Transcript Highlights:

• Okay, next slide is the contract design failures.
• Medical referrals, by contract, which I have the contracts right down here, any initial placement, there
• The only way they contract is by bed space.
• These contracts and these procurement policies, these are all their contracts.
• This original contract was executed in 2019. It's been amended 13 times on this one contract.

Committee: House House Government Committee of Reference

Summary: The Committee on Government met for a presentation-only hearing focused on the Arizona Department of Child Safety (DCS) and related child welfare system issues; no bills were heard or voted on. Chair Blackman opened by stressing that the hearing was for fact-finding and data, not personal attacks, and Director Catherine Patak then presented DCS data on hotline volume, investigations, reunifications, adoptions, guardianships, extended foster care, and placement patterns. She said DCS investigated more than 43,000 cases in 2025, kept the out-of-home population relatively steady, and emphasized that Arizona places a high share of children with kin. She also highlighted a mismatch between the age of children entering care and the availability of foster homes willing to take older youth, and said behavioral health capacity, not DCS alone, is a major constraint. Patak discussed kinship supports, foster care reimbursement increases, the Family First Prevention Services Act, missing youth, congregate care reduction, and the department’s procurement process for group home beds. Members asked about kinship caregiver support, behavioral health access, reunification services, parental-rights terminations, Auditor General findings on notices and documentation, licensing and reimbursement rates, and why some relatives are not approved as placements. Patak said DCS is working on policy guidance, supervisor training, and improved supports, but that provider capacity and other system partners limit what DCS can do. Representative Gillette then gave a lengthy presentation focused on system design, procurement, funding flows, and congregate care. He argued that DCS, DES, and Access are structurally intertwined, that DCS’s procurement carve-out and capitated funding model create incentives tied to bed space and volume, and that fragmented oversight diffuses accountability. He cited budget figures, contract amendments, and audit concerns to argue that the system is overreliant on congregate care and that decision-making, medical referrals, and placement processes are too vague or too centralized in ways that can harm children and families. Gillette said his findings were based on contracts, interviews, and public records, and he indicated some material would be referred to special counsel. He also raised concerns about placement decisions, due process, and demographic disparities in congregate care outcomes. The chair cut off further questioning of Gillette for time and announced the committee would move on to the next presenter, Vice Chair Fink, with attorneys and other speakers to follow.

Transcript Highlights:

• They need to go contract this out. And who would they contract it to?
• I like to say we are a contracting agency.
• workers, contract capacity to help us process. applications.
• In terms of contract staff.
• Through contract.

Bills: HB150 , HB869 , HB876 , HB 1043 , HB1494 , HB1522 , HB150

Committee: House Delivery of Government Efficiency

Keywords: cybersecurity, state command, information resources, data protection, incident response, information technology, classification officer, job descriptions, state positions, competency-based, information sharing, government efficiency, public sector, private sector, distributed ledger, title registry, real estate, property liens, pilot program, healthcare

Transcript Highlights:

• ><c> DHS</c><00:27:10.679><c> are</c> Health plan contracts with DHS are Health plan contracts with DHS
• ><c> are</c><00:27:17.920><c> plan</c> Written into those contracts are plan Written into those contracts
• </c> and results from the prior contract and results from the prior contract year. year. year.
• </c> going forward to those contracts. going forward to those contracts.
• </c><01:26:00.640><c> if</c> or uh, termination of the contract if or uh, termination of the contract

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• </c> changes related to the contract changes related to the contract the<00:03:30.280><c> contract</c
• </c> hours per day of care the contract hours per day of care the contract increases<00:04:20.600><c>
• I hope you can conclude this contract in your final budget.
• I hope you can conclude this contract in your final budget.
• I hope you can conclude this contract in your final budget.

Bills: HF2367 , HF2319 , HF2523 , HF1742 , HF671 , HF2331 , HF2722 , HF2406 , HF1674

Committee: House Human Services Finance and Policy

Transcript Highlights:

• </c> that to our contracts. that to our contracts.
• But for contracted beds, so you gave us $5.5 million last year to contract for beds.
• do it. >> We're— contract.
• And then your that contract is how I read it here is that's a six-year contract. >> Okay.
• </c> contracted out, right? contracted out, right?

Transcript Highlights:

• Uh is when they put the contract<00:24:47.120><c> out,</c> contract out, contract out, uh uh uh they<
• , how the contract reads.
• </c> contract.
• They're on a separate contract contract.
• I'm a contracted &gt;&gt; I am a contractor. I'm a contracted consultant. consultant. consultant.

Summary: The committee received an update from Kentucky State Police on the SERVE radio system project, with David Barker and consultant Brandon Marshall explaining progress across multiple phases. They reported that Mayfield PD fire/EMS and Graves County Sheriff are fully operational on the system, Phase 2 is 77% complete with 48 existing sites finished and 13 new sites pending acquisition, and Phase 3A remains funded but not yet complete. They also said router upgrades are complete, radio dispatch positions and mobile/portable rollout are complete, and microwave replacement is nearly finished, with one remaining site delayed by weather. A major part of the discussion focused on why the project has taken so long and why equipment is being purchased before some sites are built. KSP said the project began as a radio system upgrade but expanded as they discovered additional infrastructure needs, including routers and microwave links that were not in the original scope. They explained that equipment must be purchased in advance to match versions and preserve warranty coverage, and that older existing tower sites are being refurbished rather than replaced to make use of existing public-safety infrastructure. They also said all expenditures are tracked in inventory and accounting records and that the project remains transparent. Members pressed for a master plan and timeline, with Representative Smith arguing the project needs clearer structure and fewer layers of decision-making. KSP acknowledged the need for a timeline, said they had plans but not a full timeline earlier, and stated that if the remaining funding is approved they expect to complete the remaining existing sites and 25 new sites by June 30, 2027. They said 56 new-build sites remain, identified as the yellow-dot sites on the maps, and that some sites may be able to use existing Demar/National Guard tower locations. The committee did not take a vote on the project during this portion of the meeting.

Transcript Highlights:

• In 2020, AFSC signed a contract establishing a general prohibition on contracting out of workers at UC
• This was for cafeteria workers who were contracted out by UC and shouldn't have been.
• department could trigger a blanket prohibition on same or similar contracted services at the entire
• And we know that contraction is going to continue to take place with oil refining.
• And we know that contraction is going to continue to take place with oil refining.

Committee: Senate Labor, Public Employment and Retirement

Transcript Highlights:

• So here's a slide that just shows the contracts that are completed and the contracts that are ongoing
• This is just a look at the contracts: Contract 5C, Oscar Renda.
• of those contracts were.
• So this is just a look at the contracts, Contract 5C, Oscar Renda.
• of those contracts were.

Committee: Joint Water Topics Overview Committee

Summary: The Water Topics Overview Committee met with a quorum and heard updates from Department of Water Resources Director Reese Haas and Lieutenant Governor/State Water Commission Chair Michelle Strinden on statewide water funding, major projects, and two legislative studies requested in House Bill 1020. Haas reviewed the status of the Northwest Area Water Supply and Southwest Pipeline projects, noting NAWS construction is expected to move water by fall and Southwest’s Hebron-Rugby expansion phase one is in final design with bids expected next month. He also summarized the department’s budget outlook, including Resources Trust Fund and Water Project Stabilization Fund balances, the effect of oil price volatility and stripper well exemptions on revenues, and the status of project buckets, carryover, lines of credit, regionalization, bid trends, and administrative/process updates. Committee members asked about project prioritization, municipal funding demand, maintenance expectations, replacement versus deferred maintenance, and whether the 2025 session may have underfunded municipal water supply needs. Haas said the commission uses the same high/medium/low prioritization process across all buckets, reviews maintenance plans as part of policy, and is seeing strong demand in the municipal bucket. He also explained that the department’s 14-year projection is based on the next seven legislative sessions and that the state faces a projected $1.3 billion shortfall over that period if all planned projects are funded under current assumptions. Deloitte then presented draft findings from the cost-share policy study and the governance/finance study. For cost share, Deloitte said the model shows a roughly $1.3 billion shortfall over 14 years and about $1.8 billion through 2031 under current policy, and offered seven options including tighter eligibility for replacement projects, state funding caps for the Mouse River and Red River Valley projects, a priority-based cost-share scale, timing shifts, use of existing lines of credit, and delayed reimbursement timing. For governance, Deloitte outlined draft options for Southwest, NAWS, and Red River ranging from maintaining current structures with stronger planning to transferring ownership or adding formal oversight, and recommended broader use of performance metrics, long-term financial planning, and clearer decision trees. No votes or formal actions were taken; the commission discussed the scenarios and the studies will return in revised form later in the spring.

Transcript Highlights:

• I'm not exactly sure when that contract is up, but we will be negotiating the contract with them Thank
• I'm not exactly sure when that contract is up, but we will be negotiating the contract with them based
• That’s probably going to be the advertising contract.
• That’s probably going to be the advertising contract.
• That's probably going to be the advertising contract.

Committee: All ALC-PEER

Summary: The committee reviewed a large slate of appropriation, transfer, and continuation requests across multiple sections. In Section B, members considered temporary FY27 appropriations for agencies including Health, DHS, Education, Treasury, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, Game and Fish, and others, covering items such as maternal health outreach, LIHEAP overpayment returns, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim claims, airport grants, conservation incentives, and emergency tower maintenance. Questions focused on the DHS senior services carry-forward and Treasury custodial banking fees tied to lower balances after COVID funds were spent down. All Section B items were approved. The committee then approved continuation requests, ARPA reallocations, and federal grant-related items in Sections B2, C1A, D1, D2, D3, E1, E2, E3, F1A, G1, H1A, I1A, J1/J2, K1/K2/K3, L1/L2, M1/M2, N1/N2, O1A, and P1A. These included university nursing and workforce programs, environmental and recycling grants, highway safety and emergency management grants, a transfer to the Merit Teacher Incentive Program, restricted reserve transfers for military, agriculture, UAPB, Game and Fish, and AETN, and various cash-fund and budget classification transfers. Several members asked for more detail on the State Police highway safety grant, VOCA victim compensation funding, the NSGP nonprofit security grant, and the Office of State Technology’s E-Rate-related transfer; agency officials explained the uses and noted that some funding levels depend on federal awards and collections. A notable discussion occurred on the Department of Commerce reallocation, which shifts 68 positions and $3 million among divisions to support an organizational realignment and avoid shortfalls. The committee also reviewed a state central services deduction request to keep the rate at 2%, a DHS overtime request for child protection caseloads, and a year-end adjustments request authorizing up to $1 million in temporary actions to close FY26 books without disrupting payroll or vendor payments. Most items were approved or, in some sections, simply reviewed without objection. The meeting adjourned after completing the agenda.

Transcript Highlights:

• And these data centers write long-term contracts to do refurbishment.
• So what this amendment does is it recognizes those long-term contracts and it continues the exemption
• to get through those contract periods.
• to any contracts that are written after July 1, 2026.
• It says even if you have contracts, even if you have contracts, even if you have contracts, even... because

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, juice grapes, agriculture, commerce, state regulation, market access, fire safety, insurance incentives, best practices, community protection, voluntary measures, mortgage modification

Transcript Highlights:

• Because I learned in the contract that anything agreed to that is not in the contract never really happened
• It also was a non-disclosure contract.
• On one company, they signed contracts with Galehead.
• They sold their contracts to Treaty Oak, and I don't know whose hands those contracts are in now.
• They only study the people who signed the contract.

Summary: The House Utilities Committee resumed hearing on House Bills 2402 and 2816, which address utility-scale solar development. The chair asked witnesses to keep comments to informational purposes, and testimony focused on setbacks, taxation, land conversion caps, county authority, decommissioning, and impacts on neighboring landowners and rural communities. Several witnesses said they supported solar in limited settings such as rooftops or industrial sites, but opposed or wanted changes to the bills’ treatment of agricultural land, especially the proposed 4% cap on cropland conversion and the 500-foot setback from homes. Testimony from landowners and farm groups emphasized concerns about property rights, viewshed impacts, fire risk, drainage and floodplain issues, and the loss of agricultural tax base and local economic activity. They argued the proposed $2,500 per megawatt tax was too low and suggested higher rates, with some recommending $6,000 per megawatt or more, along with decommissioning requirements and stronger county-level protections. A Renew Missouri representative supported much of the bill but preferred a smaller setback and raised constitutional concerns about changing solar land from agricultural to commercial assessment. Other witnesses, including a county commissioner, described local regulations already in place in some counties and asked for clearer statewide standards. Industry and utility representatives said the legislation was generally workable but needed further discussion on setbacks and property tax treatment. Clean Grid Alliance and related witnesses argued that tax comparisons with other states should account for total tax burden, not just nameplate taxes, and said higher taxes would raise electricity costs for consumers. Ameren Missouri said it was acceptable with most provisions, but cautioned against overly aggressive real-property assessments and noted its current and planned solar buildout. The hearing ended without a vote; the committee adjourned after taking testimony on both bills.

Transcript Highlights:

• , we uh allowed for a million dollars in each fiscal year to support additional contracted services to
• services to conduct uh contracted services to conduct uh certification<00:02:33.120><c> surveys</c><
• So we do were no uh contract surveyors.
• :31.360><c> outside</c><00:30:31.679><c> agency</c> uh contract agency, an outside agency uh contract
• </c><00:45:01.680><c> for</c> go to market, bid for contracts for go to market, bid for contracts for

Summary: The Budget Review Subcommittee on Health and Human Services met to review budget items carved out in the prior session budget, including long-term care surveyor contracts, funding for local health departments, and expansion of the central laboratory. The committee approved the June 4 minutes and then heard an update from the Office of Inspector General’s Division of Health Care on long-term care certification surveys and complaint investigations. Officials said the $1 million annual appropriation for contracted survey work, along with salary increases and other resources, helped the state reduce its backlog. They reported that Kentucky completed 101 long-term care certification surveys in fiscal year 2024, up from 28 in fiscal year 2023, and had completed 186 surveys by July 7, 2025, with a goal of 40 to 50 more before the end of fiscal year 2025. Outstanding complaints fell from 1,565 at the end of fiscal year 2024 to 695 by July 7, 2025, and outstanding priority-one or immediate-jeopardy complaints were reduced to zero. Members asked about the definition of priority-one cases, survey timing, the number of facilities still overdue, vacancy rates, federal funding reliance, and the use of contract surveyors. Officials said priority-one cases involve serious harm or high risk of harm, that surveys are required within a 12- to 15.7-month window, and that the agency now has 40 contract surveyors and an outside team option. Several members praised the progress but warned that delays in surveys can endanger residents and urged continued funding and monitoring. The committee then began hearing from Mike Tuggle of the Department of Public Health on the Public Health Transformation Initiative, with Tuggle noting the legislation’s importance to public health financing. The transcript cuts off as he began his remarks.

Transcript Highlights:

• And the company that they contract with is called Therapy Log.
• .the board some concerns when it comes to the nature of contracting with the state.
• IRS law says that contract labor, the entity contracting with someone, cannot micromanage the day-to-day
• I believe it would be the state would contract out.
• This bill talks about the contracting abilities of parties to negotiate what prices are.

Committee: House Health and Mental Health

Summary: The committee first met in executive session and approved a combined House Committee Substitute for House Bills 2642, 2296, 1996, and 1680 on a 15-0 vote after adopting a committee amendment and substitute. It then adopted a substitute for House Bill 2596, which expanded access for sole proprietors with at least one common law employee and their dependents, and passed that bill do pass by a 15-0 vote. The committee then heard several health-related bills. House Bills 2194, 2349, 1826, and 2560 focused on expanding epinephrine access in schools, child care facilities, nursing homes, and first responder settings to include nasal sprays and other delivery systems, with testimony emphasizing the need for easier administration, training, and broader school nurse support. House Bill 1827 would add occupational therapists to the list of professionals who can certify disability parking placards and plates, with supporters saying OTs already perform the functional assessments needed. House Bill 1783 would let the Department of Health and Senior Services contract with nonprofit public health institutes to help administer federal public health grants and reduce lapsed funds; supporters said the state lacks staffing capacity, while some members raised concerns about oversight and fraud. Finally, Representative Peters presented House Bill 2372, a large omnibus health bill combining many previously heard measures, including epinephrine delivery system updates, pseudoephedrine purchase limit changes, doula participation in Mo HealthNet, telehealth, workplace violence signage, long-term care inspection changes, RX CARES sunset removal, 340B language, anesthesia time protections, and other provisions. Support came from numerous medical, nursing, pharmacy, public health, and provider groups, while opposition focused mainly on the 340B provisions, non-opioid alternative language, anesthesia contracting language, and telehealth standards, arguing those sections needed separate consideration and stronger transparency safeguards.

Transcript Highlights:

• When you turn 18, you can sign contracts, vote, join the military.
• When you turn 18, you can sign contracts, vote, join the military.
• The base contract for this service has not increased since 2009.
• DCYI. welfare system to contract for the operation of the program.
• and to assess the measures included in each contract.

Bills: SB5911 , SB5940 , SB5942 , SB5957

Committee: Senate Human Services

Keywords: children, youth, financial stability, care services, department of children and families, housing assistance, foster care, pilot program, social services, accountability, family services, state department, child welfare, homeless youth, youth homelessness, runaway youth, young adult homelessness, housing instability, family reunification, family stability

Transcript Highlights:

• And one of them is around contract assistance.
• The state built an AI assistant to support contract specialists.
• It's providing access to the contracts and procurement desk manual.
• It's been architected to not access any external systems, contract or vendor information.
• Contract specialists are now able to focus on more valuable work, like doing contract analysis, vendor

Committee: House Technology, Economic Development, & Veterans

Transcript Highlights:

• </c> sometimes at the state, uh, contracting sometimes at the state, uh, contracting for<00:30:12.480
• </c><00:30:34.640><c> with</c> bit more nimble and contract with bit more nimble and contract with individuals
• authorities that be to make those contracts work.
• Uh, this only allows us to more quickly contract with small dollar amount contracts.
• Uh, this only allows us to more quickly contract with small dollar amount contracts.

Bills: HF1007 , HF1152 , HF1671 , HF2258

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Keywords: tourism, World Junior Hockey Championships, funding, economic impact, sports events, Minnesota, economic development, livability, marketing, partnerships, labor and industry, electrical licensing, electrical inspection, continuing education, online course approval, Internet continuing education, power limited technician, maintenance electrician, master electrician, technology circuits

Transcript Highlights:

• We do know through our contracts, because they have to to have a contract to receive the funding.
• So our Medicaid contracting team can tell you who's contracted, but they can kind of take homes online
• What we did do when we negotiated this contract originally in 2019 is we put in the contract that the
• Your agency so I were they contracted to a contract I most them are FTEs.
• Second contract is met.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• contract, and we have regional center performance measures.
• The costs of these contracts go up.
• And Amy, are these contract reviews by the board slowing down the process to contract with these vendors
• And Amy, are these contract reviews by the board slowing down the process to contract with these vendors
• No, contract with the consultant. Oh, the actual contract with them?

Transcript Highlights:

• </c><00:19:27.200><c> are</c> collect and most of those contracts are collect and most of those contracts
• </c><00:31:45.279><c> with</c> state level and in our contracts with state level and in our contracts
• In terms of contract with the... Sure.
• Uh, the other provider types are the... contract around $34 million of a buy or contract around $34 million
• And so we actually reviewed 11 contracts.

Summary: The Medicaid Oversight and Advisory Board meeting began with a roll call and approval of the October 7 meeting minutes. The chair then reordered the agenda to hear the item on Medicaid reimbursement rates and network adequacy first because of scheduling issues. Dr. Steve Robertson of the Kentucky Dental Association was sworn in and testified at length about Kentucky’s dental Medicaid program, arguing that reimbursement rates are unsustainably low, have been largely flat for decades, and are often below the cost of providing care. He said Kentucky ranks near the bottom nationally in oral health, dental Medicaid rates are often 60% or less of commercial rates, and the program’s share of the Medicaid budget has effectively remained around 2% despite growth in enrollment and services. Dr. Robertson said the low rates are contributing to provider losses, rural access gaps, longer wait times, dental deserts, and greater use of emergency rooms for preventable dental problems. He cited examples of office costs exceeding reimbursement for basic procedures, noted that many dentists are small private businesses, and said the state is struggling to recruit and retain dentists because of low payment levels and high student debt. He also pointed to disparities with neighboring states and said recent increases in some oral surgery and cleaning codes were not enough to address the broader problem. His recommendations included completing the rebasing study, increasing dental reimbursement in the upcoming budget, tying future reviews to inflation and cost data, aligning benchmarks, and prioritizing preventive and restorative care to improve workforce stability and access. Board members asked about the size of the needed increase, the effect of private insurance on dental practice finances, and what a new dentist might expect to earn. Dr. Robertson said the association is working on an appropriations request and that private insurance pressures are part of the problem as well, since many plans are HMOs or PPOs with limited provider control over rates. He also said the association can no longer conduct reimbursement surveys because of FTC restrictions, but would try to obtain current ADA data. In response to questions about the future of the program, he warned that without significant changes it could become unsustainable and cited Ohio and Missouri as examples where higher reimbursement improved provider participation and access. The board then heard from Mr. Bowman of Baldwin Consulting, who discussed outpatient behavioral health providers, including ABA therapy and mental health/substance use disorder services. He said these providers face similar issues of rising costs, flat reimbursement, and access problems. He reviewed Kentucky’s network adequacy standards, including travel-time standards, 30-day appointment limits, and newer federal requirements that will require services within 10 business days by 2029. He said wait times for outpatient behavioral health, especially children’s services and ABA, have grown substantially, sometimes to more than a year, and emphasized that the Medicaid department must enforce these standards.

Transcript Highlights:

• These are the ones that we can contract directly with, bypassing the grant process, and we can go out
• These are the ones that we can contract directly with, bypassing the grant process, and we can go out
• It became unsafe, and one of the state-contracted crews worked on this for us.
• It became unsafe, and one of the state-contracted crews worked on this for us.
• This is that previous slide... ...and one of the state-contracted crews worked on this for us.

Committee: Joint Arizona Off-Highway Vehicle Study Committee

Summary: The Arizona Off-Highway Vehicle Study Committee met with a quorum and heard opening remarks from the chair and members emphasizing the need to balance OHV recreation with safety, land stewardship, and coordination among users, agencies, and law enforcement. The chair described recent field observations near Sheep’s Bridge as an example of mixed use on public lands and framed the committee’s work as continuing efforts from prior years to improve mitigation and stakeholder cooperation. Arizona State Parks and Trails presented on the OHV fund and grant program. The agency explained the revenue split among Parks, Game and Fish, and State Land, and reported current fund balances, pending awards, and grant obligations. Officials said they had tightened grant oversight by requiring annual reporting and closing out long-running grants, which returned nearly $4 million to the fund. They also described eliminating informal grant “buckets” so law enforcement, education, mitigation, and trail-related projects compete under the same priorities. A major focus was the new mitigation working group created after a multi-agency call with federal, state, and local land managers. The agency said the group is stakeholder-driven and intended to speed up mitigation projects, including trail maintenance and erosion control, using both grants and contracted crews. Examples included fencing and signage in Bulldog Canyon, a safety and erosion project at Charleau Gap, a culvert project on Coronado National Forest, and a pending Windmill Mountain Ranch project. Officials also reported that law enforcement demand is rising sharply, that match requirements were removed for law enforcement grants, and that grant requests can now extend up to $750,000 over multiple years to help counties hire and retain officers. Members generally supported the changes and asked about long-term funding needs, with the agency saying demand is likely to continue growing and that priorities have shifted toward law enforcement, education, and mitigation over new trail construction.