Transcript Highlights:

• Well, basically for many years I've been on a Legislative Audit Commission, where we see during the audits
• Um, there needs to be legislative authority to issue the grant.
• So, thank you very much. needs to be a legislative man or needs to be a legislative man or legislative
• <00:07:37.600> to revise the language with the auditor to revise the language with the auditor
• the they're connecting with the auditor the they're connecting with the auditor because because

Keywords: 1183, house

Summary: The committee heard House File 3672, authored by Representative Quam, and the bill was laid over. Quam said the measure is based on findings from past Legislative Audit Commission audits and is intended to clarify state requirements, strengthen agency compliance, and address gaps such as conflicts of interest in grant administration. He said he wants the auditor to work directly with the revisor and agencies so the rules are clearer and less likely to be misunderstood. Betsy Hayes, Assistant Commissioner with the Department of Administration, testified that sections 5 through 11 of the bill would strengthen grants management authorities, reporting, monitoring, training, and conflict-of-interest limits, and said those changes are generally supported and in some cases already reflected in policy. She raised concern about section 3, saying it could sweep too broadly by applying chapter 16B grants-management requirements to all state payments to non-state entities, including procurement payments, which could create fiscal impact and regulatory overlap. She said the department is working with the author, the Office of the Legislative Auditor, and Auditor Randall to refine the language. Chair Clayburn asked for clarification on the difference between grants and procurement contracts and on the relationship between chapters 16B and 16C. Hayes explained that grants are typically reimbursement-based payments to third parties under chapter 16B, while procurement contracts are inward-facing state purchases under chapter 16C. She said section 3 could unintentionally capture procurement and apply grants rules to it. Clayburn said the bill’s intent is good and welcomed continued work on the language before the bill moves forward.

Transcript Highlights:

• As legislators, we are elected to craft laws that serve the people, As legislators, we are elected to
• delays clouded our legislative accomplishments.
• under the State Auditor...
• Speaker, back in November, we changed the rules to allow the auditor to pick the auditor for what would
• And put it back into professionalism by allowing the auditor to select an independent auditor to audit

Keywords: 995, all

Summary: The House first took up House Bill 58, a fiscal year 2025 supplemental appropriations bill. The chamber adopted a further amendment offered by Rep. Michael Witts of Boston, then concurred with the Senate as amended after a roll call vote of 128-23. The House then moved to the orders of the day and considered the proposed permanent joint rules for the 2025-2026 session (House No. 2026 / Senate No. 18), with Rep. Moran of Brighton presenting the package as a set of transparency and process reforms, including joint committee procedures, a 60-day reporting deadline, public posting of summaries and testimony, and revised formal session timing. A series of minority amendments offered largely by Rep. Jones of North Reading and others were debated and repeatedly rejected, including proposals to require roll call votes for post-July 31 formal business, require two weeks’ notice for such sessions, publish State Auditor audits on the legislative website, require SJC advisory opinions on constitutional disputes, extend poll windows to two hours, require advance notice of electronic polls, and lengthen amendment filing deadlines. Supporters argued these changes would improve transparency, accountability, and member access; opponents said they would slow the legislative process and reduce flexibility. Most of these amendments failed on roll call votes by margins of 128-23 or similar, while a technical amendment from Rep. Galvin was adopted. The House then adopted the joint rules package by roll call, 128-23. The chamber also adopted the House rules package for the 2025-2026 session (House No. 2024) after debate led by Rep. Galvin of Canton, who emphasized modernization, online transparency, in-person participation, and an outside audit and EEO officer. Additional minority amendments on committee reporting, timing of formal business, and poll procedures were debated and defeated, while one technical amendment was adopted. The House later returned to the issue of legislative audits, rejecting an amendment to require House audits by the State Auditor after a lengthy debate over Question 1, separation of powers, and the scope of the auditor’s authority. The session ended with a memorial tribute to former Rep. Carol Doherty and an order to adjourn until the next day at 11 a.m.

Transcript Highlights:

• We thank our auditors, Lisa Park, and Lee To express our sincere appreciation, we thank our auditors,
• And actually, I do believe that the Auditor General, or I should say the auditors, found when they reviewed
• So it sounds like you're thinking maybe prepare legislation for the next legislative session.
• , hopefully this legislative session.
• I also want to thank the Arizona Auditor General, Lindsey Perry, and her staff at the Office of the Auditor

Keywords: 1182, all

Summary: The committee first heard the Arizona Auditor General’s sunset review of the Arizona Barbering and Cosmetology Board. The audit found some strengths, including timely licensing and complaint resolution in the sample reviewed and rules that matched statutory curriculum requirements, but it also identified a major finding that the board had imposed inconsistent discipline for similar violations and lacked documentation for deviations from its disciplinary guidelines. Other issues included missing reciprocity education requirements, weak application quality control, incomplete school and establishment oversight, and compliance concerns involving open meeting law, public records, and conflicts of interest. The report made 25 recommendations total, including two tied to the disciplinary finding and three suggested statutory changes on esthetics scope of practice, cease-and-desist authority, and eyelash technician training. The board’s executive director said the board agreed with the findings, had already implemented several recommendations, updated disciplinary policies and conflict-of-interest procedures, and was working on legislation and rule changes. After questions about enforcement consistency, licensing verification, cash handling, complaint volume, and conflict disclosures, the committee voted 7-0 to recommend the board be continued for six years, until July 1, 2032. The committee then took up the Arizona Department of Gaming, the Arizona Racing Commission, and the Arizona Boxing and Mixed Martial Arts Commission together. The Auditor General reported that the department correctly distributed more than $158 million in tribal contributions in fiscal year 2024 and issued event wagering licenses to reviewed applicants, but found several problems: the department did not consistently obtain and review independent audit reports for event wagering and fantasy sports operators, did not fully comply with conflict-of-interest disclosure requirements, and lacked comprehensive complaint-handling processes. The review also found delays in distributing Compact Trust Fund payments to some tribes, gaps in IT security and horse-racing license checks, and incomplete fee-setting and public-records practices. The report made 36 recommendations to the department, six to the Racing Commission, and 13 to the Boxing and MMA Commission, and all three entities said they agreed and would implement them. In response, the Department of Gaming director said the agency was already making changes, including a historical look-back on operator audits, updated guidance to operators, a new constituent services unit and complaint-tracking process, and improved conflict-of-interest training and forms. She also explained the Compact Trust Fund dispute, saying the department administers the fund but the beneficiary tribes must agree on the revenue baseline formula, which has been complicated by COVID-era closures; no Category Three distributions had yet been made. Committee members asked about possible revenue losses, penalties, and the status of 2024-2025 audits, as well as prediction markets and whether they are legal under Arizona’s event wagering framework. The director said the department had issued cease-and-desist letters to unlicensed prediction-market operators, would review licensed operators for suitability if needed, and would continue to enforce Arizona law. The transcript ends while questioning on prediction markets is still underway, before any vote on the gaming-related reviews is shown.

Transcript Highlights:

• I'm going to invite our state auditor, Mr.
• Thank you to our auditor.
• time ever the state's directing the auditor to go audit, ...expedition that the auditor come in.
• necessarily you as auditor, but your office in the history of the state auditor audited a county board
• necessarily you as auditor, but your office in the history of the state auditor audited a county board

Summary: The committee met as a subcommittee for much of the hearing because it initially lacked a quorum, then later established one and began taking votes. The state auditor gave a status update on ongoing audits, including several JALAC-requested audits in progress, other statutory audits, staffing growth in his office, and the number of new JALAC audits his office could start in the coming months. The committee also heard that one audit request on Prop. 28 was held, and another PUC-related request was moved off consent and heard on the regular calendar. Members then heard and discussed several audit requests. Senator Cervantes presented a request to audit California fusion centers, with witnesses from the FBI and ACLU supporting the need for transparency and oversight; opponents argued the request was politically motivated and could interfere with counterterrorism work. Senator Allen presented a request on CPUC enforcement of Rule 21 interconnection timelines for solar and storage projects, supported by industry and school representatives who described long delays and financial harm, while CPUC staff said the issue was being addressed through workshops and a formal proceeding. Senator Perez presented a request to audit Caltrans’ administration of the former SR 710 extension properties and affordable sales program, citing tenant complaints about maintenance, pricing, and transparency; Caltrans said it was working to complete sales and improve administration. Senator Umberg presented a request to audit the Orange County Board of Education over transparency, contracting, litigation spending, charter oversight, and whistleblower issues, while board representatives said there was no factual basis for an audit and that existing legal remedies had not been invoked. After quorum was established, the committee approved the consent-calendar DMV license revocation audit and then approved the PUC utility timeliness audit and the Caltrans SR 710 audit. The fusion center audit was left on call after a split vote, and the Orange County Board of Education audit continued with testimony from the board’s representatives after the committee had already moved on to other business.

Transcript Highlights:

• Yeah, that the Legislative Management chairman would, again, we would encourage the State Auditor to
• Yeah, that the Legislative Management chairman would, again, we would encourage the State Auditor to
• So basically, we need as legislators to have certain legislation, So basically, we need as legislators
• Go ahead, auditor. Mr.
• Go ahead, auditor. Mr.

Summary: The committee was called to order, the Pledge of Allegiance and prayer were offered, and the minutes from the previous meeting were approved. Members then received a memo summarizing major audit items and began hearing audit presentations from the State Auditor’s Office and private auditors on a range of state agencies and organizations. Several audits were reported as clean, including the Bank of North Dakota, the North Dakota Guaranteed Student Loan Program, the Office of the Governor, the Office of the State Treasurer, the Office of Management and Budget, the Department of Transportation’s flexible transportation fund, Lake Region State College, and the Department of Environmental Quality. The North Dakota Stockmen’s Association also received an unmodified opinion, though repeat findings were noted for limited segregation of duties and financial statement preparation due to its small staff. The Council on the Arts audit found two findings: payroll charged to federal awards without adequate timekeeping records, and unallowable expenditures from a restricted cultural endowment fund. The Department of Public Instruction audit identified unsupported scholarship applications in the paraprofessional-to-teacher program, though additional testing showed the funds were used for their intended purpose. The most extensive discussion centered on the North Dakota Racing Commission audit, which identified four findings: overspending the promotion fund’s 25% operating limit, grant conditions not being met, improper Breeders Fund awards, and improper procurement for advertising services. Racing Commission director Bruce Johnson acknowledged complacency and weak controls, said the agency would tighten procedures, and explained that the commission had since worked with procurement and would follow the rules more closely. Auditors also explained that the commission would now be audited every two years because of the findings. Another major discussion involved the University of North Dakota School of Law, where auditors found a lack of documentation supporting admissions decisions for post-baccalaureate programs. UND officials said they remain in good standing with the American Bar Association but agreed better documentation and tools are needed; the committee pressed for more transparency and follow-up on admissions criteria. The committee also received an update on Dakota College at Bottineau, where Minot State University reported that bank reconciliations had been brought current after a significant backlog and would now be maintained through shared services. Members requested a written follow-up report on the issues and corrective actions. Finally, the North Dakota Fair Association explained that its foundation has been dissolved and remaining funds were transferred to another nonprofit for continued support of the state fair, and the Department of Public Instruction provided an update on school meal debt, saying the reported amount was about $1.1 million from a partial district survey and that debt remains a local issue, though it could be revisited if school meal funding changes.

Transcript Highlights:

• Yeah, that the Legislative Management chairman would, again, we would encourage the State Auditor to
• They were auditor galleons here. Would you speak to that, Auditor? Yeah. I thought it was...
• Thanks, Auditor.
• The legislative assembly does not... ...your first under legislative assembly.
• Go ahead, auditor. Mr.

Keywords: 908, all

Transcript Highlights:

• Auditor Gallian could...
• Yeah, the Legislative Management chairman would, again, we would encourage the State Auditor to conduct
• Broken into three overarching sections, one for the Legislative Assembly, one for the State Auditor,
• Megan Gordon, Legislative Council: He or she works with the auditor, and they're not going to go and
• Go ahead, auditor. Mr.

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• The legislative auditor made three recommendations related to hospital inspections.
• As a reminder, we follow up on legislative auditor recommendations for four years.
• Therefore, the legislative auditor concludes that focusing the metric on...
• The legislative auditor has two recommendations.
• This leads us to legislative auditors two recommendations.

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

• Will the Auditor General please come to the podium.
• So this particular Auditor General report had two very clear legislative recommendations.
• Representative Willoughby has been working with the Auditor General and legislative recommendations.
• Can you describe any legislative fixes concerning other issues with the Auditor General report?
• I'm with the Arizona Auditor General.

Keywords: 1182, all

Summary: The committee conducted sunset reviews for the Arizona State Board of Pharmacy, the State Board of Nursing, the Arizona Board of Occupational Therapy Examiners, and the Arizona Regulatory Board of Physician Assistants. The Auditor General’s reports praised each board for timely licensing in some areas but identified recurring problems with complaint investigations, public safety oversight, fee analysis, records/documentation, and internal controls. For Pharmacy, the main concerns were weak enforcement of controlled substances prescription monitoring program (CSPMP) requirements and slow complaint resolution; the board said it had implemented some recommendations, was pursuing a new database vendor, and supported legislation to strengthen CSPMP enforcement. For Nursing, the audit found a large and growing backlog of complaints and repeated delays in resolving cases; the executive director said the board was under-resourced and requested 28 additional investigative positions, while nursing stakeholders supported process reforms and cited a bill to improve timelines and fairness. For Occupational Therapy, the audit focused on missing or poorly documented fingerprint clearance card checks, delayed action on a serious criminal-charge disclosure, and other compliance issues; the board said it had accepted and was implementing all recommendations, including new procedures and rulemaking. For Physician Assistants, the audit found weak oversight by the executive director, extensive delays in complaint handling, and an incentive-pay system that did not align with key performance goals; the board said it had already made structural changes, was improving tracking and IT systems, and planned to continue implementing recommendations. After discussion and testimony from board officials, public members, and nursing stakeholders, the committee voted to continue the Arizona State Board of Pharmacy for six years until July 1, 2032, the State Board of Nursing for four years until July 1, 2031, the Arizona Board of Occupational Therapy Examiners for four years until July 1, 2030, and the Arizona Regulatory Board of Physician Assistants for a continued term with statutory changes (the transcript includes the board review and related discussion, but the final motion text for the physician assistants board is not fully captured in the excerpt). The votes on the first three continuations were approved by roll call, with members generally supporting continuation while expressing concern about complaint backlogs and the need for reforms.

Transcript Highlights:

• That is correct, Auditor Gallion.
• Auditor Gallion, do you need legislative authority if you wanted to contract out this audit? Mr.
• Thanks, Auditor Gallion. Questions or comments for the auditor? Anyone? No, we're good.
• So does the committee want to try to get some legislation that Legislative Council would have staff to
• Auditor. Mr.

Keywords: 908, all

Transcript Highlights:

• The Auditor General did their work.
• So I think the Auditor General...
• Yes, Chairman, I have spoken with the legislative auditor from the state of Minnesota.
• tell the Auditor General they want the Auditor General to look at, which is more narrowly tailored.
• Excuse me, Auditor General Perry.

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.

Transcript Highlights:

• Auditor Randall said, “For the record, Judy Randall, legislative auditor.
• Um, I would of the legislative auditor.
• <00:41:37.839> auditor so how does the legislative auditor so how does the legislative auditor
• I have a couple of questions for the legislative auditor.
• <00:49:11.520> Auditor<00:49:12.400> Mson Deputy Legislative Auditor Mson Deputy Legislative

Keywords: 919, house, all

Summary: The Legislative Audit Commission Evaluation Subcommittee met on October 6, 2025, to choose additional program evaluation topics for the Office of the Legislative Auditor. Deputy Legislative Auditor Jody Mson Rodriguez explained that the commission had previously selected seven topics from an initial list of 11, with background papers already prepared on five of those items, and that the subcommittee was now being asked to select five more topics for background papers before narrowing the full set to four recommendations later in the fall or early spring. Members discussed several possible topics, especially emergency medical services, non-emergency medical transportation, MinnesotaCare eligibility, child care assistance, medical assistance fraud prevention, and U.S. Bank Stadium. David Kersner of OLA said emergency medical services and non-emergency medical transportation are distinct programs, and noted the EMS topic was evaluated in 2022 while non-emergency medical transportation had not been reviewed since 2011. Auditor Judy Randall said MinnesotaCare eligibility, child care assistance, and medical assistance fraud prevention are better suited to OLA’s financial audit division or special review unit rather than program evaluation, and that financial audits and special reviews do not require Legislative Audit Commission nomination. On process, Mson Rodriguez said the subcommittee had already met its minimum required selections under the commission’s policy and was free to choose additional topics. The discussion also covered whether to broaden the stadium topic beyond U.S. Bank Stadium; staff said the U.S. Bank financing structure alone would be a major undertaking, but they could help craft a future topic focused on maintenance across multiple facilities. No final vote or motion was taken in the portion of the meeting provided, and the chair indicated the committee would continue nominations and discussion.

Transcript Highlights:

• I should also point legislative auditor.
• out that the office of legislative out that the office of legislative auditor<00:09:34.080> already
• there legislative auditor website and there legislative auditor website and there you<00:09:43.120
• It houses it within the office, sort of parallel to the Office of Legislative Auditor, and I think that
• auditor and I the office of legislative auditor and I think<00:14:31.480> that<00:14:32.480><

Keywords: 919, house, all

Summary: House Fraud Prevention and State Agency Oversight Committee Chair Kristen Robbins opened by criticizing the governor’s fraud package as too focused on new spending and staffing, and not enough on culture change, accountability, eligibility rules, and an enterprise-wide IT/data strategy. She said the committee had heard a good overview from multiple commissioners, but she remained concerned that piecemeal technology investments and added staff would not address the root causes of fraud. Robbins also said she would introduce a bill based on issues raised in committee, including requiring grants management staff to complete Office of Grants Management training and certification. A major action announced was the launch of a new whistleblower portal at mnfraud.com, which legislators said will let people submit basic fraud allegations, after which staff will follow up and forward matters to the Office of the Legislative Auditor, BCA, law enforcement, or the attorney general as appropriate. Members noted that the Office of the Legislative Auditor already has a separate reporting portal, and there was a question about why the new site does not allow anonymous reporting; Robbins said contact information is needed so staff can follow up. She also said the portal is intended to centralize and triage reports from agency workers, service recipients, and providers. Republican members said the governor’s proposal still misses key pieces. Vice Chair Anderson argued the package mostly adds staff to agencies that failed to catch or act on fraud, and said Minnesota needs a statewide independent inspector general with authority outside agencies and a stronger whistleblower system. Representative Marion Rarick said the proposed criminal penalty increases are too small compared with federal penalties and criticized the package for adding only one forensic auditor at the BCA while DHS receives many more positions. She also argued that agency managers should face sanctions when fraud occurs under their watch and said the state needs a culture where employees can be rewarded for good work but also held accountable for failures. Members discussed several other ideas, including creating new crimes for kickbacks and theft of public funds, requiring fraud fiscal notes, improving data sharing and eligibility verification, and using better IT so systems can talk to each other. There was also discussion of whether government services should rely less on nonprofits and private contractors; one member said fraud often follows a particular business model rather than the sector itself, while another suggested capping salaries of top nonprofit executives receiving government funds. The committee also noted that the governor’s fraud package is being presented as a package but will likely move as separate provisions through different omnibus bills.

Transcript Highlights:

• auditor and the state auditor.
• They have been transferred to the legislative auditor.
• But that was sent out by the legislative auditor.
• You're referring to, but that was sent out by the legislative auditor.
• And I know this is a legislative auditor question since you placed that, but the third account, the all

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum, approved the minutes from the prior meeting, and heard budget presentations from the Secretary of State, the Attorney General, and the State Auditor. The Secretary of State’s office described its FY27 budget, emphasizing efficiency gains from technology, election security work, and business services. It said it is operating with fewer staff than a decade ago, but rising costs and outdated statutory fees are creating deficits in service of process and other operations. The office asked the committee to consider either increasing fees or allowing it to retain a larger share of business-service revenue, and it also proposed creating an Office of Entrepreneurship to help small businesses navigate state government, grants, permits, and related services. Committee members questioned the Secretary of State’s office about fee increases, the current 50-50 split of certain revenues with general revenue, and whether the proposed entrepreneurship office would duplicate existing services. The office said it would complement, not replace, Commerce, SBDC, or grant programs, and would report metrics and policy recommendations to the legislature. The Attorney General then requested a one-time $2 million special revenue appropriation to hire additional lawyers and support staff, citing increased litigation, federal and state legal work, and the need to defend new laws. He also discussed embedded DMV lawyers handling DUI revocation hearings and said the arrangement costs the office just over $200,000. The State Auditor reported that his office is largely self-funded through special revenue and said he wants to reduce reliance on general revenue over time. He highlighted savings from renegotiated leases and an open government contract, discussed the need for more auditors in the Chief Inspector’s Division, and described fraud recovery and P-card operations. A major topic was delinquent land sales: the auditor said the office sold about 17,000 parcels last year and believes online bidding and better marketing could generate substantially more revenue, with the surplus potentially shared among counties, the state, and other programs. Members also asked about securities fee changes, fairness hearings, fire department audits, IT/cybersecurity, and how surplus proceeds from delinquent land sales should be handled. The committee adjourned after the presentations and questions.

Transcript Highlights:

• legislative committee. legislative committee.
• auditors uh available. auditors uh available.
• What are those two auditors doing?
• Those two auditors, uh, three or four auditors for the special education team?
• three<00:40:49.440> four<00:40:49.680> auditors Those two auditor uh three four auditors

Keywords: 1189, house, all

Summary: The Legislative Performance Audit and Oversight Committee approved the November 7 minutes with three abstentions and then received status updates on several ongoing audits. Audit staff reported that the special education oversight audit was in report-writing, with 34 of 71 observations completed and a draft expected in the second quarter and a final report in the summer. The education freedom accounts audit had 22 of 41 observations completed, with a draft also expected in the second quarter and a final report in the summer. The Doorway program audit had 5 of 13 observations completed, with a draft expected by the end of February and a final report by April or May. The committee then discussed possible new oversight topics, prompted by concerns about fraud in other states and the need to ensure New Hampshire programs are not vulnerable. Members suggested hearing from DHS officials, contract administrators, and possibly the Department of Justice Medicaid fraud unit about SNAP and other programs, as well as reviewing staffing levels in HHS contract management. There was also discussion of whether to revisit the Bureau of Elderly and Adult Services, though members noted that prior work on that area had been suspended because of litigation. A representative from HHS, Teresa Narrow, briefed the committee on the Bureau of Developmental Services. She said the state had been in compliance with CMS since July 1, 2023 after resolving issues tied to a system redesign and billing changes, and that provider-side billing problems had also been fixed. She also described three existing bodies involved in developmental disability housing oversight, including the Council on Housing Stability, the ABLE Housing Task Force, and a legislative study committee created by HB 168 in 2024. Committee members asked for her notes to be shared. The committee spent substantial time debating whether to pursue a new special education audit at the school-district level. Members discussed the need to examine why some districts have much higher special education rates and costs than others, and whether a statistically selected sample of schools could be used. Audit staff said no new audits could begin until about May or June and that only a couple of auditors would then be available. Members also noted that a legislative study committee is already working on special education and may issue a report later this year, and the committee appeared to leave the school-level audit idea as a potential future item rather than taking immediate action.

Transcript Highlights:

• You know, if you're an external auditor like our office is, like the legislative auditor can be, like
• 00:04:00.480> legislative<00:04:01.000> auditor office is, like the legislative auditor
• office is, like the legislative auditor can<00:04:01.600> be,<00:04:01.840> like<00:04
• Cases of state government fraud are investigated by the Minnesota Office of the Legislative Auditor.
• These cases can the Legislative Auditor.

Keywords: 1187, senate, all

Summary: State Auditor Julie Blaha discussed fraud in Minnesota, emphasizing that recent attention on fraud during COVID-19 should be separated from broader, ongoing fraud risks. She explained that the Office of the State Auditor oversees about $60 billion in local government activity, including school districts, cities, townships, counties, special districts, and port authorities, and works both to prevent fraud through audits and to investigate cases when they arise. Blaha said the biggest current challenge is workforce shortages in accounting and accountability fields, which makes it harder to provide oversight even as public demand for accountability increases. She urged legislators to involve her office early when drafting bills so the right oversight tool can be matched to the risk, rather than simply adding an audit requirement by default. She also said a proposed Office of the Inspector General would be a useful accountability discussion, but stressed that internal audit structures are often more effective than relying only on external audits. Blaha said the public plays a major role in detecting fraud because tips are the most common way fraud, waste, and abuse are uncovered. She encouraged public employees and local officials to report concerns, especially around unusual spending or misuse of purchasing cards, and noted that reporting can be confidential and is often required for certain public employees. In her closing remarks, she warned that COVID-era fraud often involved private-sector actors and said outsourcing government work requires careful risk analysis and added oversight. The segment ended with a reminder that allegations of state government fraud can be submitted to the Minnesota Office of the Legislative Auditor online, by phone, or by mail.

Transcript Highlights:

• um and the state or the legislative um and the state or the legislative auditor<01:04:46.680>
• <01:09:38.239> auditor<01:09:38.600> was to what the legislative auditor was to what
• <01:23:58.520> Auditors<01:23:59.159> defined the the uh legislative Auditors defined
• legislative auditor on Monday evening legislative auditor on Monday evening and<01:35:34.920>
• > the the legislative auditor talked about the the legislative auditor talked about the importance

Keywords: 1187, senate, all

Summary: The Senate Finance Committee met on January 9, 2025, to focus on internal controls, fraud prevention, and legislative oversight of state agencies. Legislative Auditor Judy Randall explained Minnesota’s internal control framework, based on the GAO Green Book, and described five core controls: assigning responsibility, separating duties, restricting access, maintaining policies and procedures, and keeping records. She tied each control to examples from recent audits, including DHS’s Medicaid provider debt recovery, the Minnesota State Academies’ travel reimbursement issue, privileged access at the Minnesota State Lottery, missing mileage-verification procedures at the Board of Firefighter Training and Education, and weak documentation in the Board on Aging’s senior nutrition program. Deputy Legislative Auditor Jod Mson Rodriguez then presented a new follow-up report on implementation of prior recommendations from 2022 through 2024, including special reviews. She said the office gathers agency documentation, evaluates progress, and categorizes recommendations from implemented to not applicable, while noting that some items require more work to verify and that this reflects OLA capacity rather than agency performance. Examples included the Department of Commerce, where some policy changes were verified but further work would be needed to confirm consistent investigator compliance, and the Metropolitan Council, where more data analysis would be needed to determine whether bonus payments were properly earned. She also noted that a legislature-directed recommendation to require grant manager training had not been implemented. Overall, OLA reported that state agencies had implemented or partially implemented close to 70% of its recommendations, while the legislature had implemented or partially implemented about 40% of recommendations from the last three years. Members generally praised the office’s work and discussed how agencies respond after reports are issued. Senator Westrom raised concerns about a recent media report on alleged fraud in CCAP, and Randall said OLA was aware of the issue but could not discuss details. Senator Draheim asked about post-report agency engagement, and Randall and Rodriguez said follow-up varies, with some agencies seeking private meetings and others engaging less, but that the follow-up process often prompts further discussion and improvement.

Transcript Highlights:

• In addition to working with our wonderful, we have the most incredible legislative auditor staff in the
• And third, the legislative auditor is required to make a recommendation for each review about whether
• So the legislative auditor recommends clarifying that situation.
• The legislative auditor recommends that DOH should verify accrediting organizations.
• The legislative auditor makes two recommendations.

Summary: The meeting began with JLARC’s biennial executive committee elections. After confirming a quorum, members unanimously elected Representative Pollet as chair, Senator Wagoner as vice chair, Representative Orcutt as secretary, and Senator Solomon as assistant secretary for the 2025-27 biennium. The committee also approved the May 14 meeting minutes unanimously. Chair Pollet then outlined a commitment to more member input on audit scope and coordination with the State Auditor’s Office. Staff presented a preliminary report on Washington State recreation boating programs. They reported that six agencies administer boating-related activities, that the state collected about $108 million in boating-related revenue in 2021-23, and that $86 million was spent, mostly on infrastructure and water access, environmental protection, boater safety, and marine law enforcement. Staff said Washington’s boating laws and programs are broadly similar to other states and noted that the final report is expected in September. JLARC then reviewed several tax preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but did not meet emissions-reduction targets because fewer vessels and vehicles converted to natural gas than expected; staff recommended continuing some exemptions and modifying reporting requirements. For travel agents and tour operators, staff said the preference continues to provide tax relief, but large beneficiaries’ savings are rising while small beneficiaries’ use is declining, leading to recommendations to continue the small-business rate and add or revise performance metrics. Staff also reviewed a nonprofit low-income housing property tax exemption, concluding it helps developers build homes as intended but that the performance metric should better reflect housing outcomes; they recommended the legislature decide whether to continue or modify it. Other reviews covered multipurpose senior citizen centers, disabled veteran adapted housing, trade convention attendance, agricultural fertilizer and seed wholesaling, hazardous substance tax treatment for pesticides, and silicon smelter energy preferences, with recommendations ranging from continuation to expiration depending on whether the stated objectives were met. The committee then adopted the final cannabis market study for distribution. Staff reported that Washington businesses produced two to three times more cannabis than retailers sold in 2023, and that inaccurate and incomplete reporting limits the Liquor and Cannabis Board’s ability to regulate the market. The board said it concurs with the recommendations, including developing a plan for a new data system and considering broader social equity options. Finally, staff presented the proposed final report on Department of Health oversight of hospital data reporting, inspections, and complaints. Staff said DOH was late on most acute-care hospital inspections, had not fully verified third-party inspection standards, and did not adequately review adverse event correction plans or assess language access barriers in its complaint system. DOH said it concurs with all six recommendations and has already made some transparency improvements, including a public dashboard for adverse event reporting.

Transcript Highlights:

• The Auditor General did their work.
• Yes, Chairman, I have spoken with the legislative auditor from the state of Minnesota.
• Where the auditor general is limited in their scope based on what the feds tell the auditor general they
• Excuse me, Auditor General Perry.
• And so my auditors have to be flexible.

Keywords: 1182, all

Transcript Highlights:

• Don’t we already have a watchdog department, the Auditor General?
• I know there were some questions earlier about the Auditor General.
• Why not us as a legislative body? So I'm interested in that.
• offered by this body like any other piece of legislation.
• But we have the fiduciary duty as legislators.

Summary: The committee heard and approved several measures. HB 735 expanded Florida’s boating improvement program to fund parking for boat trailers at public ramps and offered a 10% sovereign submerged land lease discount for manufacturers using environmental best management practices; it passed unanimously. HB 4021 expanded the North River Ranch Improvement Stewardship District in Manatee County by 640 acres and was reported favorably. CS for HB 371, which promotes nature-based methods and green/gray infrastructure for coastal resilience, also passed unanimously after supportive testimony from resilience and environmental groups and committee members. The committee then took up HJR 1325, a proposed constitutional amendment to create an elected Commissioner of Government Efficiency (COGE) with authority to audit, investigate, and report on waste, fraud, and abuse in state and local government. The proposal would eliminate the lieutenant governor position, the Government Efficiency Task Force, and the legislature’s current auditor appointment, with many implementation details deferred to a future bill. Members debated the scope of the new office, its relationship to the Auditor General and inspectors general, whether it should cover the legislative and judicial branches, staffing, and the comparison to federal DOGE efforts. An amendment making a minor wording change was adopted, and the resolution passed 23-? with a favorable report after a split vote. The committee also approved two Gulf of America bills. HB 575 redesignated the Gulf of Mexico as the Gulf of America, and CS for HB 549 required Florida’s academic standards and newly adopted instructional materials to reflect the federal designation for materials acquired on or after July 1, 2025. Both measures drew criticism from members who argued the renaming was politically motivated, historically insensitive, and potentially confusing for students, while supporters said Florida should align with federal action. HB 575 passed and CS for HB 549 passed 18-7. Finally, HB 4071, a local bill adjusting the boundary between Coral Springs and Parkland in Broward County by about 8.7 acres, was amended and reported favorably with support from both cities and the Broward delegation.