Transcript Highlights:

• So, if this bill simply said motor carrier safety improvement means any device, equipment, software,
• training, policy, program, or operational practice associated with the use of the device, equipment, software
• training policy, program or operational practice associated with the use of the device equipment, software

Summary: The Senate Committee on Transportation heard several bills, mostly local memorial highway designations and transportation-related regulatory measures. Senator Hinojosa presented SB 1351 to designate part of US 281 in Hidalgo County as the Jose Rodriguez Lua Memorial Highway in honor of a Border Patrol processing coordinator killed by a drunk driver; a family member testified emotionally in support, and the bill was left pending. The committee also heard and left pending SB 2245 on bonded titles for vehicles when a lienholder has gone out of business, SB 1568 on animal-friendly specialty license plates with a second “spay, neuter, adopt” plate, SB 2589 on handling closed county roads in Webb County, SB 1104 on allowing large retailers to use one fingerprinted employee of record across multiple Texas locations, SB 1423 naming the Bill Stout Parkway in Longview, and SB 1931 naming part of US 83 the Rodolfo Valdez Memorial Highway. Most of these bills drew supportive testimony or were presented as local measures with no opposition. The committee also took up broader policy bills. SB 215 would create a digital identification program for Texas driver’s licenses and certain other licenses, but the sponsor said he was mainly laying the bill out for discussion and study; testimony was limited and the bill was left pending. SB 2707 would clarify that government entities such as TxDOT and the military remain exempt from fees on oversized/overweight permit authority, though a county commissioner raised questions about road-use impacts and fee revenue. SB 2807 drew the most discussion: it would prevent a motor carrier’s use of safety technology, training, and related practices from being used as evidence that an independent contractor is actually an employee. Supporters said the bill would encourage adoption of safety tools like cameras and braking systems without increasing misclassification risk, while opponents from the trial lawyers’ side warned the wording could conflict with existing labor-code definitions and create litigation. The sponsor and committee members discussed possible clarifying floor amendments. After public testimony, the committee voted on the pending bills. All measures were reported favorably on 6-0 votes, with committee substitutes adopted where applicable. SB 1351, SB 1423, SB 1568, SB 1931, SB 2245, SB 2589, SB 2707, SB 2807, and SB 2841 were all sent to the full Senate, and several were recommended for the local and uncontested calendar. The committee recessed subject to the call of the chair after completing the votes.

Transcript Highlights:

• We can also use it for equipment, as well as software, but there are also... in permissible uses of the
• 6.1 million. is for maintenance and operations and the second bucket for 3.2 million is for the software
• of about 7.75 million and another 2.67 million to address the operating cost which includes the software

Keywords: 988, house, all

Transcript Highlights:

• then he took a trademark out on it and began selling books, selling seats to. seminars and selling software
• I have a Texas engineering background and have worked with the Toll Road Authority for those years.

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

Keywords: commercial motor vehicle, truck liability, motor carrier, trucking, civil liability, respondeat superior, negligent entrustment, negligent maintenance, negligent loading, negligent repair, bifurcated trial, exemplary damages, punitive damages, personal injury, collision, employer liability, vicarious liability, Civil Practice and Remedies Code, Texas tort reform, commercial truck accident

Transcript Highlights:

• DIR remains the buyer of enterprise hardware and software.
• Just so I understand the two gentlemen in the middle, you all sell either services or software I don't
• Yes, we provide services, like I said, and software—ready-made software that can provide a lot of analysis
• It's not that we're going to write the software. We're going to go purchase it.

Bills: HB146, HB150, HB1500, HB1545, HB1562, HB2067, HB2520, HB2818, HB3214, HB3250, HB3466, HB3512, HB3623, HB4063, HB4395, HB4464, HB4668, HB4690, HB5331, HB3833

Keywords: HB 146, Texas Capitol, State Capitol, State Preservation Board, Congress Avenue, Travis County, traffic lanes, lane closure, road closure, municipal authority, local control, Capitol area, downtown Austin, special events, construction traffic plan, pedestrian safety, public works, transportation policy, government code chapter 443, cybersecurity

Summary: The committee took up several pending business items and reported a series of House bills out of committee, including HB 2467, HB 2468, HB 2518, HB 4310, HB 4386, HB 4490, HB 5323, and HB 149. Most of these were advanced on committee substitute motions and sent to the local and uncontested calendar or reported favorably to the full Senate. HB 2467 drew one nay vote, while the others were approved without opposition. HB 4310 and HB 4386 were described as committee-substitute versions with changes narrowing disclosure requirements and preserving attorney-client privilege in certain circumstances. A major portion of the meeting focused on HB 149, an AI governance bill. The substitute was explained as addressing biometric identifier capture and storage, exempting certain AI uses for security and fraud prevention, clarifying definitions, restricting AI systems that simulate explicit child sexual content, adjusting Attorney General investigative authority, refining sandbox program waivers, reducing Texas AI Council powers and membership, and adding DIR coordination provisions. The committee adopted the substitute and reported the bill favorably. The committee then heard extensive testimony on HB 1500, the DIR sunset bill. The author said the bill would continue DIR for 12 years, restructure its board, update advisory committees, require regular cybersecurity assessments and penetration testing for state agencies, improve IT procurement training, and transfer the e-grants program to the Comptroller. A Texas 2036 witness supported the bill as a way to strengthen governance, procurement, and cybersecurity. Members asked detailed questions about the bill’s structure and then left HB 1500 pending. The committee also heard a lengthy presentation on HB 150, which would create the Texas Cyber Command as a component of the University of Texas System, administratively attached to UTSA and located in San Antonio. The author argued the command would centralize cyber threat intelligence, incident response, and digital forensics, and would be able to support state and local entities, with optional services for local governments. Members raised concerns about university mission drift, governance, security, chain of command, procurement authority, gifts and donations, and civil liberties implications of proactive cyber monitoring. Witnesses from UTSA/NSCC and SecurityScorecard testified in support, emphasizing the security of the downtown San Antonio facility, the existing cyber ecosystem there, and the need for a dedicated cyber capability. The bill remained under discussion with no final committee action announced in the excerpt.

Transcript Highlights:

• usage of RGI software or similar software<01:24:25.920> system<01:24:26.560> which<01:
• 24:26.800> most software system which most software system which most municipalities<01:24:27.840
• Um these software systems are matters.
• Um these software systems are expensive<01:24:33.360> and<01:24:33.600> requires<01:24:
• system or someone on, have a software system or someone on, you<01:25:54.560> know,<01:25:55.280

Keywords: 1191, senate, all

Transcript Highlights:

• <01:55:18.239> called have a task management software called have a task management software
• I'd say around 30% are actually power users that are able to build agents within our software.
• <02:06:14.800> Uh output outputs of our software are.
• Uh output outputs of our software are.
• I think all of us have used mapping software, whether on our phones or GPSs, and that's AI, and we're

Keywords: 916, all

Transcript Highlights:

• I believe the voting works as the open-source software and therefore has capability of programming by
• You are correct that they have open-source software, but that doesn't mean that it is open source to
• I'm an engineer, and I can't stand something that's not working.
• I'm also a senior software analyst for a software company.
• What I'm saying is LHS Systems owns the proprietary software for the tabulators, at least for ASA.

Keywords: 1189, house, all

Transcript Highlights:

• We really have software now that does tracking of the vehicle from point of pickup to drop-off.
• We can validate that a ride took place with software that's out there and develop a single framework
• There is a software available now, and we've seen it, that actually does what we want to do with this
• now that does tracking of the software now that does tracking of the vehicle<00:24:30.600> from
• evaluate this uh there is a software evaluate this uh there is a software available<00:25:47.440

Keywords: 1187, senate, all

Transcript Highlights:

• So if you'll give us just a moment for staff to switch the software over, we will. Thank you.
• The committee will convene shortly. for staff to switch the software over. We will convene shortly.

Keywords: 914, all

Transcript Highlights:

• others and yourself, the Department of Revenue puts out guidance to TurboTax and all the computer software
• companies, and the CPAs use software too, right, to do all this stuff.

Keywords: 1182, all

Summary: The caucus focused on HB 2153, a tax conformity bill that would align Arizona statute with the Internal Revenue Code as of January 1, 2026, including retroactive provisions affecting tax year 2025. Staff explained that the bill excludes three federal provisions from H.R. 1: the additional $6,000 senior deduction, the increase in the state and local tax (SALT) deduction to $40,000, and the deduction for interest on new car loans. It also adds several Arizona-specific provisions, including a $6,000 deduction for certain retirement distributions for taxpayers age 65 or older, a $6,000 deduction for Roth IRA contributions, an increase in the dependent tax credit from $100 to $125, and a deduction for child and dependent care expenses above the federal credit. JLBC’s fiscal note was cited as a negative $441.3 million in year one, declining over the next two years. Chairman Livingston and other Republican members argued the bill was needed immediately because the Department of Revenue had already issued tentative forms assuming full conformity, creating confusion for taxpayers and businesses. They said the state needed a signed law as soon as possible to avoid amended returns, inconsistent filing rules, and uncertainty for small businesses. Livingston emphasized that the bill was intended to protect small businesses from having to keep two sets of books and said he was advising taxpayers not to file until the issue was resolved. Members also discussed the practical impact on small businesses, citing testimony that Arizona has about 700,000 small businesses employing well over a million people. Several exchanges clarified the difference between the governor’s November direction to the Department of Revenue and the bill before the committee. Staff explained that DOR normally assumes “simple conformity” and that the governor’s directive attempted to add “below-the-line” deductions through a worksheet, but that those items still require statutory authorization. Members said the governor’s action was confusing and characterized it as a press release rather than binding law. The committee also discussed the child care provisions, describing them as a federal-style deduction Arizona has not previously adopted and as one of the main new benefits in the bill. The caucus ended without a vote, and members were told the floor would begin at 10 a.m.

Transcript Highlights:

• He said that, at some point, software will solve that problem.
• Having been in the software sector, I agree that someday it might.

Bills: SB161, SB195, SB216, SB245, SB246, SB257, SB258, SB260, SB278, SB281, SB283, SB93, SB98, SB99, SB306, SB314, SB315

Keywords: vehicle safety, crash test, crashworthiness, NHTSA, National Highway Traffic Safety Administration, New Car Assessment Program, NCAP, motor vehicle safety standards, 49 CFR parts 571 and 572, THOR dummy, THOR-50M, THOR-05F, WorldSID, female crash test dummy, male crash test dummy, occupant protection, frontal impact, side impact, vehicle ratings, automotive safety

Transcript Highlights:

• I’m Danielle Shandon, Director of Finance for the state maintenance engineer for Do...
• 50.080> maintenance do alen ham the state uh maintenance do alen ham the state uh maintenance engineer
• 52.200> thank<00:21:52.400> you<00:21:52.799> Senator<00:21:53.120> Ros engineer
• for do thank you Senator Ros engineer for do thank you Senator Ros just<00:21:54.120> simply<
• I'll talk about some of the more important ones, because the CAP 95 allocation methodology software that

Keywords: 928, house, all

Summary: The Fiscal Committee met on January 30, 2025, and first organized itself by electing Senator Jim Gray as vice chair, electing Representative F as clerk, appointing Michael Caine as legislative budget assistant, and adopting the committee’s rules and procedures. The committee also adopted an amendment to the rules allowing audits to be automatically released to the public once placed on the Fiscal Committee agenda, with members discussing that the change would improve transparency and reduce paper handling. The minutes from the November 15, 2024 meeting were approved, with members who were absent abstaining. The committee then worked through a consent calendar and several individual items. It removed or noted withdrawals on a few items, including item 25004 for further discussion, item 25016 withdrawn by the Department of Education, item 257 removed by Representative F, and item 25001 removed under Tab 4. Item 25004, concerning the newborn screening program, prompted testimony from the Department of Health and Human Services explaining that the program is mandatory with an opt-out provision; officials said 99.2% of newborns were screened in 2023, meaning the opt-out rate was under 1%. The committee also approved item 25007, related to DHHS community health workers and telework policy, after hearing that the workers are not placed in schools and that DHHS follows statewide telework policy. On the regular calendar, the committee approved a Department of Administrative Services request to extend the release date for fiscal year 2024 numbers to March 31, and approved a Department of Fish and Game item. It also approved winter maintenance funding for the Department of Transportation after hearing that the $5.7 million request might not last through the winter if additional storms occur; DOT said even a small storm can cost more than $1 million and that crews are dispatched based on road conditions and supervisory judgment. The committee then approved items for the Judicial Council and the Office of Legislative Budget Assistant. The final discussion focused on the Health and Human Services dashboard and the Youth Development Center claims. DHHS acknowledged a data error in the APS client line and said Community Mental Health Center caseload data is still not fully accurate because two centers are undergoing EHR conversions. Members also asked about the low census at the Sununu Youth Development Center and about the process for managing future claims related to the YDC settlement fund. Witnesses from the Attorney General’s office said the fund is handled through a unique arrangement involving DOJ appropriations and judicial branch staff, that current judicial budget cuts are not yet affecting the litigation pace, and that the average resolution so far has been about $500,000, though future claims may vary. No votes were taken on the discussion items beyond the approvals noted above.

Transcript Highlights:

• The solution to this problem is smart permitting software that performs the necessary plan review and
• Thank you for clarifying that the permitting software would be free for municipalities to adopt.
• The software is still owned by NREL, and it's now licensed to a sort of quasi-public nonprofit called
• permitting requirement for the longest, we've seen some jurisdictions work with their ...incumbent software

Keywords: 995, all

Summary: The hearing focused broadly on solar policy and several related bills, especially S. 2269, S. 2270, H. 3520, H. 3521, and related measures on distributed energy resources, municipal solar caps, permitting reform, and tax credits. Testimony from the Air Force supported S. 2232, which would exempt federal military installations from renewable energy production caps and net metering limits to support energy resilience at bases like Hanscom. Most other witnesses argued that Massachusetts needs to speed up rooftop, municipal, and community solar deployment to address high electricity prices, federal tax credit rollbacks, grid reliability, and climate goals. A major theme was streamlining permitting through automated or “smart” solar permitting, including a statewide platform managed by DOER. Permit Power, SEIA, Vote Solar, 350 Mass, and others said current local permitting is fragmented and costly, and that instant permitting could reduce soft costs and speed installations. Several witnesses also urged changes to interconnection rules, including flexible interconnection, remote inspections, and faster utility approval timelines. Some speakers raised concerns about small towns lacking staff to meet short deadlines and suggested a state-hosted platform to reduce the burden on municipalities. Another major topic was lifting caps on solar deployment. Municipal officials from Lexington and Cambridge said the 10-megawatt municipal cap and regional caps are blocking shovel-ready projects and should be removed, including for behind-the-meter municipal solar and MBTA-community housing. Other witnesses described additional limits on project size, net metering, and residential tax credits, and called for making the state residential solar credit refundable and larger. Several speakers also supported virtual power plants, distributed energy resource targets, solar canopies, microgrids, and expanded access for affordable housing, tenants, and low- and moderate-income customers. No votes were taken. Committee members asked questions about permitting timelines, grid modernization, the rationale for caps, balcony solar, and interconnection delays, and witnesses said they would follow up with additional information where needed. The hearing ended with broad support from industry, municipal, environmental, and advocacy groups for advancing the solar and distributed energy bills, while some witnesses opposed provisions they viewed as overly restrictive, such as mandatory SMART participation for all solar projects.

Transcript Highlights:

• Genesis is a software service tool that streamlines and accelerates evacuation zone mapping and public
• Genesis is a software service tool that streamlines and accelerates evacuation zone mapping and public
• This request would provide PERS staff with the necessary software licenses and training to begin to become
• This request would provide PERS staff with the necessary software licenses and training to begin to begin

Keywords: 907, all

Summary: The Emergency Board met on June 17, 2026, and approved a series of subcommittee recommendations, mostly on consent, related to federal grant applications, agency funding adjustments, and position authority. Early actions included approval of four federal grant applications from natural resources agencies, three public safety grant applications, a one-time increase for Judicial Department court security, retroactive approval for an AmeriCorps volunteer-generation grant, and a $7.5 million allocation to Southern Oregon University from a special appropriation for short-term financial stability. Members supporting the SOU item emphasized the university’s structural deficits, declining enrollment, and the need for a long-term higher education plan; several members voted no or raised concerns about sustainability, but the motion passed. The board also approved a federal apprenticeship expansion grant for the Higher Education Coordinating Commission, a school nutrition equipment grant for the Department of Education, and an Oregon Health Authority request tied to Medicaid community engagement requirements under H.R. 1. Public safety items included funding for Oregon Military Department readiness facilities, a report on the stalled juvenile justice information system modernization project with a follow-up viability report due in 2026, and a statewide evacuation planning tool for emergency management. The evacuation tool drew strong support as a wildfire preparedness measure, with members noting it could significantly reduce alert times and save lives. A major point of debate was the Department of Justice request to add 16 permanent positions and increase other funds limitation for antitrust enforcement. Supporters argued the federal government has pulled back and Oregon needs capacity to pursue active cases and protect consumers; opponents objected to the process, the size of the expansion, and the incentive structure tied to settlements and awards. Despite those concerns, the motion passed. The board also approved Water Resources Department requests for the Water Well Abandonment, Repair and Replacement program, an assistant water master position in Washington County, and federal funding for Lower Umatilla Basin groundwater data collection. The water master item prompted questions about county cost shifts, but staff said the position would remain externally funded and would not be filled without those resources.

Transcript Highlights:

• we do here also is that we participate in an event called Capture the Flag, which is a specific software
• here also is that we do, we participate in an event called Capture the Flag, which is a specific software
• physical aspects of the cybersecurity portion and to guide students, and yes, it's not just the software
• And yes, it's not just the software side or the virtual side that we secure, but the physical components

Summary: The work session focused first on Washington’s apprenticeship system, especially building trades programs and support services. Labor and Industries staff explained how registered apprenticeship works in the state, including the role of the Washington State Apprenticeship and Training Council, the requirements for paid on-the-job training and classroom instruction, and the difference between apprenticeship and pre-apprenticeship. Panelists emphasized that apprenticeship is tied to actual jobs and training agents, and that many waitlists reflect a shortage of job openings and employer participation rather than a lack of interest. They also discussed youth apprenticeship, the growth of apprenticeship and pre-apprenticeship programs, and the use of Career Bridge and L&I’s database to help people find programs. Representatives asked whether the state should expand apprenticeship programs and how people can find openings. Speakers said more programs alone would not solve the backlog without more employers signing on as training agents and more apprenticeship utilization on projects. The panel also highlighted the Constructed Career Initiative, a grant-funded navigation and support program that helps people enter and stay in building trades apprenticeships through outreach, case management, and wraparound aid such as transportation, tools, and work clothes. A related nonprofit, Build Up, described similar support services, including prison-based boot and PPE programs and assistance for reentry participants. The panel said these services are especially important because apprentices often face unstable income, housing, food, and transportation barriers. The panel also discussed House Bill 2084 and the new Construction Training Pathway Oversight Committee, which is examining construction training in correctional facilities and how to create clearer pathways from prison-based training to apprenticeship, college, or work. Speakers said the committee is still in its early stages and will report to the legislature. The session ended with committee members thanking the panel and noting the importance of support services and referral networks for apprentices. The meeting then resumed at Renton Technical College, where college leaders and faculty discussed serving non-traditional students. The college reported strong enrollment growth, a median student age of 30, a diverse student body, and high job placement rates, while also noting significant budget cuts and program reductions from the prior year. Health care and early childhood education programs were highlighted, including efforts to expand access through hybrid scheduling, evening and Saturday classes, Spanish-language offerings, and in-person wraparound support for admissions, financial aid, and registration. Faculty said these changes were driven by student data and were aimed at helping working parents, English learners, and other non-traditional students complete credentials and enter family-wage careers.

Transcript Highlights:

• Buyer of enterprise hardware and software. The command sets the security specification.
• Just so I understand, the two gentlemen in the middle, y'all sell either services or software that have
• Yes, we provide services to, like I said, and software to ready-made software that can provide a lot

Bills: HB146, HB150, HB1500, HB1545, HB1562, HB2067, HB2520, HB2818, HB3214, HB3250, HB3466, HB3512, HB3623, HB4063, HB4395, HB4464, HB4668, HB4690, HB5331, HB3833, HB146, HB150

Keywords: HB 146, Texas Capitol, State Capitol, State Preservation Board, Congress Avenue, Travis County, traffic lanes, lane closure, road closure, municipal authority, local control, Capitol area, downtown Austin, special events, construction traffic plan, pedestrian safety, public works, transportation policy, government code chapter 443, cybersecurity

Transcript Highlights:

• We're not talking about regulating basic software applications or spreadsheets.
• the problem is that the current statute lags behind technological innovation and leaves AI-powered software
• Some people will have a contract that provides software, menus, and websites.
• So, you know, if it's a given kind of card and it's a seller... ...software who's got a 30% chargeback

Bills: SB231, SB584, SB600, SB668, SB841, SB986, SB1003, SB1244, SB1625, SB1960, SB1963, SB1964, SB2026, SB2056, SB2368

Keywords: temporary emergency electric energy facility, temporary generation, emergency power, backup generation, mobile generator, portable generator, grid resilience, power outage restoration, transmission and distribution utility, TDU, Public Utility Commission of Texas, PUCT, Utilities Code Section 39.918, competitive bidding, lease authorization, emergency procurement, bulk power system, locational marginal pricing, reliability model, black start

Transcript Highlights:

• there was a way, You know, I thought about her first because I thought if there was a way in this software
• Now, you know, we're going to have to have some software put in. Typed it all up.
• Now, you know, we're going to have to have some software put in and some of those questions.

Bills: HB2311, HB2371, HB2409, HB2410, HB2456, HB2457, HB4005

Keywords: artificial intelligence, disclosure requirements, data privacy, minor protection, online safety, HB2371, Arizona divorce, family law, dissolution of marriage, AI arbitration, AI-assisted arbitration, automated dispute resolution, online arbitration, binding determination, recommendation, superior court appeal, de novo review, marital dissolution, spousal consent, minor children

Summary: The committee met in a special morning session and first heard HB 2371, a pilot proposal to allow consenting divorcing parties without minor children to use AI-assisted arbitration in simple divorce cases. Rep. Martinez described it as a voluntary, fairness-focused tool for people who cannot afford lawyers, with the judge retaining final authority. Members raised concerns about the bill’s binding-language, privacy, and the need for clearer guardrails on assets and support, but the sponsor said amendments were welcome. The committee voted 7-0 to give HB 2371 a do pass recommendation. The committee then took up HB 2311, which requires conversational AI systems to notify minors they are interacting with AI, restrict sexual content, prohibit deceptive human impersonation, and require self-harm response protocols. Google testified in support, saying its Gemini product already uses similar safeguards and that the bill would set an industry-wide floor; a speaker also noted similar measures are being considered in several other states. After adopting a committee amendment clarifying customer-service AI and limiting developer liability, the committee voted 7-0 to recommend HB 2311 do pass as amended. Next, the committee heard HB 2409, creating a voluntary statewide summer AI education program focused on digital hygiene, civic integrity, privacy, media literacy, critical thinking, and algorithmic bias. Supporters argued Arizona needs to prepare residents for AI-driven job disruption and help people use the technology to become more self-sufficient, while opponents objected to the program’s funding and potential unfunded mandate to the education department. The bill passed 4-3. HB 2410, which would treat communications with AI as privileged like communications with human professionals, also passed after testimony from the sponsor and a criminal defense advocate who argued the measure would protect sensitive legal and personal conversations; the vote was 6-0 with one member present. The committee then approved HB 4005, requiring school districts and charter schools to provide instruction on ethical, moral, and educational uses of AI, by a 4-2-1 vote after some members said schools lacked resources and should not be mandated to add curriculum without funding. Finally, the committee considered HB 2456 and HB 2457, both related to small modular nuclear reactors and utility siting/streamlining for energy development tied to large power users. Supporters framed them as necessary for future energy demand, data centers, and economic growth, while opponents raised concerns about local zoning authority and environmental oversight. Both bills were amended and advanced on 4-3 votes, and the meeting adjourned after the final roll calls.

Transcript Highlights:

• Do you know how much... actually, let me back up, do you just pay for the software?
• For the online software used for conducting the online elections, how does it work?
• The third-party software company has to have an intricate knowledge of Chapter 209 of the Texas Property

Bills: HB 1087, HB2504, HB4113, HB5144, HB5146, HB5377, HB5543, SB140, SB264, SB1244, SB1343, SB2121, HR868

Keywords: property owners, board vacancy, special election, association governance, community management, property owners' association, resale certificate, fees, real estate regulation, homeowners, HB 4113, Texas Rising Star Program, child care, child-care providers, Texas Workforce Commission, TWC, safety barriers, crash-rated bollards, bollards, playground safety

Transcript Highlights:

• We have not come back to the legislature to ask for specific software or technology or things like that
• ><00:52:30.559> using<00:52:31.000> like<00:52:31.640> new<00:52:31.960> software
• <00:52:32.400> or and if you're using like new software or and if you're using like new software
• <00:53:06.079> or<00:53:06.319> technology ask for specific software or technology
• ask for specific software or technology or<00:53:07.160> things<00:53:07.400> like<00:53

Keywords: 1183, house

Summary: The committee approved the January 16, 2024 minutes without objection. Members then heard a presentation from the Office of the Legislative Auditor on its December 2024 performance audit of the Department of Human Services’ outstanding provider debt in Minnesota’s Medicaid fee-for-service program. Legislative Auditor Judy Randall said the audit was launched after the office noticed a large accounts receivable balance during the state financial statement audit and became concerned that DHS did not understand the extent of the overpayments, had poor data, and planned to forgo recovery of some recoverable balances. Deputy Legislative Auditor Lori Lyson explained that DHS had reported $51.7 million in provider debt across about 2,500 providers in fiscal year 2023, with testing focused on long-term care facilities and the largest balances. The audit concluded DHS did not comply with legal requirements and lacked adequate internal controls. Findings included that DHS had not attempted to recover more than $40 million since collection notices were last sent in 2015 and 2019; that the department planned to write off some balances under $1,000 and some older than six years despite the auditors’ view that at least some of that debt may still be recoverable; that DHS overstated accounts receivable in its financial reporting because it had not updated its allowance calculation since 2019; and that MMIS data were insufficient to verify balances, with 20 of 59 sampled providers not reconciling and many dates inaccurate. In response to member questions, the auditors said the overpayments appeared to be routine program adjustments rather than fraud, but the department could not explain many of them because detailed data are only retained for about three years. They also said they did not know which specific DHS leader approved not collecting the debt, and that responsibility for recovery appeared split between program and finance staff, with each pointing to the other. The auditors recommended DHS recover the debt where possible, improve internal controls, retain better documentation, ensure accurate financial reporting, and work with the legislature if needed to clarify recovery authority.