Transcript Highlights:

• I didn't ask you to see the intricate details of the audit. I just said, can we see the audit?
• Not the individuals that were students, but the audit. The audit results. That's right. Okay.
• Because that's just your response, not counting everyone else's response at the table or everyone else
• Can you remind me of what the requirements are for the audit? Is it auditing the private school?
• that responsibility.

Summary: The Senate Committee on Education K-16 convened with a quorum, adopted its committee rules, and heard opening remarks from members introducing staff and outlining priorities for the session. Several senators emphasized support for public education, teacher pay and safety, parental choice, and the combined K-16 jurisdiction of the committee. The chair also reviewed hearing procedures, including public testimony registration and time limits. The main item was Senate Bill 2, the Texas Education Freedom Act, laid out by Chairman Creighton. He described the bill as an education savings account program intended to expand school choice, with a $200 million universal eligibility pool and an additional $800 million targeted to students with disabilities and lower-income families. He said the bill includes anti-fraud safeguards, criminal background checks for vendors, reporting requirements, data protections, and annual testing for participating students, while not imposing STAAR on private schools or homeschoolers. He also said the bill removes a prior hold-harmless provision for public schools and is separate from public school funding and teacher pay legislation. Members questioned the bill’s income threshold, lottery and priority structure, treatment of homeschoolers, microschools, charter schools, religious freedom protections, citizenship/lawful presence language, cybersecurity, open records, and disability-related issues, including whether 504 students and foster children should be included. Creighton said the bill is designed to prioritize former public school students with disabilities or lower incomes, while also allowing universal eligibility within the program’s first funding tier, and that the Comptroller would oversee vendor screening and cybersecurity rules. He said the bill does not direct curriculum or interfere with religious beliefs and that amendments may be offered later on citizenship and other issues. After member questions, the committee began invited testimony, starting with EdChoice representative Robert Inlow, who testified in support of SB 2 and cited national growth in school choice programs and studies he said show positive effects for students and public schools.

Transcript Highlights:

• So I just want to make sure that, and thank you for your response, that we have all these contingency
• There were four prior year findings that were resolved and zero reoccurring The 2021 audit contained
• The way the Regional Housing Act is written, we have responsibilities to actions.
• But as a state if they are out of compliance without their audits, I want to know that.
• Is there a better plan, a better mechanism, and who would be responsible for that?

Transcript Highlights:

• How do we audit these? You've talked about coupons and... ...just a quick question.
• So how do you audit this?
• legislative audit is auditing 100% of the claims that are running through on the pharmacy benefits side
• So it is audited quite extensively. Okay. Thank you. All right.
• We did add in some performance guarantees around response times.

Summary: The State Insurance Programs Oversight Subcommittee met on June 17 and reviewed a series of Employee Benefits Division and Office of Property Risk items. The committee approved formulary changes for March and April that favored lower-cost generics, removed some new-to-market drugs from coverage pending more evidence, and made maintenance changes to migraine and diabetes medications. Members also approved a cell and gene therapy policy that would route those therapies through prior authorization rather than automatic coverage; officials said the process should not delay urgent cases and that no current members would be affected. The committee then reviewed a UAMS pharmacy benefit consultant contract amendment, but after extended discussion about the written scope and dollar amounts, the motion was approved with the understanding that any use of optional services would return to the committee for further review. The committee also reviewed the U.S. Able Mutual/Blue Advantage third-party administration contract and the CompSack employee assistance program contract, which officials said would reduce per-member costs and add services. The subcommittee approved proposed 2027 rates for state employees and public employees, with a 9.8% increase for state employees and a 4.9% increase for public school employees. Officials also reported that the UnitedHealthcare rebid was in its final negotiation stage and would return in August, with medical and pharmacy coverage split as previously recommended. In response to questions, the director said the division was considering broader preventive-care offerings, including weight-loss drug coverage, but would proceed cautiously and with strong utilization controls and holistic support if such a program were adopted. On the property risk side, the committee reviewed permanent rules making prior temporary rules permanent, a contingency-fee subrogation contract, and renewals for claims management, actuarial services, and investment management. Members raised concerns about Sedgwick’s claim-adjustment timeliness and communication with school districts after severe weather events; officials said performance guarantees and communication expectations had been strengthened, but the renewal was kept at three years for continuity. Finally, the committee approved 2026-27 captive insurance program rates, which included no change to minimum deductibles, a 10% overall rate reduction, and bucketed rate changes by entity type. Officials said the captive program was working as intended, with improved actuarial support and claims experience, and the meeting adjourned after the approvals.

Transcript Highlights:

• Real-time automated claims review, an audit-like process of 100 percent of claims.
• We openly make sure that folks can audit us.
• We certainly allow audits to occur, but it is the way that we feel a plan sponsor should expect their
• There are federal audits.
• I know it's technical, but I do appreciate the technical responsibilities of this committee.

Summary: The Senate Insurance Committee met on May 13, 2026, adopted the May 6 minutes, and then took up several bills dealing with pharmacy benefit managers, prescription access, behavioral health coverage, and Citizens Property Insurance. HB 938, as amended, was the main PBM reform measure. After the committee adopted a large amendment set that narrowed the bill, members heard extensive testimony in support from Mark Bloom, Justin Joseph of Capital Rx, and Kathy Ue of Pontchartrain Cancer Center, all emphasizing transparency, pass-through pricing, reverse auctions, and patient access. Supporters described savings from reverse auctions and administrative models, while the cancer center testified that PBM-owned specialty pharmacy requirements can delay cancer medications and create financial hardship. The committee reported HB 938 favorably with amendments. The committee also heard HB 1154, which prohibits prior authorization for certain generic medications prescribed by qualified physicians, with a $250 cap discussed as a safeguard against higher-cost generics. The bill was supported by representatives from Ochsner Health and the Louisiana State Medical Society and was reported favorably. HB 909, which requires commercial coverage for behavioral health crisis services, was amended to clarify the insurers covered and then reported favorably with support from the Office of Behavioral Health and several outside groups. Testimony on HB 909 focused on reducing emergency room and law enforcement burdens and expanding crisis response capacity across the state. HB 1187, dealing with excess emergency assessment funds from Louisiana Citizens Property Insurance Corporation, was explained by the Insurance Commissioner as a way to transfer remaining Katrina-era assessment funds to the Fortified Roof Program. The committee reported the bill favorably. Finally, SB 511 and SB 512 were deferred and converted into a study resolution approach because there was not yet consensus on the underlying issue. The meeting then adjourned.

Transcript Highlights:

• In response to Mr.
• I've asked this question as it relates to OSHA and the audit...
• There was a recent audit of Cal/OSHA that we discussed.
• There was a recent audit of Calocia that we discussed. there was another recent. the audits.
• There was a recent audit of Calocia that we discussed.

Summary: The Assembly Budget Subcommittee 5 on State Administration held a May Revise hearing focused on state administration proposals, with the chair noting no actions would be taken and all items would remain open. The committee heard presentations on a range of budget proposals, including technical adjustments for the Governor’s Office of Service and Community Engagement and the California Workforce Development Board, security and election-related funding for the Secretary of State, modernization and loan-backfill requests for the Department of Consumer Affairs, and multiple Employment Development Department updates covering EDD Next, UI and DI/PFL benefit estimates, workforce funding, and an EMT training reappropriation. Several items drew discussion from the LAO and committee members. The LAO generally supported technical or modernization items such as PERB’s implementation requests, GoServe’s College Corps adjustment, the Secretary of State’s security and HAVA grant items, and the Board of Pharmacy modernization proposal, but raised concerns about the Bureau for Private Postsecondary Education’s proposed $10 million General Fund backfill and interest-free loan language. For EDD, the LAO flagged the size of the DI/PFL benefit adjustment and the unusual structure of the document management system proposal within EDD Next, while EDD said the changes reflected higher participation and benefit levels after SB 951 and ongoing modernization needs. The Department of Industrial Relations drew the most extensive questioning. It proposed funding for legal unit reclassifications, EAMS and Cal/OSHA data modernization, a new Cal/OSHA emerging technologies unit, a COYA reappropriation, and trailer bill changes requiring electronic payment of employer assessments and adjusting the Workers’ Compensation Appeals Board timeline. Members pressed DIR on high vacancy rates, long wage theft and workers’ compensation backlogs, low collection rates for fines, and the need for clearer workload and outcome measures. DIR said the requests were intended to improve efficiency, support audits and corrective action plans, and better address emerging workplace risks, while the LAO said the workload drivers behind delays remain unclear. The hearing also included support for CalHR’s employee assistance program consolidation and CDT’s proposal to expand “Poppy,” a statewide generative AI assistant for state employees.

Transcript Highlights:

• that have findings, and we also have four reports without findings that are listed on page one of the audit
• The misunderstanding on our part was that that included the notification to Legislative Audit.
• We knew that we needed to update, or, excuse me, to notify Legislative Audit, and at that time we did
• The Arkansas Department of Parks, Heritage and Tourism takes all audit findings very seriously.
• We've also provided our information and responses through a management response letter that's also a

Summary: The committee first approved the prior meeting minutes and then heard audit reports from Mr. Bullington. Four reports without findings were filed without objection. The Department of Human Services FY24 report contained three findings: suspected fraud involving disaster food assistance and Medicaid benefits by employees, a delayed notification of a forged and cashed state warrant for nearly $610,000, and several fixed-asset and sales-tax errors. DHS officials said they had referred the benefit fraud cases to prosecutors, recovered some restitution, and would change internal procedures so accounts payable staff report such incidents directly to the chief fiscal officer. Committee members questioned the missing assets, the warrant delay, and the tax issue, and the report was deferred to the next meeting so DHS could return with written policy changes. The Department of Parks, Heritage, and Tourism FY24 report had two findings: the loss of nearly $3,500 in museum receipts, believed to be theft at the Mosaic Templars Cultural Center, and issues with change funds at Daisy State Park and War Memorial Stadium. Agency officials said they had implemented new controls, including a point-of-sale and reservation system for museum rentals and more frequent reconciliation of change funds. Members asked about the criminal case, the statute of limitations, bond board reimbursement, and whether the employee’s final paycheck could be withheld. Mr. Bullington later reported that the prosecutor’s office said the Parks and Tourism investigation remained open and that additional information had been requested from the agency. The committee then deferred that report as well, and adjourned after setting the next meeting for February 12, 2026.

Transcript Highlights:

• So the 23-24 performance audit, no findings; the 21... of reference.
• So the 2023-24 performance audit: no findings. The 2021-22 performance audit: no findings.
• I provided prior audit findings to our investigator.
• I provided prior audit findings to our investigator.
• I've looked at the whole audit report from the PeopleSoft deployment.

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

Transcript Highlights:

• is responsible for adult guardianship. is responsible for adult guardianship.
• Included in the audit report is the judicial branch's response to the OA's findings and recommendations
• in the audit report is the judicial<00:31:36.880> branch's<00:31:37.440> response<00:31
• any response to the education piece? any response to the education piece?
• >> Chair Penton response. >> Chair Penton response.

Bills: HF3901, HF962, HF4428, HF4478, HF1775

Keywords: foster care, ombudsperson, investigative powers, children's rights, complaint process, HF4428, Medical Assistance, Medicaid, community engagement, work requirement, work mandate, employment requirement, community service, 80 hours, half-time student, income threshold, federal minimum wage, eligibility verification, benefit suspension, benefit termination

Transcript Highlights:

• It's just that I think anything further where it starts to impose responsibilities, then it's, uh, we
• It's just that I think anything further where it starts to impose responsibilities, then it's, uh, we
• It's just that I think anything further where it starts to impose responsibilities, then it's, uh, we
• We get financial statements filed, whether they be audited or attestations.
• this is uh one of their responsibilities this is uh one of their responsibilities and<00:42:52.319

Keywords: 912, senate, all

Summary: The committee heard several insurance and condominium-related bills. SB 1137 would require insurers to notify policyholders of approved rate changes within 30 days and at least 30 days before the effective date. The Insurance Division supported the bill, while testimony focused on condominium master policies and whether the notice period would be enough for associations to respond to rate increases. The division said the bill would mainly affect admitted carriers, not surplus lines insurers that write many condominium master policies, and warned against limiting the nonadmitted market. SB 293, requiring sellers to disclose when USPS cannot deliver mail or packages to a residential property, was also heard with HAAI Realtors commenting. SB 752 would extend notice periods for cancellation or nonrenewal of property-casualty policies; the Attorney General’s Office raised concerns about contractual impairment and retroactive application. The committee also heard SB 575, which would allow authorized insurers to offer building and hurricane damage coverage for condominium buildings at a lower rate than prior surplus lines coverage. The Insurance Division stood on written testimony, and a condominium owner urged amendments to require a membership vote before such coverage changes, citing concerns about condominium self-governance. SP 1046 would require managing agents to notify unit owners and the Real Estate Commission when a condominium association fails budget and reserve reporting requirements. The Real Estate Commission said the bill was administratively workable as drafted but noted ambiguity over who counts as the “managing agent”; several testifiers opposed the measure, arguing it could disrupt the principal-agent relationship and impose legal judgment on nonlawyers, while others supported it. SP 150, dealing with captive insurance companies seeking exemption from examinations, drew the most detailed discussion. The Captive Insurance Council supported the bill as a way to reduce duplicative oversight and improve Hawaii’s competitiveness, while the Insurance Division opposed it as drafted, citing concerns about broad commissioner discretion, possible missed issues between exams, staffing shortages, and the need to preserve oversight. A committee member asked about a possible middle ground, including a shorter exemption period or limiting the bill to self-attestation companies; the division said it would need more information and that annual filings and approval requirements would still provide oversight. The committee also heard SP 212, which would require at least two Real Estate Commission members to be licensed engineers or architects; testimony included support and a concern about conflicts of interest among people who serve in multiple roles in the condominium and real estate sectors. No votes or final actions were taken in the portion provided, and the chair moved from one measure to the next after testimony and questions.

Transcript Highlights:

• Auditing and reporting tools, obviously, performance...
• Auditing and reporting tools, obviously, performance measures.
• So there's a regular audit cycle. Every cycle goes through their annual certification audits.
• Every site is audited on a three-year cycle. Okay.
• Do we still, is that our responsibility or their responsibility from not following up in a timely manner

Keywords: 959, house, all

Transcript Highlights:

• Johnson, our Executive Director, to give some brief remarks in response to your posting.
• We have typically a very quick response time.
• Respondents are given every opportunity to file a responsive briefing.
• Our core responsibilities include strategic.
• And I know it's been the response of the legislature to come up with big government. responses to this

Keywords: 1184, house, all

Transcript Highlights:

• auditing.
• team, and the new crisis response program.
• responsibility of the Department of Military Affairs.
• really, it's us being responsible, except for that $100,000, which was us being responsible in trying
• But this year, we had three audit findings, and one of them was a major audit finding that we knew exactly

Keywords: 996, all

Transcript Highlights:

• <00:43:17.359> and response and response and intervention<00:43:19.520> um<00:43:19.800
• <00:43:29.520> and finally residential crisis response and finally residential crisis response
• and identify underpayments, MinnesotaCare audits and investigations, Child Care Grant audits, CCAP child
• audits.
• and identify underpayments, MinnesotaCare audits and investigations, Child Care Grant audits, CCAP child

Keywords: 1183, house

Summary: The committee met for an introductory overview of its jurisdiction and staff roles. Nonpartisan House Research and House Fiscal staff explained that they draft bills and amendments, prepare bill summaries and background research, answer legal and fiscal questions, and help track revenue and budget effects. They also distributed a Budget Overview Brief intended to condense the larger budget materials into a more usable format for members. Staff then walked through the Human Services budget and the committee’s areas of responsibility. They described the department structure, noting that DHS oversees administration, compliance, rulemaking, and county support, and that the overall Human Services budget is large, with medical assistance as the dominant program. They also explained recent and upcoming reorganizations: many children and family-related functions are moving to the new Department of Children, Youth, and Families, Direct Care and Treatment is becoming its own agency, and some homelessness-related functions remain at DHS. Staff reviewed how the budget is organized by program and budget activity, the difference between direct appropriations and standing appropriations, and how forecasted programs and “tails” work in the budget process. The presentation also covered Medicaid financing and long-term care. Staff explained the federal-state FMAP match, including Minnesota’s current 51.16% federal match for most Medicaid spending, the CHIP match, and the 90% federal share for the expansion population. For long-term care, they outlined Medical Assistance services for elderly and disabled people, state-funded long-term care supports, and Board on Aging programs. They highlighted the personal care assistance program’s phaseout and replacement by Community First Services and Supports, and reviewed the five home- and community-based waivers. Members asked one question about refugee resettlement funding, specifically whether it covers flights; staff said they would need to follow up on the exact use of the federal funds. No bills were heard, and no formal votes or other committee actions were taken during this meeting.

Transcript Highlights:

• I don't understand when we're in a time where we're like they can decide what they're going to audit.
• is a fiduciary responsibility of those districts to continue reporting that to the public.
• And that's why we got dinged by the OPPAGA audit.
• Maybe they need an outside audit and report. Maybe they need an outside audit and report.
• So we're adding added duties, more responsibilities to them.

Summary: The Agriculture and Natural Resources Budget Subcommittee met and first took up CS/HB 973, a broad special districts bill focused heavily on soil and water conservation districts. The bill would dissolve 35 soil and water districts effective December 31, 2025, based on an OPAGA review that found widespread problems such as lack of revenue, inactive boards, poor notice practices, public records issues, and late financial reporting. It also would let special districts use state contracts, authorize FDLE background checks for district employees, preserve fire district taxing/service authority after annexation, extend liability protections for outdoor recreation on certain district lands, tighten eligibility for soil and water supervisors, and shift complaint review to the Commission on Ethics. Supporters argued the districts are often inactive, duplicative, and costly to review, while opponents said many districts provide local conservation, water quality, outreach, and volunteer services and should be given more time to remediate. Public testimony on HB 973 was mixed. Several soil and water district chairs and related advocates opposed the bill, saying their districts provide local conservation, flood, invasive species, education, and coordination services at little or no taxpayer cost, and that abolishing them would remove local representation and collaboration. The bill’s proponent, the Florida Association of Special Districts, supported the measure as a limited-government and accountability reform, arguing that districts with no revenue or contracts should not continue. Members debated whether the bill was relying on the OPAGA report while also eliminating future performance reviews, whether the Department of Agriculture could absorb the added responsibilities, and whether the districts should have been given more time to correct deficiencies. The committee ultimately voted the bill favorably, with one no vote from Representative Hinson. The committee then considered CS/HB 995, which applies to Monroe County and the Florida Keys. The bill would exempt Habitat for Humanity in the Keys from construction performance bond requirements for affordable housing, extend the Florida Keys land acquisition/set-aside authority in Florida Forever for 10 more years, and extend the hurricane evacuation time frame from 24 hours to 24.5 hours to allow up to 825 additional residential permit allocations, phased in over 10 years and directed largely toward vacant buildable lots and workforce housing. An amendment was adopted to codify the 825-unit allocation and the distribution framework. With no opposition offered on the bill, the committee reported HB 995 favorably by unanimous vote.

Transcript Highlights:

• <01:01:50.160> of continue to be the responsibility of continue to be the responsibility of
• responsibilities seriously. responsibilities seriously.
• audit saying, "Hey, Mr. secretary, you can<01:50:52.719> audit<01:50:53.040> the<01:50:
• Voting stations are open for 30 seconds. that audits are one of the reasons that that audits are one
• <01:57:06.159> for government is responsible for government is responsible for controlling

Keywords: 1189, house, all

Transcript Highlights:

• But we have audit activities and we have compliance activities.
• This is most likely due to confusion about the responsibility to report the tax.
• We're asking for $154,000 to support three core responsibilities.
• We also added audit and protest workloads for our pass-through entities and our business entity audit
• We also added audit, protest workloads for our pass-through entities and our business entity audit cases

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

Transcript Highlights:

• But there's a responsibility in law.
• <01:39:50.560> audits<01:39:51.000> of 12416 say it does say audit audits of 12416
• and used only for the audit.
• The LBA will do the audit.
• a either that or somebody got audited a either that or somebody got audited and<01:57:07.639>

Keywords: 928, house, all

Summary: The committee reviewed selected House Bill 2 provisions, focusing first on the group two pension reform language and whether it matched prior legislation and the fiscal note. Members discussed two main issues: the treatment of extra and special duty pay in the pension calculation for employees hired before 2011, and the annuity multiplier after 15 years of creditable service. Several members said the HB 2 language was intended to restore prior law and protect against pension “spiking,” while others worried the draft and fiscal note may not have fully reflected current law, potentially affecting the cost estimate. The discussion repeatedly emphasized the need to avoid underfunding or double counting and to make sure Finance had the correct actuarial assumptions. No vote was taken; the committee agreed to flag the issues for Finance and to clarify the fiscal note. Members also discussed the vested-rights language, which was described as an explicit definition of vesting and a restriction on future legislative changes to compensation calculations after three years of service. Some viewed it as a policy protection with no immediate fiscal impact, while others noted it had been included in prior legislation and should be clearly understood before the bill moved forward. The committee also briefly referenced prior pension legislation, including House Bill 436 and House Bill 727, and noted that HB 2 was being used to carry forward related pension repair provisions. The committee then turned to an OPLC-related section transferring building, plumbing, electrical, and fuel gas inspector positions from OPLC to the Department of Safety’s Fire Marshal’s office. Testimony explained that the nine inspector positions are funded from the licensing fund, and that the move was justified as a public-safety function better aligned with the Fire Marshal’s mission because the inspections are statewide code-enforcement work rather than facility-specific licensing work. The discussion ended with a note that the remaining HB 2 changes run through 2034 and a brief announcement about memorial arrangements for C.J. Gerard.

Transcript Highlights:

• Um, I'd like to talk about a section that deals with MCO audits and appeals.
• This section of the bill seeks to set fair limits on audits and limits the audit claims to no more than
• It requires timely, transparent audits, requiring MCOs to complete audits and deliver findings within
• <00:17:56.640> of to the Kentucky statute for audit of to the Kentucky statute for audit of
• And we accountability, responsibility.

Keywords: 958, all

Summary: The House convened with an invocation and Pledge of Allegiance, established a quorum, excused absent members, suspended rules to allow co-sponsorships and vote modifications, and approved the journal from February 26, 2026. The clerk then reported several bills on second reading, including measures on state personnel, domestic violence, fish and wildlife resources, open records, workforce investment, data centers, guardians ad litem and domestic relations, along with Senate Concurrent Resolution 9 on a Medicaid pilot feasibility study and Senate Joint Resolution 23 declaring Kentucky a “food is medicine” state. The main floor business was House Bill 2, the Medicaid reform and appropriation bill. The sponsor described it as a response to rising Medicaid costs and federal changes, saying it would improve transparency, oversight, fraud prevention, and program operations. He said the bill would apply mainly to the Medicaid expansion population and include community engagement, cost-sharing, eligibility safeguards, stronger managed care oversight, transportation and dental delivery changes, waiver program prioritization, greater legislative access to CHFS data, a transparency dashboard, periodic auditor review, and limits on certain weight-management drug coverage. A House committee substitute was adopted, and a floor amendment on phasing in a marginal medical loss ratio requirement over four years was offered as a friendly amendment and adopted. The House then debated House Floor Amendment 1, which would have removed state-mandated co-payments and limited cost sharing to the federal minimum, while also prohibiting reporting medical debt to credit agencies. Supporters argued the amendment would protect low-income Kentuckians from barriers to care and prevent medical debt from worsening poverty. Opponents said the bill’s co-pays were intended to encourage appropriate use of care, especially to reduce non-emergency emergency room visits, and noted that providers and MCOs could waive or work around some charges. After a roll call vote, the amendment failed 20-39. After the amendment vote, the House continued discussion of the bill, with the sponsor defending the co-payment structure as a way to promote personal responsibility and sustainability while preserving access to primary care. The transcript ends during further debate on House Bill 2, and no final passage vote is shown in the provided excerpt.

Transcript Highlights:

• We talked about we were getting ready to have an audit.
• We talked about we were getting ready to have an audit.
• Um, we thought about waiting to audit.
• Oh, the audit.
• 19:44.960> when<00:19:45.520> an your average response time when an your average response

Keywords: 916, all

Transcript Highlights:

• I'm an auditor with Arkansas Legislative Audit. I'm David Webb.
• I'm one of the audit supervisors with Legislative Audit.
• The response was that an answer would have to be provided later.
• need to talk to the data analyst and provide a response later.
• The response was that it was due to inflation.

Keywords: 1204, all