Transcript Highlights:

• From the state auditor's office, that updates and modernizes our Oklahoma municipal audit process for
• So, for instance, the credit card transactions weren't even being reviewed and agreed upon audit procedures
• And as we all know, there's a lot of fraud In credit cards potentially.
• So this group put these agreed upon audit procedures in place, and now we're codifying those in state
• these cities on a day-to-day basis. auditor's office and third-party CPAs that actually audit these

Bills: HB2979 , HB3790 , HB3142 , HB3463 , HB4143 , HJR1086 , SB392 , HB3087 , HB3037 , HB3581 , HB4058 , HB2959 , HB4227 , HB2997 , HB4125 , HB1453 , HB3521 , HB3691 , HB2015 , HB2940 , HB1016 , HB3267 , HB3695 , HB3697 , HB3045 , HB3662 , HB3453 , HB3053 , HB3301 , HB3495 , HB3584 , HB3586 , HB3587 , HB3845 , HB4198 , HB4425 , HB2970 , HB3338 , HB3443 , HB3783 , HB3800 , HB3818 , HB1242 , HB1752 , HB2961 , HB2967 , HB2973 , HB2988 , HB3031 , HB3240 , HB3047 , HB3052 , HB3066 , HB3086 , HB3175 , HB3177 , HB3178 , HB3429 , HB3548 , HB3638 , HB3404 , HB3704 , HB1590 , HB3759 , HB3831 , HB3904 , HB4092 , HB1979 , HB1983 , HB1250 , HB2952 , HB3671 , HB3920 , HB4118 , HB3944 , HB3969 , HB3973 , HB3975 , HB3976 , HB3978 , HB3983 , HB3984 , HB3942 , HB4203 , HB2588 , HB3024 , HB3383 , HB3279 , HB3919 , HB3883 , HB4193 , HB3431 , HB3435 , HB4352 , HB4484 , HB1245 , HB3172 , HB3306 , HB4294 , HB3880 , HB2929 , HB3128 , HB2956 , HB3015 , HB3114 , HB3567 , HB3749 , HB4229 , HB4237 , HB4253 , HJR1046 , HJR1084 , HB3411

Keywords: HB2979, Talyn Bain Act, school zone, school safety, speed limit, 45 mph, state highway, Department of Transportation, ODOT, flashing beacons, traffic enforcement, speeding violation, public school, private school, K-12, drop-off, pick-up, highway safety, municipal maintenance, county commissioners

Transcript Highlights:

• There's multi-jurisdictional audits and compliance burden.
• There's multi-jurisdictional audits and compliance burden.
• It's kind of like the historical tax credit.
• I think a step down on the credits would be helpful.
• The historic tax credit has it.

Summary: The committee first took up HB 620, a constitutional amendment and companion legislation to centralize collection of state and local sales taxes. The author and supporters from the Tax Foundation, COST, NFIB, and LABI argued that Louisiana’s decentralized system creates high compliance costs, inconsistent administration, and lost revenue, especially for small businesses and out-of-state sellers. Several members raised concerns about the recent rollout of the hybrid e-file system, the effect on local cash flow and auditability, and whether the state could implement a fully centralized system without disrupting parish and municipal revenues. The author ultimately agreed to voluntarily defer HB 620 and its companion HB 658 so the committee could see how the current system performs and continue working with local stakeholders. The committee then heard HB 898, which would dedicate a portion of surplus revenue to reducing and eventually eliminating the state income tax. The author described it as a gradual, revenue-triggered approach to tax elimination, while another member suggested pairing it with reductions in tax exemptions and credits. The bill was voluntarily deferred for future consideration. Next, the committee considered HB 217 and HB 214, a bill and constitutional amendment creating an optional property tax exemption for rehabilitated blighted or derelict properties. Support came from local government and law enforcement groups, who said the measure would give parishes and municipalities a tool to encourage redevelopment and reduce blight. Members discussed safeguards, including local option, whether the exemption should follow the property for 20 years, and whether a step-down at the end of the exemption period should be considered. HB 217 was reported favorably as amended, and HB 214 was also reported favorably. The committee also advanced HB 514 and HB 561, both by Rep. Farnum, which expand property tax relief for seniors and certain trusts. HB 514 creates an optional additional ad valorem tax exemption for homeowners age 65 and older, and HB 561 extends eligibility to certain trusts when the qualifying owner occupies the home. Both measures were described as local-option tools to help seniors remain in their homes, and both were reported favorably as amended. Finally, HB 812, by the vice chair, was heard to allow limited annual compensation increases for parish assessors. Assessor representatives said their duties have expanded and their pay has fallen behind clerks of court; members questioned the lack of direct local voter input, but the bill was presented as optional and funded locally, with discussion of transparency and a possible task force to coordinate future compensation policy.

Transcript Highlights:

• We ask that you support... ...dual credit and post-secondary options available to them.
• J-LARC is supported by nonpartisan staff who complete performance audits, tax preference reviews, and
• The bill before you requires J-LARC to complete a performance audit of fraud in the state's financial
• J-LARC is supported by nonpartisan staff who complete performance audits, tax preference reviews, and
• The audit must determine the number of fictitious... ...aid programs within existing resources.

Summary: The Senate Higher Education and Workforce Development Committee began with a work session on student complaints in higher education. Faculty, union, and research witnesses argued that current complaint systems are sometimes misused in bad faith, disproportionately affecting faculty of color, women, and contingent faculty, consuming institutional resources, and chilling academic freedom. They called for an initial screening process for bias or retaliation, routine data collection and equity review, and a faculty bill of rights. Committee members asked about FERPA, Title IX, and how complaint data could be tracked consistently across institutions. The committee then held public hearings on several bills. SB 6090 would create a Heritage Orchard Program at Washington State University to register and preserve heritage orchards and rare apple varieties; Senator Braun said it would honor Washington’s apple history and support research at low cost. SB 5931 would make technical changes to the Workforce Education Investment Oversight Board, including two-year co-chair terms, a later annual report date, and removal of a dashboard requirement; WASAC, labor, and Microsoft testified in support. SB 5963 would automatically qualify Passport to Careers students as income-eligible for the Washington College Grant and align financial aid definitions; WASAC, College Success Foundation, students, and student advocates supported it as a way to reduce barriers for foster and homeless youth. The committee also heard SB 5978, which would codify and expand the Washington Guaranteed Admissions Program and require annual student notifications about admissions, financial aid, dual credit, and related opportunities. Supporters included the Council of Presidents, faculty, students, parents, and the Washington Roundtable, who said guaranteed admission and better outreach would reduce anxiety, improve transparency, and help more students enroll. Finally, SB 6082 would direct JLARC to audit fraud in state financial aid programs, including fictitious students and AI-enabled abuse; the sponsor cited recent fraud concerns, while community and technical college officials said colleges already have fraud controls in place, warned the audit was unfunded and potentially duplicative, and asked for more resources. No votes were taken, and the committee adjourned after closing the hearings.

Transcript Highlights:

• The December 2024 audit addressed eight areas: seven that were included in the Joint Legislative Audit
• Committee's resolution authorizing the audit, and an eighth area we identified during the audit work
• The December 2024 audit addressed eight areas: seven that were included in the Joint Legislative Audit
• Committee's resolution authorizing the audit, and an eighth area we identified during the audit work
• When you were auditing their...

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• much of the primary residence credit program.
• And I'm calling it a, you know, we call it a credit.
• It's not a credit in the same sense as, for example, the primary residence credit.
• The primary residence credit has certainly helped.
• They also perform some auditing functions with the counties.

Committee: Joint Tax Reform and Relief Advisory Committee

Summary: The committee met to receive updates from the Tax Commissioner’s office on property tax relief programs and related compliance work. Commissioner Brian Croshys reviewed the Homestead Property Tax Credit, Disabled Veteran Credit, and Primary Residence Credit, noting that the Homestead program expanded significantly after HB 1158, that some households are “adjusting out” of eligibility as incomes rise, and that the committee may want to consider indexing income thresholds. Members asked for additional data on bracket breakdowns, possible costs of eliminating income limits for seniors, and how many households are zeroed out by the combined programs. Croshys also discussed the simpler administration of the disabled veteran credit, the growth in participation, and the heavy workload and auditing safeguards built into the new primary residence credit system. He said the department found no material compliance findings and that the program is designed to be digital-first, with county auditors and the Tax Commissioner’s office both involved in review and notification. The committee recessed for lunch and later reconvened, with the chair noting that more detailed PRC information would likely be available at a September meeting. Shelly Myers then presented the statewide property tax increase, or “zero growth,” report and the 2025 statistical report. She explained how county auditors report levy and valuation data, how increases and decreases are counted, and which jurisdictions showed the largest percentage changes in countywide, citywide, school district, and park district levies. In the statistical report, she summarized recent trends in assessed values: agricultural values remained relatively flat, while residential, commercial, and centrally assessed property values increased over the past five years. She also reviewed statewide tax levies by property class and clarified that centrally assessed growth figures were annual averages. Members discussed how shifts in land use and annexation can make it appear that tax burdens are moving from ag to residential/commercial property. Myers then summarized the interim study on the 3% levy limitation under HB 1176, saying most counties complied without budget changes, while some used hiring freezes, deferred purchases, or reserve funds; 23% of counties had to reduce levies, and the affected funds were mainly general, road and bridge, and weed control. She said 12 counties reported zero new growth in the data and that 35 counties reported not using all of their cap. The committee also received an oil tax presentation from Croshys on the stripper well extraction tax exemption. He outlined the number of active stripper wells, the production and revenue implications of the exemption, and projections for future biennia under different tax scenarios. He said the exemption represents substantial savings to operators but also corresponds to production tax revenue that would otherwise be collected, and he emphasized that future outcomes depend on oil prices, well counts, and technology such as CO2 enhanced oil recovery. Nathan Anderson of the Department of Mineral Resources briefly answered a question about why Red River wells have a different production threshold than Bakken wells, explaining it was tied to completion costs and lateral length. The committee then heard from Charlie Gorecki of the EERC, who presented an analysis of typical Bakken well decline curves and argued that most oil is produced before a well reaches stripper status, but that keeping wells open and investing in refracturing or other interventions can recover additional production. No votes were taken during this portion of the meeting; the main actions were receiving reports, asking for follow-up data, and scheduling further discussion for a later meeting.

Transcript Highlights:

• </c> the credit, and they did. the credit, and they did.
• </c> all the tax credits? all the tax credits?
• </c> credit claim. credit claim.
• </c> credit tax credit after the fact. credit tax credit after the fact.
• </c> credits, previously we had tax credits. credits, previously we had tax credits.

Committee: Senate Economic Development and Tourism

Summary: The committee first took up SB 2045 relating to combat sports and recommended passage with SD1. Members adopted requested changes from DCCA and the boxing commission, including clarifying that the onsite medical professional must be a licensed physician, specifying when a deputy combat sports commissioner must file a written report, removing the combat sports registry language and ambulance requirement, clarifying promoter payment requirements, and requiring advance coordination with the nearest emergency room or hospital. The bill also makes technical amendments and sets an effective date of July 1, 2050. The measure passed unanimously among members present, with Senators Fukunaga and Kim excused. The joint hearing then considered SB 2187 relating to the Department of Business, Economic Development and Tourism. Testimony was brief and largely in support, and the committees agreed to pass the bill with SD1, making technical non-substantive amendments and changing the effective date to July 1, 2050. The committees voted to adopt the recommendation, with members present voting aye and some senators excused. A longer portion of the hearing focused on several economic development measures, including SB 2072 on tourism, SB 3049 on a trade-oriented production capacity grant program, and SB 3166 and SB 3167 involving technology development and the blue economy. SB 2072 drew questions about cost, benefit, and the practicality of promoting Michelin-star restaurants in Hawaii. SB 3049 received broad support from DBEDT, HTDC, chambers, and industry groups, but members questioned whether a new grant program was needed, why DBEDT could not do it without legislation, and whether the state should instead use existing entities like HTDC; the discussion also covered matching funds, likely beneficiaries, and administrative capacity. SB 3166 and SB 3167 were supported by technology and ocean-sector witnesses who said the state needs coordinated planning, specialized expertise, and support for advanced manufacturing and ocean innovation, but members raised concerns about relying on third-party consultants, duplication of existing public capacity, ethics, cost, and whether the work should instead be done by state staff or existing institutions. No final votes on the later bills were captured in the transcript excerpt.

Transcript Highlights:

• In 2008-2009, we had our first three students work on a dual credit class and get college credit.
• using IDLA for credit recovery. 2010 and 11, we were able to start using IDLA for credit recovery.
• Fifteen of those are credit recovery, and 22 of those are dual credit college courses.
• And do they get credits, graduation credits toward graduation, by taking those classes?
• dual credit.

Committee: Senate Education

Transcript Highlights:

• look, for six plus years, because of the quickness of our office, we've been introducing AI bills to audit
• and sick and family leave credits.
• You're involved with audits of government, right? Yes, we are. Okay.
• So I'm a former auditor; I spent over a decade auditing publicly traded and private companies.
• We do like continuous auditing; it is a practice that we also enjoy.

Committee: Joint Joint Economic Committee

Keywords: artificial intelligence, waste reduction, fraud prevention, government efficiency, improper payments, data reliability, oversight

Summary: The meeting was chaired by Chairman Schweikert and involved a comprehensive discussion on how to utilize artificial intelligence (AI) for reducing waste, fraud, and improper payments within federal programs. Key witnesses, including Mr. Andrew Canarsa from the Council of the Inspectors General, provided insights on the potential of AI in enhancing government efficiency. The committee emphasized the importance of reliable data and thorough examination of AI application to avoid unintended consequences while addressing the estimated $162 billion in improper payments reported by the federal government. Concerns were raised regarding the recent firing of inspectors general and the impacts that could have on oversight and accountability processes.

Transcript Highlights:

• our employer audit process, we do audit some, and we do.
• But as part of our employer audit process, we do audit some, and we do request to see training records
• And I can say that from our audit findings, they certainly are.
• We are audited by the state every single year.
• Next, going into credit for service and records: the annual period of service that may be credited in

Summary: The committee was called to order, a quorum was established, and the minutes from the prior meeting were approved. The first major presentation came from Montana Public Employees Retirement System executive director William Hollahan, who gave an overview of Montana’s Volunteer Firefighters’ Compensation Act plan. He explained that the plan covers volunteer firefighters in unincorporated areas, is funded by 5% of state fire insurance premium taxes, and currently serves 228 departments with about 2,936 active members and 1,242 retirees. He described eligibility rules, annual training and reporting requirements, benefit levels for partial and full pensions, disability, death, medical, and funeral benefits, and said the plan is actuarially sound with roughly $60 million in assets and a funded ratio slightly above 100%. Committee members asked about prior-service credit, whether EMS personnel are included, the effect on recruitment and retention, and whether expanding coverage would require a funding analysis; Hollahan said prior service is not credited, EMS is not currently included, and any expansion would need financial review. Tim Walleen of Workforce Safety and Insurance then presented a draft North Dakota workers’ compensation solution for volunteer firefighters and volunteer EMS personnel. He explained that volunteer responders are already covered by workers’ comp for medical and wage-loss benefits, but the proposal would set a minimum annual wage of $30,000 for calculating wage-loss benefits for qualifying volunteers, with the benefit paid at two-thirds of that amount. Representative Porter suggested tying the volunteer definition to existing code rather than a fixed dollar amount, and Walleen agreed. Questions focused on whether search and rescue or other volunteer emergency services could be included, whether departments would face new paperwork, and whether volunteer organizations can already elect coverage; Walleen said there would be no additional paperwork and that volunteer coverage is already available. The committee also heard from volunteer fire service representatives and the state fire marshal. An Oakes-area firefighter, Mr. Olson, testified that small departments are struggling with retention, communication, and administrative burdens, especially around separate bookkeeping and funding rules for donated or fundraising money, and he said departments need clearer guidance from the state. State Fire Marshal Dr. Matthew Clark introduced himself and outlined a broader effort to improve education, support, and coordination for fire departments, including a planned 10% audit of certificates of existence beginning in 2027, more outreach through his office, and better assistance with training, reporting, and grant access. He said his office is authorized under current law to provide these services, but the role has been vague and underused. Finally, Arnagard Rural Fire District Chief Rick Schreiber testified in favor of new recruitment and retention ideas, including retirement-style benefits, health insurance, tax incentives, scholarships, grants, and more remote or regional training. He said volunteer departments are losing members, that local tax and donation funds are already stretched, and that any new retirement or incentive program should be sustainable and likely involve a mix of state and local support.

Transcript Highlights:

• Every year they do an audit. We even hired a second firm to come... Every year they do an audit.
• We even hired a second firm to come in and do an audit and started doing the audits more frequently.
• Along with that, in the handbook, it states that the audit firm has to be on the approved audit list
• We do audits. We do everything that's required of us.
• I look at this as an independent audit.

Committee: House Education

Summary: The committee heard several higher education and K-12 bills centered on TOPS, school accountability, and curriculum alignment. It first welcomed University of Louisiana at Lafayette’s new president, Ramesh Kuluru, who spoke about student success, workforce alignment, and the university’s financial recovery. The committee then adopted amendments and reported HR 17 favorably, directing a study of TOPS return on investment with the Board of Regents, Louisiana Works, LED, and the Blanco Public Policy Center. Testimony from business and policy groups supported the study as a way to assess whether state financial aid is producing workforce and retention outcomes. Members then considered HB 385 by Rep. Bamberg, which would require repayment of TOPS awards under certain circumstances when students lose eligibility, with exemptions for hardship and a pathway into LCTCS or career-technical programs. The bill drew strong debate over whether merit scholarships should ever be repaid; opponents argued TOPS is earned for the semester and should only be lost going forward, while supporters emphasized taxpayer accountability. After amendments, the committee narrowly approved the bill by roll call vote, with Chair Schlegel casting the deciding yes to report it favorably as amended. The committee also unanimously reported HB 1058 favorably, which requires the Board of Regents to maintain a uniform data system for state financial assistance; independent colleges and business groups supported the measure as a way to improve accountability and analysis. The committee next heard HB 406 by Speaker Pro Tem Johnson, which asks the Department of Education to study the feasibility of moving oversight of interscholastic athletics to a more accountable model after a legislative study found widespread complaints about the private LHSAA’s transparency and consistency. Supporters said the bill is a cautious step toward reform and a possible 2028–2029 transition, while an LHSAA representative defended current audits and governance and opposed the premise of the bill. Despite objections, the committee reported HB 406 favorably. It then heard HB 787 by Rep. McMakin, as substituted, which would exempt non-public high school students from the TOPS computer science requirement; BESE and the Department of Education opposed the bill, saying it would separate diploma and TOPS requirements and create scheduling confusion, while Catholic school representatives said the requirement conflicts with their theology curriculum. McMakin asked to defer the bill for two weeks. Finally, the committee unanimously reported HB 1059 favorably, which aligns TOPS math requirements with BESE’s integrated math pathways, and began hearing HB 1021 by Rep. Egan on repayment of certain TOPS awards, though the transcript cuts off before that bill was completed.

Transcript Highlights:

• It also removes the tax preference performance statement and the Joint Legislative Audit and Review Committee
• This would provide that the city or county real estate excise tax for affordable housing be a credit
• This would provide that the City or County real estate excise tax for affordable housing as a credit
• It's critically important that these things are done by these professional audit standards.
• It's critically important that these things are done by these professional audit standards, and this

Bills: HB1717 , HB2133 , HB2135 , HB2140 , HB2442 , HB2559

Committee: House Finance

Keywords: affordable housing, sales tax, housing programs, tax incentives, economic development, property tax, senior citizens, tax exemption, local government funding, permanent legislation, adaptive housing, disabled veterans, tax preferences, housing affordability, retail sales tax, governmental transfer, agriculture, land use, local government, tax authority

Transcript Highlights:

• </c> &gt;&gt; operational credit. &gt;&gt; operational credit.
• </c> uh needing this line of credit. uh needing this line of credit.
• </c> line of credit. line of credit.
• c> of</c><01:35:14.960><c> the</c> audits and independent audits of the audits and independent audits
• audit for FY26.

Summary: The committee first handled routine business, including a quorum call, approval of minutes, and informational items on school district financing and KCTCS equipment purchases. It then considered two KCTCS capital projects after initially rolling them together and later unrolling them: a Fire Commission Fire Academy maintenance building project that had grown from an original $2 million authorization to $4.7 million because of design changes, soil issues, and higher mechanical costs, and a $1.5 million renovation of the Blake Lee building at Somerset Community College for a health science simulation lab. Members questioned the large cost increase on the fire academy project and the adequacy of front-end due diligence, while KCTCS said the project was bid and ready to proceed and that a 15% contingency had been included. Both projects were approved by roll call vote, with the Blake Lee project ultimately approved after the committee unrolled the items and took them separately. The committee next heard and approved a University of Kentucky public-private partnership for the Hamburg East Medical Office Building, a five-story, 220,000-square-foot facility with a not-to-exceed budget of $275 million. UK said the project is intended to expand outpatient access, consolidate some services, and support projected growth in patient volume; the building will house multiple specialties, urgent care, therapy, imaging, and a retail pharmacy. Members asked about possible community uses, consolidation of services, and whether the project would free up other space, and UK said it hopes to consolidate some services and free campus space. The project was approved by roll call vote. The committee then approved three UK lease renegotiations: a specialty pharmacy and infusion services lease at Wellington Way in Lexington, a Department of Ophthalmology and Visual Sciences lease at Conte Terrace, and a College of Social Work lease at McGrath Park Way. Members asked about rising lease rates, occupancy, and whether space needs should be reduced; UK and the lessor’s representative said the pharmacy space remains busy, the ophthalmology lease was lower than before, and the social work lease had been negotiated down from a higher request. The committee also approved a Department of Military Affairs project amendment for a Mutual Field Maintenance Shop Restoration project, increasing federal funding by $1 million to $4.5 million because of higher construction costs, and approved a Kentucky State University Shanty Hall renovation project funded by bond and HBCU Title III funds. Finally, it approved a new lease for the Office of Mines and Minerals in Pike County, a new lease for the Cabinet for Health and Family Services in Pulaski County, and a lease renewal for the Cabinet for Health and Family Services in Kenton County after questions about rent increases and office utilization; the cabinet said the Kenton County space still has limited vacancy and remains in use by field staff. The meeting ended as the Kentucky Infrastructure Authority began presenting six sewer and water loans and six cleaner water program grant reallocations, with members agreeing to roll those items for later consideration.

Transcript Highlights:

• Um, this is money for an audit. Could you help people understand auditing what?
• </c> this is this is money for an audit. this is this is money for an audit.
• </c> fiscal year 25's audit on that contract. fiscal year 25's audit on that contract.
• </c> year for for an audit. Yes. year for for an audit. Yes.
• But we can't audit a year that we haven't had. >> So if we're audit ... we had to ask for an audit for

Summary: The committee first approved the October 13 minutes and then moved through a large agenda of contracts and agreements, including a deferred list from the September 2025 agenda. Members questioned several agencies about the purpose, cost, and duration of the items before them, with repeated motions to consider the contracts reviewed without objection passing by roll call. The Office of Energy Policy and Energy and Environment Cabinet presented a solar-and-battery program. Members asked about panel and battery lifespan, warranty coverage, who would pay for replacement or disposal, and whether the program made sense in Kentucky. The agency said panels and batteries generally last 25 to 30 years, warranties would cover replacement during the warranty period, EPA guidance would govern disposal, and federal funds would cover program expenses. Officials estimated the program could reduce participating homeowners’ utility bills by about 70%, with a minimum required savings of 20%. The Department for Community Based Services explained a new vendor contract for SSI initial and redetermination work for children in out-of-home care, saying the work is federally required, the department lacks in-house capacity, and the contract replaced a prior vendor after an RFP protest and rebid. The Department of Highways described umbrella traffic engineering contracts for smaller highway safety projects, noting they are used for spot improvements and are nearing full utilization. The Kentucky Historical Society said its contract funded a temporary exhibit tied to 250th anniversary programming, and the Board of Medical Licensure discussed an amended audit contract, explaining that annual audits were adopted after an auditor’s recommendation and that the board is funded by state allocation plus fees and fines. The Department for Natural Resources/Abandoned Mine Lands gave the most extensive presentation, describing a $5 million engineering services contract as part of a much larger workload increase driven by Bipartisan Infrastructure Law funding, with projects prioritized by citizen complaints and safety impacts; the agency said the contract supports design and oversight for community-scale mine reclamation projects that exceed in-house capacity.

Transcript Highlights:

• around 80% of the people use their credit cards to pay for their items.
• or other small businesses charged and require them to pay sales tax under the audit.
• under the audit.
• So how could it not be incident to the extension of credit?
• So how could it not be incident to the extension of credit?

Committee: House Commerce, Consumer Protection, Energy and the Environment

Summary: The Commerce Committee met in executive session and voted do pass on House Bill 2717 by a 7-0 vote. It then adopted a House Committee substitute for House Bill 2465, described as changing a number from two to one, and passed the substitute bill 8-0. The committee also adopted an amendment and House Committee substitute for House Bill 1791, which adds an emergency permit provision allowing a 30-day extension to obtain a full permit, and passed that substitute 8-0. Representative Manser raised a question about whether the bill would align with federal disaster recovery grant requirements, and the chair said he would look into it further. The committee then heard House Bill 2927, which would revise Missouri’s bad faith/time-limited settlement demand statute. Sponsor Representative Parker said the bill is intended to clarify that settlement demands used to support extra-contractual or bad faith claims must be in writing, remain open for at least 90 days, and reference the statute. Supporters, including representatives of the Missouri Insurance Coalition, Shelter Insurance, and health care and business groups, said the bill closes a loophole created when plaintiffs avoid the current “time-limited demand” language and instead use untimed or vaguely timed demands, which they argued increases litigation and insurance costs. Opponents, including attorney Blake Marcus, argued the bill would make it harder for injured people and policyholders to hold insurers accountable, would encourage delay, and would increase the need to hire lawyers earlier. No vote was taken on HB 2927 in the transcript. The committee also heard House Bill 2057, a technical fix for an entertainment district in Osage Beach. Representative Vernetti said the bill corrects language from last year’s legislation after the Senate used the wrong population figure, and supporters said it would allow patrons to move between venues within the district under controlled alcohol rules similar to other Missouri entertainment zones. The committee then heard House Bill 1707, which would exempt credit card surcharge amounts from sales tax. Sponsor Representative Coleman and supporters from the business community said the Department of Revenue has been taxing these surcharges in audits, creating a burden for small businesses, and that the bill would clarify that fees tied to the extension of credit are not taxable. The committee adjourned after the hearings, and no further votes were taken on those bills in the transcript.

Transcript Highlights:

• Regarding annual audit and contracting requirements, out with Republicans not voting.
• SB 785, Caballero, medical equipment tax credit, do pass out on a roll call.
• SB 750, Cortese, California Housing Finance and Credit Act, two-year bill.
• SB 287, Grayson, manufacturing tax credit, this is a two-year bill.
• Sorry, SB 587, Grayson, manufacturing tax credit, two-year bill.

Summary: The Assembly Appropriations Committee held its August 29, 2025 suspense hearing on Senate bills, with the chair emphasizing the state’s ongoing budget constraints and the need to make difficult choices among 261 bills on the suspense file. After establishing a quorum, the committee began taking action bill by bill, with many measures receiving do pass or do pass with amendments recommendations, while others were held in committee or designated as two-year bills. The chair noted the agenda was organized alphabetically by author and that results would be posted later on the committee website. The hearing covered a wide range of topics, including insurance and claims data, wildfire relief and prevention, water planning, energy and utility regulation, housing and land use, health care, labor and employment, criminal justice, education, environmental policy, and election-related measures. Several bills were amended before passage, often to narrow scope, remove sections, adjust definitions, delay implementation, or clarify funding and enforcement provisions. Some notable actions included moving bills on AI regulation, transit-oriented housing, paid family leave, wildfire mapping, chemical hair relaxers, and pharmacy benefit managers, while other bills on subjects such as controlled substances, high-speed rail, and certain education or housing proposals were held. The committee also took formal roll-call votes on selected bills, with some passing on A roll calls and others on B roll calls; a number of measures were advanced with Republicans not voting. One highlighted vote was SB 79 by Senator Wiener, which passed after amendments and a recorded roll call. At the end of the hearing, the committee reported that 190 bills were moved to the Assembly Floor, either as do pass or do pass with amendments, concluding the suspense hearing for the session.

Transcript Highlights:

• This bill ties the tax credit more closely to the federal R&D credit under Section 41 of the Internal
• There is a federal R&D tax credit, and the bill before you would tie the franchise tax credit directly
• Anyway, Tony, you mentioned that the 5% credit is not enough, so we've got an R&D credit that would go
• In this particular area, I handle the application and defense in audit of these credits.
• And so, in one instance, we had a member who had an audit.

Bills: SB214 , SB935 , SB1030 , SB1901 , SB2018 , SB2020 , SB2066 , SB2206

Committee: Senate Finance

Transcript Highlights:

• In your experience, how many different tax credits pay the tax credit and then the state then in turn
• beef tax credit, qualified equity investment tax credit, grape and wine producers tax credit, alternative
• and school tax credit.
• nobody knows of such an audit that we're getting the return on investment for any of these tax credits
• kinds of tax credits.

Committee: House Agriculture, Food Production and Outdoor Resources

Summary: The House Agriculture Committee first met in executive session on House Bill 2998, adopting a committee substitute that narrowed the bill to a study of the Upper Mississippi River Basin and the Rural Development Office and extended the deadline to December 1, 2029. Members discussed the bill’s roughly $3 million fiscal note and whether the proposed river-related study and power-generation concept would be a worthwhile investment. The committee adopted the substitute and then voted the committee substitute for HB 2998 do pass by a 21-0 roll call. The committee then held a public hearing on Senate Substitute for Senate Bill 913, which would extend several agricultural tax credit programs for five years, including the Missouri Agricultural and Small Business Tax Credit (Mazbita), rolling stock credits, meat processing incentives, biodiesel-related credits, specialty crop credits, and a new short-line railroad credit. Senator Curtis Gregory said the bill was intended to provide certainty and support rural infrastructure, agricultural processing, and rail access, and witnesses from the Missouri Soybean Association, Missouri Farm Bureau, Missouri Corn Growers, Missouri Chamber, short-line railroads, Missouri AgriBusiness Association, Missouri Dairy, Missouri Bankers Association, Missouri Railroad Association, and Missouri Pork Association testified in support. Opposition came from a public advocate who argued Missouri’s tax credit system is too large, lacks adequate auditing, and could cost tens of millions of dollars while adding state administrative costs. Committee members raised questions about the fiscal note, the carryforward of unused credits, and whether the rolling stock credit backfills local property tax revenue; supporters responded that the credit makes local governments whole and that the programs have strong returns on investment and help preserve agricultural and rail infrastructure. No final vote on SB 913 was taken in the transcript, and the committee adjourned after the hearing.

Transcript Highlights:

• How many audits?
• Auditors review each report for quality assurance and certify or reject the audit reports based on audit
• The controller has an audit plan. They’ve been working through an audit plan.
• I believe that if we invested in audit, audit capabilities, that we probably will end up netting more
• The controller is, has an audit plan. They've been working through an audit plan.

Summary: The subcommittee first heard an informational presentation on the May Revision’s proposed reorganization of the Business, Consumer Services and Housing Agency into separate housing-focused and consumer/business-focused entities. Administration officials said the split would improve oversight, streamline decision-making, and create a dedicated California Housing and Homelessness Agency with a new housing development and finance committee. The Department of Finance said funding was needed in 2025-26 to begin implementation, while the LAO recommended rejecting the proposal without prejudice because the Little Hoover Commission review was still pending and the plan would require ongoing General Fund costs. Members raised concerns about the timing, the lack of alignment with the budget process, and whether the reorganization would improve accountability for homelessness spending; several public witnesses supported the concept but stressed it could not substitute for new housing and homelessness dollars. The committee then took up the Department of Veterans Affairs. CalVet requested funding for phase three of its electronic health care record project and a trailer bill to preserve authority for federal background checks, but the May Revision withdrew requests for deferred maintenance and additional administrative support. The LAO noted deferred maintenance can prevent larger future costs, and the chair criticized the withdrawal of less than $1 million for veterans’ homes as short-sighted given existing repair needs. No vote was taken. Next, the Department of Housing and Community Development presented its budget. HCD said the May Revision provides no new affordable housing or homelessness funding, but does retain existing rounds of funding and proposes a $31.7 million reversion from undersubscribed housing programs. Members from both parties expressed concern about zeroing out ongoing housing and homelessness investments, especially for LIHTC, the Multifamily Housing Program, and HAP. HCD also defended its homelessness accountability and compliance work, saying the unit includes about 30 program staff and six attorneys, with three additional attorneys requested mainly to handle public records and litigation workload. Public commenters largely opposed the lack of new funding and urged continued support for housing and homelessness programs, while some supported the reorganization and accountability efforts. Finally, the committee heard Go-Biz proposals. The administration requested authority to increase funding for a federal trade program match if needed, plus reappropriations for administrative funds tied to the Containerized Ports Interoperability Grant Program, zero-emission vehicle operations, and the Women’s Business Center Enhancement Program. It also proposed withdrawing the Cal Competes grant request and reverting remaining funds from the Performing Arts Equitable Payroll Fund. The LAO said Cal Competes is generally effective but could be cut as a budget solution, while warning that the performing arts fund was close to awards and should be considered carefully. Members objected to pulling back committed funds for performing arts organizations and questioned why the state would withdraw support after applications had already been submitted.

Transcript Highlights:

• </c><00:08:35.800><c> or</c> apologize but I on those credits or apologize but I on those credits or
• </c> concerns about you know the audit concerns about you know the audit auditability<00:19:02.240><c
• </c> that's all it is the auditability that's all it is the auditability component<00:20:34.400><c> is
• </c> Harter to establish the Cub tax credit Harter to establish the Cub tax credit here<00:31:08.039>
• </c> uh businesses have these income credits uh businesses have these income credits or<00:50:30.160>

Bills: HF1277 , HF812 , HF457 , HF633

Committee: House Taxes

Transcript Highlights:

• Most are researchers, and we all complete performance audits for the legislature.
• In 2021, those federal tax credits were enhanced in two ways: people already receiving the tax credit
• top of those federal tax credits.
• So we're getting a lot more federal tax credit for those folks still eligible for the tax credit due
• have to overcome in order to claim those tax credits.

Summary: The committee heard a JLARC presentation on the Department of Health’s oversight of hospital inspections, complaints, and reporting. JLARC said DOH was late on 72% of acute care hospital inspections as of December 2024, had not verified that third-party accrediting standards were substantially equivalent to state standards, did not consistently require proof of those inspections, did not review adverse health event corrective plans, and could make hospital data more accessible. JLARC also raised a possible language-access barrier in the complaint system. Members asked about complaint filing by staff, the meaning of adverse health events, inspection outcomes, and whether the audit compared DOH to other agencies. JLARC said it had not reviewed inspection results or cross-agency comparisons, but noted inspectors were dedicated and working long hours. DOH later said it concurred with the recommendations and outlined a strategic plan with target dates for improving timeliness, verifying accreditation standards, expanding language access, reviewing adverse event laws, and improving public data access, with annual reporting to the Legislature expected. The committee then heard a Department of Health presentation on certificate of need modernization. DOH described the current certificate of need process, which reviews need, financial feasibility, quality, and cost containment for certain facility changes and new services, and said the program has not been modernized since the 1980s. DOH proposed 10 statutory modernization recommendations, including clarifying the program’s purpose, creating a planning entity, adding flexibility, reducing legal costs, updating access-to-care standards, expanding oversight to freestanding emergency departments and urgent care, addressing equity, improving cost control coordination, strengthening long-term funding, and using better data systems. Members asked about oversight of freestanding urgent care and EDs, funding sources, and whether the process could be streamlined or made more responsive to complaints or other triggers. A third panel discussed artificial intelligence in health care. Lucy O’Rourke of the Coalition for Health AI described CHAI’s work on responsible AI principles, technical standards, model cards or “nutrition labels,” testing and governance tools, and educational resources for providers. She said the group is focused on trust, transparency, fairness, safety, security, and privacy, and noted Washington’s AI-related policy work as among the more progressive in the country. No questions were asked. The final portion focused on the financial impact of federal and state health care policy changes. The Washington State Hospital Association said hospitals are facing low or negative operating margins, service reductions, layoffs, and closures, and that state cuts and taxes enacted in 2025, combined with federal HR1 changes, will significantly worsen finances. Providence Swedish leaders described staffing reductions, service cuts, delayed capital investments, and pressure from denials, tariffs, and reimbursement changes, while emphasizing that frontline staffing cuts are tied to service reductions rather than nurse-to-patient ratio changes. The Washington Health Benefit Exchange then began a presentation on expiring federal ACA premium tax credits, state Cascade Care Savings assistance, and eligibility changes affecting lawfully present non-citizens, with examples showing large premium increases for customers if federal subsidies expire.