Transcript Highlights:

• The department has contracts with 15 individual agencies who hold 18 contracts.
• A $20,000 penalty for the first noncompliance and $30,000 for each subsequent violation if a contract
• part of routine contract monitoring.
• Previously, some lead agencies with multiple contracts could exceed this cap by charging each contract
• So let me first start with that.

Summary: The Human Services Subcommittee held its first meeting of the term and heard introductory remarks from the chair, vice chair, ranking member, and members, who broadly described their interest in child welfare, mental health, aging services, homelessness, and agency accountability. The chair then outlined the subcommittee’s jurisdiction, including child welfare, mental health and substance abuse safety net services, domestic violence, developmental disabilities, elder services, and child support, and introduced the Department of Children and Families (DCF) as the first agency panel for the term. DCF presented an implementation update on HB 7089, a 2024 law aimed at increasing accountability and transparency for community-based care (CBC) lead agencies that deliver most child welfare services under contract. The department said the bill was prompted by forensic examinations that found problems such as noncompetitive procurement, related-party transactions, excessive executive compensation, and weak financial oversight. DCF described new contract requirements and monitoring tools covering board governance and annual training, conflict-of-interest disclosures, financial penalties for noncompliance, fidelity bond requirements, limits on direct service provision by lead agencies, related-party procurement rules, procurement thresholds, real-property approvals, compensation caps, expanded public reporting, and a new Future of Child Protection and Funding Work Group. DCF reported that some lead agencies had completed required board training, others were still on schedule, and two agencies exceeding the direct-service threshold had been referred to the Auditor General. Members asked DCF about the reasons for the bill, the impact on children, the work group’s regional representation, aging-out youth, the Embrace Families transition, board training requirements, and whether enforcement actions had been taken. DCF said the bill was intended to protect funds for children and families and improve oversight, and clarified that the Central Florida lead agency contract was awarded through competitive procurement rather than an absorption. DCF also said the board training was designed to be meaningful but not overly burdensome, with timing left partly to lead agencies as they implement the new requirements. The committee then heard from two CBC leaders, who generally supported the accountability goals of HB 7089 and said their agencies had already addressed most of the new governance and disclosure requirements. They reported that board training had been completed or was being scheduled, but both agencies said the fidelity bond requirement has been difficult or impossible to obtain in the market as written, though they were able to secure the separate performance bond. The CBC witnesses also warned that recruiting providers is increasingly difficult, especially for higher-acuity children and group-home placements, due to limited provider supply, regulatory burden, insurance costs, and rising risk. They said these pressures are contributing to budget deficits in some areas and urged lawmakers to consider the funding model, insurance and indemnification issues, and the risk of overregulation reducing provider participation.

Transcript Highlights:

• It will depend on the contract.
• Let's focus on the contracts.
• So the type A contracts are called life care contracts.
• So you need to look at the contract to figure out, first of all, is it refundable or is it repayable
• It depends on the contract.

Summary: The commission’s fifth meeting focused on consumer protections and resident rights in continuing care retirement communities (CCRCs), with a presentation by Yvonne Choyah of UC Law San Francisco. She described California’s CCRC framework, including entrance fee structures, monthly fee increases, contract types (A, B, and C), disclosure requirements, and regulatory oversight. A major theme was that residents often do not understand the contracts they sign, while providers retain broad discretion over fees, transfers, terminations, and changes to the physical plant. She also emphasized that California’s regulator is understaffed and not well suited to oversee the complex financial and insurance-like aspects of CCRCs, and that resident complaints and litigation can be slow and difficult. Choyah and commission members discussed several consumer-protection issues, including refundable versus repayable-on-resale entrance fees, rising monthly care fees, the decline of life care contracts, and the need for clearer disclosures and better comparative data for prospective residents. She noted that California requires annual disclosure statements, resident bill of rights materials, and some fee-related reporting, but that enforcement and accessibility remain weak. Members raised questions about resident board representation, accreditation, refund requirements, and whether state agencies or resident associations could help explain contracts to consumers before admission. Choyah suggested stronger oversight, more financial expertise in regulation, and better transparency about ownership and fee-setting. The meeting ended with discussion of the commission’s next steps toward its August report. Staff said a draft report would be prepared from the commission’s discussions and circulated for comment before final revisions. The chair also announced staff transitions: Jennifer would be leaving the State House role, and Juliana Fernandez and Vicky Halal would be the main contacts going forward. The commission adjourned after thanking Choyah for her presentation and answering member questions.

Transcript Highlights:

• on when they terminated their contracts, and also whether their contracts were capped or not.
• So the triangles were the contracts without caps.
• They finished contracts during... ...because these homeowners finished their contracts early.
• They finished contracts during a period of high home appreciation, and they entered contracts that did
• The companies are saying that they are a contract.

Summary: The committee first held a work session on cryptocurrency kiosks, with the Department of Financial Institutions and Spokane City Council describing how virtual currency kiosks operate, where they are located in Washington, and the rapid growth in transaction volume. DFI said the machines are being used heavily in scams, especially against older and vulnerable consumers, and cited FBI fraud data showing substantial losses. DFI outlined possible consumer protections in pending legislation, including stronger disclosures, a $1,000 daily transaction limit, and a fee cap. Spokane City Council described its unanimous ordinance banning new kiosks and requiring removal of existing ones, citing local scam reports and the difficulty of recovering funds once they are sent through crypto wallets. Committee members asked about how the machines are used, whether the hardware itself is vulnerable, and whether stronger warnings or screening requirements could help. The committee then reviewed home equity sharing agreements, or CHISAs/HESAs, following a legislative report. The report’s author said these products provide homeowners a lump sum in exchange for a share of future home value or appreciation, with no monthly payments, but can be difficult for consumers to understand and can produce highly variable settlement costs. The report found the market has grown quickly in Washington, that many consumers using the products had financial hardship, and that many did not fully understand how settlement amounts were calculated. DFI said it views the products as mortgage-like and is moving forward with rulemaking, including counseling and clearer disclosures. Industry representatives said the products are equity-based rather than debt-based, support access to home equity for people who may not qualify for traditional loans, and said they are working with DFI on standardized disclosures, counseling, and annual settlement estimates. Senators raised concerns about consumer understanding, cost caps, and whether the products should be treated as mortgages under state law. In the final work session, the committee heard an overview of Washington’s space economy from Amazon Leo, Blue Origin, Stoke Space, Space Northwest, and Green River College. Speakers highlighted major investments in Washington facilities, manufacturing, testing, and workforce training, and described the state as a hub for aerospace and satellite activity. They emphasized job creation, supply-chain spending, and education partnerships, including technician certification and apprenticeship-style programs. Several speakers urged the legislature to expand tax incentives to include space companies, support grants and workforce programs, and consider a state space commission or similar long-term coordination effort. The committee thanked the presenters and noted time constraints before ending the hearing.

Transcript Highlights:

• Contract dollars through their statewide contract are obligated to report this data.
• So our first three contracts in the pilot sense were janitorial, paper goods, office supplies, and then
• First three contracts in the pilot sense were janitorial, paper goods, office supplies, and then a, I
• So when all these statewide contracts end and renew, any time that's renewing, any contract sent...
• Contracts end and renew.

Summary: The Massachusetts Permanent Commission on the Status of Persons with Disabilities met virtually and in person for its June meeting. Members approved the March meeting minutes and heard a chair’s report on recent “Meeting the Moment” community conversations, including the successful Lowell event and plans for a July 14 Northampton event and an October National Disability Employment Awareness Month celebration at the State House. The October event will include a panel with MassAbility on artificial intelligence and its impacts on people with disabilities, with discussion of both accessibility benefits and risks such as bias and discrimination. A major presentation came from the Supplier Diversity Office on its Empowering Abilities in Contracting and Employment (EAC) program. Staff described the program’s evolution from a pilot launched after 2016 legislation to a statewide policy now included in new state contracts. The program aims to increase certification of disability-owned and service-disabled veteran-owned businesses, expand workforce participation by people with disabilities, and use vendor reporting to track progress toward a 3% workforce goal. The office reported about 292 active certified businesses, roughly 40 vendors currently on EAC contracts, and expectations that the number of participating vendors will grow to about 130 by November. Commissioners praised the program and asked about its reach, data, and potential replication in other states or institutions. The advisory council update highlighted broad engagement across topics including accessibility, employment, youth transition, housing, health equity, transportation, technology, AI, and supported decision-making. Members were asked to share fact sheets and resources for posting on the commission website, and two council members will help plan the October employment event. Subcommittee reports followed: the employment subcommittee reviewed transition-to-employment barriers, the disability employment tax credit, veteran services, and a SEED policy brief; the workforce supports subcommittee discussed apprenticeships and a May webinar on addressing workforce barriers through apprenticeships; and the long-term services and supports/health equity subcommittee heard about care coordination training resources and a presentation on post-COVID health care inequities for people with disabilities. The executive director also reported on ongoing work with state agencies, MassHealth-related conversations, caregiver and aging issues, and AI planning. The meeting ended with commissioner announcements on the Paul Spooner Generational Leadership Summit and a Medicaid summit, followed by adjournment by vote.

Transcript Highlights:

• ><c> Contracting</c><01:13:15.920><c> there's</c> familiar with Contracting there's familiar with Contracting
• Is it Medicaid contracts?
• contracts.
• </c><01:43:23.119><c> cont</c> contract not be allowed to contract cont contract not be allowed to contract
• Thank you. contract further questions who was first contract further questions who was first here<01:

Summary: The Finance Committee held a hearing on House Bill 619, which would appropriate $1 million to the Solid Waste Management Fund for matching grants to municipalities and businesses for waste diversion projects, with 50% of the money prioritized for food waste diversion. Representative Karen Ebel, the sponsor, said the fund would help New Hampshire meet its solid waste diversion goals, preserve landfill capacity, and support composting, recycling, and related local business activity. She cited New London’s composting program as an example, saying 172 families participated and 32 tons of food waste were diverted in 2024, reducing tipping and trucking costs. Committee members asked about possible alternative funding sources, including a surcharge on landfill tipping fees. Ebel said many other states use such surcharges to fund recycling and solid waste programs, while New Hampshire relies on general funds. She also said the current fund balance was about $900,000 because some money had been used for staffing, and that the grant program was still in rulemaking. Questions also focused on how household composting works and whether municipalities could generate revenue from compost; Ebel said participation is optional, most programs use buckets and transfer stations, and the main benefit is cost savings from reduced disposal rather than compost sales. Testimony in support came from the New Hampshire Municipal Association and the Northeast Resource Recovery Association. Both said municipalities are interested in food waste diversion and composting, that these programs can reduce long-term disposal costs and property tax pressure, and that there is growing demand for technical assistance and grant support. The Northeast Resource Recovery Association said food waste makes up about 24% of municipal and business waste, that fewer than two dozen communities and fewer than two dozen businesses currently offer such services, and that a City of Lebanon pilot program saw about 30% savings by composting on site. The Department of Environmental Services said it was not taking a position but is working on rulemaking for the grant program and expects strong interest from municipalities, private composters, farmers, and anaerobic digester operators. No vote or final action was taken at the hearing.

Transcript Highlights:

• So that’s the grants and contracts.
• So start with education first and then go to everybody.
• The contract allowance clause, right, which incorporates standard flexibility allowances into contracts
• So you said the 88% of the contracts are late.
• In order to receive a contract and secure a contract with our city or with our state, there is an arduous

Summary: The joint Senate and Assembly Select Committee on the nonprofit sector held a hearing focused on the importance of California’s nonprofit sector and how state systems can better support it. Chair and co-chair remarks emphasized that nonprofits are essential to the state’s economy and public services, especially as federal cuts and administrative burdens increase pressure on organizations that deliver health care, food assistance, homelessness services, disaster response, and other safety-net functions. CalNonprofits CEO Jeff Green described the sector’s size and complexity, citing roughly 110,000 nonprofits in California, about 1.4 to 1.5 million nonprofit workers, and major concerns about funding uncertainty, delayed reimbursements, and federal threats to nonprofit funding and nonpartisanship. He said many organizations are being forced to use reserves, reduce services, or take out loans while waiting for state payments. The Little Hoover Commission presented findings from its study of state grant and contract administration, arguing that nonprofits often subsidize state services because of late payments, insufficient advance funding, and inadequate reimbursement for overhead. The commission recommended requiring advance payments, expanding prompt-payment protections, matching federal indirect-cost rates, standardizing emergency contract amendments, creating an Office of Nonprofit Empowerment, reducing duplicative reporting, moving to electronic payments, improving feedback to unsuccessful applicants, and using longer grant periods. Committee members expressed support for these ideas and discussed shifting state contracting culture toward outcomes and better coordination. The commission also noted that SB 1240, which would create the Office of Nonprofit Empowerment, and SB 1366, related to payment delays, align with its recommendations. The Attorney General’s Charitable Trusts Section then outlined its rollout of a new online filing system for charities and charitable fundraisers. Elizabeth Kim said the system, launched in stages beginning in 2024, is intended to replace paper filings, reduce incomplete submissions and bounced checks, and speed processing; the final phase is expected to cover renewals, delinquency, raffles, professional fundraisers, dissolution, and complaints. Committee members asked about staffing impacts and complaint handling, and DOJ explained that complaints are reviewed based on allegations, public filings, and, when needed, requests for additional information. A final panel featured Matt Gonzalez of Nonprofit New York, who described New York City’s Mayor’s Office of Nonprofit Services as a model for reducing contract backlogs, increasing advance payments, and improving coordination through ombudsman-style support and chief nonprofit officers. Public commenters from the California Alliance of Child and Family Services, SEIU, and CalNonprofits urged support for stronger state-nonprofit partnerships, transparency, and modernization of contracting systems. No formal vote was taken; the hearing concluded after testimony and public comment.

Transcript Highlights:

• The first is the executive orders.
• The first is the executive orders.
• So that's the grants and contracts.
• The contract allowance clause incorporates standard flexibility allowances into contracts to execute
• from 430 to 812 contracts.

Transcript Highlights:

• To discussion first on this smaller adjustment to the... ...to discussion first on this smaller adjustment
• And so the contract year starts...
• contract they've been offered, correct?
• And so I guess the first person...
• I get this usually as my first question.

Committee: House Elementary and Secondary Education

Summary: The Committee on Elementary and Secondary Education met in executive session and first took up House Concurrent Resolution 31. A committee substitute was adopted after the sponsor explained revisions to the proposed civics and patriotism work group, including clearer qualifications, DESE’s role in producing seals, recognition levels for gold/silver/bronze, and a special recognition letter for students entering military service. Ranking member Steinhoff supported the substitute, saying the changes improved implementation and likely reduced fiscal impact. The substitute was then passed do pass, and the committee later corrected the recorded vote on HCR 31 from 15-0 to 16-0. The committee then considered a combined substitute for House Bills 21, 26, and 2197, focused on building-level administrator evaluations and nonrenewal procedures. The substitute required administrators to be evaluated at least once per contract year, required written notice of renewal or nonrenewal by March 1, and gave nonrenewed administrators the right to request written reasons and a closed-door hearing before the school board. Members discussed the removal of earlier language that would have created automatic renewal if deadlines were missed and the decision not to create tenure for principals. Concerns were raised about whether the hearing right gave administrators more protection than other employees, but sponsors said the intent was to ensure annual evaluations and transparency without granting tenure. The committee adopted an amendment, rolled it into a new substitute, and passed the substitute do pass by a 17-0 vote. After leaving executive session, the committee heard House Bill 3489 from Representative Hurlbert. The bill, patterned after Arkansas legislation, would expand access to workforce development assessments such as WorkKeys and allow up to nine hours of college credit for demonstrated workplace skills as recommended by the American Council on Education. Testimony from ACT, the Missouri Chamber, and DESE supported the goal of elevating career readiness, noting employer demand for skilled workers, existing use of WorkKeys in Missouri, and its role in career and technical education and accountability systems. Members asked about the bill’s relationship to the governor’s workforce executive order, whether the language should be mandatory or permissive, and how the credits would transfer. The hearing on HB 3489 concluded without a vote, and the committee adjourned.

Transcript Highlights:

• c> first</c><00:00:55.480><c> item</c><00:00:55.680><c> on</c> one okay uh first item uh first item on
• The witness offered to explain that the increase was due to this contract when they first started it
• </c><00:12:46.480><c> when</c><00:12:46.639><c> we</c><00:12:46.839><c> first</c> was due to this contract
• when we first was due to this contract when we first started<00:12:47.920><c> it</c><00:12:48.079><c
• that's a contract separate contract that's a contract directly<00:21:11.120><c> with</c><00:21:11.760

Summary: Chairman Hart called the meeting to order, confirmed a quorum, welcomed Representative Rachel Roarx, and the committee approved the February 11 minutes. The committee then moved through its agenda of PSC and related contract items, including a motion to consider the reviewed contracts without objection. One Department of Highways item was deferred when the virtual representatives were not yet available. The committee first took up Kentucky Housing Corporation contracts. Members questioned outside legal services for foreclosures and bankruptcies, why the work was not handled entirely in-house, and how much of the workload and cost it represented. Witnesses said the agency’s need was largely geographic rather than a lack of expertise, that less than 1% of the loan portfolio is referred out for foreclosures, and that many fees are reimbursable through FHA. Both Kentucky Housing Corporation items were approved. The committee then considered a Department for Community Based Services contract tied to a protest and a temporary renewal with PCG. Witnesses said the contract increase was needed to bridge the gap while the protest and RFP process were unresolved, and that the initial vendor received no funds. The committee approved the item, with Senator Douglas explaining his vote as a preference for straightforward answers. The committee also heard a Northern Kentucky University contract for a Workday ERP replacement, including implementation consulting and separate license fees. University officials explained the move from SAP to Workday, the complexity of the systems, and the need for a consulting partner; they said the total effort would span 10 years and that the contract was priced below comparable institutions. After extensive questioning about cost, budget, and value, the vote ended 4-4 and the chair noted the contract would move forward through the Finance Committee if no disapproval motion was made. Finally, the Office of Inspector General presented a contract for culture change training in nursing facilities funded by civil monetary penalties; witnesses said the goal was to improve staff satisfaction, communication, and resident outcomes, and that the CMP fund balance was about $38 million. Discussion also covered survey backlogs and CMS restrictions on the funds, with the item still under review as the transcript ended.

Transcript Highlights:

• So they're not in contract. But they can't get the contract yet until they're ready, right? Yes.
• On the public contract code exemption, how many contracts will be exempt?
• Yeah, it would apply to existing contracts as well as any future contracts.
• So when we go out to contract for those types, we go out to contract as a services vendor.
• So when we go out to contract for those types, we go out to contract as a services vendor.

Transcript Highlights:

• So we are through their first three years of the contracted period.
• So we are through their first three years of the contracted period, and we're asking JLCB, which is in
• And this contract ends in June.
• The first contract was for $910,000, and that included the build-out cost.
• The first contract was for $910,000, and that included the build-up cost. for $910,000, and that included

Summary: The committee first adopted the fiscal status statement and five-year baseline summary after a brief discussion about how the baseline percentages are calculated and why projected expenditures exceed revenues in later years, with staff explaining that inflation assumptions drive much of the increase. The Office of Facility Planning and Control then received approval for several items: adding eight higher education deferred maintenance projects, approving a $412,993 change order for LSU’s Jesse Coates Building project, reporting four smaller change orders for information, and combining two Hornbeck water projects into one expanded water plant/well and distribution plan. The committee also approved a two-year extension for UL Lafayette’s Banner ERP consulting contract and approved additional Water Sector Commission funding of $5.5 million for the Tensas Water District Association, with a $100,000 local commitment noted. The most extensive discussion centered on a proposed tax increment financing package for a new 1,000-room Omni headquarters hotel adjacent to the New Orleans Convention Center. Project representatives said the hotel would require about $550 million in private investment, with the authority contributing land and $80 million, and that the package would dedicate state and local tax increments for 45 years after opening. Senators and representatives questioned the structure, the length of the incentive, the expected return to the state, possible cannibalization of existing hotel tax revenue, and why the convention center would receive a 1% stream for so long. Several members said they wanted more information on projected annual revenues and the overall return before voting, and the committee deferred the item to the next month. Later, Louisiana Economic Development requested one-year extensions for two marketing-related contracts with Zender Communications and Graham Group, and the Department of Education sought an amendment to the Odyssey contract for the Louisiana Gator program. The education discussion focused on the per-student cost of $143.50, the use of current enrollment and appropriation levels to set the contract ceiling, the fact that startup costs were no longer included, and the need for continuity before the current contract expires June 30. Members asked for an RFP to be considered for future years and for more information on student outcomes and actual spending. The committee took no vote on the education item during the discussion, and the meeting adjourned after the final exchanges.

Transcript Highlights:

• </c> contract list, personal service contract contract list, personal service contract amendment<00:02
• Uh, first one was: did this contract go through the typical procurement process and competitively bid
• . contract. contract.
• We're going to look at contract 202 first and I have a question on that or a couple.
• </c> the contract? the contract?

Summary: The committee first approved the May 12 minutes, then deferred item 285 on the routine personal service contract green list for Western Kentucky University to the July 2026 meeting. It also noted that several deferred university contracts had been withdrawn by the institutions, and then approved the remaining agenda items without objection, including personal service contracts, amendments, memoranda of agreement, Kentucky Entertainment incentive agreements, deferred items, and corrections, except for items pulled for further review. The main pulled item was a Kentucky Administrative Office of the Courts contract supporting Fayette District Court’s juvenile treatment court through Fayette County Public Schools. Court officials explained that the program, created under Supreme Court rules in 2022, serves court-connected juveniles with mental health and related needs, operates at the courthouse, and uses a school-employed program manager funded through a pass-through arrangement with Fayette County Public Schools and the Urban County Government. They said the program has had over 100 referrals, accepted about half, and had at least 25 successful graduates, with 11 high school graduates among participants. Members asked about who pays for drug screens, family involvement, and what counts as successful completion; the officials said the Urban County Government’s Division of Youth Services pays for drug screens and services, and that parents must participate in classes and support services. The committee then approved the contract review, with some members explaining their votes in support and one member emphasizing the committee’s role in reviewing contracts in the public interest. The committee also reviewed two Auditor of Public Accounts contracts. The auditor’s representative said contract 11, with Vantage Point Solutions, will examine the Kentucky Communications Network Authority/Kentucky Wired network for $700,000, well below the $1.5 million appropriated, and that a report is expected before the 2027 regular session. Contract 12 funds a special examination of investment managers used by Kentucky’s retirement systems, prompted by a Legislative Oversight and Investigations request to assess whether investments tied to ESG factors are consistent with fiduciary duties; the representative said the retirement systems have been cooperative and that findings are expected on a similar timeline, with some flexibility built into the deadline. After questions about the Texas litigation referenced in the explanation, the committee approved both auditor contracts without objection.

Transcript Highlights:

• of contract pharmacies.
• pharmacy; they can contract that out to a third-party retail pharmacy, and these are called contract
• But today I'm speaking in AHF's capacity as a contract pharmacy to try to put a human face on contract
• First, federal courts have confirmed manufacturers may set reasonable conditions on contract pharmacies
• First, federal courts have confirmed manufacturers may set reasonable conditions on contract pharmacies

Summary: The committee first heard House Bill 2437, which would put the Department of Health’s authority to accredit opioid treatment programs into statute and allow the department to set a fee to cover the cost of those services. The prime sponsor and DOH said the bill would preserve a service that is especially important to tribal and rural providers and would be self-sustaining rather than supported by the general fund. Members asked about the relationship between DOH and HCA and whether the bill would duplicate existing authority; staff and the department said DOH already performs the accrediting role and the bill mainly formalizes that authority and fee-setting power. Public testimony on the bill was then closed. The committee then held an extensive work session on the federal 340B drug pricing program and later opened public testimony on House Bill 2145, which would prohibit manufacturers, distributors, and third-party logistics providers from restricting 340B drug acquisition or delivery and from requiring claims or utilization data as a condition of access. Committee staff and NCSL gave background on how 340B works, recent growth in the program, contract pharmacy issues, and state efforts in other jurisdictions. Testimony on HB 2145 was sharply divided: hospitals, community health centers, tribal representatives, contract pharmacies, and labor groups said the bill would protect safety-net providers, rural access, HIV and behavioral health services, and tribal programs from manufacturer restrictions; business groups, pharmaceutical companies, and employer coalitions argued the program has expanded beyond its original intent, lacks transparency, shifts costs to employers and taxpayers, and should be addressed through federal reform instead. No vote was taken in the excerpt. Finally, the committee heard House Bill 2155, which would bar non-human entities from using nursing titles such as RN, APRN, or LPN or otherwise implying they are licensed nurses. The prime sponsor said the bill is intended to protect patients from being misled by AI systems and to preserve transparency and public safety as health care technology expands. The Washington State Nurses Association testified in support, saying AI can be useful but should not replace nurses or be presented as a licensed professional. A member asked about enforcement and liability, and staff said they would follow up on those details.

Transcript Highlights:

• cannot change the contract.
• Currently, if you have a contract with the state, must source a specific contract provision in order
• in the first place.
• It's not a freedom of contract because there is no freedom of contract in this arena, particularly in
• This is the first step.

Bills: SB75 , SB715 , SB776 , SB1299 , SB1405 , SB1968 , SB2021 , SB2077 , SB2148 , SB2321 , SB2330 , SB2411

Committee: Senate Business & Commerce

Transcript Highlights:

• We have a contract.
• that</c> that it's a first come first serve that that it's a first come first serve that you're<00:23
• The first deliverable is a contract life cycle management policy, which is a huge undertaking to write
• </c><03:43:09.239><c> life</c> first deliverable is a contract life first deliverable is a contract life
• but</c> working on contract uh metrics first but working on contract uh metrics first but I<03:51:53.800

Summary: Finance Division 3 met for a work session on House Bill 519, which concerns funding for Waypoint. The chair noted general support for the organization but said the bill would likely need to be suspended and folded into the budget process because the committee did not yet know available revenues or what amount, if any, could be committed. Kya Fox, director of the Division for Behavioral Health, testified that the department supports the bill and the program, explaining that it had been funded with other available funds, including $100,000 for 2024 and $400,000 for 2025, under a contract running through June 30 of this year. She said the shelter serves a unique population of young adults and is part of the department’s children’s system of care and Mission Zero efforts to reduce barriers to psychiatric discharge and emergency department use. Members questioned Fox and Waypoint representatives about the budget placement of the request, the difference between the efficiency budget and prioritized needs, and whether state budget documents would show any internal Waypoint revenues. Fox said the request appears as a general fund item and that the state would not see Waypoint’s internal financial operations in the budget. A legislative member explained that prioritized needs are critical services already in place but not necessarily included in the efficiency budget, and another member said the distinction is not strictly applied. The committee also raised a separate question about how DHHS would handle any future state or federal restrictions on DEI practices; Fox said that was a question for department leadership and legal staff, but that the department follows state law and contract requirements. Waypoint CEO Bor Alvare and Director Mandy Lancaster then described the shelter and related services. They said the shelter serves ages 18 to 24, is a 14-bed open-room facility with half walls, and is staffed overnight by two full-time workers. They said admission is first come, first served, with some vulnerability factors considered, and that they do not discriminate by race, gender, or sexual orientation. They reported no known incidents of sexual violence, though some youth are turned away each night because the shelter is full. They also explained that Waypoint provides broader services beyond the shelter, including outreach, drop-in centers, housing support, rental assistance, and family mediation, and said they serve about 400 youth and young adults in Manchester alone. The discussion ended with questions about whether lowering the upper age limit would affect the program; Waypoint said most residents are already in the 18-to-23 range, but that housing shortages make the current age span important for helping young adults avoid chronic homelessness.

Transcript Highlights:

• In total, it takes approximately 12 months from contract award to receive the first delivery of fire
• Cal Fire currently has an OTA contract in place for 45 engines, and we expect the first fire engine to
• We're just saying from the time the contract is awarded to the first prototypes delivered, we're asking
• on these contracts.
• But we go out to a contract. It sounds like we did a contract for three years and another contract.

Committee: House Emergency Management

Transcript Highlights:

• Just for clarification, my question regarding contracts was not regarding the state having a contract
• Just for clarification, my question regarding contracts was not regarding the state having a contract
• with data centers, but a data center having a contract with some... state having a contract with data
• So if your contract has those terms in it of what you pay, then that contract no longer aligns with the
• So if your contract has those terms in it of what you pay, then that contract no longer aligns with the

Committee: House Finance

Transcript Highlights:

• It is a contract for website hosting.
• In the previous contract with the old ad agency, the website hosting was a part of that contract.
• So this was part—the website hosting was part of the original contract, but then when that contract went
• Our contract with them ended. It is a no-cost contract. They don't charge us any fees.
• Our contract with them ended. It is a no-cost contract.

Committee: All ALC-LOTTERY OVERSIGHT SUBCOMMITTEE

Summary: The meeting began with a review of the Arkansas Scholarship Lottery’s Miles Partnership contract for website hosting. Sharon Strong explained that the hosting function had been separated from the new advertising agency contract and put out for competitive bid because the amount was under the RFP threshold. Three companies bid, Miles Partnership was the lowest, and the one-year contract would cost up to $61,000, down from the previous $90,000 annual cost. The committee reviewed the contract without objection. Strong then gave the lottery director’s report for July, noting that instant game sales were down but draw game sales were up, resulting in a 3.7% decline in total revenue year over year. Operating expenses were lower, especially marketing and advertising, reflecting savings from the new contract, and net proceeds were 14.8% higher than the prior year and 7.4% above forecast. Fiscal 2026 ended with $114.3 million in net proceeds, the second-highest transfer in lottery history, and the lottery had already transferred $67 million to the Division of Higher Education for fiscal 2027. She also reported $1.1 million in reserves, $3,545 withheld for debt setoff, and a renegotiated Bank OZK arrangement expected to improve interest earnings. The Arkansas Division of Higher Education then presented scholarship reports. Assistant Commissioner Nick Fuller said 29,055 students received the Academic Challenge Scholarship in 2026, totaling $110 million, including 11,000 students who received Challenge Plus awards worth an additional $18 million. For first-time awardees, 12,708 students received $40 million, with 5,816 of them receiving Challenge Plus funding. He also reported that the Academic Challenge portion of the net proceeds trust account ended the year with a $4.4 million balance, and the Higher Education Grants Fund ended with a $5.3 million balance after spending $74.9 million in fiscal 2026. Representative Garner asked about the lower budget request for the next year, and Fuller said the main reason was that the Arkansas Future Grant had cost more than expected in 2026 due to higher-than-anticipated private school participation and related factors. ADHE also requested $667,346 in reimbursement for administering the scholarship programs, the lowest request in five years. The meeting concluded with no further business and adjournment.

Transcript Highlights:

• being in fact in place so the contract being in fact in place so the first<00:41:58.760><c> one</c><
• Chair: Okay, so we have a contract that completed, no extension, no new contract.
• have a contract extension or a new contract in place.
• </c><00:48:25.760><c> in</c> contract extension or a new contract in contract extension or a new contract
• Not sure if we had a contract in place or not. There was a contract in place.

Summary: The committee first took up House Bill 2, which would address the taxation of currency and bullion and was presented as a response to last session’s dispute over whether a line-item veto could be applied to a revenue measure. The sponsor said the bill, as amended by Committee Substitute 2, was largely technical but also made the tax exemption retroactive to August 1, 2024 while making the $1,000-per-day penalty prospective only. Members asked about fiscal impact, possible legal liability for executive branch officials, and whether the issue should instead be resolved by the courts. The sponsor argued the Constitution limits the governor’s line-item veto power to appropriations, not revenue bills, and said the bill would create a judicial remedy and refund process if the executive branch continued collecting the tax. The committee approved the committee substitute and then passed House Bill 2 by a vote of 19-1, with two members passing; the bill was reported favorably to the floor. During discussion, Representative Bojanowski voted no, saying he could not support removing taxes on gold bars while parents pay taxes on diapers. Representative Gentry passed, saying he supported the original intent but was not yet convinced and wanted more time to review the issue. The sponsor also clarified that any liability would be joint and several and could involve executive officials or their budgets if the tax collection continued despite the exemption. The committee then heard a discussion-only presentation on the Kentucky Exposition Center Redevelopment Plan Phase 2. Facility representatives described Phase 1 and the planned Phase 2 expansion, saying the center had record attendance and needed more space to remain competitive and meet client demand. They said Phase 1 was about 20% complete, with completion now expected in October 2026 and an opening target of December 31, 2026 after a short testing period. Phase 2 would follow, including demolition of the West Wing, utility work, and improvements to food service and circulation areas. They said the project would be funded without federal dollars and estimated that, once complete, it could generate about $683 million in annual economic impact, $302 million in state sales tax, and 850,000 room nights in Jefferson County.

Transcript Highlights:

• First, let me say what my office does.
• So I will present on the first So I will present on the first two slides. Oh, there she is. Okay.
• In 2021, we hired the first director.
• In 2021, we hired the first director.
• One of the pieces of feedback that I first heard in my first year meeting with legislators was: we need

Committee: Senate State Government, Tribal Affairs & Elections

Summary: The committee met for a pre-session kickoff focused first on voting access on tribal lands. Dr. Chelsea Jones of the Brennan Center presented research showing turnout on tribal lands trails turnout off tribal lands in every federal election studied from 2012 to 2022, with about a 10-point gap in Washington and about 11 points nationally. She identified barriers such as long travel distances to polling places and drop boxes, nontraditional addressing, unreliable postal service, lack of language assistance, and limited broadband and voter information. Members asked about the meaning of the turnout gap, the role of tribal leadership and community outreach, and whether the figures reflected lost ballots or missed voting opportunities; Dr. Jones emphasized the issue is access, not ballot disappearance, and said trusted local voices and tribal-government partnerships are important complements to policy fixes. The University of Washington Elections Database then presented vote-by-mail data for tribal reservation areas from 2020 to 2024. The presentation showed voter registration on reservations rose steadily from about 107,000 in 2010 to 137,000 in 2024. Turnout on reservations remained lower than outside reservations by roughly 8 to 9 percentage points in general elections, with similar but slightly smaller gaps in primaries. The UW team also reported that about 1.5% of ballots cast on reservations were signature-challenged in general elections, that cure rates were generally similar inside and outside reservations and ranged around 60% to two-thirds, and that late return was the most common reason for rejection in primaries while signature mismatch was the leading reason in general elections. Senators raised concerns about mail delivery and postmarking, and the researchers said they would continue studying return methods and cure rates. The committee next heard an overview of the Governor’s Office of Indian Affairs from staff and Executive Director Tim Rennon. They described the office’s history, its role as a liaison between the state and tribes, and its work on consultation, training, convening work groups, and supporting the Centennial Accord and related tribal-state agreements. Rennon said the office now has six positions, is working on statewide tribal relations training, and does not speak for tribes but helps ensure consultation occurs early and often. Members asked about whether tribal voting is discussed in Centennial Accord settings and were told it is more commonly addressed through ATNI and its voting committee. The final major topic was state contracting and supplier diversity. WSDOT’s Earl Key described the impact of Initiative 200 and the recent federal suspension of the DBE program, and said WSDOT has expanded race-neutral tools such as mentorships, small business goals, veterans goals, trucking consortia, small-works set-asides, and emerging/rising small business goals. DES’s Adrian Thompson and OMWBE’s Sharon Harvey Hughes and Laca Fernandez outlined statewide contracting policy, outreach, certification, and spend data, noting efforts to centralize support, expand the EDGE program, and improve procurement systems. OMWBE reported agencies increased spend with certified firms to over 6% in the latest period, with total certified-firm spend at 4.15% or about $371 million, while higher education lagged behind. Members pressed for clearer performance data, asked about certification barriers and the effect of federal changes, and were told the agencies coordinate through a governor’s sub-cabinet, regular meetings, and ongoing outreach. The Office of Equity then began its update, describing its role in agency consultation, dashboards, and accountability monitoring, including a homelessness dashboard and a trooper-cadet application dashboard, before the transcript ended.