Transcript Highlights:

• or rye-infused beverages because they're all intoxicating beverages.
• . beverage. beverage.
• <00:02:44.160> infused infused beverages or rye infused infused beverages or rye infused beverages
• cuz they're all intoxicating beverages cuz they're all intoxicating beverages. beverages. beverages.
• alcoholic beverages. alcoholic beverages.

Keywords: The livestream event for this meeting cut off shortly after the meeting began. This is the complete copy pulled from back ups., 958, all

Transcript Highlights:

• sober but only because of hemp beverages sober but only because of hemp beverages they<00:16:30.959
• <00:16:36.120> it of alcohol I drink a hemp beverage it of alcohol I drink a hemp beverage
• <00:24:21.760> is week to buy their hemp beverages is week to buy their hemp beverages is
• That's our understanding. it on their beverage products as it on their beverage products as well<00:26
• beverage different from another<00:35:17.800> intoxicating<00:35:18.760> beverage<00:35

Keywords: Call to Order 00:00 SB 100 Discussion 00:05 SB 100 Vote 06:42 SB 202 Discussion 08:35 SB 202 Vote 43:17 SB 17 Discussion 47:37 SB 17 Vote 48:08 SB 22 Discussion 49:22 SB 22 Vote 52:55 SB 133 Discussion 53:55 SB 133 Vote 55:15 SB 190 Discussion 56:00 SB 190 Vote 56:38 Adjournment 57:19, 958, all

Summary: The committee first took up Senate Bill 100, which would place cigarettes, vapes, and related nicotine products under the Alcoholic Beverage Control (ABC) system, add enforcement tools against bad actors, and regulate nitrous oxide/laughing gas sales to those under 21. Supporters, including youth advocates Mallerie Jones and Griffin Kian Neth, argued the bill would reduce youth access to nicotine products through retail licensing, compliance checks, and escalating penalties. Higdon said the bill targets illegal sales rather than most retailers, and noted the measure also updates House Bill 11 from the prior year and raises the retail license fee from $250 to $500. The committee adopted the committee substitute and then passed the bill on a roll call vote, with members voting yes and no opposition recorded in the transcript. The committee then considered Senate Bill 202, focused on cannabis-infused beverages. Senator Julie Raque Adams said the bill was intended to create common-sense public health guardrails for a rapidly growing product category sold in gas stations, liquor stores, and vape shops, and to address enforcement gaps. She explained the committee substitute would define cannabis-infused beverages at a 5-milligram limit per 12-ounce can, place enforcement under ABC while keeping CHFS manufacturing and testing rules in place, require a University of Kentucky report back to the General Assembly, allow existing higher-dose inventory to be sold through June 1, exempt festivals and fairs until January 1, 2026, and allow stores to obtain licenses to continue selling the product. The committee adopted the substitute and then heard testimony from hemp-industry representatives and a consumer. Opponents of SB 202/SB 22, including Dee Taylor of the Kentucky Hemp Association, Cornbread Hemp co-founder Jim Higdon, Annie Rouse of Cannabuzz Barn, and consumer Nancy Roberts, argued the bill would hurt a legal Kentucky hemp industry, reduce consumer access, and force sales into liquor stores. They said the 100-milligram beverage referenced in debate is actually 10 servings with a resealable top, that hemp retailers educate customers, and that the industry already operates under 2024 regulations and needs better enforcement rather than new restrictions. Higdon and Rouse objected to the 5-milligram cap, the on-premise sales ban, the move to ABC enforcement, and the taxation approach, warning the bill could wipe out a large share of business and jobs. No final vote on SB 202 was taken in the portion of the transcript provided.

Transcript Highlights:

• The beverage law defines an alcoholic beverage as a distilled spirit and includes all beverages containing
• According to the beverage law, alcoholic beverages and liquors are defined, According to the beverage
• , non-alcoholic beverages.
• They are beverages.
• We call them intoxicating beverages, too. Some people call them alternative beverages.

Summary: The committee met to hear an overview of Florida’s alcoholic beverage regulatory structure and a panel discussion on the state’s three-tier system. Emily Oglesby of DBPR explained the department’s licensing and enforcement roles, described common license types, and outlined the three tiers—manufacturers, distributors, and retailers—along with tied-house restrictions and several statutory exceptions for certified Florida farm wineries, breweries with tap rooms, brew pubs, and craft distilleries. Members asked about licensing fees, the number and classification of distributors and craft producers, and how the exceptions fit within the broader system. Panelists from craft breweries, craft distilleries, wholesalers, and retailers then discussed how the system affects market access, pricing, and product selection. Craft producers argued that Florida’s rules make it difficult for small brands to reach retailers because they must rely on distributors that often prioritize larger, higher-volume products; they said limited self-distribution or other reforms could help small businesses grow without eliminating wholesalers. Wholesalers and retailers defended the three-tier model as a public-safety and anti-monopoly framework, emphasizing investment in warehousing, sales, compliance, and product vetting, while noting that they already carry some craft products and make selections based on demand, quality, and shelf space. Members also explored related issues such as direct-to-consumer sales, the role of excise-tax audits and inspections, and the emerging market for hemp-derived THC beverages and other alternative drinks. DBPR and industry witnesses said alcohol and hemp products are regulated differently, and several speakers urged the Legislature to consider clearer rules for these products. The meeting ended with no bill vote or formal action; the chair thanked the panel and adjourned after Representative Yeager moved to rise, with no objection.

Transcript Highlights:

• Importantly, since this legislation was initially introduced, the Commonwealth Beverage Coalition has
• , the hemp beverage product category now exceeds 25% of total sales at those licensees.
• , the hemp beverage product category now exceeds 25% of total sales at those licensees.
• We did carry the hemp beverages before they were banned.
• We did carry the hemp beverages before they were banned.

Keywords: 995, all

Summary: The Joint Committee on Consumer Protection and Professional Licensure held a public hearing on a wide range of alcohol, liquor licensing, and hemp-derived beverage bills. Early in the hearing, there was a procedural dispute when Senator Jacob Oliveira attempted to testify virtually on S. 279; the House chairs declined to recognize virtual testimony from a committee member, and Senator Pavel Payano instead read prepared remarks supporting the bill to return liquor license authority to municipalities. The committee then heard testimony on H. 437/S. 279 from the Massachusetts Municipal Association and Cohasset Town Manager Christopher Senior, both of whom argued that local control would streamline licensing, better match modern community needs, and support downtown economic development. A Lexington business owner also supported local licensing flexibility for a paint-and-sip business seeking a beer and wine license. The committee also heard extensive testimony on hemp-derived beverage regulation, including H. 357 and S. 222. Supporters from the Commonwealth Beverage Coalition and Theory Wellness said the products are already widely available in unregulated settings, including gas stations and smoke shops, and argued for a regulated framework with age limits, testing, labeling, and local public health funding. The Massachusetts Brewers Guild supported regulation of low-dose hemp beverages but asked that breweries be allowed to participate using their existing retail and distribution rights. The Guild also supported H. 478, which would allow limited self-distribution by pub breweries, saying it would reduce inefficiency and help small breweries grow. Several bills modernizing alcohol licensing laws were also discussed. Representative Ruel supported H. 477, describing it as a cleanup measure that would remove the contiguous-premises requirement, add a character standard for applicants, and extend public notice periods. Representative Sangiolo testified in support of H. 3893, a local liquor-license bill tied to economic development and new businesses in Lexington, including a movie theater, coffee shop, and paint studio. Fable Brewing Company also supported the local license bill, saying the licenses are needed before they can finalize leases and open. The committee then heard opposition from the Massachusetts Package Stores Association and several retailers, who warned that the retail tier is under pressure from oversaturation, declining revenues, and expanded competition, and opposed a long list of bills they said would further weaken existing stores or the three-tier system. At the end of the hearing, Representative McKenna testified in support of H. 437 and S. 279, emphasizing municipal autonomy and the importance of on-premises licenses for restaurants and other economic-development projects. The chairs noted that additional written testimony could still be submitted on bills that did not receive in-person testimony. The hearing concluded with a motion by Representative Sangiolo, seconded by Representative LeBoeuf, to close the hearing, which passed by voice vote.

Transcript Highlights:

• The Coalition for Adult Beverage Alternatives represents the THC beverage category exclusively, and our
• THC beverages currently in the Texas market include the leading supply chain partners, adult beverage
• We, obviously, represent beverage stakeholders who only work in the beverage sector.
• Have you ever tested a beverage? No, sir, we have not tested or seized any beverages.
• I looked, and the beverage...

Bills: HB28, SB3, SB 3

Keywords: hemp regulation, consumable products, cannabinoids, state health, youth protection, licensing fees, criminal offenses, flash flood, flood warning, outdoor warning siren, emergency alert, disaster preparedness, flood mitigation, Hill Country floods, Texas Water Development Board, municipalities, counties, local government mandate, public safety, grant program

Transcript Highlights:

• They are intoxicating beverages.
• I had a question with regard to the THC-infused beverages.
• hemp THC beverages companies in the United States.
• This bill is establishing a direct relationship between hemp beverages and alcoholic beverages by bringing
• Natalie King, representing Pico Beverages, waving in support.

Summary: The Committee on Fiscal Policy considered several bills and reported all of them favorably. SB 70-24, on state planning and budgeting, was presented as a modernization of the long-range planning program to simplify reporting, remove outdated measures, and focus on key data points and outcomes; it passed without opposition. CS/SB 166, on administrative efficiency in public schools, made broad changes to school accountability and operations, including lowering the stakes of certain student assessments, giving districts more flexibility on evaluations, contracts, certification, calendars, facilities, and VPK oversight. Two amendments were adopted: one clarifying that Title I funds may be used for STEM services, and another refining how advanced degrees count on salary schedules. The bill passed favorably after testimony both supporting and opposing the changes, with supporters emphasizing flexibility and opponents raising concerns about teacher evaluation and instructional practice. CS/SB 164, on vessel accountability, was described as a measure to address derelict and at-risk vessels by improving owner identification, creating a free long-term anchoring permit program, increasing penalties, and authorizing grants for local governments in the FWC prevention program. It received support from marine industry groups and was reported favorably. CS/SB 472, on education and correctional facilities for licensed professions, would allow inmates to receive credit toward licensure for qualifying coursework; a strike-all amendment added coordination with DBPR and professional boards. The bill drew support from criminal justice, business, and policy groups and passed unanimously. The committee spent the most time on CS/SB 438, on food and hemp products. Senator Burton and co-sponsor Senator Davis argued the bill was needed to regulate intoxicating hemp products, restrict child-appealing packaging and signage, ban synthetic hemp products, cap THC content in edibles and beverages, and require hemp beverages to be sold through alcohol-style distribution channels. Supporters, including alcohol distributors and some public safety advocates, said the bill would improve testing, labeling, and consumer protection. Opponents, including hemp retailers, farmers, and libertarian advocates, argued it would harm small businesses, reduce consumer choice, and push sales to the black market. After extensive debate, the bill was reported favorably. At the end of the meeting, senators requested to be recorded as voting in the affirmative on tab five, and the committee adjourned.

Transcript Highlights:

• So he now is seeking the all-alcoholic beverage license for his premises.
• I was going to talk about the act relative to the sale of alcoholic beverages, which was the alcohol
• We are here to support H. 345 and an act relative to alcohol beverage containers.
• House 445, an act relative to wholesale suppliers and alcoholic beverages, favorable and redrafted.
• House 328, an act relative to sale of wine and malt beverages in food stores.

Keywords: 995, all

Summary: The Joint Committee on Consumer Protection and Professional Licensure held a hearing on alcohol licensing, sales, and consumption issues affecting bars, restaurants, package stores, and local communities. The chair outlined hybrid hearing procedures, including three-minute testimony limits and instructions for written testimony. The committee heard a local bill for Milford, H. 4169, authorizing an additional off-premises all-alcohol license for Charlie’s Mini Mart, with the understanding that the existing wine and malt license would be surrendered if the new license is granted. A major topic was the long-running debate over happy hour. The Massachusetts Restaurant Association opposed bills such as S. 217, H. 349, and H. 443, arguing that discounted alcohol would intensify competition, create pressure on restaurants to participate, and potentially raise liquor liability and insurance costs. In contrast, Senator Julian Cyr testified in support of repealing the happy hour ban through a local-option framework, saying the bill includes safeguards such as no discounts after 10 p.m., fixed pricing during promotions, and advance posting requirements, and that it could help downtowns and seasonal businesses without creating a public health risk. The Massachusetts Package Stores Association testified on a broad package of bills, opposing measures to reinstate happy hour, allow supplier control over retail shelf space (H. 350), impose a transfer fee on licenses (H. 351), authorize alcohol coupons or discounts (H. 381 and S. 219), and permit Thanksgiving alcohol sales (H. 428). It supported bills requiring beverage alcohol training for off-premise licensees (H. 344), restricting self-checkout for alcohol (H. 366), changing Section 15 grocery-store license rules (S. 213), and several other regulatory changes. The Distilled Spirits Council supported H. 350 on private label spirits, while acknowledging concerns about disclosure and preferential treatment; package store witnesses defended private labels as lawful products they create with manufacturers, and the council argued the bill should address consumer confusion and unfair competitive advantages. The hearing concluded with Chair Chan announcing committee poll results on other bills, including a number of favorable reports and study orders, and the committee then voted to close the hearing.

Transcript Highlights:

• These are only specific to beverages.
• intoxicating hemp derived beverage intoxicating hemp derived beverage products<00:01:38.920>
• <00:02:47.040> containing consumer effects of beverages containing consumer effects of beverages
• Next, Senator Berg had a question. beverages so it's a different area in beverages so it's a different
• Our beverages are very simple.

Keywords: 958, all

Summary: The committee met with a quorum and took up Senate Bill 202, adopting a committee substitute before hearing testimony. Senator Julie Rocky Adams explained that the substitute would require the Cabinet for Health and Family Services to promulgate regulations by January 1, 2026 for intoxicating hemp-derived beverages, direct the University of Kentucky to study manufacturing, testing, distribution, sales, and consumer effects of those beverages, and impose a moratorium on their sale until July 1, 2026. Supporters, including Rep. Matt Cook, said the measure was intended as a consumer-protection step rather than a ban, citing concerns about youth access, inconsistent labeling, and the need for a clearer regulatory framework. Members asked about the legal status of the products, whether the bill could unintentionally sweep in non-intoxicating hemp beverages, and whether there was evidence of harm. Senators were told the products are legal under the federal farm bill loophole, but that testing has shown THC levels on sampled cans did not match labels and that current regulations do not specifically address intoxicating hemp-derived beverages. Senator Higdon said CHFS had already been authorized to regulate hemp products and was moving forward with regulations and enforcement, while Senator Meredith questioned whether a moratorium would unfairly punish businesses that had already invested in the market and suggested setting a THC standard instead. Public testimony then shifted to industry opposition. Jim Higdon of Cornbread Hemp said his company had invested heavily in a beverage line and argued the moratorium would function like a ban and harm small businesses. Dee Taylor of 502 Hemp and the Kentucky Hemp Association also opposed the moratorium, saying existing rules already require age limits, behind-the-counter sales, and licensed retailers, and arguing that a cap on milligrams would be preferable to a shutdown. He said retailers were seeing approved and unapproved products in the market and urged work with the Cabinet and ABC rather than a moratorium.

Transcript Highlights:

• Premier um selections of THC beverages Premier um selections of THC beverages in<00:21:24.960>
• It's the fastest-growing area of beverage selling in the adult beverage industry.
• growing um area of of uh beverage growing um area of of uh beverage selling<00:27:05.919> in<
• selling in the in the adult beverage selling in the in the adult beverage industry<00:27:08.679>
• evolving with the national hemp beverage evolving with the national hemp beverage regulatory<01:

Bills: HF1672, HF1877, HF1735, HF1734, HF1271, HF1634, HF1615

Keywords: medical cannabis, medical marijuana, cannabis, cannabinoids, hemp, marijuana registry, patient registry, visiting patient, Tribal cannabis, Tribal medical cannabis program, Tribal sovereignty, Office of Cannabis Management, designated caregiver, home cultivation, adult-use cannabis, cannabis flower, cannabis products, dispensary, cannabis retail endorsement, patient protections

Transcript Highlights:

• They are intoxicated beverage. They should be treated in the bill.
• And and I'm here exclusively on behalf of the THC infused beverages.
• Sherry, Representative Bell to beverages.
• I'm the founder and CEO of Delta Beverages, one of the first and fastest growing and THC beverages companies
• This bill is establishing a direct relationship between him beverages and alcoholic beverages by bringing

Keywords: 999, senate, all

Transcript Highlights:

• Assembly Bill 404 is really meant to help support our craft beverage industry.
• Assembly Bill 404 is really meant to help support our craft beverage industry.
• We want to make sure it's clear that these locations can also bring in... ...beverages as well.
• We want to make sure it's clear that these locations can also bring in. beverages as well.
• Brett Scallery Strategies 360 here on behalf of Breakthrough Beverage, a wholesaler operating in the

Keywords: 909, all

Transcript Highlights:

• hemp beverage conference, as well as a hemp beverage festival at the guild.
• As brewers, we craft beverages. But what we produce is community.
• Hemp beverages and gummies are a meaningful part of that partnership today.
• Hemp beverages and gummies are to shop.
• The beverage folks here know very well that all of our beverages start as a plant.

Keywords: 1187, senate, all

Transcript Highlights:

• <00:53:25.119> can framework for where these beverages can framework for where these beverages
• <00:53:47.599> in verification to serve these beverages in verification to serve these beverages
• restores the ability of these beverages restores the ability of these beverages to<00:53:53.599>
• beverages have become popular weddings. beverages have become popular weddings.
• <00:54:27.280> sponsored manufacture these beverages sponsored manufacture these beverages

Keywords: 958, all

Transcript Highlights:

• , authorizing the town of Westford to grant one additional license for the sale of all alcoholic beverages
• to be drunk off the premises to an annual license for the sale of all alcoholic beverages to be drunk
• to be drunk off the premises to an annual license for the sale of all alcoholic beverages to be drunk
• to be drunk off premises to an annual license for the sale of all alcoholic beverages to be drunk off
• to be drunk off premises to an annual license for the sale of all alcoholic beverages to be drunk off

Keywords: 995, all

Summary: The House opened with the Pledge of Allegiance and then adopted several resolutions, including commendations for Praxia Awareness Day and congratulations to an Eagle Scout. It also suspended Joint Rule 12 to allow a Barnstable petition concerning regulation of vessel transportation in Marston Mills and Osterville to go to the Committee on Transportation. The House then took up a Steering, Policy and Scheduling report and advanced three bills: a Westford local option liquor license bill, a Westfield liquor license conversion bill, and a sick leave bank bill for Carla Johnson of the Department of Unemployment Assistance. All were ordered to a third reading. The House later considered and passed several measures, including a sick leave bank for Courtney Cochran of the Department of Children and Families, a Senate bill allowing Taunton to establish a separate water billing rate for manufactured housing, and a Hope Dale bill creating the office of town administrator. It also engrossed a Chelmsford bridge naming bill and a Sudbury senior property tax exemption bill. On Senate 2544, concerning the number of registered voters needed to petition for a special town meeting in Andover, the House adopted an amendment adding an immediate effective date before passing it to be engrossed as amended. The chamber observed a moment of silence in memory of Phyllis Simon of South Boston, described as a longtime educator and public servant. At the end of the session, the House adopted an order to adjourn and then adjourned to meet the following Monday at 11 a.m. in informal session.

Transcript Highlights:

• bill was for small beverage bill was for small beverage manufacturers<00:30:05.679> to<00
• from other instate beverage from other instate beverage manufacturers<00:30:15.600> and<00
• Likewise, for the beverage manufacturer, if you go down to line 20 or 21, the beverage manufacturer is
• > manufacturing 17812, the beverage manufacturing 17812, the beverage manufacturing statute<00
• beverage manufacturing facilities. beverage manufacturing facilities.

Keywords: 1189, house, all

Transcript Highlights:

• program for beverage containers. program for beverage containers.
• <00:53:55.800> containers material type of the beverage containers material type of the beverage
• the location and amount of beverage the location and amount of beverage container<00:54:01.000><
• and into what products the beverage and into what products the beverage [clears throat]<00:54:04.280
• Uh that beverage container deposits.

Keywords: 927, senate, all

Transcript Highlights:

• celebrate 145 years in beverage celebrate 145 years in beverage business.<01:33:36.239> We
• director of the Kentucky Beverage director of the Kentucky Beverage Association,<01:34:34.960>
• beverages.
• beverages?
• sugar beverages? sugar beverages?

Keywords: 958, all

Summary: The meeting opened with roll call and housekeeping, including moving standing attendees to an overflow room and asking the audience to avoid interruptions. The task force then heard testimony from Allison Adams of the Foundation for a Healthy Kentucky, who presented statewide health trend data showing Kentucky ranked 41st overall and 44th in health outcomes, with especially poor performance on premature death, chronic disease, diabetes, and vaccination rates. She emphasized that Kentucky has the highest rates of residents with multiple chronic conditions, that diabetes remains above the national average, and that childhood immunization rates have worsened. She also highlighted major provider shortages in rural areas, noting that 43 of 120 counties meet shortage criteria and that more than half of primary care providers are concentrated in Fayette and Jefferson counties. Adams urged the task force to focus on prevention, early intervention, access to care, physical activity, and healthier school and community environments, and said the foundation is prepared to share results from its demonstration projects. Task force members asked follow-up questions about the age range for chronic-condition data and whether the diabetes figure reflected type 1 or type 2 diabetes; Adams said the chronic-condition measure spans all ages and that the diabetes figure likely reflects type 2, though she offered to provide the full report. The task force then approved the minutes from the prior meeting. The committee next turned to SNAP benefits and heard from Lisa Dennis, commissioner of the Department for Community Based Services, and Roger McCann, director of the Division of Family Support. They explained that SNAP is not only a food assistance program but also a public health and family stability tool, arguing that poor diet contributes to chronic disease and that food insecurity is linked to family stress, child welfare involvement, and neglect-related CPS referrals. They cited research showing that more generous SNAP policies are associated with fewer CPS reports, fewer substantiated reports, and fewer foster care placements, and said SNAP helps reduce risk and promote stability across vulnerable populations including children, older adults, people with disabilities, and pregnant women. They also described SNAP-Ed as the nutrition education component that teaches healthy eating, cooking on a budget, and how to use fresh produce, but warned that recent federal legislation eliminates federal funding for SNAP-Ed beginning in federal fiscal year 2026. McCann outlined the remaining SNAP outreach and employment-and-training components, noting that outreach is typically run by nonprofits with a 50% match and that employment and training funds job-skills programs to help recipients move toward better jobs and self-sufficiency. The discussion emphasized that access to nutritious food, education, and job supports are all part of improving health outcomes and reducing food insecurity.

Transcript Highlights:

• of the of the um alcoholic beverage of the of the um alcoholic beverage products<00:14:12.480>
• They can even make some off-sales of alcoholic beverages as well.
• as offs sales of alcoholic beverages as offs sales of alcoholic beverages as well<00:18:49.039
• <00:31:36.480> excise 2023 on the alcoholic beverage excise 2023 on the alcoholic beverage
• I'm in my 40s and it's... that is not an alcoholic beverage and that is not an alcoholic beverage and

Keywords: 1183, house

Transcript Highlights:

• . beverage. beverage.
• <00:15:12.800> control cooperative alcohol beverage control cooperative alcohol beverage control
• <00:29:07.200> control association of beverage control association of beverage control administrators
• beverage, and the amount of liquor contained in the alcoholic beverage.
• Um contained in the alcoholic beverage.

Keywords: 1191, senate, all

Transcript Highlights:

• and your beverage container.
• and your beverage cost of your beverage and your beverage container.<00:10:48.079> So<00:10:48.240
• on uh beverage distributors. on uh beverage distributors.
• It’s how many beverages out and then how many beverages in if you receive.
• uh, into the deposit beverage program. uh, into the deposit beverage program.

Keywords: 912, senate, all

Summary: The informational briefing focused on the Office of the Auditor’s recent audit of Hawaii’s deposit beverage container program and the Department of Health’s response. State Auditor Les Condo reviewed the program’s structure, noting it was created to increase recycling and reduce litter, but said prior audits have repeatedly found weak internal controls, reliance on self-reported data, and an “honor system” approach. He cited examples of underreporting and overpayment risks, including a Whole Foods settlement and secret-shopper testing at a redemption center where the program reimbursed more than what was actually paid to consumers. Condo said the special fund continues to grow, increasing by more than $12 million between FY24 and FY25, and that the 2024 audit found no meaningful progress in implementing earlier recommendations. He also noted that many prior recommendations were later codified in law, including risk-based audits and internal control requirements, and said the office will audit the program again in about a year. Senator Fevella said the briefing was needed because he has seen little progress over the years and emphasized the program’s goals of reducing litter and promoting recycling. He noted that Hawaii has lost a glass recycler, underscoring broader challenges in the system. Department of Health Deputy Director Kathleen Hoe said the department is committed to addressing longstanding problems and said the director’s office meets with the program twice a month. Program staff outlined steps being taken to respond to the audit, including revising accounting and inspection/enforcement manuals, retaining third-party services, and implementing risk-based audits of distributors and redemption centers. They said internal control process documents from distributors were due June 30, with about 200 received and roughly 100 still outstanding, and that enforcement letters are being sent. The department also described plans for electronic reporting to reduce manual entry and improve accuracy, as well as a broader legislative proposal for a tiered audit system. Under that proposal, larger distributors would remain subject to the current every-other-year audit requirement, middle-tier distributors would be audited every five years, and smaller distributors would be exempt. Officials said the governor had temporarily waived enforcement of the 2025 independent audit requirement because of cost concerns for smaller distributors, while the department reviews submitted audits and considers a longer-term fix. No votes or formal committee actions were taken during the informational briefing.