Transcript Highlights:

• When adjusted for inflation, it's down even more, and I will say my biggest...
• At checkout, teachers receive an emailed itemized receipt of everything they received that day.
• House Bill 1171, which, as you know, provides a sales tax exemption for nonprofits with an annual gross

Committee: House A&B Finance Subcommittee

Summary: The committee heard an interim study on expanding or simplifying sales tax exemptions for Oklahoma nonprofits. Representatives Stark and Schreiber said the issue has been filed repeatedly over several sessions and framed it as a bipartisan effort to keep more charitable dollars in service of communities rather than paying sales tax. Schreiber also suggested broader tax reform or an omnibus approach rather than continuing to add individual exemptions. Marnie Taylor of the Oklahoma Center for Nonprofits gave an overview of the sector, describing nonprofits as a major part of the state economy and safety net, and argued that many organizations are highly regulated, under-resourced, and facing declining donations and funding. She said the current patchwork of exemptions is uneven and that a blanket or broader exemption would help organizations serving public needs. Committee members asked for sources behind some of the poverty, education, and health rankings cited in her presentation. Several nonprofit leaders testified about how sales tax affects their operations. RG Foods described the cost of opening neighborhood grocery markets in food deserts and said sales tax on a Tulsa project would divert about $85,000 from programming. Jubilee Partners, Skyline Urban Outreach, the Pencil Box, the Tulsa Police Foundation, Blue Rose Ranch, and Legacy Parenting Center each explained how exemption status or the lack of it affects food assistance, school supplies, public safety equipment, animal rescue, and diapers and family support. Members asked follow-up questions about food desert definitions, budgets, and how much sales tax savings would change operations. No vote was taken in the excerpt, but the study concluded with closing remarks emphasizing that the exemption would keep more money in direct services and support the nonprofit sector statewide.

Transcript Highlights:

• House File 3296 simply seeks to extend the same exemption from the calculating of gross annual sales
• House File 3296 simply seeks to extend the same exemption from the calculating of gross annual sales
• House File 3296 simply seeks to extend the same exemption from the calculating of gross annual sales
• , we actually artificially buy down that power cost adjustment by $40,000.
• </c> adjustment by $40,000. adjustment by $40,000.

Transcript Highlights:

• Pre-numbered receipts were not issued for all revenues.
• Cash receipts and disbursement journals were not properly maintained.
• As soon as we get receipts, they're going right in.
• Cash receipts and disbursements journals were not established.
• Cash receipts and disbursement journals were not established.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior minutes and then received a series of audit and compliance updates. Staff reported on delinquent private water and sewer reports, delinquent 2013-2023 water reports, and several municipal accounting code noncompliance cases. Denning and Gum Springs were recommended to be removed from the 60-day clock after staff visits showed improved records, while Fargo, Lead Hill, Almy, Jericho, Haynes, Biggers, Gilmore, and Holly Grove were discussed for repeat findings involving missing audits, poor bookkeeping, unpaid or misapplied street funds, deficit balances, and other accounting deficiencies. Several of these entities were given additional time or had reports filed without objection, while others were deferred for later review. Fargo’s mayor said the town had been understaffed and was working to improve its accounting systems; the committee voted to defer the matter to the August meeting. Lead Hill’s mayor described efforts to complete overdue water audits and improve office procedures, and the committee also postponed action for 60 days. Almy’s mayor and recorder-treasurer were present, and the committee placed the town on the 60-day clock for repeat accounting issues. Biggers and Gilmore both acknowledged long-running audit problems and said they were working with auditors and the IRS; their reports were filed. Holly Grove’s treasurer said she had only recently taken the position, and that report was filed as well. The committee spent considerable time on the street-fund misuse cases for Jericho and Haynes. Jericho was found to have exceeded the statutory threshold tied to fines and costs, with staff noting the town had since become current on its repayment plan; the committee deferred the report to September. Haynes was also behind on its repayment plan for street funds, with staff saying the town had recently made up the shortfall and was current as of the meeting, but the committee still deferred the report to September. Members and staff also discussed how the speed-trap law is applied, whether certain fines and costs count toward the threshold, and the role of the prosecuting attorney in deciding whether to take further action. The committee then reviewed a special report on the Pulaski County Regional Solid Waste Management District, which had six findings involving board approval of payroll and contracts, credit card documentation, vehicle and cell phone use, competitive bidding, electronic funds controls, and unusually high advertising spending. District Director Craig Douglas said the board had delegated some authority, that receipts were missing during a temporary staffing gap, and that advertising was needed to educate the public; he also defended the sale of trailers and other equipment as a way to exit the trailer business. Several members questioned the explanations and the low resale value of equipment, but the committee ultimately deferred the report to September. The meeting also included a recognition of accounting students interning with audit staff and a final set of actions on deferred water and sewer reports: 11 were filed, seven were deferred for lack of proper responses, and a private report on Shannon Hills Water, Sewer, and Fire Department was noted as involving misappropriation by an office manager and inadequate internal controls.

Transcript Highlights:

• </c><00:04:42.160><c> operating</c> valuation system to a gross operating valuation system to a gross
• rate applies to the allocated gross operating revenues.
• </c><00:25:48.120><c> operating</c> on determining the gross operating on determining the gross operating
• </c> wondering if the fact that this gross wondering if the fact that this gross operating<00:26:16.480
• </c> and making a value adjustment and making a value adjustment appropriately<00:56:55.680><c> and</

Committee: Senate Taxes

Transcript Highlights:

• And that doesn't give a lot of time for clerks to be able to adjust.
• to voting, things like expanding DMV hours for same-day voter registration. ...guaranteeing timely receipt
• I want to echo what the President of the NAACP stated in his opposition testimony: that this is a gross
• to use their HRA account, so they wait until it's about to get swiped, and then they'll submit a receipt
• think two years ago, after we were gone, what this bill... ...what this bill will do, simply put, is adjust

Bills: AB49 , AB169 , AB188 , AB284 , AB296 , AB306 , AB356 , AB366 , AB467 , AB499 , AB515 , AB540 , AB542 , AB595

Committee: Senate Finance

Transcript Highlights:

• So, I'll just adjust my gaze, then. Good morning, committee.
• /c><00:04:36.080><c> So,</c><00:04:36.160><c> I'll</c><00:04:36.280><c> just</c><00:04:36.520><c> adjust
• So, I'll just adjust my um All right. So, I'll just adjust my um gaze,<00:04:38.240><c> then.
• of a completed within 45 days of receipt of a completed application. application. application.
• </c><00:22:42.520><c> of</c> disability within 45 days of receipt of disability within 45 days of receipt

Bills: SCR63 , SCR8 , SCR160 , SCR90 , SCR93

Committee: House Human Services & Homelessness

Summary: The House Committee on Human Services and Homelessness heard several resolutions focused on disability access, housing, and support for Native Hawaiian beneficiaries. SCR 63 SD1 would have the Disability and Communication Access Board study communication needs in health care settings for people who are deaf, hard of hearing, or deaf-blind and revise provider guidance; testimony was strongly supportive, including from the board, a physician, and a family member who described harmful delays in care, and the committee later recommended passage as is. SCR 8 would require counties to act within 45 days on completed permit applications for home modifications needed for an older adult or person with a disability; testimony noted delays in permitting and financing, and the committee recommended passage as is. The committee also heard SCR 160, which urges state housing agencies to create a “housing ladder” program to help individuals and families move from subsidized to unsubsidized housing. Hawaii Public Housing Authority and other agencies supported the concept, and DHS described its family self-sufficiency program and said prior federal resident-services funding had declined over the past 20 years. The committee acknowledged the program may already exist in some form but still recommended adoption of the resolution as is. SCR 90 would ask county planning departments to establish kupuna-friendly building permit requirements for parking accessibility in private businesses. The committee moved it forward with an HD1 for technical amendments; a member raised concern that the measure did not specify the age threshold for “kupuna,” and said they would vote with reservations. Finally, SCR 93 would direct DHHL and the Statewide Office of Homelessness and Housing Solutions to develop a coordinated support and stabilization pathway for Native Hawaiian beneficiaries experiencing homelessness or very low income. DHHL said it is already operating a transitional housing effort called Ka Leo Opu Mama for about 18 beneficiaries using more than $6 million in federal Nah Ho Sa funds, with no dedicated state funding, and the committee recommended passage as is. The meeting ended with the chair thanking testifiers and members and adjourning the hearing.

Transcript Highlights:

• But somehow I think it's in the federal adjusted gross income, so it's part of conformity.
• I think. ...in the federal adjusted gross income, so it's part of conformity.
• It is not a part of your federal adjusted gross income, which we normally view as above the line.
• You could view that as the one non-federal adjusted gross income item that they adjust, but it is true
• that it is below your federal adjusted gross income on the form.

Bills: SB1638

Committees: Senate Finance , Senate Senate Finance Committee of Reference

Keywords: taxation, income tax, internal revenue code, deductions, tax benefits, retroactive, standard deduction

Transcript Highlights:

• Next, uh, we have the estimated award cost estimate adjustments.
• whether if you look at Gallup Thoreau, we've adjusted, it was a correction.
• These are just the continuation of the estimated award timing adjustments.
• Uh, would allow the district to realize a gross square foot reduction of 58,376 gross square feet when
• I can make that adjustment for sure.

Transcript Highlights:

• a consumer, such as their age, gender, marital status, geolocation, or online search history, to adjust
• Simply put, companies are... ...to adjust the price of goods based on their perceived willingness to
• receipts of over $100 million to verify and search their records for any transactions related to wealth
• from the enslavement of Black people and from the economic wealth transfer of free labor. worldwide gross
• receipts of over $100 million to verify and search their records for any transactions related to wealth

Summary: The committee heard several immigration-, health-, food access-, and tribal-rights-related bills. AB 1725 would require disclosure of oil wells near homes and sensitive sites and stronger methane monitoring; supporters described health and safety harms in communities near wells, while apartment, realtor, building, and chamber representatives opposed or sought amendments, arguing the bill should better target the responsible industry and fit existing disclosure processes. AB 1650 would require privately rented or leased vehicles used by government agencies for enforcement to be clearly identifiable and equipped with safety lighting; supporters, including immigrant-rights advocates and local officials, said unmarked vehicles create fear and confusion during ICE operations, while the chamber sought clarification and noted exemptions for ordinary undercover law enforcement. AB 1857 would prohibit grocery restrictive covenants that keep new supermarkets from opening after a store closes, with supporters framing it as a food-access and anti-hunger measure; grocers and retailers raised concerns but said amendments addressed many issues, and the committee moved the bill forward as amended to Appropriations on a recorded vote, with all members present voting aye except one absent member and the bill placed on call. The committee also heard AB 1876, which would codify federal health-care nondiscrimination protections in state law. Supporters from Equality California, Disability Rights California, Planned Parenthood, and other health groups said it would preserve coverage protections for LGBTQ people, people with disabilities, and other protected classes amid federal rollbacks; opponents argued it would entrench gender-affirming-care standards and criticized the underlying medical framework. The bill passed to Appropriations on a recorded vote, with most members voting aye and one no vote, and was placed on call. AB 1908 would allow public entities to use judgment obligation bonds to finance self-funded victim compensation funds; Los Angeles County said the bill would fill a financing gap for faster compensation, and the committee advanced it on a recorded vote and placed it on call. AB 1881, the California Indian Freedom Act of 2026, would protect California tribes’ access to sacred sites and traditional practices on state public lands and require meaningful consultation; it drew extensive support from tribal leaders and Native organizations, while cities, counties, utilities, builders, and business groups were opposed unless amended, largely seeking clarification and narrowing. The bill was amended to focus on state public lands and passed to Appropriations on a recorded vote, then placed on call. Later, AB 2465 would bar businesses that profit from private detention facilities or contract with immigration-enforcement agencies from receiving state grants, loans, or tax credits and create an immigrant resilience fund. Supporters said the state should not subsidize businesses tied to immigration raids and detention; opponents, including the chamber, bankers, and contractors, raised vagueness and scope concerns, especially over what contracts would be covered. Members said they supported the concept but wanted the bill tightened, and it passed to Revenue and Taxation on a recorded vote with one no vote and was placed on call. The committee then heard AB 2662, which would create a formal state process to monitor and report on federal immigration enforcement actions and their impacts; supporters from legal aid and health centers said raids have chilled access to work, schools, clinics, and naturalization, and the bill was presented as a modest accountability measure. The transcript cuts off before any vote on AB 2662. The committee also approved a consent calendar of several bills and resolutions, sending some to Appropriations and others to the floor.

Transcript Highlights:

• services, but we are able to reduce what we have now, and you're absolutely correct, and that is a gross
• qualify currently for Medicaid, for those individuals that are making those salaries, to make some adjustments
• The framework specifies which sales tax and gross receipts tax rates apply to transactions between the
• The bill requires that county value adjustment boards hear appeals related to the timely filing of tax
• allows for the tax collectors or local governing authority to revoke or refuse to renew a business tax receipt

Summary: The Appropriations Committee considered a large agenda of bills and reported several measures favorably. Early action included SB 6, a settled claim bill involving the Department of Children and Families and a trust for Leila Estrada and Sapphire Williams, and CS/CS/SB 1266, which creates a cybersecurity experiential learning and clearance-readiness program through the Department of Commerce and Cyber Florida. The committee also approved SB 532 on clerks of court funding, allowing clerks to retain all excess Article V revenue rather than returning half to the state and clarifying foreclosure sale procedures. In addition, the committee passed CS/CS/SB 1602 and CS/CS/SB 1604 to create and fund a pilot housing program for veterans through the Florida Housing Finance Corporation, and CS/SB 1110 to expand Medicaid and private insurance coverage for medically necessary orthotics and prosthetics, including testimony from affected families and advocates. The committee also adopted an amendment and then favorably reported CS/CS/SB 1012 on inmate services, removing the bill’s medical-services compensation provisions while retaining changes to the inmate welfare trust fund and related facility uses. It also adopted a delete-all amendment and then favorably reported CS/CS/CS/SB 1614, which was narrowed to remove a provision allowing local governments to use excess fees to construct new buildings. The committee spent substantial time on CS/SB 17, a Medicaid oversight and transparency bill. The sponsor said the measure would create a joint legislative Medicaid oversight committee, authorize the Legislature to retain its own actuary, modernize Medicaid statutes, strengthen managed-care performance standards, and increase accountability for pharmacy benefit managers and related entities. After amendment, the committee adopted changes removing several PBM-related provisions while retaining the broader oversight framework. Testimony from supporters emphasized transparency, fraud prevention, and cost control, while a PBM trade association asked to continue working on affiliate-manufacturer, network, and payment issues. The bill was reported favorably. The most extensive discussion centered on CS/SB 1758, which proposes major changes to Medicaid and SNAP. The sponsor described five reforms: stronger fraud and overpayment recovery authority, a Medicaid work requirement for certain able-bodied adults, expanded behavioral-health services through Medicaid waivers, pharmacy-program changes to obtain rebates and reduce institutional costs, and SNAP/EBT reforms including photo IDs and work requirements. The committee adopted two amendments: one adding a transitional “glide path” for people who gain employment but risk losing Medicaid, and another exempting hospice patients with six months or less to live. Supporters argued the bill would reduce fraud, improve accountability, and encourage work, while opponents warned it would increase administrative burdens, push eligible people off coverage, and conflict with federal law or guidance. The bill remained under debate with extensive public testimony from advocates, providers, and affected families, and the transcript ends before final disposition on the measure.

Transcript Highlights:

• Pre-numbered receipts were not issued for all revenues.
• As soon as we get receipts, they’re going right in.
• During that interim time, we did not have credit card receipts.
• Cash receipts and disbursements journals were not established.
• Cash receipts and disbursement journals were not established.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• That one adjustment is about $1.4 billion.
• Next is the nursing home adjustment.
• So here we have the managed care adjustment. The MCO adjustment is decreasing as a whole.
• It includes a productivity adjustment as well as a medical inflation adjustment as well as a policy adjustment
• It includes a productivity adjustment as well as a medical inflation adjustment as well as a policy adjustment

Committee: House Appropriations

Transcript Highlights:

• Was there an incident between the public adjusters and the insurance companies during a claim adjustment
• I was asked for receipts.
• And also the requirement limit as well for the adjusters, those two. You’re recognized.
• And now an adjuster has 10 days to object after receiving that.
• Then they send her out this letter saying, we're going to send an adjuster. Adjuster comes.

Summary: The committee met with a quorum and heard several insurance- and trust-related bills. CS/HB 265, relating to post-judgment execution proceedings involving terrorism, was presented as a measure to help victims enforce long-standing judgments against terrorist assets; it received no opposition in testimony and was reported favorably. CS/HB 1173, concerning the Florida Trust Code, clarified that the Florida Attorney General is the only public official with standing to enforce charitable trusts administered in Florida; members discussed that it was intended to resolve ambiguity identified by a court decision, and it also passed favorably. The committee then took up PCS/HB 643 on residual market insurers. The bill would remove the “diligent effort” requirement for surplus lines placements, revise surplus lines eligibility, and let Citizens policyholders elect arbitration through DOAH or the courts at renewal or issuance. The sponsor argued the changes would reduce red tape and give consumers more options, while an opponent from the Florida Justice Association warned that removing diligent-search protections could push more policyholders into higher-cost, less-regulated surplus lines coverage and that arbitration could favor insurers. Committee members raised concerns about the lack of premium credits for arbitration, the effect on Citizens, and the loss of consumer protections, but the bill was reported favorably. Finally, PCS/HB 1047 on insurance regulation generated extensive debate. The bill would reduce pre-licensure hours for general lines agents from 200 to 60, clarify restrictions on public adjuster conduct, require claims-handling manuals only for active residential property insurers, and define “sufficient evidence” for bad-faith claims with examples and a 10-day objection/response process. Supporters said it would streamline claims handling and clarify timelines; opponents and several members argued it could burden policyholders, especially after disasters, and might make it easier for insurers to delay or deny claims. There was also concern about the reduced training hours for new agents and the lack of detail on what constitutes sufficient evidence or a specific objection. After a divided debate, the bill was reported favorably by a 12-6 vote. The meeting then adjourned.

Transcript Highlights:

• Excuse me, let me find this one: Gross Substitute House Bill 1187.
• Well, this then concludes testimony, closes the hearing on and gross substitute House Bill 1187.
• period of time between the verification of the applicant's completion of their training program and receipt

Bills: HB2540 , HB2113

Committee: Senate Health & Long-Term Care

Keywords: emergency medical services, EMT recertification, healthcare, first responders, public health, radiologic technologists, diagnostic imaging, healthcare regulation, professional supervision, state licensing

Transcript Highlights:

• As we look into our gross collections, we have $4.02 billion of collections.
• We'll see in the top there, gross receipt taxes still somewhat strong at 2.9% for the month, 3.2% for

Committee: All ARKANSAS LEGISLATIVE COUNCIL (ALC)

Summary: The Arkansas Legislative Council meeting began with approval of the December 2025 minutes and a presentation from the Bureau of Legislative Research on the December revenue report. Dr. Carlos Silva said gross collections were about $4.02 billion, up slightly from the prior year, and net available for distribution was also above last year but down modestly from the previous month because of higher-than-expected corporate income tax refunds. Members asked about corporate tax trends, tariffs, and inflation, and Silva said it was too early to call the corporate decline a trend and that tariff effects would likely show up mainly in sales tax collections. The council then adopted several subcommittee reports, including the Executive Committee Subcommittee, Administrative Rules, Hospital/Medicaid/Developmental Disabilities, Occupational Licensing Review, PEER, Review, State Insurance Program Oversight, and Personnel. The PEER report drew the most debate because of a Department of Agriculture grant tied to Perry County and Central Arkansas Water; members discussed whether removing the Perry County portion would affect the grant’s competitiveness, and the report was ultimately adopted with the item included. The Review Subcommittee also heard questions about a BDO contract for the rural health transformation program, with DFA explaining that the contractor would manage the program while state agencies would make funding decisions consistent with the state’s application. A major portion of the meeting focused on the Education Freedom Account appropriation tied to LEARNS. Senators and representatives debated whether the program helps families or diverts money from public schools, with supporters arguing it funds students and choice and opponents arguing it is costly, vulnerable to fraud, and harms public school funding. Department of Education officials said roughly 28,000 private school students and 17,500 homeschool students were participating, that EFA students must submit standardized tests annually, and that the requested $32 million was to cover existing participants. After multiple substitute motions and extended debate, the body rejected a motion to strip out the $32 million and then adopted the report and related motions. The meeting ended after routine approvals of additional agency items and adjournment.

Transcript Highlights:

• As we look into our gross collections, we have $4.02 billion of collections.
• We'll see in the top there, gross receipt taxes still somewhat strong at 2.9% for the month, 3.2% for

Committee: All ARKANSAS LEGISLATIVE COUNCIL (ALC)

Summary: The Arkansas Legislative Council met and first heard the monthly revenue report from the Bureau of Legislative Research. Dr. Carlos Silva reported gross collections of $4.02 billion for the first half of the fiscal year, up slightly from the prior year, with net available for distribution also above last year and still above forecast despite a small monthly decline tied to higher-than-expected corporate income tax refunds. Members asked about corporate tax trends, the possible effects of tariffs on state revenues, and broader economic indicators such as inflation and unemployment. The meeting then moved into committee reports, including approval of the Executive Committee’s waiver request for the Van Buren School District, the Administrative Rules Subcommittee report, the Hospital, Medicaid, and Developmental Disabilities report, and the Occupational Licensing Review report. The PEER Subcommittee report prompted extended debate over a Department of Agriculture grant for Central Arkansas Water and whether a Perry County property acquisition should remain in the request. After discussion, the report was adopted. A lengthy portion of the meeting focused on the Department of Education and the Educational Freedom Account appropriation. Members debated whether the program diverts money from public schools, whether homeschool and private-school expenses are comparable, and whether the program should be funded separately or held for further review. Motions were made to separate or remove the $32 million EFA item, but those motions failed, and the report was ultimately adopted. Members also discussed public-school funding levels, enrollment declines, literacy outcomes, and accountability. The council then approved additional reports and rule filings, including items from DFA, the Insurance Department, the Economic Development Commission, the Division of Environmental Quality, and the Division of Parks, before adjourning.

Transcript Highlights:

• has to hear bills, I would entertain a motion to waive the five-day notice rule in considering, in gross
• Possession of a controlled substance is a gross misdemeanor.
• with some background on current drug possession crimes, possession of a controlled substance is a gross
• this bill creates, unless the peace officer acted in bad faith, with deliberate indifference, or with gross
• untraceable firearm by certain prohibited persons, and the knowing or reckless possession, transportation, receipt

Summary: The committee first waived the five-day notice rule for five House bills, then held public hearings on several measures. On Engrossed Substitute House Bill 2548, the committee heard staff and sponsor testimony on expanding health care merger notice requirements to the Attorney General, adding transactions involving majority ownership/control and asset sales, requiring public posting of notices, pausing closings until information requests are substantially complied with, and adding filing fees. Supporters, including the sponsor, the Attorney General’s Office, the Office of the Insurance Commissioner, nurses, and patient advocates, said the bill would improve transparency and oversight of consolidation and private equity in health care; the Washington State Medical Association and Washington State Hospital Association were neutral after compromise language, though the hospital association raised concern about the added fees. The hearing closed with many people signed in pro and con but not testifying. The committee then heard Second Substitute House Bill 2333, which would allow candidates and elected officials to use campaign or surplus funds to reimburse personal security expenses related to threats tied to their public roles. The sponsor and several prosecutors described personal threats and argued the bill is needed to protect public servants, while public disclosure officials said current PDC processes and the state Address Confidentiality Program already provide some protections and cautioned against over-codifying agency discretion. Some testimony urged restoring earlier address-protection provisions, while county auditors said the revised bill removed operationally unworkable redaction language and was acceptable as amended. The bill had broad signed-in support and opposition, but no vote was taken. For Engrossed House Bill 1574, staff explained the bill would expand Good Samaritan-style protections for people seeking overdose help, bar arrest or conviction for possession in those circumstances, limit related penalties and forfeiture, and allow hospitals and other health facilities to distribute public health supplies without committing paraphernalia infractions. Supporters said it would save lives and improve access to drug checking and harm reduction services, while prosecutors and law enforcement groups said the bill was too broad, especially regarding arrest limits, protection-order violations, probation/parole, warrants, and civil forfeiture. The sponsor said the bill was intended to keep people alive and encourage calls for help. The committee also heard Engrossed House Bill 2156, which would let Attorney General investigators be designated limited authority peace officers to electronically serve search warrants in economic and financial crime cases; the AGO and retailers supported it as a tool against organized retail theft and wage theft, while sheriffs and police chiefs opposed it and urged added guardrails and deconfliction with local law enforcement. Finally, on Engrossed Substitute House Bill 2320, the committee heard a bill to regulate 3D-printed and digitally manufactured firearms and digital firearm manufacturing code. The sponsor and supporters, including students, pediatricians, and a gun-violence survivor’s family member, said it was needed to address untraceable ghost guns and keep pace with technology, while opponents argued the bill was overbroad, raised constitutional concerns, and targeted files and speech rather than criminal conduct. No votes were taken in the hearing excerpts provided.

Transcript Highlights:

• The table is just denoting what the gross square footage change in these items is.
• I'm concerned with the application in that I'm not concerned about adding the gross cost.
• Based on the policy that was put out regarding adding gross square footage and how it could be applied
• our gross growth.
• I understand the school district's desire to look at adjustment of boundaries for your schools.

Committee: House Public School Capital Outlay Oversight Task Force

Transcript Highlights:

• Forward with adjusted gross proceeds. And I'm going to address it.
• The adjusted gross proceeds is kind of looked at two different ways, before tax and after tax.
• To get to adjusted gross proceeds, you have your gross proceeds that I explained in the last slide, minus
• I'll break down the split and how that works with the adjusted gross proceeds.
• And then that adjusted gross proceeds amount after taxes amounts to about $8.80 and $80.

Summary: The committee met to review the Attorney General’s budget and related agency operations, beginning with Legislative Council staff walking members through compliance reports and a blue-sheet base budget document. Staff highlighted current-biennium items such as FTE changes, one-time appropriations, litigation funding, opioid settlement receipts, continuing appropriations, and major special and federal funds. Members asked for clarification on items including the Missing Indigenous People Grant Fund, the Internet Crimes Investigation Fund, and the Medicaid Fraud Control Unit grant funding. Assistant Attorney General Clare Ness then gave an overview of the office’s structure, staffing, and budget pressures. She emphasized the office’s broad statutory duties, the value of its legal services to state and local government, and concerns about attorney pay lagging behind other agencies. Members discussed whether attorney compensation should be benchmarked more consistently across state government and whether some legal work could be consolidated within the AG’s office. Ness also addressed questions about AG opinion turnaround times, boards-and-commissions training, the new-and-vacant FTE pool, operating expense cuts, office leases, and the state’s criminal justice information systems. The crime lab presentation drew significant attention. Director Jennifer Penner described severe space, safety, and infrastructure problems at the current lab, including cramped work areas, glycol leaks, outdated fire and burglar alarms, air-handling limits, and equipment failures that have delayed toxicology work. She said the 2024 study projected a much larger facility would be needed and that the preferred location would be near the current health department site, but in a new building. Members asked about possible evidence risks, backlog status, and whether the proposed building would solve the current problems; Penner said it would and noted backlogs have improved overall, though some delays remain. The committee also heard from the new Medicaid Fraud Control Unit director, who described the unit’s civil and criminal work, federal-state funding split, and examples of fraud such as billing for services not provided or upcoding. The gaming division reported continued growth in charitable gaming and e-tabs, with members expressing concern about large trust-account balances, site competition, and possible misuse of proceeds. Finally, BCI outlined its caseload, cybercrime work, missing Indigenous persons task force, and the surge in CSAM cyber tips; members asked about AI-generated CSAM, and the AG’s office noted that last session’s law increased penalties and expressly allowed AI-generated CSAM to be prosecuted like other CSAM. No formal votes or actions were taken beyond approval of the minutes.

Transcript Highlights:

• Chairman, John, do receipts have to be submitted? Mr.
• Chairman, John, do receipts have to be submitted? Mr. Chair, Mr.
• You mentioned earlier that you're processing 2,000 receipts a day? John. Mr.
• You mentioned earlier that you're processing 2,000 receipts a day? John. Mr.
• We're just not there today. ...upload receipts.

Committee: House House Appropriations Committee of Reference

Summary: The committee first heard HB 2584, which would prohibit public monies from being used for genetic sequencing procedures involving devices made by companies owned or substantially controlled by entities domiciled in a foreign adversary. The sponsor said the bill is intended to protect genetic data from being sold or used against the United States. There was no public testimony, and the committee approved the bill on a 13-5 vote for a do pass recommendation. The committee then took up HB 2804, which creates a rural development and housing tax credit capped at $2 million per year and tied to federal low-income housing tax credit projects in counties under 800,000 population. Supporters, including the sponsor, the Flagstaff mayor, and housing investors/developers, argued it would leverage private capital to address rural affordable housing shortages, especially for seniors, veterans, and low-income residents. Opponents, including the Arizona Free Enterprise Club, argued state LIHTC programs are inefficient, costly, hard to oversee, and can add complexity and higher per-unit costs. The bill passed 13-4 with one not voting. HB 2388, as amended, appropriates $100,000 for the Arizona Commerce Authority to study the economic benefits of small modular reactors and data centers, with a report due June 30, 2027. Supporters said the study would help Arizona plan for energy demand and data center growth, while opponents argued the agency should use existing funds instead of a new appropriation. The committee adopted the amendment and then approved the bill 10-7 with one not voting. The committee also received a presentation from the Auditor General on county treasurer procedural reviews, including the response to the Santa Cruz County treasurer embezzlement case and the office’s ramp-up plan for reviews and staffing. Later, the committee approved HB 2352, which appropriates $2,385,900 in FY2029 to make the Auditor General’s county treasurer review funding ongoing. Members supporting the bill said the office needs certainty to plan audits and retain staff, while opponents objected to funding it so far in advance during budget uncertainty. The bill passed 11-7. The committee also approved HB 2418, as amended, which directs $600,000 to be evenly distributed among five county sheriff task forces in Cochise, Coconino, Navajo, Pinal, and Yuma counties; supporters said it codifies the long-standing distribution practice, and it passed 17-1. Finally, the committee heard HB 2499, which would provide $2.6 million and 12 FTEs to the Department of Education for ESA administration; supporters argued the program’s rapid growth requires more staff for enrollment, reviews, and accountability, while members questioned the lack of standardized testing data and how to measure student outcomes. The transcript ends during that discussion, before a final vote on HB 2499.