Transcript Highlights:

• Tangible personal property is business equipment, but it's also the largest taxpayers in the state.
• If you have a large manufacturing facility in your county, the business equipment inside, all the material
• handling equipment, all of that's on the tangible personal property roll.
• 436,000 of those are real estate parcels; the rest are tangible personal property, such as business equipment
• The Department of Revenue has really gotten very intricate, and when they look at this, they can drill

Committee: Senate Finance and Tax

Summary: The Committee on Finance and Tax met with a quorum present and heard a presentation from the Property Appraisers Association of Florida on ad valorem valuation, exemptions, and the property tax process. Lauren Levy reviewed the legal and historical framework of Florida property taxation, including Save Our Homes, the 10% cap on non-homestead assessments, portability, tangible personal property exemptions, TRIM notices, and the distinction between taxable value and millage rates. He emphasized that property appraisers are independent constitutional officers who assess just value, administer exemptions, and are overseen by the Department of Revenue, with values and exemptions generally determined as of January 1 and subject to challenge through the Value Adjustment Board or circuit court. Mike Twitty described the mass appraisal process in Pinellas County, explaining how property appraisers value large numbers of parcels using the same core approaches as fee appraisals but with statistical testing, field reviews, aerial imagery, and technology. He discussed the importance of budget, staffing, and the January 1 valuation date, and noted that recent hurricanes caused significant damage, increased petitions, and required new procedures to help property owners with value reductions and FEMA-related issues. Paul Polk focused on Department of Revenue oversight, explaining sales ratio studies, uniformity measures such as COD and PRD, time adjustments, sales qualification reviews, and in-depth studies that can lead to corrective action if assessment standards are not met. He also noted that the Department reviews property appraiser budgets to preserve independence from county pressure. Senators asked about the supersized homestead concept, DOR review and rejection standards, value trends, and the impact of storms and new construction on taxable value. Twitty and Polk said value growth has been driven by a mix of new construction, market appreciation, cap resets, and storm-related adjustments, while noting that some counties saw market value decline even as taxable value rose. They also said some property tax relief proposals would be easier to implement than others depending on how local tax bills are structured, especially where law enforcement millage is separately identified. No votes were taken on legislation, and the committee adjourned after the presentation.

Transcript Highlights:

• insurance claim that was submitted as a result of the damage that happened to that building due to the equipment
• And I know Lori, welcome the governor's office here if the committee wants to drill into that from that
• You know the drill. Thank you, Mr. Chairman.
• You know the drill. Thank you, Mr. Chairman and members of the committee. I'll be brief.
• You know the drill. Good morning, Mr. Chair.

Committee: Senate State Affairs

Transcript Highlights:

• And I think that we as a legislature need to be drilling down on what exactly affordability means and
• Can we drill down on that a little bit more?
• Can we drill down on that a little bit more? Can you explain it in a little bit more detail?
• I want to drill down on something from CDSS that Alexis you talked about.
• And thanks to our community of supporters, we were equipped to undertake a quick and effective response

Summary: The joint hearing focused on CalFresh enrollment, food insecurity, and the effects of the recent federal shutdown and H.R. 1 on California families. Opening remarks emphasized that the shutdown delayed SNAP/CalFresh benefits for the first time in the program’s history, prompting emergency state, county, and local responses such as Operation Feed California, county emergency funds, food bank expansions, and Alameda County’s temporary food distributions and gift card support. Members also framed the issue as both a hunger and affordability crisis, noting that California produces abundant food but still has high rates of household food insecurity. The first panel reviewed food insecurity data and program impacts. PPIC’s Tess Thorman said about 13% of California households were food insecure in 2023, with higher rates among households with children and among Latino and Black households, and explained that CalFresh, school meals, and WIC significantly reduce poverty and hunger. Nourish California’s Betzabel Estudio described food insecurity as a policy choice and outlined state policy efforts such as Food for All, Thriving Transitions, and expansion of the CalFresh Fruit and Vegetable EBT program. The California Association of Food Banks said demand remains high, food banks are serving millions monthly, and federal cuts and reduced TEFAP food supplies are worsening the strain. The second panel gave a CalFresh program overview from CDSS and Alameda County. CDSS reported that CalFresh participation has improved, with California’s participation rate rising from 67% in 2020 to 81% in the latest federal data, and highlighted recent successes including the minimum nutrition benefit pilot and the revived fruit-and-vegetable incentive program. Officials also warned that H.R. 1 will add work requirements, reduce eligibility for some immigrants, and create future cost-sharing pressures for the state and counties. Alameda County described local caseloads, application declines tied to fear and uncertainty, and efforts to reduce error rates and support students, older adults, and other hard-to-reach groups. A student CalFresh ambassador testified about the burdensome application process and the need for more outreach and basic needs support on campuses. No votes were taken; the hearing was informational, with members discussing possible future legislation, outreach funding, and state backfill strategies.

Transcript Highlights:

• And then we'll do bluff-collapse drills like we do fire drills. That's what I was imagining.
• And then we'll do bluff-collapse drills like we do fire drills. That's what I was imagining.
• And Dave, what local efforts are being conducted to ensure that infrastructure is equipped to deal with

Summary: The hearing of the Select Committee on Sea Level Rise and the California Economy focused on infrastructure, pollution, climate resilience, public health, access, and economic impacts of sea level rise in California, with an emphasis on San Diego and the Bay Area. Chair Tasha Boerner Horvath opened by describing the committee’s purpose, the state’s sea level rise action planning, and the need for better monitoring and early warning systems. She also referenced her prior bills AB 66 and AB 72, which supported Scripps research on coastal bluff collapse warning capabilities. Assembly Members David Alvarez and Jessica Caloza later joined and emphasized that sea level rise affects not only coastal communities but inland areas as well, and that the issue should inform future legislative and budget decisions. In the first panel, Dr. Mark Merrifield of Scripps Institution of Oceanography described observed sea level rise of roughly 0.8 to 0.9 feet since the early 1900s, with acceleration expected by mid-century and potentially much greater rise by 2100 depending on emissions. He highlighted flooding, groundwater rise, beach and cliff erosion, salinization, and risks to transportation, sewage, ports, and national security. Dave Gibson of the San Diego Regional Water Quality Control Board discussed how sea level rise affects wastewater systems, stormwater, contaminated sites, wetlands, and coastal groundwater basins, and said the board is requiring climate adaptation planning, updating stormwater permits, and seeking more flexible state permitting and mitigation tools. Members and witnesses also discussed the need for better mapping, more monitoring, and more state funding, especially if federal support from NOAA and other agencies declines. The second panel addressed public health, equitable access, and local economies. Ramon Chiras of Un Mar de Colores described how sea level rise, pollution, and access barriers threaten the Tijuana River Valley and Imperial Beach, especially for underserved communities and youth programs that rely on safe, welcoming access to the ocean. He stressed the cultural and spiritual importance of coastal access and the need for water safety and environmental education. Jessica Fane of the San Francisco Bay Conservation and Development Commission explained that the Bay Area faces major economic exposure from sea level rise, citing a regional estimate of $96 billion in adaptation costs versus $230 billion in potential losses from inaction, and said BCDC is working with local governments under SB 272 on shoreline adaptation planning, funding, and regulatory innovation. Members discussed the tension between environmental permitting and the need to move projects faster, including the possibility of planned retreat in some areas and the use of simultaneous permitting and longer-term state authority to streamline adaptation work. In the final panel, Philip Gibbons of the Port of San Diego described the port’s climate adaptation efforts and its vulnerability assessments under AB 691. He said the port manages state tidelands, supports maritime commerce and recreation, and is already seeing flooding at king tides and during El Niño events, including storm-drain backflow and damage to bikeways and parks. He explained that future sea level rise could inundate major port areas and disrupt operations, underscoring the need for continued planning, mitigation, and infrastructure investment. The hearing did not take formal votes, but it concluded with a clear call for more science, funding, coordination, and regulatory streamlining to prepare California’s coast and nearby communities for worsening sea level rise impacts.

Transcript Highlights:

• So it also sits, we have CBP's communication equipment that sits on the international boundary line,
• So CBP processing and data communication equipment sits directly on top of some of the lanes at the port
• I have my speaker here who can drill down on the exact numbers. Thank you. All right.

Bills: HB2113 , HB2237 , HB2824 , HB2926 , HB2939 , HB2950

Committees: House Rural Economic Development , House House Rural Economic Development Committee of Reference

Keywords: utility consumer, rate intervention, public service corporation, Arizona Revised Statutes, residential rates, consumer protection, appropriation, Apache Junction, tourism, recreation, Superstition trails, funding, infrastructure, C-PACE, capital expenditure, special assessment, property improvement, local government financing, energy efficiency, water conservation

Transcript Highlights:

• Specifically, we recommend language that equips educators with the training they need to prevent behavioral
• Equipping teachers with evidence-based practices to prevent crisis situations through appropriate de-escalation
• If you just tell us, obviously you know the drill, who you are, who you represent, and your position

Bills: HB 1022 , HB2856 , HB3114 , HJR5 , HB6 , HB 120 , HB210 , HB1458 , HB 1188 , HB3126 , HB6 , HB120 , HB210

Committees: Senate Education , Senate Education K-16

Transcript Highlights:

• I drill down on that a little bit more.
• Those are very narrow issues when we drill down.
• Those are very narrow issues when we drill down.
• if an individual chooses to be active right now, the only option is to pay out of pocket for the equipment

Committee: House Insurance

Transcript Highlights:

• We need to update the accuracy of the electronic voting equipment that's used.
• So we're checking the accuracy of the equipment that's used at a given time. given location. Okay.
• Kenoite voting uses less equipment. I've overseen both as I said.
• Therefore, countywide voting is less expensive because it takes less equipment to do that.
• What if you were able to have and you've got to have a different set of equipment?

Bills: SB16 , SB76 , SB310 , SB311 , SB396 , SB505 , SB827 , SB964 , SB1209 , SB1210 , SB1386 , SB1470 , SB2035 , SJR37 , SB 16

Committee: Senate State Affairs

Transcript Highlights:

• They invest in training and equipment.
• They invest in training and equipment.
• , yet in invest heavily in OEM required equipment, software, and infrastructure.
• I've roughly spent $70,000 on tools and equipment and some schooling.
• I've roughly spent $70,000 on tools and equipment and some schooling.

Committees: House Emerging Issues , House Emerging Issues and Professional Registration

Transcript Highlights:

• So our team worked very, very diligently to sort of scrub administrative expenses and really drill down
• , and then a second sales tax exemption when that server equipment is refreshed.
• So our team worked very, very diligently to sort of scrub administrative expenses and really drill down
• when that server equipment is refreshed.
• The next is a... break on the refresh of that server equipment.

Bills: SB5998

Committee: Senate Ways & Means

Keywords: fiscal appropriations, budget, state funding, financial management, operating expenses

Transcript Highlights:

• , a $500,000 generator at the Louisiana State Exhibit Museum, and $382,500 for replacement of IT equipment
• , which includes 306 computers, core routers, and various other technology equipment.
• We're requesting $4.67 million for appropriate housing of our critical equipment and the paper.
• And I was the first Secretary of State who had ever actually visited the warehouses where our equipment
• To identify the actual amount, he would have to drill down on the employees designated to process the

Committee: House Appropriations

Summary: The committee heard a budget presentation for the Department of State. House Fiscal Division said the FY27 recommended budget is $128.6 million and 367 positions, with elections making up the largest share. Secretary of State Nancy Landry said the office is implementing Louisiana’s first closed party primary, continuing voter education efforts, and moving toward procurement of a new voting system that would produce a voter-verifiable paper ballot and support risk-limiting audits. Members asked about polling place confusion, machine replacement costs, election commissioner pay, and the cost of educating voters about the new primary system. Landry said polling places are not changing because of the new primary law, the new system is expected to cost about $100 million total, and a bill this session would raise election commissioner pay by $100 per day. Fiscal staff also estimated the closed primary law will add about $31.5 million in costs over five years, mostly from converting local elections to statewide elections and voter outreach. The committee then reviewed the Department of Veterans Affairs budget, which was presented at about $105.2 million with a mix of federal, state, self-generated, and interagency funds. The department said most costs are tied to personnel and veterans’ homes, and that the homes are funded largely by federal dollars plus self-generated revenue. Members focused heavily on delays in processing National Guard disability claims and payments to veterans. Representatives said constituents had waited about a year for claims to be resolved, while the department said it had increased staffing and was processing a backlog of more than 400 claims, but still had about $950,000 in approved claims awaiting funding. The department said the payout program is governed by statute and that additional supplemental funding has been requested. Members also discussed veterans’ home care, including how service-connected disability status affects eligibility and costs, and whether chronic wound care and related complications could increase long-term costs. The department said veterans with higher service-connected ratings receive care with federal support, while others pay fees. Several members urged the department to provide clearer timelines and better communication to claimants, and one member suggested a separate oversight hearing to address the disability claim process and any needed statutory changes. The committee adjourned after the presentations and questions.

Transcript Highlights:

• of years, as we're working on this, continue to be able to refine the data and hopefully be able to drill
• </c> data and and hopefully be able to drill data and and hopefully be able to drill deeper<00:05:33.080
• risk of living on the street, in their cars, in our shelters, and our communities are simply not equipped
• to meet these needs simply not equipped to meet these needs I<00:15:10.399><c> cannot</c><00:15:10.680
• with fire sprinklers were not equipped with fire sprinklers the<00:29:40.159><c> question</c><00:29:

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• this bill, we could have saved quite a few lives of children when they didn't have the necessary equipment
• All hospitals must have, be supplied with the necessary equipment and standards to handle children.
• Children's arms are much smaller than adults, so you have to have necessary equipment.
• But if you only see 15 children a day, that's the equipment.
• They look at your clinicals, your building, your equipment, every aspect of a nursing program.

Committee: Senate Health Policy

Summary: The committee heard and approved several health care bills. Senate Bill 68, by Senator Harrell, would require all hospital emergency departments to be prepared to treat children by maintaining pediatric equipment, staff training, written policies, a pediatric care coordinator, and completion/public posting of the National Pediatric Readiness Assessment. Senator Harrell said the bill is intended to improve pediatric emergency care in general hospitals, and the bill was supported by the Florida College of Emergency Physicians and the Florida Chapter of the American Academy of Pediatrics. It passed favorably. The committee also approved Senate Bill 154, which corrects the Mobile Act for dentists and dental hygienists by requiring graduates of out-of-state dental schools seeking licensure by endorsement to have attended a CODA-accredited school. The bill drew support from dental and dental hygienist groups and passed favorably. Senate Bill 40, by Senator Sharif, would require Medicaid managed care networks to ensure at least half of primary care providers offer appointments outside regular business hours, including evenings and weekends, to improve access and reduce emergency room use; it also passed favorably. A lengthy discussion centered on Senate Bill 254, also by Senator Harrell, which would tighten oversight of nursing education programs, create a temporary provisional license and preceptorship for new graduates awaiting NCLEX results, require remediation for low-performing programs, add standardized admission and exit-exam requirements, and allow the Department of Health to inspect programs unannounced. Supporters said the bill would improve quality and help students gain experience, while opponents warned it could reduce the number of nursing programs and worsen shortages, especially among private schools. After debate and testimony from nursing and school representatives, the bill passed favorably, with Senator Davis voting no. The committee then received an OPPAGA presentation on interstate health care licensure compacts. OPPAGA reviewed how Florida uses licensure by endorsement, telehealth registration, and compacts for nurses, psychologists, and physicians, and explained the potential benefits and drawbacks of joining additional compacts, including portability, data sharing, and emergency staffing versus costs, administrative burdens, and possible conflicts with Florida scope-of-practice laws. No action was taken on the presentation, and the meeting adjourned after Senator Davis requested to be recorded in support of SB 68 and SB 154.

Transcript Highlights:

• making sure there's an emergency evacuation and carbon monoxide and smoke alarms and monthly fire drills
• I mean, I come from southeastern New Mexico, where there are 8,000 ways to hurt yourself on a drilling
• , does this apply to others like community workers, like public works, you know, operating heavy equipment
• Okay, so if you're operating heavy equipment, though, if you're in public works I mean, if you're driving
• So you can have these particular workers driving some dangerous equipment that may have accidents.

Bills: SB20 , SB53 , SB86 , SB96 , SB129

Committee: Senate Senate Health & Public Affairs

Keywords: prior authorization, pharmacy benefits manager, PBM, health insurer, prescription drugs, step therapy, formulary, auto-adjudication, electronic portal, appeals, medical necessity, serious mental illness, mental health, schizophrenia, bipolar disorder, major depression, substance use disorder, addiction treatment, cancer, autoimmune disorder

Transcript Highlights:

• We replaced legacy equipment, including firewalls, network equipment, and employee workstations.
• increase in rent and the GSD and DOIT rates, $110,000 for the cybersecurity recurring subscriptions and equipment
• I'll give you the incident so you know: A Pueblo was drilled a well.
• A vendor went and drilled the well. They got attacked.

Transcript Highlights:

• I grew up having to practice atomic bomb drills in elementary school.
• Such drills are no longer done.
• Based on recent events, it’s even more critical that we believe in and support survivors, equipping them
• people and also want to thank the Disability Resources Agency for Independent Living, also known as Drill
• AB 2219 is our promise to equip them with the cutting-edge tools they need to ensure that everyday veterans

Summary: The Assembly met on May 7, 2026, after an initial delay caused by the absence of a quorum, then proceeded with prayer, a moment of silence for victims of a hate-motivated attack at the Islamic Center in San Diego, and the Pledge of Allegiance. The Speaker pro tempore then moved through the daily file, repeatedly urging members to be on time and at their desks as the House of Origin deadline approached. Procedural actions included dispensing with the journal, deferring some items, and moving AB 1667 to the inactive file. The bulk of the session was devoted to floor consideration of many bills, most of which passed with little or no opposition. Measures approved included bills on artificial intelligence provenance information (AB 2713), community college trustee compensation (AB 2528), transit camera enforcement and privacy (AB 1837), excess proceeds claims in taxation (AB 2705), HOA technical cleanup (AB 1892), hepatitis C treatment access (AB 1843), child care planning in local general plans (AB 1914), greenhouse energy code flexibility (AB 2200), rent-now-pay-later consumer protections (AB 2350), housing cleanup and density bonus measures (including AB 2390, AB 2480, AB 1567, AB 1751, and others), spay/neuter access (AB 2010), workforce housing financing tools (AB 2110), supportive housing and homelessness-related changes (AB 2146), mental health and health plan notification measures (AB 1598, AB 2613), student aid and education bills (AB 1534, AB 1636, AB 1669, AB 1728, AB 1784, AB 1871), public safety and criminal justice bills (AB 1546, AB 1572, AB 1872, AB 1877, AB 1932), and several health and social services measures (AB 1602, AB 1628, AB 1680, AB 1825, AB 1845, AB 1906, AB 1907, AB 1925). Most bills were described as support measures, often with bipartisan backing and no opposition, and passed by wide margins. A few bills drew more discussion, especially AB 1751, a housing/townhome bill that sparked extended debate over wages, prevailing wage, stakeholder engagement, and whether the measure could depress pay for construction trades; despite concerns and an opposition speech, it ultimately passed 44-0. AB 1793, which would allow symmetrical rounding of cash transactions to the nearest nickel in light of the penny’s phaseout, also drew light debate and passed 47-1. AB 1932, an urgency measure expanding community-based crisis response, passed with one no vote on both the urgency and the bill. Several urgency or 54-vote bills, including AB 1534 and AB 1932, required later roll calls or calls to be lifted, but all measures described in the transcript were ultimately approved.

Transcript Highlights:

• Abraham, relative to the State Licensing Board for Contractors, to provide relative to water well drilling
• this bill requires anyone performing, offering services related to water wells or environmental drilling
• perspective, but it was really a simple bill that had to be defined by the definition of water well drilling
• We believe that parents are best equipped to make decisions about their children.
• I think we all share in that responsibility to figure out how to get the word out there to equip them

Committee: House Commerce, Consumer Protection, and International Affairs

Summary: The committee first deferred House Bill 1102 without hearing it. It then took up House Concurrent Resolution 66, which urges Louisiana Economic Development and other state agencies to continue studying rural parishes’ economic assets, infrastructure, workforce, and development opportunities. Representative Weible and Secretary Bougoir described the resolution as part of a broader effort to align state rural programs and create a strategic framework for rural development. Members emphasized infrastructure, workforce training, local coordination, and retaining young people in rural communities. An amendment requiring LED to report to the legislature by January 1, 2027 was adopted, and HCR 66 was reported favorably as amended. The committee next considered Senate Bill 102, which would allow qualified trade associations for motor vehicle dealers to bring declaratory and injunctive actions against manufacturers on behalf of dealers. Senator Presley and the Louisiana Automobile Dealers Association said the bill would consolidate similar disputes into one action, reduce costs, and help smaller dealers avoid retaliation or uneven litigation. Questions focused on standing, the limited remedies, and whether the bill would affect nontraditional sales models. Technical amendments were adopted, and SB 102 was reported favorably as amended. Senate Bill 521, concerning banks’ continued use of a non-surviving bank’s name after mergers or consolidations, drew the most debate. Senator Boudreau and former Senator Fred Mills said the bill would preserve community-bank identity while following FDIC guidance on clear disclosure and consumer notice. Several members raised concerns about codifying federal guidance, future changes to federal rules, and whether the bill should instead set a fixed transition period; an amendment to limit use of the old name to 24 months was adopted after discussion. Another proposed amendment tying the bill to 1998 FDIC branch-name guidance failed on a roll call vote. The bill, as amended, was then reported favorably. The committee also advanced House Bill 387, which narrows the scope of incidental engineering work by architects and clarifies the state fire marshal’s authority to review plans under both architecture and engineering laws, and House Bill 1228, which updates hearing-aid dealer licensing and consumer-protection rules, including testing periods, cooling-off rights, and refund/cancellation procedures. Both bills were reported favorably with technical amendments. The transcript then shifted to additional measures, including House Bill 975 on Public Service Commission reconstitution and several Senate bills by Senator Abraham on self-storage facilities and contractor licensing, but the provided text cuts off before those items are fully concluded.

Transcript Highlights:

• So they're open to the idea, but when we drilled down to ask respondents, do you have the hiring capability
• unsure of a person's capability, 56%; unsure of how to correct behavior issues, 51%; and they're not equipped
• So they're open to the idea, but when we were drilled down to ask respondents, do you have the hiring
• And they're not equipped to work with someone with IDD, 39%.

Summary: The meeting focused on integrated employment and related services for people with intellectual and developmental disabilities, with testimony from several provider agencies and state officials. Robin Arder and Belinda Stevens of ThinkAbility described how their organization supports people through residential services and self-created businesses because community employers often are not ready to hire people with disabilities. They said rigid service rules, difficulty fitting individuals into existing job definitions, and reimbursement requirements can prevent person-centered employment supports. They also reported that, in their experience, employees had not lost benefits when work was coordinated carefully with Social Security and benefits management. Tina Hannah of South Central Industries described a broad business model that includes manufacturing, janitorial and highway contracts, state-use products, a food truck, and an entertainment trailer, along with an adult day program and residential services. She said the organization uses a temp-service style model to make employers more comfortable and noted barriers such as employer concerns about productivity, lack of awareness of tax credits and accessibility resources, and the need for consistent job coaches. Miranda Figueroa of A New Leaf said her agency is moving toward a more person-centered model, including a Transition Academy for young adults that combines independent living instruction, community college classes, internships, and follow-along support; she said the program has an 85% placement rate but is expensive and not eligible for traditional student aid because it is not accredited. She also cited barriers including dual diagnoses, workforce readiness, and low reimbursement rates. Angela Decker and Deborah Copeland of DRTC described their long-running enclave contracts and a new Community Skills and Connection program that uses interest-based cohorts, community exploration, and volunteer experiences to build skills and networks tied to employment. They said the agency is phasing out its 14(c) subminimum wage certificate by the end of the year and is trying to expand community-based opportunities. DRTC and other providers emphasized the need to blend DDS and DRS services more effectively, reduce restrictive rules such as line-of-sight requirements, and better support people in congregate living settings. DRS representatives said the agency does provide school-based transition services, employer accommodations, and job carving support, and noted federal reporting requirements tied to wage outcomes. Members also discussed safety concerns, employer education, data collection, ABLE accounts, and the role of schools in preparing students for work and community life. The co-chairs proposed organizing the task force into three working groups: in-school/transition services, program support and service blending, and community integration/employer engagement. No votes were taken, and the meeting ended with plans for further working-group discussion and follow-up on data and policy ideas.

Transcript Highlights:

• The agency had a piece of equipment stolen, disallowed expenditures of federal grant awards, and unauthorized
• You know the drill. Would you stand to be sworn in, please?
• Rogers, you know the drill. If you would introduce yourself for the record.
• “Documentation was not maintained to support equipment lease payments and payoffs.

Committee: All LEGISLATIVE JOINT AUDITING

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• The agency had a piece of equipment stolen, disallowed expenditures of federal grant awards, and unauthorized
• You know the drill. Would you stand to be sworn in, please?
• Rogers, you know the drill. If you would introduce yourself for the record.
• Documentation was not maintained to support equipment lease payments and payoffs.

Committee: All LEGISLATIVE JOINT AUDITING