Transcript Highlights:

• We want the best performance on the products that we have.
• One bank-owned life insurance policy for another, for a better-performing policy.
• And they're going to perform at 25% less than what the original projections are.
• He said they're only performing at 25% of what they were originally projected.
• The lack of coverage for these dental evaluations slows access to care.

Summary: The House Insurance Committee met on May 19 and first took up Senate Bill 509 on bank-owned life insurance. The bill would clarify that banks retain an insurable interest in former employees for purposes of exchanging underperforming bank-owned life insurance policies for better-performing ones. Members adopted a revised amendment set after withdrawing a prior version. Testimony focused heavily on whether consent from the insured former employee is required for any transfer or exchange, with supporters saying the bill is needed to address underperforming policies and opponents warning about unclear consent standards, data-transfer concerns, litigation risk, and possible federal tax issues. After debate, the committee reported SB 509 as amended by a 7-4 vote. The committee then heard Senate Bill 295, which requires health insurance coverage for medically necessary treatment for persons with acquired brain injuries, including cognitive rehabilitation and related services. Supporters from the Brain Injury Association of Louisiana and NeuroRestorative described gaps in post-acute care, high rates of discharge to unsafe home settings or nursing homes, and improved return-to-work outcomes when patients receive appropriate rehabilitation. An amendment was adopted to clarify federal essential health benefit limits and remove certain language, reducing the fiscal note to zero. The bill was then reported as amended without objection. Next, the committee considered Senate Bill 155, which requires coverage for medically necessary dental procedures needed for cancer treatment clearance, such as exams, imaging, and extractions. Cancer advocates, oncologists, and dental representatives said untreated dental problems can delay chemotherapy or radiation and lead to worse outcomes and higher costs. Cleanup amendments were adopted, and the bill was reported as amended. The committee also advanced Senate Bill 465, which tightens prompt-payment deadlines for health insurers, adds pharmacy payment provisions, and creates a recoupment timeline for dental claims; after technical and substantive amendments, it was reported as amended. Finally, the committee approved Senate Bill 276, creating a pre-appointment affidavit process for bail bond producers to ensure prior premiums, shortages, and forfeitures are resolved before a new insurer appointment, and House Resolution 260, which urges the Department of Insurance to study how out-of-network medical billing affects auto insurance rates. Both measures were reported favorably or as amended, and the committee adjourned after a motion to do so.

Transcript Highlights:

• How often are we evaluating that trend if it's going down?”
• Regional center performance: we now have a base regional center contract, we have a regional center performance
• contract, and we have regional center performance measures.
• A performance measure without enforcement is just paperwork.
• For the people, the community is asking urgently to evaluate your work.

Keywords: 987, senate, all

Transcript Highlights:

• It requires outcome-based reporting and independent evaluation.
• House Bill 2606 removes some reporting requirements, modifies the office's performance measures, and
• Second, five performance measures are added to the office.
• So this bill directly responds to JLARC's 2025 performance audit of OPD, which found that the office
• , supports performance measures that capture improvements in agency privacy practices, training, and

Summary: The Technology, Economic Development, and Veterans Committee first met in executive session on House Bills 2157, 2351, 2365, 2357, and 2446. Staff briefed proposed substitutes and amendments for each bill. HB 2157, concerning high-risk AI systems, was amended to exempt activities regulated by the Fair Credit Reporting Act and covered entities under HIPAA; members discussed balancing consumer protections with flexibility for developers and deployers. HB 2351, addressing protections for emergency responders and emergency operations, was described as clarifying definitions and procedures, including a mental health crisis defense and changes to emergency operation zone notifications; some members raised concerns about deconfliction and implementation details. HB 2365, on digital equity, was amended with several definitional and data-sharing proposals, though some amendments were rejected over fiscal concerns. HB 2357, creating the Washington Division of Civil Air Patrol within the Military Department, passed without amendment. HB 2446, on developing a quantum technology industry strategy, was amended to extend the strategy deadline, broaden who Commerce may contract with, and correct terminology; members noted concerns about industry involvement in the strategic plan and fiscal impacts. All five bills were reported out of committee with do pass recommendations, with recorded votes of 8-5 on HB 2157, HB 2351, and HB 2365, unanimous support for HB 2357, and 12-1 for HB 2446. The committee then held a public hearing on HB 2523, which would make the community reinvestment program ongoing, require periodic updates and reporting, and direct a study of fund distribution and use. Testifiers from workforce boards, tribal programs, reentry services, community organizations, and Commerce described successful uses of the program for job training, reentry, small business support, legal services, and economic mobility, and urged the bill’s passage. Some suggested strengthening accountability, reporting, and access for new organizations. Commerce staff said the program has served more than 190,000 people and supported over 400 organizations, and asked for technical adjustments to keep administrative costs low. The bill was then closed for hearing. The committee also heard HB 2606, which would revise the Office of Privacy and Data Protection’s duties and performance measures, remove some reporting requirements, and add review of agency AI projects. The prime sponsor described it as a “stay-in-your-lane” cleanup bill responding to JLARC recommendations, and the state chief privacy officer testified in support, saying the office could implement the changes within existing resources. After questions about local government support and public resources, the hearing on HB 2606 was closed and the committee adjourned.

Transcript Highlights:

• So we're talking about maybe having some dashboards and some program evaluators.
• So we have one vacancy to fill there in our policy and program evaluation...
• So we have one vacancy to fill there. in our policy and program evaluation. ...person.
• In our Policy and Program Evaluation Division, our goal is to have 15 positions in there.
• of child care programs. so that's for evaluation of child care programs.

Keywords: 908, all

Summary: The Leadership Division of the Budget Section approved the prior meeting minutes and then received an update from Senator Jonathan Sickler on the Cash Management Board’s interim work under House Bill 1278. He said the board has reviewed state cash, investments, and liquidity across agencies and concluded the state’s overall mix of long-term and short-term assets is appropriate, with about $35 billion in total liquid assets and investments and roughly 89% in longer-term investments. He highlighted process improvements already underway, including replacing more than 500 six-month CDs with a special-rate savings account to reduce administrative work, and said the board sees opportunities to improve forecasting, automation, and statewide coordination. Members asked about whether the CD change would increase returns, how the Legacy Fund transfer for the homestead tax relief bill affected earnings, and whether more state cash could be consolidated or better managed through BND; Sickler and BND staff said those issues are being studied and may lead to legislation for the 2027 session. Representative Nathan Toman then updated the committee on the Task Force on Government Efficiency. He said the group has focused less on cutting dollars and more on defining metrics and asking how the legislature knows whether programs are working. The task force is pushing a standard set of questions for new or expanding programs—who is affected, expected outcomes, alternatives, how success will be measured, and full funding—and OMB has agreed to require those answers in future budget requests. Members discussed possible use of dashboards, program evaluators, AI tools, and possible rule or statutory changes to require performance measurement. Toman said the task force will continue meeting with agencies such as the courts, university system, auditor, HHS, Commerce, and ITD to identify workflow bottlenecks and potential efficiencies. Phil Davis of Job Service North Dakota gave a workforce update, reporting that North Dakota’s unemployment rate is 2.5% and labor force participation is about 68.7%, both well above national performance. He described Job Service’s 15 workforce programs, including H-2A housing inspections for foreign agricultural workers, the job placement partnership program with DOCR, WOTC, and other federal and state workforce efforts. Davis said the agency served more than 11,000 individuals in 2025, operates nine workforce centers, and tracks outcomes through quarterly and annual reporting. In response to questions, he said job openings data reflect only positions in the system and may understate actual hiring needs, that child care and other assistance programs could be better tied to employment outcomes, and that the DOCR partnership has shown strong results with lower recidivism and higher earnings. He also said the H-2A inspection workload is growing quickly and additional staffing or less frequent federal inspection requirements could help. Allen Knutson then presented S&P Global’s updated revenue forecast. He said oil prices have risen sharply since the prior month’s outlook, improving the state’s near-term revenue picture, though the economy remains volatile and agriculture is facing weaker commodity prices. Based on the updated forecast, total major tax revenues for the current biennium are projected to be about $89 million above the legislative forecast, and the next biennium could be about $500 million higher, though that estimate is preliminary and may change. He also walked through an alternate oil-price scenario showing significantly higher oil and gas collections and a larger Strategic Investment Fund balance if prices remain elevated. Members asked whether another forecast should be requested once oil markets stabilize and about tribal allocation changes in the alternative scenario; Knutson said additional updates are possible through OMB and future forecast cycles.

Transcript Highlights:

• So the first question was about current performance standards for 988 centers and whether the centers
• And we do closely track 988 center performance using key performance indicators, or KPIs, that are established
• I would also want to note that these performance targets are not really tied to compliance actions.
• We also evaluate programs so California can learn from implementation, improve performance over time,
• We also evaluate programs so California can learn from implementation, improve performance over time,

Keywords: 988, house, all

Transcript Highlights:

• performance.
• In general, most campuses weren't excluding programs from evaluations.
• question is: does the board evaluate it on the impact...
• And if they're not performing, they move on and they develop new things.
• You're always looking to kind of cut the fat, or the low performers leave and the high performers stay

Summary: The Higher Ed Funding Committee met to review a proposed process for identifying and addressing low-producing academic programs, then moved into discussion of draft funding formulas for the university system. Lisa Johnson of the ND University System described how other states and systems define low-producing programs, emphasizing multi-year enrollment and completion thresholds, cost and workforce review, and the role of governing boards. She reported that North Dakota institutions already review programs in varying cycles, often use shared resources and stackable credentials to keep low-enrollment programs viable, and cited recent system actions over five years: 100 programs placed on inactivation, 75 terminated, and 384 new programs created. Committee members raised concerns about workforce-critical programs, duplication, exemptions, and whether the legislature or the State Board of Higher Education should drive the process. The chair said he wanted the board to bring a detailed proposal to the June meeting and suggested the legislature may use funding leverage, including a possible holdback, to encourage the review process. The committee then heard a Legislative Council presentation on a draft funding formula for UND and NDSU. The proposal used fall census FTE enrollment, with a placeholder rate of $7,000 per undergraduate FTE and $10,500 per graduate/professional FTE, plus incentives for completions in high-demand fields and research productivity. Alex from Legislative Council explained that the formula also included separate treatment for research funding, external grants, and capital building tiers, and that the MD program at UND would remain fixed funding outside the formula. Members questioned the use of the placeholder rates, the in-demand program list, the treatment of external grants, and how the proposal compared with current appropriations. The chair noted that the formula numbers were illustrative and not final budget amounts. A second draft formula for the other nine institutions was also reviewed. It used fall census FTE with no weighted economic factor, a higher undergraduate rate of $8,750 per FTE, and completion incentives for in-demand credentials and all other credentials. Members noted that the proposal would benefit some institutions, such as Bismarck State College, while reducing funding for others, such as Mayville State, and questioned whether the same structure should apply across institutions with very different missions and sizes. Committee discussion focused on fairness, hold-harmless concerns, and whether the nine institutions should be grouped differently. The committee did not take formal action, but the chair indicated the formulas would continue to be discussed later in the meeting and in future work.

Transcript Highlights:

• and have the resources to perform at their maximum.
• and have the resources to perform at their maximum.
• So with that, let's go ahead and start. ...the resources to perform at their maximum.
• The preeminent statute was enacted about a year before performance funding.
• They will be evaluated on the current metrics. On the current metrics.

Summary: The Appropriations Committee on Higher Education received a presentation from Tim Jones, Senior Vice Chancellor and CFO for the State University System of Florida, on the system’s funding methodology, budget structure, tuition, and performance-based funding. He outlined the system’s scale, including 12 universities, more than 430,000 students taking classes, about 78,000 employees, and a roughly $20 billion operating budget. He also reviewed tuition levels, noting Florida’s low resident undergraduate tuition, the lack of tuition increases since 2013, and the distinction between state-set resident tuition and Board of Governors authority over other tuition categories. Jones described several funding components, including performance funding, preeminence funding, faculty recruitment and retention programs, universities of distinction, nursing pipeline and matching programs, and operational enhancements. He explained that performance funding is based on a 100-point model tied to retention, graduation, employment, and other metrics, with student success plans required if scores decline or fall below 70 points. He said the current performance funding allocation is $350 million and the legislative budget request seeks $400 million. He also said the new SUS 30 strategic plan will lead to updates in the performance metrics and benchmarks, with some changes possibly phased in over time. Senators asked questions about how the new strategic plan will affect future scoring, how long universities have to improve after declining scores, and how out-of-state enrollment and tuition are handled. Jones said universities will be evaluated on the current metrics for the upcoming budget cycle, while the new plan’s changes will be developed later and may include glide paths. He also said there is no statutory cap on nonresident students, though the Board of Governors has a 10% systemwide guideline under discussion, and that graduate out-of-state tuition varies by program and requires institutional and Board of Governors approval. No votes were taken, no public testimony was offered, and the committee adjourned.

Transcript Highlights:

• </c> performing students internationally. performing students internationally.
• </c> as demonstrated by high performing as demonstrated by high performing countries<00:15:29.839><c>
• And I hate to see that option taken away as an evaluator.
• And this is a way to evaluate the program.
• We often look at evaluate the program.

Keywords: 928, house, all

Summary: The committee held a hearing on House Bill 1571, which would direct the Department of Education to review and revise statewide academic standards and curriculum and make an appropriation. Representative Kristen Noble, the sponsor, said the bill is intended to update outdated standards, especially in math, and to have the department create a list of high-quality curriculum and materials aligned to the revised standards. She noted she would likely amend the bill to change a requirement that districts “shall” select from the list to “may,” and said a misplaced crossed-out section would need to be restored and moved by amendment. She also said assessments would need to be updated to match any new standards. Testimony from Marie Banfield strongly supported the bill and the move away from a mandate, arguing that current standards are outdated and that Common Core and related standards have not improved student outcomes. She criticized the math standards for emphasizing multiple strategies and written explanations over computation, and said stronger standards would better support students, including those with learning or communication challenges. She also argued that New Hampshire should follow examples such as Massachusetts, which she said used rigorous standards successfully. Nate Green of the Department of Education did not take a position on the bill but explained that the bill would affect statewide academic standards, state assessments, and potentially federal compliance. He distinguished academic standards from minimum standards in statute, said any standards revision would require work with content experts, State Board approval, and then a corresponding assessment update that could take about two years. He estimated assessment development costs could range from about $200,000 to $500,000 for minor revisions and $1 million to $2 million for a wholesale new set of standards. He also said the bill would apply to public and charter public schools, not private or homeschool students, and that the department does not currently provide a statewide list of curriculum materials because curriculum decisions have historically been local.

Transcript Highlights:

• </c> Kids referred for an autism evaluation Kids referred for an autism evaluation by<01:54:23.840><c
• </c> evaluate every child for dyslexia. evaluate every child for dyslexia.
• Because part of their evaluation process could have been an evaluation by a psychologist, for example
• ,</c> go back to a district to be evaluated, go back to a district to be evaluated, the<02:50:12.160>
• Sources of educational performance.

Keywords: 1189, house, all

Summary: The commission meeting focused on reviewing and correcting draft minutes and then working through a draft report on the cost of special education. Members made mostly clerical corrections, including clarifying references to Spalding, fixing acronyms such as LETRS, and cleaning up membership titles and appointee roles to match SB 57. The minutes were approved as amended, with some members abstaining because they were not present at the prior meeting. The chair also noted the commission’s deadline to complete findings and recommendations by July 1 and said the final report must be delivered to legislative leaders, the governor, the state librarian, and others. The main substantive discussion centered on the report’s findings about special education funding. Members agreed the report should emphasize that the commission was created to study the cost of special education and reduce reliance on local property taxes. One draft section described FY24 special education funding as coming from three primary state and federal sources totaling about $152 million, or roughly 15% of annual costs, with the remaining 85% paid by local school districts through property tax revenue, estimated at about $825 million. Members discussed adding historical or longitudinal data to show trends over time, and some suggested attaching charts or tables showing funding over the last 20 to 30 years. A second major topic was demographic data. The draft noted that statewide K-12 enrollment has declined since 2003 while the number and share of students with IEPs has increased. Members questioned whether the data compared like with like, especially given the growth of Education Freedom Accounts and charter school enrollment, and whether the figures included or excluded those students. Several members asked for clearer sourcing from the Department of Education and suggested keeping a list of unresolved questions, including the impact of the shift from ADMA to ADMR and the effect of the EFA program. The discussion ended with agreement to continue refining the report and to gather additional attachments and clarifications before finalizing recommendations.

Transcript Highlights:

• Today to share with you the results of the preliminary 2025 actuarial evaluation.
• The results from that will then be folded into our 2025 actuarial evaluation report.
• There was an external audit performed of the demographic experience study.
• An audit was performed of the demographic experience study. That audit is now complete.
• Now, some of this desire could be tied to market conditions or performance at the time.

Keywords: 904, all

Transcript Highlights:

• </c> performing students internationally. performing students internationally.
• </c> as demonstrated by high performing as demonstrated by high performing countries<00:15:29.839><c>
• And this is a way to evaluate the program.
• Uh the um there are families evaluator.
• We often look at evaluate the program.

Keywords: 1189, house, all

Transcript Highlights:

• We didn't have these devices that had been type evaluated. They are now being type evaluated.
• We didn't have these devices that had been type evaluated. They are now being type evaluated.
• We didn't have these devices that had been type evaluated. They are now being type evaluated.
• We didn't have these devices that had been type evaluated. They are now being type evaluated.
• We didn't have test evaluated.

Keywords: 1189, house, all

Summary: The committee met in a transportation work session and executive session, with the chair explaining the format change to allow fuller discussion and possible expert input before votes. The committee first took up House Bill 209, which would have allowed a new vehicle purchased in the model year or before to be inspected in the second year after purchase. Members said the bill was rendered unnecessary by the broader repeal of vehicle inspections, and the committee voted 16-0 to deem it inexpedient to legislate (ITL), with consent. The same outcome followed for House Bill 212, which would have allowed a 180-day operation waiver when a motor vehicle failed an emissions control test, and House Bill 533, which concerned civilian employees and commercial truck inspections. In both cases, members said the inspection repeal made the bills unnecessary, and in the commercial truck bill there were also concerns that the language did not fit federal requirements and referenced state inspection laws rather than federal ones. Both bills were voted ITL 16-0 and adopted by consent. House Bill 298, dealing with vehicle identification number-related issues and antique vehicle authenticity, also received an ITL recommendation 16-0. Members said the proposal raised fraud concerns and could affect the value and authenticity of antique vehicles, and several said the bill needed more work before any future consideration. The committee then moved to Senate Bill 150, which would define electric vehicle charging stations and establish annual testing fees for the Division of Weights and Measures. That bill drew the most discussion: Representative Sykes described a personal experience with a malfunctioning charging station and a large, unclear bill, arguing that consumer protection regulation is needed. Representative Miller said the fee structure seemed high compared with other inspections and that third-party inspectors were not allowed, though he acknowledged some need for consumer protection. Senator David Watters, the sponsor, said the bill should be improved and suggested a lower annual fee and a fund-based approach to build an inspection program over time. Cheryl, the director of Weights and Measures, testified that the division needs authority, staffing, licensing categories, and expensive test equipment to oversee EV chargers, and that current rules do not adequately cover this emerging technology.

Transcript Highlights:

• Some of the best people came over with it performing programs back in the early NINETIES today.
• What's the performance in that process? What is this world going to do for you?
• The remaining 12 positions are those that are under further review by the department evaluation.
• As you know, the Public Service commission staff performs highly technical and critical work.
• So the evaluation of the need for the positions is ongoing.

Transcript Highlights:

• Our next item is the ADE school safety program performance audit, and we will have the Office of the
• I don't know if that's good enough for us to evaluate whether the program's working. Mr.
• They couldn't perform their duties. In this case, what we have is a programmatic hold.
• Those two will be supported by two research and evaluation specialists.
• I know that two of the FTE positions are program evaluator specialists.

Summary: The committee began with member and staff introductions, then acted as the Education Committee of Reference for three required reviews. The first was the Credit Enhancement Eligibility Board sunset review. A governor’s office representative explained the board was created in 2016 to help qualifying schools, mostly charter schools, obtain lower-cost financing by guaranteeing debt with a $100 million fund. He said the board has approved 15 projects, has not met recently because it is at its statutory leverage limit, and has no dedicated staff or budget. Members supported continuation, and the committee voted by voice vote to recommend the board be continued for 10 years, until July 1, 2036. The committee then heard the sunset review of the Western Interstate Commission for Higher Education (WICHE). WICHE leadership described its regional higher education compact and its student exchange and cost-savings programs, including WUE, WRGP, and PSEP. They said the programs save Arizona students money, bring students into Arizona institutions, and help address workforce shortages, especially in health care. A WICHE commissioner and the Arizona Board of Regents executive director also testified in support, emphasizing benefits for Arizona students, universities, and workforce pipelines. The committee voted by voice vote to recommend WICHE be continued for 10 years, until July 1, 2036. The final item was the Auditor General’s performance audit of the Arizona Department of Education school safety program. The audit found the program had grown to more than $128 million and funded over 1,000 school safety positions, but ADE did not ensure many sampled schools complied with requirements such as operational plans, safety teams, annual training, activity logs, and reimbursement documentation. The Auditor General said the department relied too heavily on written attestations and lacked sufficient monitoring and guidance, and recommended stronger oversight, written procedures, and better review of reimbursements. ADE’s school safety director responded that the department had expanded training and documentation systems, was implementing the audit recommendations, and had begun risk-based monitoring; he also said the department would add staff and invited the Auditor General to meet with ADE and ASU’s evaluator. After the audit discussion, the committee began considering House Bill 2142, which would create a school safety center at ADE and allow up to 10% of school safety program funds for administration, with members raising questions about monitoring emergency operations plans, disability-related evacuation planning, and coordination with other state agencies.

Transcript Highlights:

• Our next item is the ADE school safety program performance audit, and we will have the Office of the
• I don't know if that's good enough for us to evaluate whether the program is working. Mr.
• They couldn't perform their duties. In this case, what we have is a programmatic hold.
• Those two will be supported by two research and evaluation specialists.
• I know that two of the FTE positions are program evaluator specialists.

Keywords: 1182, all

Transcript Highlights:

• </c><00:52:32.000><c> their</c> operational structure and evaluate their operational structure and evaluate
• 00:52:33.040><c> of</c><00:52:33.200><c> the</c> performance through the period of the performance through
• </c> Tilly will be on site in July to perform Tilly will be on site in July to perform an<01:01:14.240
• I mean, some of they were performance.
• </c><01:01:54.480><c> Um,</c> their final performance review. Um, their final performance review.

Keywords: 958, all

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

Transcript Highlights:

• and that doesn't include our internal staffing evaluation costs in partnership with external evaluators
• might already have through their comprehensive medical evaluation.
• So the trailer bill will route SIPF medical evaluations through the QME process.
• My name is Scott Warren, and I'm a qualified medical evaluator. Three years ago, I evaluated Ms.
• I perform SIBTF evaluations, so... Hello, I'm Dr. Stefan Johnson. I perform SIBTF evaluation.

Summary: The subcommittee heard a series of budget and trailer bill presentations focused on labor and public employment programs. The first item covered EDD Next modernization, where EDD described progress on customer service improvements, fraud prevention, language access, and the Integrated Claims Management System. The LAO urged stronger legislative oversight as the project enters its most difficult phase, and members questioned the revised schedule, total cost, change orders, stress testing, SB 1090 implementation, and how race and ethnicity data will be protected. EDD said the overall project cost remains about $1.2 billion, that the work is being phased with disability insurance and paid family leave first, and that fraud has been greatly reduced since pandemic-era programs ended. Members also asked for follow-up information on SB 590 outreach and equity impacts. The committee then reviewed the California Workforce Development Board’s request to reduce staffing as one-time grant workloads wind down, along with trailer bill language to streamline reporting requirements. The board and Department of Finance said the staffing reductions reflect the end of surge funding and that the proposal would consolidate roughly 10 to 12 reports into one annual report, with additional reporting only if new funds are appropriated for certain programs. Senator Durazo questioned the policy direction of reducing workforce staffing, while the administration said the positions were tied to temporary grant programs and that current staffing is sufficient for ongoing duties. Members also asked about the board’s role in AI-related workforce planning and the rationale for using state funds for the High Road Construction Careers Program. A major portion of the hearing focused on the Subsequent Injury Benefits Trust Fund reforms and related staffing request at DIR. The administration and LAO described rapid growth in applications, backlog, and liabilities, saying the program’s eligibility has expanded beyond its original intent and that liabilities could reach about $30 billion by 2030 without reform. The trailer bill would tighten eligibility, apply the changes to open cases, and use the QME process and contemporaneous evidence to document preexisting disabilities. Members raised concerns about fairness to pending claimants, evaluator capacity, and the relationship to other SIBTF legislation, while the LAO said the proposal largely aligns with its prior recommendations. DIR also presented a request to eliminate vacant positions under a statewide vacancy sweep, which drew criticism from members who argued the cuts could weaken enforcement and backlog reduction efforts; the committee asked DIR to return with more detail on impacts and on its use of temporary-help authority. The final items addressed a request for additional Cal/OSHA investigative staff and a trailer bill to make permanent the revised Workers’ Compensation Appeals Board petition timeline. DIR said the BOI staffing would help investigate fatalities and serious injuries more quickly, while members emphasized the importance of family contact and timely investigations. For the WCAB item, the chair explained that the 2024 change to Labor Code section 5909, which starts the 60-day decision clock when a case is transmitted rather than when a petition is filed, has reduced pending cases and should be made permanent; the remaining backlog was reported at 460 cases, down from 637 before the change.

Transcript Highlights:

• We have authority to rely on other performance indicators, and so we've adopted a kind of rule-making
• But will you provide a list of the standards that you're looking at a performance measure?
• Texas 8th grade math performance has not... ...increased a commiserate 48%.
• You will begin getting special education. for that child once that evaluation is done.
• evaluations, studies, and you will see some smaller projects.

Keywords: infrastructure, water supply, flood mitigation, Texas Water Fund, community projects, funding allocations

Summary: During this committee meeting, the focus was on discussing critical infrastructure funding, especially related to water supply and flood mitigation projects. Chairwoman Stepney and the Water Development Board presented extensive details regarding the Texas Water Fund, which included $1 billion appropriated to assist various financial programs and tackle pressing water and wastewater issues. Additionally, funding allocations aimed at compromising the state's flood risk and improving water conservation were hotly debated, emphasizing collaboration among committee members and the necessity of addressing community needs in such projects.

Transcript Highlights:

• You're going to have the professionals that are involved in evaluating the efficacy and the advancement
• We did add in some performance guarantees around response times.
• Just, we've added in performance guarantees, but everything is as it was. Thank you. Any questions?
• I do understand and appreciate it was their first... ...and I understand you've got those performance
• Some of these properties have not been evaluated in 20-some-odd years; schools that haven't been evaluated

Summary: The State Insurance Programs Oversight Subcommittee met on June 17 and reviewed a series of Employee Benefits Division and Office of Property Risk items. The committee approved formulary changes for March and April that favored lower-cost generics, removed some new-to-market drugs from coverage pending more evidence, and made maintenance changes to migraine and diabetes medications. Members also approved a cell and gene therapy policy that would route those therapies through prior authorization rather than automatic coverage; officials said the process should not delay urgent cases and that no current members would be affected. The committee then reviewed a UAMS pharmacy benefit consultant contract amendment, but after extended discussion about the written scope and dollar amounts, the motion was approved with the understanding that any use of optional services would return to the committee for further review. The committee also reviewed the U.S. Able Mutual/Blue Advantage third-party administration contract and the CompSack employee assistance program contract, which officials said would reduce per-member costs and add services. The subcommittee approved proposed 2027 rates for state employees and public employees, with a 9.8% increase for state employees and a 4.9% increase for public school employees. Officials also reported that the UnitedHealthcare rebid was in its final negotiation stage and would return in August, with medical and pharmacy coverage split as previously recommended. In response to questions, the director said the division was considering broader preventive-care offerings, including weight-loss drug coverage, but would proceed cautiously and with strong utilization controls and holistic support if such a program were adopted. On the property risk side, the committee reviewed permanent rules making prior temporary rules permanent, a contingency-fee subrogation contract, and renewals for claims management, actuarial services, and investment management. Members raised concerns about Sedgwick’s claim-adjustment timeliness and communication with school districts after severe weather events; officials said performance guarantees and communication expectations had been strengthened, but the renewal was kept at three years for continuity. Finally, the committee approved 2026-27 captive insurance program rates, which included no change to minimum deductibles, a 10% overall rate reduction, and bucketed rate changes by entity type. Officials said the captive program was working as intended, with improved actuarial support and claims experience, and the meeting adjourned after the approvals.

Transcript Highlights:

• Today is the first of two May Revise hearings so we can continue to take part in the budget process, evaluate
• The initial assessments, along with subsequent assessment performed by CHP in late 2021, have identified
• any financial penalties for non-performance to be refunded directly to the state.
• This position will be the dedicated program manager to oversee vendor performance.
• Parking spaces and our kind of holistic evaluation of return-to-work conversations.

Summary: The Assembly Budget Subcommittee 5 on State Administration held a May Revise hearing focused on state administration proposals, with the chair noting no actions would be taken and all items would remain open. The committee heard presentations on a range of budget proposals, including technical adjustments for the Governor’s Office of Service and Community Engagement and the California Workforce Development Board, security and election-related funding for the Secretary of State, modernization and loan-backfill requests for the Department of Consumer Affairs, and multiple Employment Development Department updates covering EDD Next, UI and DI/PFL benefit estimates, workforce funding, and an EMT training reappropriation. Several items drew discussion from the LAO and committee members. The LAO generally supported technical or modernization items such as PERB’s implementation requests, GoServe’s College Corps adjustment, the Secretary of State’s security and HAVA grant items, and the Board of Pharmacy modernization proposal, but raised concerns about the Bureau for Private Postsecondary Education’s proposed $10 million General Fund backfill and interest-free loan language. For EDD, the LAO flagged the size of the DI/PFL benefit adjustment and the unusual structure of the document management system proposal within EDD Next, while EDD said the changes reflected higher participation and benefit levels after SB 951 and ongoing modernization needs. The Department of Industrial Relations drew the most extensive questioning. It proposed funding for legal unit reclassifications, EAMS and Cal/OSHA data modernization, a new Cal/OSHA emerging technologies unit, a COYA reappropriation, and trailer bill changes requiring electronic payment of employer assessments and adjusting the Workers’ Compensation Appeals Board timeline. Members pressed DIR on high vacancy rates, long wage theft and workers’ compensation backlogs, low collection rates for fines, and the need for clearer workload and outcome measures. DIR said the requests were intended to improve efficiency, support audits and corrective action plans, and better address emerging workplace risks, while the LAO said the workload drivers behind delays remain unclear. The hearing also included support for CalHR’s employee assistance program consolidation and CDT’s proposal to expand “Poppy,” a statewide generative AI assistant for state employees.