Transcript Highlights:

• Staff said they did not have an answer for that.
• Staff answered that there were two.
• Staff began explaining that this contract was the platform where the tools were housed and that staff
• Staff responded that on May 31, Evident Change could turn the system off, and the staff would not be
• Staff said that was correct.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee reviewed three DHS service contracts: a $690,000-plus sole-source contract for DCFS with Evident Change for maintenance and operation of the Child Welfare Structured Decision-Making Assessment tools; a $1.2 million contract with Sifter Solutions for a SNAP waiver compliance solution and related app; and a $156,000 contract with Samaritan Integrative Services for psychiatric services at the Southeast Arkansas Human Development Center. Staff said the Evident Change contract was needed to keep daily safety risk assessments, case planning, and reunification tools functioning, and that the vendor’s proprietary system made it sole source. Members questioned DHS about reliance on the vendor, the lack of an off-ramp, whether the state was paying more or less annually, and why the contracts were not aligned on the same cycle. DHS and the vendor said the new Evident Change contract was limited to maintenance and operations, that no additional services or employees were being added, and that the broader CQI/review contract would come up separately later. For the SNAP waiver contract, DHS explained that the waiver is intended to exclude certain unhealthy foods from SNAP purchases to improve nutritional value, and that Sifter Solutions would provide a dynamic list for retailers and an app for clients to check products by barcode. DHS said the contract is sole source because it is tied to the waiver implementation and because the vendor can provide the needed dynamic list and education features. Staff said the contract would be funded with remaining federal SNAP Nutrition Education dollars that would otherwise revert to the federal government, and that the University of Pennsylvania would conduct the evaluation at no cost. Members asked about the public benefit, future renewals, and whether the state would own the application; DHS said the two-year term was designed to match the waiver period and allow time to reassess future procurement options. Members also asked about the nutrition education component, and DHS said it is developing videos with a nutritionist on preparing budget-friendly healthy meals and plans to link them to the app and website. After discussion, no objections were raised, and the items were reported as reviewed. The meeting then adjourned.

Transcript Highlights:

• One staff note, please, Mayor. Okay. One staff note, please.
• Staff? Please. So, Mr.
• Staff note, real quick, just to kind of give you a little background here: I had staff go back because
• I have a staff note, please. Yes.
• Actually, we decreased our staff.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior meeting minutes and then received updates on delinquent water and sewer reports, including seven new reinstatements and a reduction to four remaining delinquent filers. Staff also reported on municipal accounting code noncompliance, removing Denning and Gum Springs from the 60-day clock after improved records were verified, and presenting repeat findings for Fargo, Lead Hill, Alma, Jericho, and Haynes. Members discussed repeated audit problems, the length of time some issues had persisted, and whether towns should be given additional time or face stronger action; motions were made and adopted to place some entities on a 60-day clock or defer action to later meetings. For Fargo and Alma, staff described extensive repeat accounting deficiencies, including missing budgets, bank reconciliations, financial statements, receipts, journals, and supporting documentation. Fargo’s mayor said the town had been understaffed and was beginning to improve its office systems; the committee voted to defer the matter for 60 days and file the report. Alma’s officials said they were trying to correct water audit and accounting issues, and the committee likewise deferred the matter to the August meeting while warning that water-audit delays could jeopardize turnback funds. The committee then reviewed misuse-of-street-funds findings for Jericho and Haynes. Jericho’s police chief and officials explained that traffic fines, drug-related arrests, and other citations had pushed the town over the statutory threshold, while staff clarified that the speed-trap calculation excludes certain add-on fines and is referred to the prosecuting attorney for any action. Haynes officials said repayment problems stemmed from lost revenue and staffing changes, including the loss of the police department, but staff reported the town remained behind on its repayment plan and also owed the IRS. The committee voted to defer the Haynes matter to September and to defer Jericho as well, with members emphasizing the need for consistency and possible broader legislative review of small-town viability. A special report on the Pulaski County Regional Solid Waste Management District drew substantial discussion. Staff cited findings involving board approval of payroll and contracts, credit card documentation, car allowances and personal vehicle use, competitive bidding, and unusually high advertising spending, as well as the sale of trailers and other equipment at low prices. The district director said the board had delegated authority for many expenditures, that personal use was reported for tax purposes, and that advertising was necessary to educate the public about recycling. Members questioned the procurement and disposal decisions and the size of the advertising budget; after discussion, the committee deferred the report to September and asked the director to return. The meeting also included brief deferred reports on Biggers, Gilmore, and Holly Grove, which were filed after local officials described ongoing efforts to resolve long-standing audit and tax issues.

Transcript Highlights:

• A number of staff reports to share.
• assessing and reassessing and seeing where we can shuffle staff around to see where additional staff
• So there's a dedicated team of LCS drafting staff, proofing staff, word processing, in addition to the
• for staff and legislators alike, and also all the requesting entities.
• , such as Legislative Finance Committee staff and the standing finance committee staff, with the data

Committee: House Legislative Council

Transcript Highlights:

• I want to thank committee staff, who I know work very hard.
• It's not going to faculty; it's going to staff.
• Like, that's for staff. I can't imagine that, but…” “Or staff.
• Privacy Committee staff as well.
• To Kevin and the Assembly Higher Education Committee staff and to the Privacy Committee staff as well

Summary: The Assembly Committee on Higher Education and the Assembly Privacy and Consumer Protection Committee held an oversight hearing on the California State University’s AI-empowered initiative, including the systemwide rollout of ChatGPT EDU and broader AI integration across CSU campuses. Opening remarks emphasized both the promise of AI for student success, workforce preparation, and access, and the need to address risks such as bias, privacy, misinformation, environmental impacts, and mental health harms. CSU representatives said the initiative grew out of Academic Senate recommendations and a systemwide generative AI committee, and that the goal was to provide equitable access, training, governance, and workforce alignment across the 23-campus system. CSU officials described systemwide contracts for AI tools, the AI Commons training hub, and faculty grant programs supporting AI-related curriculum innovation. They said more than 93,000 ChatGPT EDU accounts had been activated, over 4,300 faculty had taken voluntary training, and $3 million had been awarded to 63 faculty-led projects from more than 400 submissions. San Jose State University highlighted its own AI-focused programs, courses, orientation training, faculty fellows, student ambassadors, and interdisciplinary efforts to build AI literacy and responsible use into instruction and co-curricular programs. CSU also said it was tracking metrics on adoption, academic outcomes, workforce outcomes, and environmental impacts. Faculty, staff, and student representatives welcomed the educational potential of AI but raised concerns about the rollout, saying it had moved quickly and without enough consultation or consistent systemwide policy. They urged stronger protections for academic freedom, intellectual property, privacy, equity, and worker input, and warned about bias, surveillance, job displacement, and the environmental cost of AI. Legislators pressed CSU and OpenAI representatives on training requirements, data privacy, bias reporting, discipline for misuse, liability, sycophancy, and safeguards against harmful uses such as non-consensual imagery or self-harm-related interactions. CSU said interactions in the licensed tool are private, data are not used to train models, and campuses retain their own conduct processes; members also asked CSU to follow up on systemwide training, policy consistency, and additional safeguards.

Transcript Highlights:

• So Pete, would you like to introduce your staff? So Pete, would you like to introduce your staff?
• In drafting those comments, the staff In drafting those comments, the staff are here to help you and
• And the staff is well capable of performing this analysis.
• And the JLARC staff has... Fair summary? Yes.
• I understand that there's staff advised.

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizen Commission for Performance Measurement of Tax Preferences met on August 4, 2026, with all five commissioners present. The commission approved the May 26, 2026 minutes, welcomed new commissioner Diane Tabilius, and re-elected Andy Knopfsiger Meadows as chair and Dr. Sharon Keiko as vice chair. JLARC staff also introduced two Evans School interns who are assisting with preliminary research for the 2027 review cycle. JLARC presented preliminary findings on seven tax preference reviews, focusing most heavily on the Main Street communities credit, the Equitable Access to Credit Program, and the urban data center exemption. Staff concluded that the Main Street preference has helped increase the number of communities and businesses and recommended continuing it, while also recommending that DAHP collect more detailed and standardized business-count data. The Equitable Access to Credit Program was found to support underserved communities and was also recommended for continuation. The urban data center exemption was found to have been used only for refurbishment projects, not new construction, and staff recommended letting it expire; commissioners and Representative Paulette discussed the need for better performance measures, cost-per-job analysis, and clearer legislative intent language in tax preference statements. Staff then reviewed airplane modification, landfill biogas, automotive adaptive equipment, and housing for people with developmental disabilities. The airplane modification preference was found to likely support jobs and state tax revenue and was recommended for continuation. The landfill biogas preference was also recommended for continuation, with a suggestion for more detailed reporting on use and renewable natural gas production. The automotive adaptive equipment exemption was found to continue providing relief to disabled veterans and service members and was recommended for continuation, while the housing transfer exemption for adults with developmental disabilities had not been used and was recommended to expire. No public testimony was taken at this meeting, and the commission noted that public testimony would be heard at its September meeting before final comments are adopted in October.

Transcript Highlights:

• Finally, staff interviewed relevant KDE and KCSS staff and communicated findings prior to finalizing
• Finally, staff interviewed relevant KDE and KCSS staff and communicated findings prior to finalizing
• Finally, staff interviewed relevant KDE and KCSS staff and communicated findings prior to finalizing
• </c> assault on staff or security officers. assault on staff or security officers.
• </c> have staff just or sometimes they can't. have staff just or sometimes they can't.

Keywords: 958, all

Summary: The Education Assessment and Accountability Review Subcommittee received an Office of Education Accountability presentation on student discipline data in Kentucky schools for the 2024 school year. OEA said the study used Safe Schools data, educator and student surveys, site visits to 12 schools, and principal surveys. The report found that about 1 in 10 schools have major behavior-related challenges and up to one-third have at least moderate challenges, with the most common concerns varying by level: high schools cited vapes, cell phone misuse, apathy, and tardiness; middle schools cited apathy, vapes, and cell phone misuse; and elementary schools reported more extreme classroom behaviors such as throwing objects, overturning furniture, and screaming. OEA also noted that 14% of students had at least one behavior event in 2024, but repeated events were rare, and event rates alone do not reliably measure the severity of behavior problems in a school or district. The presentation emphasized that many disciplinary consequences do not align consistently with statutes or local expectations. OEA said law violations made up 19% of more than 250,000 recorded behavior events, while most were board violations, and that some serious incidents resulted in minimal consequences. The report highlighted concerns about weapons, threats, and assaults: only 9.2% of weapon events led to expulsion or alternative placement, few threats resulted in those outcomes, and fewer than 10% of assaults led to expulsion or alternative placement, including some first-degree assaults. OEA also said the Safe Schools data do not identify victims, limiting analysis of assaults on staff or students, and recommended clearer statutory definitions and better data reporting. A major theme was the difficulty schools face in addressing chronic disruption and severe behavior while complying with federal protections for students with disabilities. OEA said principals reported the biggest challenges were federal limits on disciplinary removals and a lack of alternative placement options. The report described variation among districts in how they implement federal requirements, with some administrators discouraging alternative placements or avoiding discipline because of perceived legal risks. Site visits found that many schools lacked chronic-disruption policies, and teachers often reported frustration with minimal consequences and repeated classroom removals. OEA recommended that KDE collect more information from educators, identify promising practices for alternative instructional settings, and develop clearer guidance and training. In discussion, committee members said the findings showed reporting gaps and resource strains, and OEA staff clarified that some underreporting reflects local discretion, while law violations should still be reported.

Transcript Highlights:

• The House and the Senate, and basically through your staff here at LRC and the staff at the Office of
• staff.
• in adjudication and six part-time staff in adjudication and six part-time staff<00:36:37.800><c> we<
• As I mentioned, we had the layoff of 49 staff, so what we're proposing is to add 25 additional staff
• </c><00:42:55.599><c> have</c> months uh several of those staff have months uh several of those staff

Keywords: 958, all

Summary: The House Budget Review Subcommittee on Primary and Secondary Education and Workforce Development received a presentation from Kentucky Department of Education officials on the final SEEK estimate for fiscal year 2025. Commissioner Robbie Fletcher, Matt Ross, and Chay Ritter explained that SEEK is developed through a consensus process with the Office of the State Budget Director using multiple models and district-level inputs, and that the estimate is a projection made well before actual data are available. They emphasized that the discussion was separate from the pending education-funding lawsuit and described SEEK as one part of a much larger K-12 budget picture. The presenters said the current SEEK estimate shows a statutory shortfall of about $14.7 million, or roughly 0.53% of the appropriation, with additional optional items that could bring the total to about $40.5 million if funds are available. They noted that prior years have sometimes produced excess funds, which are redirected according to budget language rather than automatically flowing back through SEEK. They also reviewed the main drivers of the estimate, including property assessments, average daily attendance, free lunch counts, exceptional child counts, home hospital, and limited English proficiency, and said property assessments have been especially volatile while exceptional child counts and ELL populations are difficult to predict. Members asked about why the estimate missed on some categories, especially special education and ELL, and whether district-level changes were being monitored closely enough. The presenters said KDE does monitor special education counts and will review larger districts and districts with unusual growth, and they acknowledged that exceptional child growth has been hard to forecast. Representative Bojanowski asked about the Cloverport virtual school, and staff said its growth was much larger than projected and accounted for a significant portion of the shortfall. Members also discussed the impact of property value growth, population shifts, illness, and legislative changes on SEEK projections. No vote or formal action was taken, and the meeting ended after questions and discussion.

Transcript Highlights:

• I have the best staff in the state.
• Usually, when you have support staff, it's two attorneys to one support staff. Why is that?
• So it's 30 support staff, 21 attorneys.
• We need more staff.
• So, our staff got paid.

Transcript Highlights:

• So we looked around at the staff.
• If you look at how many we have today, 4,856, 12% fewer staff today.
• As I said, again, our staff is the most important thing that we have.
• , chief of staff for the Office of Insurance Regulation.
• Is this any department bonuses for their staff?

Transcript Highlights:

• Staff are responsible for homes.
• Staff are individuals in the home.
• Often staff breaks, and time to eat.
• </c> staff are taken care of. staff are taken care of.
• </c> administration staff as we speak. administration staff as we speak.

Bills: HF4110 , HF4101 , HF4144 , HF3546

Committee: House Human Services Finance and Policy

Keywords: workplace regulations, employee rights, meal breaks, rest breaks, exemptions, medical assistance, data matching, eligibility, reporting, human services, assisted living, health regulations, inspection authority, vulnerable adults, local government, program integrity, high-risk providers, enrollment requirements, fraud prevention, compliance

Transcript Highlights:

• Um, and 5 additional FTEs for additional staff is adopted.
• Item 273,000 for staff merit increases under item 4 is adopted.
• Item 2, 238,000 for staff salary increases is adopted.
• Finally, at the top of page 20, item C maintain laboratory staff.
• Staff say don't have to move to sever it.

Bills: SB 1

Committee: Senate Finance

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Transcript Highlights:

• and probation staff.
• We have two audit staff right now.
• We need additional staff.
• We need additional accounting staff, audit staff, and oversight staff to be able to provide the appropriate
• Well, thank you, Chair and staff.

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard an overview from the Board of State and Community Corrections (BSCC) on its budget change proposal and grant administration. BSCC requested authority for 11 additional permanent positions to handle a workload that has nearly tripled over five to seven years, with more than 600 grant agreements and about $1.5 billion in grant funds in the field. The board also reported on its new In-Custody Death Review Division, which has collected data since July 2024 and received 136 jail death reports; staff said the division is still building out reviews and has identified overdose, natural causes, and suicide by hanging as the leading manners of death. Members raised concerns about family notification practices, oversight of local grants, and the impact of taking more administrative funds from local assistance, while the LAO and Department of Finance did not oppose the position request but urged correction of the administration’s Proposition 47 savings methodology before May Revision. The committee then reviewed CDCR’s overall budget and operations. Secretary Jeffrey Macomber described a relatively steady prison and parole population, ongoing structural budget pressures from retirement payouts, workers’ compensation, medical transport, violence, and aging facilities lacking air conditioning and ADA features. He emphasized rehabilitation, recidivism reduction, college programming, and the department’s 20-year infrastructure planning effort, while also defending the closure of the California Rehabilitation Center and warning that additional closures can increase overcrowding, double-celling, and waitlists for programming. Senators pressed CDCR on fiscal discipline, vacancy savings, staffing shortages in medical and mental health classifications, the use of tablets for incarcerated people, and community impacts from prison closures, including the Norco site. A separate item focused on CDCR’s request for $91 million ongoing for lump-sum leave payouts to separating correctional officers and nurses. CDCR said these costs had historically been covered by vacancy savings, but lower vacancy levels and facility closures have reduced that funding source. The LAO supported the funding only on a limited-term basis with reporting, arguing the need may change as the system reaches a new normal, and also urged the Legislature to scrutinize the broader structural shortfall and the Boston Consulting Group efficiency contract. Finance supported ongoing funding, saying the costs are recurring and vacancy savings are less reliable. The committee also discussed CDCR’s fall 2025 population projections, which forecast a 6.5% decline in the institution population and a 10.4% decline in parole over five years, while updating Proposition 36 assumptions based on actual admissions data. CDCR and Finance said the California Rehabilitation Center closure would generate savings and that no additional prison closure had been formally proposed, though the LAO argued the state could close another prison and recommended not funding certain Soledad projects unless another closure is identified.

Transcript Highlights:

• We were talking to staff there and also to young people.
• and in different ways than our staff do.
• and in different ways than our staff do.
• And on this slide is my staff. I want to... And on this slide is my staff.
• For the record, Will Tronson, staff for this committee.

Summary: The committee began with a Department of Corrections update focused on agency culture, staff safety, reentry, and health services. Secretary Tim Lang highlighted DOC’s “Washington Way” approach, expanded visitation reforms, safety summits, community-corrections sanction changes, education and transportation improvements, partial confinement expansion, and efforts to increase volunteer and peer-led programming. Assistant Secretaries Danielle Armbruster and David Flynn described progress on Pell Grant implementation, reentry transportation, partial confinement, behavioral health standards, HIPAA compliance, the 1115 Medicaid waiver, telehealth expansion, and budget requests for opioid use disorder treatment, close-custody capacity, and staffing relief. Members asked about veterans’ units, telehealth for substance use treatment, women’s placement on the east side, correctional industries, and firefighting training. The new Office of Correction Ombuds director, Jeremiah Bourgeois, then outlined the office’s mission and limited resources, saying he would focus on the most serious complaints and continue building accountability with DOC. He described recent OCO reports, including findings of excessive force at the women’s prison, and said DOC had agreed to implement all recommendations. He also noted a new process for referring possible criminal misconduct to DOC leadership and law enforcement. Committee members praised the DOC-OCO partnership and Bourgeois’s appointment. The committee then heard Senate Bill 5895, which would add a new basis for extraordinary medical placement when DOC cannot meet an incarcerated person’s basic medical care needs. Senator Saldana said the bill is intended to provide a compassionate, workable path for people with serious or end-of-life medical needs while maintaining public safety. Testifiers in support included family members, Disability Rights Washington, and the League of Women Voters, who said the current EMP process is too restrictive and rarely results in release. DOC testified that it supports the EMP framework but has concerns about the bill’s definition of “basic medical care.” A former DOC physician suggested extending the qualifying time period and adding “approximately” to the language. The committee also heard Senate Bill 5873, which would expand escorted leaves of absence to include reentry-focused outings and broaden the family definition for funeral or bedside visits. Senator Wilson said the bill is meant to support a “slow release” and better prepare people for community reentry. DOC supported the concept, and witnesses from public defense, DOC reentry, and Amend said escorted reentry outings are consistent with evidence-based and international correctional practices. Finally, the committee heard Senate Bill 5945, which would limit persistent offender sentencing to convictions occurring after age 18 and require resentencing for affected people. Supporters argued the bill aligns with youth brain-development research and would address racial disparities; opponents, including prosecutors, victim advocates, and sheriffs’ representatives, said it would reopen painful cases, undermine finality, and impose costs. The hearing on that bill was still underway when the transcript ended.

Transcript Highlights:

• Staff, if you would please start with Commerce, 2308.
• Questions for staff? Seeing none, no sponsor. We'll... Questions for staff?
• Questions for staff? Seeing none, 1237.
• Questions for staff? Seeing none, 1093.
• Questions for staff? Seeing none, 1160.

Summary: The committee heard staff presentations on a series of bills covering elections, education, firearms, housing, taxes, and health care. Measures discussed included HB 2308 on dental insurer ownership restrictions; SB 1126 on school cooperation with DCS investigations; SB 1210 on out-of-state online postsecondary registration; SCR 1006 on school restroom accommodations and pronoun/name use; and several election-related bills, including SB 1006 on campaign finance itemization thresholds, SB 1029 on procedures after a candidate’s death, SB 1038 on cast vote record transmission, SB 1057 on ballot-paper fraud countermeasures, and SB 1237 on consultation for election rulemaking. Other bills addressed diabetic coverage updates in HB 283, spousal maintenance guidelines in SB 1049, concealed weapons permit fees in SB 1053, firearm registries and merchant category codes in SB 1058, riot classification in SB 1093, drone restrictions near ticketed events in SB 1160, and lifetime injunctions for certain domestic violence-related aggravated harassment in SB 1211. Members asked several questions, especially about SB 1160’s one-mile drone restriction, whether it applied only to private drones, and how it would affect drone shows; staff said law enforcement drones were exempt and written consent from the event could allow other drones. There was also discussion of SB 1293, which would limit GPLIT revenue abatements so school district-designated revenues are not abated, and SB 1294, which would keep a destroyed property’s classification in place for up to five years or until its use changes, with members noting the bill would help owners rebuild after fires or other accidents. SB 1430, as amended, was described as a technical cleanup bill making clarifying changes and removing obsolete tax language. Most of the bills were identified as being on the third-read consent calendar, and no votes were taken in the excerpt. The committee appeared to move through the agenda without opposition testimony in the portion provided, with staff and one sponsor briefly explaining the diabetic coverage update as a way to modernize glucose monitoring and prevent long-term complications.

Transcript Highlights:

• My question is for staff.
• They wanted to have a celebration for the staff that was for the entire staff, and so that's why it was
• We'll ask you to get that with our staff, please. Okay.
• And if you do it on... ...celebration for all the staff.
• Staff recommends that these be filed en masse as reviewed.

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Summary: The committee met to review education audit reports and heard responses from several school districts with findings. Camden Fairview School District was cited for using operating funds for an end-of-year employee awards banquet and for unauthorized credit card charges that caused a small loss; district officials said the current administration had strengthened controls, stopped the banquet practice, and improved monthly credit card reconciliation. Members questioned whether the prior officials were still employed, whether the credit card issue was an outside hack, and how teacher appreciation could continue without using district funds. Forest City School District was cited for spending about $33,000 on an off-campus staff celebration and entertainment event; district representatives said the money came from long-standing Pepsi-related donation funds, that the event was intended to recognize staff and growth, and that they would change practices and receive training going forward. Members discussed whether those funds were private donations or operational funds, and staff said the district’s accounting treatment made them subject to the constitutional restriction at issue. The committee also reviewed several other findings. Conway School District was referred for an ongoing investigative report involving misuse of district funds and resources by former maintenance employees. Magnolia School District had undeposited activity funds totaling more than $21,000, tied to a resigned high school secretary and sponsor receipts not deposited. Westside School District had about $30,000 in credit card charges lacking documentation or business purpose, including charges by the superintendent, personal purchases, and items shipped to personal addresses; the matter was referred to the prosecuting attorney. Boonville School District was cited for paying a board member’s son more than the statutory limit for seasonal groundskeeping without the required exemption, and DESE later denied the exemption request. After discussing those cases, the committee filed the remaining eight findings en masse and then filed the 89 reports with no findings. Members noted that most school districts audited had clean reports and encouraged districts to continue good practices while learning from the findings discussed.

Transcript Highlights:

• My question is for staff.
• The staff obviously felt that it was an operational fund.
• They wanted to have a celebration for the staff that was for the entire staff, and so that's why it was
• We'll ask you to get that with our staff, please. Okay.
• And if you do it on... ...celebration for all the staff.

Committee: All LEGISLATIVE JOINT AUDITING-EDUCATIONAL INSTITUTIONS

Keywords: 1204, all

Transcript Highlights:

• And with that, would the staff please start with a roll call.
• Staff reported that this was going to save time.
• It's a portion of someone's staff time.
• Do you have the staff currently that could make that?
• We are both staff to the committee.

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

• What I always tell Jay and, you know, in working with staff is that I've... ...and working with staff
• So thanks again to legislative audit staff.
• And by that I mean, can we get staff to, or can we get the members of the committee to get to staff any
• Staff clear on that? Okay.
• Did staff look at anything like that as part of this review?

Committee: All LEGISLATIVE JOINT AUDITING

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

Transcript Highlights:

• Operations and grant management staff.
• Lippett, can you just tell us how we're doing with the nursing staff?
• and being able to have the nursing staff we need.
• call off, are sick, or if we're short on staff.
• That is in lieu of using contracted nursing staff.

Summary: The Joint Finance-Appropriations Committee heard budget presentations for the Idaho Military Division, the Division of Veterans Services, and PERSI. For the Military Division, analysts reviewed the agency’s structure, recent transfers of emergency medical services into the division, and the fiscal year 2027 request, which included hazardous materials response funding, a pay-parity adjustment for 223 state employees, a small enhancement for grant administration overhead, and rescissions tied to vacant positions and reduced tuition assistance and state match funding. General Donnellan said the division had absorbed the 3% rescission, but further cuts to state education assistance for Guardsmen would be concerning. Members also asked about the EMS transition, CEC-related pay parity, and the general’s military service. The committee then reviewed the Division of Veterans Services budget. Analysts described the state veterans homes, cemeteries, and veterans assistance programs, along with ongoing staffing challenges and the use of a temporary nursing pool to reduce reliance on contract nurses. Administrator Mark Champal said the division is making progress on staffing, expects to save nearly half a million dollars through the new pool, and continues to manage near-capacity homes while the new Boise veterans home is under construction. He also highlighted outreach efforts for homeless and vulnerable veterans, the division’s high satisfaction rates, and recent gains in benefits claims, education certifications, and community support connections. Finally, PERSI’s budget and operations were discussed. Analysts outlined the retirement system’s dedicated funding, the ongoing pension software upgrade, and requested one-time funding for the final year of that project, a continuity-of-operations and records management plan, and IT replacements. Director Mike Hampton reported strong investment returns, a funded ratio around 90%, and more than $1.3 billion in annual benefits paid. Committee members asked about retiree cost-of-living adjustments, the PERSI Choice 401 plan, the possibility of moving toward defined contribution or hybrid plans, and the meaning of “other” participating employers. Hampton said the board had recommended a retroactive retirement allowance adjustment through 2022, explained that PERSI’s structure supports retention, and noted that board meetings are now livestreamed. The committee adjourned until the next morning.

Transcript Highlights:

• Enforcement staff did not.
• So, staff recommends.
• Motion to adopt staff recommendations. Thank you. The staff recommendation is to deny the appeal.
• After discussions with TEC staff, staff recommends a full waiver for the July 2022 and July 2023 semi-annual
• I did also want to just take a moment to thank the staff, the legal staff. administrative staff who have

Keywords: Texas Ethics Commission, legislative recommendations, general counsel appointment, foreign lobbying, political contributions, quarterly meetings, public testimony, rule amendments

Summary: The meeting focused on the Texas Ethics Commission's (TEC) evaluation of legislative recommendations and personnel updates, including the appointment of a new general counsel and discussions about upcoming quarterly meetings. Commissioner Schmidt reported on the progress of various bills, including amendments to existing laws, the need for increased regulation on foreign lobbying, and the publication of new rules in the Texas Register. Public testimonies were heard regarding compliance issues and proposed changes in political contribution regulations. The Commission agreed to schedule further review on the legislative items discussed and the proposed rule amendments.