Transcript Highlights:

• that these are changes that are good for taxpayers, and so I was excited to support this negotiated agreement
• First, I want to thank the sponsors in both chambers for coming to agreement so early in session and
• Yeah, I think that we might have some agreements here.
• I think that we might have some agreements here.
• We might have some other agreements on some other things.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical Arizona tax conformity bills, HB 2153 and SB 1106, which would conform state tax law to the federal Internal Revenue Code as of Jan. 1, 2026, with some provisions applied retroactively to tax year 2025. Staff explained that the bills exclude the federal senior deduction for those 65 and older, the higher state and local tax deduction, and the new car loan interest deduction, while including a $6,000 retirement-income deduction for taxpayers 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. The JLBC fiscal note estimated a $441.3 million general fund revenue loss in FY 2026, and members discussed that this was roughly the same as full conformity because the bill’s adjustments offset some of the federal changes. Bill sponsors and supporters argued the measure should be enacted early to give taxpayers and tax preparers certainty before filing season, noting that the Department of Revenue had already issued forms assuming conformity and that delay could force amended returns. They said the bill reflects a negotiated package that preserves most of the federal tax relief while tailoring it for Arizona, especially by lowering the senior deduction age to 60 and replacing the auto loan deduction with family-focused provisions such as the higher child credit and child care deduction. The Arizona Society of CPAs and the Arizona Free Enterprise Club supported the bills, emphasizing the need for early conformity and fewer filing complications. Opponents, including Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, argued the package would reduce state revenue, worsen the structural deficit, and mainly benefit higher-income taxpayers and corporations. Some witnesses criticized the inclusion of federal school-choice-related provisions and warned about uncertainty around future federal guidance, while others said the bill should not move ahead before the budget process. Members also debated whether taxpayers would need to file amended returns if the state later diverged from the Department of Revenue forms, and whether the senior and child care provisions were targeted or equitable. The transcript ends during public testimony, with no final committee vote or action shown.

Transcript Highlights:

• comment is that I think that we will learn from what the districts go through in working out their agreements
• comment is that I think that we will learn from what the districts go through in working out their agreements
• comment is that I think that we will learn from what the districts go through in working out their agreements
• comment is that I think that we will learn from what the districts go through in working out their agreements
• I think that we will learn from what the districts go through in working out their agreements, and we

Summary: The committee first discussed HB 771, the open enrollment bill, which had returned from the Senate with language clarifying that districts should list both tuition expenses and offsetting revenue estimates from sending districts. The chair and Representative McGuire supported concurring with the Senate changes, while Representative Luno raised broader concerns about the bill’s structure and equity, arguing that tuition based on 80% of the sending district’s average cost could be unfair and could create problems for receiving districts with different cost structures. After a show of hands, the committee voted to concur and send that recommendation to the House floor, with Luno indicating he would speak against it there. The committee then took up SB 9 in executive session. An amendment, 1920H, was offered to clarify that the tuition calculation should use the sending district’s average cost and to support access to CTE programs, including allowing students to take academic courses at the receiving school and, in some cases, attend the nearest CTE center. Supporters said the bill would help more students participate in career and technical education and noted bipartisan sponsorship in the Senate. Opponents argued the amendment would increase district costs, strain property taxpayers, and could reduce CTE participation or create logistical problems. The committee adopted the amendment 10-8, then voted 10-8 to recommend OTPA as amended; Representative Lad was assigned the majority report and Representative Luno the minority ITL report. After closing the SB 9 executive session, the chair reminded members that committee reports were due immediately and announced retained-bill subcommittees. One subcommittee will address adequacy and school funding issues arising from HB 651, HB 772, HB 491, and HB 434, chaired by Representative Spillsbury. Another will address school building aid issues from HB 295 and HB 366, including whether to keep the current formula or revise it, and how to handle renovations, new construction, and lease arrangements.

Transcript Highlights:

• We talked earlier, and I don't think we're in agreement that we're solving a problem.
• So the question about whether that litigation or that agreement, the settlement agreement, would apply
• We probably, to be safe, would want to come up with a way to craft some of those agreements into this
• I'm happy to look at the terms of that settlement agreement and the law that codified that settlement
• agreement.

Bills: HB2442 , HB3697 , HB4288 , HB5256 , HB5337 , HB5362 , HJR161

Committee: House Elections

Keywords: HB 2442, Texas Election Code, Election Code Section 84.001, early voting, ballot by mail, mail ballot, absentee voting, runoff election, primary runoff, general runoff, voter application, election administration, county election officials, opt-out, voter choice, mail voting, ballot application, voting by mail, Election Code, size requirements

Transcript Highlights:

• Only if they have collective bargaining and they agreed to it in a collective bargaining agreement.
• An actual copy of an existing interlocal agreement between Sabine County and the one particular parish
• How do these interlocal agreements work?
• And I don't see Sheriff Weyborn here, but I'm assuming he's in agreement with this bill.
• If you wish to increase the tax rate above the no-new-revenue rate, when there is a lack of agreement

Bills: HB240 , HB2097 , HB2731 , HB3087 , HB3234 , HB3319 , HB3394 , HB3687 , HB4105 , HB4205 , HB4350 , HB4462 , HB4642 , HB4801 , HB5403 , HB240

Committee: House S/C on County & Regional Government

Keywords: quorum, tax levy, county governance, local government, population regulations, quorum requirement, Texas counties, population threshold, deputy sheriff, civil service, law enforcement, appeals process, sheriff's department, HB 2731, roadside vendors, solicitors, county regulation, border counties, Mexico border, Transportation Code

Summary: The subcommittee on county and regional government heard a long agenda of county-related bills, with most measures left pending after testimony. HB 2097, by Rep. Martinez, would let counties that opt in use an independent hearing examiner instead of a civil service commission for certain deputy sheriff discipline appeals; the bill drew support from CLEET’s Robert Leonard, who said it would be fairer and faster, and it was left pending. HB 4642, by Rep. Gonzalez, would require counties that contract with out-of-state jail facilities to include Texas jail-standard protections and oversight; Gonzalez, detainee Jess Hampton, his wife, Texas Jail Project’s Krish Kundu, and TCJS director Brandon Wood all discussed deaths and poor conditions in Louisiana facilities, staffing shortages, and the need for guardrails and data collection. The bill was left pending. The committee also heard HB 4350, by Rep. Capriglione, allowing peace officers to request redaction of personal information from online real property records. Supporters said officers face targeted threats and should have protections similar to judges; a title industry witness warned about preserving the integrity of land records. The bill was left pending. HB 3687, by Rep. Harless, would require county fire marshals in counties over 100,000 to meet training and certification standards within set timeframes; Harris County Fire Marshal Laurie Christensen supported professionalization, and the bill was left pending. HB 4105 would let very large counties give a local-bid preference for construction and infrastructure contracts, and HB 4205 would require pay parity for similar law enforcement ranks within large counties; both were supported by Harris County officials and constables and left pending. Later, the committee heard HB 5403, which would repeal a special rule limiting Dallas and Tarrant county sheriffs’ control over commissary funds; the author said it would remove an outdated population bracket, and the bill was left pending. HB 4462 would require large counties to allow elected officials named in civil suits to seek outside counsel and have a role in settlement decisions; supporters argued county attorneys and commissioners court can have conflicts of interest, while questions focused on who qualifies and whether the bill could complicate settlements. The bill was left pending. Finally, HB 240, by Rep. Swanson, would restore a five-member quorum requirement for Harris County tax levies, effectively preventing tax action without all commissioners present and defaulting to the no-new-revenue rate if quorum is not met; urban counties opposed it as a potential budget obstruction, while supporters said it protects taxpayers and representation. That bill was also left pending. The transcript ends as the committee begins HB 3319, which would create a civil service system for constable department employees in large counties, but the discussion is cut off before testimony or action.

Transcript Highlights:

• With an agreement in place between the school and district, educators pair flexibility with accountability
• With an agreement in place between them.
• With an agreement in place between the<00:36:14.480><c> school</c><00:36:14.840><c> and</c><00:36:14.960
• ,</c> up a durable site-governed agreement, up a durable site-governed agreement, including<00:37:18.400
• </c> undermines negotiated working agreements undermines negotiated working agreements by<01:50:53.080

Committee: Senate Education Policy

Transcript Highlights:

• I think it's one of the areas where we have some agreement from all sides of the gambling debates that
• from all sides of the um agreement from all sides of the gambling<00:41:47.560><c> debates</c><00:41
• Those agreements are only in place with insurance non-HMOs because it's something that the Department
• Those agreements are only in place with insurance non-HMOs because it's something that the Department
• Those agreements are only in standards.

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• They signed an adoption placement agreement with us.
• But what happened agreement with us.
• :50.080><c> was</c> That adoption placement agreement was That adoption placement agreement was denied
• placement agreement with us under<00:59:47.440><c> any</c><00:59:47.720><c> circumstances.
• And I think we have agreement would say.

Bills: HF3665 , HF3002 , HF4217 , HF4125 , HF4174

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• The ISOs of the world, the ITE of the world, really coming to the forefront, creating the agreements
• for for technical standards agreements for for technical standards for<00:45:50.079><c> the</c><00:45
• Treasuries and repurchase agreements thereof.
• </c> treasuries and repurchase the agreements treasuries and repurchase the agreements thereof<00:59:
• on these sorts of interstate agreements on these sorts of things. things. things.

Summary: The Stable Token Study Commission held its first regular meeting, welcomed all remaining appointed members, and completed brief introductions from legislators and agency designees. The chair outlined the commission’s plan to use the first part of the enabling legislation as a “level-setting” discussion, focusing this meeting on the basics of blockchain, the current landscape for stablecoins and tokenized real-world assets, and leaving blockchain-based trust for a later meeting. No votes were taken. The main presentation came from Deanna Bario Zales of the Global Blockchain Business Council, who described stablecoins as increasingly converging toward fiat-backed or asset-backed models, with algorithmic designs viewed more cautiously. She said stablecoins are being used for payments, remittances, DeFi activity, cross-border transfers, retail use in high-inflation markets, and treasury functions, while noting risks such as peg instability, reserve transparency, counterparty and network risk, and possible capital flight from weaker banking systems. She cited growth in supply, wallet activity, and transfer volume, and said U.S.-pegged stablecoins dominate the market, with USDT and USDC leading. Zales also discussed tokenized real-world assets, describing them as digital representations of physical assets that can enable fractional ownership, liquidity, and faster settlement. She said the market is growing quickly, with institutional participation from firms such as BlackRock and Franklin Templeton, and projected continued expansion. She closed with an overview of regulatory developments, emphasizing the new U.S. stablecoin framework under the Genius Act, the proposed Clarity Act, OCC guidance, and similar regimes in the EU, UK, UAE, Singapore, Japan, and elsewhere, all of which she said are shaping compliance requirements and market development.

Transcript Highlights:

• a different problem, which we were able to get stakeholder agreement on.
• on that issue so stakeholder agreement on that issue so we<00:12:43.560><c> decided</c><00:12:43.880
• on that's what get stakeholder agreement on that's what the<00:12:48.320><c> de</c><00:12:49.199><c>
• This was amended in this committee last session based on mutual agreement with Chair Scott.
• </c><01:38:22.840><c> to</c> their stories and making agreements to their stories and making agreements

Bills: HF1662 , HF1224 , HF1836 , HF1367 , HF1168 , HF1999 , HF1792 , HF102 , HF2127 , HF104

Committee: House Judiciary Finance and Civil Law

Transcript Highlights:

• You can't extend the collective bargaining agreement as to this subject matter, and you can't have a
• as to this subject matter uh agreement as to this subject matter uh and<02:05:55.280><c> you</c><02:
• The limit is stated in the agreement that may differ from what's in this.
• </c><02:31:21.560><c> which</c> collective bargaining agreement which collective bargaining agreement
• provide you with the procedures enumerated in those collective bargaining agreements.

Summary: The committee held a hearing on HB 366, which would increase school building aid for eligible projects. Representative Cahill, the prime sponsor, said the bill would raise the annual minimum from $50 million to $60 million and help address a long backlog of school construction and renovation needs after years of a moratorium on applications. He argued that districts forced to build during the moratorium were left to shoulder costs through local property taxes, and he cited examples such as Londonderry, Claremont, and other communities with aging or inadequate facilities. He also said the current aid structure, including paying 80% upfront and 20% at completion, concentrates too much spending at once and limits how many projects can be funded. Several committee members asked about the fairness and structure of the program. Representative Maguire questioned whether aid should be distributed more broadly to all districts rather than only a few selected projects, and Representative Luneau noted that the committee would also be considering related bills on catastrophic aid, special education aid, and the school foundation formula. Cahill responded that building aid has historically been targeted to property-poor communities and that the state should be a reliable partner in school construction. He also said the bill includes a small retroactive component for communities that built during the moratorium, which he described as a compromise. Testimony in support came from Representative Cluder, who described Claremont’s Stevens High School project as a case where a bond issue narrowly failed and the city later had to fund renovations without state aid, contributing to high property taxes. He said the bill would help property-poor communities and urged passage. Tony Weinstein of New Market also supported the bill, saying his community had serious facility and safety needs, had moved forward with scaled-back renovations during the moratorium, and still faced debt-service burdens without state participation. Robert Thompson, superintendent in Hampstead, testified that his district needs an addition for overcrowding, safety, and special education space, and said building aid would help reduce out-of-district placements and transportation costs. No vote was taken in the hearing.

Transcript Highlights:

• The House bill relative to non-competition agreements in the Commonwealth, House No. 2118.
• An act relative to non-competition agreements in the Commonwealth, House No. 2118.

Summary: The House first took up a series of bills reported by the Committee on Steering, Policy and Scheduling, including measures on Brockton residency requirements for local offices, the Board of Elementary and Secondary Education, non-competition agreements, election administration in Salem, school nutrition, local election procedures in Longmeadow, Charlemont, Conway, and Concord, a senior property tax exemption for North Attleboro, Holyoke City Council special meetings, renter consumer rights, alcohol licensing in Southbridge and Raynham, and the Reading Home Rule Charter. The House suspended Rule 7A, ordered the bills to a third reading, and then advanced them accordingly. The chamber then considered several engrossed bills for final action. House No. 4763, validating the results of Bourne’s May 20, 2025 annual election, was passed and, after a separate constitutional vote, its emergency preamble was adopted. The House also passed to be enacted bills concerning the Cuttyhunk Fire District, Otis Fire District funding for the Historical Society of Endicott and Cuttyhunk, and the Salem licensing board. Additional third-reading actions included House No. 4321, allowing the Dalton Fire District to continue employing interim fire chief Christopher Francis Chahat, which was ordered to a third reading, and House Nos. 4267 and 4582, directing the Boston Police and Fire Departments respectively to waive maximum age requirements for named individuals, both of which were passed to be engrossed. The House then adopted an order to meet the following Wednesday at 11 a.m., and adjourned to that time in formal session, with a Democratic caucus announced for noon.

Transcript Highlights:

• As we continue to work with the CPUC, we aim to find agreement on how this bill can help the rulemaking
• As we continue to work with the CPC, we aim to find agreement on how this bill can help the rulemaking

Committee: House Communications and Conveyance

Transcript Highlights:

• Well, I'm in total agreement. I really question what benefit it has to a... ...total agreement.
• And they came and they were going to assess 100%, whatever it was, but they came to an agreement that
• And they came and they were going to assess 100%, 100, whatever it was, but they came to an agreement
• I don't want to get into comparing contracts at this point, but I'm sure our support agreement would
• Are we all in agreement with that then?

Summary: The subcommittee of the Tax Reform and Relief Committee met to begin its study of the feasibility and desirability of revising the content of the real estate tax statement to improve property tax transparency. Legislative Council staff reviewed the study directive under House Bill 1176 and the statutory requirements for tax statements, including required line items such as true and full value, mill levy, legislative tax relief, primary residence credit, and the Legacy Fund portion of that credit. The Tax Department then explained how the current uniform statement is prescribed and approved, and noted that changes are typically driven by statute and implemented collaboratively with counties and vendors. County officials from the North Dakota Association of Counties described the full annual tax cycle, from county budgeting and valuation notices to budget hearing notices, levy certification, cap calculations, and final tax statement mailing. They emphasized that counties and auditors do extensive coordination with taxing districts and neighboring counties, and that the process is labor-intensive and often manual. Members discussed the limited public response to budget notices and tax statements, the difficulty of explaining the legislative tax relief line, the 3% cap and valuation issues, and whether more frequent assessments or different timing would improve understanding. Several members and witnesses noted that many taxpayers only engage when they receive their final bill, and that clarity may be more important than adding more detail. NDACO also presented a rough cost survey from eight counties, estimating an average tax statement cost of about 74 cents and a statewide total near $600,000 for printing and mailing tax statements alone, with outsourcing generally cheaper than in-house printing. Witnesses noted that House Bill 1176 added other mailings and notices, increasing county workload and cost beyond the statement itself. The committee then heard from software vendors, who explained how their systems handle tax billing, budget notices, valuation notices, primary residence credit processing, and tax levy calculations, and they identified the 1600/1685 primary residence credit and discount interaction as a current programming challenge. No votes were taken; the meeting was informational and focused on gathering testimony and identifying issues for possible future recommendations or bill drafts.

Transcript Highlights:

• data with the auditor, and provides relative to fraud prevention and detection and interagency agreements
• data with the auditor, and provides relative to fraud prevention and detection and interagency agreements
• Right now, they've already completed 10 interagency agreements with other departments.
• It’s my understanding that while we have some agreements, we don’t agree on 100% of everything, right
• So is it your agreement, Rep.

Bills: HR115 , HR116 , HR117 , HR118 , HR112 , HR113 , HR114 , HCR51 , HCR52 , SCR18 , SCR20 , SB14 , SB76 , SB118 , SB142 , SB156 , SB170 , SB197 , SB234 , SB258 , SB287 , SB288 , SB313 , SB315 , SB393 , SB396 , SB426 , SB427 , HCR7 , HB76 , HB84 , HB132 , HB181 , HB210 , HB250 , HB265 , HB275 , HB291 , HB322 , HB342 , HB457 , HB475 , HB477 , HB486 , HB616 , HB635 , HB639 , HB690 , HB740 , HB757 , HB761 , HB766 , HB774 , HB808 , HB855 , HB866 , HB872 , HB883 , HB886 , HB903 , HB949 , HB962 , HB996 , HB1003 , HB1036 , HB1054 , HB1071 , HB1076 , HB1078 , HB1113 , HB1132 , HB1146 , HB1232 , HB1233 , HR15 , HR20 , HCR14 , HCR6 , HCR19 , HCR10 , HR74 , HCR26 , HCR35 , HB98 , HB108 , HB131 , HB151 , HB161 , HB288 , HB294 , HB305 , HB310 , HB320 , HB336 , HB380 , HB392 , HB403 , HB420 , HB459 , HB476 , HB540 , HB615 , HB631 , HB637 , HB648 , HB665 , HB682 , HB789 , HB813 , HB815 , HB835 , HB870 , HB905 , HB915 , HB933 , HB938 , HB987 , HB1040 , HB51 , HB82 , HB143 , HB145 , HB160 , HB180 , HB192 , HB393 , HB430 , HB445 , HB506 , HB515 , HB521 , HB565 , HB590 , HB614 , HB638 , HB670 , HB672 , HB685 , HB692 , HB752 , HB773 , HB781 , HB799 , HB860 , HB874 , HB887 , HB917 , HB937 , HB956 , HB965 , HB972 , HB977 , HB982 , HB1006 , HB1010 , HB1044 , HB1072 , HB1088 , HB1179 , HB1200 , HB81 , HB400 , HB154 , HB410 , HB463 , HB827 , HB868 , HB952 , HB953 , HB140 , HB750 , HB911 , HB52 , HB961 , HB399 , HB401 , HB901 , HB9 , HB58 , HB193 , HB284 , HB570 , HB577 , HB582 , HB605 , HB733

Summary: The House convened with a quorum, opened with prayer by guest minister Reginald Tate, and adopted the journal and several leave requests. The chamber received Senate messages, including concurrence in HCR 44 and Senate adoption of SCRs 19 and 26, and referred a number of Senate resolutions and bills to committee. It also reported and adopted several House resolutions honoring individuals, schools, and organizations, including H.R. 112, 113, 114, and 52, and referred HCR 51 to Appropriations for a study of assessor and clerk compensation. The House then processed many bills on second and third reading, with numerous measures reported favorably or amended and advanced without objection. Topics included criminal justice and public safety (including hit-and-run as a crime of violence, video voyeurism, intentional exposure to HIV, bail conditions for human trafficking defendants, and post-conviction custody rules), health and insurance matters (AI disclosure in health care, hearing aid coverage, anti-cancer medication parity, pharmacy benefit managers, Medicaid/SNAP integrity, and rare cancer treatments), education and governance (special education due process, school funding, campaign finance, public records, and legislative website transparency), and natural resources and transportation items. Several bills were substituted or renumbered, and many were engrossed and passed to third reading. Two floor debates drew extended discussion. HCR 15, urging Congress to pass the SAVE Act and require voter identification in federal elections, passed 65-32 after questions about voter roll purges and documentation requirements. HCR 14, supporting federal efforts to eliminate the U.S. Department of Education, prompted extensive debate over federal education funding, Title I, special education, student loans, land-grant institutions, desegregation oversight, and whether federal functions could be shifted to other agencies; it was adopted 59-28 with 23 coauthors. Later, HB 108, barring persons convicted of violent crimes or sex offenses from jury service, passed 68-32 after debate over jury pool size, second chances, and whether the bill would apply to civil and criminal trials. The House also passed HB 98 on penalties for unlawful release of victim information, HB 131 on custody pending appeal, HB 161 on bail conditions for human trafficking defendants, and HB 288 requiring “miscarriage” to appear alongside “spontaneous abortion” in medical records and billing.

Transcript Highlights:

• Chapter three, 13 agreements back in the Chapter three, 13 agreements back in the day and the tax burden
• I am 100% in agreement with my colleagues in terms of we must be the The grid has to be secure.
• And they see these co-location agreements as one way to do that. And that's great.
• And then that planning study is used by the transmission company to have the interconnection agreement
• We must look ourselves in the mirror with chapter three, 13 agreements that we gave them.

Committee: Senate Business & Commerce

Summary: The Senate Committee on Business and Commerce convened to discuss critical infrastructure and supply chain integrity, particularly focusing on Texas's power grid and associated vulnerabilities. The meeting highlighted Texas's recent ranking as 10th in electricity affordability, emphasizing the state's commitment to maintaining a reliable and resilient electric grid. New committee members introduced themselves, and the agenda included testimony from ERCOT and the Public Utility Commission regarding the implementation of the Lone Star Infrastructure Protection Act, which aims to mitigate risks posed by foreign entities to the power grid. Chad Sealy from ERCOT presented updates on the attestation process for market participants, revealing that over 1,500 entities had submitted attestations regarding their corporate structures and affiliations with designated foreign countries. Concerns were raised about the adequacy of the current vetting process, particularly regarding indirect relationships with foreign adversaries. Testimonies from the PUC and the Attorney General's office underscored the challenges of enforcing compliance and the need for improved legislative measures to enhance oversight and security. The committee also heard from experts, including Dr. Emma Stewart from Idaho National Laboratory, who discussed the evolving threats to the grid from foreign adversaries and the importance of securing communication systems. Recommendations included prioritizing inspections of critical components and enhancing collaboration with national laboratories to address vulnerabilities. The discussion concluded with an acknowledgment of the balance needed between ensuring grid security and maintaining affordability for consumers.

Transcript Highlights:

• both sides of this issue about whether we should expand sports betting, there seems to be broad agreement
• both sides of this issue about whether we should expand sports betting, there seems to be broad agreement
• </c><00:26:16.320><c> to</c><00:26:16.559><c> be</c><00:26:17.360><c> broad</c><00:26:17.679><c> agreement
• </c><00:26:18.080><c> that</c> there seems to be broad agreement that there seems to be broad agreement
• </c> there's pretty much uniform agreement there's pretty much uniform agreement that<00:34:40.800><c

Bills: HF2354 , HF3407 , HF4359 , HF4192 , HF3356 , HF3695 , HF1597 , HF3155 , HF3871 , HF4437 , HF4446 , HF3990

Committee: House Public Safety Finance and Policy

Transcript Highlights:

• funds from resiliency funds made available through the National Guard Military Affairs Cooperative Agreement
• federal sustainment funds made available through the National Guard Military Affairs Cooperative Agreement
• federal sustainment funds made available through the National Guard Military Affairs Cooperative Agreement
• </c> military affairs cooperative agreement military affairs cooperative agreement and<00:08:35.839><
• The assistance agreement does say that we do have the authority to have the system increase their rates

Summary: The committee first handled routine business, including roll call, approval of the July minutes, and several informational reports. Those reports included a University of Kentucky restricted-fund medical equipment purchase for Chandler Hospital, debt issues for five school districts, Eastern Kentucky University’s planned model laboratory school using construction management risk delivery, a Division of Real Properties lease advertisement, Kentucky Communications Network Authority quarterly project reports, and EKU asset preservation revisions. Members then heard and approved a new UK St. Clair Urgent Care Clinic lease in Morehead and an amendment expanding space for the UK Family and Community Medicine Clinic at Turflin Clinic. Testimony explained that both properties are privately owned, the Morehead lease predated the UK/St. Clair arrangement, and the Turflin Clinic is tight on space. The committee also approved three new projects and an appropriation increase: two Department of Military Affairs projects, a Window Ford Training Center underground electric project and a Williamsburg Readiness Center interior repair project, a Fish and Wildlife property acquisition adjoining Veterans Memorial Wildlife Management Area, and an $8.113 million increase for the Department of Revenue integrated tax system (DORIS). The DORIS increase was described as needed for change orders tied to legislation and to complete the unified tax system. The committee next reviewed no-action items, including a $3 million emergency flood-damage repair project for the Bush Building and Vest-Lindsay House in Frankfort, and three pool projects over $1 million: a Kentucky Correctional Institute for Women window replacement phase 2 project, a Department of Criminal Justice Training interior refurbishment at Thompson Hall, and the Muddy Gut Branch stream mitigation project in Johnson County. The flood project was confirmed to be fully reimbursed by insurance proceeds. Finally, the Kentucky Infrastructure Authority presented six loans and nine grants. Action items included water and sewer financing for Cumberland County, Lebanon, Northern Kentucky Water District, Lewisport, and Providence, plus a major Taylor Mill treatment plant project and several cleaner water grants and reallocations. Members asked about loan rates, local rate increases needed to repay debt, and the Providence emergency water interconnect; staff explained that Lewisport had begun a rate increase process, and that the Providence project would connect Webster County Water District and the city of Providence to stabilize pressure after a systemwide failure. All action items were approved.

Transcript Highlights:

• Likewise, our advancement staff audited all donor agreements to identify any that require consideration
• Our advancement staff will be meeting with private donors to encourage amendments to existing agreements
• to identify any all donor agreements to identify any that<00:14:33.760><c> require</c><00:14:34.160>
• to ensure they align with the agreements to ensure they align with the law. law. law.
• Contracts and membership agreements with DEI-related organizations have been terminated.

Summary: The Interim Joint Budget Review Subcommittee on Education met to hear updates from Kentucky public universities and the Kentucky Community and Technical College System on compliance with House Bill 4, which restricts DEI-related activities and requires institutional and viewpoint neutrality. The chair emphasized that the hearing should focus on both compliance and the financial effects of the law. Eastern Kentucky University said its board adopted a House Bill 4 compliance resolution and an institutional neutrality policy. KCTCS reported systemwide reviews of programs, websites, scholarships, personnel, and admissions language, along with board actions removing a cultural competency course requirement, adopting institutional neutrality, and certifying compliance. KCTCS said about $2.5 million annually had been reallocated to other needs, and that no personnel were eliminated, though some roles were reassigned and DEI-related offices closed. Kentucky State University said it had already dissolved DEI offices before the bill passed, ended DEI-specific training, revised policies and gift acceptance rules, adopted a viewpoint neutrality policy, and was conducting ongoing reviews of programs, job descriptions, and web content. KSU said it had achieved substantial compliance, expected full operational integration by August 1, and had not terminated staff or closed academic programs because of the law. In response to questions, KSU said it was broadening outreach to all students rather than targeting specific populations and that its prior diversity finding was tied to not meeting a diversity quota. Morehead State University said it had no DEI office before House Bill 4, amended its non-discrimination statement to include political and social viewpoint neutrality and condemnation of religious and ethnic discrimination, and remained focused on serving its largely low-income student body. Murray State University reported reviewing scholarships, expenditures, training, and academic programs to ensure no differential treatment or indoctrination, revising its neutrality policy, and updating non-discrimination posters and training. When asked about a statement that DEI would “look different,” the university said it meant student support services would continue in a different form. Northern Kentucky University said it dissolved its diversity office and chief diversity officer position in 2024, reviewed programs, events, scholarships, and employee affinity groups, adopted a statement on intellectual diversity and viewpoint neutrality, and reviewed about 2,000 courses for compliance. NKU also said its new Center for Belonging would focus on first-generation and commuter students rather than rebrand prior DEI efforts. The University of Kentucky began its presentation by describing earlier changes made in August 2024, including disbanding its office of institutional diversity, removing diversity statements and mandatory training, adopting institutional neutrality, and ending race-based consideration in admissions and scholarships; the transcript cuts off before the rest of UK’s testimony and any committee votes or formal actions beyond receiving the presentations.

Transcript Highlights:

• Gates: Code on how an apartment complex can be exempted from all property taxes by entering into an agreement
• corporation called a Housing Finance Corporation, known as an HFC, which enters into a partnership agreement
• All the HFCs who are operating outside of their jurisdiction will have to get an agreement from the city
• Member: I think there's almost universal agreement that something has to be done because there are bad
• Representative Harrison: ...that among economists, one of the biggest points of agreement is that the

Bills: HB21 , HB211 , HB223 , HB323 , HB524 , HB530 , HB636 , HB762 , HB21 , HB211 , HB223

Committee: House Intergovernmental Affairs

Keywords: housing finance, multifamily residential, low income, tax exemption, audit requirements, affordable housing, local government, development bonds, housing assistance, financial assistance, low income housing, community support, affordability, veterans housing, community involvement, air conditioning, tenant support, healthcare, elderly, taxation

Transcript Highlights:

• In the agreement, the employee has to sign an agreement that states that they will comply with all the
• discipline, if they score in the lowest two categories of their evaluation, their telecommuting agreement
• </c><00:03:47.080><c> is</c> their telecommuting agreement is their telecommuting agreement is revoked
• And you do sign an agreement that you will maintain an ability to connect.
• ><c> that</c><00:15:14.440><c> you</c><00:15:14.600><c> will</c> do sign an agreement that you will do

Summary: The committee received testimony from Personnel Cabinet Secretary Mary Elizabeth Bailey and Deputy Secretary Robert Long on the state’s telecommuting policy. Bailey explained that telecommuting in the executive branch is governed by a statewide policy requiring eligible employees to work in the office three days a week and telecommute up to two days a week. Eligibility depends first on the position, not the person: public-facing jobs, roles requiring special equipment or insecure document handling, and other duties that cannot be performed remotely are not eligible. Employees and managers must complete training, sign agreements, comply with safety and IT requirements, and telecommuting privileges can be revoked for poor performance or discipline. She said the cabinet audits compliance and that telecommuting has helped maintain services during inclement weather, disasters, and building renovations. Bailey also said about 33% of the workforce is hybrid, 11% telecommutes full-time, and 56% does not telecommute. Members asked about cost savings, eligibility, discipline, and technology requirements. Bailey said she did not have statewide cost-savings figures and referred that question to the Finance and Administration Cabinet. She said employees must have reliable connectivity and appropriate equipment, but there is no fixed broadband speed requirement; if an employee cannot connect, they must come into the office. She also said telecommuting postings indicate whether a position is eligible, and that performance issues are handled through progressive discipline rather than being ignored. Transportation Cabinet officials then described how their agency manages remote work. Deputy Secretary Mike Hancock, along with IT and human resources leaders, said the cabinet follows the executive branch policy and actively manages telecommuting employees through Microsoft Teams, VPN access, daily standups, project tracking, and manager oversight. They said more than 2,600 of the cabinet’s 4,000 employees cannot telecommute because their jobs are public-facing or field-based, while about 35% are eligible to telecommute up to two days per week. The cabinet also has 13 state employees and 94 contract employees working full-time remotely in IT. Officials said telecommuting has improved recruitment and retention, supported emergency response and weather operations, and allowed the cabinet to continue working during storms and other disruptions. Members asked about phone equipment, monitoring, and “mouse jiggler” devices; officials said phones are often forwarded to personal or state devices, Teams shows real-time availability, and managers rely on daily accountability and project management tools to monitor work.