Transcript Highlights:

• The Align program, that’s the Arkansas Linking Industry to Grow Nurses program, is requesting to move
• or the crime victims program.
• It's a once-a-year grant program.
• And then we manage that program.
• Any objections to reviewing? Seeing no objections, it is reviewed. It takes us to our reports.

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

Transcript Highlights:

• treatment program.
• treatment program.
• board’s findings in the judicial review process: “That is the judicial review process.
• they review this?”
• Did they review this? heck one it is. Did they review this?

Keywords: 1187, senate, all

Transcript Highlights:

• or the crime victims program.
• It's a once-a-year grant program.
• And then we manage that program.
• Any objections to reviewing? Seeing no objections, it is reviewed. That takes us to our reports.
• Any objections to reviewing? See no objections? I understand reviewed. It takes us to our reports.

Keywords: 1204, all

Transcript Highlights:

• over the time of the interlock program over the time of the interlock program and<00:12:24.560><
• And then program properly.
• I had an administrative review.
• use that car to uh be in the program. use that car to uh be in the program.
• program and I have to agree with Mr. program and I have to agree with Mr.

Keywords: 1187, senate, all

Transcript Highlights:

• That's a member review process.
• That's a member review process.
• the teams review teams are out review the teams review syllabi<01:03:20.240> learning<01:03:20.640
• And so we have a recurrent cycle of program review to help us ensure that our academic programs are delivering
• our programs, our chemistry program, our programs, our chemistry program, our music<01:11:50.159

Keywords: 928, house, all

Summary: The committee heard updates from the chancellors of the state university system and the community college system on ongoing restructuring, collaboration, and enrollment trends. The university system said its office move to the NHTI campus is ahead of schedule and should save students about $250,000 a year while creating revenue for the community college system. Both systems described continued work on transfer pathways, direct-admit outreach, shared advising, and broader efforts to shrink footprints, reduce costs, and improve operational efficiency in response to declining enrollment and demographic pressure. A major topic was a possible federal change to Pell Grant eligibility that would require students to enroll in at least 7.5 credits. The chancellors said most community college students are part-time because of work and family responsibilities, and that the change could affect roughly 2,000 current Pell recipients and make it harder for students to afford or sustain enrollment. Members also discussed how the state’s governor’s scholarship statute largely benefits full-time students, suggesting possible future statutory changes. The chancellors explained how credits typically work, noting most courses are three or four credits and that students would likely need to add an entire course to meet the proposed threshold. The committee also discussed the broader higher education landscape, including declining high school cohorts, competition among New England institutions, and the need to right-size capacity. One member raised concerns about the health of regional campuses such as Plymouth and Keene; the chancellors said incoming enrollment is down at UNH and Plymouth and holding at Keene, attributing the trend to demographics rather than one campus drawing students away from another. They emphasized the importance of community colleges, adult learners, and short-term workforce programs as part of the state’s future education mix. Finally, the committee touched on the value of the university system’s research enterprise. The chancellor said about $250 million a year flows into the university system in federal research grants, with about $9.5 million currently under stop-work orders from federal agencies. She said the immediate concern is not DEI-related but federal cuts and possible caps on indirect cost recovery. Members noted that the R1 research designation supports business partnerships, student opportunities, and economic development projects such as West Edge in Durham.

Transcript Highlights:

• Our program officers—we have four program officers—keep in touch.
• We definitely want to make sure that the reviewers that are sitting and reviewing these applications
• So our grant program has really grown.
• Our final step of the review process, we would complete a review of the financial documentation requested
• programming.

Transcript Highlights:

• Annual enrollment in pre-licensure nursing programs increased by over 30% since our last sunset review
• And so if we review your international program data and they meet the educational requirements that every
• , growth of a current program, or moving to a new location, are all reviewed by our nine-member board
• programs.
• Does the board's review of schools and programs cover all the same conditions and standards as the bureaus

Summary: The joint Assembly and Senate Business and Professions sunset oversight hearing focused first on the Board of Registered Nursing (BRN), with committee chairs emphasizing oversight, consumer protection, workforce access, and economic mobility. BRN leaders reported improvements since the last review, including faster licensing timelines, streamlined enforcement, higher consumer satisfaction, growth in pre-licensure enrollment, and expanded data collection. Members questioned the board about nurse practitioner scope and supervision, international and military pathways to licensure, online nursing education and clinical requirements, rural workforce shortages, and the 30-unit LVN-to-RN option. BRN staff explained California’s tiered advanced practice system, the NCLEX and certification requirements, English proficiency rules, clinical hour standards, and the board’s role in approving programs and supporting schools through nursing education consultants. Several members and the board president also discussed the need to retain new graduates, improve diversity in the workforce, and better support nontraditional students and rural placements. Public comment on the BRN sunset review was extensive and largely supportive of the board, while also urging policy changes. Nurse practitioner, nurse anesthetist, nurse midwife, and nursing education groups generally supported the BRN report and especially backed clarification of APRN-to-RN delegation authority under issue 13. Other commenters asked for clearer implementation of AB 890, more flexibility for clinical nurse specialists, streamlined renewals for nurse midwives, and changes to federal loan limits affecting graduate nursing education. Higher education representatives and private nursing schools raised concerns about duplicative BRN documentation, clinical placement bottlenecks, and barriers faced by out-of-state and online programs seeking to serve California students. The California Medical Association and some physician groups opposed easing transition-to-practice requirements for out-of-state nurse practitioners and cautioned against changes to specialty and delegation rules, while the California Nurses Association and others stressed the importance of community college pathways, new graduate support, and workforce retention. The hearing then moved to the Physical Therapy Board of California. Board leadership reported that the board oversees more than 41,000 active licensees, has seen about 15% growth since 2021, and continues to maintain high exam pass rates among California physical therapy and physical therapist assistant programs. The board described its mission as consumer protection through licensing, enforcement, continuing competency oversight, and stakeholder engagement. The vice president’s remote testimony encountered technical problems, so the executive officer continued with a brief overview of the board’s work and its commitment to efficient service and public protection. No votes or formal actions were taken in the portion of the meeting provided.

Transcript Highlights:

• What triggers so many SEPA reviews, and why isn't there just a final SEPA review?
• So if you start with a broad review, then that might prevent repeated review later. Okay.
• Oh, yeah, the grant program. One of the other things that it commissioned was a grant program.
• And one of the positions was a coordinator specific to this new review program.
• It is a predictable review process that is two review cycles of six weeks each.

Summary: The Local Government Committee met in work session and heard a series of presentations on SEPA, permitting reforms, and building code implementation. Department of Ecology staff gave an overview of the State Environmental Policy Act, explaining its role in state and local decision-making, common exemptions, planned actions, and recent housing-related statutory changes such as transit-oriented development exemptions and SEPA appeals protections for certain local ordinances. Committee members asked about repeated SEPA reviews, cultural and historic resource review, and how SEPA relates to NEPA; Ecology responded that repeated reviews usually occur when proposals change and that programmatic EISs can help front-load analysis. Seattle’s Department of Construction and Inspections described how recent SEPA exemptions reduced residential review volume and supported more housing permits, and said the city is considering raising thresholds further. The State Building Code Council provided an update on code adoption timelines and legislative tasks tied to the 2024 codes, including single-stair housing, multiplex housing, dwelling unit size, and temporary emergency shelter standards. Council staff said the content of the codes is largely set, but administrative timelines have been delayed, prompting a motion to postpone final adoption while pursuing ways to preserve the planned implementation schedule. Members asked about the timing of code changes and the impact on housing costs, and staff said the legislative topics remain on track for inclusion in the 2024 code package. Committee staff then reviewed recent permitting legislation, including SB 5290’s permit decision deadlines and fee-refund provisions, later bills limiting pre-application meetings and clarifying that building permits are excluded from those timelines, and project-specific changes affecting middle housing, ADUs, lot splits, passive house projects, self-certification, transit-oriented development, and parking requirements. Commerce’s Dave Anderson reported on SB 5290 implementation, including guidance on permit fees, studies on staffing and statewide permitting systems, grants to local governments, and the first annual performance report, which showed mixed results and highlighted the importance of digital tools, clear checklists, staff training, and coordination across departments. Local officials from Issaquah and Kitsap County described their own process improvements, including code updates, optional pre-application meetings, new staffing, reporting systems, and a phased “Two by Six” review model in Kitsap, while also noting challenges from staffing shortages, agency coordination, and the burden of implementing multiple new mandates.

Transcript Highlights:

• The first is a drug take-back program fee-setting and expenditures review, and this is due in December
• program outcomes.
• We were directed to review the impact of adding 10 new producer licenses under the social equity program
• By way of background, the 2022 legislature directed JLARC to review DOH programs related to the types
• The mandate included a review of access to the programs and services DCYF offers to young people, how

Summary: At the May 14, 2025 JLARC meeting, members approved the January 9 minutes and adopted the 2025–27 biennial work plan with a minor typo correction. Staff reviewed the new work plan studies, including a drug take-back program fee/expenditure review due in December 2025 and a state energy performance standard compliance review due in June 2027, and noted JLARC’s recent session activity, including several bills passed related to JLARC work and recommendations. The committee then heard a preliminary cannabis market study showing Washington businesses likely produced two to three times more cannabis than retailers sold in 2023. Staff and RAND said LCB’s data systems are incomplete and unreliable, limiting regulation, tax verification, and diversion tracking; they recommended that LCB submit a plan by year-end for collecting accurate data by the end of 2026. Members and LCB discussed the long timeline for a new traceability system, the causes of missing sales and weight data, overproduction, diversion, and the social equity program’s effect on producer licenses. JLARC also presented a preliminary hospital oversight report concluding that the Department of Health is late on many hospital inspections, does not verify third-party inspection standards, does not review adverse health event correction plans, and could make hospital data more accessible. The committee discussed fee funding, language access, and inspection timing, and DOH said it would work on a strategic plan and continue coordinating with JLARC. Members also heard a preliminary report on the public records survivor exemption, which found agencies are using it but need more guidance; JLARC recommended keeping the exemption and having the Attorney General provide additional training. Finally, the committee approved the DDA processes and staffing final report for distribution, which recommended performance metrics, stronger data quality controls, and workforce planning; DDA concurred. JLARC also introduced proposed study questions for a future DCYF juvenile rehabilitation review focused on safety, security, programs, staffing, education, and contraband, and the meeting adjourned after members asked about scope and facility conditions.

Transcript Highlights:

• or the crime victims program.
• It’s a once-a-year grant program.
• And then we manage that program.
• Any objections to reviewing? Seeing no objections, it is reviewed. That takes us to our reports.
• Any objections to reviewing? See no objections? I understand reviewed. It takes us to our reports.

Summary: The committee met to review a large slate of fiscal year 2026 and 2027 appropriation, transfer, and continuation requests across multiple sections. Early items included temporary appropriations for agencies such as Health, DHS, Education, Public Safety, State Police, Emergency Management, Aeronautics, Military, Economic Development, and Game and Fish, covering items like maternal health outreach, energy assistance repayments, Wynne High School tornado rebuilding, senior food services, cybersecurity, crime victim reparations, aviation grants, conservation incentives, and emergency tower maintenance. Members asked questions on several items, including DHS aging carry-forward funds and Treasury custodial banking fees tied to COVID-era balances; the committee also approved a disclosure by the chair on the Game and Fish-related item before voting to approve the section. The committee then approved continuation requests, CARES Act and ARPA reallocations, and federal grant appropriations. Notable discussion included the Boonville developmental disability project, ALIGN program reallocations at several universities, a small business technical assistance grant at UA Little Rock, and a Department of Public Safety highway safety grant, for which members requested more detail on operating expenses and professional fees. Additional approvals covered a transfer to the Merit Teacher Incentive program, restricted reserve fund transfers for military medical command and university projects, and a state central services deduction held at 2%. The Department of Commerce also received approval for a reallocation of positions and spending authority tied to its organizational realignment. Later sections included shared technology and higher education transfers, cash fund appropriations for school Medicaid reimbursements, corrections, youth mental health, narcotics detection canines, bike safety equipment, a state motor pool pilot, and law enforcement safety costs. The committee also reviewed budget classification transfers, including a Governor’s Office legal fee transfer related to a California lawsuit, and heard explanations about E-Rate reimbursements affecting the Office of State Technology. Members asked about VOCA funding levels for crime victim services and about the National Security Grant Program for nonprofits and faith-based organizations; officials said federal funding had declined from prior highs but appeared to have stabilized, and that the nonprofit security grant is an annual federal program. The meeting concluded with review of pay plan requests, DHS overtime funding for child protection caseloads, and a year-end adjustment request allowing DFA to make up to $1 million in transfers to close the books, after which the committee adjourned.

Transcript Highlights:

• The university has been reviewing academic programs, and thanks to our provost, Tim Todd, who's also
• The university has been reviewing academic programs, and thanks to our provost, Tim Todd, who's also
• <00:32:17.440> uh reviewing our programs and events uh reviewing our programs and events uh
• Programming and communication activities are continually reviewed and, where warranted, revised in an
• our policies in programs, review our policies in programs, scholarships,<00:56:16.000> academic

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Education met to hear updates from Kentucky public universities and the Kentucky Community and Technical College System on compliance with House Bill 4, which restricts DEI-related activities and requires institutional and viewpoint neutrality. The chair emphasized that the hearing should focus on both compliance and the financial effects of the law. Eastern Kentucky University said its board adopted a House Bill 4 compliance resolution and an institutional neutrality policy. KCTCS reported systemwide reviews of programs, websites, scholarships, personnel, and admissions language, along with board actions removing a cultural competency course requirement, adopting institutional neutrality, and certifying compliance. KCTCS said about $2.5 million annually had been reallocated to other needs, and that no personnel were eliminated, though some roles were reassigned and DEI-related offices closed. Kentucky State University said it had already dissolved DEI offices before the bill passed, ended DEI-specific training, revised policies and gift acceptance rules, adopted a viewpoint neutrality policy, and was conducting ongoing reviews of programs, job descriptions, and web content. KSU said it had achieved substantial compliance, expected full operational integration by August 1, and had not terminated staff or closed academic programs because of the law. In response to questions, KSU said it was broadening outreach to all students rather than targeting specific populations and that its prior diversity finding was tied to not meeting a diversity quota. Morehead State University said it had no DEI office before House Bill 4, amended its non-discrimination statement to include political and social viewpoint neutrality and condemnation of religious and ethnic discrimination, and remained focused on serving its largely low-income student body. Murray State University reported reviewing scholarships, expenditures, training, and academic programs to ensure no differential treatment or indoctrination, revising its neutrality policy, and updating non-discrimination posters and training. When asked about a statement that DEI would “look different,” the university said it meant student support services would continue in a different form. Northern Kentucky University said it dissolved its diversity office and chief diversity officer position in 2024, reviewed programs, events, scholarships, and employee affinity groups, adopted a statement on intellectual diversity and viewpoint neutrality, and reviewed about 2,000 courses for compliance. NKU also said its new Center for Belonging would focus on first-generation and commuter students rather than rebrand prior DEI efforts. The University of Kentucky began its presentation by describing earlier changes made in August 2024, including disbanding its office of institutional diversity, removing diversity statements and mandatory training, adopting institutional neutrality, and ending race-based consideration in admissions and scholarships; the transcript cuts off before the rest of UK’s testimony and any committee votes or formal actions beyond receiving the presentations.

Transcript Highlights:

• program program debed<00:04:13.159> um<00:04:14.159> change debed um change debed um change
• <00:09:30.320> to housing regulatory sandbox program to housing regulatory sandbox program
• program, of this proposal.
• Members... program we'll also add to the advisory program we'll also add to the advisory Council<00:45
• > wellestablished utilized program with wellestablished utilized program with wellestablished

Keywords: 912, senate, all

Summary: The committee heard testimony on several housing-related measures, with most witnesses supporting bills aimed at expanding affordable housing tools and financing. SB 1169, creating a Community Land Trust Equity pilot program, drew support from HHFDC and Nahal UI, which said revolving funds would help community land trusts build permanently affordable housing more efficiently. SB 1200, establishing a workforce housing regulatory sandbox within HHFDC, also received support from HHFDC and others, though HHFDC noted concerns about whether the measure could be read to preempt county permitting and zoning powers. SB 511, which would require county legislative bodies rather than HHFDC to approve certain housing project exemptions, prompted HHFDC to suggest revised language and a possible processing deadline for applications; the discussion focused on avoiding indefinite delays and clarifying county and state roles. SB 1283, creating an emergency home loan assistance revolving fund, was introduced with comments from the Department of Budget and Finance and HHFDC. SB 612, on rent-to-build equity agreements for exempt housing projects, drew support and questions about how many affected projects are rentals versus for-sale units. SB 944, extending and expanding low-income housing tax credit provisions, received support from Sugar Creek Capital, Hawaii Housing, and the Chamber of Commerce, while the Tax Foundation raised a technical concern about inconsistent use of the term “taxpayer.” HPHA-supported bills SB 1413 and SB 1412 were also heard, along with SB 1632, which would direct DBEDT to develop a comprehensive action plan for a local housing market; testimony on that measure was strongly supportive but included calls to examine constitutional and legal issues and broader market-structure concerns. The committee also began discussion of SB 1033 and noted it was closely related to SB 1131, with the chair indicating an inclination to move only one of the two similar tax proposals forward.

Transcript Highlights:

• These programs include the Supplemental Nutrition Assistance Program, Temporary Assistance for Needy
• To monitor program effectiveness and for program improvements and allocate resources.
• So there are specific goals for the TANF program that outline, as you administer these programs, how
• effectiveness, and inform program improvement... ...to monitor program effectiveness, inform program
• The reviews are delayed, right?

Summary: The Human Services Subcommittee met to receive implementation briefings on House Bill 1267, which was enacted to address benefit cliffs and help public assistance recipients move toward economic self-sufficiency. The Department of Children and Families reviewed SNAP, Temporary Cash Assistance (TCA), and Medicaid-related eligibility and work requirements, including who must participate in work activities, the role of Florida Commerce and CareerSource Florida, and the new standardized intake and exit surveys required by the law. Members also discussed the TCA program’s household-based structure, the 48-month adult limit, and how work requirements differ for SNAP and TCA participants. Florida Commerce and CareerSource Florida then reported on implementation of HB 1267, including the CLIFF financial forecasting tool, case management changes, and survey data collected from welfare transition participants. They said intake surveys showed common barriers such as child care, transportation, and flexible work schedules, while exit surveys showed many participants were employed or had gained credentials, though response rates were low because the surveys are voluntary. A local workforce board, CareerSource Tampa Bay, described using CLIFF in case management and shared a success story about a participant who completed training, earned certifications, and moved into employment. The committee also heard a separate DCF briefing on the federal One Big Beautiful Bill Act and its impact on SNAP. DCF said the law expands able-bodied adult without dependents requirements, changes non-citizen eligibility, ends future SNAP-Ed funding, increases state administrative cost sharing, and may require states to share in benefit costs if payment error rates remain above federal thresholds. Members focused heavily on Florida’s SNAP payment error rate, which DCF said was 15.13% for federal fiscal year 2024 and 12.60% for 2023, with the state currently on a corrective action plan. DCF described steps to reduce errors, including more verification of rent and utility expenses, improved income matching, staff training, and system modernization. No votes were taken, and the meeting adjourned after questions concluded.

Transcript Highlights:

• , enhanced uh prepayment review, enhanced uh prepayment review, postpayment<00:08:05.680> review
• Chair, Senator Pratt, I mean, the prepayment review is a program integrity process, and that's why they're
• :38.559> a<00:20:38.799> program<00:20:39.120> integrity prepayment review is a
• program integrity prepayment review is a program integrity process<00:20:41.039> and<00:20:41.360
• counties are financing these programs counties are financing these programs already?

Keywords: 1187, senate, all

Transcript Highlights:

• So as you can see, we are covering today the review of workforce development programs and competitive
• . programs. programs.
• reviewers.
• with this program? with this program?
• grant program.

Bills: HF4072, HF3691, HF4613

Keywords: workforce development, journalism, local news, internships, media training, emergency management, essential employees, public safety, law enforcement, workforce, economic development, appropriation, Twin Cities Marathon, Explore Minnesota, grants, 1183, house

Transcript Highlights:

• sample reviews, as would be done in a normal monitoring review.
• program?
• It is a program that is a federal program, yet the state had a It is a program that is a federal program
• solution programs or others?
• We do second-party reviews.

Keywords: 1204, all

Transcript Highlights:

• Health Insurance Program.
• So when we audit in Program Integrity, we're requesting records, we're reviewing them to make sure that
• So when we audit in Program Integrity, we're requesting records, we're reviewing them to make sure that
• But for the prepayment reviews, we review their information.
• c><00:26:27.840> information reviews we we review their information reviews we we review their

Keywords: 958, all

Summary: The subcommittee met to review the Department for Medicaid Services’ program integrity work. Commissioner Lisa Lee and Program Integrity Director Jennifer Dudinsky outlined Kentucky Medicaid’s structure, funding, enrollment, and spending, including FMAP rates, the size of the Medicaid and KCHIP populations, the number of providers, and 2024 expenditures. They also described the managed care and fee-for-service populations, noting that managed care serves most members while fee-for-service is concentrated in long-term care and waiver populations. Most of the discussion focused on fraud, waste, abuse prevention, and provider oversight. The department described its provider enrollment and certification checks, revalidation requirements, site reviews, fingerprinting for some high-risk providers, and termination grounds such as false application information, Medicare actions, unreported ownership changes, and abandonment of a provider number. Members asked about nonprofit ownership reporting, MCO fraud oversight, and how the department tracks unusual CPT code utilization, especially in behavioral health. The department said it uses data analytics, audits, policy review, and collaboration with behavioral health staff to monitor those trends. Dudinsky explained the division’s four branches: provider licensing and certification, audits and compliance, recovery, and third-party liability/estate recovery. She described prepayment and postpayment audits, referrals of credible fraud allegations to the Attorney General, monthly meetings with the AG’s office, and coordination with the Office of Inspector General, CMS, HHS OIG, MCOs, and other partners. She also explained payment suspensions, stand-downs during law enforcement investigations, and recovery efforts for overpayments, provider/member fraud, and third-party liability. The department said its recovery and avoidance efforts produced more than $251 million in savings so far in 2025. No votes or formal actions beyond approving the minutes were taken.

Transcript Highlights:

• This one program, though, is the one program they run that I like.
• program expenditures.
• We don't have to change the whole program for those that abuse the program.
• program.
• program.

Bills: HB2352, HB2388, HB2418, HB2499, HB2500, HB2579, HB2584, HB2804

Keywords: funding, auditor general, county treasurer, procedural reviews, state appropriations, HB2388, Arizona Commerce Authority, ACA, small modular reactor, SMR, nuclear energy, advanced nuclear, data center, data centers, economic development, study, appropriation, general fund, jobs, wages

Summary: The committee first heard HB 2584, which would prohibit public funds from being used for genetic sequencing equipment made by companies owned or controlled by entities domiciled in a foreign adversary. The sponsor said the bill is intended to prevent sensitive genetic data from being sold or used against the United States. There was little public testimony, and the committee approved the bill on a 13-5 vote for a do pass recommendation. Members then considered HB 2804, a rural development and housing tax credit bill that would let the Department of Housing allocate up to $2 million per year in credits for qualifying rural affordable housing projects, with the program set to expire in 2037. Supporters, including the sponsor, the mayor of Flagstaff, and housing investors and developers, said the credit would leverage federal LIHTC dollars, attract private capital, and help finance affordable housing for seniors, veterans, and low-income residents in rural Arizona. Opponents from the Arizona Free Enterprise Club argued state LIHTC programs are inefficient, costly, and hard to oversee. The committee passed the bill 13-4. The committee also heard HB 2388, as amended, which appropriates $100,000 to the Arizona Commerce Authority to study the economic benefits of small modular reactors and data centers, with a report due by June 30, 2027. Supporters said the study could help Arizona plan for future energy and data-center growth, while opponents argued the agency already has other funding sources and should not receive additional money for the study. The amended bill passed 10-7. After a presentation from Auditor General Lindsay Perry on county treasurer procedural reviews and the Santa Cruz County embezzlement case, the committee approved HB 2352, which provides $2,385,900 in FY 2029 for the Auditor General to continue county treasurer reviews, on an 11-7 vote. The committee then unanimously approved HB 2418, as amended, which directs $600,000 to be evenly distributed among five major incident task force counties and codifies the longstanding distribution practice. Finally, the committee took up HB 2499, the first of two ESA administration bills, which would appropriate $2.6 million and 12 FTEs to the Department of Education for ESA administration and oversight beginning in FY 2027; the bill drew extended debate about ESA growth, accountability, testing, and spending oversight, but the transcript cuts off before the final vote.

Transcript Highlights:

• So in those reviews.
• We review all their comments.
• We are increasing our volume by the high school programs and the trade school programs.
• We've implemented a program called Ask Kevin, and we bought an AI program off the shelf.
• Programs right now, but we have quite a few that come out of the Department of Labor programs.

Transcript Highlights:

• Reviewed and approved. All right, moving to C.
• And Airbnb offers a host damage protection program.
• Today I'm here to present a rule for the SNAP program.
• Recovery audit contractors are contractors that are used by Medicaid and Medicare programs to review
• If there's any questions, you can review those.

Summary: The Administrative Rules Subcommittee reviewed a series of agency rules and related requests. The Department of Corrections and Post-Prison Transfer Board reported quarterly updates with no questions, and several Commerce rules were approved, including repeals tied to the minority business enterprise and women-owned business enterprise programs and the Consolidated Incentives Act because they were superseded by Act 116 or duplicative of statute. The Insurance Department’s new rule for online marketplace guarantee providers was also approved, with Airbnb used as an example of the type of platform covered. The Department of Education presented an update to the Arkansas Adult Diploma Program to align payment milestones with Act 502 of 2025, and DFA presented a rule implementing a new tax credit for Arkansas rice used in beer and sake production under Act 874 of 2025. Members asked about verification of grain bills and whether the credit was broadly available; DFA said the rule tracks the statute and requires producers to submit the grain bill with their return. DHS then presented a SNAP rule implementing federal changes from Public Law 119-21, including raising the able-bodied adult without dependents age limit to 64, changing treatment of dependents and exemptions, and adjusting energy assistance income treatment; the rule was approved despite one public comment. Later, DHS Medical Services amended the Medicaid Rehab Hospital Manual to allow rehab hospitals to operate psychiatric units and bill Medicaid for those services, and also secured approval for a recovery audit contractor exemption because Arkansas law bars contingency-fee contractors and the state already has other program integrity safeguards. The Board of Public Accountancy’s rules implementing Act 428 of 2025 were approved after discussion of a new CPA licensure pathway requiring a bachelor’s degree plus two years of experience, changes to substantial equivalency for out-of-state CPAs, and removal of a government/not-for-profit coursework requirement. The committee also approved the Department of Education’s request to be excluded from certain reporting requirements, retained all 18 DAPSAF rules under a review of Group 3, filed outstanding 2023-session rulemaking updates, and adjourned after filing monthly updates.