Transcript Highlights:

• The first one though, EFA audit and special education audit reports.
• He spoke to committee members of the Legislative Performance Audit and Oversight Committee.
• He raised the issue of expanding the audit at the April meeting to include the residency of students
• You can see that in our audit and our annual audit and in our 990. And we can send that Our 990.
• The last one was Skids, who was a LBA senior audit manager. ...who was a LBA senior audit manager explained

Keywords: 928, house, all

Summary: The Education Freedom Account Oversight Committee met on March 27 and approved the agenda, adding a request for clarification on how the Children’s Scholarship Fund separates applications for the EFA program and the education tax credit program. The committee also approved minutes from December 30, 2025, and March 27, 2026, with a request that the March minutes include a link to the live stream. Members discussed the status of pending Legislative Budget Assistant audit reports on EFA and special education, noting the reports were still not released and would likely come later in the summer after review by the Department of Education and the Children’s Scholarship Fund. A major topic was the EFA program’s administrative fee, which statute allows up to 10% of deposits. Children’s Scholarship Fund representatives said current administrative costs were under 8%, that staffing had been reduced through the ScholarVia platform, and that any unused amount is reconciled and returned to students at year’s end. Members asked for historical administrative-cost data and a written explanation of how the withholding and reconciliation process works. The committee also reviewed the distinction between the EFA and education tax credit funding streams and was told the two programs use separate applications and separate funds, though both use the same platform. The committee spent substantial time on assessment and accountability. Department of Education staff explained that EFA students may satisfy annual assessment requirements through a portfolio, a norm-referenced test, or the statewide assessment; only about 10 EFA students took the statewide assessment, while most used portfolios or standardized tests such as the California Achievement Test and NWEA. Staff described how statewide assessment data are kept separate by student identifier and can be aggregated for EFA reporting, and members asked for breakdowns by grade, test type, and school district. The department also discussed linking assessments through Lexiles and Quantiles and said it could provide a list of commonly used formative assessments in New Hampshire districts. The committee additionally discussed a possible PSAT addition to the state contract and the costs of the statewide assessment program. Another major issue was special education eligibility and services within the EFA program. Members questioned the rule allowing a medical certification of disability from a licensed professional anywhere in the United States as an alternative to an IEP-based determination. Department staff said the current system allows either pathway, that about 1,000 EFA students are identified as special education students, and that the program does not track growth or service alignment on an individual basis. Members expressed concern that the medical-certification route may be too broad and asked for data on the disability categories used. The committee also discussed career and technical education access for EFA students, noting that Senate Bill 491 would provide guidance and that House Bill 1817 would address access and funding issues, but that current law still allows EFA funds to be used to pay CTE costs. The meeting ended with a request for future agenda items and a decision to leave the next meeting date open until fall, pending further information from the LBA audit process.

Transcript Highlights:

• We actually pay a third-party auditor to go out, audit the ticket, audit the marks on the site, and audit
• <00:24:44.360> system<00:24:44.880> where<00:24:45.159> our thirdparty auditing
• Frankly, we struggled to just get all the material into 40 hours.
• Frankly, we struggled to just get all the material into 40 hours.
• <01:03:17.520> by knowledge of course material by knowledge of course material by successfully

Bills: HF47, HF335

Keywords: telecommunications, installation, certification, safety, underground utilities, HF335, Greater Minnesota, economic development, public infrastructure, grant program, DEED, Department of Employment and Economic Development, business development, infrastructure grants, local government aid, general fund appropriation, rural development, site development, utilities, roads

Transcript Highlights:

• Concourse State was approved for an audit by the Joint Legislative Auditing Committee this last November
• implement a strategy to discourage foreign companies and nongovernment organizations from providing material
• And our members own and operate landfill waste energy facilities and material recovery facilities.

Transcript Highlights:

• to introduce other material into the record. record. record.
• support of HR8107, the government audit support of HR8107, the government audit and<03:19:23.600
• remarks and include extraneous material remarks and include extraneous material on<03:25:36.239>
• material on HR2505. material on HR2505.
• The United States must stop depending on China for the materials that power the modern world.

Keywords: U.S. House of Representatives Floor Proceedings on Monday, June 8, 2026, 1012, house, all

Transcript Highlights:

• Uh, and it there's a big long process of audits, reviews, and everything going into KFIX.
• are you on the import of materials from China to be able to continue your work?
• Receive materials. They will come from various countries. How reliant are you though?
• particular materials coming from China. particular materials coming from China.
• CAM, the active material that I just mentioned, can't be made without precursor cathode active material

Keywords: Meeting start 00:00:00 Discussion of Nickels and School Facility Funding 00:02:13 Economic Development Projects in Elizabethtown and Hopkinsville 00:29:33 Correspondence and Reports Received 01:09:25, 958, all

Summary: The committee received an informational presentation from the Kentucky Department of Education and the School Facilities Construction Commission on school facilities funding. Staff explained the main funding sources used for school construction and renovation, including the mandatory “nickel” property tax levy, growth and equalized growth nickels, the equalized facility funding nickel, the Fort Knox/BRAC-related nickel for Hardin County, and the recallable nickel that districts can adopt locally. They also described the state equalization formula, noting that local construction costs have risen and that state support is formula-driven rather than a dollar-for-dollar match. The SFCC outlined how unmet facility need is calculated through district facility plans, which are developed locally with community, staff, and board input and then reviewed by KDE staff for consistency and reasonableness. The commission said it will update the statewide unmet need report this fall, adopt it in December, and provide the figure to the committee in January 2026. It reported that the statewide unmet facility need was about $7 billion in 2023, with about $951 million in local revenue available, and said its offers of assistance are paid as debt service over eight years. The commission also said the most recent legislative offer of assistance was its smallest since SFCC’s creation in 1985, and requested an additional $60 million for the next biennium. Members asked about how districts use nickel tax levies, who determines facility need, whether the process includes physical inspections, and how bonding capacity affects offers of assistance. Staff said nickel levies are generally adopted with regular tax rates, that facility need is locally developed but reviewed by KDE, and that KDE project managers and district-hired architects review plans on paper rather than through in-person inspections. They also explained that bonding capacity can affect a district’s ability to use or receive assistance. Questions were also raised about federal funds tied to earlier KIX grants and about districts with zero remaining offers of assistance; staff said most grant-funded projects are underway or complete, and that a zero balance means a district has spent its available assistance. No votes or formal actions were taken.

Transcript Highlights:

• Are you familiar with Captain Seth Keschel's audit of the 2020 presidential elections in Washington State
• Are you familiar with that audit? I am not familiar with that.
• Okay, because his audit showed there is 300,000 phantom votes in Washington State in the 2020 elections
• And so there's a lack of Spanish-speaking materials.
• Of our social media, so much of our print materials, that this is where you want to submit your ballot

Summary: The committee held a work session on voting rights in the United States and Washington, beginning with testimony from Marissa Wright of Campaign Legal Center and David Montes of the ACLU of Washington. They described the federal Voting Rights Act’s main protections—preclearance, vote suppression, and vote dilution—and argued that Supreme Court decisions such as Shelby County v. Holder and Brnovich have weakened those tools. They said Washington should consider stronger state-level protections, including a preclearance program and broader safeguards against discriminatory voting practices. Members asked about Washington’s history of discrimination, voter roll purges, noncitizen registration, and remedies under the Washington Voting Rights Act, including ranked-choice voting and district-based systems. The committee then heard from the Office of Equity and several commissions, which described their roles in advising state government and working with communities. They focused on the immigration sub-cabinet created under Executive Order 2509, saying it is intended to improve coordination across agencies, the legislature, the courts, and community organizations on issues such as data privacy, language access, health care, education, and accountability under the Keep Washington Working Act. Members asked about the use of NGOs, accountability for KWW violations, and the sub-cabinet’s goals, and the panel said the effort is meant to help government respond more quickly and collaboratively while centering immigrant, disability, LGBTQ, and other communities. The final panel was from the University of Washington Elections Database Project, which presented data on vote-by-mail ballot challenges, cures, and rejections from 2020 to 2024. They reported that about 1.5% of ballots are signature-challenged in most elections, roughly 60% of challenged ballots are cured, and overall rejection rates are about 1% in general elections and 1.5% in primaries. The researchers said voters of color, younger voters, and some tribal-area voters experience higher rejection rates, and that differences appear tied to signature mismatch, language access, ballot timing, and familiarity with the system. In the last panel, Maria Fernandez and Vicki Frausto of EIA described voter education and civic engagement work in Yakima County and Sunnyside, including concerns about intimidation, language barriers, signature mismatch, and at-large election systems; they said stronger Washington Voting Rights Act protections would help communities elect candidates of choice. No votes were taken during the work session.

Transcript Highlights:

• and we'll discuss the pivot from there in a moment; the requirement for supplemental instruction materials
• It clarifies that textbook and material lists must include open access materials with unique identifiers
• I'm the chair of the Audit and the Compliance Committee, and we're going through a process of replacing
• I'm the chair of the Audit and the Compliance Committee, and we're going through a process of replacing
• My audit compliance officer, which in the trucking world is very intense, she's a female.

Summary: The Appropriations Committee on Higher Education heard and approved two bills before moving into confirmation hearings for several university and college board nominees. CS/SB 1458 on apprenticeships and pre-apprenticeships was presented as a measure to improve consistency and transparency in local education agency partnerships, cap LEA administrative funding at 10% when applicable, and require public meetings and work papers for workforce funding model decisions. Support was noted from Associated Builders and Contractors, the Florida Chamber of Commerce, Foundations for Florida Futures, and Independent Electrical Contractors. The bill passed unanimously and was reported favorably. The committee then considered CS/CS/SB 1726 on higher education governance and presidential searches after adopting a delete-all amendment and a late-filed amendment defining the final group of presidential applicants as no fewer than three. The amended bill added provisions on trustee citizenship and residency/alumni eligibility, interim president succession planning, longer presidential contract renewals, limits on candidate polling by universities, syllabus posting, textbook/open-access material lists, and other governance and academic policy changes. Senators raised concerns about the minimum-three finalist requirement, interim president selection, trustee eligibility, and polling restrictions, while supporters said the bill would depoliticize leadership selection and improve transparency. The bill was reported favorably after the amendments were adopted. The committee then heard confirmation testimony from multiple appointees and reappointees, including nominees for FAMU, UNF, Pensacola State College, UWF, and UF. Most nominees emphasized ties to their institutions, student success, workforce development, military connections, and institutional growth. Several UWF nominees were questioned extensively about their votes for former chair Scott Yenner and his controversial comments about women and other groups; some said they were unaware of those remarks at the time of the vote and would not have supported him with that knowledge. Public testimony on UWF expressed concern about the nominees’ lack of higher education experience, their ties to the region, and the impact of Yenner’s views. The committee later voted to recommend a block of non-UWF nominees favorably, and it agreed to vote on the UWF nominees individually, with some remaining nominees deferred to a later hearing due to time.

Transcript Highlights:

• Some municipalities are doing never-ending audits that circumvent the Texas Prompt Pay Act.
• County clerks can gain instant auditable visibility.
• This means titles will be secure, verifiable, and auditable.
• Auditable. This reduces fraud and increases trust in the system.
• I've given you a packet of materials, and I've drowned your offices with materials that show that the

Bills: HB111

Summary: The committee heard a long series of House bills, with most measures laid out by Senate sponsors and then left pending after brief public testimony. Early bills focused on construction and licensing issues, including HB 305 on prompt payment for public construction audits, HB 5093 on restoring public access to notary contact information, HB 2037 on updating landlord-tenant repair and security deposit rules, HB 4214 on a centralized public information request contact database, and HB 5435 exempting higher education institutions from a 90-day notice requirement for certain public-private partnership projects. Testimony was generally supportive on these bills, and no votes were taken; each was left pending. The committee also considered several transparency and regulatory bills. HB 111 would expand the Public Information Act to certain nonprofit state associations and narrow some attorney-client and working-paper exceptions, with supporters arguing it would improve oversight of public funds and critics questioning the scope and thresholds. HB 5129 would protect occupational license holders’ personal identifying information from disclosure without consent, HB 4350 would allow peace officers to redact personal information from online real property records, HB 4748 would authorize multiple-award state purchasing contracts, and HB 4765 would clean up code enforcement officer licensing rules. HB 4134 would allow motor vehicle creditors to charge limited fees for electronic payment options while requiring a free alternative, and HB 1043 would direct a study of blockchain-based property title records; both drew testimony, with some concern about the practical effects and vendor implications of the blockchain study. Several bills addressed insurance, workforce, and digital-asset regulation. HB 3520 would reduce the insurance coverage required for transportation network companies during the period when a driver is en route to pick up a passenger, drawing support from Texans for Lawsuit Reform and opposition from trial lawyers who argued the higher coverage better protects the public. HB 3320 would create a self-insurance pool for religious institutions, with TDI explaining it would still be regulated but operate under a special statutory framework. HB 4233 would modernize rules for digital asset service providers by removing certain auditor-access requirements and updating reporting and licensing provisions. HB 3923 would reduce bachelor’s-degree requirements for some state jobs, though Every Texan argued low pay, not degree requirements, is the main driver of turnover. HB 4518 would create a legal structure for decentralized unincorporated nonprofit associations tied to blockchain governance; business law experts opposed it as unnecessary and potentially risky, while crypto advocates supported it. Finally, HB 1803 would join an interstate compact for dentists and dental hygienists, with supporters citing workforce shortages and opponents saying Texas already licenses quickly and that the compact could weaken state oversight. Throughout the hearing, the committee repeatedly closed testimony and left bills pending, and a quorum was eventually established before later items were heard.

Transcript Highlights:

• <00:14:56.440> books valuation or closed uh um audited books valuation or closed uh um audited
• <01:11:06.440> set were struggling to do the audit set were struggling to do the audit set
• 1% of those audit set-aside funds.
• audit uh audit set be a line that says audit uh audit set aside<01:24:45.280> when<01:24:45.400
• a requirement for audits.

Keywords: 928, house, all

Summary: The committee took up House Bill 2 retirement provisions, focusing on Group Two/Tier B changes in pages 25-39. Jan Goodwin of the New Hampshire Retirement System and deputy chief counsel Mark Kavanaugh explained that the 2025 bill is largely similar to prior versions, but it restores certain pre-2011 benefit rules for Tier B members, including changes to average final compensation and earnable compensation, and it also addresses the annuity multiplier for years of service. Members discussed the tier structure, with Tier A referring to vested members, Tier B to those hired before 11/1/12 who were not vested, and Tier C to later hires. Several members expressed concern that the bill’s purpose was to restore Tier B benefits, not to change Tier A rules or create broader changes affecting newer hires. The retirement system flagged two likely drafting problems. First, it said a provision appears to omit a special-duty/earnable-compensation limitation in the Group Two section, which they believed was a scrivener’s error caused by moving language out of the Group One definition without adding it back for Group Two. Second, they noted the bill’s multiplier language overlaps with changes already enacted in HB 1647, which increased the multiplier for service beyond 15 years for Group Two and carried an estimated $26 million cost. The committee discussed that HB 1647 was originally broader in the House, but the Senate narrowed it to Tier B only. The actuary’s comparison of the 2023 and 2025 HB 2 versions showed the bills are close, but the 2025 version differs in funding and timing. Staff said the 2025 bill appropriates $2.5 million more per year for 10 years, and that, together with updated actuarial assumptions and a larger share of the affected tier having already retired or otherwise left service, results in a larger reduction in unfunded liability than the 2023 bill: about $98.2 million versus $68.5 million. Employer contribution impacts were described as small overall, though the 2025 bill was said to be somewhat more favorable than the 2023 version. Members also questioned why House Bill 1 only funds $5 million in the first year, and staff said that was tied to the governor’s revenue estimate and that the full funding does not begin immediately. No votes were taken in the portion provided; the committee mainly received testimony, asked clarifying questions, and noted that some issues would be addressed in the fiscal note worksheet.

Transcript Highlights:

• in a previous audit?
• audit for the single audit in this upcoming year.
• audit.
• audit on April 24th.
• 24 single audit.

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.

Transcript Highlights:

• done audits on this.
• um whether they went out and did audits um whether they went out and did audits but<00:13:40.480
• > I failed some of their audits and I I failed some of their audits and I I would<00:14:21.199>
• completing an audit. completing an audit.
• audits are fully completed. audits are fully completed.

Keywords: 1189, house, all

Transcript Highlights:

• disclose the information required, or if the appropriate party knowingly or recklessly provides materially
• lien or judgment lien on the unit or property due, and specifically for a condominium, any known material
• And single audit compliance, especially with there's a lot of complex funding streams from the federal
• And single audit compliance, especially with there's a lot of complex funding streams from the federal
• And if we really have the goal of timely audits... Thank you. ...and collaboration and support.

Bills: HB2015, HB2060, HB2062, HB2100, HB2118, HB2165, HB2258, HB2327, HB2397, HB2445, HB2460, HB2641, HB2745, HB2876, HB2917, HB4011, HB4049, HB4056, HB4087, HCR2013, HCR2016, HCR2040, HCR2044, HCR2048, HCR2056

Keywords: budget procedures, late filing penalty, accounting standards, financial reporting, state appropriations, abortion, educational institutions, health education, state aid, public schools, Buffalo Soldiers, monument, commemoration, Arizona, public funding, Wesley Bolin Plaza, military history, historical memorial, small land subdivision, land use

Summary: The committee approved the minutes from the prior meetings and then took up several measures, beginning with HCR 2013, which would proclaim June 2026 as Celebrate Life Month in Arizona. The resolution drew emotional testimony in support from Crystal Cooper and Bella Stockton, both of whom shared personal stories about living with spina bifida and argued for celebrating life and supporting people with disabilities. Senator Kennedy voted no, saying the resolution was symbolic and did not address practical supports such as paid family leave, health care, housing, and school meals. The committee ultimately gave HCR 2013 a due pass recommendation on a 4-1 vote, with two members not voting. The committee then advanced HB 2327, as amended, clarifying protections for eligible persons’ identifying information in county recorder records and explicitly excluding voter registration records from the confidentiality provisions. Representative Hendricks said the bill was intended to fix problems created by earlier language protecting elected officials and first responders. The committee also passed HB 2258, which adds La Paz County to the Tourism Advisory Council’s geographic area, with no opposition testimony. A longer debate followed on HB 2397, which expands HOA/condominium disclosure requirements for prospective buyers, including bylaws, declarations, plats, meeting minutes, and information about assessments and known defects. Representative Biasucci said the bill was about transparency for buyers, while the Arizona Association of Community Managers raised concerns about cost and the scope of the disclosure requirements; the Arizona Homeowners Coalition supported the bill but opposed an amendment that would require managers to be on site for capital projects. The committee adopted two Hoffman amendments and then gave HB 2397 a due pass as amended recommendation. The committee also passed HB 2015, which imposes penalties on state agencies that miss federal audit reporting deadlines, and HB 4049, which changes how the Attorney General represents DCS in cases alleging misconduct; both drew opposition over concerns about punitive penalties and existing conflict procedures. Later, the committee approved HB 4087, authorizing a memorial plaque for former legislator Barbara Love, and HB 2100, which allows counties to authorize certain small land subdivisions, despite objections that it could weaken water-supply protections. The committee then passed HB 2460, as amended, preempting local ordinances that penalize businesses for abandoned or stolen movable property such as shopping carts; supporters argued cities were charging victims of theft, while cities and towns said the bill would undercut local nuisance enforcement and shift costs to taxpayers. Finally, the committee began hearing HCR 2056, a proposed constitutional referral recognizing a right to refuse medical mandates, with Representative Cooper and supporters framing it as bodily autonomy and opponents warning it would weaken public health protections, especially in schools and during outbreaks.

Transcript Highlights:

• Virginia did an audit in 2019 to evaluate our incentives.
• Building materials are not exempted.
• So in Iowa, building materials are not exempt from sales taxes.
• Now, the software and building materials exemptions are refund-based exemptions.
• Now, the software and building materials exemptions are refund-based exemptions.

Bills: HF1277, HF1006

Keywords: data centers, tax exemption, Minnesota statutes, economic development, employment growth, property tax, abatement, land bank, redevelopment, political subdivision, 1183, house

Transcript Highlights:

• <01:22:02.320> government remains non-audited government remains non-audited government organization
• House Bill 1191 came from the audit committee. This is a confirming bill.
• references to the audit requirement. references to the audit requirement.
• 02.480> at<03:02:02.680> the legislative audit committee at the legislative audit committee
• <03:02:28.320> This if the fund would be audited. This if the fund would be audited.

Keywords: 981, all

Summary: The House convened with a quorum, approved the journal from March 9, 2026, and made several announcements about committee meetings and visiting student groups. Members also moved out of order to consider Senate Joint Resolution 11, which designates a portion of U.S. Highway 34 in memory of Sergeant John Jack Thurman. Supportive remarks highlighted Thurman’s Marine Corps service at Iwo Jima and his later work in Colorado. The resolution passed unanimously, 61-0, with four excused. The chamber then took up third-reading bills. House Bill 1213, continuing the Biomass Utilization Grant Program, and House Bill 1185, continuing the Cold Case Task Force and updating its sunset review, both passed 61-0. Senate Bill 7, allowing terminally ill patients to use medical marijuana in health facilities, drew supportive remarks about patient choice and district support and passed 49-12 with four excused. House Bill 1137, concerning requirements for campaign consultants, prompted extended debate. Supporters argued it would address conflicts of interest and protect candidates from unethical consulting practices, while opponents said the issue should be handled by contract rather than law and warned against further regulation. The bill failed on third reading, 26-35, with four excused. The House then moved to Senate Bill 1 on housing policy; the transcript cuts off during debate, with concerns raised about housing shortages, vacancies, and the risk of a housing bubble.

Transcript Highlights:

• And then also, if you don't mind answering, when was the last time you had an audit?
• Because I believe that the last time you've had an audit was maybe five years ago.
• And so can you tell us about that audit then?
• And have you addressed all of the concerns on that audit and the last audit?
• We did, Senator, Madam Chair, we addressed all the recommendations in the audit.

Keywords: 987, senate, all

Summary: The subcommittee heard an overview of the Governor’s housing reorganization proposal and trailer bill language that would consolidate several affordable housing finance programs under the new Housing Development and Finance Committee (HDFC). Administration officials said the plan is intended to create a one-stop application and award process, reduce duplication, and pair state subsidy with private activity bonds and federal tax credits so projects can move from award to construction more quickly. The proposal would also shift some positions and reallocate portions of the Affordable Housing and Sustainable Communities program and other housing funds. The Legislative Analyst’s Office said the concept has merit but raised concerns about the proposed bond set-aside floor and recommended more flexibility and earlier reallocation of unused bonds. Several senators questioned the structure and, especially, the proposed changes to the climate-related ASIC program, arguing that it could weaken the program’s original transportation-and-housing integration and that the budget lacks enough direct funding for core housing production programs. The item was held open. The committee then received an update from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal tax credit changes and state housing finance tools. Staff explained that federal H.R. 1 increased the 9% low-income housing tax credit allocation and reduced the bond-financing threshold for the 4% credit from 50% to 25%, allowing California to finance many more projects. They reported that emergency regulations were adopted quickly to implement the new federal rules, resulting in awards for 195 projects and more than 25,000 units in the 4% program, while the 9% program funded 58 projects and nearly 3,000 units. Members discussed the importance of state enhanced low-income housing tax credits, with committee questions focused on how much additional leverage state credits provide and how they help fill remaining financing gaps. The final portion of the hearing focused on the Civil Rights Department’s response to federal civil rights policy changes and on three programs facing the end of limited-term funding: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal civil rights enforcement has been weakened by closed offices, shuttered programs, and reduced support for fair housing organizations, while CRD’s open caseload has grown from about 8,700 to more than 12,000 matters. He said the department is using overtime, triage, and process reengineering to manage the surge and to direct people to the right services. Senators expressed strong support for continuing the programs and concern that California is being asked to do more with less as federal protections erode. No votes were taken on the informational items, and the committee discussed the vote-only budget requests for CRD separately.

Transcript Highlights:

• And then also just, if you don't mind answering, when was the last time you had an audit?
• The last time, I think you've had an audit was maybe five years ago. Is that accurate?
• And so can you tell us about that audit then?
• And have you addressed all of the concerns on that audit and the last audit?
• We did, Senator, Madam Chair, we addressed all the recommendations in the audit.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• We will continue to have audits and close out that needs to happen in the spring of next 27.
• That's just on the financial auditing side. They do a fantastic job there.
• Where we need to look at every staff and almost do a desk audit.
• We look to make sure their materials are not misleading, You know, because we can't know it all.
• We look to make sure their materials are not misleading, They're not false.

Keywords: 914, all

Transcript Highlights:

• On to slide two, I also have the slides that include videos and other materials.
• In the ETC status that was mentioned, we go through a qualifying process that opens us up to audits.
• Over the years, we have been able to go through many audits with no significant findings of noncompliance
• This is because they have already been vetted by the PRC as reliable operators who can pass audits and
• But no, most of the policies should be public-facing documents, published, validated by independent audits

Transcript Highlights:

• curriculum or digital literacy materials curriculum or digital literacy materials um um um for<00
• And so this would be a risk-based audit regime.
• Pre- and post-deployment audits by independent third parties.
• Categorizing all AI audit regime.
• <01:10:26.000> by and post deployment audits by and post deployment audits by independent<01:10

Keywords: 912, senate, all

Transcript Highlights:

• We also keep our audit revenues. A significant portion of our audit revenues.
• OK, when we go out and audit, etc.
• Our audit revenues, etc.
• We've been very efficient with our audit dollars.
• Second thing I touch on has really been around our field audits.

Keywords: 914, all