Transcript Highlights:

• Contreras, I apologize, my glasses... the tax imposed on use fuel or diesel, used in the fuel... in our
• Contraris, that, I apologize, my glasses, the tax imposed on use fuel or diesel, used in the fuel, I
• The tax imposed on used fuel or diesel used in the propulsion of a motor vehicle transporting forest

Bills: SB1059 , SB1209 , SB1273 , SB1332 , SB1452 , SB1456 , SB1549 , SB1552 , SB1818 , SB1826 , SB1827

Committee: House Transportation & Infrastructure

Keywords: appropriation, Department of Transportation, right turn lane, traffic improvement, infrastructure funding, nonoperating identification, homeless exemption, veterans, emancipated minors, Arizona Department of Transportation, transportation, infrastructure, pavement rehabilitation, funding, Arizona, SB1332, light rail, light rail expansion, Maricopa County, Phoenix

Transcript Highlights:

• facility contract, tariff, or policy must include provisions permitting the facility to deploy backup diesel
• It eliminates the provision that prohibits diesel generation.
• It eliminates the provision that prohibits diesel generator use by permitted and unpermitted sources

Summary: The Ways and Means Committee met in executive session on March 2, 2026, and worked through two large groups of bills, hearing staff briefings, caucusing, and then voting each measure out to the Rules Committee. In the first group, the committee advanced bills on state accounts (HB 2675, with an amendment creating an adult day service facilities account), immigrant worker protections (2SHB 2105, after adopting a striker and Amendment 8 while rejecting amendments that would have changed enforcement and private rights of action), voting rights compliance (E3SHB 1710, with all proposed amendments rejected), AI content provenance and notices (E2SHB 1170, with Amendment 19 adopted to exempt state/local/tribal governments and certain video-game and technical uses), public official protections (2SHB 233, with a technical amendment adopted), WOTEC civil service coverage (HB 2249), JLARC work plan changes (HB 2120), LEOFF Plan 1 termination/restatement (E2SHB 2034, with several amendments adopted including creation of a pension surplus holding account and study directives, while proposals to redirect funds to the Climate Commitment Act or provide a lump-sum payment were rejected or withdrawn), supplemental retirement bargaining (HB 1069, with a striker adopted), port employee retirement exclusions (EHB 2179, with a striker adopted), local government revenue flexibility (ESHB 2442, with Amendment 72 adopted to remove a county public utility tax and other amendments rejected), wildfire mitigation funding (SHB 2089), and timberland REET changes (HB 1983). The committee also noted that it would not take action on some items in the packet, including SHB 1833. In the second group, the committee advanced bills on local housing tax remittance programs (ESHB 1717), renewable energy tax incentives and grants (E3SHB 1960, with a striking amendment adopted that adjusted rates, timing, and related provisions), nonprofit fundraising hall property tax relief (HB 2431), food bank sales tax relief (SB 6006), local tax increment financing (E2SHB 2451), temporary staffing services for nonprofit behavioral health entities (SB 6297), school and child care-related sales tax exemptions (SSB 6351, with a substitute adopted and the competing amendment made out of order), behavioral health work group extension and leadership council creation (2SHB 2429), Working Connections Child Care changes (SB 6353, with Amendment 43 adopted), language access guidelines for state agencies (SHB 2475), unpaid wage recovery (2SHB 2479), firearms background check fee authority (HB 2521, briefed but not acted on in the portion provided), public employee information sharing (HB 2091, briefed but not acted on in the portion provided), and Office of Independent Investigations jurisdiction changes (ESHB 2508, briefed but not acted on in the portion provided). Throughout the meeting, members and staff discussed fiscal notes, implementation costs, and whether amendments would increase or reduce state impacts, with several amendments aimed at narrowing scope, delaying implementation, or shifting enforcement and funding responsibilities.

Transcript Highlights:

• Gallup currently, if you've ever been on I-40 between Albuquerque and Gallup, you see the amount of diesel
• We have over 7,000 diesels a day coming through Gallup.
• We are trying to avoid that by keeping the diesels in one section in the workforce and then the residential

Committee: Joint Economic & Rural Development & Policy Committee

Transcript Highlights:

• The money laundering portion of card skimming at gas pumps shifted from gift cards to commercial diesel
• The demands of our guests by retailing legally permissible fuels such as gasoline, diesel, and ethanol
• But I want to be clear, we are happy to retail diesel and any other liquid fuels.

Bills: HB316 , HB353 , HB 1160 , HB1414 , HB1422 , HB1443 , HB1713 , HB1789 , HB1902 , HB2073 , HB2666 , HB2695 , HB316

Committee: House Criminal Jurisprudence

Transcript Highlights:

• not included. included in these exemptions, meaning they are required to pay taxes on gasoline and diesel
• fuels tax was implemented in 1991 and has been unchanged since 91, it's 20 cents a gallon on road diesel
• Our cities have created green space for semis, diesel, and tiltwall as part of our strategic investments

Bills: HB134 , HB135 , HB 1109 , HB 1243 , HB1392 , HB1399 , HJR99 , HB134 , HB135

Committee: House Ways & Means

Transcript Highlights:

• We're having difficulty changing over from diesel generation into electric because of the inability to
• What is the cost of our diesel fuel that we have to run in our tractors going to be?

Committee: Senate Senate Conservation

Transcript Highlights:

• So what I mean by choosing an approach is we're picking one of these or perhaps a blend of them, and
• So what I mean by choosing an approach is we're picking one of these or perhaps a blend of them, and

Committee: Senate Health and Welfare

Transcript Highlights:

• Showing up to a shift means being exposed to deadly, potent carcinogens, diesel fuels, PFAS, asbestos

Committee: Senate Labor, Public Employment and Retirement

Transcript Highlights:

• Alabama's industries lower their overall corporate emissions by using propane cylinders rather than diesel

Bills: HB407 , SB306 , SB320 , SB321

Committee: Senate County and Municipal Government

Keywords: local redevelopment, tax payments, transient occupancy, state revenue, authority powers, transparency, discretionary accounts, government accountability, public access, online publication, liquefied petroleum gas, safety regulations, public gathering places, cylinder storage, proximity regulations, drycleaning, environmental remediation, pollution, hazardous waste, trust fund

Transcript Highlights:

• I understand I kind of blend in.” concern, and we should be looking at concern, and we should be looking
• I understand I kind<00:24:12.600><c> of</c><00:24:12.640><c> blend</c><00:24:12.960><c> in.
• </c> kind of blend in. kind of blend in.

Summary: The committee took up House File 4906, adopted the H4906A1 amendment, and heard a staff explanation that the bill would create a one-time property tax refund in calendar year 2026 for residential homesteads and the house/garage/1-acre portion of agricultural homesteads. As amended, the bill would appropriate $4 billion in fiscal year 2027, distribute payments based on 2026 property tax due, include a clawback for delinquent taxpayers, and coordinate with existing property tax refund programs so recipients would not receive more than they paid in taxes. House Research also discussed a disagreement with the Department of Revenue over whether the refund would be taxable federally, with House Research suggesting it would likely be treated as a non-taxable recovery of prior taxes. Public testimony was largely opposed. Eric Bernstein of We Make Minnesota argued the proposal was too large, would create a deficit and force future service cuts, and would disproportionately benefit higher-income homeowners. Nan Madden of the Minnesota Budget Project said the bill would create a major budget hole, threaten funding for health care, food support, schools, and other services, and exclude renters and lower-income Minnesotans. Members echoed those concerns, citing impacts on public safety, rural EMS, hospitals, education funding, and equity, while noting that renters and many seniors would receive nothing. Representative Howard questioned whether the bill was a cautious use of state resources, and Representative Norris said it missed the mark for struggling renters. Chair Davids defended the concept as a way to put money back in people’s pockets and said the proposal was scalable and intended to start a discussion. Representative Wiener strongly supported the bill, saying many homeowners and farmers in his district are not wealthy and need relief from property taxes; he said the bill should be even bigger. No vote on final passage was taken in the portion of the meeting provided, and the committee moved on after testimony and member discussion.

Transcript Highlights:

• mass production of the automobile, pre-autonomous vehicles, obviously, there has always been this blend
• Obviously, there has always been this blend, as far as I know, of state agency regulatory control, especially
• asking: is there a fundamental reason, with autonomous vehicles, not to have that state-slash-local blend
• have this experience with motor vehicles in terms of the regulatory side of it, where we've had that blend

Committee: Senate Transportation

Summary: The Senate Transportation Committee held an informational hearing on autonomous vehicle technology in California, focusing on safety, regulation, first responder impacts, and the state’s evolving oversight framework. The chair said the committee would hear all panels before public comment, with witnesses limited to five minutes and public commenters to one minute. The first panel featured an industry representative, a safety academic, and victims/advocates who described sharply different views of AV safety and accountability. Ariel Wolf of the Autonomous Vehicle Industry Association argued that fully autonomous vehicles are distinct from driver-assist systems, said AVs are already reducing crashes and fatalities, and urged clear, uniform standards. Dr. Missy Cummings countered that remote operations and computer-vision failures show the technology still depends on human intervention and can be unsafe, especially when remote assistance is done from abroad. Robert O’Dowd and Dylan Angulo, both tied to Tesla crash cases, described fatal and serious injuries involving Autopilot/Full Self-Driving, criticized limited transparency and data access, and called for stronger disclosure, preservation of crash data, and mandatory fixes or disabling of defective software. Committee members questioned witnesses about data comparing AVs to human drivers, the role of remote operators, liability, and whether California should create clearer standards for the human element behind AV systems. Several members and witnesses discussed the need for “guardrails,” black-box-style data access, and accountability for the remaining crash risk. The hearing then shifted to first responders and road users: a San Francisco Fire Department representative described AVs blocking fire scenes, ambulances, and apparatus access during emergencies and urged a public safety manual override; a San Jose police representative said officers need clear enforcement authority, training, and reliable ways to stop or redirect AVs; a rideshare driver described near-collisions and congestion caused by robo-taxis; and a Teamsters representative opposed proposed heavy-duty AV truck rules as too reliant on manufacturer self-certification and lacking independent validation. In the final panel, DMV and CPUC officials defended California’s regulatory structure. DMV said it has regulated AVs since 2014, has issued multiple rulemakings and permit types, and is developing a fourth package that would add reporting, enforcement tools, emergency-response requirements, and rules for heavy-duty AVs. DMV said it has revoked or suspended permits when needed, including Cruise and Pony.ai actions. CPUC said its authority covers passenger service only, requires safety plans and ongoing reporting, and continues oversight after permits are issued. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• just started this year and is in progress, and that is for sustainable aviation fuel, the pathways, blending
• Just started this year and is in progress, and that is for sustainable aviation fuel, the pathways, blending
• And we started developing one for sustainable aviation fuel, including production pathways, blending,
• Sustainable aviation fuel, including production pathways, blending, and distribution.

Summary: The committee held a work session on state environmental policy act (SEPA) implementation and carryout bags. Ecology staff Diane Buterak described the Clean Energy Programmatic Environmental Impact Statements (PEISs) completed for utility-scale solar, onshore wind, and green hydrogen, plus a new PEIS underway for sustainable aviation fuel. She explained that PEISs provide broad planning-level analysis to help developers and agencies avoid or mitigate impacts, but do not replace project-level review. Members asked about permitting timelines, greenhouse gas emissions from different hydrogen production methods, water use, agricultural land conversion, battery fire risk, and tribal consultation. Buterak said the PEISs identify potentially significant impacts and mitigation measures, including fire response planning, early tribal outreach, and agrovoltaics as an option for solar projects. EFSEC’s Amy Hofkimer then presented the transmission-facility programmatic EIS required by SB 5165 for 230 kV and higher transmission projects. She said the statewide review covers new lines and certain upgrades/modifications, analyzes impacts to water, cultural and tribal resources, habitat, and other areas, and uses general measures, design considerations, avoidance criteria, and sensitivity maps to guide siting and corridor planning. She said the final document would be issued in early October. Questions focused on reconductoring, tribal lands, scenic areas, and whether the review could affect existing lines crossing tribal lands. A Grant County planning director, Jim Anderson Cook, said Ecology’s PEIS would help with cumulative impacts for clustered solar projects, but noted tight local review timelines and the need for strong pre-application coordination, especially on cultural resource studies and decommissioning plans. Yakama Nation attorney Shona Leverett argued SEPA is only an assessment tool and said tribes face barriers from short comment periods, limited confidential tribal input, weak cumulative impact analysis, and challenges in the FSEC process; she urged better upfront developer diligence and more effective tribal coordination. Puget Sound Energy’s Sarah Leverett said the utility needs efficient and predictable permitting to meet clean energy mandates while maintaining reliable service and aging infrastructure. She described the scale of needed clean energy and transmission buildout, including a 10-year process for the Energize Eastside transmission rebuild, and said more consistent SEPA and PEIS processes could help. Members asked about future generation sources, reliability, and hydropower as a firming resource; she said PSE is pursuing an “all of the above” approach and would welcome more firm, dispatchable clean energy options. The committee then shifted to carryout bags. Staff Jacob Lipson and Tracy Taylor reviewed Washington’s bag law, its preemption of local ordinances, the current 8-cent charge, the scheduled increase to 12 cents, and the 2025 change delaying the 4-mil thickness requirement until 2028 while adding a temporary 4-cent penalty for thicker bags. Ecology’s Peter Lyon said the agency emphasizes education and complaint-based enforcement, has received 872 reports, and has not yet imposed any fines. Commerce’s Kirk Esmond summarized a WSU study finding fewer plastic bags distributed but more plastic by weight, and said Commerce and Ecology support keeping the 2.25-mil standard and not allowing thinner single-use bags again. Retail industry testimony from Brandon Housekeeper said grocers comply with the law but oppose the added 4-cent penalty and thicker-bag requirement, citing higher costs and confusion in the policy changes.

Transcript Highlights:

• ways you influence my decisions because there are some areas you work at more than I do, so we try to blend
• you work at more than I do so we tried you work at more than I do so we tried to<00:44:10.920><c> blend
• 44:11.839><c> to</c><00:44:12.079><c> to</c><00:44:12.440><c> help</c><00:44:12.680><c> each</c> to blend
• a little bit to to help each to blend a little bit to to help each other<00:44:14.040><c> and</c><00

Summary: The House Finance Committee met for final approval of HB 1 and HB 2, with legislative budget staff Michael Kain reviewing the final amendment documents and surplus statements. Kain explained that HB 1474H and HB 1484H incorporated the committee’s prior votes and the Governor’s recommended sections, and he walked through the budget math for the general fund, education trust fund, Highway Fund, and Fish and Game Fund. He said the committee’s proposal remained balanced overall, though the current-year general fund showed a projected deficit that HB 2 would address by allowing a possible rainy day fund transfer if needed. He also noted that the committee’s revenue estimates were below the Governor’s, requiring reductions and adjustments to appropriations and lapse assumptions. Members discussed the rainy day fund provisions, including a section in HB 2 that suspends existing restrictions so a transfer can be made if the deficit materializes. Kain said the committee’s approach differed from the Governor’s because the state was not below the overall revenue plan, and the fiscal committee would retain a role in determining any transfer. He also summarized that the Highway Fund would end with about a $13 million balance and Fish and Game with about $3 million, both without additional general fund support. The committee then adopted two amendments to HB 2 unanimously: Amendment 1473H, a technical cleanup to the Group 2 retirement seven-year rule, and Amendment 1482H, a technical correction to the recreational services language. Amendment 1484H, which incorporated those changes into HB 2, was adopted on a 14-1 vote after minority members objected to the bill’s broader cuts and policy changes, including reductions to state agencies, health and human services, and education-related provisions. The committee also adopted Amendment 1474H to HB 1A on a 14-1 vote after similar debate over budget reductions, vacancies, university funding, and school spending limits. Finally, the committee voted 14-1 to report HB 1A and HB 2 as amended as ought to pass, with the minority voting no and the committee planning a full House presentation the following week.

Transcript Highlights:

• This is something that I think perhaps makes America unique: this blending of civilian service and military
• This is something that I think perhaps makes America unique: this blending of civilian service and military

Committee: Senate State Affairs

Transcript Highlights:

• Their innovative hybrid curriculum blends in-person instruction with flexibility.
• The hybrid curriculum blends the structure of in-person instruction with the flexibility of at-home learning

Summary: The Assembly convened after a quorum call, heard a prayer honoring Pope Francis, and then proceeded through routine motions, guest introductions, and floor business. Members welcomed several groups, including youth art contest winners, local city officials for Cal Cities Week, emergency dispatchers and 9-1-1 youth heroes, a school group from Northridge Community School, and Sheriff Michael Johnson. The body also handled procedural actions such as re-referring bills, withdrawing AB 16 from Appropriations because it was no longer fiscal, and allowing committees to notice bills pending re-referral. On the floor, Assembly Concurrent Resolution 44, proclaiming April 20–26 as California Cities Week, was adopted by voice vote after opening the roll for co-authors. The Assembly then passed several bills, including AB 793 on dog dangerousness proceedings and AB 533 reauthorizing health care districts’ use of design-build for health facility construction, both by unanimous roll call. AB 764, which would add mute swans to the list of exotic non-game birds that can be legally managed, also passed unanimously. House Resolution 32, recognizing Cambodian Genocide Memorial Week, drew extensive remarks from multiple members about the historical tragedy and the Cambodian American community; it was adopted by voice vote after 70 co-authors were added, followed by a moment of silence. The consent calendar was then taken up and adopted 69-0, including AB 369 and a series of other bills and resolutions. The session concluded with an adjournment in memory of Officer Paul Philip Jordan, a longtime LAPD officer who served the Hollywood community, and the House adjourned until Monday, April 28 at 1 p.m.

Transcript Highlights:

• However, the fire code requires a blend-specific UL listing for above-ground dispensing equipment. the
• <00:31:33.600><c> UL</c><00:31:33.960><c> listing</c><00:31:34.520><c> for</c> blend-specific UL listing
• for blend-specific UL listing for above-ground<00:31:35.400><c> dispensing</c><00:31:36.080><c> equipment
• the fire code, the components of a fuel dispensing system must carry a UL listing specific to the blend
• This brings Minnesota in line with listing specific to the blend being listing specific to the blend

Bills: HF3547 , HF3651 , HF4043 , HF4282 , HF4095

Committee: House Public Safety Finance and Policy

Transcript Highlights:

• in GGRF or related funding for the cleanest combustion trucks to displace medium- and heavy-duty diesel
• throughout California with the cleanest combustion trucks, which meet 50 milligrams or cleaner than diesel
• in GGRF or related funding for the cleanest combustion trucks to displace medium- and heavy-duty diesel
• throughout California with the cleanest combustion trucks, which meet 50 milligrams or cleaner than diesel

Summary: The hearing focused on the governor’s May Revision proposals for transportation, natural resources, climate, and related programs, with the Department of Finance and the LAO presenting competing views on the state’s fiscal condition. Finance said the budget remains balanced over two years, with major climate-bond, water, parks, transportation, DMV, and agriculture proposals, while the LAO argued the state still has a structural deficit and should reject or defer many new discretionary spending items, preserve reserves, and be cautious about ongoing commitments. The LAO specifically questioned the timing and scale of new spending for programs such as Clean California, Healthy Rivers and Landscapes, and the Golden Gate Fields acquisition, and urged more clarity on future obligations and revenue scenarios, including for the Greenhouse Gas Reduction Fund. A major portion of the hearing was devoted to the Healthy Rivers and Landscapes proposal for Bay-Delta water quality implementation. Secretary Wade Crowfoot and Finance described it as an enforceable, science-based alternative to a more traditional regulatory approach, with the state’s $25 million request intended to support early implementation, monitoring, habitat restoration, and environmental flows. The LAO countered that the Water Board has not yet adopted the updated Bay-Delta plan, that the proposal may be premature, and that the Legislature should wait for more information on the state’s total funding commitment and the program’s long-term costs. Several members expressed support for the program as a way to reduce conflict and protect water reliability, while others echoed concerns about timing and fiscal exposure. The committee also examined the proposed $125 million Proposition 4 contribution toward acquiring the Golden Gate Fields property for a shoreline park and habitat project. State officials said the acquisition is a time-sensitive, once-in-a-generation opportunity, with an appraised value of $175 million and additional philanthropic and local funding expected to close the gap. Members questioned whether the project had gone through the usual competitive process, whether the site is the best use of scarce park bond dollars, and how public access, habitat, and disadvantaged-community priorities would be protected. The discussion ended without a vote, and the committee moved on to transportation items including Clean California litter abatement, the Games Route Network, homeless encampment coordinators, and DMV modernization and field office proposals, with LAO recommending rejection or delay on several of those requests as well.

Transcript Highlights:

• So, 30 years ago, going through school, each high school had its own auto body, diesel tech, um, a lot
• <00:58:16.520><c> body,</c> high school had its own auto body, high school had its own auto body, diesel
• :19.440><c> a</c><00:58:19.480><c> lot</c><00:58:19.680><c> of</c><00:58:19.760><c> different</c> diesel
• tech, um a lot of different diesel tech, um a lot of different things,<00:58:20.440><c> woodshop.

Summary: The Select Committee on School Facilities met to satisfy its quarterly statutory requirement and to discuss interim priorities. Staff from LSO reviewed the committee’s duties: monitoring K-12 school facilities statewide, prioritizing needs for the interim, and preparing a budget request due by November 1. They also noted the ongoing litigation related to the Chapter 3, Section 8 exception process and said the committee would move forward with securing a consultant to study that issue, as previously authorized by Management Council. A major topic was school funding formulas, especially how average daily membership (ADM) affects routine and major maintenance funding and how excess square footage is treated. Members revisited an earlier proposal to fund 135% of allowable square footage, which did not advance this session, and discussed whether some schools should instead be funded at a minimum percentage of their actual square footage. Staff explained that some districts have buildings larger than their formula allowance, and that the issue is complicated by older buildings, pools, and other unique facilities. They also noted that recent changes to the major maintenance multiplier increased funding and that some districts are still not fully covered by the formulas. Safety and security funding was another focus. The State Construction Department reported that $10 million was appropriated this year for safety and security upgrades, with some funds expected to go toward vestibules, bollards, and design work, and the rest through a district application process. Officials said the last comprehensive safety assessment was done more than 10 years ago and suggested a new consultant-led study to update priorities, since technology and building conditions have changed. Members also discussed the role of school resource officers and whether the committee should continue leading this work rather than handing it off to the recalibration committee. The committee also examined declining enrollment and excess capacity across the state, citing examples such as Newcastle, Shoshoni, Casper, Campbell County, and Fremont County. Officials said some districts are right-sizing by taking schools offline, while others cannot easily reduce capacity because the buildings are essential to the community. Charter school leasing was raised as a related concern, including the Mills charter school and the fact that the state pays lease costs based on ADM and allowable square footage. No formal votes were taken, but the committee agreed to continue studying these issues, likely including site visits and further data requests during the interim.

Transcript Highlights:

• We ended up purchasing 13,000 gallons of diesel fuel to run during that roughly 12-week period of time
• 47:17.920><c> of</c> 13,000 or purchasing 13,000 gallons of 13,000 or purchasing 13,000 gallons of diesel
• :19.680><c> run</c><00:47:20.319><c> uh</c><00:47:20.480><c> during</c><00:47:20.880><c> that</c> diesel
• fuel uh to run uh during that diesel fuel uh to run uh during that roughly<00:47:21.760><c> 12week</

Summary: The Budget Subcommittee on Economic Development, Public Protection, Energy and Environment, and Tourism met for its fourth meeting and approved the February 10 minutes. The committee then heard a presentation from the Cabinet for Economic Development, led by Secretary Jeff Noel, with staff from the cabinet and Kentucky Innovation. The presentation focused on the cabinet’s strategy, including workforce, entrepreneurship, innovation, infrastructure, and placemaking, and emphasized a goal of supporting higher-wage jobs while tailoring programs to urban, non-urban, and rural “heritage communities.” The cabinet reviewed several funding tools and programs, including economic development bond funds, EDF funds, KBI, the Kentucky Innovation Pool, KSTC-related startup and commercialization programs, veteran workforce programs, and Bluegrass State Skills Corporation training funds. Officials said many projects take years to close and that funds are often committed before they are actually disbursed because reimbursements occur after project completion. They also said Kentucky is less competitive than before because of changes in tax policy and that EDF funds are increasingly important to remain competitive with other states. Members asked about whether previously allocated money remained available, whether some funds could be clawed back, and the status of the Blue Oval project. The cabinet said it is oversubscribed, with some committed dollars likely to go unused and be reoffered to other projects. On Blue Oval, officials said progress had been made and described negotiations tied to repayment and job creation requirements. They also discussed the Ford/SK loan structure, saying the companies may assume the full $250 million obligation and that repayments would be required if job targets are not met. The presentation closed with discussion of workforce coordination and the need to connect economic development projects with training and support systems, including possible ripple effects for rural suppliers and related businesses.

Transcript Highlights:

• If not, the standard requires a blended discount rate.
• If not, the standard requires a blended discount rate that incorporates the municipal bond rate.
• When the plan is not projected to remain fully funded, a blended rate must be applied, combining the
• In this example, the resulting blended rate would be 5.1%.
• The difference of In this example, the resulting blended rate would be 5.1%.

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The Legislative Audit and Fiscal Review Committee met to receive a series of audit presentations, beginning with approval of the prior meeting minutes and a review of the state’s annual comprehensive financial report (ACFR) for fiscal year 2025. The State Auditor’s Office and the Office of Management and Budget reported a clean opinion on the state’s financial statements and described continued growth in net position, strong general fund balance, and significant Legacy Fund investment income. Committee members asked about how the report reflects long-term finances and how North Dakota compares with other states, and OMB noted that the ACFR is based on audited actual results rather than budget forecasts. The committee then heard the North Dakota University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund construction money, insufficient monitoring of service organizations, improper bank reconciliations at several campuses, and investment/cash recording issues at Bismarck State College. University System officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations and greater use of shared services. Members also questioned practices such as campus use of certificates of deposit and whether repeated findings were being adequately addressed. Additional audits were presented for the State Fair Association, State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Securities Department, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Most received clean opinions with no findings; exceptions included a repeat component-unit issue at the State Fair Foundation, a securities personnel-evaluation finding, and a Housing Finance Agency finding involving a late return of escrow surplus. The committee also discussed broader oversight issues, including the need for independent auditing of the Ethics Commission, possible legislative changes to give the State Auditor more subpoena power and independent legal counsel, and future work on data analytics, cybersecurity reviews, and audit capacity. The meeting recessed for lunch after these discussions.