Transcript Highlights:

• Um this program has been credits.
• So these credits aren't free, though. Doesn't the public agency have to purchase these credits?
• </c> additional money to get those credits. additional money to get those credits.
• </c> credits. Actually, that's that's great. credits. Actually, that's that's great.
• </c> projects if the credits are depleted? projects if the credits are depleted?

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• ><c> tax</c><00:18:44.480><c> credits</c> issued, those tax credits issued, those tax credits [clears
• </c><01:53:14.400><c> is</c> the credit is the way the credit is the credit is the way the credit is
• </c> administering the credit. administering the credit.
• </c><02:04:16.719><c> someone</c> credit losses the credit and someone credit losses the credit and someone
• </c> credit in our system. credit in our system.

Committee: Senate Ways and Means

Transcript Highlights:

• We can monitor an audit should take.
• And so that amount is fully audits.
• And that is a this point is audit.
• </c> for us to take on additional audit for us to take on additional audit audits<02:05:54.400><c> and
• </c> audit, uh, the increase for the audits audit, uh, the increase for the audits that<02:24:33.680>

Committee: Senate State and Local Government

Transcript Highlights:

• But I also want to mention the renewable energy credits.
• But I also want to mention the renewable energy credits.
• But I also want to mention the renewable energy credits.
• But I also want to mention the renewable energy credits.
• </c> to mention the renewable energy credits to mention the renewable energy credits um<01:18:33.040>

Committee: House Capital Investment

Transcript Highlights:

• </c><00:12:39.040><c> And</c> credits to graduate is overwhelming.
• And credits to graduate is overwhelming.
• a part of the audit, the KDE audit<00:50:26.240><c> that</c><00:50:26.480><c> was</c><00:50:26.559><c
• </c> audit that was released in July of 2025. audit that was released in July of 2025.
• But I wanted to also mention the audit.

Summary: The Commission on Race and Access to Opportunity met in September 2025, established a quorum, introduced new member Larry Forester, and approved the minutes from the August 26 meeting. The main presentation came from Warren County Public Schools Superintendent Rob Clayton and Assistant Superintendent Sarah Johnson, who discussed the district’s work serving English language learners and multilingual students, including immigrant and refugee families. They said Warren County now serves roughly 5,500 multilingual students out of about 19,000 total, representing about 92 languages and 90 countries, with 57 certified multilingual teachers, a GO Center, migrant and refugee advocates, and the state’s first international high school. The presenters emphasized that the district welcomes immigrant families and that students and parents generally value public education, but they described major challenges tied to accountability and funding. They explained that multilingual students are tested after one year in the system, even though many need more time to become proficient in English and grade-level standards, and they argued that current graduation-rate rules can unfairly penalize schools when transient students enroll briefly and then leave. They also said the cost of serving this population has risen sharply, with special revenue and especially general-fund spending increasing substantially over the past decade, prompting the district to reallocate resources from EL teacher assistants toward translation technology and additional certified staff. Committee members asked questions about how long-term multilingual students compare with the general student body and whether the district’s data show similar graduation outcomes. Clayton said he did not have the specific comparison data at hand but believed students who stay K-12 generally reach proficiency. He and Johnson asked legislators to consider giving students more time before accountability measures apply and to shift some graduation accountability from individual schools to the district level for highly transient populations, while still maintaining accountability. No formal votes or legislative actions were taken beyond approval of the minutes.

Transcript Highlights:

• We got the line of credit for $8 million.
• Audit and grant management risk.
• Audit and grant management risk.
• Automated auditable workflows sharply reduce risk in audit findings and support ongoing eligibility for
• There’s also AI auditing that can be done.

Summary: The committee received several informational reports from NDIT and DPI. Justin Data reviewed the quarterly major IT project portfolio, noting the portfolio was slightly under budget and behind schedule overall, with three red schedule items: Bed Management System and Vital Records were essentially complete and being closed out, and the Roadway Capital Planning Project was delayed by vendor bug fixes after testing. He also summarized recent project startups and closeouts, including the Victim Notification System, Medicaid data exchange, Highway Patrol’s motor carrier permit system, and several completed HHS and RIMS projects. Members asked for follow-up on ADA compliance work, the public-facing RIO website, and the state’s mainframe retirement timeline, and staff agreed to provide updates later. Craig Falkley reported on coordination of services with political subdivisions and higher education, including StageNet, cybersecurity, radio/911 services, and PeopleSoft coordination. He also explained distributed ledger technology as a tool for transparency and fraud prevention, but said it is not widely used in state government and suggested the report be modernized to focus more broadly on emerging technologies such as AI and cybersecurity. The committee generally agreed that the topic should be updated. Chris Gurgan presented the mandatory cybersecurity incident reporting program created by HB 1314, explaining how agencies and political subdivisions report incidents through NDIT’s website or service desk. He said 77 incidents had been reported since 2021, 47 met the statutory definition, and most were phishing-related; most reported incidents were resolved, with one recent ransomware matter still open. He also reviewed notable incidents since the last report, including the PowerSchool compromise, a SimpleHelp intrusion at a school district, a court intrusion, a WSUS vulnerability, a business email compromise, and a recent ransomware incident involving a non-state critical infrastructure entity. Members asked about recovery of stolen funds, early warning signs, smishing, training, MFA, conditional access, and cybersecurity maturity assessments; Gurgan said the state uses MFA and conditional access, provides awareness training to state employees, and would return with more information on maturity assessments. Tony Ambrose then updated the committee on the K-12 student information system bridge project. He said district implementation of Infinite Campus had begun statewide, but the data migration vendor originally selected was terminated for poor performance and replaced by Aurora Educational Technology, which had experience with similar statewide migrations. He also said DPI is migrating special education data from Tynet into Infinite Campus, and that some SLDS-based tools such as e-transcripts and Choice Ready may not function exactly as they do now at July 1, requiring interim or alternative solutions. Members raised concerns about summer school disruptions, the timing of the cutover, and whether the new system would support existing reporting and transcript functions; DPI said it was working on identity, authentication, data-sharing agreements, and post-go-live integrations, and would continue to refine the plan beyond June 30.

Transcript Highlights:

• The results of the audit were quite focused.
• , this is not a gotcha audit, right?
• This audit was not a sunset review.
• This audit was not a sunset review.
• Although our previous audits of the authority have identified some issues... ...audits of the authority

Committee: Senate Senate Regulatory Affairs & Government Efficiency Committee of Reference

Transcript Highlights:

• That's why you saw the extension of the annexation sales tax credit a few years ago at the urging of
• cities to adopt, depending on the size of the annexed area, a 0.1 or 0.2 cent sales tax that is credited
• The federal emergency management agency FEMA audits local government compliance of the flood insurance
• And if they find Audits local government compliance with the flood insurance program.
• State agencies could be authorized and funded to audit local government administration and enforcement

Summary: The committee held a work session on local government issues, beginning with an update from the State Building Code Council on four legislatively mandated code amendments now in CR-102 rulemaking: temporary emergency shelters, reduced minimum dwelling unit size, multiplex housing up to three stories and six units, and single-exit apartment buildings up to six stories. Council staff also described a separate embodied-carbon appendix proposal that remains under public review, with testimony both supporting and opposing it. Members asked about the rationale for some of the code limits, including the restriction on connecting multiplex buildings. The committee then heard a panel on annexations from MRSC, Pierce County, and the Association of Washington Cities. Witnesses reviewed annexation methods, including petition, election, and interlocal agreement approaches, and said larger annexations are increasingly using interlocal agreements because they can address infrastructure, revenue sharing, and public process concerns. They described barriers such as inconsistent local standards, the cost of infrastructure, referendum risk, census requirements, and the difficulty of persuading residents and local officials to support annexation. Members asked about the five-year restriction on residential zoning changes in one annexation method and whether a hearing examiner could reduce political pressure on local decision-makers. A second panel discussed subdivision reform. The Master Builders Association urged raising the short-plat threshold within urban growth areas to 30 lots as a simpler first step, citing permitting delays and added housing costs. The City of Spokane described implementation problems with recent housing laws, including uncertainty about how to review plats under HB 1110, lot-splitting administration, and added notice requirements for unit lot subdivisions. AWC said there was broad agreement that subdivision decisions should be more administrative, but public hearings remained a point of disagreement. The committee also heard from FutureWise, the Washington State Association of Counties, and Lewis County on county development regulation and enforcement, with witnesses emphasizing underfunded code enforcement, inconsistent standards between counties and cities, and the need for better coordination, incentives, and possibly stronger enforcement tools. No votes were taken; the chair said the committee would continue working on possible solutions in future sessions.

Transcript Highlights:

• municipalities and counties; and engrossed House Bill 5653, to confirm the confidentiality of internal audit
• Engrossed House Bill 5653, to confirm the confidentiality of internal audit and other manuals, training
• municipalities and counties, and in grossed house bill 5653 to confirm the confidentiality of internal audit
• Engrossed House Bill 5653 to confirm the confidentiality of internal audit and other manuals, training
• Engrossed House Bill 5457, to allow partial credit.

Transcript Highlights:

• There's a local audit that is very perfunctory. Thank you. There's no state audit of this.
• Now, you have taken a look at the audits, supposedly detailed audits, which I strongly disagree with.
• "Being audited to ensure they are in compliance with the statute, correct?
• That's why there has to be state audits.
• And is that your audit from a few years ago?

Bills: SB39 , SB2129 , SB2141 , SB2246 , SB2323 , SB2439 , SB2722 , SB 39

Committee: Senate Transportation

Summary: The Senate Transportation Committee reconvened on SB 2722, as substituted by Senator Bettencourt, which would redirect a portion of Harris County Toll Road Authority surplus revenues to the City of Houston and impose audit and tax-rate penalty provisions. Houston Police Chief Noe Diaz and Fire Chief Thomas Munoz testified in support, arguing that Houston bears a large share of toll-road public safety burdens, citing thousands of police and fire responses on toll-road property and the need for compensation for emergency services. Bill King, testifying neutrally, said the toll authority generates large excess revenues and urged stronger oversight and clearer controls on how the money is spent. Opponents, including Harris County officials, business and neighborhood representatives, and toll-road critics, argued the bill would divert transportation dollars, create a precedent for taking toll revenues for general municipal use, and could worsen project delivery and incentives; several also questioned the accuracy and interpretation of the revenue figures and the lack of comparable audit requirements for the city. The committee took extensive testimony but left SB 2722 pending without a vote. The committee then heard SB 2129, which would increase fines for motorists who disregard railroad crossing gates or flaggers, and SB 2323, which would redact railroad crew members’ personal information from public accident reports. Both bills were presented as safety measures, with railroad labor testimony in support, and both were left pending after brief public testimony. The committee also heard SB 2141, a Zaffirini bill concerning specialty license plates for judges, with the substitute aimed at reducing security risks by changing how judges are identified on plates; it too was left pending. Finally, the committee heard SB 2439, another Zaffirini bill, described as a TDLR cleanup measure related to ATV and off-highway vehicle safety certification. The bill would abolish the current training and certification program, which supporters said was burdensome and underused given the small number of approved instructors statewide. With no significant opposition on the record, the committee closed testimony and left SB 2439 pending as well.

Transcript Highlights:

• Kentucky a lot of credit. Um as you all Kentucky a lot of credit.
• </c> Kuckians who belong to credit unions. Kuckians who belong to credit unions.
• The state credit union statute for The state credit union statute for credit<01:19:49.120><c> unions<
• </c><01:24:25.840><c> union</c> credit union or really any credit union credit union or really any credit
• union. credit units. credit units.

Summary: The committee met with a quorum, approved the September 16 minutes, and then received an update from Insurance Commissioner Sharon Clark and staff on the Department of Insurance. Clark reviewed department activity, including growth in premium volume and licensing, consumer complaints and recoveries, and a rise in fraud referrals. She said the department has 66 open fraud cases and described common schemes such as staged auto accidents, inflated repair or cleanup charges, and roofing scams. She also said the department’s investigators often prepare strong cases but face reluctance from local prosecutors, especially in Fayette and Jefferson counties, to pursue them. Clark reported favorable workers’ compensation news, saying rates will decrease 9.7% next year for the 20th straight year. She contrasted that with a difficult property insurance market driven by storms, reinsurance costs, inflation, labor shortages, and litigation, but said Kentucky’s market remains relatively stable, citing the Kentucky Fair Plan’s small number of policies. She then warned of significant 2026 health insurance premium increases on the exchange: 16.1% for Molina, 23% for Anthem, and 37% for WCare, after CareSource withdrew. She said the rates were reviewed by actuaries and found fair, but that the biggest pressure point is the scheduled expiration of enhanced premium tax credits, which she said could leave about 90% of exchange enrollees facing a compounded increase. Members questioned Clark about fraud prosecution, the number of people in commercial versus public coverage, and the impact of expiring subsidies. Clark said the prosecution issue is mainly with Commonwealth attorneys and that rural counties are more cooperative than urban ones. She also said the health market is individually rated and that older enrollees would be hit harder, while the loss of tax credits could push some people out of the marketplace. One member asked about the attorney general’s recent opinion on SB 188, the PBM bill; staff said attorneys were still reviewing it. Clark closed by noting that Kentucky’s fraud and towing/storage legislation has become a model for other states.

Transcript Highlights:

• When this debt goes to collections, it can damage credit for years, making it harder to secure housing
• Electronic or credit card transactions will be unaffected.
• This can introduce uncertainty into mortgage credit markets and how risk is priced.
• Rob Wilson, California's Credit Unions, here in respectful opposition. Thank you.
• I've met with credit unions. I've toured credit unions. I've talked with their fraud departments.

Committee: House Banking and Finance

Transcript Highlights:

• came in right after that because things were better and smoothed out, and you were able to get a tax credit
• You got a credit for that assessment that was paid on your homeowner's insurance.
• The new system will also allow Louisiana to conduct risk-limiting audits, which are considered the gold
• standard in verifying election results, and we'll conduct a risk-limiting audit after every election
• We do have one of the only statewide systems left that does not create a verified paper trail for auditing

Committee: House Appropriations

Summary: The committee heard a budget presentation for the Department of State. House Fiscal Division said the FY27 recommended budget is $128.6 million and 367 positions, with elections making up the largest share. Secretary of State Nancy Landry said the office is implementing Louisiana’s first closed party primary, continuing voter education efforts, and moving toward procurement of a new voting system that would produce a voter-verifiable paper ballot and support risk-limiting audits. Members asked about polling place confusion, machine replacement costs, election commissioner pay, and the cost of educating voters about the new primary system. Landry said polling places are not changing because of the new primary law, the new system is expected to cost about $100 million total, and a bill this session would raise election commissioner pay by $100 per day. Fiscal staff also estimated the closed primary law will add about $31.5 million in costs over five years, mostly from converting local elections to statewide elections and voter outreach. The committee then reviewed the Department of Veterans Affairs budget, which was presented at about $105.2 million with a mix of federal, state, self-generated, and interagency funds. The department said most costs are tied to personnel and veterans’ homes, and that the homes are funded largely by federal dollars plus self-generated revenue. Members focused heavily on delays in processing National Guard disability claims and payments to veterans. Representatives said constituents had waited about a year for claims to be resolved, while the department said it had increased staffing and was processing a backlog of more than 400 claims, but still had about $950,000 in approved claims awaiting funding. The department said the payout program is governed by statute and that additional supplemental funding has been requested. Members also discussed veterans’ home care, including how service-connected disability status affects eligibility and costs, and whether chronic wound care and related complications could increase long-term costs. The department said veterans with higher service-connected ratings receive care with federal support, while others pay fees. Several members urged the department to provide clearer timelines and better communication to claimants, and one member suggested a separate oversight hearing to address the disability claim process and any needed statutory changes. The committee adjourned after the presentations and questions.

Transcript Highlights:

• came in right after that because things were better and smoothed out, and you were able to get a tax credit
• You got a credit for that assessment that was paid on your homeowner's insurance.
• The new system will also allow Louisiana to conduct risk-limiting audits, which are considered the gold
• standard in verifying election results, and we'll conduct a risk-limiting audit after every election
• We do have one of the only statewide systems left that does not create a verified paper trail for auditing

Committee: House Appropriations

Transcript Highlights:

• proposes a practical and balanced accountability program by subjecting two school districts to a forensic audit
• Importantly, this credit is applied after any other applicable reductions under Chapter 49.
• The concept's not new; Texas already offers businesses ...a 1.75% credit for early sales tax payments
• Under House Bill 3, school districts also received a credit for early recapture payments.
• In the last two years, reinstating an optional 4% early payment credit for School districts that pay

Bills: HB 123 , HB5606 , HB549 , HB2757 , HB4359 , HB5381 , HB1939 , HB123

Committees: Senate Education , Senate Education K-16

Transcript Highlights:

• bill three oh seven the clerk will read the bill HB number three oh seven by the suit relating to credit
• This bill also extends the credit to time spent in jail awaiting trial.
• I take full credit. Congratulations on your first bill. Thank you. Mr. Schofield, for what purpose?
• For certain housing developments that receive an allocation of low-income housing tax credits or for
• by Bettencourt relating to the state oversight and county elections following the county election audit

Bills: HB14 , HJR31 , HB43 , HB18 , HB 106 , HB36 , HB26 , HB149 , HB 121 , HB206 , HB136 , HB3114 , HB2733 , HB1732 , HB3700 , HB467 , HB 1130 , HB1846 , HB1442 , HB 1147 , HB2176 , HB2701 , HB805 , HB2890 , HB 1154 , HB1644 , HB2118 , HB1718 , HB2488 , HB2596 , HB1971 , HB2468 , HB484 , HB2578 , HB3204 , HB 1041 , HB307 , HB685 , HB1710 , HB538 , HB2525 , HB3125 , HB2027 , HB2894 , HB3077 , HB3684 , HJR99 , HB1399 , HJR5 , HB1330 , HB2110 , HJR2 , HJR6 , HB1587 , HB14 , HJR31 , HB43 , HB18 , HB 106 , HB36 , HB26 , HB149 , HB 121 , HB206 , HB136 , HB3114 , HB2733 , HB1732 , HB3700 , HB467 , HB 1130 , HB1846 , HB1442 , HB 1147 , HB2176 , HB2701 , HB805 , HB2890 , HB 1154 , HB1644 , HB2118 , HB1718 , HB2488 , HB2596 , HB1971 , HB2468 , HB484 , HB2578 , HB3204 , HB 1041 , HB307 , HB685 , HB1710 , HB538 , HB2525 , HB3125 , HB2027 , HB2894 , HB3077 , HB3684

Transcript Highlights:

• This is our election process if we're going to audit the election.
• We need to going to audit the election.
• That they can actually get credit.
• We'll give you full credit for it.
• So, what this prevents is right credit.

Transcript Highlights:

• board on literally every single department that I've seen, including even as an example, we have an audit
• board on literally every single department that I've seen, including even as an example, we have an audit
• And, Chair, I would just add, just in terms of inspections, to give credit where credit is due, under
• Similarly, if a student left a program and then was able to transfer half of their credits that they
• So I think as a, I think the way that the program is. those credits.

Summary: The joint Sunset Review Oversight Hearing focused on the Bureau for Private Post-Secondary Education (BPPE) and its reauthorization, with committee chairs and members emphasizing the Bureau’s role in protecting students, overseeing private postsecondary schools, and responding to a changing federal higher education landscape. BPPE and the Department of Consumer Affairs reported that the Bureau has modernized data systems, improved enforcement, increased citations and inspections, reduced pending complaints, and is now meeting its statutory inspection mandate. They also said the Bureau faces a structural budget deficit and has reduced costs through staffing cuts, streamlined inspections, and shifting some student-relief functions to the Student Tuition Recovery Fund (STRF).

Transcript Highlights:

• Section two establishes that the credit would be 40% of the net tax capacity.
• Section two establishes that the credit would be 40% of the net tax capacity.
• </c> entirely offset the cost of the credit entirely offset the cost of the credit um<00:12:34.720><c
• ACC credit approach because my ACC credit approach because my understanding<00:19:25.039><c> of</c><00
• </c><00:27:47.159><c> would</c> forward the reparan buffer credit would forward the reparan buffer credit

Committee: Senate Taxes

Transcript Highlights:

• We at Post Audit got into this months ago because of the concerns of committee members and outside sources
• I do also want to make it clear there are times people may not understand the role of the Post Audit
• Outside audit costs that the bidders may be responsible for covering.
• Utilize audit clauses that define clear audit and investigatory rights.
• You want to audit everything and put everything on the table and wash your hands of it and start over

Committee: Senate Senate Committee on Post Audit and Oversight

Summary: The committee met to discuss MassDOT’s unsuccessful service plaza procurement, with Chair Montigny opening by stressing the committee’s investigative role, its refusal to take lobbyist calls or meetings, and its willingness to use subpoena power if needed. He said the committee was focused on understanding how the bid process unfolded, why the selected bid was far above the low bid, why the Capital Programs Committee did not vote on the matter, and what ex parte communications occurred. He also framed the issue as broader than one contract, criticizing procurement practices generally and noting future hearings on quasi-public entities and the Convention Center. Commonwealth Inspector General Jeffrey Shapiro testified that his office would issue an investigatory letter on the service plaza procurement in the coming weeks. He said the procurement was a major one—18 locations, nearly $1 billion in value, and a 35-year term—and that his office had reviewed the process, its design, and execution. Shapiro emphasized that the OIG looks beyond fraud to the totality of a procurement and contract management, and he outlined best practices for large public procurements: clear planning, transparent solicitation terms, defined evaluation criteria and weights, limited and explicit non-negotiable terms, conflict-of-interest controls, and strong contract management after award. He said the Commonwealth was fortunate the procurement was canceled because a contract of that size and duration should mitigate risk factors. Committee members then pressed Shapiro on broader procurement reform, including how to handle subjective criteria versus objective price comparisons, how to prevent ex parte communications, whether selection committees should be treated as public bodies subject to open meeting and records laws, and whether agencies should use outside experts or dedicated staff for major negotiations. Shapiro responded generally that agencies must define objectives and scoring before bids are opened, use forms that allow apples-to-apples comparisons, ensure boards understand their oversight duties, and think about enforcement and contract management from the start. The hearing ended with the chair saying the committee would continue its work and would hear from the Secretary of Transportation at a later date; the meeting adjourned at 4:12.