Transcript Highlights:

• First of all, the LNG contracts that people are kicking around are a bit more attractive than what they
• First of all, the LNG contracts that people are kicking around are a bit more attractive than what they
• First of all, the LNG contracts that people are kicking around are a bit more attractive than what they
• First of all, the LNG contracts that people are kicking around are a bit more attractive than what they
• First of all, the LNG contracts that people are kicking around are a bit more attractive than what they

Bills: SCR48 , SCR28 , SCR74 , SCR62 , SCR60 , SCR89 , SCR147 , SCR179 , SCR182 , SCR59 , SCR54 , SCR180

Keywords: affordable housing, housing credits, perpetual credits, development, Hawaii Housing Finance, Vietnam veterans, commemorative medal, recognition, working group, Hawaii, no-bid contracts, emergency procurement, audit, state agencies, public funds, accountability, emergency response, disability access, 911 systems, life-saving measures

Transcript Highlights:

• They find loopholes not to honor our contract.
• This network was activated first in 2017 during the first Trump administration in response to threats
• It does not prohibit contracting.
• It's about a first, real chance: a first chance to have their hard work recognized, a first chance to
• Short-term positions in the first place?

Summary: The committee heard a series of bills focused largely on labor, education, workforce, and public employment issues. AB 65 would provide public school employees up to 14 weeks of leave with full benefits for pregnancy and pregnancy-related health issues; supporters said current rules force educators to exhaust sick leave and suffer long-term retirement penalties, while the bill’s author noted it mirrors budget trailer language. AB 1818 would change HEERA procedures for CSU bargaining by shifting certain renegotiation disputes to PERB; Teamsters and other labor groups supported it as a way to stop CSU from unilaterally refusing agreed raises, while CSU moved from opposed to neutral after amendments. AB 1940 would explicitly reference menopause, perimenopause, and postmenopause in workplace protections; supporters said it would clarify rights and improve awareness, while business opposition argued existing reasonable-accommodation law already covers these issues and warned of expanded liability. AB 1534 would add guardrails for new short-term Workforce Pell programs, including tuition caps, limits on income-share agreements, and transparency around partnerships with unaccredited entities; the author later said the bill would be amended to include private institutions. AB 1896 would bar people who participated in immigration enforcement from holding California public jobs during a specified period; supporters framed it as a public-trust measure, while police and public-safety groups opposed categorical exclusion and urged a more individualized vetting approach. AB 2300 would streamline distribution of WIOA workforce funds and reduce delays in local workforce board contracting, with supporters emphasizing faster service delivery and no reduction in accountability. AB 2223 would require CDCR to report standardized data on contracted medical and mental health staffing, vacancies, and costs, following an audit that found heavy reliance on contractors and poor transparency. AB 2483 would create a pathway and certification for formerly incarcerated firefighters to move into firefighting careers after release, with strong support from the author and witnesses who described the work as a real career path and reentry opportunity. AB 2142 would require temporary classified school employees working more than 75% of the school year to receive permanent-employee benefits and protections; school administrators and community college groups opposed it as too rigid for grant-funded and fluctuating positions. AB 2367 would require quarterly reporting from state-run health care facilities on vacancies, overtime, registry/contract staffing, and missed staffing minimums, building on state auditor recommendations; health care workers supported it as a transparency and accountability measure. Several measures were voted out of committee or placed on call. AB 1818, AB 1534, AB 2300, AB 2483, and AB 2223 all received do-pass votes to the Senate Appropriations Committee, though each was placed on call after roll call. AB 65 and AB 1940 also advanced on do-pass motions but were placed on call. AB 2142 received a do-pass vote with opposition and was placed on call. S.J.R. 15, a resolution urging Congress to protect California employers from higher federal unemployment taxes tied to the state’s UI debt, drew divided testimony: business groups supported it, while labor and some members argued California should solve the problem itself and keep the unemployment system solvent; the resolution was also placed on call. The transcript also included committee discussion about working with authors on amendments, especially for AB 1940 and AB 1534, and several members noted support or co-authorship while raising concerns about implementation details and fiscal impacts.

Transcript Highlights:

• The first we will begin at this time.
• Uh, with regards to contracts, no-bid contracts at the end, there would be an extra set of eyes in the
• Uh, with regards to contracts, no-bid contracts at the end, there would be an extra set of eyes in the
• </c><00:31:37.600><c> So,</c> relating to state contracts. So, relating to state contracts.
• This is a contracts bill. What makes a good contract?"

Committee: House State Government

Transcript Highlights:

• </c> all of the um amendments and contracts all of the um amendments and contracts for<00:01:29.040><
• So, the first item up is the level it.
• </c> study and the amount of that contract study and the amount of that contract which<00:07:04.960><
• Uh the first one it would be a time.
• . contracts. contracts.

Committee: Joint Select Water Committee

Transcript Highlights:

• I first want to say that we need ammonia for nitrogen fertilizer.
• Any contract that's currently out there will be fulfilled to its fullest extent.
• So my question goes to those contracts that are referred to as evergreen contracts, ironically in this
• in the contract to extend it, you know, beyond a certain term?
• Mitigating contracts, because there's not really a contract; it just says we have the ability to potentially

Bills: HF2103 , HF2793

Committee: House Energy Finance and Policy

Transcript Highlights:

• And we did the first two years.
• , the cost of the contract, the contract status, whether it's on time or overtime, whether it's on budget
• We ask for a list of contracts for consulting services and any action taken as a result of those contracts
• , the cost of the contract, the contract status, whether it's on time or overtime, whether it's on budget
• Would these contracts include contracts between the state and pharmacy benefits managers?

Bills: HB3329 , HR1039 , HR1040 , HB3413 , HB3414 , HB3415 , HB3416 , HB3417 , HB3418 , HB3419 , HB3420 , HB3706 , HB3711 , HB4139 , HB1268 , HB3660 , HJR1023 , HB3298 , HB3056 , HJR1084 , HB3934 , HB3919 , HB4118 , HB4119 , HB3791 , HB4260 , HB4178 , HB4215 , HB4324 , HB3270 , HB4352 , HB4305 , HB2955 , HB3315 , HB3066 , HB1245 , HB4125 , HB3075 , HB3129 , HB3239 , HB4153 , HB3265 , HB4491 , SB680 , HB4263 , HB4268 , HB1675 , HB3885 , HB2984 , HB3697 , HB2959 , HB3671 , HB3852 , HB2933 , HB3057 , HB3802 , HB4294 , HB4285 , HB3708 , HB3979 , HB3977 , HB3986 , HB3985 , HB3588 , HB3742 , HB3845 , HJR1070 , HB3590 , HB3595 , HB3391 , HB3183 , HB3764 , HB3765 , HB1002 , HB4434 , HJR1086 , HB4060 , HB3881 , HB3500 , HB4408 , HB3648 , HB3127 , HB3606

Summary: The House met in session, opened with prayer and the Pledge of Allegiance, and then held an extended OU Day presentation recognizing the University of Oklahoma women’s gymnastics team for its 2025 national championship and honoring athletic director Joseph Castiglione. OU President Joseph Harris and Castiglione both spoke about the university’s growth, affordability efforts, health care expansion, and research progress, and the championship team was introduced and thanked the Legislature for its support. The chamber also received several gallery introductions, including visitors from Stigler, North Rock Creek, and Charles Page High School, along with the Doctor and Nurse of the Day. The floor then took up a package of public finance and procurement bills sponsored by Representative Strom. House Bills 3413 through 3420 focused on transparency, contract reporting, subcontractor disclosure, post-contract assessments, central purchasing rules, restrictions on bid information sharing, and limits on pilot programs and CIO contract justifications. Each bill was advanced and passed, with vote totals ranging from 87-95 in favor and only a few nays on some measures. Strom described the package as a response to audit findings and concerns about fraud, waste, and abuse in state and local spending. The House also passed several other measures. House Bill 3706, as amended, requires more elementary school math instruction time and drew questions about balance with reading and other subjects; it passed 74-19, and its emergency was approved. House Bill 3711 requires school districts to post instructional spending percentages and include them in bond materials, passing 79-16 with the emergency clause approved. House Bill 4139 created the Oklahoma Home Service Transparency Act and passed 89-5. House Bill 1268 created a deferred option retirement plan for certain emergency responders and law enforcement personnel and passed 92-1 after a title strike request. House Bill 3660, concerning natural organic reduction/cremation, passed 59-37 after debate over licensing and public health concerns. House Joint Resolution 1023 updating the workers’ compensation fee schedule passed unanimously, and House Bill 3298 standardizing judicial interviews of children in family proceedings passed 95-0. House Bill 3056, allowing sales of unpasteurized milk at farms, feed stores, and farmers markets, prompted extensive debate over safety, labeling, liability, and market access, but ultimately passed 43-11. The House then recessed until 1 p.m.

Transcript Highlights:

• With our first issue, we'll start with Ms.
• First of all, thank you for your support.
• Yes, during the term of that contract.
• In a contract is what happens in that case.
• Our first lawsuit was on birthright citizenship. and that that Our first lawsuit was on birthright citizenship

Transcript Highlights:

• We have the contract, and we monitor the contract performance. >> Yeah.
• We have the contract, and we monitor the contract performance. >> Yeah.
• on the contract?
• Negotiated contracts. Yeah. Negotiated contracts.
• </c><02:28:39.840><c> you</c><02:28:40.240><c> contract</c> these types of contracts you contract these

Transcript Highlights:

• Committee, we've got a couple of contracts to review.
• So the first one that we have, which is Exhibit C, is a contract for advertising and marketing.
• What is the current contract ends on June 30th this month, so this will be a new contract.
• what is what is so the current contract ends on June 30th this month so this will be a new contract
• contracts will take effect in August.

Committee: All ALC-LOTTERY OVERSIGHT SUBCOMMITTEE

Transcript Highlights:

• But again, first things first, we've got to get a hold on what we're spending right now.
• You want to use contracts.
• Being contract canceled.
• We're contracting that already, so we already know what those contract numbers are.
• As they enter into those contracts, there's different requirements for each contract.

Summary: The subcommittee heard budget presentations and questions from several health and human services agencies, with members repeatedly emphasizing that agency numbers had been posted since October and that questioning should stay focused and brief. The Office of Juvenile Affairs said its $5.45 million request would support 162 employees receiving a pay adjustment, and members asked about juvenile care conditions and staffing. The Department of Human Services discussed major changes to child care subsidy funding, including a reduced subsidy request, a $11.5 million child care teacher recruitment/retention request, and planned eligibility and reimbursement changes; it also reviewed SNAP administrative cost shifts under federal law, the state’s SNAP error rate, and the risk of large future state costs if the error rate is not reduced. DHS also addressed TANF reserves, the DDS waiver wait list, the Greer Center buildout, the Advantage waiver supplemental, and meal service options for waiver members. OCCY described a largely personnel-driven budget, requests for more oversight staff, and workload pressures in juvenile competency evaluations. The Office of Disability Concerns reported a flat budget and said it relies mainly on mediation and informal resolution rather than enforcement. OSU Medical Authority said its Tulsa expansion, VA skybridge, and c-section suites remain on schedule, that psychiatric residency funding is being phased in over several years, and that it is working to reduce contract labor and evaluate service lines. J.D. McCarty Center reported its new ABA outpatient clinic is on time and on budget and is nearing full capacity. OMMA said its lab is following required standards, its FTE count is below budgeted levels because hiring depends on lab accreditation and other unknowns, and dispensary numbers continue to decline as the market matures. Oklahoma Rehabilitation Services said it needs about $1.4 million to avoid a maintenance-of-effort penalty and discussed aging campus capital needs and staffing vacancies. The Oklahoma Health Care Authority then outlined a very large budget requirement driven by utilization growth and the shift to value-based care, saying FY26 is currently stable but FY27 would likely require additional appropriations if the request is not fully funded.

Transcript Highlights:

• So the Department of Finance contracted with the Boston Consulting. group for a three-month contract
• group for the initial contract and then there would be a separate contract to follow afterward okay
• And that contract was about $3 million.
• For the contracts?
• First of all, I wanna thank you, Mr.

Transcript Highlights:

• contracts.
• We have 215 active contracts.
• You show contract revenue from each of the contracts that you have. That's correct.
• We do know the contract amount for every contract, and then if you dive into the contract amount, we
• I have the contract amount for every contract.

Committee: Joint Transportation Interim Committee

Transcript Highlights:

• House Bill 2310 specifies that the contract and association created by the contract governing services
• The bill applies the contract requirements to any contract or addendum entered into after the effective
• House Bill 2310 specifies that the contract and association created by the contract governing services
• The bill applies the contract requirements to any contract or addendum entered into after the effective
• This gives the contractor the explicit right to contract to eliminate the contract on their terms solely

Summary: The committee heard House Bill 2010, which would prohibit sellers of digital goods from using terms like “buy” or “purchase” in a way that implies unrestricted ownership when the transaction is actually a license. The bill also requires clear disclosures, post-sale notice if license terms change, prorated refunds or alternative access in certain cases, and treats violations as unlawful practices under the Arizona Consumer Fraud Act. The sponsor said the measure was prompted by the common misunderstanding that digital media is owned outright, when it can be altered or removed by licensors. The committee voted 7-0 to give HB 2010 a do pass recommendation. Members also considered House Bill 2192, dealing with compensation and protections for minors featured in monetized online content. The bill requires earnings attributable to minors to be placed in trust, allows minors age 13 and older to create and publish their own content and keep compensation for it, and gives individuals who were featured as minors a process to request deletion or editing of content once they turn 18. An amendment clarified that platforms may rely on existing trust-and-safety systems, are not liable for third-party content if they meet mitigation requirements, and are not required to proactively monitor user-generated content. Google testified in support, describing the bill as a modern version of child-actor protections. HB 2192 was adopted as amended and passed 7-0. The committee then approved House Bill 2310, a technical clarification to Arizona’s qualified marketplace contractor law for gig-economy platforms. The bill specifies that contracts may be terminated without cause on reasonable notice and clarifies that the contractor may terminate the agreement unilaterally, with Lyft testifying that the change removes ambiguity and reduces litigation. Members briefly questioned the wording and whether it favored large platforms, but the bill passed 7-0. Finally, House Bill 2501, brought by the Department of Insurance and Financial Institutions, was heard and passed 7-0; it updates the definition of appraisal management company to conform Arizona law to federal statute.

Transcript Highlights:

• Is, I think I heard you in your first, in the first question that, thank you, Mr. Chair, sorry.
• My first question goes back to the expansion of the CSU beds.
• And so those contracts really didn't even cover their costs.
• First is, you know, last year I actually had a bill.
• We draft contracts. We create programs.

Summary: The Health Care Budget Subcommittee held a panel discussion on Florida’s mental health and substance abuse system, with representatives from DCF, AHCA, two managing entities, and two providers describing how the state’s behavioral health network is funded and operated. Members focused on the implementation of prior legislative investments, especially the $50 million in recurring funding from Representative Maney’s bill and the earlier $126 million community behavioral health appropriation. Witnesses said the newer funds were used mainly for crisis beds, discharge planning, outpatient services, regional collaboratives, and a USF Marchman Act report, while the larger behavioral health appropriation supported CAT, FACT, FIT, forensic teams, residential and outpatient services, and crisis care, with most dollars going directly to services and only a small share to administration. A major theme was access to crisis care and the role of mobile response teams, 988, and central receiving facilities in diverting people from Baker Act admissions and reducing readmissions. DCF and providers said mobile response teams have expanded, are being used to de-escalate crises and connect people to care, and have shown strong diversion results and reductions in Baker Acts in some regions. Members also asked about waitlists, children in crisis, and how to handle people without housing or support; providers said discharge planning is individualized but often constrained by homelessness, transportation, and a lack of safe placements, and several witnesses identified housing as one of the biggest barriers to recovery and stability. The committee also examined provider sustainability, reimbursement, and funding gaps. Witnesses described delays caused by contract timing, cost allocation rules, and Medicaid reimbursement rates that do not always keep pace with labor and operating costs, especially for smaller providers and rural networks. DCF and AHCA said managing entities can provide advances, retroactive rate adjustments, and technical assistance, and that Medicaid managed care plans have network standards and complaint/dispute processes. Members raised concerns about a reported $7 million loss in federal non-sustainable funds, provider closures, and whether there is a formal ombudsman process for disputes; DCF said the federal reductions were known and tied to one-time funds, and that the department generally handles provider issues informally while working with managing entities to preserve continuity of care.

Transcript Highlights:

• first or the medical facility?
• I think I'd rather talk about the contract first. Yes, ma'am.
• establish contract.
• </c> implementation of a potential contract implementation of a potential contract and<00:16:04.600><
• so under the new contract model.

Summary: The committee heard an overview from Department of Juvenile Justice Commissioner Randy White on the state’s juvenile detention network and several facility projects. He identified the currently operating detention centers as Boyd County for females, Breathitt County for low-risk males, Fayette County for high-risk males, Adair County for high-risk youth from Jefferson and surrounding counties, Warren County for high-risk males, and McCracken County for low-risk males. Members asked about capacity and staffing; White said Boyd County houses 33 and is usually near full, Breathitt County is about half full, Fayette County runs about 80-90% full, Campbell County’s operational limit is about 25 due to staffing, Adair County can hold 60 and has hit capacity several times this year, Warren County holds 43 and usually runs near capacity, and McCracken County holds 43 and is not currently full. He said staffing is generally harder in higher-risk facilities and in metropolitan areas because of wages and housing costs. White then updated the committee on the Louisville Detention Center downtown renovation and the Lyon facility project. For the Louisville downtown facility, he said schematic design and design development are complete, construction documents are expected by late February or early March, bids are anticipated in April, and completion is projected for March 2027. He explained the delay is due to extensive renovation work needed to bring the building up to current building, life-safety, ACA, and PREA standards, including security, mechanical, electrical, plumbing, food service, and roof work. The project is designed for 64 beds for high-risk Jefferson County boys, with the facility currently vacant and those youth being housed in Adair County and Campbell County. For the Lyon project, he said the contract was issued November 21, 2024, demolition is underway, completion is expected June 14, 2026, and the facility will have 34 beds in four pods for low-risk offenders; he said the project appears to be on time and on budget within the $4.5 million authorization. The committee also discussed the medical services contract. DJJ officials said they are reviewing whether to continue with the current state contract provider, Wellpath, or pursue an RFP, while retaining current merit staff and continuing oversight through four nurse program administrators. They said DJJ uses a state master agreement to staff nurses, APRNs, and the chief medical officer, and that the current contract is about $20 million per year. Members asked about Wellpath’s bankruptcy filing; officials said they were aware of it, asked questions, and were told it would not affect Kentucky service delivery or contracting, though they could not recall the bankruptcy type and offered to provide more detail later. They also said DJJ is working with the Cabinet for Health and Family Services to become a Medicaid provider, and any future contractual partner will need to be a Medicaid provider. Finally, White described the proposed high-acuity juvenile mental health treatment facility. He said DJJ must accept court-ordered youth even when they have severe mental illness, but detention centers are not equipped to treat those youth and private psychiatric hospitals often refuse them or discharge them early. He argued that a dedicated secure treatment facility is needed for a small number of highly violent, high-need youth who require intensive psychiatric care and are disruptive in detention. The facility would provide behavioral and psychiatric treatment, reduce delays caused by lack of beds or outside placements, and serve youth determined by clinical assessment to need a secure treatment environment. No votes were taken during the discussion.

Transcript Highlights:

• No-bid contract authority back to the Fire Innovation Unit.
• , ...that completes a pilot, a follow-on contract without a separate competitive solicitation process
• contract has to be done competitively.
• So we have a first... policy committee and needed to come through policy committee.
• So we have a first. So we have a first, I believe, from Assembly Member Calderon, was our second.

Committee: House Emergency Management

Summary: The Assembly Emergency Management Committee heard SB 1079 by Senator Stern, which would establish Cal Fire’s Fire Innovation Unit in statute and allow field testing of new technologies for wildfire and emergency response. The senator and sponsor explained that the goal was to pilot innovative tools before major procurements, and that the bill had been amended back toward its earlier version after concerns about floor changes. Committee members and the sponsor also discussed whether the bill should include Cal OES in addition to Cal Fire, with the senator saying the broader version was intended to support a multi-hazard approach, including evacuation, notifications, and other emergency technologies. A major issue was contracting authority. The chair and committee expressed concern that some language could create no-bid or sole-source contracting authority and had not been fully vetted through the normal policy process. The sponsor acknowledged that if the bill were stripped back to the earlier version, Cal Fire could retain no-bid authority, and offered additional language to require competitive contracting for initial awards while allowing later amendments or follow-on work under limited conditions. The committee also noted procedural concerns about the addition of a new unit and contracting provisions without review by other policy committees. Testimony was in support from the California Fire Chiefs Association, the Fire Districts Association of California, and other supporters. Committee members raised related policy points, including the need to address toxic fires and better federal coordination. The committee then voted due pass as amended and re-refer to the Assembly Floor; the roll was unanimous in favor, and the bill passed out of committee.

Transcript Highlights:

• So first things first. A fault, right, is a So first things first.
• A couple comments first.
• staff realignment, contract adjustments, and contract cancellations.
• We were able to appreciate about $10.5 million in savings in the first year by restructuring those contracts
• contract.

Summary: The committee first heard an update on the Northwest Louisiana earthquake cluster. Laura Sori of the Department of Conservation and Energy said the agency has inspected Class II injection wells within 12 miles of the earthquakes, found no permit violations, and is requiring monthly reporting of daily injection data. LSU and Tulane researchers explained that the swarm includes about 50 earthquakes detected by USGS since December 2025, including a 4.9 magnitude event on March 5, and that better monitoring is needed because Louisiana has very limited seismic station coverage. Dr. Cynthia Ebinger said her temporary array has detected more small quakes than USGS, that the pattern looks more like a swarm than normal aftershocks, and that the data suggest pressure changes in the subsurface, though no definitive cause was identified. Keith Hall of LSU described how other states responded to suspected induced seismicity with more monitoring, more frequent reporting, injection limits or moratoria, and “traffic light” systems that escalate regulatory responses as seismicity increases. Members asked about depths, fault locations, possible links to injection or fracking, and whether more monitoring and data-sharing should be pursued; several speakers said Louisiana likely needs a denser monitoring network and more structured data collection. A Texas geoscientist, William Berger, also testified that Texas uses large-scale data analysis and AI to study injection-related seismicity and argued for secure sharing of operator data to improve forecasting and risk management. The committee then took testimony on UAV and drone incursions over Barksdale Air Force Base. GOSEP said the incident was logged in WebEOC and the common operating picture, but that Barksdale did not request direct GOSEP resources and that the matter was handled through law enforcement channels. Louisiana State Police and the FBI said they were limited in what they could disclose, but confirmed multiple drone sightings on the morning and evening of March 9 and continued monitoring for several days. State Police said they have created a task force with the Police Chiefs Association, Sheriffs Association, GOSEP, and LSP, and that officers are receiving FBI-related training to help detect and, where authorized, mitigate drones. Members discussed whether the activity was nefarious, what counts as an incursion, and the need for better public education about drone restrictions near military and critical infrastructure sites. No formal action was taken, but members said the issue will continue to be tracked alongside pending legislation. Finally, the committee received a one-year update on the merger of GOSEP with the Louisiana National Guard and Military Department. Major General Thomas Freelieu and Brigadier General Jason Maffus said the merger has reduced GOSEP from seven divisions to three, shifted administrative functions to the Military Department, and produced about $10.5 million in first-year cost avoidance. They said the agency has modernized its common operating picture, returned staff to in-person work, and continued statewide preparedness exercises. Freelieu highlighted Guard missions including cyber expansion, the new Air National Guard cyber squadron at Jackson Barracks, modernization of the 159th Fighter Wing, and ongoing support for homeland security missions in New Orleans and Washington, D.C. Maffus said GOSEP’s core mission remains emergency preparedness, response, and recovery, and that the merger is intended to make state support to parishes faster and more efficient.

Transcript Highlights:

• They just signed the amendment contract.
• And so that's my first part of the plan.
• Contract costs. And that's a contract to transport prisoners and everything else.
• So we'll look at those first.
• Marshals contract and the county's contract. They have a 1,300-bed facility.

Committee: Senate Senate Finance

Transcript Highlights:

• Committee, we've got a couple of contracts to review.
• So the first one that we have, which is Exhibit C, is a contract for advertising and marketing.
• Is this an increase, or is this a new contract?
• What is—so the current contract ends on June 30th this month, so this will be a new contract.
• contracts will take effect in August, so next month those contracts will take effect, and we are looking

Committee: All ALC-LOTTERY OVERSIGHT SUBCOMMITTEE

Summary: The committee reviewed two Arkansas Scholarship Lottery contracts and the lottery’s proposed fiscal 2027 budget, along with the monthly disclosure report for May 2026. The first contract was a new three-year advertising and marketing agreement with Cranford Company, running July 1, 2026, through June 30, 2029, for $19.29 million total, with two optional one-year extensions. Lottery officials said the contract followed an RFP with five bids, no disqualifications, and would cost about $1 million less than the prior contract. Members asked about the bid scoring formula and the weight given to price, and the item was reviewed after a motion and vote. The second contract was a three-year University of Arkansas sponsorship agreement through Learfield for $86,800 per year, or $260,400 total, with no extensions; members questioned a system-generated summary figure that incorrectly showed $1.8 million, and staff clarified that the contract itself did not contain that amount. This item was also reviewed without objection after a motion and vote. In the budget presentation, the Arkansas Scholarship Lottery projected about $108.2 million in net proceeds to be transferred to the scholarship account for fiscal 2027. Officials highlighted expected savings of about $1 million each from the new gaming system/scratch ticket printing contracts and the new advertising contract, along with slight shifts in instant and draw ticket revenue forecasts. The committee did not take action on the budget beyond hearing the presentation. The monthly disclosure report showed May 2026 instant game sales were flat year over year, draw game sales were up 12.6%, and total revenue was up 2.2%, while net proceeds were down 8.2% year over year but up 2.5% versus budget for the month. Year to date, draw game sales were up nearly 11.5% and net proceeds were up about 6.4% to 6.5% year over year, with net proceeds ahead of budget by 9.5%. Members asked how unclaimed prizes are handled, and staff explained that scratch-off prizes must be claimed within 90 days and draw prizes within 180 days; unclaimed prizes remain in reserve during the year, then all but $1 million are transferred to the scholarship trust account at fiscal year end. The meeting ended with praise for the lottery’s marketing around a recent large winner and then adjourned.

Transcript Highlights:

• Committee, we've got a couple of contracts to review.
• So the first one that we have, which is Exhibit C, is a contract for advertising and marketing.
• Is this an increase, or is this a new contract?
• What is—what is— The current contract ends on June 30 this month, so this will be a new contract.
• contracts will take effect in August, so next month those contracts will take effect, and we are looking

Committee: All ALC-LOTTERY OVERSIGHT SUBCOMMITTEE

Summary: The committee met to review Arkansas Scholarship Lottery contracts and receive updates on operations and finances. Sharon Strong, the lottery’s executive director, presented a new three-year advertising and marketing contract with Cranford Company for $19.29 million, replacing an expiring contract and coming in below the prior three-year amount. Members asked about the RFP process, number of bids, and how cost is weighted in the award formula; the contract was reviewed and approved without objection after a motion and vote. The committee also reviewed a three-year Learfield sponsorship contract tied to University of Arkansas promotional events for $86,800 per year, with a corrected three-year total of $260,400; members questioned a system-generated summary figure that incorrectly showed a seven-year total, and staff clarified the contract itself was only for three years with no extensions. That item was also reviewed without objection. Strong then presented the fiscal 2027 budget, highlighting expected savings of about $1 million each from the new gaming system/scratch ticket contracts and the new advertising contract. The lottery projected slight shifts in instant and draw ticket revenue, corresponding prize payout changes, and net proceeds of about $108.2 million transferred to the scholarship account. In the monthly disclosure report for May 2026, she reported flat instant game sales, a 12.6% increase in draw game sales, and year-to-date net proceeds ahead of budget, with strong draw game performance attributed in part to Powerball. Members asked about unclaimed prizes, which remain in reserve during the year and are transferred at fiscal year-end to the scholarship trust account except for a $1 million reserve, and about how scholarship funds are distributed through the Division of Higher Education based on student rosters and class year awards. The committee also discussed the lottery’s financial statements, including revenue, prize payouts, operating expenses, trust account balances, and unclaimed prize balances. Staff explained that the lottery is self-sustaining and funded by lottery revenue, not taxpayer appropriations, and that the trust account balance is used to meet scholarship requests from higher education. The meeting ended with Senator Hill praising the lottery staff’s marketing around a recent large winner in Little Rock, and the committee adjourned.