Transcript Highlights:

• So we then recommend that the North Dakota University System review its procedures and internal controls
• if the system is a service organization.
• going on at the university system.
• and the system office.
• We'll complete the remaining reviews at DCB and DSU, and after that, we will issue our system-wide analysis

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Transcript Highlights:

• </c> systems to be able to implement those. systems to be able to implement those.
• Um the next one review and approval.
• </c><00:47:37.040><c> and</c> this one is pending CMS review and this one is pending CMS review and approval
• ,</c> there was really a gap in the system, there was really a gap in the system, which<01:09:32.159>
• When we started tracking our K12 system.

Bills: HF3379

Committee: House Human Services Finance and Policy

Transcript Highlights:

• As you all know, we have invested heavily in EHR systems, in technical infrastructure, in cloud systems
• , but in systems like your laboratory information management systems and your PACS, which is where your
• for use within their own health system.
• And that ethics review then gets reviewed by another committee that I'm on.
• We then review those. We have a big interspending group that reviews those things.

Summary: The hearing focused on how artificial intelligence is being used across California’s life sciences sector, from research and drug discovery to digital health, medical devices, and patient care. Chair Ward and Chair Bauer-Kahan opened by emphasizing California’s leadership in biotech, the need to preserve that ecosystem, and the importance of balancing innovation with privacy, consumer protection, and equitable access. They also highlighted the potential role of public compute and public-private partnerships, including CalCompute, in keeping California competitive. The first panel featured representatives from UCSF, the Parker Institute for Cancer Immunotherapy, and Lawrence Livermore National Laboratory. Dr. Ida Sim described AI-enabled digital health tools, including sensor-based blood pressure monitoring and efforts to connect wearable data with electronic health records through open infrastructure. Dr. Karen Knudson focused on cancer, saying AI can accelerate drug discovery, improve learning from every patient, and expand clinical trial access. Dr. Shankar Sundaram discussed AI for public health and biosecurity, including outbreak prediction, antibody redesign, and the need to unlock data, expand compute access, and support public health agencies. Panelists also discussed privacy, HIPAA/CMIA protections, open-source versus closed models, validation, and the need for faster, more modern FDA pathways. The second panel included speakers from Pangea Data, Dexcom, Eli Lilly Ventures, and Twist Bioscience. Dr. Vibhur Gupta described AI systems that identify care gaps in electronic health records and argued for reimbursement frameworks that would let such tools scale beyond large health systems into rural care. Dexcom’s Ginny Hu explained how the company uses AI in its continuous glucose monitoring products, with strong FDA-aligned verification, validation, cybersecurity, human oversight, and post-market monitoring. Eli Lilly’s Danjima Corliss emphasized AI as a scientific collaborator in drug discovery and highlighted Lilly’s high-performance computing investments in California. The discussion continued to return to data access, model transparency, regulatory modernization, and how California can support innovation while protecting patients.

Transcript Highlights:

• Review Act.
• Review Act.
• Review Act.
• Review Act.
• Review Act.

Summary: The House convened with prayer, a moment of silence for former Judge John Carlin, the Pledge of Allegiance, and a recognition of FSU Police Officer Cody Popple for his actions during the April campus shooting. The Speaker also outlined the final week of session, noting the House would focus on Senate bills and returning messages, and that the 2026-27 budget would not be completed by the end of the week. The chamber then adopted the special order calendar for the day. The House passed several technical and open-government bills, mostly on strong bipartisan votes. These included SB 100, SB 104, and SB 102 on the Florida Statutes and reviser changes; SB 7006, SB 7014, SB 7002, SB 7012, SB 7024, SB 7016, SB 7026, SB 7008, SB 7000, and SB 7004, which extended or preserved various public records or meeting exemptions involving the Public Service Commission, social media investigations, military affairs, highway safety investigations, cybersecurity, small business loan records, trade secrets, emergency shelter locations, and conviction integrity units. Members asked questions on several of these bills, especially about the scope and purpose of the exemptions, but the bills generally advanced with little opposition. The chamber also took up more substantive measures. SB 7040 recreated the emergency preparedness and response trust fund and drew extended debate over whether the fund had been misused for the Everglades detention facility; an Escamani amendment to let the fund expire failed, while a Griffiths amendment adding limits and oversight was adopted, and the bill ultimately passed 82-25. CS/CS/SB 302 on coastal resiliency passed unanimously after supporters highlighted nature-based shoreline protection and a Biscayne Bay provision. CS/CS/SB 984 on firefighter cancer benefits passed after a House amendment aligned it with the House version. CS/SB 474 on military affairs passed unanimously after an amendment allowing local governments to extend Guard leave. SB 488 on the Department of Highway Safety and Motor Vehicles was debated extensively over vehicle registration requirements, license plate frames, and I-94 documentation, with amendments including one for disabled veterans and another on dealer allocation; the transcript cuts off before final disposition of that bill.

Transcript Highlights:

• systems, we're actually talking about real people.
• Does it go to the rebate system first? Does it go to the 340B system first?
• Does it go to the rebate system first? Does it go to the 340B system first?
• PBMs just suck money out of the system.
• also look at cost drivers at the health system level and subject that system to targets.

Summary: The Assembly Health Committee met on April 22 and took up a special order of bills focused largely on prior authorization and utilization management in health care. The chair framed the discussion as part of a broader legislative effort to reduce delays and barriers to care, especially in behavioral health, chronic disease management, cancer treatment, and rehabilitation services. AB 384 by Assembly Member Connolly would prohibit prior authorization for inpatient mental health or substance use emergency admissions and related physician care; supporters said it would prevent dangerous delays in crisis care, while insurers and health plans warned about fraud, abuse, and ambiguity around residential treatment facilities. The bill was moved on a due pass as amended motion and passed the committee on a party-line style vote, with Republicans largely absent or not voting. The committee then heard AB 510 by Assembly Member Addis, which would require health plans, upon request, to provide a peer reviewer of the same or similar specialty when a treating provider appeals a prior authorization denial or modification. Supporters argued that specialty-matched review would make appeals fairer and more clinically informed; opponents said the requirement was too rigid and that timelines and electronic submission rules needed changes. After discussion about the need for timely, specialty-specific review, the bill was approved on a due pass as amended motion and placed on call. AB 539 by Assembly Member Schiavo would extend prior authorization approvals to one year or the duration of the physician’s prescribed treatment for chronic conditions; supporters cited repeated denials and treatment interruptions, while opponents raised concerns about overbreadth, fraud, and the need for shorter validity periods. The bill was also passed as amended and placed on call. The committee next considered AB 669 by Assembly Member Haney, which would bar concurrent and retrospective review for the first 28 days of medically necessary substance use disorder treatment and limit prior authorization for related outpatient medications. The bill was presented with a powerful personal story from Ryan Matlock’s mother about her son’s death after an insurer cut off treatment early; supporters said the measure would keep patients in care long enough to stabilize, while opponents argued it would reduce oversight and could allow lower-quality or non-evidence-based care. The bill was moved on a due pass as amended motion and placed on call. Finally, AB 512 by Assembly Member Harabedian would shorten prior authorization response times to 24 hours for urgent requests and 48 hours for non-urgent requests; supporters said delays can worsen outcomes, while opponents warned the timelines were unrealistic and could increase administrative burdens and safety issues. The bill was approved as amended and placed on call. AB 574 by Assembly Member Mark Gonzalez was then heard; it would allow up to 12 medically necessary physical therapy sessions for a new episode of care without prior authorization, with supporters emphasizing stroke and neurological recovery and opponents warning of reduced oversight and unnecessary care. The transcript ends during testimony on AB 574, before final action is shown.

Transcript Highlights:

• This concludes the findings for the University of Arkansas System.
• I'm the Chief Audit Executive for the University of Arkansas System.
• when they do their annual reviews.
• And is this something that's included in your scope of review?
• This concludes the reports for review on the committee's agenda.

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The House and Senate Legislative Audit committee met to approve prior minutes and review four higher education audit reports. Staff first presented the University of Arkansas System report, which included three findings that had been certified and referred to the Governmental Bonding Board, the attorney general, and the appropriate prosecuting attorney: unauthorized purchases at UAPB totaling about $37,000, a fraud scheme involving falsified FAFSA/transcript records at East Arkansas Community College with about $66,000 in losses, and unallowable charges in the Veterans Upward Bound program at UA Fayetteville totaling $8,500, of which $6,700 was recovered. Committee members praised the institutions’ internal audit and management teams for identifying the issues and asked detailed questions about how the fraud was detected, especially the online student identity-theft scheme at EACC and the safeguards now being used to verify student identity and prevent similar cases. EACC officials explained that the fraudulent admissions involved online applicants using falsified transcripts and identity-theft tactics, that 39 suspicious students were identified, and that seven slipped through far enough to receive federal aid, resulting in a $2,500 reimbursement obligation to the university. They said the college now uses a cross-departmental student validity team, extensive red-flag protocols, direct outreach to high schools, ID verification, and other checks, and that the issue has been shared across the UA system and with other campuses. UA Fayetteville also clarified that no veterans were harmed by the Veterans Upward Bound finding; the program was closed and students were redirected to other veteran support programs in the state. The committee then deferred the Northwest Arkansas Community College report. Staff next summarized two additional reports, from Southeast Arkansas College and Southern Arkansas University Tech, which contained only financial statement misstatements corrected during audit fieldwork; SAU Tech also had a finding involving unauthorized withdrawals that the college discovered and recovered. With no further questions, the committee voted without objection to file the reviewed reports and adjourned.

Transcript Highlights:

• This concludes the findings for the University of Arkansas System.
• I'm the Chief Audit Executive for the University of Arkansas System.
• when they do their annual reviews.
• And is this something that's included in your scope of review?
• As far as it being in the scope of our review, As far as it being in the scope of our review, that's

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The House and Senate Legislative Joint Auditing Committee met to adopt the minutes from its December 11 meeting and then reviewed four higher education audit reports. Staff summarized the University of Arkansas System report, which included three findings that were reported to the Governmental Bonding Board, the prosecuting attorney, and the attorney general: unauthorized purchases at UA Pine Bluff totaling about $37,000, a fraud scheme involving falsified FAFSA/transcripts at East Arkansas Community College with a reported loss of about $66,000, and unallowable charges to the Veterans Upward Bound Program at UA Fayetteville totaling $8,500, of which $6,700 was recovered. University representatives said the issues were identified through internal audit or management review, and they described corrective actions already taken. Committee members focused most of their questions on the East Arkansas Community College fraud, which involved 39 suspected fraudulent online students using falsified transcripts and identity-theft tactics. EACC officials said all but seven were removed before federal aid was disbursed, that the college had to reimburse about $2,500 for aid that went out, and that the school created a student validity team, added red-flag protocols, and shared the information with other UA campuses. Members also asked about whether the problem was tied to FAFSA changes, how the fraud was detected, whether IP addresses and other indicators were checked, and whether similar issues were being shared across institutions. Staff said campuses are required to report suspected fraud within five business days and that the issue is now being discussed more broadly because it has become a national problem. Representative Painter also asked about the Veterans Upward Bound finding, and UA Fayetteville officials said no veterans were harmed; the program was closed and students were redirected to other Veterans Upward Bound programs in the state and to the campus veterans center. The committee then deferred the Northwest Arkansas Community College report, and staff summarized two additional reports from Southeast Arkansas College and Southern Arkansas University Tech involving financial statement misstatements corrected during audit fieldwork, plus unauthorized withdrawals at SAU Tech that were discovered and recovered. With no further questions, the committee filed the reports as reviewed and adjourned.

Transcript Highlights:

• </c> our disability service system. our disability service system.
• We have the opportunity to fortify these systems and build systems that prioritize the needs of people
• </c> fraud within the Medicaid system. fraud within the Medicaid system.
• </c> caused a quite a a stress in our system. caused a quite a a stress in our system.
• </c> prepayment review steps and timelines. prepayment review steps and timelines.

Committee: Senate Human Services

Transcript Highlights:

• that midpoint review unless the court makes a similar finding.
• I think this is a very logical one that ...for a midpoint review.
• We need to help our court system out.
• This is mid-sentence review. ...needs to be taken very seriously.
• The court systems, once again, they're going to have to be doing these reviews.

Bills: SB6062 , SB6080 , SB6184 , SB6224 , SB6255 , SB6286 , SB6308 , SB6319 , SB5977 , SB5979 , SB6249 , SGA9299

Committee: Senate Human Services

Keywords: juvenile justice, criminal offense, minors, rehabilitation, legal provisions, contracts, jails, federal custody, municipal agreements, incarceration, law enforcement, homeless youth, youth services, mental health, support programs, state law, behavioral health, children, support services, poverty reduction

Transcript Highlights:

• EPA, is that the immunotoxicity reviews are waived at the U.S.
• We also have concerns around the review.
• We all are proud of our most amazing higher education system, the greatest public university system in
• the world: the UC, the CSU, and the community college system.
• What we find oftentimes is that the systems that we have aren't necessarily compatible with the systems

Committee: Senate Environmental Quality

Transcript Highlights:

• </c><00:10:52.320><c> that</c> missing pieces within the system that missing pieces within the system
• Um for instance, there's review NDAs.
• </c> toward a remote public access system. toward a remote public access system.
• ><c> would</c> A comprehensive interim review would A comprehensive interim review would allow<00:48:
• A review of continued child abuse.

Summary: The Judiciary Interim Committee met under time constraints and asked members to rank interim topics for a letter to Management Council. The committee then took brief public testimony on a series of proposed study topics, with no formal votes recorded in the transcript. Early testimony focused on landlord eviction rights, where speakers said the court eviction process is too slow, can worsen housing shortages, and leaves landlords unable to recover rent, fees, or damage costs. The foster care topic was presented as a request to examine whether the system gives too much weight to reunification and not enough to the child’s best interests, especially for younger children. A Blue Envelope Program proposal was also discussed; supporters said it would help law enforcement communicate with autistic or otherwise communication-challenged individuals during traffic stops and emergencies, and improve consistency statewide. The committee also heard a proposal to study Wyoming’s homicide-by-vehicle statute, with testimony from a constituent whose mother was killed by a repeat dangerous driver. Speakers argued the current law leaves a gap because prior DUIs, high-risk driving history, and other aggravating factors do not meaningfully affect charging unless intoxication or extreme conduct is present. Related testimony from Wyoming Pathways said the change should be a tool in the toolbox for prosecutors and could improve safety for pedestrians and drivers. Senator Cooper then raised campaign finance reform and dark money, urging a resolution asking Wyoming’s congressional delegation to seek a constitutional amendment to overturn Citizens United and restore state control over election spending transparency. Additional topics included a request from the Wyoming Livestock Board to review peace officer statutes so its investigators could act on felonies committed in their presence or prevent imminent bodily harm, while remaining within their current duties and certification. Representative Lee asked for review of non-disclosure agreements in public-private partnerships and executive sessions so the public can eventually understand how such agreements were used. Senator Pearson asked for interim consideration of shared custody amendments, saying fit parents should have a fair opportunity for shared parenting after separation. Representative Storer proposed revisiting DUI penalties, especially for refusal of chemical testing, arguing that refusal often prevents prosecution and that the law should impose treatment and license suspension consequences. The committee also heard a request to review statutes involving political parties, and the state court administrator asked for interim study of remote public access to court records, citing ongoing automation efforts, privacy concerns, and funding needs.

Transcript Highlights:

• And so I think many in the industry have been advocating for a better system, a more safe system.
• We are embracing tools and systems that allow us to work the human error out of the system.
• This kind of system, Vantis and other traffic management systems that will also come out are going to
• OMB received some funding for a systems mechanic because that is quite a mechanical system over there
• Plan review processes.

Summary: The committee began with roll call, introductions of a new fiscal analyst and a new member, and approval of the March 19 minutes. The first major presentation was from the Office of Management and Budget on the state’s general fund and special fund status through May. OMB reported general fund revenues were running below the legislative forecast by about $76 million, driven largely by weaker individual income tax and sales tax collections, though the projected ending balance remained positive and above the budgeted level. The budget stabilization fund was above its cap and would transfer excess earnings to the general fund, and the legacy fund balance continued to grow. Members also asked about federal funding uncertainty and mineral leasing revenue variability. The committee then reviewed compliance reports and trust fund analyses, followed by discussion of a bill draft for the fixed-route city transportation network study. The draft would create a $15 million general fund grant program with a formula-based distribution to eligible fixed-route transit cities, intended to support operating and capital needs and help match federal transit funds. Transit officials from Minot and Fargo testified in support, explaining local fare and match structures and the difficulty of replacing aging buses and securing federal matching dollars. Several members questioned whether the program should be limited to the current four cities or broadened to future eligible urban areas, and whether local funding sources should be explored further. The committee did not finalize the bill draft at that point and planned to continue discussion at a later meeting. The committee also approved a bill draft repealing obsolete language related to approval of a bi-state authority with South Dakota, after staff explained that no agreements had ever been implemented and the provision appeared outdated. A roll call vote was taken and the motion carried. Later, the Department of Commerce and the Northern Plains UAS Test Site presented updates on uncrewed aircraft systems initiatives, including the Vantis radar data enclave, the drone replacement program, and efforts to build a revenue model for Vantis. Test site officials said FAA approval had been secured for the radar data program, replacement of noncompliant drones was underway, and future revenue could come from state and external users once pricing and intellectual property arrangements are finalized. Members asked about Chinese-made drones, supply chain issues, automation, and how the system would manage beyond-visual-line-of-sight operations. The Department of Corrections and Rehabilitation then presented on the design of a new minimum-security prison and a reentry housing study. Officials said the proposed facility would relocate the minimum-security prison to the penitentiary campus, reduce costs from an earlier estimate, and provide more beds and programming space, with construction potentially beginning in 2027 and opening around 2031. They also described staffing needs, the planned move of women to the New England facility, and possible expansion of men’s housing there. The parole and probation chief described a reentry housing task force studying housing needs for people leaving incarceration, with a goal of developing data-driven recommendations for subsidies and support services; a representative from Protection and Advocacy closed by expressing general support for fixed-route and paratransit funding.

Transcript Highlights:

• And of those, how many were you able to review? Mr.
• Chair, Representative Villegas, for our sample, we reviewed 125.
• Supervisors reviewing that and making sure that the documentation is in the Guardian system.
• Supervisors reviewing that and making sure that the documentation is in the in the guardian system.
• Now I know that this has been a systemic problem for years.

Committee: House House Government Committee of Reference

Summary: The Committee on Government convened, took roll, introduced members and staff, and heard an Auditor General presentation on a special audit of the Arizona Department of Child Safety’s handling of non-criminal child abuse and neglect reports. The audit found that while DCS generally met initial contact timeframes in most cases, 123 of 125 sampled cases had at least one policy noncompliance issue, including failures to properly notify alleged perpetrators of rights and allegations, incomplete or undocumented investigative steps and safety plans, and investigations that exceeded required timeframes. The Auditor General said DCS agreed with the findings and would implement the recommendations; members asked about sample size, staffing, turnover, and whether the problems were systemic and documentation-related. The chair also gave an opening statement emphasizing oversight of DCS and the committee’s intent to focus on systemic issues and child safety. The committee then considered House Bill 262, which authorizes a memorial for the Buffalo Soldiers at Wesley Boland Plaza. Several supporters testified about the historical significance of the Buffalo Soldiers and the importance of recognizing their contributions in Arizona. Members from both parties spoke in support, and HB 262 passed unanimously with a due pass recommendation. The committee next heard House Bill 2018, which would prohibit DCS from entering into agreements with health care institutions that allow or require payment in exchange for reports of child abuse or neglect. The sponsor and supporters argued the bill was needed to prevent financial incentives from influencing reporting and to protect parents’ rights, while some testimony described alleged overreporting and harmful removals tied to hospital reporting arrangements. Members debated whether there was a sufficient paper trail for such payments and whether the issue was limited to one hospital or broader; the sponsor said DCS had not provided requested data and that subpoena power might be needed. After a recess and further discussion, HB 2018 passed on a 4-3 vote and the committee adjourned.

Transcript Highlights:

• Welcome to the Joint Legislative Audit and Review Committee's Initiative 900 performance audits by the
• I am chair of the Joint Legislative Audit Review Committee, Representative Jerry Pollack from the 46th
• An evaluation system, I should say, that takes into account many different sectors.
• Please don't apologize for giving an systems answer, which is what we need.
• That's JLARC, standing for Joint Legislative Audit Review Committee.

Committee: Joint JLARC I-900 Subcommittee for SAO Performance Audits

Summary: The Joint Legislative Audit and Review Committee’s State Auditor Subcommittee held a hybrid public hearing on two Initiative 900 performance audits. The first audit examined CARES programs run by fire agencies to reduce non-emergency use of emergency systems. Auditors reported there are 52 such programs statewide, but many communities still lack one despite need. Key barriers identified were unstable funding, difficulty hiring qualified staff, lack of statewide guidance, and inconsistent access to patient records. The audit also found that only about half of programs tracked both required performance measures, and it recommended legislative action to consider private insurance reimbursement and to convene a statewide CARES work group. Fire agency representatives largely agreed with the findings and emphasized that short-term grants and one-year contracts make programs hard to sustain, while some noted support from accountable communities of health and hospitals. Committee members asked about why only a small share of programs receive Medicaid or accountable community of health funding, and auditors clarified that the 10% figure referred to direct Medicaid reimbursement for treat-and-refer services, which some agencies do not pursue because the payment is too low relative to the administrative effort. Agency witnesses said ACH support can help but is often temporary and uncertain. Members also asked whether the new public safety sales tax authority could help fund these programs, but fire district representatives said it is generally not a direct option for them. The second audit focused on improving performance management in the Department of Commerce’s economic development programs. Auditors found the Office of Economic Development and Competitiveness lacks a division-wide strategic plan and has inconsistent performance management across its 16 programs. They recommended stakeholder engagement, clearer goals and measures, alignment between program and division goals, and stronger contract and grant performance provisions. Commerce officials agreed with the findings, said work on a statewide economic development plan is already underway, and described efforts to align divisional planning with broader agency strategy. The chair asked Commerce to return next year with progress updates, and the meeting ended with notice that written testimony could still be submitted and that another JLARC meeting would occur in November.

Transcript Highlights:

• We're all looking at ways to try to make the system work better.
• So this idea that we can somehow deregulate those systems and get more competition into those systems
• Most utility spending is reviewed before it enters rates.
• So we tend to plan on a broader system level.
• They are systemic climate threats.

Committee: Senate Energy, Utilities and Communications

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, wildfire costs, and the California Public Utilities Commission’s role. Chair and members framed the discussion around the challenge of transitioning to a cleaner grid while maintaining reliability and keeping bills affordable. The hearing also served as the annual update from the CPUC and the Public Advocates Office, with testimony from Professor Severin Borenstein and CPUC President-designate Alice Reynolds. Borenstein gave a primer on utility regulation, explaining that generation is largely deregulated while transmission and distribution remain regulated, and that most rate-setting follows cost-of-service regulation. He emphasized that the hardest issue is setting the allowed return on equity: too high can raise bills and encourage capital-heavy spending, while too low can deter investment and harm reliability. He argued there is no silver bullet, said performance-based regulation and price caps have limits, and suggested some costs now charged through electric bills—such as climate programs, low-income subsidies, and wildfire-related public policy costs—might more appropriately be paid through the state budget. Reynolds described the CPUC’s oversight role, saying the commission reviews utility spending through general rate cases, balancing accounts, and other proceedings, and that affordability is addressed through front-end scrutiny, post-spend accountability, and legislative direction. She highlighted wildfire mitigation as a major driver of rate increases, noted recent progress on clean energy procurement and battery storage, and said the CPUC is working on return-on-equity decisions, FERC advocacy on transmission costs, and implementation of SB 254 and other statutes. Members pressed on a range of issues, including wildfire securitization, load growth from EVs and data centers, gas-system stranded assets, balancing accounts, and a water-service dispute in Keene involving Union Pacific. No votes were taken; the hearing was informational, with several follow-up commitments from the CPUC to provide data and updates.

Transcript Highlights:

• We're all looking at ways to try to make the system work better.
• So this idea that we can somehow deregulate those systems and get more competition into those systems
• Most utility spending is reviewed before it enters rates.
• So we tend to plan on a broader system level.
• They are systemic climate threats.

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• </c> not work with the online filing system not work with the online filing system that<00:08:50.000>
• So once they get one this new system.
• </c> and enter it into the system. and enter it into the system.
• </c> system by Lori this year. system by Lori this year. &gt;&gt; Okay. &gt;&gt; Okay.
• </c> re-entered to into our system. re-entered to into our system.

Summary: The Kentucky Legislative Ethics Commission met on March 9, 2026, with a quorum present in person and one commissioner participating from Florida. The meeting began with the swearing-in of new commissioner Joe Palumbo, who briefly introduced himself and his family and business background. The commission then approved the February 2, 2026 minutes and approved the staff budget report, with staff noting the office remained within spending parameters. Staff gave an update on the heavy workload from re-registration and reporting season, saying roughly 4,500 re-registrations and about 10,000 total forms had been processed. They credited the new online payment portal with reducing manual work and discussed ongoing LRC technology work to build a new system for desktop use, online re-registration, payment processing, and a searchable register. Commissioners asked about the timeline and current paper-based process; staff said the system is being built from scratch and that, for now, forms are still often downloaded, completed, emailed or mailed, and manually entered by staff. The commission also reviewed financial disclosure processing. Staff said all required disclosures had been received except one outstanding candidate filing, and that the candidate was still officially running, so notice was being sent by certified mail under the statute. Staff explained that their review is for completeness rather than audit-level accuracy, and that disclosures from legislators, candidates, and certain upper-management/LRC officials are posted for public access. The commission then discussed its informal advisory opinions, including how staff tracks and organizes them, and praised staff for quick turnaround before voting to enter executive session to discuss confidential complaints and informal opinions.

Transcript Highlights:

• He said they will conduct targeted scope monitoring reviews, including case file reviews and expenditure
• sample reviews, as they would in a normal monitoring review.
• He acknowledged that the data systems still need work because they use different case management systems
• You can't say that WIOA programs are a system. That's not a public workforce system.
• We do second party reviews, which means someone who is not the caseworker reviews cases.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The meeting focused on Arkansas’s proposed workforce system overhaul, including a combined WIOA/Perkins state plan and a package of federal waiver requests intended to consolidate workforce governance, reduce administrative costs, and redirect more funding to training and supportive services. Commerce officials said the plan would replace the current structure of 10 local workforce boards and more than 200 board members with a single statewide board and one administrative entity, while keeping local offices open and using regional business councils to preserve employer and local input. They said the state has already reduced Commerce headcount and operating costs, and that the changes would improve coordination with higher education, adult education, vocational rehabilitation, DHS, and Arkansas Industry Connect. Much of the discussion centered on the waiver package, especially the proposal to make the state board function as the local board, allow more flexible movement of funds across regions, eliminate the WIOA “last dollar” requirement for training and supportive services, create affiliate sites instead of requiring every area to maintain a comprehensive center, and relax the 14 youth program element requirement. Officials said the State Board of Workforce Development approved the waiver package 11-3 before it was submitted to the U.S. Department of Labor, and that implementation would begin only after federal approval and a closeout process, likely taking up to a year. They also described plans to streamline referrals and data sharing, expand mobile and virtual services, and use a more centralized model to improve customer service and employer engagement. Members raised repeated concerns about rural representation, local control, board composition, and whether jobs and relationships would be lost if local boards were eliminated. Commerce officials responded that local offices would remain open, some current staff could be rehired by the state, and regional business councils would help ensure local employer voice. Several members also questioned how the funding was being used, citing audit findings that only about $1.8 million to $1.9 million of roughly $14 million to $15 million in federal workforce funds had gone to training and supportive services. Officials said the reorganization could increase annual training spending to roughly $6 million to $7 million by reducing overhead, one-stop operator contracts, and board administration. The committee also discussed how the changes might support workforce training facilities, apprenticeships, child care and transportation assistance, and employer-driven training in fields such as manufacturing, health care, technology, and welding. The Division of Higher Education also briefed members on Workforce Pell. Officials explained that the new federal program would extend Pell eligibility to short-term programs, but only within narrow limits, such as 150 to 599 clock hours and 8 to 15 weeks of instruction, with additional completion and employment benchmarks. They said Arkansas is working with colleges and universities to identify programs that fit the criteria and that the governor has designated the Division of Higher Education to lead implementation. No votes were taken by the committee during this portion of the meeting.

Transcript Highlights:

• And at the back end, it's the concurrent review of the construction plans.
• As we're building the system, let's approach...
• Can we have an on-site wastewater systems staff report? Thank you, Mr.
• systems are already designed by licensed professionals and engineers.
• systems are already designed by licensed professionals and engineers.

Summary: The Senate Local Government Committee heard several land use and infrastructure bills. SB 5633 on subdivision of land drew the most discussion: staff described a broad rewrite that would move many subdivision decisions from legislative bodies to administrative personnel, limit or eliminate public hearings for preliminary plats, require notice to nearby landowners, set completeness and 100-day decision timelines, and streamline concurrent review of related permits. Builders, Realtors, and some cities supported the bill as a long-overdue modernization that could reduce delays and housing costs, while county and city representatives raised concerns about eliminating public hearings, implementation details, and local accountability. The committee also heard SB 6274 on street standards and frontage improvements, which would require jurisdictions to identify infrastructure barriers to infill and middle housing and periodically review street and frontage standards; supporters said frontage mandates can make housing infeasible, while local government witnesses warned about conflicts with safety, ADA, and transportation goals. SB 6309 on high-capacity transit permits would let Sound Transit apply for permits before acquiring property and before some land use decisions, and would allow certain development agreements and subdivision exemptions to speed transit delivery; Sound Transit and city representatives supported it, and the committee waived the five-day notice rule to hear it. The committee also took testimony on SB 6279, which would incorporate the wildland-urban interface code into the state building code after statewide wildfire maps are completed and require state and local coordination on defensible space and local amendments. Supporters framed it as needed wildfire resilience planning, while opponents from counties, builders, environmental groups, and local officials argued the bill was premature, too rigid, and potentially inconsistent with environmental laws, local conditions, and insurance realities; several asked for more local flexibility, clearer map processes, and changes to the timing and scope of adoption. SB 6291 would extend from two to four years the period during which local health jurisdiction staff may inspect on-site wastewater systems under supervision before certification; public health officials supported it as a workforce and training fix, saying the current timeline is too short and costly. The committee also heard SB 5903, SB 6016, SB 5820, SB 6132, and SB 6189 in executive session, adopted substitutes on some bills, and advanced SB 6016, SB 5820, SB 6132, and SB 6189 out of committee by due-pass votes, with SB 6016 receiving a substitute and a member noting support but remaining concerns.

Transcript Highlights:

• The system punished me for surviving.
• And I'll take the mid-sentence review.
• Third, a periodic review of placement is valuable.
• Two would be to have the mid-range review done by the ISRB themselves, as they already do the reviews
• We know the system has faced some serious challenges.

Summary: The committee heard testimony on House Bill 2456, which would create a juvenile firearm early intervention alternative for youth charged in juvenile court with unlawful possession of a firearm in the second degree. Staff explained that the program would require prosecutor agreement, intensive community supervision, random suspicionless searches, therapy and mentoring services, periodic court review, and dismissal of the charge upon successful completion. The bill would also raise concealed pistol license fees by $100 each and dedicate the revenue to a new account funding the alternative. Representative Davis said the bill is intended to fill the gap between firearm possession charges and later juvenile sentencing, and to fund evidence-based services; one member questioned whether the fee increase functions more like a tax than a fee. The chair then paused testimony on HB 2456 to return to the other bill. The bulk of the hearing focused on House Bill 2389, which would expand suspended disposition alternatives, reduce some juvenile robbery sentencing ranges, add a midpoint review for certain youth committed to DCYF, and create new rules for juvenile rehabilitation capacity and emergency transfers. Supporters, including youth currently or formerly in juvenile facilities, defense advocates, restorative justice providers, and some judges, argued the bill would reduce overcrowding, improve rehabilitation, address racial disparities, and give judges more individualized options. Several testified that youth need treatment, family connection, and incentives for progress rather than long confinement, and that current sentencing practices are outdated and underuse suspended dispositions. Opponents, including sheriffs, prosecutors, county officials, victim advocates, and some judges, argued the bill would shift costs and responsibility to counties, require resources that do not exist, and weaken accountability for serious offenses such as robbery, assault, and trafficking. They raised concerns about expanded appeals, added court workload, the need for more staffing and programming, and the impact on victims and public safety. DCYF said it supports reducing overcrowding but wants clearer emergency transfer authority for Green Hill; facility staff described improved conditions as population has fallen, but said overcrowding still creates safety and programming problems. No vote was taken in the portion of the hearing provided.