Transcript Highlights:

• I acknowledge that this is not the silver bullet, but I still think, in the face of traffic safety and
• I acknowledge that this is not the silver<02:46:59.359> bullet,<02:47:00.080> but<02:47
• , but I still think um in silver bullet, but I still think um in the<02:47:03.680> dice<02:47:
• Yeah, I want to acknowledge that none of this is a silver bullet, but let's see what we can continue
• I want to acknowledge that none of this is a silver bullet, but let's see what we can continue to further

Keywords: 910, house, all

Summary: The committee heard SB 2694 SD2, which would authorize the Public Utilities Commission to create automatic adjustment mechanisms for water carriers, including a water carrier inflationary cost index, and to waive certain requirements under the Hawaii Water Carrier Act. Testimony was sharply divided. The Department of Transportation, Young Brothers, and several shipping, harbor, labor, and business-related supporters argued the bill would modernize regulation, reduce the need for large catch-up rate cases, and help keep rates aligned with rising costs. Young Brothers said its current rate-setting process is expensive and delayed, and that annual adjustments with guardrails such as a 5% cap and periodic full reviews would support sustainable operations and the state’s supply chain. Some supporters also said the company’s less-than-container-load service and required inter-island routes create costs that are not fully covered by current rates. Opponents, including the Consumer Advocate, the Maui Chamber of Commerce, Hawaii Food Industry Association, restaurant and chamber groups, and other businesses, argued the bill would lead to higher costs for consumers and businesses and should not move forward. Several testified that shipping costs already significantly affect pricing and that automatic increases would worsen the cost of living. The Consumer Advocate said Young Brothers should focus on cost control and implementing its business plan rather than automatic rate increases. The Maui Chamber and others pointed to a recent PUC decision that imposed a two-year stay on rate increases and said the bill would undermine that protection. Some opponents urged the committee to defer to the PUC’s regulatory authority. The PUC explained that it regulates water carriers as public utilities under existing statute and said it had recently approved a temporary rate increase while imposing a two-year stayout period on further increases, with emergency relief still possible. PUC members said they were still examining whether they have authority to adopt the proposed WICI mechanism by rule and wanted legislative clarity. In response to questions, the PUC said it prefers the current two-year stayout as reflected in its order. Young Brothers also clarified that it serves less-than-container-load cargo, that some routes and services are cross-subsidized because they are not profitable, and that an independent observer is being put in place to monitor implementation of its updated business plan. The transcript ended with the committee still taking questions; no final vote or disposition on the bill was shown.

Transcript Highlights:

• and<00:14:18.000> this<00:14:18.240> was<00:14:18.399> in<00:14:18.560> Bullet
• research center and this was in Bullet research center and this was in Bullet County<00:14:19.519
• the<00:14:26.639> um<00:14:26.800> the<00:14:27.279> uh<00:14:27.680> Bullet
• you get to visit the um the uh Bullet you get to visit the um the uh Bullet County<00:14:28.320>

Keywords: 958, all

Summary: The committee met with a full quorum and approved the prior minutes. Members offered introductions of guests and family members, then heard a presentation from University of Louisville President Thomas Jared Bradley, who was sworn in before testifying. He described his background and outlined U of L’s strategic priorities: student success, access and affordability, workforce development, community engagement, and research. Bradley highlighted enrollment growth, increases in first-generation and Pell-eligible students, strong transfer pathways with KCTCS, and support programs such as the Cardinal Commitment Grant, 15-to-Finish, Comeback Cards, tutoring, mentoring, and mental health services. Bradley also emphasized U of L’s statewide and regional impact through UofL Health, rural outreach, the Bullitt County rural cancer education and research center, nursing expansion, and the Kentucky Manufacturing Extension Partnership program. He noted major institutional distinctions, including R1 status, a new Carnegie Opportunity College and University designation, and community-engaged classification. He said the university is one of only 10 public universities nationwide with all three designations and reported record enrollment, improved retention, and strong research expenditures. He also thanked lawmakers for significant capital and operating support, including funding for the simulation center, health science center, asset preservation, and the MEP program. During questions, members praised the university’s public service role and asked about first-generation enrollment, retention, graduation rates, and post-graduation outcomes. Bradley said the university is working to improve completion by expanding academic support, early alerts, incentives for tutoring, and faculty/advisor mentoring, especially for first-generation and high-need students. He acknowledged that post-graduation employment data is difficult to collect but said the new Carnegie classification reflects positive outcomes. No votes were taken beyond approving the minutes, and no formal actions were taken on legislation in this portion of the meeting.

Transcript Highlights:

• sting of being told you are less than and you'll be followed, I'd almost rather feel that than a bullet
• a<05:08:01.280> sting<05:08:01.680> of<05:08:01.800> a<05:08:01.920> bullet
• before I feel a sting of a bullet. before I feel a sting of a bullet.
• ><05:08:13.280> BUT<05:08:13.440> IF<05:08:13.720> I RATHER FEEL THAT THAN A BULLET
• BUT IF I RATHER FEEL THAT THAN A BULLET.

Keywords: 981, all

Summary: The House convened, established a quorum, approved the journal, and then moved through announcements recognizing Nowruz/Persian New Year, Ute Day at the Capitol, Mosaic students, and other brief invitations and tributes. The chamber then agreed to proceed out of order to resolutions and adopted House Joint Resolution 1017, which urges the federal government to fulfill obligations to the Southern Ute Indian Tribe and the Ute Mountain Ute Tribe regarding water rights and the Animas-La Plata project. Supporters emphasized tribal water security, federal funding, and the tribes’ longstanding stewardship; an amendment (L.004) was adopted 60-0, and the resolution then passed 60-0, with several members adding as co-sponsors. The House also adopted Senate Joint Resolution 17, reappointing Carrie L. Hunter as State Auditor for a five-year term. Speakers from the Legislative Audit Committee praised Hunter’s professionalism, nonpartisan leadership, and the office’s national recognition; the resolution passed unanimously, 62-0, and members invited Hunter to be recognized in the chamber. After that, committee reports from Appropriations and Finance were read and several bills were set as special orders for later consideration. In Committee of the Whole, the chamber considered several measures. Senate Bill 39, dealing with Fire and Police Pension Association disability and survivor benefits, received a technical cleanup amendment and passed. House Bill 1311, concerning bonds in lieu of retainage in construction contracts, was amended to clarify public versus private projects and passed; supporters said it would help smaller contractors, including contractors of color and women contractors, enter the market. House Bill 1184, continuing the Colorado Forest Health Council, passed after committee report amendments. House Bill 1305, on aligning state and federal statutes to improve access to inpatient behavioral health, passed despite some committee-level concerns about regulation. House Bill 1234, concerning access to child abuse or neglect records, passed after an amendment limiting access unless courts explicitly grant it; supporters said it would help victims access their own records, including for legal defense. Finally, Senate Bill 50, on child care center policy disclosures, was introduced with sponsors explaining it would require centers to disclose mandatory reporter obligations, camera and footage policies, and related privacy/access rules, in response to a case where parents were denied access to video footage.

Transcript Highlights:

• So your direct budget, the bullets below it, this is a repeat of that table that had everything, and
• Again, page 10 is our centralized services, and again, those are the things, the bullets down below.
• So your direct budget, the bullets below it, this is a repeat of that table that had everything, and
• Again, page 10 is our centralized services, and again, those are the things, the bullets down below.
• Again, page 10 is our centralized services, and again, those are the things, the bullets down below.

Keywords: 928, house, all

Summary: The committee first heard the Banking Department’s fiscal year 2026-2027 budget presentation from Commissioner Amelia Galeri. She described the department as a self-funded consumer protection regulator overseeing two main areas: the Banking Trust Division, which supervises state-chartered banks, credit unions, and trust companies, and the Consumer Credit Division, which oversees more than 7,000 licensees including mortgage and money transmitter businesses. She said the department’s budget is about 86% salaries and benefits, with 53 positions all filled, and explained that the agency funds itself through fees, fines, and end-of-year assessments on regulated entities. Galeri said the department is facing workload growth from several directions: continued growth in the trust industry, increased fintech supervision, and a new requirement to regularly examine auto dealers that take finance applications, which adds about 300 exams over two fiscal years. She said the department was directed to flat-fund its budget based on 2025 levels but was allowed to increase travel and training. To stay within that limit, she said the department reduced office space, went paperless, converted administrative and licensing positions into examiner positions, and expects to defund an embedded DOJ database administrator position once a new SharePoint system is fully implemented. Members asked about how the department’s revenue and assessments work, including whether fees were increasing and how much existing banks would pay. Galeri said fees are not being raised, most banks pay little or no fines, and assessments are based largely on asset size, with trust companies paying the bulk. She also explained that fines are set by statute, generally capped at $2,500 per violation for consumer credit entities, and said she would not recommend increasing that cap. The committee then voted to accept the Banking Department’s budget proposal as presented in HQ1, with a motion and second and no discussion. The transcript then moved to the Department of Energy budget. Commissioner Jared Chakin and Chief of Operations Lenny Radio discussed federal program funding, including LIHEAP fuel assistance and weatherization. They said the apparent drop in fuel assistance funding from FY 2024 actuals to the budgeted amount is due to the loss of ARPA and CARES Act supplemental funds, while weatherization remains a federally constrained program with a waiting list and limited flexibility. Members also asked about a proposed transfer from the renewable energy fund; staff said the transfer would still allow the department to carry out its statutory duties for the year, though the committee deferred deeper discussion until House Bill 2.

Transcript Highlights:

• slide 12, you had mentioned the distinction regarding the out-of-state services, and in that last bullet
• 16.200> last out-of-state services, and in that last out-of-state services, and in that last bullet
• :18.160> the<01:26:18.320> child<01:26:18.760> does<01:26:18.920> not bullet
• , it says if the child does not bullet, it says if the child does not qualify<01:26:20.000> for

Keywords: 958, all

Transcript Highlights:

• Members, when it comes to fighting fraud, there are no silver bullets, but this bill is a substantial
• /c><01:44:08.800> are<01:44:08.960> no<01:44:09.440> silver<01:44:09.920> bullets
• ,<01:44:10.880> but fraud, there are no silver bullets, but fraud, there are no silver bullets

Keywords: 919, house, all

Summary: The House took up Senate File 856, which would create an Office of the Inspector General to combat fraud in state public programs. Representative Norris described the bill as the product of a long bipartisan, bicameral working group and emphasized the office’s independence, five-year term, Senate confirmation, removal-for-cause protections, authority to investigate entities receiving public funds, prevention-focused duties, and required public and annual reporting. Representative Anderson PE also thanked the bipartisan authors and staff, saying the bill was the result of extensive negotiations and should move forward without reopening the agreement. Members then considered several amendments. Norris offered a technical cleanup amendment, A44, to clarify language about embedding employees at the Department of Education, distinguish civil and criminal investigative authority, and update law-enforcement terminology; it was adopted. Anderson PE then offered and secured adoption of a technical amendment, A45, to correct a drafting error. Representative Cleorne offered A37 to add prepayment review procedures for all agencies, but it failed on a roll call, 65-67. Cleorne also offered A38 to appropriate $15 million for OIG modernization and data-sharing improvements, but withdrew it after noting it would be out of order. A39, which would have renamed the proposed law enforcement unit from an anti-fraud and waste bureau to an anti-fraud and enforcement unit, failed on a roll call, 66-67, after debate over whether “waste” should be included in the title and scope. During debate on the naming amendment, supporters argued the title should better reflect law-enforcement work and avoid implying the office was a “waste” agency, while opponents said the existing language reflected the bipartisan working-group agreement and that changing it could jeopardize the bill’s progress. Representative West cited inspector general standards that include waste among their duties, and Representative Pinto questioned the substantive basis for opposing the change. Later, Representative Mhler offered A41 to eliminate the future law-enforcement agency entirely, arguing it would be duplicative and unfunded; the transcript cuts off before the vote on that amendment.

Transcript Highlights:

• So, this is not a silver bullet, it's not the total solution, but this is a big step in the right direction
• <00:47:40.720> not<00:47:41.440> a<00:47:41.480> silver<00:47:41.800> bullet
• ,<00:47:42.080> it's<00:47:42.240> not this is not a silver bullet, it's not this is
• not a silver bullet, it's not the<00:47:42.600> the<00:47:42.880> total<00:47:43.200><

Bills: HF4710, HF4055, HF3848, HF3989, HF4599, HF3767, HF3592, HF3575, HF3574, HF3543, HF4606, HF4489, HF3891, HF3438, HF3811, HF3400

Keywords: capital investment, water infrastructure, sewer systems, public funding, municipal development, Eveleth, wastewater treatment, state bonds, environmental compliance, infrastructure, bonds, economic development, local government, transportation, intersection improvements, Lake Elmo, HF4599, St. Joseph, Minnesota bonding bill, bond proceeds fund

Transcript Highlights:

• There's no silver bullet.
• There's<01:04:01.360> no<01:04:01.520> silver<01:04:01.880> bullet.
• We<01:04:02.640> have<01:04:02.840> to<01:04:02.920> do There's no silver bullet
• We have to do There's no silver bullet.

Bills: HB1984, HB1593, HB2423, HB1691, HB2283, HB2386, HB1824, HB1697, HB2164, HB2165

Keywords: renewable energy, solar energy, self-certification, building permits, environmental regulations, HB1593, affordable housing, pet-inclusive housing, pet friendly housing, rental housing, affordable rental housing, HHFDC, Hawaii Housing Finance and Development Corporation, tenant pets, companion animals, dogs, cats, landlord-tenant law, security deposit, pet deposit

Summary: The committee heard testimony on HB 1984 HD2, which would require government entities issuing building permits to create a self-certification process for certain behind-the-meter rooftop solar and energy storage systems, allowing approved applicants to proceed without waiting for standard permit review. The Public Utilities Commission and DLNR offered comments, and the Hawaii Solar Energy Association, Holoholo Energy, Photon Works Engineering, Malama Solar, RevoluSun, and others testified in strong support. Supporters said the bill would reduce permitting delays, lower costs, and help meet Hawaii’s renewable energy goals while still relying on licensed engineers, electricians, and county inspections for safety. Committee members asked about risk, existing county pilot programs, and whether self-certification had been used before; witnesses said the professional liability remains with licensed signers and that current automated review systems often flag minor issues that slow projects. The committee also noted 16 additional written testimonies in support. The committee then took up HB 1593 HD1, which would require HHFDC-financed affordable rental housing projects to allow residents to own or keep common household pets. The Hawaiian Humane Society testified that the bill is a top priority because housing restrictions are a major reason pets are surrendered and because many unhoused residents with pets avoid housing that does not allow animals. In response to questions, the Humane Society said concerns about pet-related damage are overstated, suggested pet behavior screening as a safeguard, and said it would be willing to work on broader private-market pet-friendly housing policies. Members raised concerns about whether allowing pets in public housing could create problems for residents who later transition to the private market, and the witness said California has a similar law and no major negative effects had been identified. Finally, the committee heard HB 2423 HD2, which would require that by January 1, 2028, diesel fuel sold in Hawaii for on-highway vehicles contain at least 5% biodiesel by volume. The Hawaii State Energy Office offered comments, and Hawaii Transportation Association and Pacific Biodiesel Technologies testified in support. Pacific Biodiesel argued the mandate would improve energy security, stabilize fuel prices amid global supply disruptions, and support local clean-fuel production. In response to questions, the company said its nameplate capacity is 5.5 million gallons per year and it has produced over 6 million gallons annually, but much of its output is tied up in standby generator contracts that can fluctuate. Witnesses said the mandate would provide a stable market signal and could support future investment in expanded local biodiesel production, including agricultural feedstock development and a possible second refinery. No votes or final actions were taken during the portion of the meeting provided.

Transcript Highlights:

• He said there really was no magic bullet for the housing issue.
• really<01:11:59.840> was<01:12:00.080> no<01:12:00.400> magic<01:12:00.960> bullet
• ><01:12:01.440> to<01:12:01.760> help<01:12:01.920> with really was no magic bullet
• to help with really was no magic bullet to help with the<01:12:02.320> housing<01:12:02.640><

Keywords: 1187, senate, all

Transcript Highlights:

• It should say four total applications on the second bullet point, not four other.
• applications on should say four total applications on the<01:23:07.840> second<01:23:08.000> bullet
• the second bullet point not four other. the second bullet point not four other.

Keywords: 1183, house

Transcript Highlights:

• Uh, I will say this, I have a couple of things that I'd like to do, and I'm just going to go by bullet
• just going<00:37:39.520> to<00:37:39.600> go<00:37:39.720> by<00:37:39.880> bullet
• points<00:37:40.440> so<00:37:40.520> I<00:37:40.560> stay going to go by bullet
• points so I stay going to go by bullet points so I stay on<00:37:40.920> track.

Bills: SB2041

Keywords: land court, real property, legal documents, bureau of conveyances, judicial confirmation, property registration, working group, Hawaii Revised Statutes, reform, 912, senate, all

Summary: The committees heard SB 2041, which would repeal the Land Court, transfer its functions to the Bureau of Conveyances, and create a working group to recommend implementation. DLNR and Judiciary stood on their written testimony, while Realtors supported the bill and one testifier raised concerns about the loss of judicial authority, title disputes, adverse possession, and possible effects on Kuleana lands. Members questioned whether property could be deregistered and what the legal consequences would be, and the Bureau of Conveyances said deregistration is already available but burdensome. The committees ultimately recommended passage with amendments, and the measure was adopted by both committees. The Judiciary Committee then heard SB 2247, which restricts certain governor-appointed, Senate-confirmed executive branch employees from participating in campaign fundraising. The State Ethics Commission and Campaign Spending Commission supported the bill as a way to curb pay-to-play concerns and the appearance of undue influence, and several advocacy and civic groups also testified in support, with one person opposing. The committee agreed to amend the bill so the restrictions apply only after confirmation and continue until the person leaves the covered position. The committee voted to pass SB 2247 with amendments. Finally, the Judiciary Committee heard SB 2143, which would make the Attorney General the interim Chief Election Officer if that office becomes vacant until the Elections Commission appoints a replacement. Supporters argued the bill would provide continuity, prevent delays in certifying election results, and protect election integrity; opponents argued it would politicize the office, create a conflict of interest, and was unnecessary because current law already provides a process for filling vacancies. Testimony was extensive and sharply divided, with many speakers on both sides. The transcript provided does not include a final vote or action on SB 2143.

Transcript Highlights:

• Um, I see the first bullet in your overview of PERS says we rank 71st by assets among the thousand largest
• /c><00:14:38.560> the<00:14:38.720> the<00:14:39.120> first<00:14:39.440> bullet
• <00:14:39.760> in<00:14:40.079> your >> Um I see the the first bullet in your
• >> Um I see the the first bullet in your overview<00:14:40.720> of<00:14:40.880> PERS

Keywords: Finance - Room 216, 20 January, 2026; 10:30 AM, 925, all

Summary: The committee heard an update from PERS Executive Director Higgins, who reported that the system has about $38 billion in assets, earned roughly 11.7% last fiscal year, and is about 57% funded. He thanked lawmakers for a newly passed $1 billion funding bill and emphasized that funding the existing system remains the top priority. Higgins also noted that the board’s actuarially recommended contribution is about 26% of payroll, while the system is currently receiving about 18.4%, and said PERS will return later in session with a few requested bills. Higgins addressed several policy topics under discussion this session, including return-to-work rules, first responders, and Tier 5. He said return-to-work changes are possible if the law is changed and funding implications are addressed. For first responders, he said any special treatment should be done within PERS rather than by creating a separate system, with the affected group and parameters clearly defined and fully funded. He also said the new Tier 5 hybrid plan is being implemented on track for March 1 and is projected to improve the system’s long-term financial position by reducing future liabilities and helping pay down the unfunded liability. Members then questioned Higgins about the system’s funding policy, the 30-year closed amortization period used in the ADC calculation, and whether that approach should be revisited in light of recent funding actions and changes in assumptions. Higgins said the board reviews the policy annually, that the closed amortization approach was chosen to better pay down the unfunded liability, and that the annual valuation and experience studies already incorporate recent funding changes, Tier 5, and the phased employer-rate increases. He acknowledged that a significant new infusion of funding could justify reviewing the amortization period, but cautioned against changing it too often because it could undermine progress toward paying down the unfunded liability.

Transcript Highlights:

• And there's a few bullets there. Uh, we wanted to highlight these key areas.
• /c><00:39:49.520> there's<00:39:49.760> a<00:39:49.920> few<00:39:50.000> bullets
• there's there's a there's a few bullets there's there's a there's a few bullets there.<00:39:50.640

Keywords: 928, house, all

Summary: The committee first approved the draft minutes from September 26. Senator Gray then raised the idea of creating a continuing subcommittee or recurring agenda item on palliative care and hospice, noting that the issues are evolving and suggesting the committee revisit the idea in coming months. The bulk of the meeting focused on Department of Health and Human Services updates. Officials described contingency planning for SNAP amid the federal shutdown, including a USDA notice that November benefits may not be fully funded, letters to participants warning of possible delays, and coordination with the New Hampshire Food Bank and local pantries. They said New Hampshire serves about 42,000 SNAP households, with average benefits around $300 a month, and that the department is also preparing to transfer funds for a special fiscal committee meeting. WIC was discussed separately: officials said WIC benefits had been extended through November 7 using additional USDA funds, but that some community agency-based WIC services may need to pause while money is redirected to food benefits. Officials also outlined New Hampshire’s rural health transformation grant application under the federal One Big Beautiful Bill, describing a potential five-year, up-to-$1 billion opportunity focused on critical access hospitals, small rural hospitals, federally qualified health centers, community mental health centers, and EMS. Members asked about transportation, workforce, and nursing retention; officials said transportation is included in the proposal, housing is not, and workforce supports may include lower tuition or awards but not loan repayment or traditional scholarships. They also said the final application would be submitted in early November and that priorities would be adjusted depending on the eventual federal award. Finally, Medicaid director Henry Lipman gave a quarterly postpartum coverage update. He said postpartum coverage is now nearly universal nationwide, and in New Hampshire 2,351 women had used the benefit through May 2025. He reported that mental health services were the most frequently used postpartum service, followed by preventive care, substance use disorder treatment, and cardiovascular-related care, and noted that Medicaid women have experienced a disproportionate share of maternal deaths. Committee members asked about rural distribution and the share of women receiving mental health services, and Lipman said the department would follow up with additional data. The meeting then moved into the annual update on New Hampshire’s 10-year mental health plan, with staff describing progress toward a more integrated continuum of care and improved data infrastructure.

Transcript Highlights:

• I think I'll just quickly address the bottom bullet on the slide there, and that is the agency operating
• address<01:20:58.159> the<01:20:59.080> uh<01:20:59.239> bottom<01:20:59.560> bullet
• <01:20:59.880> on<01:21:00.040> the address the uh bottom bullet on the address the
• uh bottom bullet on the slide<01:21:00.560> there<01:21:01.560> and<01:21:01.719> that

Keywords: 1183, house

Transcript Highlights:

• There are no silver bullets, but this program should help our folks back home to have a more positive
• 04:45.240> silver approach gets at there are no silver approach gets at there are no silver bullets
• 46.320> program<00:04:46.639> should<00:04:46.880> help<00:04:47.080> our bullets
• but this program should help our bullets but this program should help our folks<00:04:47.600> back

Keywords: 1187, senate, all

Transcript Highlights:

• husband was also a firearm safety instructor, and, to the point made earlier, knowing where your bullet
• knowing<00:35:17.839> what<00:35:18.079> where<00:35:18.240> your<00:35:18.440> bullet
• <00:35:18.800> is<00:35:18.960> going knowing what where your bullet is going knowing
• what where your bullet is going that<00:35:19.400> is<00:35:19.520> certainly<00:35:20.480

Keywords: 1183, house

Transcript Highlights:

• There's not one silver bullet that's going to fix this.
• 01.480> Silver single angle there's not one S Silver single angle there's not one S Silver Bullet
• :13:02.600> fix<01:13:02.960> this<01:13:03.400> and<01:13:03.600> so Bullet
• that's going to fix this and so Bullet that's going to fix this and so um<01:13:04.719> I<01:

Keywords: 1183, house

Transcript Highlights:

• called me in and said, “If you hear a firecracker, run over to the mailbox,” because that might stop a bullet
• <01:15:32.320> might<01:15:32.520> stop<01:15:32.760> a<01:15:33.000> bullet
• <01:15:34.000> that's because that might stop a bullet that's because that might stop a bullet

Bills: HF747, HF360

Keywords: corporate governance, shareholder rights, beneficial ownership, defective corporate acts, Minnesota Business Corporation Act, trusts, Uniform Trust Code, probate, estate planning, trust protector, directed trust, investment trust advisor, distribution trust advisor, excluded fiduciary, decanting, power of appointment, revocable trust, irrevocable trust, uneconomic trust, rule against perpetuities

Transcript Highlights:

• We have a bullet: be watchful of further broadening the tax base.
• uh<00:36:30.079> we<00:36:30.240> have<00:36:30.359> a<00:36:30.560> bullet
• <00:36:30.920> Be thoughts here uh we have a bullet Be thoughts here uh we have a bullet Be

Keywords: 1183, house

Transcript Highlights:

• That's just a high-level bullet point, but of some of the things that we are interested in putting into
• just<01:17:01.920> a<01:17:02.719> high<01:17:03.000> level<01:17:03.199> bullet
• /c><01:17:03.560> point<01:17:03.880> but<01:17:04.040> of just a high level bullet
• point but of just a high level bullet point but of some<01:17:04.360> of<01:17:04.440> the

Keywords: 1183, house

Summary: The Education Policy Committee met to hear a delayed presentation from the Office of the Legislative Auditor on MDE’s oversight of Feeding Our Future, a report released in June 2024. The chair framed the hearing as an oversight review of how the Minnesota Department of Education handled the nonprofit’s participation in the Child and Adult Care Food Program and the Summer Food Service Program, emphasizing that the hearing was not about criminal charges against agency staff. Legislative Auditor Judy Randall and Director of Special Reviews Katherine Tyson explained that their review focused on state oversight, not the underlying federal fraud case, which involved an alleged $250 million scheme and ongoing criminal proceedings. The auditors concluded that MDE’s oversight was inadequate and created opportunities for fraud. They said MDE failed to act on warning signs before the pandemic, did not effectively use its authority to hold Feeding Our Future accountable, and was ill prepared to respond to problems. Examples included approving applications despite concerns about internal controls and staffing, failing to follow up on earlier review findings, not adequately investigating at least 30 complaints, and in one case referring a complaint back to Feeding Our Future for resolution rather than conducting an independent investigation. They also said MDE deferred serious deficiencies without enough evidence that problems had been fully corrected and approved meal claims despite records showing major inconsistencies. Tyson said MDE had made progress on all eight recommendations in the report, though one recommendation to the legislature had not yet been addressed because the session had not convened since the report’s release. The auditors recommended that the legislature establish clearer statutory criteria or give MDE rulemaking authority for sponsor applications, and that MDE strengthen verification of sponsor information, focus more on high-risk sponsors, improve complaint procedures, and emphasize program integrity if waivers reduce oversight in the future. In response to member questions, the auditors said MDE’s reported progress was partial in some areas and that further review would be needed to fully confirm implementation. No votes or formal committee actions were taken during the hearing.