding. Committee members pressed Cal OES on accountability, cost, testing, vendor selection, and whether the current system is safe. Cal OES said the project has cost about $456 million so far, most of it recurring service fees, and that 23 PSAPs had transitioned voice traffic while more than 440 total PSAPs remain in the state. Officials said the current system is operating, that a pause would not put the public at risk, and that the statewide conversion could be completed by summer 2030. Members and the LAO raised concerns about whether Cal OES has enough technical oversight and whether contract language alone is sufficient to prevent repeat problems. The vendor panel largely defended the regional model and argued that the existing system is already built, tested, and ready to expand. NGA 911, Synergem, Lumen, and Atos said the regional architecture provides redundancy and resilience, that early problems were often tied to legacy-system integration, carrier issues, or training rather than the regional design itself, and that a statewide redesign would add cost and delay. Atos said it serves as the statewide backbone and backup and has already carried live traffic, while vendors emphasized that they support continued modernization but believe California should build on the current regional investment rather than replace it.

Transcript Highlights:

• multiple vendors and multiple contracts.
• Now, if we had contract language in there before and we didn't monitor that contract language tight enough
• That being said, it's part of the contract.
• So we're focusing on the future in the new contract.
• I think initially it was difficult to get information.

Committee: House Emergency Management

Transcript Highlights:

• The current contract for lottery operations expires August 31st.
• The floor substitute requires TDLR to negotiate an extension on this contract for up to two years in
• TDLR is required to review... ...each existing contract to determine whether to renew, amend, or terminate
• the contract.
• When they started their film school, they had 40 students in the initial class.

Bills: SB835 , SB3070 , SB22 , SJR59 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB973 , SB974 , SB865 , SB506 , SB781 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB505 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB2480 , SB3039 , SB3047 , SB3073 , SB2920 , SB2781 , SB826 , SB766 , SB2460 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB2595 , SB857 , SB37 , SB8 , SB10 , SB227 , SB261 , SB12 , SB15 , SJR27 , SB552 , SB835 , SB3070 , SB22 , SJR59 , SB25 , SB57 , SB127 , SB293 , SB441 , SB3059 , SB512 , SB241 , SB1718 , SB140 , SB2055 , SB2075 , SB2018 , SB1534 , SB1567 , SB785 , SB1233 , SB1580 , SB1663 , SB413 , SB447 , SB519 , SB467 , SB1579 , SB1191 , SB1021 , SB1838 , SB2807 , SB2835 , SB546 , SB2121 , SB2167 , SB2035 , SB2024 , SB1032 , SB1049 , SB1266 , SB1400 , SB1302 , SB401 , SB1596 , SB1281 , SB1242 , SB1343 , SB310 , SB1346 , SB2753 , SB2703 , SB2221 , SB1719 , SB2177 , SB800 , SB790 , SB748 , SB571 , SB1957 , SB1923 , SB1896 , SB1760 , SB1335 , SB2368 , SB2477 , SB2587 , SB2972 , SB2986 , SB2965 , SB1563 , SB1467 , SB1164 , SB1137 , SB614 , SB705 , SB961 , SB918 , SB955 , SB869 , SB850 , SB863 , SB1610 , SB1055 , SB2206 , SB457 , SB2337 , SB1362 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB973 , SB974 , SB865 , SB506 , SB781 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB505 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB2480 , SB3039 , SB3047 , SB3073 , SB2920 , SB2781 , SB826 , SB766 , SB2460 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB2595 , SB857 , SCR9 , HB5560 , HB762 , HB 107 , HB 114 , HB300 , HB138 , HB4386 , HB2495 , HB581 , HB3348 , HB5323

Keywords: sexual abuse, nondisclosure agreements, confidentiality agreements, public policy, victim rights, lottery, bingo, regulation, Texas Lottery Commission, Department of Licensing and Regulation, criminal offenses, state administration, audits, transfers, Texas, moving image industry, incentive program, film production, grant funding, job creation

Transcript Highlights:

• school bonds taxes and bond related projects HB 501 9 by quickly own relating to school district contracts
• days for a single-source continuum contractor, or DFPS, to provide notice to the other of premature contract
• HB 129 by McQueenie relating to a prohibition on certain governmental contracts with foreign. companies
• HB 4063 by Ordaz, relating to the filing and release of a record of a unilateral memorandum of contract
• In the runoff, I won the runoff, but the initial one, I was fifth place out of. five people, then I made

Bills: HJR34 , HB 113 , HB184 , HB198 , HB247 , HB367 , HB449 , HB1778 , HB514 , HB576 , HB632 , HB1395 , HB2225 , HB2582 , HB2494 , HB766 , HB2715 , HB2712 , HB3069 , HB3505 , HB 1269 , HB4224 , HB3609 , HB5032 , HB2240 , HB5180 , HB3348 , HB4668 , HB4909 , HB4665 , HB4895 , HB3395 , HB3157 , HB4762 , HB4395 , HB4325 , HB4952 , HB4386 , HB4273 , HB2760 , HB2697 , HB2820 , HB1828 , HB1768 , HB1579 , HB1773 , HB1871 , HB2035 , HB2448 , HB2492 , HB1411 , HB4753 , HB4666 , HB4529 , HB1499 , HB1610 , HB2028 , HB1506 , HB886 , HB3546 , HB796 , HB223 , HB1475 , HB3556 , HB4638 , HCR126 , HB38 , HB 104 , SB1008 , SB1106 , SB1172 , SB2629 , SB2964 , SB616 , HB2214 , SB552 , HB3181 , HB3628 , HB589 , HB3529 , HB3354 , HB333 , HB2914 , HB4130 , HB4131 , HB24 , HB 1160 , HB3962 , HB4115 , HB2295 , HB5398 , HB1407 , HB3800 , HB2613 , HJR138 , HB42 , HJR34 , HB 129 , HB677 , HB426 , HB668 , HB1699 , HB2017 , HB2128 , HB2038 , HB3783 , HB3717 , HB2316 , HB3686 , HB2563 , HB3883 , HB4021 , HB2788 , HB2663 , HB3305 , HB3173 , HB3474 , HB 1105 , HB3531 , HB3490 , HB3597 , HB 1295 , HB3512 , HB3010 , HB3112 , HB4215 , HB3223 , HB3464 , HB3120 , HB4214 , HB4511 , HB3704 , HB4081 , HB4783 , HB4063 , HB2783 , HB4937 , HB5085 , HB2510 , HB3426 , HB4361 , HB 1169 , HB2516 , HB2347 , HB4034 , HB4700 , HB3560 , HB5150 , HB3860 , HB3146 , HB3924 , HB 113 , HB184 , HB198 , HB247 , HB367 , HB449 , HB1778 , HB514 , HB576 , HB632 , HB1395 , HB2225 , HB2582 , HB2494 , HB766 , HB2715 , HB2712 , HB3069 , HB3505 , HB 1269 , HB4224 , HB3609 , HB5032 , HB2240 , HB5180 , HB3348 , HB4668 , HB4909 , HB4665 , HB4895 , HB3395 , HB3157 , HB4762 , HB4395 , HB4325 , HB4952 , HB4386 , HB4273 , HB2760 , HB2697 , HB2820 , HB1828 , HB1768 , HB1579 , HB1773 , HB1871 , HB2035 , HB2448 , HB2492 , HB1411 , HB4753 , HB4666 , HB4529 , HB1499 , HB1610 , HB2028 , HB1506 , HB886 , HB3546 , HB796 , HB223 , HB1475 , HB3556 , HB4638 , HCR98 , HCR92 , HCR126

Keywords: HJR 34, constitutional amendment, Texas Constitution, ad valorem tax, property tax exemption, real property, border counties, U.S.-Mexico border, United Mexican States, border security, border security infrastructure, landowner, county tax base, local government, tax relief, property value increase, infrastructure improvements, voter approval, November 2025 ballot, statutory construction

Transcript Highlights:

• It's part of their contract and care coordination, and they are contracting with the Department of Health
• And so we signed the contract in November of 23.
• We did not use this funding after that initial allocation.
• We've also contracted with Tech Systems.
• We've entered into a contract and I know somebody said they didn't want to hear any more about contracts

Transcript Highlights:

• that those initiatives are delivered in a way that is in accordance.
• And then states had to work with CMS to Finalize their initiatives and budgets.
• States should be beginning to implement some of their initiatives.
• Of course, the contracts have to be signed and the awards have to be made before the initiatives can
• for solicitation for these types of structural contracts that we need.

Summary: The Rural Health Transformation Committee met with a quorum and approved the April 22 minutes. The main presentation came from Kate Sapra of CMS, who outlined the federal Rural Health Transformation Program, a $50 billion, five-year cooperative agreement for all 50 states. She emphasized CMS oversight, annual rescoring based first on implementation progress and later on outcomes, strict deadlines for obligating and spending funds, and the possibility of clawbacks if funds are not used on time or for approved purposes. She also described CMS’s Idaho site visit and the broader federal-state collaboration, including reporting requirements and technical assistance. Director Juliet Sharon of the Idaho Department of Health and Welfare then reviewed the state’s first round of planned sub-awards and solicitations. She explained the distinction between full RFPs, cooperative agreements, and smaller sub-grants, and said the first year will focus on building program structure, hiring support staff, data analysis, third-party administration, needs assessments, and initial service and infrastructure investments such as EMS, maternal and child health, behavioral health, chronic disease prevention, transportation, and technology. Committee members asked for more detail on KPIs, scoring metrics, and access to the actual RFP documents, and Sharon said those materials could be shared through SharePoint with confidentiality protections. Members also raised questions about reimbursement versus upfront funding, especially for tribes and other rural providers that may not have capital to start projects. CMS said upfront funding is allowable if consistent with state procurement rules and that RHTP funds cannot supplant existing funds or pay for projects already underway without a strong new-project rationale. Questions were also raised about multi-year construction or renovation projects, minor renovation definitions, and whether funds could be shifted between categories; CMS said budget revisions are possible but time-consuming, and year one changes would be difficult. The committee agreed to submit feedback on the first batch of opportunities by May 29 and scheduled the next meeting for July 15.

Transcript Highlights:

• </c> materials on top of the contract. materials on top of the contract.
• </c> change to a contract attachment. change to a contract attachment.
• . contract. contract.
• </c> these types of contracts. these types of contracts.
• </c> initiated, you lose the opportunity. initiated, you lose the opportunity.

Committee: House Commerce and Consumer Affairs

Transcript Highlights:

• As you said, there's a contract.
• . contract. contract.
• </c> accountability built into the contract. accountability built into the contract.
• As you said, there's a contract.
• </c><00:29:18.880><c> for</c> school districts already contract for school districts already contract

Summary: The Interim Joint Budget Review Subcommittee on Education met with a quorum, approved the August 20, 2025 minutes, and then heard a discussion tied to Constitution Day and Kentucky’s constitutional duty to provide an efficient system of common schools. Chairman James Tipton reviewed the history of Kentucky’s model laboratory schools, postsecondary academy programs such as Gatton and Craft, magnet schools, virtual learning, and computer science opportunities, arguing that Kentucky has long expanded educational opportunity through different school models. He described model schools and academy programs as hybrid or innovative approaches that serve specialized student needs and noted that some of these programs receive state appropriations and, in some cases, tuition. Senator Steve West then gave a retrospective on school choice in Kentucky, beginning with the 2017 charter school law and explaining that Kentucky’s charter framework was designed as public-only to comply with the state constitution. He said charter schools have remained largely dormant in Kentucky and used that as context for Senate Bill 207, the School Innovation Act, which he said was modeled on a South Carolina approach. Under SB 207, a local school board can contract with a third-party entity to manage an existing school, receive SEEK funding, and seek waivers from certain state regulations in order to innovate, while retaining limits on items such as school safety and attendance rules. Members asked about how the new model differs from charter schools, whether schools could cherry-pick students, and whether teachers would remain district employees. West and Tipton said the bill is intended to keep the school within the public system, with the local district initiating the process and maintaining accountability through a time-limited contract that can be ended if the school fails to perform. They emphasized that the school would serve the existing student population rather than select students, and that teachers would remain district employees with their pensions and related contributions unchanged. Representative Brown raised concerns that exceptions and charters could leave lower-income children behind, while West responded that the bill is meant to expand choice for families who otherwise lack access and cited examples from other states where outside management and parental involvement helped turn around low-performing schools. No additional votes or formal actions were taken beyond approving the minutes.

Transcript Highlights:

• Welcome to the Joint Legislative Audit and Review Committee's Initiative 900 performance audits by the
• Our program is funded partly by the ACH, partly by contracts with the hospitals.
• Our program is funded partly by the ACH, partly by contracts with the hospitals.
• We initially only planned to look at the performance management of the Division's programs.
• type of contract that pays for the delivery of results rather than for specific services.

Committee: Joint JLARC I-900 Subcommittee for SAO Performance Audits

Summary: The Joint Legislative Audit and Review Committee’s Initiative 900 subcommittee held a hybrid public hearing on two State Auditor performance audits. The first audit examined efforts to reduce non-emergency use of emergency systems through CARES programs. Auditors reported that Washington has 52 fire-agency-led CARES programs in 26 counties, but many communities without programs said they need one. Major barriers included unstable funding, difficulty hiring qualified staff, volunteer-based rural departments, and lack of statewide guidance. The audit also found that only about half of programs tracked both required performance measures, and it recommended that the legislature consider private insurance reimbursement options and convene a statewide work group to develop guidance, standards, and possible changes to the role of the Department of Health. Agency representatives and fire officials largely supported the findings and emphasized that short-term grants and one-year contracts make programs hard to sustain. Committee discussion focused heavily on financing, especially Medicaid reimbursement and accountable communities of health (ACHs). Auditors clarified that the 10% figure cited in the report referred to direct Medicaid reimbursement for treat-and-refer services, which some agencies do not pursue because the $115 rate is too low relative to the administrative effort. Several fire officials testified that their programs rely on grants and ACH support, but that funding is often year-to-year and uncertain. They also described the value of CARES programs in reducing emergency room use, jail detentions, and long ambulance wait times, while noting barriers to sharing patient records across systems. Members asked whether the new public safety sales tax authority could help, but fire district representatives said it is not a direct funding option for them. The second audit reviewed performance management in the Department of Commerce’s Office of Economic Development and Competitiveness. Auditors found that the division does not yet have a statewide economic development strategic plan and that performance management is inconsistent across its 16 programs. In a limited review, all six sampled programs had goals, but only half clearly identified performance measures and targets, and only three tracked outcomes and published results. The audit highlighted leading practices from other states, including strategic planning, regular progress reporting, aligning program goals with agency goals, and using performance-based contracts and grant monitoring. Recommendations urged Commerce to seek stakeholder input, assess internal and external conditions, set goals and measures, align programs with the strategy, and strengthen monitoring and evaluation. Commerce officials agreed with the audit and said the division is already working toward a strategic plan, with a new assistant director to be hired and a target of completing the work by mid-next year. Members pressed the department on how the plan would connect to workforce, higher education, housing, and other economic development systems, and asked Commerce to return to JLARC next year with progress updates. The meeting ended with instructions for submitting written public comments and notice of the next JLARC meeting schedule.

Transcript Highlights:

• We've also allowed for a multiple award contract.
• finalized before that contract gets submitted for federal approval.
• We've also allowed for a multiple award contract.
• finalized before that contract gets submitted for federal approval.
• It is a 1% bond for contracts up to $10 million or a 0.5% bond for contracts of $10 million or more,

Committee: House State Affairs

Transcript Highlights:

• contracts should this measure go forward contracts should this measure go forward um<00:05:21.360><c>
• And that contract amounts to how much?
• The current contract is open-ended, but we do not believe that it will extend beyond the initial construction
• </c> um I'm going to be keeping on a contract um I'm going to be keeping on a contract okay um<00:34:
• </c> space science and engineering initiative space science and engineering initiative I'm<00:38:27.240

Committee: Senate Economic Development and Tourism

Summary: The Senate Committee on Economic Development and Tourism and Higher Education heard HB 1494, relating to sports facilities. Testimony was largely in opposition to the bill as drafted from the Stadium Authority, the Department of Accounting and General Services, and the Department of Business, Economic Development and Tourism, with several other written comments also opposing; each asked that if the measure advances, Senate language from related stadium bills be incorporated instead. The University of Hawaiʻi testified in support of the Nāʻid project and said it wants the project delivered at Halawa so the university can have a football facility, though members pressed the university on whether it was effectively supporting both the project and the bill’s current approach. A substantial portion of the hearing focused on the stadium project’s financing, schedule, and oversight. DAGS and Public Works discussed a consultant contract that had grown to about $28 million and an audit that recovered $441,000 after improper travel and expense reimbursements, including first-class airfare and other personal expenses; officials said the audit exposed weak internal controls and led to revised reimbursement policies. Members questioned whether the problems would have been found without media reporting and whether stronger oversight should have been in place earlier. The committee also discussed the current Ching Field setup for UH football, with witnesses describing it as less than ideal and temporary until the new stadium is built. Stadium Authority representatives said the current preferred offeror is Aloha Halawa Development Partners, negotiations have recently accelerated, and the goal remains a contract this summer and a fall 2028 opening. They said the state is committed to $350 million in general obligation bonds, with the overall project expected to cost more, and that the developer is exploring other financing sources such as TIF or CFD while the state and city work to expedite permits and demolition. No vote or final action on the bill was taken in the portion provided.

Transcript Highlights:

• By July, 300 service contracts had been canceled.
• There have you tried to initiate these conversations?
• So, but there's one thing that we have looked at our county contracts.
• We're in the bid process currently at OIDS for those county contracts.
• We had been contracting out for that we saved $35,650.92 in that regard.

Committee: House A&B Judiciary Subcommittee

Transcript Highlights:

• And with that, those are my initial comments, Mr. Vice Chair. Thank you, Mr. Parks.
• If there are voter-approved initiatives, are those initiatives actually funding projects that were promised
• As I mentioned, recent events under the approved initiatives.
• Delta Dental, as the Senator has mentioned, has had this contract since 1984.
• And objective six focuses on reviewing CalHR's plans. terms of their contracts.

Summary: The Joint Legislative Audit Committee met to hear new audit requests and receive a status update from the State Auditor. The auditor reported 10 JALAC audits in progress, noted that all 2025-approved audits are underway, said the first 2026 audit is focused on DMV license revocations, and described several statutory and high-risk audits already in progress. The committee also approved a consent calendar of four audit requests: UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then considered Assembly Member DeMaio’s audit request on SANDAG road project management. DeMaio argued the audit was needed to examine whether transportation funds, including voter-approved and restricted revenues, were used for allowable purposes and whether past management failures warranted outside review. SANDAG’s CEO and CFO said the agency already undergoes extensive oversight and audits, that funds are tracked by multiple “colors of money,” and that internal controls have improved. Several members questioned whether the issues were already addressed in public records or existing audits, and the request failed on a roll call vote. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, arguing that more transparency is needed on outcomes, recidivism data, and oversight of grantees. The BSCC said it already has oversight mechanisms, that the State Controller conducts biennial audits, and that program data shows positive outcomes. The committee approved the audit unanimously. Senator Cortese then presented an audit of CalHR’s dental benefits procurement and Delta Dental contract, citing long-standing benefit caps, provider network concerns, and retiree out-of-pocket costs. CalHR said its network remains strong, that it recently completed an RFP adding MetLife as a second carrier starting in 2027, and that contracts include performance guarantees. Members from both parties expressed concern about access and competition, and the audit was approved unanimously. The committee then completed add-on votes on the consent calendar and adjourned.

Transcript Highlights:

• We have already awarded three bridge maintenance IDIQ contracts.
• We are also now initiating the request for proposal for the multi-award, multi-task-order contracts,
• The bridge maintenance contracts, I think you mentioned. Yes.
• First, about Act 678, Vice Chairman Fontenose's bill, IDIQ contract authority.
• We’ve done the same thing on the general contracting side.”

Summary: The committee met for an information-only hearing with no votes or other action items. DOTD Secretary Glenn LaD and Deputy Secretary Beau Black gave an update on the department’s transformation efforts, focusing on faster project delivery, improved construction administration, and new technology. They said monthly contractor payment approvals have been reduced from roughly 35 days to 15 days or less, change orders from about 40-45 days to around five days, and that DOTD delivered 86% of its advertised projects in the last fiscal year. They also described new tools such as Headlight for field inspections, Smart PM for schedule tracking, Hall Hub for e-ticketing and work-zone mapping, and a pilot using advanced sensors on district vehicles to identify potholes, guardrail damage, and other asset issues. The department also outlined a district reorganization that replaces the area engineer model with dedicated district points of contact for construction, maintenance, and operations, with no increase in total staff. Members raised concerns about local maintenance issues, especially mowing, drainage, culverts, potholes, and communication with district offices. Several members asked for clearer coordination on jurisdictional questions, more frequent meetings with district administrators, and better public updates on long-running projects. LaD said DOTD would schedule follow-up meetings, use the coming customer service portal to track complaints, and improve public communication through project information officers, social media, and other outreach. Questions also covered contractor accountability, utility relocations, road transfer maps on the DOTD website, and whether maintenance work adjacent to capital projects should be handled by district crews or through new IDIQ contracts. The secretary also reviewed the Highway Priority Program process, saying DOTD will work between June and September to review projects not included in the prior program, explain why, and refine a five-year fiscally constrained plan before the fall road show. He said the department is using IDIQ authority to award bridge maintenance and other task-order work, and that this should help address a two-year bridge repair backlog. Members discussed whether current funding levels are enough to reduce the statewide backlog, and DOTD said the current program likely maintains rather than eliminates it absent new revenue. The hearing ended with a project-specific update that a barge struck the Black Bayou Pontoon Bridge that morning, causing significant damage; DOTD said divers and staff would inspect it and determine emergency repairs. After DOTD’s presentation, Archie Chesson of the Office of Louisiana Highway Construction gave a brief update on that office’s first year, describing its use of consultant pools, master service agreements, a public GIS map, and a data tool to prioritize rural road and bridge projects, with several early projects already completed or under construction.

Transcript Highlights:

• themselves, the contracts the department had executed to facilitate this initiative to put AC in classrooms
• And that was my point initially about the cool classrooms initiative. No documentation.
• </c><01:43:31.040><c> contract</c><01:43:31.600><c> managers</c> and contract contract managers and contract
• Contract them all and hire them all out. Contract them all out. out. out.
• &gt;&gt; Uh $24,000 something for the initial &gt;&gt; Uh $24,000 something for the initial garden.

Transcript Highlights:

• has um received the contract. has um received the contract.
• those contracts.
• those contracts.
• </c> contract back in 2020. contract back in 2020.
• > contracts</c><01:59:58.000><c> and</c><01:59:58.320><c> only</c> contracts for these contracts and

Summary: The committee met with a quorum and first approved the minutes from its May 13 meeting. Members then reviewed a deferred contract with the Kentucky Board of Pharmacy for the Kentucky Pharmacist Recovery Network (KYPRN), a program that provides monitoring and support for pharmacists and pharmacy interns with substance abuse or mental health issues. Board representatives explained that the contract is a long-running arrangement, renewed periodically, with an option for two additional two-year renewals. Senators asked about the program’s structure, participation trends, follow-up, and consequences for noncompliance. The board said enrollment has remained fairly consistent at about 52 participants, with roughly 500 participants over the life of the program, weekly and monthly check-ins during the five-year typical enrollment period, and possible additional sanctions if participants fail to meet obligations. The committee then approved the contract. The committee next considered a group of economic development contracts, including items from the Cabinet for Economic Development. Secretary Jeff Null and general counsel Matt Wingate testified about contracts tied to regional innovation and entrepreneurship hubs. Members focused on the large differences in funding between regions and pressed for more support for rural and eastern Kentucky. Null said the cabinet is working on a more tailored, non-one-size-fits-all approach, including possible changes to capital support, build-to-suit options, and additional resources for rural areas. He said the hubs have helped 193 startups over the last two years and helped attract nearly $350 million in private capital, and he agreed to provide a written report by hub district on startup viability. The committee approved the economic development contracts. The Kentucky Lottery Corporation then presented its contracts with vendor IGT for retail and internet sales systems. Lottery officials said the contracts are mission-critical, cover both the traditional retail system and iLottery, and are structured as a percentage of sales so no payment is made until revenue is earned. They described planned equipment upgrades, including refreshed terminals, new ticket checkers, cashless vending and bill acceptors, and connected-play features that would link retail and online wallets. Officials said keeping the same vendor reduces the risk of business disruption and that the arrangement has already produced cost savings. They also said the lottery continues to see year-over-year growth and expects to meet its annual contribution target of $360 million for scholarships and grants. The committee approved the lottery contract after discussion.

Transcript Highlights:

• But California initially tried to only conform if investment was taking...
• An example of that might be our existing contracts guidance.
• Existing contracts guidance.
• the terms of the contract.
• their budget on just one contract.

Summary: House Finance heard bill briefings and testimony on several tax and property-tax measures. HB 2175 would exempt licensed nonprofit providers of free durable medical equipment from retail sales and use tax on items reasonably necessary to operate and provide care; the sponsor and a nonprofit provider described how the bill would help organizations that refurbish and donate wheelchairs, beds, walkers, and similar equipment, and staff noted a small Department of Revenue fiscal impact. The committee then heard HB 2608, which revises the targeted urban area property tax exemption for nuclear facility projects by requiring labor standards, including submission of a workforce or project labor agreement and related wage/apprenticeship information, and extending project-completion deadlines. Supporters said it would help attract major clean-energy and nuclear supply-chain investment and jobs, while opponents from construction groups, environmental advocates, and some public commenters objected to the PLA requirement, the tax preference for nuclear projects, and the broader policy direction; tribal consultation concerns were also raised. No votes were taken on these bills in the transcript. The committee also heard HB 2227, which expands an existing REET exemption for affordable homeownership sales from self-help housing to other nonprofit affordable homeownership programs, including community land trusts. The sponsor and nonprofit witnesses said the change would lower transaction costs, improve affordability, and support permanently affordable resale models; staff clarified the exemption applies to the initial sale from the nonprofit to an income-qualified buyer, not later resales. HB 2528 would allow cities and counties that fully plan under the Growth Management Act to impose the second local REET without voter approval, aligning opt-in jurisdictions with those required to plan under GMA. Supporters from cities and counties said the revenue would help fund sidewalks, ADA upgrades, water, sewer, and other infrastructure, while opponents argued it would raise home-selling costs and bypass voters. Finally, the committee heard HB 2292, which would subject long-term capital gains from qualified small business stock to the state capital gains tax beginning in 2026. Staff said the bill would affect about 260 taxpayers and raise roughly $1.2 million in FY 2027, while the sponsor and supporters argued the current QSBS exemption mainly benefits very wealthy investors and should be treated like other capital gains; opponents from the tech and startup community said the exemption helps founders attract investment, keep companies in Washington, and create jobs, and warned the bill would send a negative signal to entrepreneurs. The committee also heard HB 2257, a Department of Revenue request bill making technical and administrative changes to the tax code, largely to codify guidance from last year’s sales-tax-on-services law and make other clarifications; DOR said it was intended to provide certainty and had no fiscal impact. School groups testified that the 5814-related service-tax changes have increased costs for districts, especially for staffing and professional learning, and asked for relief or a broader exemption.

Transcript Highlights:

• DFPS put many resources in place after that initial rollout, both before and during that initial rollout
• It is ultimately our decision whether we would ever terminate a contract or make amendments to a contract
• We have several contracts—about 3,000 contracts—with Medicaid providers who are delivering waiver services
• They also have to have a contract with Medicaid.
• And then addressing zero reject contracts.

Committee: House Human Services

Transcript Highlights:

• Um, I don't know that we've hit our seven years on that contract.
• “Okay, and they’re being paid for that through this contract.
• The initial reason that we did it was very clear...”
• That's not, that's—so it comes from removing it from the Optum contract.
• You have a contract, you have an independent assessment.

Summary: The committee approved the December 8 minutes and referred items C1 and C2 to the labor and environment subcommittees, adopting the chair’s recommendations. The main substantive item was a DHS rule package revising the State Plan Personal Care Manual and the Arkansas Independent Assessment (ARIA) Manual. DHS said the revisions would repeal and replace the current manuals with streamlined versions, remove overlapping language, implement Act 853 by shifting licensure/certification for personal care agencies to the Department of Health, lengthen personal care prior authorizations from six months to one year, and keep the 64-hour monthly cap. For ARIA, DHS said it would remove references to state plan personal care, clarify telehealth and in-person assessments, and add/update sections for PASS, AR Choices, Living Choices, and PACE. DHS argued the current independent assessment process is costly and not controlling utilization, citing a 95% approval rate, annual spending of more than $212 million on personal care for about 17,000 people, and an estimated $6.173 million in savings from eliminating the Optum assessment and reducing prior-authorization frequency. Agency witnesses said the new process would reinsert primary care practitioner involvement, use standardized evaluation and prescription forms, and rely on personal care provider nurses for the assessment step, with training already available through an AFMC contract. Several members questioned whether PCPs should be used as gatekeepers, whether the change would delay services, and whether the savings estimate accounted for training or provider burden. Some members also raised concerns about conflicts of interest, the workload on physicians, and whether the agency had adequately worked with the existing vendor to improve the current system. The discussion became contentious, with Senator Irvin and others strongly opposing the proposal as inconsistent with the earlier independent-assessment approach and urging DHS to slow down and work with legislators. Other members asked for clarification on how the new process would work for new applicants and whether it would affect waiver or PASS participants; DHS said the rule would not apply to PASS and should not delay services. At the end of the hearing, the chair offered DHS the option to pull the rule down and work off-record with legislators on a revised proposal, and DHS agreed. The meeting then adjourned without further business or a final vote on the rule.

Transcript Highlights:

• I want to note that this would not happen in the contracts initiated in Washington more recently.
• on when they terminated their contracts, and also whether their contracts were capped or not.
• So the triangles were the contracts without caps.
• They finished contracts during... ...because these homeowners finished their contracts early.
• They finished contracts during a period of high home appreciation, and they entered contracts that did

Summary: The committee first held a work session on cryptocurrency kiosks, with the Department of Financial Institutions and Spokane City Council describing how virtual currency kiosks operate, where they are located in Washington, and the rapid growth in transaction volume. DFI said the machines are being used heavily in scams, especially against older and vulnerable consumers, and cited FBI fraud data showing substantial losses. DFI outlined possible consumer protections in pending legislation, including stronger disclosures, a $1,000 daily transaction limit, and a fee cap. Spokane City Council described its unanimous ordinance banning new kiosks and requiring removal of existing ones, citing local scam reports and the difficulty of recovering funds once they are sent through crypto wallets. Committee members asked about how the machines are used, whether the hardware itself is vulnerable, and whether stronger warnings or screening requirements could help. The committee then reviewed home equity sharing agreements, or CHISAs/HESAs, following a legislative report. The report’s author said these products provide homeowners a lump sum in exchange for a share of future home value or appreciation, with no monthly payments, but can be difficult for consumers to understand and can produce highly variable settlement costs. The report found the market has grown quickly in Washington, that many consumers using the products had financial hardship, and that many did not fully understand how settlement amounts were calculated. DFI said it views the products as mortgage-like and is moving forward with rulemaking, including counseling and clearer disclosures. Industry representatives said the products are equity-based rather than debt-based, support access to home equity for people who may not qualify for traditional loans, and said they are working with DFI on standardized disclosures, counseling, and annual settlement estimates. Senators raised concerns about consumer understanding, cost caps, and whether the products should be treated as mortgages under state law. In the final work session, the committee heard an overview of Washington’s space economy from Amazon Leo, Blue Origin, Stoke Space, Space Northwest, and Green River College. Speakers highlighted major investments in Washington facilities, manufacturing, testing, and workforce training, and described the state as a hub for aerospace and satellite activity. They emphasized job creation, supply-chain spending, and education partnerships, including technician certification and apprenticeship-style programs. Several speakers urged the legislature to expand tax incentives to include space companies, support grants and workforce programs, and consider a state space commission or similar long-term coordination effort. The committee thanked the presenters and noted time constraints before ending the hearing.