Transcript Highlights:

• So I guess my first question was: are there 6,000 hours worth of audits, triple the audit hours, that
• So, yes, there's absolutely an appetite for our audit staff to be conducting audits of the larger state
• Another tax credit that's sort of in the same vein is the manufacturing tax credit, which is a sales
• It's a different type of tax credit.
• Inflation Reduction Act tax credits.

Keywords: 987, senate, all

Transcript Highlights:

• Okay, we have the sunset review of the Credit Enhancement Eligibility Board, and it's a presentation
• by the Credit Enhancement Eligibility Board.
• So you can see here most of the credit ratings were enhanced from double B to about A minus.
• It's really just who can benefit from the enhanced credit rating in general.
• I think some fear audits; I welcome them.

Committee: Senate Senate Education Committee of Reference

Summary: The Senate Education Committee of Reference first heard a sunset review of the Credit Enhancement Eligibility Board. Governor’s Office staff explained that the board was created in 2016 to lower borrowing costs for qualifying schools by providing a state guarantee that improves credit ratings, but the board has no dedicated staff or budget and is now largely in a monitoring role because it has reached its statutory leverage cap. Members discussed the long maturities of the approved financings, whether rural districts might benefit from additional capacity, and why a 10-year continuation was being requested. The committee voted to recommend continuing the board for 10 years until July 1, 2036. The committee then heard a sunset review of the Western Interstate Commission for Higher Education (WICHE). WICHE’s president described the interstate compact, its regional student access programs—WUE, WRGP, and PSEP—along with behavioral health fidelity reviews and cooperative purchasing savings. Testimony emphasized tuition savings for Arizona students, the return of health care graduates to Arizona, and the value of regional collaboration. The committee voted to recommend continuing WICHE for 10 years until July 1, 2036. Finally, the committee reviewed the Arizona Department of Education School Safety Program performance audit. The Auditor General reported that the program has grown substantially, but many sampled schools were not fully complying with requirements such as operational plans, safety teams, training, activity logs, and reimbursement documentation. The department agreed with the finding and said it would implement the recommendations. The school safety director responded that the department has already begun tightening monitoring, training, and documentation procedures, and he answered questions about emergency plans and campus safety. No further action was taken on the audit, and the meeting adjourned.

Transcript Highlights:

• Thank you for the audit report.
• Safety Program Audit of 2025.
• It's a self-audit, essentially, and having ASU do that self-audit for you...
• Some numbers that came out of that audit. And this was not an audit of ADE.
• With that said, the audit—the audit was of 47 schools throughout our state, equally divided between 15

Committee: House Education

Keywords: 1182, all

Transcript Highlights:

• So the 2023-24 performance audit: no findings. The 2021-22 performance audit: no findings.
• Dual credit offerings.
• credits to students.
• credits to students.
• In terms of where we take dual credit from here, I'm a big believer in dual credit.

Summary: The Higher Education Institutions Committee met on the Minot State University campus for presentations on campus operations, enrollment, and new academic initiatives. President Shirley reviewed recent audits, noting mostly clean results with only minor technical findings, and highlighted MSU’s broad academic offerings, specialized accreditations, athletics, and partnerships with Minot Air Force Base and the MSU Development Foundation. Members asked about declining interest in teacher education, tuition waivers for athletes, dual credit incentives, and how MSU decides when to launch new programs and avoid duplication within the university system. Shirley also discussed several workforce-focused initiatives supported by the Legislature’s Workforce Education Innovation Funds, including the purchase of the Trinity Health Center West building for a downtown health sciences hub, a new daycare/preschool partnership near campus, the Aspire program to recruit rural students into teaching, and a paraprofessional-to-special-education degree pathway. Enrollment data showed overall headcount was flat at just under 2,750, but full-time equivalent enrollment rose slightly and new student numbers increased, including the largest freshman class in 15 years. The committee also discussed Minot State’s in-state tuition rate for all students, its dual credit “Emerging Scholars” scholarship, and concerns about the share of high school graduates who do not immediately pursue postsecondary education. Faculty then presented two new programs funded in part by WEAF: an Innovation Engineering degree and a master’s program in counseling with an integrated addiction studies focus. The engineering program was described as industry-driven, designed with broad early coursework, hands-on learning, and local employer input to prepare students for western North Dakota workforce needs; officials said it had already drawn more applicants than expected and would use renovated library space and donated or grant-funded equipment. The counseling program will be mostly face-to-face with hybrid options, aims to address shortages in mental health and substance use providers, and is structured to help students meet licensure requirements. Committee members asked about startup costs, licensure supervision hours, and whether the programs would be on campus rather than online, and presenters said both programs had recently received required approvals and were moving forward.

Transcript Highlights:

• an audit because the records are not very accessible, and so then they also have to pay for an audit
• an audit because the records are not very accessible, and so then they also have to pay for an audit
• an audit because the records are not very accessible, and so then they also have to pay for an audit
• an audit because the records are not very accessible, and so then they also have to pay for an audit
• </c> on the important of the R&amp;D tax credit on the important of the R&amp;D tax credit we've<00:49

Bills: HF4 , HF173

Committee: House Taxes

Keywords: tax relief fund, budget surplus, surplus revenue, tax rebate, tax refund, one-time refund, income tax, property tax, constitutional amendment, Minnesota Constitution, general fund, budget reserve, taxpayer relief, state surplus, fiscal forecast, wealthy taxpayers, high-income exclusion, 2026 ballot, referendum, surplus distribution

Transcript Highlights:

• for audits.
• what charges for audits.
• or the department that was being audited.
• or the department that was being audited.
• conducted by the state auditor and charges for audits.

Keywords: 908, all

Summary: The Senate met with a quorum present and handled a mix of conference committee appointments, appropriations bills, policy bills, and House amendments. Early in the session, the chamber appointed conference committees for SB 2399 and for House-amended SBs 2213 and 2354, and also named conference committees for HB 103, HB 1308, and HB 1169. The Senate then took up several appropriations measures, including HB 1612, which creates the North Dakota Center for Aerospace Medicine at UND; the Senate adopted an amendment shifting the funding to a one-time $250,000 Community Health Trust Fund appropriation with a required $250,000 match from other sources, and the bill passed 39-7. HB 1193, the “Back the Blue” grant, was amended to make the funding one-time and focus on officer retention, then passed 41-5. HB 1329, a government spending database proposal for school districts, was amended into a legislative study and passed 42-4. HB 1020, the water budget, received extensive amendments reducing and reallocating funding across major water projects, adding studies and oversight changes, and passed 45-0 with the emergency clause. HB 1581, a tribal tourism grant, also passed 40-6. The Senate rejected HB 1330, which would have authorized divestment from direct investments in Chinese companies; after debate over the prudent investor rule, trade impacts, and whether the bill singled out one nation in law, it failed 20-26. HB 1534, limiting property valuation increases, and HB 1266, adjusting the disabled veterans property tax credit, both failed unanimously or nearly so after committee recommendations against them. HB 1566, which would have created a regulatory framework for a product discussed as kratom, was amended on the floor to convert it into a study and then passed 31-15. The chamber also passed HB 2241 on charter schools after a House amendment changed the funding formula to the statewide average from the prior year, and HB 2022, the indigent legal counsel budget, after House changes added funding flexibility, offset lost fee revenue, and included a study on a public defender office. The Senate concurred in several House amendments and then passed a number of Senate bills. SB 2375, allowing joint negotiations between dental providers and insurers under Attorney General oversight, passed 44-2. SB 2251, clarifying that open records requests during state audits should be referred to the audited agency, passed 46-0. SB 2159, related to nuclear energy research, passed 43-3 after House amendments required Industrial Commission approval and consultation with the radioactive waste advisory council. SB 2155, changing gratis antelope license rules, passed 30-16 after debate over landowner rights and tag distribution. SB 251, setting fees and an audit for the Private Investigative and Security Board, passed 44-2. SB 2280, the prior authorization health insurance bill, passed 43-3 with a House-added study and consumer protections. SB 2023, the Racing Commission budget, passed 41-5 after a House change made internship funding one-time. SB 2232, changing prenatal substance exposure reporting requirements and related toxicology rules, passed 44-2. SB 2241, authorizing public charter schools, passed 39-7. The session ended while the Senate was still processing SB 2022’s final passage vote, but the bill had already cleared concurrence on House amendments.

Transcript Highlights:

• So a tax credit against corporate tax or sort of a tax credit that would be paid for by the General Fund
• We also added audit and protest workloads for our pass-through entities and our business entity audit
• We also added audit, protest workloads for our pass-through entities and our business entity audit cases
• All of the credits, especially in the first few years of the program, in excess of half of the credits
• Right now, we let the credits accumulate unfettered, but there's no upper limit on the amount of credits

Keywords: 988, house, all

Transcript Highlights:

• The audit we received on Wednesday was a desk audit.
• These audits could easily be done by desk audit at a much lesser price.
• <c> audit.
• First, requiring electronic notice before audits are done, not just the initial audit but all audits.
• </c><01:40:51.440><c> Um</c> initial audit but um all audits. Um initial audit but um all audits.

Bills: SB2275 , SB2390 , SB2540 , SB3142 , SB2414 , SB2340 , SB2848

Committee: House Health

Keywords: Medicaid, disability, buy-in program, workers with disabilities, income eligibility, premium structure, biomarker testing, health insurance, medical coverage, state law, health maintenance organization, juvenile justice, youth penalties, minors, court fees, court costs, fines, surcharges, restitution, fee waiver

Summary: The House Committee on Health heard testimony on a series of bills related to public health, pharmacy regulation, disability access, and health care infrastructure. HB 1535, creating an income tax credit for automated external defibrillator installations, drew support from the Department of Health, tax department comments, and public testimony emphasizing AED access in community and transit settings. HB 1765, requiring safety warnings for spear fishing gear, received comments from DLNR and strong support from a free-diving safety advocate who described blackout risks and argued for point-of-sale warnings. HB 1549, which would repeal the law prohibiting drug paraphernalia, drew mixed testimony: the Department of Health, the Public Defender, and harm-reduction advocates supported repeal as a public health measure, while HPD and a county prosecutor opposed it, warning it could encourage drug use and create public safety issues. The committee also heard HB 1550, which would exclude drug testing products from the definition of drug paraphernalia. The Department of Health and harm-reduction advocates supported the bill, saying drug checking tools save lives and help prevent overdoses, while one written opponent was noted. HB 1995, allowing people who are blind or deaf to receive disabled parking permits, drew opposition from the State Council on Developmental Disabilities, the Disability and Communication Access Board, and other opponents, while a few written supporters were also noted. HB 1671, allowing licensed dental hygienists to place interim therapeutic restorations in public health settings, received support from the Department of Health and several oral health organizations, with the Board of Dentistry offering comments. HB 1643, establishing a framework for pharmacy audits and record retrieval, prompted the most extended discussion. The Board of Pharmacy and independent pharmacy representatives supported the bill as a needed framework to limit burdensome audits and protect patient care, while HMSA raised concerns about possible conflicts with upcoming federal PBM reforms and potential unintended consequences. Committee members questioned both sides about timing and workload, and supporters argued the bill was needed now to protect rural and independent pharmacies. Finally, HB 1978, appropriating funds for a new outpatient care center in North Kona, received strong support from Hawaii Health Systems Corporation, Queen’s Health Systems, the Kona-Kohala Chamber, and others, who described it as a long-term investment in West Hawaii’s health care capacity and economy. No votes or final actions were taken in the portion of the hearing provided.

Transcript Highlights:

• We're included in those audits.
• they conduct audits of every insurer in the state of California were included in those audits.
• We had an audit in 2021. Those audits. We had an audit in 2021 that covered our 2020 fiscal year.
• They do get CE credit, continuing education credit, if they take it, but they have to go online and take
• It is, they do get CE credit, continuing education credit, if they take it, but they have to go online

Summary: The Assembly Insurance Committee held an oversight hearing on the California Fair Plan, focusing on its rapid growth, financial stability, rate adequacy, and role in the homeowners insurance market. Committee members described the Fair Plan as increasingly functioning as a “safety net” rather than a true insurer of last resort, while Fair Plan representatives said the plan was created by statute, is privately funded by member insurers, and is now taking on more business because of non-renewals and limited availability in the admitted market. They emphasized that the plan offers residential and commercial coverage, but not a full HO-3 homeowners policy, and said expanding into that product would require major new staffing, vendor, and claims infrastructure. A major topic was pricing and assessments. Fair Plan officials said their rates have historically lagged their projected costs, especially because reinsurance costs were not fully recoverable in rates until recently. They reviewed recent filings, including a 2023 filing that was reduced from an estimated 80% need to a 35.8% request after working with the Department of Insurance. They also discussed the plan’s reinsurance tower, a new catastrophe bond, and the $1 billion assessment triggered by the 2025 Los Angeles fires after losses exceeded available capital. They said AB 226 helped secure a $600 million line of credit to reduce assessment risk, and they thanked lawmakers for supporting that measure. Members raised constituent concerns about coverage limits, underinsurance, and misinformation from agents. Fair Plan officials said they do not deny applicants because their homes exceed the plan’s $3.3 million limit; instead, policyholders can combine Fair Plan coverage with excess insurance. They said broker training and webinars are being expanded to address misunderstandings, and they noted that raising the cap would depend on achieving actuarially sound rates and sufficient financial capacity. Members also asked about smoke claims from the 2025 fires; the Fair Plan said it has paid covered smoke claims under California law, reviewed closed claims, and removed the “sight and smell” language from its policy form after litigation and CDI action. Public commenters from the insurance industry, builders, agriculture, and nonprofit service providers largely urged faster depopulation of the Fair Plan, more adequate rates, and reforms to the clearinghouse process. Some warned that the Fair Plan is now competing with the admitted market because it can be cheaper in some areas, while others said the plan is still essential because the private market is not serving high-risk or specialized properties. The hearing ended without a vote or formal action, but committee members and Fair Plan representatives agreed to continue working on rate, transparency, and depopulation issues.

Transcript Highlights:

• carbon credits and um carbon credits and um &gt;&gt; you<00:21:20.640><c> know</c><00:21:21.200><c> in
• Audits are essential, and had the audits been done as required, when required, we never would have gotten
• </c> to SAU that do not turn in the audits to SAU that do not turn in the audits until<00:49:07.920><
• five,</c><00:50:43.520><c> eight</c> submitting audits three, five, eight submitting audits three, five
• Um and it and it conduct an audit.

Committee: Senate Election Law and Municipal Affairs

Keywords: 1191, senate, all

Transcript Highlights:

• I understand Santa Fe's audit, city audit is going to be late.
• Then they'll issue their audit.
• federal single audit at a roll-up level, instead of doing individual audits.
• states do individual audits.
• There wouldn't need to be an amendment to the state audit or the local entity audit unless there was

Transcript Highlights:

• </c><00:03:51.920><c> as</c> state's largest provider dual credit as state's largest provider dual credit
• As you all know, before being hired, a state audit was conducted in 2023.
• We also have multiple internal audits going on as well, and then our forensic audit, which you all helped
• </c> um before being hired uh a state audit um before being hired uh a state audit was<00:07:14.199><
• </c> the observations in the state audit the observations in the state audit we're<00:07:19.120><c> proud

Keywords: 958, all

Summary: The House Budget Review Subcommittee on Postsecondary Education met for its first meeting and heard an update from KCTCS President Dr. Ryan Corral. He opened with a brief report on flood impacts across the state, noting damage at Big Sandy and Hazard, support for displaced faculty and staff, emergency student aid, and the use of campuses as shelters and Red Cross sites. He then outlined KCTCS’s role as the state’s largest postsecondary system, serving about 107,000 students across 16 colleges and 70 campuses, with strong enrollment growth, major dual credit and GED operations, and a large workforce-training mission. Corral emphasized student support needs such as food, housing, and mental health services, and said KCTCS wants to expand work with incarcerated populations and recovery communities. Corral also described system changes focused on compliance, stability, leadership development, property disposal, and curriculum review. He said KCTCS has addressed prior audit findings, is conducting additional audits, has sold or is selling several buildings, and has removed 400 underutilized credentials to better align programs with employer needs. He highlighted transfer agreements with the University of Kentucky, University of Louisville, and Western Kentucky University, and said KCTCS is working to align training with employers and local governments. He also discussed the system’s response to House Bill 6 and the $90 million appropriated for an efficient operations and innovation plan, including three proposed capital projects: a Somerset Community College facility for diesel, automotive, welding, HVAC, CAD, and 3D printing; replacement of an outdated Louisville building; and a South Central/Glasgow allied health facility to expand nursing and related programs. In response to questions, Corral said the Blue Oval SK training building in Glendale is open and operational, though workforce demand there has been slower than initially expected, and that KCTCS is working with the company and state officials to cover operating costs. Members praised KCTCS’s workforce role and flexibility in meeting employer needs statewide. Representative Moll also commented on the system’s progress and importance to Kentucky’s workforce development. No votes were taken, and the meeting ended with adjournment.

Transcript Highlights:

• There are some a bigger tax credit.
• </c> accepts some sort of a uh tax credit accepts some sort of a uh tax credit would<00:44:47.760><c>
• </c> 261 um relative to election audits. 261 um relative to election audits.
• </c><01:02:35.760><c> has</c> the law stipulates that that audit has the law stipulates that that audit
• </c> keep that house with $4,000 tax credit keep that house with $4,000 tax credit on<01:12:53.280><c

Committee: Senate Election Law and Municipal Affairs

Keywords: 1191, senate, all

Transcript Highlights:

• Expenditures are pre-audited before a payment is made.
• Purchase cards are the county-issued credit cards.
• Of course, if they made an unlawful credit card purchase, or an inappropriate credit card purchase, they
• As for a county credit card, another example, well, let me go back before I go to the county credit card
• On county credit cards, during a routine county credit card audit, we found a number of inappropriate

Summary: The Intergovernmental Affairs Subcommittee met to review how county budgets are developed and how constitutional officers fit into that process. Davin Suggs of the Florida Association of Counties gave an overview of county budgeting, explaining the statutory framework, the role of property taxes and TRIM notices, the fiscal-year timeline, fund balances and reserves, and the Department of Revenue’s oversight. He emphasized that county budgets include the board’s budget plus the budgets of constitutional officers, and that relationships and communication are critical to resolving budget issues. A panel of constitutional officers then described their offices’ budget processes and responsibilities: Escambia County Sheriff Chip Simmons discussed law enforcement budgeting and the importance of negotiated agreements with county commissions; Alachua County Property Appraiser Aisha Solomon explained the June 1 budget deadline, valuation methods, and the appeal process for property assessments; Manatee County Clerk and Comptroller Angelina Coleniso outlined the clerk’s court and finance duties, the county-side budget process, and the clerk’s personal liability under section 129.09 for unlawful expenditures; Leon County Supervisor of Elections Mark Early described the cyclical nature of election costs, staffing, equipment, and the impact of turnout and election law changes; and Columbia County Tax Collector Kyle Keene explained that tax collectors’ budgets are reviewed by the Department of Revenue, with fee offices funding themselves through service charges and budget offices relying on county support. Members asked about personal liability for unlawful spending, conflicts between clerks and county commissions, property valuation and storm damage adjustments, reserve levels, and whether tax collectors can retain excess fees. Responses noted that clerks must refuse illegal expenditures, property appraisers use market-based assessments with VAB and court review available, counties should maintain healthy fund balances for cash flow and emergencies, and tax collectors generally must zero out year-end balances and distribute excess revenues to taxing authorities. The committee took no votes and adjourned after thanking the panelists for their testimony.

Transcript Highlights:

• So a tax credit against corporate tax or sort of a tax credit that would be paid for by the general fund
• We strongly support the tax credit.
• We strongly support the tax credit.
• We also added audit and protest workloads for our pass-through entities and our business entity audit
• We also added audit, protest workloads for our pass-through entities and our business entity audit cases

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• </c><01:52:36.639><c> from</c> required audits from required audits from $250,000<01:52:38.760><c> to
• </c> in line with nonprofit audit in line with nonprofit audit standards<01:52:44.960><c> this</c><01
• </c> financial review instead of a full audit financial review instead of a full audit maintaining<01
• audit remains required million a full audit remains required ensuring<01:53:43.119><c> the</c><01:53
• I was the... conducting an audit at the same time conducting an audit at the same time Financial<02:05

Committee: Senate Commerce

Keywords: 1191, senate, all

Transcript Highlights:

• We're way smarter than we give ourselves credit for.
• We're way smarter than we give ourselves credit for.
• I'd be happy to... we give ourselves credit for so there's we give ourselves credit for so there's precedent
• that we do the more than the audits that we do the randomized<00:36:49.319><c> audits</c><00:36:50.319
• </c> machines I think we should do an audit machines I think we should do an audit of<00:36:57.760><c

Committee: Senate Election Law and Municipal Affairs

Keywords: 1191, senate, all

Transcript Highlights:

• Uh, my bill HF 4119 increases the Homestead Credit and the renters credit in order to provide property
• That's why I brought forward this bill to increase the homestead credit refund and the renters credit
• refund and the the homestead credit refund and the renters's<00:03:09.280><c> credit</c><00:03:09.920
• The renters's credit necessities.
• </c> An expansion of the renters's credit An expansion of the renters's credit such<00:08:47.120><c>

Bills: HF4119 , HF3959 , HF3792 , HF3913 , HF3752

Committee: House Taxes

Keywords: property tax, renter credits, co-pay, housing affordability, tax relief, homestead, tax refund, Minnesota, tax increase, financial relief, homeowners, AmeriCorps, taxation, individual income tax, living allowances, stipends, national service, tax compliance, revenue, analytics

Transcript Highlights:

• We completed an audit.
• We would have to pay for those independent audits.
• And the audit that I'm pointing out, the Crow audit from 2021, talks about how it recommended aligning
• I'll look into the OEIS audit that was referenced.
• I'll look into the OEIS audit that was referenced.

Committee: House Utilities and Energy

Keywords: 988, house, all

Transcript Highlights:

• We did not talk about credit unions.
• </c> credit unions is here with me. credit unions is here with me.
• </c> Current statute doesn't allow credit Current statute doesn't allow credit unions<00:10:14.240><c
• </c> Credit Union Association. Credit Union Association.
• If there's an audit filed and there is a problem with the audit, they're still with the Department of

Committee: Senate Finance

Keywords: 1191, senate, all