Transcript Highlights:

• They will then notify the fire enforcement agency.
• The fire enforcement agency knows, okay, there's an agreement, and... ...agency knows, okay, there's
• And then notifying the fire agency so that the fire enforcement agency can then come and inspect and
• It doesn't prohibit an agreement between the agency.
• The litigation theory is not that the WSA is a final agency action.

Keywords: 987, senate, all

Transcript Highlights:

• I'd like for us to focus on each performance challenge as we go.
• First, what's been done to address these challenges?
• and then have children that are challenged.
• some of the ongoing challenges that we've been talking about.
• agency?

Transcript Highlights:

• The agency is willing and able now. This is a very serious problem.
• Cyber Command, co-located with the National Security Agency.
• So it's going to be a big challenge as we look ahead over the coming years to ensure all state agencies
• or our technology, the interfacing from agency to agency, how is that? Or how many hits a day?
• Right, and state agency or commission. Sure.

Keywords: 1185, senate, all

Transcript Highlights:

• So that is going to be a challenge for us.
• So, some challenges there.
• Washington Youth Challenge Academy, Emergency Management position.
• Challenge or about the 988 veteran response for those that call in.
• We're the leader of the governor's challenge, so to speak.

Summary: The Joint Committee on Veterans and Military Affairs met to hear updates from Joint Base Lewis-McChord, the Washington Military Department, the Washington Department of Veterans Affairs, and the Department of Commerce on federal and state impacts affecting veterans, military families, and military installations. JBLM’s garrison commander said the base remains focused on housing, child care, and spouse employment, but is facing workforce reductions tied to federal personnel actions, especially in air traffic control, 911 dispatch, and firefighting. He also said JBLM is preparing for increased mutual-aid needs during fire season, and that the Army Transformation Initiative could change unit composition at JBLM over time without a major overall population shift. He confirmed that the Lewis Army Museum is on a closure list, but said the building will remain in use for training and that the base is exploring partnerships to keep museum functions operating, possibly with volunteers or local partners. The Washington Military Department reported about 400 Guard members deployed on federal missions and described ongoing state missions in cybersecurity and firefighting. The department said the Army National Guard’s 81st Stryker Brigade will transition to a mobile combat team, with associated changes in equipment, manning, and end strength. It also warned that continuing resolutions are delaying funding, limiting new military construction starts, and increasing costs. The Washington Department of Veterans Affairs outlined a $3.2 million reduction from the governor’s budget and related cuts affecting internships, vacant positions, outreach travel, claims support contracts, counseling and wellness, veterans’ innovation assistance, and the military transition and readiness council staff position. WDVA said it is ending or scaling back several programs, including in-house nursing assistant training, the veteran farm at Ordean, Vet Corps due to AmeriCorps funding changes, and the tobacco cessation program, while noting that the legislature funded about $23.7 million in capital projects for veteran homes, cemeteries, and transitional housing. The Department of Commerce presented on the Defense Community Compatibility Account, which funds projects that reduce conflicts between military installations and nearby communities. The program currently has 10 projects across five legislative districts, including school and child care improvements, water wells, land acquisition, and a joint firefighting training center in Everett. The presenter said the main challenge is that DCCA projects often need non-state funding secured before they can compete, which can make it hard to leverage federal Defense Community Infrastructure Program dollars; he recommended more flexible state timing to help projects qualify for federal funding. In closing discussion, members raised possible future agenda items including child care near bases, veteran homelessness, suicide prevention, Navy Day, military family housing, and a possible Department of Licensing issue involving guard and reserve designations on driver’s licenses. No formal votes were taken, and the meeting adjourned after members were invited to suggest topics for the October and December committee meetings.

Transcript Highlights:

• </c><00:04:23.199><c> council</c> creates what is an inter agency council creates what is an inter agency
• </c> agency council addressing homelessness. agency council addressing homelessness.
• Schools cannot solve these challenges alone. We need a cross-agency approach.
• We see transportation challenges.
• </c> agency, too. agency, too.

Keywords: 1183, house

Summary: The committee heard House File 3585, as amended, which would create an interagency council on student attendance and re-refer the bill to education finance. Representative Keeler moved the bill and an A1 amendment that corrected the council’s placement from the Department of Children, Youth, and Families to the Department of Education; the amendment was adopted. Keeler and Representative Bakeberg described the bill as the product of several years of bipartisan work on chronic absenteeism and truancy, emphasizing that attendance problems involve multiple systems and require ongoing coordination rather than a single-agency response. Testimony was strongly supportive. Matt Shaver of Allies cited statewide chronic absenteeism data and argued that schools cannot solve the problem alone because root causes such as housing, transportation, health, and economic instability lie outside school control. Assistant Commissioner Angela Mansfield of MDE said the task force and pilot districts showed coordination gaps and supported the council, while also noting MDE’s Compass staff would need permanent funding to carry out the work. Ashley High Totower of Hennepin County’s BEET program said attendance is a public health, child welfare, transportation, housing, and economic issue, and Kenneth Avon of the Minneapolis Foundation said absenteeism is an ecological problem requiring cross-sector coordination. Student witnesses also supported the bill but urged stronger youth representation. Henry Brick of Catalyst for Systems Change said students understand the causes of absenteeism best and proposed expanding student seats on the council from one to five. Ava Northrup of the Minnesota Youth Council said youth voices should be more than symbolic and suggested two youth representatives, one from the metro and one from greater Minnesota, plus additional youth task forces or panels. In member discussion, Representative Lawrence questioned whether the council duplicated existing MDE work, asked who would coordinate the group, and raised the lack of a sunset; Keeler and Bakeberg said the Department of Education would coordinate and that a sunset could be considered later. Other members asked about fiscal impact, and the chair said a fiscal note had been requested and the bill would move on to education finance.

Transcript Highlights:

• </c><00:46:18.880><c> facing</c> improvements another challenge facing improvements another challenge
• I'm just on the phone being pushed from agency to agency, and everyone's saying it's not their job.
• </c> from agency to agency and everyone's from agency to agency and everyone's saying<01:12:58.000><c
• </c> um this is an area where the the agency um this is an area where the the agency puts<01:46:44.880
• </c> that they were told from your agency that they were told from your agency there<01:49:25.760><c>

Keywords: 1187, senate, all

Transcript Highlights:

• Virginia's paid family and medical leave insurance program, VEC, will also be the first agency in the
• And fortunately, we're a stronger agency. We've learned from that.
• And we want to be prepared to meet a challenge should it arise again in the future.
• So the challenge of handling the additional claim volume wasn't just a numbers challenge.
• It was also a variety challenge. We were delivering benefits. It was also a variety challenge.

Summary: The Commission on Unemployment Compensation met, established a quorum, and elected Delegate Destiny LeVere Bolling as chair and Senator Mike Jones as vice chair. The commission also adopted its electronic meeting policy and heard introductions from new members, staff, and officials from the Secretary of Labor’s office and the Virginia Employment Commission (VEC). Secretary Jessica Lumen outlined the administration’s workforce and labor priorities, including supporting workers, employers, and program transparency, while members raised concerns about business climate, job losses, labor participation, and the implementation of paid family and medical leave. Staff provided legislative updates on recent unemployment-related bills. These included increases to the weekly unemployment benefit amount enacted in 2025 and 2026, a bill on labor dispute disqualification that changed how lockouts are treated for benefit eligibility, and a budget item providing $75,000 for actuarial support to the commission. The commission also discussed the 2025 work group on annual adjustments to weekly benefit amounts; staff reported that the work group did not complete its charge, and members agreed to revisit whether to reconstitute it at a future meeting. Delegate Martinez expressed support for continuing the work, and the chair said the issue would be taken up at the next meeting. Deputy Commissioner Joanna Darkus gave a detailed presentation on Virginia’s unemployment insurance system, including current claims data, eligibility rules, employer tax structure, benefit levels, trust fund solvency, fraud prevention, and customer service operations. She reported that Virginia’s unemployment rate remains low, weekly claims are modest, the current weekly benefit range is $160 to $478, and the trust fund balance factor is projected at 50.9 percent, near the threshold for additional employer charges. Members asked about the taxable wage base, trust fund solvency, the effect of benefit increases, fraud controls, and the planned paid family and medical leave program. VEC said it is implementing that program through regulations, staffing, IT procurement, public listening sessions, and consultation with other states. A public commenter from the Virginia Poverty Law Center urged the commission to strengthen state investment in unemployment insurance and warned that federal support is uncertain. The commission then adjourned without taking further action.

Transcript Highlights:

• The second is an endless curiosity to undertake new challenges.
• The second is an endless curiosity to undertake new challenges.
• I mean, I think we have on the EMS side both local EMS agency staff that...
• Is this really challenging? Is this really a challenging big package?
• Because I do think this is going to become a bigger challenge.

Keywords: 987, senate, all

Transcript Highlights:

• receive timely, appropriate, and quality state agency services.
• Like, I mean, getting them to follow curfew is a real challenge.
• The calculation is challenging. I mean, other states do... Yes, the calculation is challenging.
• Our behavioral health systems are really challenging to navigate.
• It's even more challenging to figure out.

Keywords: 1212, all

Transcript Highlights:

• This is a large agency with many resources.
• That agency for a lot more than just wildlife.
• At that point, agency operations will be impaired.
• , so this is eagerly anticipated across state agencies.
• . ...and brought to our agency.

Keywords: 1184, house, all

Transcript Highlights:

• So we connect with state agencies and federal agencies on a regular basis.
• So we connect with state agencies and federal agencies on a regular basis.
• Federal agencies are not. We haven't done that. Federal agencies are not.
• Federal agencies are not. loan from our program. We haven't done that. Federal agencies are not.
• It was a challenging and complex issue.

Summary: The task force met to focus on funding systems and incentive structures for a proposed regional waste infrastructure effort, including how a future WIPA framework might support solid waste planning in the Willamette Valley. Staff and members heard presentations from DEQ on the Clean Water State Revolving Fund, from Business Oregon on the Special Public Works Fund, and from Oregon State Treasury on state bonding capacity and the bond issuance process. Presenters explained how their programs are structured, how projects are scored or approved, what kinds of public entities and projects are eligible, and how interagency coordination and co-funding can work. DEQ emphasized that its revolving loan fund is driven by water-quality benefits and public-health criteria, while Business Oregon described a broader infrastructure loan program for public entities with no scoring system, and Treasury outlined the state’s debt-capacity process and the differences between general obligation and lottery bonds. Members used the presentations to discuss whether similar funding tools could support solid waste infrastructure, especially for transfer stations, regional hubs, and related facilities that may need to be built before Coffin Butte reaches the end of its lifespan. Several questions centered on whether public-private partnerships could qualify, whether equipment inside facilities could be financed, how repayment would work, and whether planning costs could be covered. DEQ and Business Oregon both said they could potentially collaborate on scoring or co-funding, but noted eligibility limits and the need for public ownership in many cases. Treasury said bond capacity is limited and competitive, especially for lottery bonds, and that project authorization generally runs on a two-year cycle, though unused authority can sometimes be reauthorized. In task force discussion, members debated whether the group should pursue a dedicated funding lane for the seven-county region rather than having local governments compete with other statewide needs. Some members stressed the importance of criteria to avoid stranded assets and to ensure funding is available when projects are ready, while others raised concerns about how cities and counties would generate revenue to repay debt during construction and early operations. The group also discussed flow control, system fees, and the need for regional collaboration among counties, cities, and haulers to create enough waste volume to support new infrastructure. Staff noted that pre-session filing materials for the legislature are due September 11, and the chair said the August meeting will focus on organizational structure and identifying partners. During public comment, Representative Kevin Mannix submitted written testimony supporting the WIPA concept and urging the task force to endorse it. Commissioner Bubba King of Yamhill County urged the task force to compare alternatives objectively and warned against adding bureaucracy before evaluating existing infrastructure and costs. Commissioners Kevin Cameron and Roger Nyquist of Marion and Linn counties described regional hub-and-spoke concepts, transfer stations, and intermodal options, emphasizing the need for planning, strategic siting, and collaboration with haulers and local governments.

Transcript Highlights:

• Before we get to that, are any of the affected agencies or subject agencies here today to testify?
• the agency is simply not doing their job.
• These concerns also reflect challenges in process consistency over time.
• Number six is the education mandate challenges lawsuit.
• Brian Miramontes, I'll bring you to the agency. Got it.

Summary: The committee met as a subcommittee because it initially lacked a quorum, heard a status update from State Auditor Grant Parks, and reviewed several new audit requests. Parks reported that 10 previously requested audits were underway, with most expected to be released in spring/summer and one pesticide audit still pending; he also noted ongoing litigation with Huntington Beach over a 2024 audit. He said the office had grown to just over 200 employees and could start about five new JALAC audits between April and July. The committee also noted that one Prop. 28 request was being held and one PUC-related request was moved off consent to the regular calendar. Senator Cervantes presented an audit request on California fusion centers, arguing they operate with little public oversight and may collect, share, and store sensitive information without adequate transparency or safeguards. Supporters, including former FBI agent Mike German and ACLU California Action, said fusion centers function as secretive intelligence-sharing hubs that can produce inaccurate or biased reports and may undermine privacy and civil liberties. Parks said the audit would examine the State Threat Assessment Center and two local fusion centers, focusing on oversight, legal authority, data quality, unauthorized disclosure controls, use of private vendors, funding, and performance metrics, while warning of likely access and public-disclosure limitations. The request drew sharp opposition from Assembly Member DeMaio, who called it a politicized “witch hunt,” but public comment included support from the Electronic Frontier Foundation. Senator Allen then presented an audit of the Public Utilities Commission’s enforcement of Rule 21 interconnection timelines for customer-sited solar and storage projects. He and witnesses said utilities have repeatedly missed deadlines, causing long delays and added costs for schools, nonprofits, and other customers; CPUC staff responded that the commission adopted timelines and compliance benchmarks in 2020, publishes quarterly data, and is already pursuing the issue through workshops and an open proceeding. Parks said the audit would assess CPUC monitoring, enforcement tools, and reasons for utility noncompliance. Public comment was mixed, with solar advocates supporting the request and PG&E objecting on process grounds and arguing the commission’s ongoing proceeding should address the issue. Senator Perez, with Senator Fong, requested an audit of Caltrans’ administration of the former SR 710 corridor property sales and affordable housing program. They described tenant complaints about mold, pests, deferred maintenance, inconsistent pricing and eligibility information, and possible failures to inform residents of purchase rights; Caltrans said it is working to complete sales and has already closed 59 properties since fiscal year 2024-25. Parks said the audit would examine compliance with the Roberti Act, pricing, appraisals, communications, rent accounting, property maintenance, and follow-up on prior recommendations. Finally, Senator Umberg requested an audit of the Orange County Board of Education, citing transparency, litigation spending, charter authorization, procurement, and whistleblower concerns; after quorum was established, Parks said the audit would review Brown Act and Public Records Act compliance, public resource use, contracting, litigation costs, charter oversight, and retaliation complaints.

Transcript Highlights:

• Which is very challenging, but I really enjoyed those challenges to pursue employment in that way.
• We met with LBB and the agency last time.
• I've seen firsthand the challenges that our children face, in addition to the challenges they face when
• Buckner is the largest child placing agency in the Midland Odessa area.
• It's not a clear concern to trigger CSA advocate agencies.

Bills: HB 451, HB 645, HB 1041, HB 1151, HB 1155, HB 1536, HCR 12

Keywords: commercial sexual exploitation, child sex trafficking, human trafficking, child welfare, foster care, DFPS, Department of Family and Protective Services, juvenile probation, risk assessment, needs assessment, trauma screening, child abuse prevention, exploitation screening, validated screening tool, evidence-informed tool, conservatorship, juvenile justice, at-risk youth, trafficking prevention, Child Sex Trafficking Prevention Unit

Transcript Highlights:

• Five respondents said sending officers to training was challenging because agencies must keep a minimum
• There is nothing that's required of the agencies either, or that the agencies would bear any responsibility
• System partners and stakeholders, including staff at state agencies, repeatedly spoke to challenges in
• And then from state agencies down. ...health systems, up to state agencies, and then from state agencies
• Since this report was issued, we have, as an agency, made significant progress on implementing agency-wide

Summary: The Joint Legislative Audit and Review Committee subcommittee heard three State Auditor’s Office performance audits: implementation of the Law Enforcement Training and Community Safety Act, Washington’s digital equity planning, and the Department of Commerce’s Digital Navigator Program. In the law enforcement training audit, the State Auditor found the Criminal Justice Training Commission had developed most required training content but had not developed all required topics, lacked a systematic project management approach, and had weak tools to ensure participation and compliance. Auditors said most officers had not completed the required 40 hours, patrol tactics training was a major bottleneck, and the Commission’s reporting did not clearly show statewide compliance. The Commission said it generally agreed with the recommendations and had begun implementing some changes. Committee members raised concerns about staffing, liability, incentives, and whether the law had enough enforcement “teeth.” In the digital equity audit, auditors said Washington lacked a comprehensive, unified statewide plan, a designated leader, and reliable funding for digital equity efforts. They said existing plans were fragmented, with the NTIA-approved plan the most complete but no longer fully funded after federal changes. The State Auditor recommended the legislature establish oversight authority and require a lead organization to coordinate and evaluate statewide digital equity efforts and develop a unified plan. The Department of Commerce and Office of Equity agreed with the need for clearer leadership and coordination, and a public witness described ongoing coalition and local planning work. Committee members asked about best practices from other states and whether the auditor could provide additional research on coordination models. In the Digital Navigator Program audit, the State Auditor concluded Commerce did not consistently follow core grant-management practices, including competitive award processes, vetting of grantees, clear contracts, performance monitoring, and reimbursement controls. Auditors said Commerce expanded grants without a new competition, lacked adequate documentation and reporting, and paid out millions without sufficient support; they also cited management decisions that overrode staff concerns. Commerce said it had already begun major contract-management reforms, created a new contracts and compliance structure, and was working on risk assessments, documentation standards, and staff training. Members pressed Commerce on accountability, possible recoupment of improper payments, ethics issues, and whether the agency had clear performance metrics for the program. No votes were taken, and the hearing ended after public testimony and committee discussion.

Transcript Highlights:

• The department accomplishes this in partnership with certified third-party agencies.
• to drive cross-sector solutions to California's most pressing challenges.
• What I hear the challenges in the area that I represent, which is North L.A.
• Is this going to be a challenge for you?
• So it's definitely one of the challenges.

Summary: The committee held its second hearing on housing construction innovation, focusing on factory-built and modular housing as a way to lower costs, speed delivery, and expand housing supply. The chair framed the effort as a search for practical innovation paired with land use, financing, and regulatory changes that could make housing more affordable for working families. Government witnesses from HCD, the Strategic Growth Council, and the tax credit and bond allocation agencies explained how factory-built housing is regulated, how California standards and third-party approvals work, and how state programs are trying to build regional demand and financing pipelines for modular production. Testimony from investors and developers emphasized both the promise and the risks of modular construction. JP Morgan Chase and the Housing Accelerator Fund described projects that achieved meaningful time and cost savings, but said lenders still see elevated risk because of manufacturer solvency, upfront deposits, transportation and installation issues, and the need for standardized designs and experienced teams. They urged more standardization, more local factories, better alignment between financing timelines and construction schedules, and state support such as backstops, top-loss capital, and scoring preferences in tax credit and bond programs. Several speakers noted that recent federal changes to the 4% tax credit program increased production capacity, but warned that without continued state investment the pipeline could face a future funding cliff. The workforce panel, including union contractors, factory supervisors, and labor representatives, said modular construction can support good jobs if it is paired with union labor, training, and fair standards. They described benefits for workers such as steadier schedules, less commuting, improved safety, and better work-life balance, while also stressing the need for wages, health coverage, retirement benefits, and apprenticeship opportunities. Union representatives supported a model that keeps both factory and on-site work unionized and said the industry could create more jobs overall if California builds more factories and develops a stable, long-term demand pipeline. No formal votes or actions were taken during the hearing.

Transcript Highlights:

• So I'm intimately familiar with the challenges and the opportunity.
• Individuals may be a challenge for them to see where that.
• We're talking, you know, all the multiple state agencies.
• to agency to try to get this service or that service, it often falls apart.
• to become a regulatory agency.

Summary: The joint hearing focused on coherence in California’s education planning and reporting systems, especially the Local Control and Accountability Plan (LCAP) and related grant plans. Committee chairs and members described widespread frustration with duplicative, lengthy, and sometimes conflicting reporting requirements, while emphasizing that the goal was not to reduce accountability but to make planning more useful, stable, and student-centered. State Superintendent Tony Thurmond also previewed the Governor’s education budget priorities, including expanded learning, community schools, universal transitional kindergarten, literacy supports, and concerns about the proposed Prop. 98 deferral. Panelists from the State Board of Education, Fresno County Superintendent of Schools, and the Legislative Analyst’s Office said the LCAP was intended to balance local flexibility with statewide transparency, but has become overloaded by repeated revisions and additional requirements. They argued for fewer core reporting elements, more stability over time, better alignment of planning cycles, and integrated systems that reduce duplication. Fresno County staff described a multi-year calendar and support tools that help districts manage timelines, but said these tools only ease the burden rather than solve the underlying problem. The LAO noted that some newer plans, such as expanded learning and transportation plans, are narrative-heavy and often less informative than separate reporting requirements. Local district leaders and county officials described the practical effects of the current system: staff time diverted from instruction, multiple portals and forms, audit risk aversion, and planning documents that can exceed 100 pages. Several superintendents said coherent systems work best when districts have clear priorities, stable governance, and aligned budgets, and when state requirements are predictable and tied to outcomes like literacy, attendance, and student achievement. The California Federation of Teachers added that coherence also depends on meaningful collaboration with educators, classified staff, parents, and communities. Committee members repeatedly asked whether the state should streamline reporting, create a uniform portal, or develop a more unified grant-reporting structure, and Thurmond said the department was piloting a simplified common form and was willing to work with the Legislature and districts on broader solutions.

Transcript Highlights:

• One of the biggest challenges is rising operating costs.
• Finally, local funding requirements continue to be a challenge.
• Trevor stated that he supports more funding for all transit agencies in the state, and that the agencies
• But it's operationally very challenging.
• It's a challenge.

Summary: The committee met as a study subcommittee on fixed-route public transportation and first approved the December 11 minutes. It then heard detailed presentations from transit leaders in Grand Forks, Bismarck/Mandan, and Fargo about their systems, including route structures, paratransit service, ridership trends, fare changes, funding sources, fleet replacement needs, and operational challenges. Grand Forks described Cities Area Transit’s 17 routes, university shuttle service, expanded paratransit coverage, a 2025 fare increase, and rising costs for labor, fuel, parts, and new buses. Bismarck/Mandan’s Bisman Transit outlined its fixed-route and paratransit operations, recent service expansions approved for April 1, fare structure, ridership recovery since COVID, and major funding streams including mill levies, federal grants, and new local sales tax revenue. Fargo’s MATBUS representative emphasized the importance of continued state support for urban fixed-route transit. Members asked extensive questions about cost per ride, fare increases, school transportation, veteran service partnerships, app-based ticketing, local funding formulas, and whether ride-share or microtransit could replace fixed routes. Transit officials said fixed-route service remains essential because it provides reliable capacity, supports jobs and access to services, and preserves federal funding tied to public transit operations. They also said paratransit is costly but necessary for riders with disabilities, and that vehicle and maintenance costs have risen sharply. Minot’s transit superintendent added context on the state’s existing transit aid formula, explaining that it is weighted more toward rural and paratransit providers and that urban fixed-route systems are seeking a separate, dedicated funding source rather than changes to the current formula. The committee also heard public testimony from North Dakota Protection & Advocacy supporting both fixed-route and paratransit service for disabled riders, and from Minot staff on refurbished buses, CDL driver recruitment, and why the agency is not pursuing full electric buses. Near the end, members discussed whether to recommend additional state funding for the four urban fixed-route systems. A motion passed to have Legislative Council prepare a summary of the subcommittee’s activities for inclusion in the Government Finance Committee’s report to Legislative Management. Members then continued discussing possible recommendations, including a separate funding source for urban fixed-route transit and whether the four urban systems should meet to develop a proposed amount.

Transcript Highlights:

• And it's great to have a good challenge.
• And it's taken a lot of commitment with all of our agencies.
• So it is challenging.
• They have agency and they have a lot of guts.
• The challenge is it's $1,200 for a student to pay.

Bills: SB6209, SB6217, SB6227, SB6235

Keywords: financial aid, higher education, private institutions, student awards, affordability, Washington college grant, postsecondary education, nondegree programs, educational access, data collection, parenting students, education, support services, academic performance, college athletics, private equity, sovereign wealth funds, student athletes, financial agreements, 904

Transcript Highlights:

• Do we work with any other government agencies like that or federal agencies?
• agencies, because every interconnecting agency, most interconnecting agencies, are developed particularly
• agency, most interconnecting agencies are, are developed particularly for that solar 3356 agency, most
• Are there any statutory challenges that preclude your agency from carrying out your duties to protect
• Are there any statutory challenges that 5734 preclude your agency from carrying out your duties to protect

Summary: The Senate Committee on Business and Commerce held its first interim hearing on securing critical infrastructure and supply chain integrity, with a focus on Texas’s electric grid and the Lone Star Infrastructure Protection Act. The chair also highlighted Texas’s relatively low electricity prices and welcomed new committee members. ERCOT, the Public Utility Commission (PUC), and the Attorney General’s office were invited to explain how the state screens market participants and grid equipment for ties to China, Russia, Iran, and North Korea, and how the agencies respond to noncompliance. ERCOT testified that it has implemented the requirements of three related Senate bills by requiring attestations on corporate affiliations and on critical grid equipment and services. ERCOT said it has processed thousands of attestations, used additional requests for information and third-party verification tools such as Dun & Bradstreet, and terminated nonresponsive market participants. ERCOT also said it has not seen a case requiring direct Attorney General involvement, but it does refer matters to the PUC when needed. The PUC said it can investigate suspected violations and impose penalties of up to $1 million per violation per day, and that most investigations into late or missing attestations have been resolved through compliance, market exit, or removal by ERCOT. The Attorney General’s office said its role is currently limited to audits and court involvement, and that it lacks broad independent investigatory authority under the act. Members pressed the panel on whether the current system is too reliant on self-reporting and whether it adequately addresses indirect foreign influence, especially through supply chains for batteries, inverters, transformers, and other equipment with routable connectivity. ERCOT acknowledged that the current attestation process has gaps and said it plans to refine definitions of critical grid equipment and grid services, improve information requests, and continue stakeholder rulemaking. The panel also discussed possible legislative changes, including tying prohibitions to the Department of Defense Section 1260H list and the Texas Prohibited Technologies list, clarifying warranty and service access, and expanding the statute to cover grid services more directly. Several senators raised concerns about cost, reliability, and the extent to which foreign-sourced components remain embedded in Texas infrastructure, while others suggested incentives for domestic manufacturing and stronger verification tools, including possible work with national labs such as Sandia.

Transcript Highlights:

• </c> provide a standard across all agencies provide a standard across all agencies something<00:04:35.039
• </c> runs a daycare um those are challenges runs a daycare um those are challenges but<00:33:00.799><
• They are the local agency, or the agency that's closest to the youth.
• </c><01:10:53.280><c> manage</c> recommend that County agencies manage recommend that County agencies
• </c> the funds they are the uh local agency the funds they are the uh local agency or<01:10:56.560><c

Keywords: 1187, senate, all