Transcript Highlights:

• state energy office we stand on a written<00:21:13.919><c> testimony</c><00:21:14.400><c> and</c><00
• The State Energy Office has suggested that we like this other bill, 743, more than this particular bill
• The State Energy Office has suggested that we like this other bill, 743, more than this particular bill
• The State Energy Office has suggested that we like this other bill, 743, more than this particular bill
• The State Energy Office has suggested that we like this other bill, 743, more than this particular bill

Committee: Senate Labor and Technology

Keywords: 912, senate, all

Summary: The joint hearing covered Senate Bills 470, 828, 730, and 1383. SB 470 would create a deferred retirement option program for police officers. The Employees Retirement System warned it could worsen the system’s $14.1 billion unfunded liability by stopping employer and employee contributions during the DROP period, and the Attorney General raised possible tax-qualified status, Internal Revenue Code, and age-discrimination concerns. Police and other supporters testified in favor, but the committees ultimately recommended deferring the bill indefinitely. SB 828 would expand workers’ compensation medical benefits for firefighters to cover an additional respiratory condition. The Department of Labor and Industrial Relations and the Hawaii Firefighters Association supported the measure, citing occupational exposure and health risks. The committees recommended passage with amendments, and the motion was adopted by both committees. SB 730, which concerns allowance on service retirements, drew support from the Department of Human Resources Development and the Department of Law Enforcement, but also comments from the Attorney General and ERS. DHRD said the bill could help recruitment and retention but requested more time to work on language with ERS, Budget and Finance, and the AG’s office. The committees postponed decision-making until Friday, February 7, at 3:15 p.m. in Conference Room 225. SB 1383, relating to fire protection, received broad support from the Governor’s office, Department of Defense, DLNR, Hawaiian Electric, and others. The committees agreed to pass it with amendments, including language suggested by the Hawaii Insurance Council on wildfire-related insurance issues and a committee report link to the Lina fire forward-looking report, phase three. The amended recommendation was adopted by both committees. Later in the meeting, the committees also heard SB 1360 and SB 1361 on ERS administrative and reporting matters, SB 340 on HLRB enforcement authority, and SB 997 on energy; SB 1360 and SB 1361 were presented as housekeeping measures, SB 340 drew disagreement between the Attorney General and HLRB over enforcement authority, and SB 997 was amended to incorporate prevailing-wage renewable energy rate language from SB 743 and then passed with amendments.

Transcript Highlights:

• Other states, nine states that currently have no personal income tax. We need to do it.
• This has a huge percent of this nation's energy in that state.
• in place—32 states in total.
• Even the realtors didn't even state it. No one stated it because no one knew about it.
• Even the realtors didn't even state it. No one stated it because no one knew about it.

Committee: House Commerce

Keywords: 959, house, all

Transcript Highlights:

• I pledge allegiance to the flag of the United States of America and to the republic for which it stands
• He appreciates all the members and staff in this chamber who strive to make our state such a wonderful
• Speaker, Arizona is one of the few states in the United States that has a history of going to war with
• another state, and perhaps the only state in this country that went to war with another state outside
• Then they beat Mountain Ridge 5 to 1 Saturday night in the state finals.

Summary: The House convened, opened with prayer and the Pledge, approved the prior journal, and recognized the Doctor of the Day, Dr. Timothy Beger. Members also introduced several guests and groups in the gallery, including rare disease advocates, community leader Roberto Apodaca Revelez, Lucid Motors representatives, and a pediatrician visiting for Pediatrics Day at the Capitol. Attendance was recorded at 55 present, 0 absent, and 5 excused. In Committee of the Whole, the House considered HB 2022, HB 2122, and HB 2138. HB 2022, dealing with election procedures, was amended to extend the overseas military voter deadline fix and clarify that party observers may be present at all voting locations; it received a do pass recommendation. HB 2122, a technical reciprocity correction for engineers, also received a do pass recommendation. HB 2138, a cleanup bill clarifying that firefighters are covered under workers’ compensation alongside police officers, was amended and recommended do pass. On third reading, the House passed HB 2022 as an emergency measure by 56-0, HB 2046 on probation by 56-0, and HB 2116 appropriating $1 million to the Colorado River Litigation Fund by 56-0. Members speaking on HB 2116 emphasized protecting Arizona’s Colorado River water rights and described the fund as a bipartisan effort. The chamber also heard commemorative remarks recognizing Notre Dame Prep’s hockey championship, proclaiming February 2 as Mexican American Heritage Day, and honoring Mary Green as an early Black pioneer in Arizona. After recess, the House received committee and first-reading reports, announced several temporary committee replacements, and then adjourned until 1:15 p.m. Tuesday, February 3, 2026.

Transcript Highlights:

• With other state agencies.
• Throughout that time period and across all of those states, we have seen that state and local law enforcement
• It should serve as a national model for other states to emulate.
• Other states must endeavor to follow Texas's lead. Mr.
• I'm a senior fellow, as previously stated.

Committee: House Homeland Security, Public Safety & Veterans' Affairs

Transcript Highlights:

• This legislature in our state is leading the way.
• We represent small and mid-sized manufacturers across our state.
• I'd also just state that the department is in support of the committee substitute.
• I think each city could determine, under the state statute, how to evaluate slum and blight.
• Chair and Vice Chair, this section of the tax code does need cleanup.

Summary: The committee first considered House Bill 82, which would extend the Technology Readiness Gross Receipts Tax Credit for 10 years and increase the annual cap from $1 million per lab to $5 million over time. The sponsor and witnesses from Sandia and Los Alamos National Laboratories said the program helps New Mexico businesses commercialize deep-tech innovations and is unique in the country. Multiple business and economic development representatives testified in support, describing successful projects and job creation. Committee members asked about specific companies, wages, and the program’s impact, but several members raised concerns about the bill’s fiscal effect and the lack of room in the tax package. The committee adopted a substitute that delayed the credit increase by one year, but then voted to table HB 82 by about 5-3. The committee then heard House Bill 142, which would increase the Rural Health Care Practitioner Tax Credit and expand eligibility to underserved urban areas. Supporters, including Think New Mexico and the Greater Albuquerque Chamber, said the credit has not been updated in years and could help recruit more health professionals, especially EMTs. Members questioned whether urban areas should be included, how “underserved” is defined, the size of the current expenditure, and whether the credit actually changes provider behavior. Some members expressed concern that the bill could dilute support for rural areas, while others noted that most New Mexico counties are designated shortage areas. The sponsor moved to table HB 142, and the committee agreed. Finally, the committee took up Senate Bill 58, as amended, which extends the period for metropolitan redevelopment area property tax abatements from seven years to up to 14 years. The sponsor and MRA representatives said the longer period would help projects in blighted areas become financially feasible, especially for housing and redevelopment projects in Albuquerque and other cities. Support came from housing developers, Realtors, chambers of commerce, and economic development groups. Committee members asked about how MRAs are designated, how the abatements work, and why the bill also changed a separate 10-year reference; concerns were raised about the lack of statewide reporting on MRAs. The committee ultimately voted do pass on SB 58 as amended.

Transcript Highlights:

• In the Senate, Senate Concurrent Resolution 120 by State Affairs Committee, a concurrent resolution stating
• In the Senate, Senate Concurrent Resolution 120 by State Affairs Committee, a concurrent resolution stating
• In the Senate, Senate Bill 1320 by State Affairs Committee, an act relating to the State Controller,
• In the Senate, Senate Bill 1321 by State Affairs Committee, an act relating to the State Controller,
• Currently, schools have to submit a bullying incident data report to the state, but the state doesn't

Keywords: 989, all

Transcript Highlights:

• agency has received since fiscal year 2022 to serve as a state match for energy resiliency projects.
• Chairman, so what's in the Miscellaneous Revenue Fund for energy resiliency grants is for a state match
• And then what is supplied for the state match is in that energy resiliency line at the very bottom.
• “State that energy is a national security issue.
• energy-wise.

Keywords: 989, all

Summary: The joint Senate Finance and House Appropriations committee heard a series of budget presentations and acted on several FY 2026 and FY 2027 items. Noah Peterson reviewed the General Fund Daily Update, noting large FY 2026 supplemental actions for Medicaid and Corrections that reduced the estimated ending balance, and a FY 2027 outlook that still had room for remaining work. He also flagged several policy bills with fiscal impacts, including county jail per diem changes, a state police bill, and a health and welfare board/position bill. Janet Jessup then walked the committee through Department of Environmental Quality and Soil and Water Conservation actions. The committee approved adding four FTP for DEQ’s solid waste regulatory program and adopted related language transferring $400,000 from the hazardous waste emergency fund to support the new solid waste regulatory fund. It also approved a CREP supplemental for the Soil and Water Conservation Commission and then voted to move the commission from the Department of Agriculture to the Department of Water Resources, including a corresponding reduction in Agriculture and an addition in Water Resources. The committee adopted language to align the new budget structure and approved a one-time $390,000 restoration in the Department of Water Resources to avoid reducing stream-gauging and water-monitoring services. The committee next considered the consolidation of the Office of Species Conservation and the Office of Energy and Mineral Resources into a new Office of Species, Mineral, and Energy Coordination. It approved reductions to the two existing offices and then debated competing motions for the new office. The substitute motion to cut four FTP and reduce spending more deeply failed, while the original motion to reduce two FTP and preserve more staffing for nuclear and mining coordination passed. Members and the agency administrator argued that Idaho needs a stronger “one-stop shop” for nuclear and mining projects, while others emphasized following the policy bill moving through the legislature and capturing consolidation savings. The committee also approved a DOPL budget item for replacement vehicles and IT hardware. Most motions passed with do-pass recommendations, and the committee announced it would meet again the next day; Senate Finance was noted as on hold, while House Appropriations would continue after adjournment.

Transcript Highlights:

• agency has received since fiscal year 2022 to serve as a state match for energy resiliency projects.
• Chairman, so what's in the miscellaneous revenue fund for energy resiliency grants is for a state match
• And then what is supplied for the state match is in that energy resiliency line at the very bottom.
• “State that energy is a national security issue.
• energy-wise.

Summary: The committee received a general fund “green sheet” update from budget analyst Noah Peterson, who reviewed recent changes to the FY 2026 and FY 2027 balances, including large population-adjustment supplementals for Medicaid and Corrections and other committee actions. He also highlighted several policy bills with fiscal impacts, including county jail per diem changes, a state police-related bill, and a health and welfare board/position bill. Janet Jessup then walked the committee through several budget housekeeping items and supplemental/maintenance adjustments, beginning with the Department of Environmental Quality and a solid waste regulatory program change tied to House Bill 555. The committee approved multiple motions, including adding 4 FTP to DEQ and adopting revised language for a hazardous waste fund transfer; a FY 2026 Soil and Water Conservation Commission supplemental for the CREP program; and a major two-step reorganization moving the Soil and Water Conservation Commission from Agriculture to Water Resources. The committee also approved the related FY 2027 reductions and additions for the commission and Water Resources, including CREP funding and a one-time restoration of a rescission to preserve stream-gauging and water monitoring services. Members discussed whether those restorations should be one-time or ongoing, with some favoring one-time adjustments to preserve budget flexibility and others warning about agency stability. The committee then handled the consolidation of the Office of Species Conservation and the Office of Energy and Mineral Resources into a new Office of Species, Mineral, and Energy Coordination. It approved a reduction for the Office of Species Conservation and a reduction for OEMR, then considered competing motions for the new combined office. After extended debate over the appropriate number of FTP reductions and the importance of nuclear and mining coordination, the committee rejected a substitute motion and then rejected the original motion as well, leaving the new office budget unresolved. Finally, the committee approved the Division of Occupational and Professional Licenses request for replacement vehicles and IT hardware, and adjourned with notice of upcoming budget hearings the next day.

Transcript Highlights:

• A lot of families around the state struggle with this.
• our state and our country<00:08:00.400><c> has</c><00:08:00.639><c> seen.
• </c> lot of families around the state lot of families around the state struggle<00:08:26.319><c> with
• </c><00:20:29.600><c> Thank</c> Washington, Representative Hill.
• First reading of Senate File 9008, an act relating to construction codes.

Keywords: 1183, house

Transcript Highlights:

• currently conducting the penal code review as required by Act 245, included in the penal code review
• currently conducting the penal code review as required by Act 245, included in the penal code review
• </c> amendments to the Hawaii state amendments to the Hawaii state constitution<00:35:49.760><c> to</
• Most states are part-time legislators. It's a mix, yes, but there are many states with part-time.
• This is for state offices only.

Committee: Senate Judiciary

Keywords: 912, senate, all

Summary: The committee heard testimony on SB 114, which would create a presidential preference primary for the 2028 election. The Office of Elections said the bill would cost about $4.1 million. Supporters, including the Hawaii Democratic Party and the League of Women Voters, favored moving the process to a state-run primary, while several opponents, including the Hawaiian Islands Republican Women and multiple individual testifiers, argued it would be too expensive, would shift control away from the parties, and would replace volunteer-run caucuses with a mail-in system. Committee members questioned the chief election officer about election timing, certification, and how a primary might be scheduled with other elections. Testimony was recorded as 11 in support, 41 opposed, and 3 comments, and no vote was taken in the excerpt. The committee then took up SB 725, which would require judges to make findings about a defendant’s ability to afford bail. Judiciary and Attorney General witnesses asked that the bill be deferred or amended, saying the Judicial Council is already reviewing pretrial bail reform and that the bill’s language could create practical problems for police, sheriffs, and courts. Supporters, including the Correctional System Oversight Commission, the public defender, the Community Alliance on Prisons, the ACLU of Hawaii, and disability rights advocates, said cash bail disproportionately harms low-income defendants, increases pretrial detention costs, and should require clearer findings and records. Opponents included the Hawaii County prosecuting attorney. Members questioned how bail is initially set, what records exist, and whether the bill would change current practice; Judiciary witnesses said initial bail decisions are often made by police or judges and later reviewed on the record, while supporters argued the bill would strengthen front-end due process. The ACLU said it supported the bill with amendments, including clearer standards for ability to pay and written findings. The committee also began hearing SB 733, a proposed constitutional amendment to establish a continuous legislative session. Early testimony was strongly supportive, with advocates arguing that the current 60-day session limits public participation, makes it hard for working people to testify, and prevents lawmakers from collaborating effectively. Supporters said a year-round model could improve transparency, reduce duplicate bills, and better accommodate neighbor island legislators. The excerpt ends during the opening testimony on SB 733, before any committee action or vote is shown.

Transcript Highlights:

• If you took the states with the number, that's more bridges than any other state.
• Cones across the state.
• of the states.
• We're neutral, sir, as a state agency. State agency, yes, sir.
• Other states, and I'll pivot here a little bit, other states.

Committee: House Transportation

Keywords: 1184, house, all

Transcript Highlights:

• and for the state.
• and for the state.
• and for the state.
• States by eight states.
• So I cannot speak to all the states because I do not operate in those states.

Committee: House Joint Committee on Transportation Oversight

Summary: The House Committee on Transportation met on Senate Bill 1408, which would allow Missouri to raise the maximum speed limit on rural interstates from 70 to 75 miles per hour. Senator Berger, the bill sponsor, argued the change would better match neighboring states, improve traffic flow, and reflect modern vehicle safety technology. Several members supported the idea as a practical adjustment, while others questioned whether the time savings were worth the safety tradeoff, raised concerns about driver behavior, truck speed governors, road design, fuel use, and the possibility that higher posted limits would lead to even faster driving. Testimony was sharply divided. Supporters, including a motorist advocate and some committee members, said 75 mph is common in surrounding states and worldwide, that most crashes are caused by inattention rather than speed alone, and that MoDOT should be able to set limits based on engineering and traffic conditions. Opponents included a Hazelwood police lieutenant, AAA, the Missouri Insurance Coalition, and MoDOT Director Ed Hassinger. They argued that higher speeds increase crash severity and fatalities, that Missouri’s roads and traffic volumes differ from flatter neighboring states, and that the bill could disproportionately affect young and older drivers as well as roadside workers. MoDOT said its data shows speed is a major factor in fatal crashes and cited fatality increases in Arkansas and Kansas after those states raised rural interstate limits. Committee members also debated whether the bill actually mandates 75 mph or merely authorizes MoDOT to set it where appropriate. MoDOT and AAA said any increase should be tied to engineering studies and roadway-specific analysis, while supporters argued the department already has that discretion and that the bill simply removes an outdated cap. No vote was taken in the excerpt. After closing the hearing on SB 1408, the committee moved on to House Bill 3447, a towing and recovery bill that would require more insurance for large commercial vehicles, improve notice and dispute procedures, and address abandoned vehicles; testimony on that bill began with the sponsor and representatives from the towing and trucking industries.

Transcript Highlights:

• In the state, there are four programs: the University of Arkansas, Arkansas State, Pulaski Tech, and
• In our current state, the 3D program can serve 20 students at max at a time.
• I mean, I think that I was there with Susie traveling the state.
• I mean, I think that I was there with Susie traveling the state.
• I think I had an opportunity to code anyway.

Committee: All TASK FORCE ON AUTISM

Summary: The meeting opened with routine business, including approval of the January 13, 2026 minutes, and a brief recognition of Autism Awareness Month. The task force then heard a presentation from the University of Arkansas College of Education and Health Professions on two student support programs: the Empower Program for non-degree-seeking students ages 18–24 with mild intellectual disabilities, and the Autism Support Program for degree-seeking students with autism. Speakers described academic coaching, peer and career coaching, residential supports, person-centered planning, internships, and scholarship/fee structures, noting that both programs charge a $5,000 per-semester fee and rely on scholarships and fundraising to offset costs. Members asked about dorm arrangements, individualized plans, and how students transition in and out of supports; presenters explained that Empower students remain in the program throughout, while Autism Support Program students may enter or leave services as needed. The committee next heard from Pulaski Technical College’s 3D program, a three-year transition and post-secondary program for students with intellectual and developmental disabilities focused on culinary, baking, and hospitality training. Presenters outlined integrated classes with traditional students, faded support over time, internships, and outcomes such as 97 students enrolled since the program began, 57 graduates, strong completion rates, and many graduates obtaining and retaining jobs in the food service industry. Members asked about how success is measured, why rates are not 100 percent, the role of integrated classes, tuition, and community partnerships; staff explained that grading includes technical and professional skills, tuition is $5,700 per semester, and scholarships such as GETS and FAFSA help reduce costs. They also noted plans to expand offerings and pursue accreditation through the Inclusive Higher Education Accreditation Council. Finally, the task force received a presentation from SLS Community, a Fayetteville nonprofit serving neurodivergent adults through residential supports, supported employment, community activities, and advocacy. Leaders described a long-term vision tied to the Cato Springs mixed-use development, where housing, jobs, clinical services, and community amenities would be integrated in a “live, work, play” model. They discussed a residential program, a new vocational program called Program Forge, community events, and the challenges of the “services cliff” after age 21, especially for adults with complex support needs. Members and parents spoke about the importance of trained direct support professionals, ABA-based supports, and the need for better funding and service models for adults. The meeting ended with announcements about upcoming autism-related events and a request for future discussion on task force appointments and broader issues around ABA oversight and misuse.

Transcript Highlights:

• Thank you for all that you do for our great state.
• I am honored to introduce the 2025 Washington Mandela Fellows.
• To the California State Assembly and to our own backyard for UC Davis.
• This state is far from perfect.
• We are short over 3 million homes in our state.

Keywords: 988, house, all

Transcript Highlights:

• But because it is a state statute, I do believe that it has to be corrected by the state.
• What's interesting is those state parks are run by the state.
• So this bill would preempt those regulations of the state, so the state who runs the state parks could
• So a state park is run by the state, so the state could step in and regulate their springs. Okay.
• , does the state park there.

Summary: The committee first took up CS/SB 1730, a Live Local Act bill on affordable housing. The sponsor described it as a set of technical and policy adjustments to strengthen implementation, including changes to zoning, height, parking, moratoriums, attorney fees, and related land-use rules. An amendment by Senator Claudio was adopted, adding provisions such as a 10-story height limit near single-family neighborhoods, exclusions for certain protected areas, and changes to fee and use definitions. The committee then reported the bill favorably. Members next considered CS/SB 1674 on unrated bonds for Israel bonds, with a clarifying amendment adopted to make clear the bill applied only to Israel bonds. CS/SB 140 on charter schools was also approved after debate over parent-led conversion of public schools, municipal job-engine charter schools, and surplus school property; opponents warned about local control and impacts on teachers and communities, while the sponsor said the bill preserved district authority and created new school-choice and economic-development options. The committee also passed SB 96, a claims bill for Jacob Rogers, and CS/SB 954 on recovery residences, after strike-all amendments that addressed zoning, ADA concerns, bed caps, staffing ratios, and limits on operation in certain multifamily settings. Senators expressed support for expanding treatment housing but also raised neighborhood and staffing concerns. The committee then approved CS/SB 1714 on local housing assistance plans, which would allow SHIP funds for limited lot-rental assistance for mobile-home owners and require local plans to address mobile-home park closures. SB 658 on standardized construction lien release forms was reported favorably despite testimony from contractors and lawyers warning about possible effects on lien rights and the separate House proposal. The committee also reconsidered and then approved CS/SB 482 after a late-filed amendment addressing local government art fees and a key issue over defining “extraordinary circumstances,” with counties and cities saying more work remained. Finally, the committee passed SB 24 and CS/SB 4, both local claims bills, CS/SB 712 on synthetic turf and related construction rules, SB 952 repealing the emergency firearms/ammunition restriction, CS/SB 1164 allowing email notice delivery in landlord-tenant matters with opt-in safeguards, and SB 202 on municipal water and sewer rates, which drew extensive opposition from North Miami Beach and Miami Gardens officials over utility surcharges and revenue impacts. The meeting ended with SB 202 still under heavy questioning and testimony about the fairness and financial consequences of the surcharge structure.

Transcript Highlights:

• General of the United States.
• You've called them deep state after serving his country as the Attorney General of the United States.
• The FBI works in Washington, D.C.
• They state, quote, "Mr.
• I'm not an expert on state-by-state background checks.

Committee: Senate Senate Judiciary

Transcript Highlights:

• state to vastly, I’m mad?
• Young LGBTQ-plus people in the state of Florida are scared for what the state legislature might impose
• And I'm going to start off with, I think when we come into the state of Florida, it has the free state
• And I'm going to start off with, I think when we come into the state of Florida, it has the free state
• So I'm down on this bill and I just had to state my case, and I hope I have to state my case and I hope

Committee: House Commerce Committee

Summary: The committee first heard CS/HB 1263 on insurance regulation. The sponsor said the bill would strengthen the Office of Insurance Regulation’s tools to oversee property and auto insurance markets, including market conduct and solvency exams, mitigation discounts, storage of mitigation inspection forms, and clearer oversight of pharmacy benefit managers. An amendment narrowing fingerprinting requirements was adopted, and the bill passed favorably after supportive testimony from OIR and others. Members then considered CS/HB 527, which would require a qualified human review before an insurance claim can be denied or reduced when artificial intelligence is used in the process. After an amendment removing the word “algorithm” was adopted, insurers and trade groups testified in opposition, arguing current law already covers claims handling and that the bill could create duplicative work and slow innovation. Supporters, including a consumer and labor representative, said human judgment is needed to protect claimants. The bill passed favorably. The committee also approved CS/HB 637 on farm equipment “lemon law” rights, with an amendment clarifying consumer definitions, refund rights, repair-period extensions, and a July 1, 2026 effective date. CS/HB 107 on data centers also passed after an amendment narrowing the five-mile siting restriction to data centers over 50 megawatts and adding noise-study requirements; business groups supported a framework but opposed the NDA ban and siting limits, while several members raised competitiveness and local-impact concerns. Later, the committee passed CS/HB 1291 on NICA funding and solvency, CS/HB 185 on a sales tax exemption for home-hardening products, CS/HB 425 on historic African-American cemetery preservation, CS/CS/CS/HB 1177 on Space Florida and spaceport operations, CS/CS/CS/HB 657 on community associations and HOA/condo reforms, and CS/CS/HB 1221, the DFS package. The final major item discussed was CS/HB 1001 on local government DEI restrictions, which drew extensive questioning about definitions, exceptions, cultural and religious observances, advisory councils, and contracting rules; the transcript cuts off before the bill’s final disposition.

Transcript Highlights:

• So we have a bed tax across the state.
• in the United States.
• So now, how does this match up with existing code?
• That is also already in code in 34-701.
• That's already in Idaho Code.

Committee: House Revenue and Taxation

Keywords: 989, all

Transcript Highlights:

• I mean, there isn't a state code, but there are things that the office has to have in order to operate
• Does state code not say? The taxes owed is $500, but we sell it for $1,000.
• Does state code not say where that $500 goes? No.
• We would change state code and enable your office to be the ones that would market.
• State code, enable your office to be the ones that would market and sell those delinquent properties?

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum, approved the minutes from the prior meeting, and heard budget presentations from the Secretary of State, the Attorney General, and the State Auditor. The Secretary of State’s office described its FY27 budget, emphasizing efficiency gains from technology, election security work, and business services. It said it is operating with fewer staff than a decade ago, but rising costs and outdated statutory fees are creating deficits in service of process and other operations. The office asked the committee to consider either increasing fees or allowing it to retain a larger share of business-service revenue, and it also proposed creating an Office of Entrepreneurship to help small businesses navigate state government, grants, permits, and related services. Committee members questioned the Secretary of State’s office about fee increases, the current 50-50 split of certain revenues with general revenue, and whether the proposed entrepreneurship office would duplicate existing services. The office said it would complement, not replace, Commerce, SBDC, or grant programs, and would report metrics and policy recommendations to the legislature. The Attorney General then requested a one-time $2 million special revenue appropriation to hire additional lawyers and support staff, citing increased litigation, federal and state legal work, and the need to defend new laws. He also discussed embedded DMV lawyers handling DUI revocation hearings and said the arrangement costs the office just over $200,000. The State Auditor reported that his office is largely self-funded through special revenue and said he wants to reduce reliance on general revenue over time. He highlighted savings from renegotiated leases and an open government contract, discussed the need for more auditors in the Chief Inspector’s Division, and described fraud recovery and P-card operations. A major topic was delinquent land sales: the auditor said the office sold about 17,000 parcels last year and believes online bidding and better marketing could generate substantially more revenue, with the surplus potentially shared among counties, the state, and other programs. Members also asked about securities fee changes, fairness hearings, fire department audits, IT/cybersecurity, and how surplus proceeds from delinquent land sales should be handled. The committee adjourned after the presentations and questions.

Transcript Highlights:

• A board member code of conduct, but I have not reviewed it.
• Madam Chair, well, chiropractic is different, and the scope of practice from state to state for chiropractors
• Madam Chair, well, chiropractic is different, and the scope of practice from state to state for chiropractors
• So they received money from the state to cover it, go back and get—we collect the money from the state
• Obviously, limits on state revenues.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee first heard a follow-up on the Arizona State Board of Chiropractic Examiners special audit. The Auditor General’s contractor reported that the board has made progress on most of the 28 recommendations from the 2024 audit, with 25 in process and three not yet implemented. Remaining concerns included complaint investigations not being resolved within 180 days, continued open meeting law compliance problems, and failure to consult the Attorney General’s open meeting law experts. The follow-up also identified new issues with posting disciplinary/non-disciplinary actions and maintaining a complete public records request log. Board staff said they had adopted new complaint timelines, subpoena limits, conflict-of-interest procedures, public meeting guidance, training, and a new licensing platform, and they described efforts to professionalize investigations and improve transparency. Members pressed the board on open meeting violations, complaint backlogs, lobbying activity, and the resignation of the board chair, while the executive director said the audit findings were being treated as a roadmap for reform. The committee then received the January 2026 Arizona school district financial risk analysis. The Auditor General’s office said the number of highest-risk districts rose from two to nine, and districts approaching highest risk increased from seven to nine. The report highlighted common risk factors such as declining student counts, budget reserve problems, use of capital funds for operations, and weakening general fund positions. Tucson Unified was used as an example of a highest-risk district, with declining enrollment, reserve declines, and capital funds redirected to operations; Scottsdale Unified was cited as approaching highest risk. The office explained its web-based dashboard, district action plans, and ongoing outreach to affected districts. Sierra Vista Unified School District superintendent Terry Romo then presented the district’s response to its financial risk designation. She said she inherited the problems, quickly developed an action plan, and is working to stabilize enrollment, reduce staffing through attrition, close an elementary school, freeze nonessential spending, tighten purchase controls, and renegotiate or cancel high-cost contracts. She also said the district is redirecting DAA funds, considering sale or lease of property, and improving communication with families through letters, videos, and enrollment outreach. Committee members questioned the district about declining enrollment, school safety, academic performance, and the pace of corrective action, while Romo emphasized that the district is trying to protect both students and finances and avoid returning to the high-risk list.