Transcript Highlights:

• revenue each year thereafter in a new Abortion Savings Account for the Department of Health to provide grants
• It would require the Department of Health to provide at least 50 percent of grants provided under the
• This applies the reduction in bus depreciation payments for federal grants and rebates only to schools
• And this limits the reduction in bus depreciation payments for the grants and rebates to the 2025-26
• that the transmission authority may additionally consult with neighboring landowners when consulting

Committee: House Appropriations

Transcript Highlights:

• Additionally, the board has not implemented the recommendation to consult with the Attorney General's
• Van der Veen: Madam Chair, I believe I did communicate that to our consultant. Okay.
• Again, as I mentioned, I did grants for many, many years, so we're not talking supplanting.
• We wrote for the school safety grant.
• Consultant should consider. Thank you. Mr.

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• But the way that OHA's grant credit.
• . consultants. consultants.
• </c> which a project proponent will consult which a project proponent will consult with<01:47:15.360>
• Specialists or consultants.
• Specialists or consultants.

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on House Bill 2046, which would establish and fund an Olo Hawaii Commission to coordinate and promote initiatives supporting the use of Olo Hawaii. The Attorney General suggested adding an end date because the bill creates a temporary commission, and several supporters from the University of Hawaii, Office of Hawaiian Affairs, and the Hawaii Civil Rights Commission said the commission could improve coordination, funding decisions, and consistency across agencies. Members discussed whether the commission should include broader representation, including expertise on Niihau dialect speakers and other stakeholders, and the bill was then set aside as the committee moved to the next measure. The committee next considered House Bill 2438, creating the Hawaii Cultural Trust within DBEDT, authorizing an income tax credit for contributions to the trust and qualified cultural organizations, and creating a special license plate to support the trust. DBEDT said it would need additional resources, including staff, to administer the program. The Department of Taxation recommended changing the effective date to 2026 to allow time for implementation and adding a requirement that credits be claimed within one year. OHA supported the bill but objected to language that would require it to maintain a prequalified list of organizations, saying that could limit applicants and conflict with its grant process. The Tax Foundation said it supported cultural funding but preferred direct appropriations and grants over a trust fund and tax credit structure. The final measure discussed was House Bill 2584, which would temporarily increase public land trust revenues transferred to OHA while reaffirming the state’s obligation to the 20% pro rata share, with a repeal date of June 30, 2028. The Attorney General recommended deleting the bill’s requirement that OHA receive a minimum amount equal to the 20% share, arguing the constitution and Admission Act do not specify a precise dollar amount and that the legislature must determine allocation. OHA strongly supported the bill, arguing the state currently pays only about 5% and that historical records show much higher amounts are owed; OHA also pointed to a carry-forward account it said held about $55 million. DLNR opposed the bill because the fiscal impact was unspecified and could affect land management and special fund budgets. Several OHA trustees and supporters urged the committee to pass the bill, and one testifier criticized the state for underfunding Native Hawaiian obligations. No votes were taken in the portion provided, and the committee continued hearing testimony on HB 2584.

Transcript Highlights:

• Let's go on to the discretionary grant. Thank you, members.
• Let's go on to the discretionary grants. Thank you, Mr. Chair.
• Item D are the discretionary grants for your review today.
• This is an amended grant, a federal grant for targeted youth advocacy initiatives for the Southwest Arkansas
• This is an original contract for $270,000, and this vendor will provide grants consulting services for

Committee: All ALC-REVIEW

Summary: The review subcommittee met to consider a supplemental agenda, methods of finance, an alternative delivery project, discretionary grants, and a large slate of construction, out-of-state, and in-state contracts. The supplemental item was a $2.6 million out-of-state contract with Tyler Technologies for a mobile app that would let citizens access state services through a single sign-on, initially for DFA vehicle and licensing services, with possible expansion to other agencies. Members also reviewed five methods of finance, including University of Arkansas projects for roof and cooling tower replacements, a new $100 million academic classroom building at U of A Fayetteville, a police department renovation at UA Fort Smith, and a boiler/chiller replacement at Hope-Texarkana. Questions focused on project timing, why some items were being reviewed after work had begun, and the high estimated cost of the Fayetteville classroom building; DFA explained that projects under $250,000 are not reviewed and that the larger project was still in design and would later seek a guaranteed maximum price. The committee also reviewed two DHS discretionary grants: one for targeted youth advocacy in southwest Arkansas and another adding $582,000 for family-centered treatment training and implementation. In the services contract section, members discussed construction-related contracts, including an ASMSA electrical scope increase tied to three-phase power requirements and the U of A Fayetteville architect contract for the classroom building. Out-of-state contracts included major items such as ACT Education’s $17 million amendment to provide required pre-ACT testing for 9th and 10th graders, a $12.5 million DFA contract for rural health transformation grant management, DHS’s $16.5 million EBT services contract with updated chip-card and fraud-prevention features, and ADH’s special procurement for the Behavioral Risk Factor Surveillance System survey. The committee also reviewed U of A system consulting contracts for financial advisory and sponsorship strategy work, with university officials saying the outside expertise was needed for specialized planning and revenue-generation efforts. In-state contracts covered corrections reentry services, nursing board investigations, foster care and child welfare services, DHS office janitorial work, emergency management radio system expansion, veterans’ home nursing staffing, and UAMS grants consulting. A lengthy exchange centered on the Department of Corrections’ reentry housing contract, with members pressing officials about vacant beds and urging fuller use of the program, while corrections staff said placements depend on screening and eligibility. Another discussion addressed the balance between out-of-state and in-state contracting, with a member noting the large dollar volume going to out-of-state vendors and asking whether Arkansas vendors receive any preference; State Procurement said current law does not allow an in-state preference. The committee approved the supplemental agenda, the methods of finance, the alternative delivery project, the discretionary grants, and the contract lists, and then received routine reports and an emergency action report before adjourning.

Transcript Highlights:

• To date, we've spent or granted $16 million in grants, and we are ready and able and anxious to work
• The second question, in terms of timeline for application to various grant programs: the grant opportunities
• All grant awards are subject to CMS review and approval.
• We had two formal tribal consultations.
• And so we have a medical consultant, research data specialist, and analyst, So we have a medical consultant

Transcript Highlights:

• </c><00:18:52.960><c> because</c> contracts and grants because contracts and grants because collaboration
• Is the commission administering the grants?
• </c> granted out. granted out. &gt;&gt; Absolutely.<00:36:52.560><c> Yeah,</c> &gt;&gt; Absolutely.
• </c> So should we just say in consultation So should we just say in consultation with<01:43:00.000><c
• </c> the climate resilient food systems grant the climate resilient food systems grant program<01:53:

Bills: HB1617

Committee: House Energy & Environmental Protection

Summary: The committees heard testimony on HB 1949, which would create a public dashboard for the green fee to improve transparency and accountability. Testimony from the Climate Change Mitigation and Adaptation Commission, the Office of Planning and Sustainable Development, and many community and conservation groups was generally supportive, with several speakers urging that the governor’s project recommendations remain largely intact and that community-driven projects continue to guide spending. One amendment was suggested to place the dashboard at the Department of Budget and Finance for fiscal expertise, while other testimony favored keeping it with the commission. Members asked about procurement, ETS involvement, recurring hosting costs, and whether the dashboard could be funded from green fee revenues; the commission said it could work with ETS and that green fee funds could reasonably be used. The committees then voted to pass HB 1949 with amendments. The committees also heard HB 2618, which would require the governor to submit a separate bill for amounts tied to any increase in the transient accommodations tax and, in later discussion, was expanded into a broader restructuring of future green fee allocations. Testimony from the Climate Change Mitigation and Adaptation Commission, Hawaii Reef and Ocean Coalition, and others supported the bill and emphasized the value of more predictable, dedicated funding for conservation and climate-related work. During decision-making, the chair described amendments creating several special funds under DLNR, including a watershed biodiversity and wildfire risk reduction fund, an aquatic resources conservation fund, a coastal restoration fund, a cesspool conversion revolving loan fund, and a green fee special fund for remaining revenues, with recommended amounts discussed for some of the funds. The committees voted to pass HB 2618 with amendments. The hearing then moved to HB 1644, a consumer protection measure for residential solar sales that would require compliance with consumer protection laws, licensing or contractor affiliation for sellers, and a standardized disclosure form. Testimony in support came from the Hawaii Green Infrastructure Authority, DCCA’s Office of Consumer Protection, Kauai Island Utility Cooperative, the Hawaii Solar Energy Association, and several solar companies and individuals. Supporters said the bill would address complaints about third-party sales practices and improve disclosure, especially around financing. The committee then began hearing HB 2243, which would require electric utilities to provide public, electronic customer bill impact analyses and annual reports to the Public Utilities Commission; the Division of Consumer Advocacy and the PUC offered comments supporting the measure’s intent.

Transcript Highlights:

• To be eligible for workforce Pell Grant funds, H.R. 1 requires short-term programs to offer participant
• H.R. 1 and this bill will unlock Pell Grants that have historically been reserved for This bill will
• Expanding Pell Grants to these programs has real potential to meet workforce needs by training working
• Offered by private for-profit institutions eligible for these workforce Pell Grants?
• I appreciate the concerns brought up forward by this committee and the committee consultants and the

Committee: House Higher Education

Transcript Highlights:

• Will the consultant please call the roll? Perez? Here. Archuleta? Here. Archuleta here. Chao? Here.
• The consultant notes a quorum has been established. So we will go ahead and begin public comment.
• Consultant, if you can please call the roll. It is aye. Archuleta? Aye. Archuleta, aye.
• If we could have the consultant please call the roll. It is aye. Archiletta? Aye. Archelita?
• Consultant, can you call the roll? Bitt is? Aye. It is aye. Artuleta? Aye. Archeleta aye.

Summary: The Senate Budget Subcommittee No. 1 on Education held its close-out hearing for the 2026 budget plan, with the chair describing the Senate proposal as fully funding Proposition 98 and emphasizing investments in universal school meals, career education, immigrant and LGBTQ+ student supports, higher education compacts, community colleges, and other student services. Public commenters largely supported those priorities, including funding for CalNEW and Dream Resource Centers, educator workforce and English learner supports, community schools, special education, paid pregnancy leave, and the Middle Class Scholarship, while some raised concerns about proposed cuts, borrowing, and the inclusion of non-LEA preschool programs in Prop. 98.\n\nDuring member comments, one senator said many items were supportable but raised concerns about placeholder language, accountability, borrowing for the Middle Class Scholarship, and the structure of paid pregnancy leave and apprenticeship funding, indicating some no votes and abstentions. The chair responded that the budget reflects major investments in K-12 and higher education, including full Prop. 98 funding, elimination of the settle-up amount, expanded student aid, and continued support for immigrant students and resource centers.\n\nThe committee then moved through the vote-only calendar and adopted most staff recommendations by roll call. Several items passed unanimously or with one abstention/no vote, while some higher education and K-12 items drew opposition from one member, including the item on the Middle Class Scholarship borrowing structure and certain proposals related to pregnancy leave, Calbright/common cloud platform, apprenticeship backfill, and other specified issues. The hearing concluded after the chair thanked participants and adjourned the subcommittee.

Transcript Highlights:

• take advantage of grants in this.
• I am also with Burke Consulting.
• So we recommend increased grant program resources to allow the grant award amounts to keep pace with
• The JTC team can orient you to that consultant team as well.
• us a grant to explore a program to do an emergency streets treatment.

Committees: Joint Transportation , Joint Joint Transportation Committee

Transcript Highlights:

• That we do not take trust for granted.
• How do we go— is that deep meaningful consultation.
• And that's something that is currently in consultation as well.
• Sent out requests and re-requests for consultation.
• Hearst Museum, which is much more respectful for consultation.

Transcript Highlights:

• </c><00:13:49.360><c> or</c> any public entity for consulting or any public entity for consulting or
• Overall, all grants, including federal grants too, it's 75% of the grant funds.
• They give out in the form of grants.
• Overall, all grants<00:36:16.079><c> including</c><00:36:16.560><c> federal</c><00:36:16.880><c> grants
• </c><00:36:17.280><c> too,</c> grants including federal grants too, grants including federal grants too

Committee: Joint Accountability, Efficiency, Transparency

Transcript Highlights:

• </c> certain extent rely on our consultants certain extent rely on our consultants and<01:36:19.119><
• </c><01:37:24.480><c> K</c> consultant is this consultant local K consultant is this consultant local
• </c> through the beneficiary Consulting through the beneficiary Consulting Consulting<02:11:19.480><c
• We have a grant department, and all grants are approved by the B—no, but in the sense of what you're
• ><c> by</c><02:13:39.239><c> the</c> all grants are approved by the all grants are approved by the B<

Summary: The joint Ways and Means and Hawaiian Affairs committee heard a budget presentation from the Department of Hawaiian Home Lands on its biennium requests for critical projects, repairs and maintenance, and operations. DHHL described its role in administering the Hawaiian Home Lands Trust, noted the large beneficiary wait list, and said prior funding, including Act 279, has helped the department accelerate land development and reduce vacancies. Officials said they have about 47,219 applications involving 29,548 Native Hawaiians, roughly 28 projects underway, and that about $471 million of a $600 million appropriation has been encumbered, with the remaining lapse-fix funds expected to be resolved before the June 30, 2026 deadline. DHHL emphasized that its current request would support additional lot development and could help produce roughly 6,000 units from the existing project pipeline, with another phase of requests potentially adding about 2,000 more units. The department said it is prioritizing shovel-ready projects, accelerating lease awards and orientations, and using a mix of approaches including paper leases, rental-with-option-to-purchase, owner-builder, and loan programs. Officials also discussed a shift toward denser urban development, citing projects in West Oahu and Honolulu, and said the department is working to reduce its vacancy rate and move beneficiaries onto the land more quickly. Members questioned why Oahu, despite having the largest wait list, was receiving comparatively lower amounts, and DHHL responded that land availability and cost drive those decisions, with Oahu having limited developable land and very high acquisition costs. The department pointed to land acquisition on Kauai and other islands, and to urban high-rise projects that can yield far more units on small parcels. Members also raised long-term maintenance and wildfire risk, asking whether current acquisition and development choices account for future infrastructure costs; DHHL said maintenance is a growing concern, especially on large unused or isolated lands, and that it is pursuing Firewise planning, federal funds, and partnerships to reduce risk. The discussion also touched on mixed-use and community-led development, with DHHL explaining that it leases land to nonprofit homestead associations under general leases with milestones, business-plan requirements, and land-use restrictions to support local services and community goals.

Transcript Highlights:

• The fund offers two distinct grant categories: one for small grants, exclusively for community-based
• So while the Commission had conducted the CYBHI round four and five grant procurements, those grants
• I can say as of last March, we have granted out $5.8 billion of all of the B-CHIP funds. granted out
• Round two was a planning grant, and we really looked through that planning grant process.
• Since you're in a consultation relationship, has there been consultation with Cal OES, given that this

Summary: The subcommittee heard budget and policy updates from the Department of State Hospitals, the Commission for Behavioral Health, and the Department of Health Care Services. DSH described its proposed 2026-27 budget of $3.2 billion, including savings tied to IST solutions, higher patient-driven operating costs, and a small increase in caseload projections. Officials said the department has met court-ordered IST treatment benchmarks, with wait times reduced from a pandemic peak of 1,953 pending placements to about 250, and average treatment initiation now around five days. Members asked about the effects of Proposition 36 and SB 1323, rising outside hospitalization costs, Medicare enrollment, and whether IST solution funding was being overbudgeted; DSH said referrals are slightly down overall, aging and medically complex patients are driving outside care costs, and the IST solution savings reflect slower-than-expected program activation rather than a service gap. The department also outlined proposed funding for CONREP cost increases, a new county-by-county LPS bed allocation model, electrical infrastructure upgrades at Napa and Patton, SB 380 transitional housing feasibility work, and additional dental staffing and space at Metropolitan and Patton. The Commission for Behavioral Health reviewed its role in the Behavioral Health Services Act transition and its new Innovation Partnership Fund. Staff said the commission is shifting from county-level innovation oversight to a statewide grant strategy, with the first $20 million RFA drawing strong interest and awards expected in mid-June. Members asked how “innovation” would be defined, whether grants could be renewed after the initial three-year contracts, and how the state would ensure the money supports real service delivery rather than general outreach or training. The commission also sought a liquidation deadline extension for the Alcove youth drop-in center grants so remaining funds can be spent before they revert, allowing sites to finish implementation and support the final evaluation. DHCS provided an overview of CalAIM and BH Connect implementation, including updated specialty mental health access criteria, new ASAM-based substance use treatment standards, contingency management, traditional health care practices for tribal members, workforce investments, evidence-based practice expansion, IMD participation, and transitional rent services. The department also addressed BHSA implementation, saying it does not track specific local program cuts but will monitor county three-year plans, performance measures, and outcomes as counties shift to the new funding structure. On H.R. 1, DHCS said it is preparing outreach, eligibility simplification, and exemption strategies to reduce Medi-Cal coverage losses, including clinic navigators, a statewide outreach campaign, and possible employment supports through a future waiver. The department also reported that BH-CHIP bond funds have supported 437 infrastructure projects, creating 546 facilities and more than 9,500 residential beds, with additional outpatient capacity and tribal investments. Finally, DHCS outlined a proposed 988 trailer bill to create a statewide designation process for 988 centers and mobile crisis teams, with implementation no earlier than October 1, 2027.

Transcript Highlights:

• Another good source is on-call consultants, where local governments would hire their own consultants
• Oh, yeah, the grant program. So one of the other things that it commissioned was a grant program.
• Commerce was directed to provide grants to local governments for one of two things.
• systems, and we provided a range of grants to local governments to do that.
• Some capacity for local governments through grants to...

Committee: House Local Government

Summary: The committee heard presentations on the State Environmental Policy Act (SEPA) and recent permitting reforms affecting local governments. Department of Ecology staff explained SEPA’s purpose, the review process, exemptions, planned actions, and recent housing-related changes, including transit-oriented development exemptions and SEPA appeals protections for certain local ordinances. Members asked about repeated SEPA reviews, cultural and historic resource review, and how SEPA interacts with NEPA. Seattle’s Department of Construction and Inspections said recent SEPA exemptions have reduced the number of reviews for residential projects and supported more housing permitting, and the city is considering raising exemption thresholds further. The State Building Code Council provided an update on code adoption timelines and implementation of legislative housing measures. Council staff said the 2024 code cycle is delayed administratively, with final adoption moved to May 15, 2026 and implementation targeted for May 1, 2027 unless legislative or administrative changes allow the current November 1, 2026 implementation date to remain. They also reported progress on code updates for single-stair buildings, multiplex housing, dwelling unit size, and temporary emergency shelter standards, with draft language underway. The committee then reviewed recent permitting legislation and implementation. Commerce staff summarized bills from 2023 and 2025 that set permit processing deadlines, limited pre-application requirements, restricted design review to clear and objective standards, changed historic designation rules, and expanded middle housing, ADU, lot split, passive house, self-certification, transit-oriented development, and parking-related requirements. Commerce also described its studies, guidance, grants, and reporting work under SB 5290, noting that 2024 data showed mixed performance and that local governments need better checklists, digital tools, staff training, and clear application standards. Issaquah and Kitsap County described local efforts to streamline permitting through code updates, pre-application meetings, software improvements, and a 2x6 review process, while also warning that staffing shortages, complex site conditions, coordination with state agencies, and reporting burdens continue to slow permits. No votes were taken.

Transcript Highlights:

• Statute and grant agreements direct revenue distribution.
• There are some eligibility criteria for that grant.
• Will this grant look at whether or not the VA already covers the full cost, including taxes?
• . if the grant would cover the sales tax if it was applicable.
• Need for adaptive equipment for veterans who are not eligible for the federal grant.

Summary: The Joint Legislative Audit and Review Committee met on September 17, 2025, welcomed new members, and initially lacked a quorum until Representative Berg arrived. The committee adopted the July 15/16 meeting minutes and discussed a proposed 2026 meeting schedule, including possible changes to address the heavy July workload from tax exemption reviews. Staff then presented the annual lodging tax expenditures report, which showed 213 municipalities received distributions in 2024, 91% reporting compliance, about $114 million awarded for more than 1,700 activities, and over 115 million attendees reported. Several members questioned the self-reported nature of the data and whether the report had enough value; the executive committee indicated it may recommend removing the lodging tax reporting requirement from statute because it is not a compliance tool and consumes significant staff time. The committee next heard the preliminary performance audit of the Office of Privacy and Data Protection. Staff said OPDP generally meets its statutory responsibilities and is well regarded by users, but its statute should be updated to match its current capacity and focus. The audit found OPDP’s work is largely centered on state agencies, with limited public outreach and some overlap with other entities on broadband and privacy education. Two recommendations were presented: review and update OPDP’s statutory duties, including broadband reporting and public outreach, and develop performance measures that better assess long-term privacy outcomes rather than just outputs. Committee members asked about FERPA and other federal privacy laws, and OPDP staff said they can provide broader privacy training and would be willing to offer more specific training if requested. The committee adopted the final report on Washington State recreational boating programs without opposition. Staff reported that boating-related revenues in 2021–23 totaled $108 million, with 53% directed to general government and transportation accounts and 47% to boating programs or projects; no recommendations were made. Members asked about boater education outcomes and agency overlap, and staff and agency representatives said education appears to have reduced fatalities and that the six involved agencies have distinct roles coordinated through a quarterly work group. Finally, staff presented planned study questions for upcoming reviews of L&I’s enforcement of farm worker labor laws, DNR’s Eastern Washington sustainable harvest calculation, and seven 2026 tax preference performance reviews. Members raised scope questions about the farm worker study and whether it should be framed around agricultural workers, and staff said they would follow the legislative mandate and could consider any future clarification. For the DNR review, staff said they are tracking DNR’s ongoing harvest calculation and will assess whether its data and methods align with best practices, while noting that future wildfire or other disturbances are outside the study’s scope. The tax preference review discussion covered the seven preferences to be studied in 2026, including data centers, Main Street credits, equitable access to credit, private airplane sales, landfill gas equipment, adaptive equipment for disabled veterans, and a real estate excise tax exemption for supported living transfers; members asked about equity, environmental impacts, and how staff would evaluate eligibility and savings. The meeting adjourned before noon.

Transcript Highlights:

• Representative Kim King explained that House Bill 605 deals with the grant program.
• The bill specifically explains which grants qualify for the program and clears up a misconception about
• Rebecca Hearts, co-founder for Grant Ready Kentucky, responded that as of March, of the $200 million
• program what the bill with the grant program what the bill does<00:09:44.560><c> is</c><00:09:45.240
• qualify for the program it which grants qualify for the program it also<00:09:51.160><c> clears</c><

Summary: The Appropriations and Revenue Committee took up several House bills and committee substitutes. House Bill 2, as amended by Senate Committee Substitute 1, was described by Rep. T.J. Roberts as restoring a tax exemption enacted in 2024 by providing refunds with interest to those improperly taxed and creating a cause of action; the substitute also aligned state filing deadlines for certain flood-disaster counties with the federal November 15 deadline. The committee adopted the substitute and then passed the bill with favorable expression. The committee also adopted a title amendment for House Bill 544, which Rep. Jason Petrie said was part of the state’s flood-relief discussion and would allow the guard cap to be used over the biennium rather than annually, effectively increasing the cap from $50 million per year to $100 million over two years; the measure passed with favorable expression. House Bill 552, handled by Rep. Josh Bray after Rep. Kim King’s absence, was described as simplifying tourist commission appointments. The committee substitute added creation of the Kentucky-Ireland Trade Commission and changed marina licensing agreements by exempting private contractors from the model procurement code. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. House Bill 605, sponsored by Rep. Kim King, clarified which grants qualify for a grant program and allowed cities or counties to apply on behalf of water districts or other entities not directly affiliated with them; Rebecca Hearts of Grant Ready Kentucky said the program had matched $103 million of the $200 million allocation, generating about $469.98 million in total project value. The committee adopted the title amendment and passed the bill with favorable expression. House Bill 606, by Rep. Wade Williams, added a capital-oversight reporting requirement for school district general obligation bonds that had been omitted from prior legislation. The committee substitute also made several budget and program adjustments, including moving Regional Training Center funds, accelerating funding for the Grand Lyric Theater, correcting water funding language, removing Odyssey Inc. language from a treatment-related item, fixing a double appropriation to LifeWorks Transition Academy, clarifying carry-forward language, allowing SRO reimbursements for public and non-public schools, and authorizing an additional $10 million in agency bonds for Western Kentucky University athletic facilities. The committee adopted the substitute, approved a title amendment, and passed the bill with favorable expression. The committee then spent the most time on House Bill 695, a Medicaid-related bill. Rep. Adam Bowling said the bill was intended to stabilize Medicaid, create oversight and advisory mechanisms, and address growth in the program. Cabinet for Health and Family Services Secretary Eric Friedlander and Medicaid CFO Steve Beckle said they were generally supportive of the transparency and reporting changes but flagged risks, including federal compliance concerns, budget growth from changing the drug rebate treatment, administrative costs tied to MCO rebidding and a managed long-term services study, and some data-collection challenges. Representatives from the Kentucky Association of Healthcare Facilities opposed the section calling for a managed long-term care reimbursement study, arguing it would be costly, duplicative, and likely ineffective, and they warned against managed care models for long-term care. Despite the concerns, the committee adopted the committee substitute by voice vote and moved the bill forward with favorable expression.

Transcript Highlights:

• You're asking for quite a bit of money for a consultant, a million-dollar consultant, and then a $900,000
• Is that for an existing consultant?
• <01:21:11.880><c> and</c> consultant and consultant and explain<01:21:14.679><c> okay</c><01:21:15.040
• </c><01:23:56.840><c> to</c> more than a year for the Consultants to more than a year for the Consultants
• </c><01:24:01.840><c> but</c> multi-year contract with Consultants but multi-year contract with Consultants

Summary: The Committee on Finance held an informational briefing with the Department of Labor and Industrial Relations on its budget, staffing, and operations. The director reviewed department leadership and reported on recruitment and retention efforts, including a 14% vacancy rate, a 10.5% workforce increase from filling 189 positions, and the Hela Imua internship program, which has placed 516 interns since inception and led to 62 permanent hires. The department also described modernization efforts, including the UI Huakai project and the Disability Compensation Division’s electronic case management system, and said the unemployment compensation trust fund exceeded $71.5 million, triggering Schedule C for calendar year 2025. The department’s main budget requests included $2.9 million for fiscal year 2026 to support maintenance and operations of the electronic case management system, plus restoration of two enforcement specialist positions. Officials said those positions are needed to address a decline in investigators from 11 to six since 2009, improve compliance, and handle Hawaii Compliance Express certificate work. Additional requests included two human resources specialists to address recruitment backlogs, two labor enforcement specialists to reduce a backlog of Chapter 104 prevailing wage and wage cases, and two positions for the Office of Community Services to expand immigrant services and access centers. The department also discussed federal funding for unemployment insurance and workforce programs, including National Dislocated Worker Grants and Workforce Innovation and Opportunity Act funds, and said some funding is received in increments and may require extensions. Members asked about Kauai inspection coverage, federal funding uncertainty, the size of the special unemployment insurance fund, and whether the department could ramp up staffing during a future crisis. Officials said Kauai is currently served by inspectors from Honolulu and there are no plans to open a permanent island position because of staffing constraints. They said the department is meeting federal guidelines and is not in jeopardy, and that the special unemployment insurance fund has about $10 million, with current UI operations funded at a little over $15 million, meaning the fund may need to cover roughly $5 million if federal support declines. The director said the department would use the special fund to supplement shortfalls, but noted that federal funding cuts and the loss of ARPA support have already affected operations.

Transcript Highlights:

• But if you wanted to look up IT consulting contracts, let's see here. Let's see here.
• When it comes to consulting services that I saw up there on the board, and Mr.
• The consulting services that are listed, are those consulting services, do we look at whether it is a
• We had 70,000 grant disbursement agreements.
• We talked about consulting services and subcategorizing consulting services, and I don't know if Mr.

Summary: The subcommittee heard a panel on Florida’s IT procurement process from the Florida Digital Service, the Department of Management Services, and the Department of Financial Services. Witnesses walked through the procurement lifecycle, including planning, market research, solicitation, evaluation, award, implementation, and closeout, and emphasized the role of budget timing, contract managers, and subject matter experts. DMS described the state’s enterprise contracting system, noting more than 1,100 active vendor agreements, over 800 involving IT services, and the statutory requirement to request 25 quotes for certain IT purchases. DFS demonstrated the Florida Accountability Contract Tracking System (FACS), explaining how agencies upload contract and payment data and how the public can search contracts and related documents online. Members focused on accountability, transparency, and whether the state is getting the best products and vendors. Questions addressed how contracts are vetted, how technical evaluations are performed, how financial consequences are used for missed deliverables, how public records and confidential information are handled, and how the state screens vendors for foreign-concern or bad-actor issues. Witnesses said agencies rely on technical experts for evaluations, that contract terms should include measurable deliverables and meaningful financial consequences, and that agencies—not procurement staff—generally manage performance, though Florida Digital Service oversees large IT projects of $10 million or more. The committee then shifted to broader policy discussion, including Senate Bill 7026 and proposals to reorganize state IT governance. Several members argued for stronger centralization under a state CIO or similar enterprise authority, while others cautioned against abrupt restructuring and stressed the need for a transition plan. Members also raised concerns about workforce retention, consulting services, recurring project overruns, and the need for better planning and periodic monitoring. No votes were taken; the meeting ended with the chair thanking members and staff and adjourning the subcommittee.

Transcript Highlights:

• </c> selecting and administrating grants. selecting and administrating grants.
• ><c> those</c><00:08:12.840><c> grants.
• </c> with entities receiving those grants. with entities receiving those grants.
• that they gave out by just going to consult for those companies that are receiving the grants that they
• that they gave out by just going to consult for those companies that are receiving the grants that they

Summary: Senate DFL leaders held a press conference outlining a fraud-prevention agenda centered on transparency, accountability, and modernization of state systems. Majority Leader Erin Murphy said Minnesotans are angry about fraud and that the caucus has already passed multiple fraud-prevention measures, but more work is needed. She and other senators emphasized that outdated county and state IT systems leave programs vulnerable to waste and abuse, and said they want to pursue both immediate upgrades and longer-term funding solutions, including possible bonding for technology infrastructure. Senator Zena Mohamed described legislation to overhaul program integrity in Medicaid and human services by adding safeguards before, during, and after provider enrollment and service delivery. She said the goal is to prevent theft before dollars are spent, rein in third-party entities that profit without accountability, and improve consumer protections and reporting pathways. Senator Amanda Hemmingsen-Jaeger highlighted a bill to ban cryptocurrency kiosks, arguing they are heavily used in scams targeting seniors and vulnerable people, and also backed a state consumer financial protection bureau and stronger False Claims Act enforcement. Senator Rob Kupec focused on ethics and conflicts of interest, including a proposal to bar legislative members and certain state employees from quickly moving into jobs tied to entities receiving state appropriations or grants. He also said lawmakers should strengthen penalties for theft of public funds and restrict state contracts for people convicted of fraud. Senator Heather Gustafson promoted her Office of Inspector General bill, saying oversight is fragmented and an independent office is needed for investigations, safeguards, and early detection; she said the Senate passed the bill 60-7 last year and she wants it enacted. In response to questions, Murphy and Gustafson said the OIG should have law-enforcement powers, that bipartisan support exists in principle, and that the House needs to settle on a single proposal. The senators also said prepayment review can be useful but can disrupt services, and they argued agencies must use the tools already given to them while lawmakers continue oversight.

Transcript Highlights:

• Will the consultant please call the roll? Perez? Here. Archuleta? Here. Archuleta, here. Chao?
• Consultant, if you can please call the roll. It is aye. Archuleta? Aye. Archuleta, aye.
• Consultant, can you call the roll? Those items are out. Thank you.
• Consultant, can you call the roll? Those items are out.
• Consultant, can you call the roll? Those items are out. I want to say thank you to all.