Transcript Highlights:

• So it's under review and consideration.
• Without objection, this report will be reviewed.
• partially supported by the Arkansas Division of Information Systems.
• In here it mentions a new telematic system.
• Without objection, this report will be reviewed, and we will move on.

Committee: All LEGISLATIVE JOINT AUDITING-STATE AGENCIES

Summary: The committee met with prayer and approved the January minutes, then heard a series of Arkansas Legislative Audit reports. Reports with findings were presented for the Department of Human Services, Department of Parks, Heritage, and Tourism, Department of Corrections, and Department of Veterans Affairs, along with a special report on law enforcement racial profiling policy compliance. Several reports without findings were also filed without objection. For DHS, auditors reported apparent thefts involving false benefit claims in disaster nutrition assistance and Medicaid, a nearly $610,000 altered warrant cashed by a California auto body shop, and multiple asset-control issues, including missing equipment, inventory discrepancies, and improper sales tax paid on exempt vehicle purchases. Members questioned DHS about the warrant fraud and whether other agencies or California officials had been notified. For Parks, Heritage, and Tourism, auditors cited missing museum receipts and problems with change funds at Daisy State Park and War Memorial Stadium; department officials said they are considering cashless payment options and provided an update on the museum loss investigation. For Corrections, auditors reported unauthorized personal fuel-card purchases totaling about $4,500 and a delayed disaster recovery test for critical IT systems. Department officials said staffing has been increased for fuel-card oversight and that a full production disaster recovery test is scheduled soon. For Veterans Affairs, auditors found improper pay for employees who were not working, duplicate vendor payment, and numerous overtime approvals that were not properly authorized; the department said it has tightened overtime approval procedures. The special report said only 203 of 383 law enforcement agencies had responded regarding racial profiling policies, and the Attorney General had notified the remaining agencies that they were not in compliance. The committee requested a list of nonresponding agencies and adjourned, with the next meeting scheduled for March 12.

Transcript Highlights:

• Um, I first want to say [clears throat] sewer systems. We also value the sewer systems.
• </c> um pre-approved systems? um pre-approved systems?
• Can just plop down like the rectangle or the polygon of this drawn-out system, then yeah, our review
• </c> county projects reviewed under 6E-42. county projects reviewed under 6E-42.
• </c> because it just wasn't ready for review. because it just wasn't ready for review.

Transcript Highlights:

• Their tracking system and the systems they have in place to help monitor and track the product that they
• And in reviewing those, we thought that that warranted a follow-up audit.
• Multi-tiered system of supports, or MTSS, seeks to help schools implement a school-wide system to identify
• Multi-tiered system of supports, or MTSS, seeks to help schools implement a school-wide system to identify
• Their MTSS system is pretty broad with being a K through 12 school.

Summary: The committee meeting began with a brief explanation of the renamed Joint Legislative Audit Review Committee subcommittee, now called the Committee to Hear SAO Performance Audits, and a presentation from the State Auditor’s Office on its current biennium performance audit work plan. The auditor described how topics are selected from a large pool of potential audits and highlighted several ongoing or planned audits, including the Liquor and Cannabis Board, oversight of authorized entities serving students with disabilities, the Quality Home Care Initiative, Medicaid managed care versus fee-for-service costs, the Housing Commission tenant ownership follow-up, DSHS vendor payment patterns, implementation of the Since Time Memorial curriculum, and the Washington State ferry system. Members asked about coordination with JLARC to avoid duplication, and the auditor said the offices exchange work plans, monthly updates, and quarterly coordination meetings. The committee then heard the State Auditor’s performance audit on how charter schools identify and support at-risk students. Auditors reviewed four charter schools—Catalyst Public Schools, Innovation High School, Pinnacles Prep, and Rainier Prep—and focused on English language learners, homeless students, and special education students. The audit found the schools met nearly all legal requirements reviewed, with only one area where two schools partially met a language-access requirement. The schools also used several promising practices, including small-group instruction, culturally responsive environments, and multi-tiered systems of support, though the auditors recommended better documentation of procedures to improve consistency. Families interviewed generally reported positive experiences, while noting resource constraints. Committee members asked about how the four schools were selected, whether the audit compared charter populations to home districts, and how MTSS requirements applied to the schools reviewed. The State Auditor’s Office said the sample was chosen for geographic diversity, student population characteristics, and representation from both authorizers, and that K-2 MTSS requirements were not evaluated because they applied to only one school. Representatives from the Charter School Commission and charter school advocates responded positively, emphasizing technical assistance, collaboration, and sharing best practices across schools. Two public testifiers also supported the report and said it highlighted effective practices that could be expanded across charter and traditional public schools.

Transcript Highlights:

• The decreases were in the teacher retirement system and the state highway employee retirement system.
• that is separate from DHS's eligibility system.
• So it wasn't every system.
• management system.
• alerting system.

Committee: All LEGISLATIVE JOINT AUDITING

Summary: The committee met to adopt prior minutes and reports from its executive and standing committees, including counties and municipalities, educational institutions, and state agencies. Those reports covered routine audit activity, delinquent private water and sewer audits, municipal accounting compliance issues, education audit findings, and several state agency audit items. The committee also reviewed and adopted the State of Arkansas annual comprehensive financial report for fiscal year 2025 and the related single audit report, both presented by Legislative Audit staff. The state financial report showed unmodified opinions on the state’s financial statements and described total assets of about $41.9 billion and liabilities of about $11.1 billion, along with retirement system assets of $39.9 billion and a net pension liability of $9 billion. Two material weaknesses were identified: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and a Division of Workforce Services methodology change for unemployment-related estimates that was not properly documented or approved. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed; it resulted in 33 findings, 14 with questioned costs totaling $16.6 million, and qualified opinions for the Summer EBT program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Members questioned agency officials in detail about the Summer EBT questioned costs, DHS unresolved findings, broadband grant documentation, cyber security controls, workers’ compensation liabilities, and child care funding and reporting. DHS explained that the Summer EBT issue involved drawing federal funds in advance rather than as benefits were redeemed, and said the process has been corrected. Broadband officials said the questioned $6.6 million reflected documentation-detail disagreements across many invoices rather than missing payments. OST officials described new logging, endpoint detection, and phishing-training efforts, and DFA and Education officials addressed specific audit findings and corrective actions. The committee ultimately moved to hold the two large statewide reports over until the August meeting for further review, with discussion continuing on whether to release some agency staff in the meantime.

Transcript Highlights:

• Reviews. So please come forward: Jeff Cunningham, Aline, Ms.
• into the brief reviews here.
• actually built the federal highway system.
• actually built the federal highway system.
• Educators have reviewed public banking policies and have seen the value that these systems can bring

Bills: SB5754

Committee: Senate Ways & Means

Keywords: public bank, state bank, finance, banking regulations, economic development, state investment

Transcript Highlights:

• , the Texas A&N system.
• They are being reviewed.
• Our system was outdated. You talked earlier about 30, 40-year systems.
• Um, if we're going to do claims reviews, I need. nurse to review the claims.
• HHSC is doing. internal reviews to better safeguard the system, to ensure employee appropriate checks

Committee: House Delivery of Government Efficiency

Transcript Highlights:

• The gas system has how that goes.
• Three.5 million in power system.
• We have not yet standard review.
• </c> system going forward. system going forward.
• system for solar interconnection. So system for solar interconnection.

Committee: House Energy Finance and Policy

Transcript Highlights:

• This was before we had our great tax system. It was before we had our accounting system.
• And we definitely want to make sure that the reviewers that are sitting in reviewing these applications
• We do track what percentage of our reviewers are from Greater Minnesota, what percentage of our reviewers
• The final step of the review process is a review of the financial documentation requested of the applicant
• We would complete a review of the financial documentation requested of the applicant filing that review

Committee: House Legacy Finance

Transcript Highlights:

• systems.
• So one of the questions that came to my mind when I was reviewing this is, could the less frequent review
• So one of the questions that came to my mind when I was reviewing this is, could the less frequent review
• We talked to our review physicians that do these reviews and determined that seven did seem like a number
• We talked to our review physicians that do these reviews and determine that seven did seem like a number

Summary: The committee reviewed a series of Arkansas Department of Human Services and Department of Health rules, with most items receiving no objection. DHS Medical Services presented a rule to restore continuous glucose monitors to Medicaid durable medical equipment and pharmacy benefits after addressing provider concerns, and another rule to allow hospitals to bill at a rehabilitation level of care when patients are receiving only rehab services in an acute-care setting, while also moving Medicaid utilization management review from day 4 to day 7 for most hospitals and day 10 for rehab hospitals. Members questioned whether the rehab rule could lead to children being sent out of state, but DHS said the intent was to keep patients in-state and reimburse appropriately; the rule was reviewed without objection. DHS also presented PACE program updates to align with federal requirements and Act 144, and a separate personal care manual rewrite that would replace the Arkansas Independent Assessment with a claims-based medical eligibility review by Optum, clarify hourly service flexibility, and comply with Acts 625 and 853; both were reviewed without objection. The committee then heard a Medicaid eligibility rule from DHS County Operations that excludes foster care/adoption subsidy income for certain eligibility groups, clarifies treatment of 529 accounts, tax refund interest, and independence accounts for workers with disabilities, and carries an estimated fiscal impact of $485,000 in year one and $586,000 in year two. Members asked about account limits and how the independence accounts work; DHS explained they must be established while the person is in the workers-with-disabilities category and can continue to be excluded in other Medicaid categories, with no cap on deposits. The committee also reviewed a permanent DHS mental health rule allowing general or medical-surgical hospitals to operate adolescent substance abuse units and bill Medicaid, following an emergency rule approved in June. DHS said the first such unit had opened at Unity in Searcy, with no other hospitals currently in the pipeline, and members discussed follow-up care, grant support, and the use of existing hospital infrastructure. Finally, the Department of Health presented an annual update to the controlled substances list, adding substances tied to Act 934 of 2025 on intoxicating hemp and other DEA/Arkansas concerns, with no public comments received. Health also proposed repealing the separate synthetic marijuana products rule because those substances are already covered by the controlled substances list. Both Health items were reviewed without objection, and the committee adjourned after completing its agenda.

Transcript Highlights:

• Finally, you've already heard mention of this: this review would be in addition to the federal review
• Finally, you've already heard mention of this: this review would be in addition to the federal review
• Finally, you've already heard mention of this: this review would be in addition to the federal review
• The system is broken, okay? We based ourselves on a cheap food system where diesel is $5 a gallon.
• The system where diesel is $5 a gallon is not working.

Bills: HB2279 , HB2463 , HB1941 , HB2238

Committee: House Agriculture & Natural Resources

Keywords: PFAS chemicals, agriculture, environmental impact, regulation, food safety, farmers, food security, Washington, support for farmers, cannabis, cooperatives, marijuana industry, HB 2238, HB2238, statewide food security, food security strategy, hunger, food insecurity, food access, food assistance

Transcript Highlights:

• And although we've reviewed paints in Cycle 1, we've reviewed them for PCBs and not PFAS.
• And although we've reviewed paints in cycle one, we've reviewed them for PCBs and not PFF.
• We reviewed paints in Cycle 1. We reviewed them for PCBs and not PFAS.
• But we have another 2,000 water systems.
• So about half of the water systems are also what you call transient non-community systems.

Committee: Senate Environment, Energy & Technology

Summary: The committee held a work session focused on PFAS, no-cost allowance allocation for emissions-intensive trade-exposed industries (EITEs), and regional resource adequacy. Department of Ecology staff outlined Washington’s Safer Products for Washington PFAS program, including completed restrictions on intentionally added PFAS in outdoor furniture, carpets, stain/water-resistant treatments, and newer rules adopted in November restricting PFAS in most apparel, cleaners, and automotive washes, with reporting required for some remaining products such as cookware and firefighting gear. Ecology also reviewed a 2024 biosolids PFAS sampling study showing PFOS and PFOA levels in Washington biosolids were comparable to other states, and the Department of Health reported that PFAS monitoring of Group A public water systems is nearly complete, with 317 sources and 188 systems expected to exceed contaminant levels under the new federal-aligned state standards. Members asked about consumer sales, compliance, private wells, health impacts, and the cost of treatment, which DOH estimated at roughly $970 million for public water system treatment alone, with a remaining funding gap after state and federal support. Ecology then presented its analysis of no-cost allowance allocation to EITEs under the Climate Commitment Act. Staff explained that EITEs receive allowances to reduce emissions leakage and protect competitiveness, with allocations based on 2015–2019 production and emissions data and phased reductions from 100% in the first compliance period to 94% in 2031–2034. Ecology said it is preparing a report due by the end of 2025 on policy options for 2035–2050, after extensive engagement with industry, labor, environmental, utility, port, and tribal stakeholders. Senators asked about leakage, comparisons with California and Quebec, whether specific industries such as Boeing or semiconductor manufacturers are included, and whether EITEs are banking or selling allowances; Ecology said the report will address benchmarking, leakage mitigation, decarbonization barriers, and economic and environmental justice impacts. E3 then presented a regional resource adequacy study for the Pacific Northwest, warning that electricity demand is rising faster than in years past, retirements are outpacing replacements, and the region could face supply shortfalls beginning in 2026, especially during extended winter cold events. The study found that wind, solar, and batteries provide limited reliability value in the Northwest’s winter-peaking, hydro-dependent system, while firm gas and emerging technologies such as geothermal, nuclear, hydrogen, carbon capture, and long-duration storage may play larger roles. E3 estimated a near-term gap of about 9,000 megawatts by 2030, with roughly 3,000 megawatts of advanced-development resources and a remaining gap of about 6,000 megawatts if planned projects do not materialize. Members asked about Energy Northwest, hydro, data centers, battery storage, transmission, and whether neighboring states’ coal use affects Washington; E3 emphasized the need to accelerate permitting, interconnection, and project development. Finally, EPRI briefed the committee on its DC Flex initiative, which is studying how data centers can operate more flexibly to reduce strain on the grid and protect ratepayers. The presentation described work streams on flexible data center design, utility programs and tariffs, operational forecasting and interconnection, and on-site energy supply options, along with demonstrations in the U.S. and abroad. The speaker said the goal is to make data centers more responsive to grid conditions without compromising uptime, and noted that the initiative has a public forum and website for broader participation.

Transcript Highlights:

• But I have also sat in those rooms where those reviews take place, and the review...
• The OCA's review found that FRCs reached families earlier, prevent court recourse, The OCA's review found
• health and educational systems.
• I grew up in the Massachusetts foster care system, a system I like to call strange and dangerous.
• That's system failure.

Committee: Joint Joint Committee on Children, Families and Persons with Disabilities

Summary: The Joint Committee on Children, Families, and Persons with Disabilities held a hybrid hearing on a series of child welfare bills focused on DCF, foster care, mandated reporting, educational records, and family support. Chair Kennedy and Chair Livingstone opened with accessibility and testimony rules, then heard testimony on bills including S.127 on expanding mandated reporters, S.107/H.235 on a Foster Children’s Bill of Rights, S.106/H.228 on transferring foster care review from DCF to the Office of the Child Advocate, H.258/S.125 on an electronic backpack for foster children’s educational records, H.205 on kinship foster care background checks, H.246/H.266 on minimizing trauma in care and protection cases, and S.159 on support for families after sudden unexpected infant death. Supporters of the mandated reporter bill, led by Sen. Feeney and Foxborough advocates, described a local model that trains all adults who work with children and argued the state should scale that approach statewide to improve recognition and reporting of abuse. Testimony on the foster care bills emphasized the need for clearer rights, better notice to children and attorneys, stronger remedies, and independent oversight. Advocates, youth with lived experience, and legal organizations described placement instability, delayed notifications, abuse in care, poor educational continuity, and the need for rights around safety, family contact, culture, language, and access to records. Several witnesses urged that the Foster Children’s Bill of Rights include enforceable court remedies, not just reporting requirements. On the oversight bill, supporters argued DCF should not review its own foster care system and pointed to poor outcomes, high placement instability, and recent investigative reporting as evidence for moving review responsibilities to the Office of the Child Advocate. On the electronic backpack bill, testimony focused on the need for real-time data sharing and a centralized system so schools can receive foster students’ records quickly and support continuity. On the trauma-minimization bill, Rep. Miskin framed the proposal as a set of practical changes to reduce harm during removals and court involvement. On the SUID bill, Sen. Lovely said families should be given information about available grief and support resources after an infant death. No votes were taken during the hearing; the committee primarily received testimony and questions.

Transcript Highlights:

• And we had the peer reviewers review that information and provide any suggestions.
• Is there a similar peer review system in place as we’re funding these various projects, and we’re looking
• , and we have peer reviewers identified who are doing this process. ...are doing peer review, and we
• Like I said, peer review is usually the beginning stage for all of our grants, and then, following review
• This bill will basically help create a system, a portable system, where we could have all this information

Committee: Senate Health Policy

Summary: The committee first received an update from the Department of Health on the Cancer Connect Collaborative, the Cancer Innovation Fund, and the new Cancer Connect Collaborative Research Incubator, created and expanded by recent legislation. The department reported that the Cancer Innovation Fund has awarded $80 million to 95 researchers to date, with $60 million available in the current cycle and 65 projects funded across 28 institutions in 16 cancer areas last year. The new pediatric cancer incubator received $30 million and awarded four Florida children’s hospitals $7.5 million each. Senators asked about outreach to oncologists statewide, peer review and accountability, funding for National Cancer Institute-affiliated institutions, and whether underserved and rural areas are being prioritized; the department said it uses website notices, listservs, collaborative outreach, and eligibility criteria favoring rural and high-cancer-care providers, and that it monitors projects through reports, expenditures, and contract provisions. The committee then heard Senate Bill 312 on patient-directed medical orders, which would create a voluntary, portable, physician-authorized electronic registry for patients to document end-of-life and serious-illness treatment preferences. Supporters, including nurses, hospice and emergency care advocates, and medical professionals, said the bill would help ensure patient wishes are accessible in emergencies, reduce unwanted interventions, and improve continuity of care. Opponents, including Florida Right to Life, argued the bill could broaden end-of-life decisions too far, raise privacy and coercion concerns, and allow withdrawal of care inappropriately. The sponsor said the measure is intended to support patient autonomy and is not anti-life, and noted she was open to amendments. After public testimony, the committee voted on SB 312 and reported it favorably. The roll call showed support from Senators Berman and Harrell, with the bill passing on the committee vote. The meeting then adjourned.

Transcript Highlights:

• What we found in our review of DHS's grants management practices was that, of the 41 grant reviewers
• What we found in our review of DHS's grants management practices was that, of the 41 grant reviewers
• Grant reviewers so the individuals<00:08:20.560><c> who</c><00:08:20.759><c> review</c><00:08:21.199>
• We had the system that I mentioned earlier, where invoices are reviewed before they're paid by a human
• </c><01:09:43.000><c> that</c> management system we had the system that management system we had the

Committee: Senate Human Services

Transcript Highlights:

• The reviewer would have to review the individual's report to identify what they articulate as their imminent
• I wanted to specifically go into the area of concern around the instances of review, the internal review
• You go through your own internal review for 13,500... ...go through your own internal review for 13,500
• So they'll review the audio-video surveillance system, they'll review the body-worn camera footage.
• I served 23 years inside that system.

Summary: The Assembly Budget Subcommittee hearing focused on the Department of Corrections and Rehabilitation’s handling of mental health care in prisons and allegations of sexual abuse, retaliation, and excessive force in the state’s women’s facilities. CDCR officials described their PREA-based prevention and response efforts, including training, oversight, body-worn cameras, retaliation follow-up, and partnerships with outside groups. The Office of the Inspector General explained its monitoring role, noting increased authority under SB 1069, but also limited staffing and the ability to monitor only a portion of cases. The Legislative Analyst’s Office added that prison population trends could allow the state to close a prison and save over $100 million, with some savings potentially redirected to prevention or response efforts. Advocates and formerly incarcerated witnesses from Sister Warriors Freedom Coalition and the California Coalition of Women Prisoners testified that meaningful systemic change has not occurred and that retaliation, blocked programming, and unsafe reporting conditions remain widespread. They described alleged barriers to community-based services, forced or coercive treatment concerns involving Suboxone, and the need for survivor-centered reentry support, trauma-informed care, and more independent oversight. Sandra DeAnda gave detailed testimony about alleged staff abuse, retaliation, denial of mental health care, and a large use-of-force incident at Central California Women’s Facility, while Amika Mota and April Grayson urged release or resentencing for survivors housed with their abusers and greater investment in outside programs. Members of the committee pressed CDCR and OIG on accountability, use-of-force standards, criminal referrals, disciplinary outcomes, and whether investigations are completed within statutory timelines. CDCR acknowledged cultural problems at both women’s prisons and said it was retraining staff and working on reforms, while OIG said it had monitored 161 investigations and found most grievance routing appropriate, though some cases had lapsed due to time limits. Later exchanges revealed that CDCR has over 13,500 active cases and 109 investigators, and that some cases have exceeded deadlines, prompting concerns from members about whether the current system can adequately investigate misconduct and impose consequences. No votes were taken.

Transcript Highlights:

• As you know, DIR is currently undergoing sunset review.
• We receive biennial performance reviews, and the command is subject to full sunset review in 2031, with
• to be in the system.
• Are we going to do it through the UT system?
• How easy it was to attack these systems and attack two other water systems during that same week.

Bills: HB146 , HB150 , HB1500 , HB1545 , HB1562 , HB2067 , HB2520 , HB2818 , HB3214 , HB3250 , HB3466 , HB3512 , HB3623 , HB4063 , HB4395 , HB4464 , HB4668 , HB4690 , HB5331 , HB3833 , HB146 , HB150

Committee: Senate Business & Commerce

Summary: The committee took up several pending business items and reported a series of House bills out of committee, including HB 2467, HB 2468, HB 2518, HB 4310, HB 4386, HB 4490, HB 5323, and HB 149. Most of these were advanced on committee substitute motions and sent to the local and uncontested calendar or reported favorably to the full Senate. HB 2467 drew one nay vote, while the others were approved without opposition. HB 4310 and HB 4386 were described as committee-substitute versions with changes narrowing disclosure requirements and preserving attorney-client privilege in certain circumstances. A major portion of the meeting focused on HB 149, an AI governance bill. The substitute was explained as addressing biometric identifier capture and storage, exempting certain AI uses for security and fraud prevention, clarifying definitions, restricting AI systems that simulate explicit child sexual content, adjusting Attorney General investigative authority, refining sandbox program waivers, reducing Texas AI Council powers and membership, and adding DIR coordination provisions. The committee adopted the substitute and reported the bill favorably. The committee then heard extensive testimony on HB 1500, the DIR sunset bill. The author said the bill would continue DIR for 12 years, restructure its board, update advisory committees, require regular cybersecurity assessments and penetration testing for state agencies, improve IT procurement training, and transfer the e-grants program to the Comptroller. A Texas 2036 witness supported the bill as a way to strengthen governance, procurement, and cybersecurity. Members asked detailed questions about the bill’s structure and then left HB 1500 pending. The committee also heard a lengthy presentation on HB 150, which would create the Texas Cyber Command as a component of the University of Texas System, administratively attached to UTSA and located in San Antonio. The author argued the command would centralize cyber threat intelligence, incident response, and digital forensics, and would be able to support state and local entities, with optional services for local governments. Members raised concerns about university mission drift, governance, security, chain of command, procurement authority, gifts and donations, and civil liberties implications of proactive cyber monitoring. Witnesses from UTSA/NSCC and SecurityScorecard testified in support, emphasizing the security of the downtown San Antonio facility, the existing cyber ecosystem there, and the need for a dedicated cyber capability. The bill remained under discussion with no final committee action announced in the excerpt.

Transcript Highlights:

• And so I think many in the industry have been advocating for a better system, a more safe system.
• We are embracing tools and systems that allow us to work the human error out of the system.
• This kind of system, Vantis and other traffic management systems that will also come out are going to
• And so I am not used to running this system. And so I am not used to running this system.
• that they would not because of the building department and their inability to review, do reviews.

Committee: Joint Government Finance Committee

Summary: The committee first received a general fund and revenue update from the Office of Management and Budget. Staff reported that the state started the biennium about $176 million above prior estimates, but year-to-date revenues were now running below legislative forecast, mainly due to lower individual income tax and sales tax collections. The budget stabilization fund was above its cap, the legacy fund continued to grow, and oil revenues were slightly above forecast overall. Members also asked about federal funding uncertainty and mineral leasing variability, and OMB said agencies would be asked to address potential federal reductions case by case during budget preparation. The committee then reviewed compliance reports and trust fund analysis materials, followed by a bill draft for a fixed-route city transportation grant program. Testimony from transit officials in Fargo and Minot supported the proposal, saying state aid would help match federal transit funds and support operations, but members raised questions about the funding source, fare structures, and whether the program should be limited to the current four fixed-route cities or allow future eligible cities. Several members asked for more time to study the formula and possible funding options before moving the bill forward. Next, the committee approved a bill draft repealing obsolete language related to a proposed North Dakota-South Dakota bi-state authority. Staff explained the provision had been unused for about 30 years and that existing law likely already allowed joint powers agreements without the specific language. The committee voted to adopt the repeal bill draft. The Department of Commerce and the Northern Plains UAS Test Site then provided an update on uncrewed aircraft system initiatives, including the Vantis radar data enclave, the drone replacement program, and future revenue models. Officials said North Dakota had received FAA approval to operate the radar data pathfinder, had begun replacing non-compliant drones from restricted foreign sources, and was working on phased procurement and cost-recovery plans. Members asked about deadlines, funding, supply-chain issues, and how the system would be used; staff said the federal restrictions were already in effect and that Vantis was being positioned as infrastructure for future beyond-visual-line-of-sight operations. Finally, the Department of Corrections and Rehabilitation presented on the design of a new minimum-security prison and on a reentry housing task force. The new facility is planned for the penitentiary grounds, with a reduced estimated cost of about $263 million, 600 beds initially, possible expansion to 732 beds, and completion projected around 2031 if funded in 2027. The reentry housing task force described a data-driven effort to identify housing needs for people leaving incarceration, with the goal of reducing homelessness and recidivism through targeted housing support and possible subsidies. Members asked about staffing, site selection, housing duration, and whether employment and transportation needs would be included in the assessment.

Transcript Highlights:

• It was mostly just about the patient record reviews.
• panelists for their expert review of our complaints.
• I'm not going to come in here asking for funding or any kind of systemic fix for a systemic problem in
• I'm not coming in here asking for funding or any kind of systemic fix for a systemic problem in the agency
• So they'd like to connect that, internally connect our system to their system, to transfer that data

Summary: The joint budget hearing covered several health licensing and regulatory agencies presenting their legislative appropriations requests for the 2028–2029 biennium. The Health Professions Council described savings from its shared-services model and requested funding for data center maintenance, a required software license, and targeted equity adjustments, while noting that some member agencies were leaving the shared website program. The Executive Council of Physical Therapy and Occupational Therapy Examiners asked for funding to repurpose an occupational therapy specialist position, add an investigator, provide targeted salary adjustments, and increase executive director salary authority. The Texas Optometry Board requested funds to offset the 3% base reduction, provide small staff salary increases, pay contractors to review patient records during inspections, and cover its share of HPC costs. The Texas State Board of Dental Examiners sought salary increases, a contingency fund for retirements, operational cost increases, IT replacements, automation of criminal background checks, additional staff for complaint and legal work, and HPC-related funding. The Behavioral Health Executive Council said its requests were driven by rapid growth in complaints and licensees, and included additional attorneys and investigators, clinical review staff, salary equity adjustments, a Texas-specific psychology exam, NPDB continuous query funding, a Microsoft 365 upgrade, office space for new staff, and HPC support. The Board of Nursing reported major growth in its licensee population and ongoing fallout from Operation Nightingale, and requested IT modernization, continued fraud-response funding, 13 new FTEs, salary equity adjustments, partial restoration of the 3% cut, support for the peer assistance program, and funding for the Texas Center for Nursing Workforce Studies. The Texas Medical Board said its revenue is sufficient but appropriations constrain operations, and requested workforce compensation and reclassification funding, continued modernization of document and call-center systems, support for the Texas Physician Health Program, and related fee/appropriation adjustments. Across the hearing, members asked about how shared-cost formulas work, how agencies manage workload growth, and how proposed technology and staffing changes would improve efficiency and public protection. Agency leaders generally emphasized retention, continuity, and modernization, and several public witnesses, including representatives from the Texas Public Employees Association, supported the salary and staffing requests. No votes were taken, and the hearing concluded after each agency presentation and questions from the dais.

Transcript Highlights:

• The decreases were in the teacher retirement system and the state highway employee retirement system.
• system.
• So it wasn't every system.
• management system.
• log management and alerting system.

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 decreases were in the teacher retirement system and the state highway employee retirement system.
• system.
• So it wasn't every system.
• management system.
• alerting system.

Committee: All LEGISLATIVE JOINT AUDITING