Transcript Highlights:

• Generally, we found that the systems met or were reported and reviews of system documentation.
• As shown in the second row of the table, the two systems we reviewed were reportedly capable of making
• our review, with some systems demonstrating all five functions while others did not.
• systems were not functional at the time of our review.
• years ago, and the systems were still reportedly not fully operational at the time of our review.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee began with opening remarks about moving to a monthly, two-hour schedule for more timely and focused oversight of Auditor General findings. Members also recognized Melanie Chesney for 32 years of service to the Office of the Auditor General, with several speakers praising her work and her role in strengthening the relationship between the Auditor General’s office and J-LAC. The main agenda item was the Auditor General’s December 2025 special audit on the school safety interoperability fund and interoperable communication systems. Staff reported that about $26 million had been allocated to 14 law enforcement agencies for systems intended to improve real-time communication between schools and first responders. The audit found that all 14 agencies used the money for interoperable systems, but four agencies allowed private or tribal schools to participate contrary to statute, and several agencies failed to submit required annual expenditure reports. It also found that none of the three systems reviewed met every statutory requirement as written, in part because some requirements were vague or interpreted differently by vendors and agencies. The audit recommended that agencies recover and report any improper benefit to non-public schools, avoid using fund money for ongoing costs tied to non-public school participation, submit missing reports, and improve cost planning and contract monitoring; it also recommended that the legislature clarify eligibility for private and tribal schools and revisit unclear system requirements. The audit further found procurement and contracting problems at nine of 14 agencies, including weak or missing sole-source justifications, contracts that lacked accountability and termination provisions, and poor documentation of pricing and deliverables. Several agencies had not planned for ongoing annual costs, which the audit estimated could range from about $16,000 to $382,000 per rural county depending on the system. In the discussion, members expressed frustration with sole-source contracting and lack of documentation, and some said they would oppose future vendor bills without competitive bidding and stronger payment controls. The auditor also described mixed system performance: some agencies reported useful features such as panic alerts, camera access, and map sharing, but other systems were not fully functional or had never been implemented. The committee then heard from the Arizona Sheriffs’ Association, whose president said sheriffs support the goal of improving school safety, described county implementation challenges, and defended the use of local staff to manage the projects, while acknowledging that smaller counties face staffing and connectivity limits.

Transcript Highlights:

• The Tax Review Commission is required to review all tax expenditures for the state of Minnesota, and
• </c><00:17:11.199><c> whether</c> goes a really rigorous review whether goes a really rigorous review
• and a replacement of the Wi-Fi system, and then the telephone VoIP system was also upgraded.
• and a replacement of the Wi-Fi system, and then the telephone VoIP system was also upgraded.
• and a replacement of the Wi-Fi system, and then the telephone VoIP system was also upgraded.

Committee: House State Government Finance and Policy

Transcript Highlights:

• review.
• I was told that the state won't do a state review until someone has gone through the municipal review
• </c> septic system approvals and everything. septic system approvals and everything.
• </c><00:45:25.839><c> or</c> issues with failing septic systems or issues with failing septic systems
• ><c> built</c><00:45:27.280><c> to</c> septic systems that aren't built to septic systems that aren't

Summary: The subcommittee on SB 170 opened with the Pledge of Allegiance and then worked through the bill section by section, focusing first on a housing-related provision that would prohibit municipalities from requiring occupants to be related by blood or marriage. The chair proposed adding “school enrollment status” as a protected class to prevent towns from limiting where students may live, especially in Durham. Members debated whether that phrase was too vague and whether “educational status,” “enrollment status,” or “school enrollment status” was the best wording. Public testimony raised concerns that adding a new protected class could have broader implications under the state’s anti-discrimination law and could also affect municipal zoning authority, while supporters argued the bill was aimed at preventing local rules that restrict student housing and group living arrangements. The subcommittee did not take a final vote on that language during the discussion. The committee then turned to land-use and subdivision provisions. The Department of Environmental Services testified that its test-pit and related land-development rules are already protective of groundwater and surface water, and that municipalities sometimes impose stricter setbacks or other requirements locally. Builders and housing advocates argued that more stringent local requirements for test pits, well siting, and related approvals add time and cost and can impede housing development, while some municipal concerns were raised about aquifer and wellhead protection overlay districts and local groundwater safeguards. Public testimony also supported making state standards uniform across municipalities, though one speaker noted that local and state review processes can differ and that the bill could simplify approvals. The subcommittee also discussed a road-length provision, with one member supporting limits on municipal caps that could impede development and another suggesting a possible water-and-sewer-capacity qualifier. Additional sections were explained as allowing utilities and infrastructure to be placed in subdivision open spaces or perimeter buffers, and requiring municipalities to act quickly on plan changes after initial review. The chair indicated support for several of the sections as drafted, and the discussion ended with the committee moving through the remaining provisions without recorded final votes in the transcript.

Transcript Highlights:

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

Summary: The Senate opened with prayer, the Pledge of Allegiance, and several introductions recognizing guests and visiting groups, including the Challenger Learning Center, the Florida Dental Hygienists Association, Zeta Phi Beta, Pine Forest High School students, and others. Senators also noted President Albritton’s recovery and upcoming caucus and appointment announcements. The chamber then moved to the special order calendar. The main floor debate centered on Committee Substitute for Senate Bill 156, which increases penalties for crimes against law enforcement officers and other personnel, including making manslaughter of an officer punishable by mandatory life imprisonment without release and clarifying resistance to officers. Senator Leek described the bill as a compromise intended to honor Officer Jason Rainer, while Senators Rouson and Bracy Davis offered and then withdrew amendments. Senators Pizzo, Berman, Smith, Polsky, and others questioned the bill’s impact on self-defense, officer conduct, jury instructions, prosecutorial discretion, and the removal of language regarding unlawful force by officers. Supporters argued the bill corrects confusion and strengthens protections for officers; opponents said it removes civilian protections and imposes disproportionate mandatory sentencing. The bill passed 31-4. The Senate then passed SB 168 on public nuisances, expanding nuisance law to include gambling establishments and increasing penalties; SB 288 on rural electric cooperatives; SB 292 and SB 298 creating public records protections for appellate clerks and dating-violence victims; SB 296 establishing the HAVEN alert platform study and expanding address confidentiality protections for domestic violence victims; SB 364 modernizing CPA licensure; SB 386 creating protections for farm equipment purchasers; and several Open Government Sunset Review bills preserving or extending public records and meeting exemptions, including SB 7000, SB 7202, SB 706, SB 708, SB 7012, SB 7014, and SB 7016. Most passed with little or no opposition, though some of the public-records measures drew a few nays. At the end, the Senate waived rules to immediately certify passed bills to the House and adjourned until the next scheduled meeting.

Transcript Highlights:

• Look forward to reviewing the amendments.
• These accounts are only reviewed after the money has already been spent by the IOUs, and the review for
• As a result, this review is in practice less stringent than what is done when the CPUC can review and
• They must be reviewed and sometimes can be disallowed.
• It's about making existing systems work as intended.

Summary: The committee heard several energy, water, and utility bills, with extensive testimony on cost, ratepayer impacts, and climate or reliability goals. SB 919 by Senator Grayson would extend the biomethane monetary incentive program through 2030 and support renewable natural gas development by reducing interconnection cost barriers. Supporters said RNG helps methane reduction and organic waste diversion, while opponents, including TURN and environmental groups, argued the bill could shift costs to ratepayers and subsidize combustion-based fuels, especially dairy digesters. The author said committee amendments removed the rate-basing provisions and instead urged the CPUC to act quickly on its pending decision; the bill was left for a later vote. SB 931 by Senator Laird would reauthorize the Diablo Canyon Community Impact Mitigation Program through 2030. Supporters said San Luis Obispo County and local schools rely on the funding for emergency preparedness and public safety, while TURN argued the extension would add about $47 million in statewide ratepayer costs and should instead be paid from existing PG&E deal revenues. Members discussed the bill as a continuation of the 2022 Diablo Canyon agreement, and the author said the measure simply restores the five years omitted from that deal. The committee also heard SB 1215 by Senator Cortese, which would direct the CPUC to set deployment targets for EV charging in multifamily housing. Supporters said renters and apartment residents are largely shut out of home charging, and that prior utility programs showed the model can be cost-effective and beneficial to ratepayers. The bill was amended to address affordability, ratepayer benefits, and limits on major system upgrades. SB 1295 by Senator Stern would create a framework for using distributed batteries and other local resources to solve grid constraints more cheaply than traditional infrastructure. Supporters said it could improve reliability and reduce costs by targeting batteries where they provide the most grid value, while utilities said they were open to continued discussion. SB 1359, also by Senator Stern, would require the CPUC to more carefully evaluate major gas infrastructure investments and alternatives such as electrification before approving new spending. Environmental groups supported the bill as a guardrail against stranded assets, while gas utilities opposed it, warning it could undermine the obligation to serve, create safety and reliability risks, and retroactively change the rules for approved investments. On water policy, SB 1125 by Senator Menjivar would create a statewide low-income water rate assistance program upon appropriation. Supporters said about 1.6 million households have water debt and that affordability is a statewide issue, not just a problem for disadvantaged communities. Some members raised concerns that the bill lacked a funding source and that state mandates, such as chromium-6 treatment requirements, already strain local water agencies; the author and supporters responded that the bill includes administrative caps and transparency measures and is intended to work alongside future funding. The committee then heard SB 1098 by Senator Pérez, which would restrict the use of utility memorandum and balancing accounts by requiring exceptional circumstances, adding sunset dates, and creating cost-sharing or lower-return rules for certain spending. TURN and other supporters said the accounts allow utilities to recover costs after the fact with too little discipline, while Edison and PG&E opposed the bill, arguing that some costs are unpredictable and that the CPUC already has a formal review process. SB 1125 was moved to Appropriations with a roll call, and the roll was left open for additional votes; the other measures were discussed with no final committee actions announced in the excerpt.

Transcript Highlights:

• ,</c> and technical college systems, and technical college systems, governor's<00:09:35.760><c> offices
• </c><00:24:50.960><c> Our</c> of where we're at as a system. Our of where we're at as a system.
• The social to a review committee.
• ><c> committee</c> advisory panel and review committee advisory panel and review committee reviewed<01
• </c> feedback and implementation of systems. feedback and implementation of systems.

Committee: Joint Education

Transcript Highlights:

• system.
• the system office.
• the state higher education system.
• review process or cadence.
• review process or with some cadence.

Committee: Joint Higher Education Institutions Committee

Summary: The Higher Education Institutions Committee met at NDSU and heard an extensive presentation from President David Cook/President Stewart and NDSU leadership on the university’s priorities, including enrollment, student success, research growth, and use of New Horizons funding. Leaders emphasized NDSU’s land-grant mission, its role in workforce development, and its goal of becoming more distinctive through strategic planning, recruitment and retention, commercialization, and partnerships. They highlighted that NDSU awarded 2,370 degrees in 2025, produces a large share of the state’s engineering, nursing, and agriculture graduates, and reported strong outcomes for graduates staying and working in North Dakota. They also noted enrollment headwinds, competition from other institutions, and the need to manage tuition waivers more carefully through a scholarship optimization effort. Provost Sherry Vale outlined academic stewardship efforts, including review or consolidation of low-producing programs, strategic hiring tied to institutional priorities, faculty workload policy changes, and expanded online and regional offerings. She said the university is using New Horizons dollars to strengthen advising, student support, and programs in engineering, agriculture, and health. NDSU leaders also described new or expanded academic offerings such as robotics and automation, artificial intelligence, material science and engineering, nuclear engineering certificates, accelerated nursing, nurse practitioner certificates, a Master of Health Administration, and a clinical research master’s program with Sanford Health. They stressed that these investments are intended to improve student completion, meet workforce needs, and increase return on public investment. The committee also heard testimony from students and recent graduates who described the value of NDSU’s education, mentorship, internships, research opportunities, and support services. Alyssa Hodges spoke about pharmacy education, public health work, and campus support as a parent and student; Ethan Blessy described engineering coursework, internships with Marvin, and career preparation; and Aiden Freolic discussed neuroscience research, federally funded projects, and plans for graduate study. Their testimony was followed by presentations on partnerships with Gateway to Science for K-12 STEM outreach and with Sanford Research on biomedical research, clinical trials, obesity research, and a joint biostatistics hire. NDSU also highlighted systemwide shared services, Governor’s School programming, and research growth, including a reported 8% increase in research expenditures from $199 million to $215 million. No bill votes were taken; the meeting was informational and featured presentations, testimony, and discussion of future planning and partnerships.

Transcript Highlights:

• Okay, we have the Sunset Review. Thank you.
• In partnership with the Arizona Health Care Cost Containment System, we conduct these reviews statewide
• In partnership with the Arizona health care cost containment system, we conduct these reviews statewide
• The desk reviews, I've agreed to conduct a representative sample of those desk reviews.
• The desk reviews, I've agreed to conduct a representative sample of those desk reviews.

Committee: Senate Senate Education Committee of Reference

Transcript Highlights:

• How long do we give DOT to review our work?
• You want people to take the transit system. Using the transit system means... Thanks.
• Using the transit system means This money going into the transit system.
• You'll see in the comments a lot of comments about WSDOT reviews being very delayed, WSDOT review of
• an online permit review and tracking system.

Committees: Joint Transportation , Joint Joint Transportation Committee

Summary: The committee met in the Quad Cities area and first heard a joint presentation from public works directors from Richland, Kennewick, Pasco, and West Richland on regional transportation priorities, challenges, and project delivery. The cities said their priorities align with JTC goals such as safety, multimodal access, climate resilience, and economic development. They highlighted regional coordination through the Benton-Franklin Council of Governments and Good Roads, use of multiple funding sources including TIB, REIT, impact fees, transportation benefit districts, and tax increment financing, and a shared approach to Vision Zero, complete streets, ADA access, and active transportation planning. They also described major projects such as Richland’s downtown connectivity and SR 240/Aaron Drive improvements, Kennewick’s Columbia Center Boulevard corridor and rail study, Pasco’s Court/Road 68, Sylvester Street, Broadmoor interchange, and north-south bridge concepts, and West Richland’s SR 224 Red Mountain project. The directors also described common obstacles: rising construction costs, project phasing, permitting and right-of-way delays, utility coordination, pavement preservation needs, and workforce shortages. West Richland emphasized that its SR 224 project stayed on schedule by setting clear roles, maintaining frequent communication, resolving right-of-way issues early, and reducing contractor risk through detailed plans and utility relocation. Committee members asked about sidewalk connections to schools, state-agency right-of-way timelines, apprenticeship utilization, contractor selection, and whether complete streets requirements add burdens. The cities said sidewalk gaps are most common in older infill or unincorporated areas, state right-of-way processes can be slow, apprenticeship requirements are generally built into funded projects but are hard for smaller contractors to meet, and there is no easy fix for low-bid contractors with poor performance histories. After the local presentations, staff introduced a JTC-funded study on transit-oriented development policy, and Urban Institute researcher Yona Freemark presented findings from work covering 33 cities in the Puget Sound, Spokane, and Vancouver regions near rail and bus rapid transit stations. He said Washington faces a severe housing affordability problem, with rising rents and home prices, and that TOD can help connect housing and transit but must be tailored to different market conditions. The study found that higher-cost cities near transit have seen more development but also signs of gentrification and loss of affordable housing, while lower-cost cities have had less development and still face worsening affordability. Freemark identified barriers including high debt and construction costs, limited subsidy resources, high land costs, regulatory and parking requirements, and impact fees, and he said HB 1491 and related legislation may address some zoning and parking constraints. He recommended more targeted state support for neighborhood infrastructure around stations and policies that reflect the different conditions of high- and low-demand communities.

Transcript Highlights:

• It's more of a pointer system.
• So that is required in federal regulation, and the only system that does that is a system at AAMVA.
• Our goal is to launch the system, the vehicle registration portion of the system, this calendar year.
• But these systems are very complex, and we've modernized a bunch of our edge systems as well.
• But anybody in a business school would say you don't set up your system like we've set up this system

Summary: The committee first heard a DMV budget presentation on the state-to-state verification system required for Real ID compliance and the Digital Experience Platform (DXP) modernization project. DMV officials said the state-to-state system is a pointer-based exchange used when a person applies for a license in another state, with only limited identifying data shared initially and the full driver history sent only after a qualified request. Members raised concerns about privacy, possible misuse by other states or federal actors, notification to Californians, hacking, and whether California could detect or stop abusive access. DMV said it can monitor requests, see patterns of access, work with AAMVA and legal counsel, and seek to block or challenge misuse; LAO said California is in a difficult position and should consider guardrails rather than opt out. On DXP, DMV said the project is on its revised schedule and budget, occupational licensing is complete, vehicle registration is expected by the end of calendar year 2026, and the full system should be finished by fiscal year 2028-29, with phased rollout and reappropriated funding to keep costs controlled. The committee then heard from the California High-Speed Rail Office of Inspector General on a trailer bill and AB 1608. The Inspector General said current law does not clearly authorize public reports or establish a framework for retaining and disclosing work papers, and the proposed trailer bill would create that framework while also adding authority to hire needed classifications and purchase goods and services. He also said the office needs a clearer statutory definition of “proposed agreements” and notice when the High-Speed Rail Authority is reviewing them, so the office can review contracts and related agreements effectively. LAO raised no concerns with the trailer bill language, and Finance said any amendments would come in the May revision. Members debated the scope of confidentiality in the Inspector General proposal, especially whether reports could be held confidential when they identify weaknesses in fraud controls, security, or other vulnerabilities. The Inspector General said confidentiality would be temporary, tied to articulating the risk, reassessing it every 120 days, and releasing the report once the risk is no longer substantial; he also said the office had already published reports at its discretion and had found at least one procurement violation involving an amendment that added services not in the original contract. Several members pressed for stronger transparency and suggested time limits or broader disclosure, while others argued the bill would improve oversight and make the Inspector General’s authority clearer. No votes were taken during the discussion, and the item was left for further work on the trailer bill and AB 1608 language.

Transcript Highlights:

• </c><00:05:01.919><c> in</c> Wyoming has evolved into a system in Wyoming has evolved into a system in
• our legacy system, we were getting PDF applications in and having to review those and then email the
• </c> Riverton reviewing an application. Riverton reviewing an application.
• </c> uh that part of the system to work. uh that part of the system to work.
• So, I like our system. I tied to it. So, I like our system.

Committee: Joint Education

Transcript Highlights:

• for legislative review.
• I know we've reviewed it.
• "Yes, review meeting.
• We're in contracts review. K-1.
• month had been reviewed.

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• We have two paths now: the building code review board and the court system.
• We have two paths now: the building code review board and the court system.
• We have two paths now: the building code review board and the court system.
• We have two paths now: the building code review board and the court system.
• We have two paths now: the building code review board and the court system.

Committee: House Executive Departments and Administration

Transcript Highlights:

• A second review found additional failures involving vendor management and financial reporting systems
• A second review found additional failures involving vendor management and financial reporting systems
• Since 2008, we have had close to 300 audits, reviews, or assessments.
• In reviewing the questions for the audit, In reviewing the questions for the audit, a lot of these seem
• And objective six focuses on reviewing CalHR's plans. terms of their contracts.

Summary: The Joint Legislative Audit Committee met to hear new audit requests and receive a status update from the State Auditor. The auditor reported 10 JALAC audits in progress, noted that all 2025-approved audits are underway, said the first 2026 audit is focused on DMV license revocations, and described several statutory and high-risk audits already in progress. The committee also approved a consent calendar of four audit requests: UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then considered Assembly Member DeMaio’s audit request on SANDAG road project management. DeMaio argued the audit was needed to examine whether transportation funds, including voter-approved and restricted revenues, were used for allowable purposes and whether past management failures warranted outside review. SANDAG’s CEO and CFO said the agency already undergoes extensive oversight and audits, that funds are tracked by multiple “colors of money,” and that internal controls have improved. Several members questioned whether the issues were already addressed in public records or existing audits, and the request failed on a roll call vote. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, arguing that more transparency is needed on outcomes, recidivism data, and oversight of grantees. The BSCC said it already has oversight mechanisms, that the State Controller conducts biennial audits, and that program data shows positive outcomes. The committee approved the audit unanimously. Senator Cortese then presented an audit of CalHR’s dental benefits procurement and Delta Dental contract, citing long-standing benefit caps, provider network concerns, and retiree out-of-pocket costs. CalHR said its network remains strong, that it recently completed an RFP adding MetLife as a second carrier starting in 2027, and that contracts include performance guarantees. Members from both parties expressed concern about access and competition, and the audit was approved unanimously. The committee then completed add-on votes on the consent calendar and adjourned.

Transcript Highlights:

• They've reviewed the contract.
• I reviewed it.
• We are not, we have a legal system. We don't have a justice system.
• We may have a legal system. We don't have a justice system. Mark, I think you're a good guy.
• We don't have a justice system.'

Committee: Senate Senate Ad Hoc Committee on Elder Abuse

Summary: The Senate Ad Hoc Committee on Elder Abuse opened by explaining it was gathering testimony on elder abuse, especially alleged misconduct involving court-appointed systems such as guardians ad litem and fiduciaries, to identify gaps in law and oversight and develop legislative fixes. The chair limited each witness’s time, asked for names and contact information for follow-up, and repeatedly noted that some allegations might warrant referral to law enforcement, the attorney general, or county attorneys if basic criminal elements were present. Several witnesses described alleged abuse in guardianship, conservatorship, and fiduciary cases. Dr. Holly Lauder said her mother, who had Alzheimer’s disease, was subjected to allegedly deficient psychological capacity evaluations that ignored treating doctors and family input, leading to a fiduciary arrangement that later resulted in neglect. Kevin Axson described his mother’s probate case, saying a guardian ad litem and conservator were appointed after a family financial dispute, that the guardian ad litem and fiduciary had little contact with his mother, and that the estate was burdened with substantial fees and a $200,000 bond requirement. Frieda Alvarado testified about a 94-year-old client, Samuel Armento, saying he was isolated, medicated without his request, and treated without dignity after a fiduciary and care team took control. Bill Chalmers, Johnny Hamilton, and Kathy Hamilton also testified about Sam Armento’s case, alleging isolation, excessive fees, conflicts of interest, and poor oversight by fiduciaries and caregivers. Other witnesses raised broader concerns about Arizona probate practices. David Redkey said he has been under a long-running conservatorship despite earning degrees and maintaining capacity, and alleged that court-appointed professionals and fiduciaries overcharged his estate and blocked efforts to terminate the arrangement. Susan Wolfe described the Peyton case, alleging that a wife’s conservatorship and related court actions led to the loss of assets, exclusion of witnesses, and large fees for a relatively small monthly care bill. Dr. Lewis Heller, an OB-GYN and disciplinary committee member, said the medical evaluations he reviewed showed the people involved were competent and that the conduct he observed was unethical and possibly criminal. Renee Self testified that she lost her role as trustee and spent large sums defending her father’s estate, alleging that the probate process stripped her father of assets and limited her access to him despite APS findings that her actions were in his best interests. No formal committee votes or legislative actions were taken in the excerpt, but members repeatedly expressed concern, asked for documents and transcripts, and indicated they would follow up with witnesses and consider stakeholder meetings to craft legislation addressing oversight, transparency, and accountability in guardianship and fiduciary systems.

Transcript Highlights:

• But I worry the large caseload system.
• program review, budget and fiscal review, contract office review, that the things that are supposed to
• What that system is looking to accomplish is to update our aging legacy systems that are upwards of 40
• It will encompass our case management, our fiscal systems, the systems used by our state-operated facilities
• Really, the core of the trailer bill is to build in a governance system for our existing legacy systems

Transcript Highlights:

• We will go through those responsible use, security, and privacy reviews.
• In the case, again, in an active example here, it's a closed AI system.
• via our software risk review process.
• via our software risk review process.
• So as reviewers, we have a lot of information to share with everybody all at the same time.

Summary: The committee held a work session focused on technology in government, AI, broadband, and digital equity. Seattle CTO Rob Lloyd described the city’s AI strategy, emphasizing responsible use, privacy, security, community input, and data strategy. He said Seattle is using small pilots and partnerships to test AI for tasks such as public records processing, infrastructure inspection, and permitting, while keeping humans as the final decision-makers. Members asked about bias, liability, training on best practices, labor involvement, and public records; Lloyd said AI should remain an assistant tool, not a replacement for human judgment, and that Seattle is still testing solutions for records requests and permitting. WATech CTO Nick Stow and Deputy Director Mark Quimby discussed the state’s broader AI policy, the generative AI executive order, a sandbox with more than 15 agencies, and use cases including a resident portal, cybersecurity, and wildfire detection. They stressed consent, closed systems, human-centered design, and the need to govern all forms of AI, not just generative AI. Committee members raised concerns about federal data access, labor issues, and wildfire detection effectiveness. Spokane County IT staff described a more restrictive approach to AI, citing privacy, bias, and cyber risks. The county standardized on Microsoft Copilot as its only approved chat-style AI tool, blocked other AI chat platforms, and requires human review of all AI-generated content. They said AI is also being used by criminals for phishing and deepfakes, underscoring the need for strong policy and security controls. The committee also received an update from the Attorney General’s AI Task Force. Yuki Ishizuka said the task force has 19 members and eight subcommittees covering ethics, consumer protection, labor, health care, public safety, education, government efficiency, cybersecurity, and industry/energy. The task force is working toward an interim report due December 1, 2025 and a final report due July 1, 2026, and is reviewing recommendations through public forums and advisory committees. Ishizuka warned that a federal budget reconciliation provision could bar states from enforcing AI regulations for 10 years, and several members voiced support for state authority and asked about possible 2026 legislation. The committee then heard updates on broadband and digital equity. Commerce’s Dave Pringle said the BEAD broadband program is being reshaped by new NTIA guidance, which removed or reduced emphasis on several prior priorities, and Washington is now working under an expedited process to submit its state application by September 4. He noted that no projects have been built yet, that four counties did not receive applications in round two, and that the state is trying to keep applicants engaged through office hours and a shortened review window. The Office of Equity and the Digital Equity Forum reported increased participation, new members, and ongoing outreach to tribal, rural, and underserved communities, while previewing recommendations such as creating an interdepartmental digital equity team and improving data use. Finally, Lumen’s Robert Thoms described private-sector broadband deployment challenges, including permitting, regulation, and the economics of extending fiber, while noting continued investment in overbuild projects, a $30 low-cost service option tied to the former ACP, and work with the state, tribes, and libraries. No votes were taken; the meeting consisted of presentations and member questions.

Transcript Highlights:

• Look at our system. Where is there opportunity for some system changes and enhancements?
• Look at our system. Where is there opportunity for some system changes and enhancements?
• Look at our system. Where is there opportunity for some system changes and enhancements?
• Look at our system. Where is there opportunity for some system changes and enhancements?
• Look at our system. Where is there opportunity for some system changes and enhancements?

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.

Transcript Highlights:

• The academic standards are regularly reviewed by the state superintendent's Academic Standards Review
• Federal security and peer review standards.
• Did you submit your request through our footprint system? ...records.
• Did you submit your request through our footprint system? No. Okay.
• Okay, so we're on this 20-day journey to see what happens in the court system.

Committee: House Assembly Committee on Government Operations, Accountability, and Transparency

Transcript Highlights:

• want to review it.
• The Review Subcommittee met on Tuesday and reviewed proposed procurement law rule changes from the Office
• The review subcommittee met on Tuesday when reviewed proposed procurement law rule changes from the Office
• That is Arkansas Public Employees Retirement System. It's a request to review investment summaries.
• motion to file as reviewed.

Committee: All ARKANSAS LEGISLATIVE COUNCIL (ALC)

Summary: The meeting began with a quorum call, prayer, and approval of the previous minutes. Members then adopted a resolution honoring Lori McDonald of the Department of Human Services for nearly 28 years of state service, with remarks praising her legislative work, constituent services, leadership, and emergency response roles. McDonald thanked the committee, and the Senate also presented her with a citation, flag, and commemorative coin. The committee received the May 2026 revenue report, which showed gross adjusted collections of $7.76 billion year-to-date, up 4.4% from the prior year, and a projected surplus of $585.8 million. The executive subcommittee report was adopted, covering emergency rules for DHS and the Department of Education, school district waiver requests, committee fund allocations, cancellation of the July ALC meeting, and authorization for subcommittees to meet in July on urgent matters. The administrative rules report was also adopted after members noted that most rules were approved, with a few pulled by agencies or held. Members then heard a lengthy exchange on the Arkansas Education Department’s ClassWallet contract and delays in expense review for education savings account payments. Department officials said they were meeting regularly with ClassWallet, enforcing contract standards, keeping some reviews in-house, and adding staff and technology improvements to speed processing while maintaining oversight. The committee also adopted reports from Game and Fish and State Police, Hospital/Medicaid/Developmental Disabilities, Lottery Oversight, Occupational Licensing Review, Peer Review, Review, State Insurance Programs Oversight, and Personnel, including a Department of Commerce reallocation tied to a broader shared-services realignment. Under review of communications, members filed several retirement system investment items as reviewed, approved rural community grant funding, gave favorable advice for state park additions, approved special maintenance funding for state parks, and filed Office of State Technology service-rate changes as reviewed. The meeting concluded with no new business and adjournment.