Transcript Highlights:

• Individuals will be limited to three minutes in panels, 10 minutes.
• That is a staggering number that dwarfs the $15 billion-ish of unfunded pension liability.
• Yet unlike pension liability, municipalities... ...unfunded pension liability.
• Our current liability for the agency is approximately $7 million.
• In 2013, our invoice pension liability was $470,000.

Keywords: 995, all

Summary: The Joint Committee on Public Service heard testimony on a wide range of retirement, municipal workforce, and public employee labor bills. Early testimony focused on H. 2749, a Plymouth home rule petition to classify Plymouth harbormaster employees as Group 4 for retirement purposes. Supporters, including local officials and retirement board representatives, argued the employees perform law-enforcement and rescue duties comparable to police and fire personnel, that the change would be fair, and that it would have little or no fiscal impact on the town. A separate harbormaster-related bill, H. 2743, was also introduced later in the hearing. The committee also heard testimony on provisions of the Municipal Empowerment Act (H. 56), including a temporary critical-shortage exemption allowing retired state or municipal employees to return to work in hard-to-fill positions, and a renewed OPEB commission to study retiree health care costs. Administration and municipal officials said the measures were needed to address staffing shortages and rising benefit liabilities, while emphasizing the shortage exemption would be time-limited and require proof of recruitment efforts. Related retirement bills drew support and caution: advocates for higher COLA bases and enhanced COLA benefits urged relief for retirees, but some asked the committee to wait for recommendations from the special COLA commission before acting. A major portion of the hearing concerned labor rights at the Massachusetts Water Resources Authority and the Committee for Public Counsel Services. Union representatives and employees backed bills to extend just-cause protections, promotional rights, and collective bargaining rights to MWRA and CPCS workers, arguing they currently lack protections available to most other public employees. Testimony described unfair discipline, delayed promotions, and high turnover, and committee members indicated prior favorable action on similar MWRA bills and expressed support for addressing CPCS labor rights. The committee also heard from representatives of the Massachusetts Municipal Association and public higher education employees in support of H. 2820, which would require timely funding of ratified state employee contracts, with witnesses describing long delays in receiving negotiated raises and back pay. No votes were taken during the hearing, and the chair repeatedly invited written testimony and closed each panel after questions.

Transcript Highlights:

• This is Senate Bill 536, which had to do with medical malpractice actions and limitations on recovery
• Lines 42 through 45 of the substitute on page three specify that the recovery by a patient is limited
• The bill extends the statute of limitations for medical malpractice actions in instances where medical
• The substitute specifies that the recovery by a patient is limited against the personal income or assets
• The bill extends the statute of limitations for medical malpractice actions in instances where medical

Keywords: House Committee Room C, General Assembly Building, 976, house, all

Transcript Highlights:

• You remember that when we were talking about the limitation on liability provision in the original bill
• , which is the same in the amendment, there was a limitation on liability unless the conduct by the medical
• You remember that when we were talking about the limitation on liability provision in the original bill
• You remember that when we were talking about the limitation on liability provision in the original bill
• You remember that when we were talking about the limitation on liability provision in the original bill

Keywords: 1189, house, all

Transcript Highlights:

• All these people in New Mexico, but won't make any money and have a tax liability to apply the credits
• to the universe of people that have a tax liability to offset.
• Well, I hope a lot of people have tax liabilities, Mr. Chair. Otherwise, we have a weak tax system.
• If a data center had revenue and added tax liability, they could certainly acquire that credit.
• None of our tax credits limit transferability to a certain Industry.

Keywords: 996, all

Transcript Highlights:

• We likely won't fix the number of presenters, but typically we will limit the amount of testimony to
• Because obviously some business owners have tremendous income swings in liability and non-liability,
• And liability and non-liability, and I think it's fortunate that all of the year those returns are filed
• Certainly, folks can request a waiver of penalty, and most... and liability and non-liability and I think
• The bonds are payable without limits to the rate or amount. I have some issues with that.

Bills: HB2016, HB2104, HB2105, HB2288, HB2289

Keywords: tax penalties, filing, tax returns, administration, Arizona Revised Statutes, agricultural property, classification, county assessor, property inspection, appeal process, property tax, agricultural classification, Department of Revenue, property valuation, inspection notice, inspection report, on-site inspection, full cash value, rural land, farm land

Summary: The committee began with member, staff, and page introductions, then heard reminders about public testimony limits. It first considered House Bill 2016, which would eliminate late-filing penalties when a tax return shows zero tax due. The sponsor argued the bill would prevent unnecessary fines on small businesses and individuals with no liability, while staff noted any fiscal impact would likely be minimal. The bill passed on an 8-1 vote, with one member opposing it on the grounds that current waiver procedures already exist and the change could weaken compliance incentives. The committee then took up House Bill 2104, which would bar county assessors from reclassifying agricultural property for four years after an owner prevails on appeal, unless there is a change in use, ownership, or parcel configuration. The sponsor and agricultural groups said the measure would reduce repetitive annual appeals and provide stability for ranchers and farmers, especially in urbanizing areas and in places affected by fallowing. County assessors opposed the bill, arguing that their offices are better qualified than the State Board of Equalization, that the bill could allow inaccurate classifications to persist, and that it relies too heavily on owners to report changes. After extensive testimony from the Maricopa County Assessor and the State Board of Equalization executive director, the committee approved the bill 5-4. Next, House Bill 2105 was heard. It would require advance notice of certain property inspections and provide inspection reports to property owners. The sponsor said the goal was to give owners a chance to be present for inspections and to receive the reasons for any denial of agricultural status. Assessors opposed the bill as an unfunded mandate and said they already communicate with owners through mail, door hangers, and other methods, but that a standardized report form does not currently exist. Supporters from the farm and ranch community said the bill would improve transparency and help avoid disputes. The committee passed the bill 5-4. Finally, the committee heard House Bill 2289, which updates truth-in-taxation and election pamphlet language to reflect higher residential property values, including a new $400,000 example. The sponsor and the Arizona Tax Research Association said the changes would make taxpayer notices more accurate and noted the bill was similar to one that had previously advanced, but without a provision that contributed to a veto. No vote was taken on this bill in the portion provided.

Transcript Highlights:

• Nearly a year later, MoDOT was sued and only then realized the crash occurred within the limits of the
• At that point, the liability was shifted to the contractor's insurance, even though the contractor had
• When our contractors have no liability limits and they can be sued for $5 million, $10 million, whatever
• I mean, we price our jobs accordingly, knowing that we have that kind of liability.
• board. ...from our perspective and from the contractors, they wanted liability across the board.

Keywords: 959, house, all

Transcript Highlights:

• aligning liability with responsibility. aligning liability with responsibility.
• limited to 3 minutes. Thank you, Mr. limited to 3 minutes. Thank you, Mr.
• vote then explain, limited to 3 minutes. vote then explain, limited to 3 minutes.
• <00:27:44.120> Uh outlined regarding tort liability.
• Uh outlined regarding tort liability.

Keywords: 958, all

Transcript Highlights:

• And then Russ Olson from the Pollution Liability Insurance Agency.
• And then Russ Olson from the Pollution Liability Insurance Agency.
• We also are seeing increased premiums and insurance liability.
• So let's start with the utility liability market study.
• It's a strict liability statute.

Summary: The committee first heard updates on the Model Toxics Control Act (MTCA) and related funding. Department of Ecology staff explained how MTCA and the hazardous substance tax support cleanup, prevention, stormwater, and local assistance programs, but said forecasted revenues have declined while appropriations and transfers have outpaced incoming funds. Ecology said the operating account will require underspending to stay balanced this biennium and that the problem is ongoing, with further reductions possible if forecasts worsen. Ecology also reviewed the state cleanup program, noting there are more than 14,500 cleanup sites in Washington and that new sites continue to be discovered faster than they are cleaned up. A question from Representative Lee raised the long-term issue of declining fossil-fuel-based revenue, and Ecology agreed that this is a future structural concern even though the current shortfall is driven more by forecasts and transfers than by fuel-use decline. The Pollution Liability Insurance Agency described its underground storage tank and heating oil programs, saying it has modernized from a reinsurance model to a financial assurance model with stronger state oversight and cleanup milestones. Russ Olson said the agency’s dedicated petroleum tax account is in strong financial condition, but emphasized the importance of preserving that funding source. He also discussed the loan and grant program for historic commercial releases and a new heating oil loan/grant program, while noting the agency is working on equity concerns where liens can be disproportionate to property values in smaller communities. Practitioners and advocates then offered differing views on MTCA’s performance: one attorney urged a collaborative review process to make cleanups faster, less expensive, and more certain, while another consultant argued the program is too conservative and process-heavy and should focus more narrowly on actual exposure and realistic cleanup standards. Environmental and community groups countered that MTCA is essential for cleanup, pollution prevention, stormwater control, and public participation, and that it is especially important for environmental justice communities such as the Duwamish Valley. Port and city representatives stressed that MTCA grants and cleanup funding are critical for large redevelopment projects, but said long timelines, permitting delays, and funding uncertainty can slow projects and jeopardize commitments. The committee then shifted to utility wildfire risk. Staff summarized recent legislation, including requirements for utility wildfire mitigation plans, creation of a wildfire mitigation standards work group, authorization for captive insurance by local governments and PUDs, securitization authority for disaster costs, and the existing wildfire response and resilience account. Chelan County PUD and Puget Sound Energy described extensive mitigation efforts such as vegetation management, grid hardening, undergrounding, AI smoke cameras, weather stations, enhanced operating settings, public safety power shutoffs, and community outreach. Both said wildfire risk is rising and insurance costs are increasing, and Chelan PUD asked the Legislature to restore funding to the wildfire response and resilience account. The Office of the Insurance Commissioner said a 2022 utility liability market study found insurance availability is tightening as perceived risk rises, and reported that a 2025 work group recommended restoring community resilience funding, requiring insurers to share wildfire risk scores and mitigation steps with property owners, and creating a grant program based on insurance industry wildfire standards. A PNNL scientist added that wildfire probability is increasing in parts of Washington and that mitigation requires long-term, landscape-scale coordination. The final speaker began describing California’s approach to wildfire risk, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• Would regulate evictions or limit evictions post-COVID.
• You could probably point to the tax limitation and maybe the 50-cent debt limit, but otherwise, I'd say
• assume because of their address that they live in city limits.
• They are limited waivers of immunity.
• You mentioned the not cap, the limited waiver of $250,000, The not-cap, the limited waiver of $250,000

Keywords: 1184, house, all

Transcript Highlights:

• Some people think that it is more limiting and gives that loophole.
• I was limited, but okay. Yeah, there’s a big agenda.
• Adoption and liability notice.
• And if you'll limit your comments to one minute, please. Thank you. basis.
• That's Senate Bill 724 related to property owner liability.

Summary: The committee first took up SB 1272 on guardianship, which would limit a guardian’s ability to isolate an adult ward from family and require notice to family or other named persons about major events such as a ward’s death or medical relocation. Senator Jones said the bill was intended to curb abuse by bad actors while not affecting good-faith guardians. Fortuna Smuggler and Phyllis Smith spoke in support, describing the need for family notification and closure. The bill passed unanimously, 8-0, and was reported favorably. The committee then considered CS/SB 1284 on wrongful death for an unborn child. Senator Graal explained that the bill would expand Florida’s Wrongful Death Act to allow parents to recover economic and non-economic damages for the death of an unborn child. An amendment was adopted to define “unborn child” as a member of the species Homo sapiens carried in the womb and to state that the act does not authorize a wrongful death action against the mother or a health care provider acting within the applicable standard of care. The amendment drew questions about abortion, medical emergencies, and whether fathers could sue; the sponsor said the bill was not intended to create claims against mothers or lawful medical care. Public testimony was sharply divided, with supporters arguing it gives families parity and accountability, and opponents warning it could be used to target abortion care, increase malpractice pressure, and worsen physician shortages. The committee approved the bill as amended by a 6-4 vote. Finally, the committee heard a strike-all amendment to SB 1288 on parental rights. The amendment would strengthen parental consent requirements for minors’ medical care, with exceptions for emergencies, court orders, certain legal categories of minors, and other existing statutory exceptions. It also would require parental consent for treatment related to STD screening, give parents more control over school or health surveys, and address use of biofeedback devices. Supporters said the measure restores parents’ authority and protects children from inappropriate questioning or treatment, while opponents argued it could block needed care for minors in unsafe homes, reduce access to STI treatment and mental health services, and create unintended consequences. The amendment was adopted, and the committee continued hearing testimony on the bill.

Transcript Highlights:

• I know that among your... liability for transport because in that liability for transport because in
• exchange<00:46:47.920> to limits still limits syringe exchange to limits still limits syringe
• substance abuse to propos liability substance abuse to propos liability protection<00:49:48.319>
• There's no liability.
• amend mment on immunity from liability amend mment on immunity from liability for<02:00:55.560><

Keywords: 910, house, all

Summary: The Committee on Health heard testimony on several bills. On SB 1441, which would repeal the transfer of the Oahu Regional Health Care System from HHSC to the Department of Health, the Department of Health said it strongly supports the measure and requested clarifying amendments. HHSC/Oahu Region also supported the bill and said it had no objection to the department’s amendments. In response to questions, witnesses said the agencies have been working on an MOU to support transfers of long-term care patients to Leahi, with the current goal being about 10 to 15 patients, but transfers would occur only as space and staffing allow; one patient was reportedly being admitted at the time, and the process was described as slow and case-by-case. The committee then heard SB 1443 on payment rates for state hospital patients and related Department of Health services. The hospital administrator said the bill would allow rates above Medicaid for community or foster-home placements if patients cannot be placed at Leahi or elsewhere, and would set Medicaid-level reimbursement for outside medical services used by state hospital patients. He said at least one provider was interested in offering services at that rate and that the population involved is largely non-ambulatory long-term care patients. Members asked about availability and training, and the witness said special training could be provided. SB 1322, a broad mental health bill, drew mixed testimony. The Department of Law Enforcement supported giving crisis-intervention-trained officers more discretion to transport people to medical care instead of arresting them. The Attorney General supported the bill but recommended revisions to emergency-transport language and restoring liability protections. HHSC and Queens Hospital supported the overall goal but sought amendments to preserve the mental health emergency worker role in decision-making and to avoid negative impacts on emergency departments. The Disability Rights Center and ACLU opposed parts of the bill, arguing that it weakens due process, reduces protections in involuntary treatment and transport, and should retain a three-person treatment panel rather than reduce it to one. A Queens representative said the current program works well and reported that more than 90% of MH1 cases once went to hospitals, but that figure has dropped to about 60-70%, with about 20% now diverted to community settings or the behavioral health crisis center. No votes or final committee actions were taken in the portion provided.

Transcript Highlights:

• Um, so I limited, we limited our analysis to what it would take us to implement the bill, uh, with, with
• But on the other hand, I think the liability is one piece of this.
• So that's how that liability is assigned. Any questions?
• In other words, does that, does that transfer the liability then?
• And by taking that, they're, they're being transferred that liability.

Transcript Highlights:

• For this hearing, we're limiting substantive testimony to two primary witnesses on each side of the bill
• It will limit disclosure of egregious misconduct to prospective school employers.
• It also exposes us to extensive liability for creating the risk of childhood sexual assault.
• Leilaniaki Naldo, on behalf of the School's Access Liability Fund.
• In addition, we believe that SB 1083 would expand potential liability because of the ALJ process that

Summary: The Assembly Committee on Public Employment and Retirement heard several bills, beginning with SB 1166 by Senator Arreguín, which would allow AC Transit and its employees to use the Public Employment Relations Board to resolve unfair labor practice charges instead of the courts. The author and union supporters said PERB would provide a faster, fairer, and more specialized process, while no opposition testified. The committee members expressed support, and SB 1166 was approved on a due pass motion and re-referred to Appropriations. The committee also took up consent items SB 1024, SB 1207, and SB 1444, which were moved on consent and placed on hold for absent members. Later, SB 1083 by Senator Perez was heard; it would refine last year’s school misconduct database law by adding an administrative law judge review process for classified employees, requiring stronger employer notification and record-sharing procedures, and extending vetting requirements to certain contracted workers. Supporters, including classified employees and labor groups, argued the bill adds due process and fairness while preserving student safety. Opponents, including school administrators, school districts, and liability organizations, argued it could create gaps in misconduct records, increase liability, and weaken protections for students. After discussion, the author said he was continuing to work with opponents on amendments and emphasized the bill’s goal of balancing due process with child safety, referencing his own experience with grooming as a student. SB 1083 was passed on a due pass motion and re-referred to the Committee on Education. The chair then announced that all bills had passed and adjourned the meeting.

Transcript Highlights:

• For this hearing, we're limiting substantive testimony to two primary witnesses on each side of the bill
• It will limit disclosure of egregious misconduct to prospective school employers.
• It also exposes us to extensive liability for creating the risk of childhood sexual assault.
• Leilaniaki Naldo on behalf of the School's Access Liability Fund.
• In addition, we believe that SB 1083 would expand potential liability because of the ALJ process that

Keywords: 988, house, all

Transcript Highlights:

• The state's total liabilities were $11.1 billion, as shown on page 19 of the report.
• of $3.3 billion, and the net pension liability of $2 billion.
• changes being the decrease and increase in net pension liabilities.
• So we're not depleting that liability, that actuarial liability, as quickly as we could.
• and then there's cash liability.

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• So HB 71 deals with the immunity of liability for private security guards who use their weapon on their
• He asked me to limit the scope of what we were talking about.
• And so this amendment says that the security officer is entitled to the limitation of liability if the
• And so it would not provide for a limitation of liability if he was shot.
• What this does is takes away the special limitation of damages for the carbon capture industry.

Summary: The Senate Committee on Judiciary A met on May 19, 2026, established a quorum, approved the May 12 minutes, and heard two bills. Senator Carter also made a personal privilege statement wishing his wife a happy birthday. The committee took up House Bill 71, which provides liability protection for private security guards who use a weapon in the course of their duties when the use of force is deemed justifiable by the district attorney and responding law enforcement. After discussion, the committee adopted amendment set 4036, which narrowed the bill so the liability limitation applies only when the perpetrator is wielding a dangerous weapon as defined in law. An informational card was noted, and an opposition witness waived testimony in light of the amendment. HB 71 was then reported with amendments. The committee next considered House Bill 79, which would remove a special limitation on damages for the carbon capture industry. The author argued the industry should not receive a damages cap that other industries do not have. The committee adopted amendment set 3979, which restored a non-economic damages cap of $250,000 except in cases involving wrongful death, permanent substantial physical deformity, loss of use of a limb or bodily organ system, or permanent injury preventing independent self-care. One supporter card was noted, and HB 79 was reported with amendments. The committee then stood at ease.

Transcript Highlights:

• to energy establishes Wildlife liability to energy establishes Wildlife liability trust<00:08:19.280
• Because I understand the need to limit the liability, but this mechanism of securitization, it just seems
• <00:31:40.320> issue at the addressing the liability issue at the addressing the liability
• <00:34:51.480> question<00:34:51.879> was liability question was liability question was
• These proposed amendments limit the recourse to the state, ensure timely payments to IPPs, limit financial

Keywords: 910, house, all

Summary: The committee on Energy and Environmental Protection heard testimony on Senate Bill 897, which would create a Wildlife Liability Trust Fund within DCCA for administrative purposes. The chair opened by noting the hearing had to end by noon because of floor session, and that written testimony would be considered if not all witnesses could speak. Testimony included support from DCCA, the Attorney General’s office, the Public Utilities Commission, Charter Communications, Ulupono Initiative, AES Hawaii, Hawaiian Electric, Clearway Energy Group, Kauai Island Utility Cooperative, Hawaiian Telcom, and IBW Local 1260, with opposition or concerns from the Hawaii Association for Justice and some others. Hawaiian Electric strongly supported the bill and asked for amendments, saying the fund would help address wildfire liability, protect customers and the economy, and support restoration of investment-grade credit; it also proposed a larger shareholder contribution and said the bill was part of a broader effort to raise settlement funds and improve grid safety and resiliency. Committee members focused heavily on whether the bill would actually lower costs for ratepayers and improve credit ratings. DCCA said there was a nexus between limiting liability, creating a sufficiently large wildfire fund, and transparent mitigation requirements, but acknowledged there was no guarantee of a credit-rating improvement or precise estimate of rate impacts. Members questioned Hawaiian Electric about the assumptions in its cost comparisons, the 30-year securitization structure, and whether funding could be shifted later to shareholders after credit was restored. Hawaiian Electric responded that the bill assumes the fund is paid through securitization, that removing that presumption could undermine the credit-rating benefit, and that its models suggest credit-spread savings could offset the customer charge over time; it also said it would follow up with additional analysis. The company and Ulupono both described the measure as a difficult but potentially necessary way to socialize wildfire risk and avoid a larger crisis later. The Hawaii Association for Justice opposed the bill’s liability caps and raised concerns about consumer rights, oversight discretion, statute-of-limitations changes, and evidence rules. Hawaiian Telcom suggested amendments to clarify compliance with FCC pole-attachment agreements. No vote or final action was taken during the portion of the hearing provided, and members indicated they wanted more analysis before being comfortable with the bill’s long-term ratepayer impacts.

Transcript Highlights:

• This increased tax liability is jointly.
• . liability. liability.
• That increased tax liability is their marriage penalty.
• The limitations described are to the scope of this evaluation.
• group or financial resource limitations group or financial resource limitations associated<01:04

Keywords: 1187, senate, all

Transcript Highlights:

• So the structural engineers' private providers shall be granted the same liability limitations as public
• > building liability limitations as public building liability limitations as public building officials
• liability of the building.
• <01:03:35.280> of party to the liability of party to the liability of the<01:03:37.280>
• We have a couple of the limits of liability issue, and wasn't there something else you were going to

Keywords: 1189, house, all

Transcript Highlights:

• Now on to the pension liability.
• Now on to the pension liability.
• In 2023, the liability increased significantly to about 1.5 billion. 23, the liability increased significantly
• So why does the pension liability fluctuate? So why does the pension liability fluctuate?
• We were limited in collecting. We talked about it.

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