Transcript Highlights:

• The invitation to bid is often the most straightforward method of procurement.
• In other words, it's just a low-bid contract.
• Last year, state agencies awarded 753 invitations to bid.
• That means one in five dollars is spent in the area of information technology.
• There comes a need for exponential oversight and accountability through this process.

Committee: Senate Governmental Oversight and Accountability

Summary: The Committee on Governmental Oversight and Accountability met with a quorum present and first took up SB 268, a public records exemption bill for public officers. Senator Brodeur explained the bill on behalf of Senator Jones, saying it would protect partial home addresses, phone numbers, and certain family information for the governor, cabinet members, and other elected officials because of threats and harassment against public servants. An amendment narrowing and clarifying the definition of public officer and the process for claiming the exemption was adopted without objection. Chair Fine and Senator Brodeur both spoke in support of the bill, citing personal experiences with threats and the need to protect officials and their families. CS for SB 268 was then reported favorably by roll call vote. The committee then heard a presentation from Brandon Spencer, Director of State Purchasing and Chief Procurement Officer at the Department of Management Services, on state agency procurement and contracting practices, including IT procurements. He described the state’s procurement structure, including state term contracts, alternate contract sources, and agency procurements, and said the division now manages more than 960 enterprise-wide agreements, with that number continuing to grow. He also highlighted that roughly 21% of purchase order spend is on IT services, discussed statutory requirements for IT procurements, and said the division is working with Florida Digital Service to improve oversight, training, vendor accountability, and procurement options. No committee action followed the presentation, and the meeting adjourned after no further business was raised.

Transcript Highlights:

• We haven't gone through a bid process to see what that would actually be in cost. $600 a square foot
• I was a little concerned when you said we haven't done a bidding process and we're asking for $24 or
• Go ahead and put it out for me, but we don't have a piece of land, so I can't ask for a bid process until
• We'll give you more information on that as we go through the process.
• So, like a heat map, we've got a lot of information in our licensing process.

Committee: House Public Safety

Transcript Highlights:

• and are bid out competitively.
• and are bid out competitively.
• That they need to win bids.
• We could certainly receive it through the evidentiary process, but ultimately our evidentiary process
• You would have to go through the quasi-judicial process at some point, but it would be an information-generating

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, reliability, and wildfire-related costs. The chair framed the discussion around the challenge of transitioning to a cleaner grid while keeping bills affordable and the system reliable, and noted the hearing also served as the annual update from the CPUC and Public Advocates Office. Professor Severin Borenstein gave a primer on utility regulation, explaining the split between deregulated generation and regulated transmission/distribution, the basics of cost-of-service regulation, and the role of return on equity. He argued that high allowed returns can encourage capital-intensive spending and that many public policy costs now embedded in rates would be better funded through the state budget, while warning that price caps or performance-based regulation are not silver bullets. CPUC President-designate Alice Reynolds described the commission’s role as economic regulator of investor-owned utilities and said affordability is being addressed through rate case scrutiny, reasonableness reviews, and legislative direction. She said wildfire mitigation and insurance costs have been major drivers of rate increases, but some wildfire-related costs are time-limited and will roll off rates over time. She also highlighted progress on clean energy procurement, battery storage growth, and integrated resource planning to meet climate goals while maintaining reliability. Reynolds said the CPUC is reviewing utility spending, disallowing imprudent costs where appropriate, and litigating at FERC to challenge transmission costs. Members pressed both witnesses on several issues, including whether rates are being inflated by legislative mandates and balancing accounts, whether utility returns are too high, and whether the state should shift more public-policy costs off electric bills and into the General Fund. Senators also raised concerns about load growth from data centers and ports, gas-system stranded assets as electrification advances, and whether the CPUC is over-regulating or discouraging innovation. Reynolds said the CPUC is working with the Energy Commission, CAISO, and the Air Resources Board on a holistic planning process, and pointed to tools such as interconnection reforms and demand flexibility. No votes were taken; the hearing was informational, with several follow-up requests for reports and data.

Transcript Highlights:

• and are bid out competitively.
• and are bid out competitively.
• And this is a process that we...
• That they need to win bids.
• You would have to go through the quasi-judicial process at some point, but it would be an information-generating

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• The work is awarded, not during the bidding process. And I'm happy to take any questions.
• before he ever bids it.
• before he ever bids it.
• I've been through that process in Tennessee. I've been through that process in other states.
• And I've been through that process in Tennessee, I've been through that process in other states, and,

Committee: House Joint Committee on Transportation Oversight

Summary: The committee first took up House Bill 2759 in executive session. The sponsor explained a committee substitute that would shift the bill’s disclosure requirement so project completion dates would be posted when work is awarded, rather than during the bidding process. Members discussed the fiscal note and whether the change could affect contractor pricing and MoDOT costs. The committee adopted the substitute and then voted the House Committee Substitute for House Bill 2759 “do pass” by a roll call of 13 ayes and one present. The committee then moved to public hearing on House Bill 1741, which would create procedures for non-consensual towing of commercial vehicles, including a towing and recovery review board, limits on storage charges while disputes are pending, restrictions on liens, access requirements, and penalties for violations. Representative Griffith said the bill is aimed at protecting independent truckers from excessive towing charges while still allowing emergency road clearance. Members raised concerns about the scope of the bill, the lack of a dispute timeline, the proposed $25,000 penalty, the ban on per-pound billing, and whether the bill could interfere with emergency towing or create litigation involving the state. Supporters, including representatives from trucking groups, described large and sometimes excessive tow bills, argued that small owner-operators can be bankrupted by these costs, and said Missouri lacks a meaningful complaint process. Opponents from towing associations said the bill, as written, could prevent non-consensual commercial tows because towers need a lien or other leverage to get paid, especially when vehicles or cargo are abandoned or out of state. They also argued that emergency recoveries are dangerous, expensive, and highly variable, and that the bill should be narrowed and clarified. The sponsor and witnesses on both sides indicated a willingness to keep working on amendments, and no final action was taken on House Bill 1741 during the hearing.

Transcript Highlights:

• And that process is relatively simple: the applicant, who's the data center developer, provides information
• And that has been a process over 30 years.
• They get bids.
• The bids include not only the wage rate, but also the materials, et cetera, bid in for the various components
• and letting projects die in that process.

Summary: The committee hearing covered a long agenda of local government and housing-related bills, with the chair repeatedly noting the committee was operating without a quorum for much of the meeting. Several measures were heard with no opposition, including AB 2639 on Merced County flood control coordination, AB 1788 on allowing best-value contracting for general law cities and the San Gabriel Valley Council of Governments, AB 2058 on reducing duplicative permitting and inspection costs for factory-built housing, AB 2576 on clarifying historic resource protections in a housing law, AB 2568 on increasing the compensation cap for water district board members, AB 2224 on updating county recorder fees and requiring electronic recording, AB 2469 on water-supply review and cost responsibility for data centers, and AB 2397 on requiring local governments to justify denials of certain housing-finance decisions. Most of these bills were presented as targeted fixes to improve efficiency, reduce delays, or modernize outdated statutes, and the authors generally requested aye votes and noted committee amendments where applicable. The most extended debate centered on AB 1751, which would streamline approval of qualifying townhome projects while setting a $28 hourly minimum wage floor for construction workers on covered private projects. Supporters argued the bill would expand homeownership opportunities, raise wages for largely non-union residential workers, and preserve existing prevailing wage law while adding enforcement tools and developer liability. Opponents, including several building trades and labor organizations, argued it would undercut prevailing wage standards, create a race to the bottom, and potentially affect wage-setting more broadly. Committee members asked detailed questions about land-use barriers, the relationship to prevailing wage, and whether the bill would affect unionized work; the author and supporters responded that it applies narrowly to private for-sale townhome projects and does not alter prevailing wage requirements. AB 2469 also drew a substantive split. Supporters said data centers should be required to provide water-supply assessments before approval, pay for infrastructure they trigger, and account for impacts on overdrafted groundwater basins and local ratepayers. Opponents from the Chamber of Commerce, Data Center Coalition, counties, and tech groups argued existing law already covers water planning, that the bill imposes unique and burdensome requirements on one industry, and that some reporting provisions could raise security concerns. The author responded that the bill is about front-end planning and local accountability, not daily reporting, and emphasized the hyperlocal strain data centers can place on small water systems. No final votes were taken during the hearing because the committee lacked a quorum, though members repeatedly indicated support or intent to vote aye once a quorum was present.

Transcript Highlights:

• Bids and proposals, the process is cumbersome, and often they win simply because they're better at it
• You're in charge of this process. Yes, sir. I'd like to know the process you intend to follow.
• They're not in the bids and proposals and contracting area.
• We know that they are feeding sensitive information into that system where they go, and that that's information
• , they're thrown out, versus a compliant bid.

Committees: Senate Subcommittee on Cybersecurity , Senate Subcommittee on Personnel

Keywords: Steven Feinberg, Deputy Secretary of Defense, national security, budget cuts, military readiness, global threats, Department of Defense

Summary: The meeting primarily focused on the nomination of Steven Feinberg as Deputy Secretary of Defense. The committee emphasized the urgent need for strong leadership in response to a complex array of global threats posed by adversarial coalitions, including China, Russia, and Iran. The discussions highlighted concerns regarding budget cuts and personnel reductions within the Department of Defense, showcasing the challenges posed by the current economic context and the pressing need to maintain military readiness and capabilities. Various members expressed their apprehensions about how impending layoffs and budget reductions would impact the defense workforce and national security.

Transcript Highlights:

• We monitor CDCR's use-of-force review process, internal affairs investigation and discipline process,
• We monitor CDCR's use of force review process, internal fair investigation and discipline process, and
• person grievance process.
• Or do you have a process? Maybe you could describe for us what your process is?
• We think we can get the information we need more informally.

Transcript Highlights:

• Thank you. important information and it's not in important information and it's not in person,<00:49:
• </c><00:52:19.000><c> that</c> So, there is a there's a process that So, there is a there's a process
• However, where it becomes very competitive are the higher bids.
• ,</c> which is a competitive sealed bidding, which is a competitive sealed bidding, and<01:31:02.760>
• </c><01:31:52.080><c> Um</c> competitive are the um higher bids.

Bills: SB2580 , SB2578 , SB2259 , SB3084 , SB2816 , SB2928 , SB2075 , SB3322 , SB2377 , SB2436 , SB2835 , SB3248

Committee: House Economic Development & Technology

Summary: The committee opened by reviewing hearing procedures and then took up SB 2580, which concerns Hawaii’s film production tax credit and related incentives. Testimony was strongly supportive overall, with witnesses saying the measure would help attract productions, extend the sunset date, include streaming platforms, and strengthen the state’s competitiveness. Several supporters asked for cleanup language on grant administration, tax credit management, local-hire uplifts, and limits on third-party audit requirements for smaller productions. The state film office said the bill was generally strong but suggested clarifying language and noted that DBEDT and DOTAX already provide oversight of the current credit. No vote was taken in the transcript, but the bill drew broad support with a few comments and one opposition noted later in the hearing. The committee then heard SB 2578 SD1, a measure to create a film commission and related grant structure. Testifiers said the proposal would formalize industry input, improve accountability, and help the state compete globally, but they also raised concerns about how a new grant program would interact with the existing tax credit system. The film office said the grant program and tax credit should be separated operationally, that the advisory structure should include industry voices and possibly union representation, and that county film commissioner language may need technical adjustment. A testifier also suggested a Hawaii film museum and related tourism opportunities. The measure was described as having 42 supporters, one opposition, and five comments, with no final action shown. The committee next considered SB 2259, a dementia training measure. Supporters, including the bill’s drafter and the Alzheimer’s Association, described personal caregiving experiences and said free dementia training could help workers and families. Suggested amendments focused on clarifying the relationship between EOA and DBED and allowing retraining every two years because of workforce turnover. DBED said the bill is worthwhile but is not really an economic development initiative, and it should align with existing dementia programs and be easy for businesses to use, preferably online. The committee then moved to SB 3084 SD1, which HTDC said would expand its R&D matching program beyond SBIR to other federal research grants because of uncertainty at the federal level; the transcript ends as testimony begins, with no vote or final action recorded.

Bills: HB4274 , HB3076 , HB4358 , HB3312 , HB3288 , HB3885 , HB3147 , HB4299 , HB4265 , HB4266 , HB3011 , HB3143 , HB3144 , HB3881 , HB3519 , HB3522 , HB3530 , HB2976 , HB4459 , HB3142 , HB4316 , HB4338 , HB4230 , HB3985 , HB3883 , HB4335 , HB3416 , HB3417 , HB3418 , HB3619 , HB3624 , HB3463 , HB4423 , HB3342 , HB3645 , HB3647 , HB3887 , HB4430 , HB4431 , HB2964 , HB3834 , HB4193 , HB4272 , HB3277 , HB3148 , HB3651 , HB3323 , HB4287 , HB4105 , HB3304 , HB3345

Keywords: HB4274, Oklahoma schools, interdistrict transfer, open transfer, school enrollment, military families, active duty, National Guard, Reserve orders, military installation, residency requirements, district of choice, public school transfer, student transfer, special education, IEP, Section 504, military housing, base housing, electronic enrollment

Transcript Highlights:

• to actually submit bids.
• to actually submit bids.
• </c> administrative rule-making processes. administrative rule-making processes.
• </c> than continuing the 89-day hire process. than continuing the 89-day hire process.
• Can you just send me information?

Transcript Highlights:

• Green cards are in support, red cards are in opposition, white cards are for informational purposes only
• The third type was projects that bid under the budget. Those are the ones we like to see the most.
• Those are projects that simply bid low under their anticipated budget and had additional funds left in
• As time passes, some projects get delayed or some projects bid in the month of April and then come in
• As time passes, some projects get delayed or some projects bid in the month of April and then come in

Summary: The Ways and Means Committee met on May 26 and first took up Senate Bill 406, which authorizes the city of Slidell to seek voter approval for a local hotel and motel occupancy tax. The bill was described as a local measure giving the city council authority to place the tax on the ballot, with members noting that similar taxing authority exists in many other municipalities. Representative Wiley moved favorable passage, there was no objection, and the bill was reported favorably. The committee then received an update from the Division of Administration’s Office of Facility Planning and Control on capital outlay savings identified through cash-flow review and project “scrubbing.” Officials said they found about $50 million in savings from updated cash flows, over-appropriations, projects bid under budget, and reduced appropriations in bundled projects. They explained that bundling projects, including some LED-related projects, allows agencies to shift savings within a bundle and manage overruns or underruns more flexibly. Members praised the savings work but asked whether the process could be moved earlier so the House could benefit sooner, and whether similar reviews could be expanded to other administering agencies and non-state projects. One member raised concerns about whether some projects, including schools and certain NGO-related items, should qualify for capital outlay funding at all, and urged a review of the statutory definition and project approval criteria. Staff said they would look at the definition, review recommendations from prior discussions, and consider ways to tighten the process. The committee then adjourned without further action.

Transcript Highlights:

• So you feel like there would be adequate protections if sensitive information were to come out because
• So you feel like there would be adequate protections if sensitive information were to come out because
• Are you saying that there are no instances where this information should not remain undisclosed, that
• So I do think that that review process really allows us to ask each time, is there a new vendor?
• And they have the opportunity to bid and show us that.

Bills: SB1415 , SB1714 , SB1962 , SB26 , SB172

Committee: Senate Retirement and Government Resources

Summary: The Committee on Retirement and Government Resources heard several bills dealing with state employment, purchasing, and retirement policy. Senate Bill 1415, by Senator Brooks, would prohibit nondisclosure agreements when a state employee resigns or is terminated, with exceptions for statutorily protected confidentiality such as physician or attorney privilege. Members questioned how the bill would interact with whistleblower protections and sensitive information, but the bill passed 6-1. The committee then considered Senate Bill 1714, by Senator Jett, which would expand an existing state employee suggestion/incentive program to encourage agencies to identify cost savings and efficiencies, require agencies to review recommendations in good faith, and report back on accepted or rejected ideas. Members raised concerns about open meetings, employee notification, written documentation of suggestions, and possible disputes over the value of savings. The author agreed to work on amendments, the title was struck, and the bill passed as amended 5-2. Senate Bill 1962, by Senator Bullard, would move certain purchasing exemptions out of statute and into the administrative rules process so exemptions must be periodically renewed and justified. Supporters said this would reduce personality-driven exemptions and improve oversight, while concerns were raised about ongoing needs and emergency situations. The bill passed unanimously 7-0. The committee also passed Senate Bill 26, which would allow retired teachers to return to work after a 90-day break with a salary set by local districts and a 3% contribution back to the retirement system, and Senate Bill 172, which would tie cost-of-living adjustments for pension systems to funding benchmarks and a rolling average, rather than legislative discretion; both bills passed, with SB 26 passing 7-0 and SB 172 passing 6-1. The chair noted the committee expected at least one more meeting and hoped to finish the following week.

Transcript Highlights:

• dispute resolution process.
• dispute resolution process.
• Just another information as to active index wells, additional information so people make plans on a certain
• Reasons for one bid, an evaluation of appraisal. Thank you.
• bid, and an evaluation of appraisal.

Summary: The meeting was a rapid review of a very large bill package, with the chair repeatedly asking staff to keep descriptions high level and many bills placed on third-read consent or consent calendars. A major theme was artificial intelligence: bills would require minors to be told when they are interacting with AI, allow AI-assisted divorce arbitration by consent, create an AI education program, privilege certain AI communications, and require K-12 instruction on ethical and practical AI use. Other education measures addressed school district superintendents, health instruction, anti-Semitism prohibitions, fetal development standards, and school safety, including a bill allowing concealed firearms on school grounds under specified conditions. Several health and public safety bills were also discussed. These included funding and oversight measures for childhood cancer research, nursing care complaint timelines, firefighter cancer data collection, limits on pharmacy penalties, and a bill making it a felony to administer abortion-inducing drugs without consent. Members also heard bills on overtime wage enforcement, domestic violence evidence standards in parenting cases, probation limits for dangerous crimes against children, and a measure expanding manslaughter liability to online encouragement of teen suicide. One sponsor strongly opposed a provisional medical licensing bill for foreign-trained applicants, while other sponsors emphasized rural health access, nurse anesthetist reimbursement parity, and the need for a dental board member who is an oral surgeon. A large portion of the meeting focused on water, land, energy, and state agency oversight. Bills would streamline or change rules for small modular reactors, new power plants, water supply determinations, groundwater transportation fees, water hauling, and state land disposition. Members also considered measures affecting the State Land Department, including audits, oversight boards, continuation, land-use maps for data centers and energy projects, and rules for mineral leases and solar or wind siting. Other topics included wildlife and ranching, Mexican wolf policy, annexation, housing and development incentives, transportation and towing rules, digital driver licenses, and a proposed four-year moratorium on municipal and county fee, tax, and utility-rate increases, which drew questions about stakeholder input and the impact on enterprise funds and local utilities. No recorded roll-call votes were taken in the transcript; most items were simply presented, briefly discussed, and left on consent or calendar status, with one bill noted as held in rules and another pulled for further discussion.

Transcript Highlights:

• That helps inform our efforts. By approximately 38 percent. That helps inform our efforts.
• It's gone through the local planning process.
• The process at the MPO-TPO level differs for, Construction.
• The process at the MPO-TPO level differs for every region.
• They all have their own process.

Summary: The Transportation and Economic Development Budget Subcommittee heard an overview from FDOT Secretary Jared Perdue on the state’s transportation work program, with emphasis on the Moving Florida Forward initiative, major roadway projects, workforce needs, seaports, airports, spaceport infrastructure, and the role of MPOs/TPOs in planning. He said the $4 billion general revenue investment in Moving Florida Forward has been leveraged into a roughly $7 billion-plus program, with 20 projects underway and about 70% of the initiative expected to be under construction by year’s end. He highlighted I-4 as the centerpiece, describing a new procurement approach, phased delivery, and added lanes intended to provide congestion relief during construction. He also discussed a projected 38% growth in transportation workforce needs and proposed a Florida Transportation Academy and a research institute to support training and innovation. Tiffany King of the Florida Airports Council said Florida’s 128 public-use airports have about $5.7 billion in unfunded projects through 2029, and stressed that airport priorities include not only terminals and passenger capacity but also safety, security, gates, and environmental work. Michael Rubin of the Florida Ports Council said Florida’s 16 deepwater seaports now have a $195.9 billion economic impact, support about 1.2 million jobs, and generate $7.4 billion in state and local taxes; he noted that ports still have about $4 billion in project needs, including dredging and intermodal connections. Jeff Sheffield of the North Florida TPO described the value of regional, community-based planning and said his four-county TPO has helped align local priorities with FDOT funding. Members asked about whether the state is planning for advanced air mobility and “flying cars,” whether Moving Florida Forward bypassed MPOs, how long major projects take, cost escalation, regionalization of MPOs, port governance, airport governance, and the contractor qualification system. FDOT and the witnesses said the state is working on policy and planning for advanced air mobility, that Moving Florida Forward did not bypass MPOs because the projects were already locally prioritized, and that the main delay is funding rather than the planning process. They said long-range plans are updated regularly and can be amended when priorities change, and that regional MPO structures can improve coordination. The committee took no formal vote; the meeting concluded after questions and comments, including discussion of workforce training opportunities for incarcerated individuals and a motion to adjourn by the ranking member.

Transcript Highlights:

• If you have additional information you'd like to share or if you're unable to complete your remarks within
• hopefully apply it in the years ahead as we all, as members of the legislature, learned from the process
• You're going to bid it at $20 an hour? You're going to bid it a prevailing wage?
• you're going to bid it at $20 an hour you're going to bid it a prevailing wage so we believe the prevailing
• The process of collecting unemployment should not be difficult.

Committee: Joint Joint Committee on Labor and Workforce Development

Summary: The Joint Committee on Labor and Workforce Development held a hybrid hearing on legislation concerning unemployment insurance, non-compete agreements, prevailing wage, and minimum wage issues. Committee leaders outlined the hearing process, asked witnesses to keep oral testimony to three minutes, and invited written testimony through November 20. No votes were taken during the hearing; it ended with a motion to adjourn and notice of the next hearing on November 20. Much of the testimony focused on bills to expand unemployment insurance for striking workers, including H. 2168 and S. 1319. Labor leaders, union members, and legal advocates argued that workers who are out on strike for more than 30 days should be able to receive UI benefits, saying the policy would help workers and families meet basic expenses, reduce employers’ ability to “wait out” strikes, and encourage good-faith bargaining. Speakers cited recent strikes, including the Republic Services strike, and said the proposal would not meaningfully increase strike activity or strain the UI trust fund. Another major topic was minimum wage legislation, especially H. 2107/S. 1349 to raise the minimum wage to $20 by 2029 and index it to inflation, and H. 2191 to create a $25 enhanced care worker minimum wage. Supporters said current wages are not keeping pace with housing, food, and childcare costs, and that care workers, direct support staff, and human service employees face chronic vacancies, burnout, and turnover. Testimony also supported H. 2126 on prevailing wage by adding apprenticeship and training contributions to the wage calculation, and H. 2159 and S. 1363 on prevailing wage-related issues. One witness, Russell Beck, testified against S. 1336, which would ban non-competes, and against H. 2118, arguing Massachusetts’ current non-compete law is a balanced compromise that should not be disrupted.

Transcript Highlights:

• This bill creates a clear process in Idaho law for updating This bill creates a clear process in Idaho
• of getting competitive bids and selecting some of those competitive bids.
• It allows the state and different agencies to tie into those bids to get the advantage of a larger bid
• For example, you couldn't have a bid for a Kubota tractor and then, when you get the bid, change it into
• bidding state contracts.

Transcript Highlights:

• Just for informational purposes... ...purposes.
• lowest bid.
• , which is typically what our bidding laws require.
• move the motivation to get the best bid.
• In a situation like this, it's the best bid, lowest and best bid.

Bills: HB511 , HB972 , HB 1035 , HB2481 , HB2723 , HB2742 , HB2894 , HB2962 , HB3077 , HB3093 , HB3307 , HB3684 , HJR67 , HJR72

Committee: House Ways & Means

Keywords: ad valorem taxation, caregiver exemption, Medicaid, long-term services, tax relief, assisted living, housing support, property tax exemption, caregiver support, residence homestead, tax exemption, unpaid caregiver, state tax code, property tax, caregiver, waiting list, intellectual disability, developmental disability, ad valorem tax, family support

Transcript Highlights:

• We are in the process of hiring team members.
• There were also a few alternates that were presented by subcontractors during the bidding process, which
• We've had really good bids.
• And so the bids, we had one general contractor, one electrician come in for the bids.
• McCarthy is involved in the final design process.

Summary: The committee first approved the December 10 minutes and then received a DEQ base budget summary and agency overview. DEQ staff explained that the agency is largely federally and special funded, with major ongoing costs in salaries, operating expenses, grants, and continuing appropriations. Director Dave Glatt and accounting director Beth Jacobson highlighted core programs, the move to a new chemistry laboratory, the new state fuel inspection program, wastewater-related funding from HB 1577, and implementation of SB 2267 for on-site wastewater rules. They also noted the agency’s spending patterns, possible federal EPA cuts, and the likelihood of some fee adjustments or program changes if federal support declines. Members asked about DEQ’s travel, field offices, future staffing, and how the agency would respond to reduced federal regulation. DEQ said most staff are based in Bismarck, with field offices in Fargo, Sawyer, and Gwinner, and that travel is driven by inspections and spill response. Glatt said the agency would continue to rely on science and law, and that any future federal retrenchment could mean more state responsibility but likely not a wholesale increase in FTEs. The committee also discussed a feedlot enforcement case in the Minot area, with DEQ explaining its role in ensuring compliance, permitting, and animal-waste management standards. The Department of Health and Human Services then presented on FTE block grant reporting, TANF balances, child care transfers, and the Rural Health Transformation Program. Donna Ockland explained that no line-item transfers had occurred yet for the new rural health work, but about 33 positions were planned and some current staff time could be reimbursed through approved cost allocation. HHS also reviewed TANF’s frozen eligibility and block grant structure, the transfer of up to 30% of TANF funds to child care, and recent program changes that increased benefits and raised the income limit. Staff said the department is using TANF more strategically to support child care and other allowable uses, while still carrying over unused funds as many states do. Finally, Pat and HHS staff gave an update on the Rural Health Transformation Program, saying the first funding opportunity was being posted and that the state is on track to obligate the federal funds within the required timeline. They described priorities such as workforce retention, preceptor development, technical assistance for critical access hospitals, community wellness projects, and ambulance upgrades. Members asked about rural versus urban eligibility, immigrant recruitment, evaluation of year-two funding, and how the program would address varied local workforce needs. The meeting then shifted to an Office of Management and Budget update on the new State Hospital project, where Lindsay Ashley reported continued construction progress, updated cost information, and selected alternates, with photos and details showing work underway in multiple building sections.

Transcript Highlights:

• Based on our analysis, the process to fully transition schools to a new network design could take at
• that protects taxpayers and end process that protects taxpayers and end users.<00:07:21.280><c> And<
• ><c> bid</c><00:15:42.560><c> to</c><00:15:42.720><c> the</c> the price that we bid to the the price
• </c><00:20:27.520><c> So</c> water resource information system.
• So water resource information system.

Summary: The committee heard testimony from Michael McCurley, president of Zo Education and a senior vice president with Zo Group, about the company’s role in providing broadband and managed network services to Kentucky schools. He said Zo Education serves all Kentucky K-12 public school districts in partnership with the Kentucky Department of Education, offering more bandwidth at lower cost than the prior provider and also providing cybersecurity and network protection. He emphasized that reliable connectivity is essential for instruction, testing, remote coursework, and school administration. McCurley also addressed the ongoing contract dispute involving the Kentucky Communications Network Authority and Open Fiber Silicom, saying Zo Education is not a party to the litigation but is concerned about possible disruption to schools and students. In response to committee questions, he said the company incurred unexpected costs when it had to reroute connections and build alternate network paths, including one school move that cost more than $50,000 to serve a site generating under $2,000 per month. He said outages and incidents are more frequent when Kentucky Wired access is unavailable, and that Zo could not have bid at its current price without access to Kentucky Wired. Committee members discussed the broader implications of the dispute and the state’s broadband structure. Senator Williams said the committee’s priority is avoiding disruption to students and noted concerns about infrastructure purchases and upgrades tied to the network, saying he had not seen clear contractual support for some of the expenditures. He also referenced a future audit and said the committee should preserve options and taxpayer funds. The committee then reviewed its report to LRC, including changes related to infrastructure purchases and water asset management technology, and agreed to submit the report without a committee vote. The chair announced the next meeting would be in January, with no December meeting scheduled, and the committee adjourned.