Transcript Highlights:

• Corporation, relating to reporting requirements for natural gas pipeline projects, relating to approval of contracts
• by the Regulatory Commission of Alaska, and in Projects relating to approval of contracts by the Regulatory
• gas pipeline projects, creating the Alaska Affordable Heating Fuel Fund, relating to approval of contracts
• gas pipeline projects; creating the Alaska Affordable Heating Fuel Fund; relating to approval of contracts
• gas pipeline projects, creating the Alaska affordable heating fuel fund, relating to approval of contracts

Summary: The House convened with a quorum, opened with prayer and the Pledge of Allegiance, and approved the journal and the prayer for the record. The clerk read gubernatorial messages calling the legislature into a third special session and describing the call around House Bill 381, a major natural gas project bill addressing property taxes, municipal taxes, AGDC, reporting requirements, contract approval, an alternative volumetric tax, municipal impact grants, and related provisions. Messages from the Senate reported passage of a Senate-amended version of HB 381 and transmission of Senate Concurrent Resolution 203 to suspend certain rules related to the bill. The House introduced HCR 301 and HCR 302. HCR 301, which suspends rules on carryover of bills into a special session, passed 40-0. The House then took up the Senate amendments to HB 381. The Majority Leader outlined the Senate changes, including new school funding provisions, reorganization and oversight of AGDC funds, a public project dashboard, stricter bond approval requirements, a heating fuel assistance fund, changes to the alternative volumetric tax structure and distribution of revenues, a permanent rather than sunsetted tax break, new deadlines tied to final investment decision and construction, and a new graduated income tax on certain pass-through entities. He urged members to vote no on concurrence, and the House rejected concurrence 12-28. Because the House did not concur, the Speaker appointed a conference committee on HB 381 consisting of Representative Schrage, the Majority Leader, Representative Edgmon, and Representative Ruffridge. HCR 302, authorizing the House and Senate to recess for more than three days, passed 40-0 after members stated the recess was intended to allow conference negotiations to continue and that the body would return on a time certain. The House also received two governor-request bills, HB 3001 and HB 3002, both referred to the Finance Committee. The House then excused several members for specified absences and adjourned until July 1 at 10:30 a.m.

Transcript Highlights:

• So you all would see that revised amendment to that contract sometime May, June, because I still have
• We have a presentation today by the Medicare Advantage Prescription Drug Contracts and related marketing
• touch on the strategy that Grant talked about with the decoupling, the medical and the pharmacy contracts
• You've got your medical care and prescription drugs under the same contract with a single insurance carrier
• If you have a Medicare Advantage plan that's covering medical, they can set up contracts with providers

Summary: The committee received an update from Grant Wallace on the rebid and possible decoupling of the state’s Medicare Advantage retiree coverage. He said the state is exploring splitting medical and pharmacy benefits for post-65 retirees, with UnitedHealthcare as the incumbent vendor, and that preliminary estimates suggested savings of about $100 to $200 per participant per month. He outlined the expected timeline for final CMS rate announcements in April 2026, with contract amendments likely to come before the committee in May or June after review by the EBD Advisory Commission and State Board of Finance. Representatives from Segal Consulting then reviewed the history and current structure of the Medicare Advantage prescription drug plan, explaining that the plan was adopted after a 2021 recommendation and launched in 2023 alongside the existing Med-Sup option. They said the Medicare Advantage option has produced substantial savings, including a lower monthly rate than the Med-Sup plan and about $40 million in savings from initial enrollment, while also restoring pharmacy benefits for some retirees. The presenters then explained recent federal changes under the Inflation Reduction Act, including major changes to Part D funding, the direct subsidy, and risk-score methodology, which they said have made risk adjustment much more important and are driving interest in separating medical and pharmacy contracts. In response to questions from senators, the presenters said the Medicare Advantage plan covers post-65 teacher and state employee retirees, including retirees from state agencies and K-12 public schools. They also explained that the new Part D structure has reduced out-of-pocket costs for members, with a $2,000 annual cap and lower average member spending to reach it, while shifting more cost to the plan. No votes were taken and no formal action was reported; the committee simply received the update and was told to expect further information after the April rate notice. The meeting adjourned with the committee scheduled to return on May 13.

Transcript Highlights:

• States Small Business Administration in the definition of historically underutilized businesses for contracting
• small businesses owned and controlled by veterans are included. ...receive equal consideration in contracting
• been determined to have suffered discrimination and or had been underutilized in their pursuit of contracts
• and one of the proposals was to create a separate category with incentives but not requirements to contract
• State contracts in the past have shown us how difficult the process can be.

Bills: SB 390, SB 1197, SB 1271

Keywords: veteran-owned businesses, state contracting, historically underutilized business, economic opportunity, small business, economic development, veterans, certification, Texas legislation, unmanned aircraft, spaceport, criminal offense, aviation regulations, airspace safety, military installations, concurrent jurisdiction, governor's approval, state agency, land acquisition, Veteran Affairs

Summary: The meeting of the Committee on Veteran Affairs addressed several significant bills aimed at supporting veterans and their businesses. Among the bills discussed was SB390, which seeks to expand the definition of historically underutilized businesses to include all veteran-owned businesses, regardless of disability status. This change aims to create a more equitable economic landscape for veterans and to foster their participation in state procurement opportunities. The committee heard strong testimony supporting this initiative, emphasizing the importance of providing veterans with fair chances in business development.

Transcript Highlights:

• for the Committee on Elections, HB 4153 by Fairly relating to the equitability, uniform grant and contract
• permit for to the Committee on Public Health, HB 4169 by Compost relating to the fire remediation contracts
• HB 4173 by Reynolds relating to the contracting with companies that boycott or discriminate against certain
• rate for taxing unit for the Committee on Ways and Means, HB 4195 by Leo Wilson relating to the contracts
• HB 4235 by Schaffner relating to the postsecondary degree requirements and hiring and contracting by

Transcript Highlights:

• HB 4153 by Fairley relating to the ability to establish uniform grant and contract management standards
• HB 4169 by Compost relating to fire remediation contracts, referred to the Committee on Trade, Workforce
• HB 4173 by Reynolds relating to contracting with companies that boycott or discriminate against certain
• HB 4195 by Leo-Wilson relating to contracts with the acceptance of money from certain foreign sources
• HB 4235 by Schaffner, relating to the post-secondary degree requirements in hiring and contracting by

Keywords: 1184, house, all

Transcript Highlights:

• These contracts continue to preserve quality workmanship, strong safety records, and responsible contracting
• By extending LLB contracts for school construction, this bill is instrumental to students and school
• Specifically, they allow school districts to incorporate pre-construction service into the contract,
• Section 2601 of the Public Contracts Code defines skilled and trained workforce as one that meets the
• using them and will promote fairness and equity across all public agencies when contracting.

Keywords: 987, senate, all

Summary: The committee first heard AB 402, which would increase Cal Grant award amounts for students attending private nonprofit colleges and allow community college transfer entitlement awards to be used at those institutions. The author and supporters said the bill would restore award levels to their 2001 value and improve access for low- and middle-income, working, military, and transfer students. Several witnesses from private nonprofit universities, community college districts, and advocacy groups supported the measure. Senators raised concerns about the prior Cal Grant agreement tied to Associate Degree for Transfer participation and about the need to fund broader Cal Grant reforms, but the bill advanced on a unanimous due-pass vote to Senate Appropriations and was placed on call. The committee then took up AB 2067, a sunset extension for lease-lease-back authority for TK-12 school construction through July 1, 2032. The author and supporters from school housing and contractor groups said the method provides flexibility, early collaboration, cost control, and legal certainty for school construction projects. Senators asked how often lease-lease-back and other alternative delivery methods are used, and whether the skilled-and-trained workforce provisions limit competition. Some members objected to the skilled-and-trained requirement, while others said the bill simply preserves an existing tool without changing labor rules. The bill passed on a 6-1 vote, with Senator Ochoa Bogh voting no, and was placed on call. AB 1204, which would revise the Local Control Funding Formula by increasing supplemental and concentration grants, lowering the concentration threshold, adding regional cost adjustments, and setting a minimum annual COLA floor, drew extensive testimony on both sides. Supporters said the bill better reflects regional costs, inflation, and student need, especially for low-income, multilingual, and unhoused students. Opponents, including several school district leaders, argued it would widen funding disparities and divert money from the LCFF base grant, which they said should be the priority. Committee members also questioned the fiscal impact, the proposed 4% COLA floor, and whether the bill had enough research and stakeholder consensus. Despite those concerns, the bill was advanced to Appropriations on a due-pass vote and placed on call. Finally, the committee heard AB 1235, which would require a skilled-and-trained workforce process for CSU design-build projects to align CSU with UC and community college construction rules. Supporters said it would improve training and project quality, while opponents from contractor groups argued it would reduce competition, increase costs, and impose mandates without evidence of better outcomes. Several senators objected to the skilled-and-trained requirement as limiting opportunities for contractors who comply with state law, while others noted the issue was already common in higher education construction. The discussion was still underway when the transcript ended, and no final vote on AB 1235 was captured.

Transcript Highlights:

• hospital directly to a contracted hospital directly to a contracted long-term<01:10:01.280> care
• how they're contracting.
• Uh so uh as part of our contracts?
• > are<01:12:54.719> provisions current contract there are provisions current contract there
• come up with these contracts. come up with these contracts. >> Okay<01:13:16.960> sir.

Bills: SB3263, SB3261

Keywords: student-athletes, name image likeness, NIL, compensation, transparency, University of Hawaii, Title IX, funding, protections, athlete agents, student athletes, endorsement contracts, professional representation, registration requirements, sports law, 912, senate, all

Summary: The joint Senate Committee on Education and Committee on Health and Human Services heard testimony on several bills related to student health and safety, University of Hawaii programs, and workforce development. For SB 2969, which would appropriate funds for the University of Hawaii to expand and sustain the Maui Wildfire Exposure Study and Maui Health Registry, testimony was overwhelmingly supportive. Witnesses described the ongoing physical and mental health impacts of the August 2023 Maui fires, said the study has identified serious untreated conditions and connected participants to care, and emphasized its role in serving survivors and training students. The committee also heard support from the Department of Health, the Alzheimer’s Association, the American Lung Association, Maui residents, and study staff. No vote was taken during the hearing. The committee then heard SB 2657, which would establish an Alzheimer disease and related dementia research center at the University of Hawaii John A. Burns School of Medicine. University of Hawaii and Alzheimer’s Association representatives supported the bill, saying a local center would improve coordination of existing research, build state capacity, and help Hawaii compete for future NIH designation and federal funding. A family member affected by Alzheimer’s also testified in support, citing the disease’s impact in Hawaii. In response to questions, the university said the proposal would follow a five-year phased plan, with the first year funding used to recruit a senior neuroscientist and staff person, at an estimated cost of about $375,000, and that the effort would still strengthen Hawaii’s research infrastructure even if federal funding is not secured. For SB 2612, which clarifies immunity for Department of Education employees and agents who assist students with medication administration under certain conditions, the Department of Education said the bill is intended to protect volunteers and help ensure students can participate in school activities even when staffing is limited. The committee discussed how volunteers would be selected and whether every school would have someone available, and DOE said schools currently rely on health attendants, nurses, and trained volunteers. The committee also briefly discussed liability language and gross negligence exceptions. The hearing then moved to SB 2412, which would fund a bachelor’s degree program in sign language and sign language interpretation at UH Mānoa with a future master’s pathway. Testimony from interpreters, educators, and university officials emphasized the shortage of interpreters, the need to retain local talent, and the program’s role in building a pipeline; university representatives said the initial request would fund a faculty/staff position as a first step, with additional funding needed later. No final committee action or votes were announced in the transcript.

Transcript Highlights:

• Um I'm be no employment contracts.
• So, more about this employment contract.
• boards can give out contracts. boards can give out contracts.
• what would be the point of a contract? what would be the point of a contract?
• 4-year contract then? 4-year contract then?

Keywords: 912, senate, all

Summary: The committees heard testimony on five housing-related measures. SB 2232 would create a three-year tiny home grant pilot program within HHFDC, with annual reporting to HHFDC and the Legislature; testimony was mixed, and the bill was later recommended for passage with amendments, including a full-time housing development specialist, a residential-use-only restriction for the tiny homes, and a blanked appropriation. SB 2192 would bar county down-zoning that reduces housing capacity unless equivalent capacity is added elsewhere in the county; it drew support from housing advocates and comments from planning officials, and was also recommended for passage with amendments. SB 2378 would clarify insurance requirements for single- and multifamily projects seeking expedited county permitting; engineers and housing groups supported it, while one testifier opposed it, and it was recommended for passage with a technical amendment. SB 2524 would appropriate funds to the City and County of Honolulu for housing-related departments to comply with prior acts; the Honolulu department supported it, and members asked about prior spending and funding sources. SB 2398 would require residential housing utility availability maps; the Honolulu Board of Water Supply opposed the bill as written, citing infrastructure security, accuracy, liability, and administrative burden concerns, while supporters said it would improve transparency for developers. The chair proposed amendments to make the maps broad and geographic rather than parcel-specific, remove contested-case and reliance provisions, allow disclaimer language, and change the date; the bill was then recommended for passage with amendments, with one member noting reservations. All five measures were ultimately passed out of committee with amendments, with votes recorded and some members excused.

Transcript Highlights:

• And then I'm going to go to your contract that you have.
• So, what is the contract now that you're paying out?
• Our contract.
• Our contract doesn't cover that, so we would have to increase the contract for a substantial additional
• We also have a variety of funding from other state contracts, local contracts, federal programs, as well

Transcript Highlights:

• and under medical contract and a clergy contract.
• and under medical contract and a clergy contract.
• They're appropriately discussing the contract among themselves, and it's probably a bad idea to force
• that be public and open would just be impossible to negotiate a contract that way.
• <01:18:40.360> vacation inner workings of the contract vacation inner workings of the contract

Keywords: 928, house, all

Summary: The committee first took up House Bill 313, and Representative Perez moved to retain the bill, saying it needed work and was not ready as written. Representative Smith supported that approach, and the motion to retain passed 18-0. The committee then considered House Bill 391, an anti-SLAPP measure. Representative Smith and others argued the bill was too broad, could create litigation and discovery disputes, and might even be read to affect criminal cases. The committee voted 18-0 to retain HB 391 as well, and the chair agreed to place it on consent with a report to be prepared. The committee next heard House Bill 462, establishing a cause of action for unwarranted video imaging of residential properties. Representative McFarland moved to retain, saying the bill raised First Amendment and property-rights concerns. The motion passed 18-0. The committee then took up House Bill 509, a fiscal note bill requiring reporting related to forfeitures. Members on both sides discussed the bill’s cost, the burden of collecting and collating the data, possible duplication across fiscal years, and whether the information was already being collected. The OTP motion passed 11-7, and Chairman Lynn asked Representative McFarland to prepare the report; a minority report was anticipated. Finally, the committee considered House Bill 520, which would authorize Department of Education hearing officers to issue subpoenas. Representative Kuttab supported the bill, saying similar authority exists in other agencies and states. Opponents argued the DOE already can obtain information through the attorney general, that the bill would create an unbalanced internal enforcement process, and that the subpoena authority was not tied to the curriculum-related concerns raised in testimony. Representative Ter offered Amendment 0842H to shift subpoena authority from DOE hearing officers to the attorney general; the amendment failed 7-11. The committee then voted on the bill as amended, and the OTP motion passed 10-8, with a minority report also requested.

Transcript Highlights:

• BUT THEY SERVE AS CONTRACT MANAGERS FOR THE VENDORS THAT PROVIDE THE SERVICES DIRECTLY TO THE HOMEOWNERS
• TIMES TO THE ASSOCIATIONS TO SAY HAVE YOU TAKEN YOUR VOTE YET, ARE YOU READY, HAVE YOU SIGN THE CONTRACT
• SO HIGH LEVEL LIKE SUPER HIGH LEVEL, WE SIGNED THE CONTRACT IN 2018 TO BUILD THE SYSTEM FOR THE STATE
• CONTINGENT THOUGH LIVE IT IS SO WE OFFICIALLY MOVED IT TO JANUARY 2027 IN THE CONTRACT BUT WE WANT TO
• DO A CONTRACT AMENDMENT TO GET A BETTER DEAL OUT OF IT SO WE DID FULLY NEGOTIATE THAT ON THE EXECUTIVE

Transcript Highlights:

• simply capping the reimbursement rate for inmates who receive medical care outside of their normal contract
• talking about is if an inmate in a county jail in Martin County, as it stands right now, the jail contracts
• And so there is a concern that outside of a contract, there really is no predictability for the taxpayer
• impact on emergency medical transportation services and health care providers that don’t have a contract
• And so there is a concern that outside of a contract, there really is no, there's no predictability for

Summary: The Intergovernmental Affairs Subcommittee heard and passed two measures before receiving a staff presentation on the local bill process and local delegation meetings. HB 4007, by Rep. Snyder, would cap reimbursement for certain inmate emergency medical services in Martin County at 110% of the Medicare rate, with a higher cap if a provider shows it is operating at a loss. Snyder said the bill is intended to create predictability and save taxpayer dollars; members asked about fiscal effects and whether other counties could adopt similar language. Public testimony came in support from Martin County and related local officials, and the bill was reported favorably by a 17-0 vote. The committee also passed HM 4005, by Rep. Daly, which urges Congress to increase Florida National Guard force structure. Daly argued Florida’s troop allocation is outdated and inadequate for the state’s population and disaster demands, contributing to burnout and recruiting problems. Members asked about the basis for the current allocation, possible budget and infrastructure impacts, and the National Guard’s needs; there was no opposition or public testimony, and the memorial was reported favorably by a 17-0 vote. After the votes, Reps. Holcomb and Kendall gave a detailed presentation explaining how local bills differ from general laws, constitutional limits on local legislation, required local delegation meetings and notice, certification and economic impact forms, and amendment procedures. Members asked several process questions, including about multi-county delegations and Miami-Dade’s special status. The meeting ended with a few recognitions and adjournment before session.

Transcript Highlights:

• We're able to contract out a lot of road work this year.
• Well, we were able to put in some contracts this year to hire some contractors to be proactive and get
• We're actually now able to contract out a lot of the road work, and it's really helped us to get that
• So if that, you know, and then the other piece is developing and executing contracts.
• , state agency contracts, to kind of speed up the bidding process.

Summary: The Agriculture and Natural Resources Budget Committee met with a quorum and heard two Department of Agriculture presentations. First, the Director of Rural and Family Lands described the Rural and Family Lands Protection Program, which buys development rights through perpetual conservation easements on private agricultural land to preserve farming, wildlife habitat, water resources, and open space while keeping land taxable and avoiding state maintenance costs. He said the program has expanded rapidly since 2023 through streamlined applications, templates, and an online portal, increasing acreage protected from about 66,000 acres through 2022 to more than 210,000 acres, with a higher share in the Florida wildlife corridor. He also said review times were reduced by more than 85 days and that projects under $5 million can move faster under statutory authority. The department is seeking $200 million in nonrecurring funding on top of $100 million recurring, citing 203 existing projects and 224 new applications totaling nearly $2 billion in estimated need. Members asked about the scientific ranking process, South Florida participation, project prioritization, maintenance responsibilities, and whether landowners can exit the program; staff said land remains privately owned, easements are in perpetuity, and partnerships and cost-sharing are prioritized. The committee then heard from the Florida Forest Service director, who outlined the agency’s dual mission of wildfire response and land management. He said the service responds to roughly 2,200 to 2,500 wildfires annually, manages 38 state forests and one ranch totaling more than 1.1 million acres, and receives about 15 million visitors each year. He highlighted the impact of Senate Bill 1638 gaming compact funds, which provided $32 million for land management, recreation, equipment, roads, invasive species control, habitat restoration, prescribed burning, reforestation, and staffing support. He said Florida leads the nation in prescribed fire, with 277,818 acres burned on state forests last year and 2.47 million acres burned statewide, and noted ongoing restoration work such as Picayune Strand. He also described challenges including aging equipment, deferred maintenance, contractor availability, and timber market instability caused by hurricanes and mill closures, and suggested longer-term funding and a higher capital asset allowance. Members discussed timber markets, public communication and marketing, recreation fees, and coordination with other agencies and FDOT. The meeting ended with the chair noting that next week’s meeting would report out agency conversations and budget recommendations, and the committee rose.

Transcript Highlights:

• It's a contracts bill. It is good framework for good efficient government.
• simple, very straightforward.<00:02:18.240> It's<00:02:18.360> a<00:02:18.400> contracts
• It's a contracts bill. straightforward. It's a contracts bill.
• Inc. in Lexington, Create in Bowling Green, Sprocket in Western Kentucky, and then SOAR has that contract
• then SOAR has that contract for Eastern. then SOAR has that contract for Eastern.

Keywords: Meeting Start: 00:00 Roll Call: 00:21 HB 480 Discussion: 01:40 HB 480 Voting: 02:36 HB 577 Discussion: 05:14 HB 577 Voting: 08:38 HB 692 Discussion: 09:23 HB 692 Voting: 14:00 HB 869 Discussion: 15:21 HB 869 Voting: 18:56, 958, all

Transcript Highlights:

• So we get an audit contract, and on the audit contract are a couple of items: one is a separate federal
• audits and issue those separately from the financial statement audit, yet it's on the same audit contract
• Chair and Senator, every agency contracts with some type of auditors for their financials; they can hire
• annual financial... ...and contract with public entities to conduct their annual financial audits.
• And an accounting firm will have an opportunity to bid on that audit contract for the statewide federal

Bills: SB145, SB143

Keywords: auditing, financial reporting, state auditor, public agencies, capital outlay, compliance, federal audits, agriculture, New Mexico Department of Agriculture, fee update, regulatory fees, egg inspection, egg grading, egg dealer, pesticide control, pesticide registration, pesticide applicator, pest management consultant, plant protection, nursery license

Transcript Highlights:

• Every entity that has a grant with us has a contract with deliverables, including reporting deliverables
• And so, are those the contracts that you're talking about?
• Those contracts are already in place, and you have some very rigorous criteria for those?
• So those are all part of those contract requirements today. Again, we have a dashboard.
• So I do hope that there will be an audited process and that in the contract, as a part of the grant,

Transcript Highlights:

• The bill does allow MDE to contract with KARE.
• Those schools can still contract with the district to use those buses.
• contract.
• contract.
• contract.

Keywords: 1187, senate, all

Transcript Highlights:

• We have ongoing construction contracts of $248.9 million.
• Our contract maintenance budget is just a little over $6 million.
• That is being done by Hasey Contracting, and that project was just a little over $11 million.
• Going on to contract maintenance projects, we do a lot of contract maintenance projects also with the
• Those are basically all throughout the district, contract maintenance-type work, $13.7 million.

Keywords: 996, all

Summary: The committee heard a District 5 New Mexico Department of Transportation presentation from Rhonda Lopez, who reviewed the district’s FY26 budget, staffing vacancies, and the status of special appropriations from 2020 through 2025. She described numerous completed and ongoing projects across the district, including roadway overlays, bridge work, intersection improvements, ADA upgrades, and maintenance projects, and also summarized STIP, TPF, LGRF, and equipment needs. Members asked about a guardrail issue near U.S. 64 in Hogback, the 5% local match for TPF projects, and the status of the New Mexico 371/U.S. 36 intersection funding agreement with the Navajo Nation; DOT said the match is secured or waived where applicable and that the Navajo agreement is nearly finalized. The committee then heard House Bill 270, which would amend the Public Works Apprentice Training Act to require contributions to apprenticeship and training programs for certain public works contracts, including highway-related work, while creating an exception where no approved apprenticeship program exists for a trade classification. The sponsor said the bill was intended to strengthen workforce development and support apprenticeship training. Contractors and asphalt industry representatives opposed the bill, arguing it would raise road project costs and duplicate existing training contributions. A motion to table failed on a tie, and a later motion to pass also failed on a tie, leaving the bill in committee. Next, the committee heard House Bill 322, which would create a transportation trust fund and transportation program fund, dedicate additional revenue sources including a portion of electricity GRT and motor vehicle excise tax, and begin annual distributions for federal matching funds in 2029. The sponsor and supporters said the bill would help address a multi-billion-dollar road funding gap, improve maintenance, and provide a stable source for matching federal dollars. Some members raised concerns about the electricity tax component, its effect on utility bills, and overlap with recently enacted transportation financing measures; others supported the concept but questioned timing and funding priorities. A motion on the bill resulted in a tie and failed, leaving the bill in committee. The meeting concluded with a District 4 NMDOT legislative presentation. The district outlined its geography, budget, staffing vacancy rate, completed special appropriations, active construction and maintenance projects, wildfire-related recovery work, local government funding allocations, and equipment replacement needs. Members asked about school district uses of local funding and the impact of aging equipment and weather on maintenance costs. The presentation ended without any formal action on District 4 items, and the committee adjourned.

Transcript Highlights:

• finance, alternative delivery method, construction project, procurement, discretionary grants, and contracts
• I'd just like to ask DFA a couple questions on the BDO contract if I can.
• I'd just like to ask DFA a couple questions on the BDO contract if I can.
• Just whoever knows the most about the BDO contract. All right.
• You know, the Horn or BDO contract is really administering the program.

Summary: The Arkansas Legislative Council meeting began with approval of the December 2025 minutes and a presentation from the Bureau of Legislative Research on the December revenue report. Dr. Carlos Silva said gross collections were about $4.02 billion, up slightly from the prior year, and net available for distribution was also above last year but down modestly from the previous month because of higher-than-expected corporate income tax refunds. Members asked about corporate tax trends, tariffs, and inflation, and Silva said it was too early to call the corporate decline a trend and that tariff effects would likely show up mainly in sales tax collections. The council then adopted several subcommittee reports, including the Executive Committee Subcommittee, Administrative Rules, Hospital/Medicaid/Developmental Disabilities, Occupational Licensing Review, PEER, Review, State Insurance Program Oversight, and Personnel. The PEER report drew the most debate because of a Department of Agriculture grant tied to Perry County and Central Arkansas Water; members discussed whether removing the Perry County portion would affect the grant’s competitiveness, and the report was ultimately adopted with the item included. The Review Subcommittee also heard questions about a BDO contract for the rural health transformation program, with DFA explaining that the contractor would manage the program while state agencies would make funding decisions consistent with the state’s application. A major portion of the meeting focused on the Education Freedom Account appropriation tied to LEARNS. Senators and representatives debated whether the program helps families or diverts money from public schools, with supporters arguing it funds students and choice and opponents arguing it is costly, vulnerable to fraud, and harms public school funding. Department of Education officials said roughly 28,000 private school students and 17,500 homeschool students were participating, that EFA students must submit standardized tests annually, and that the requested $32 million was to cover existing participants. After multiple substitute motions and extended debate, the body rejected a motion to strip out the $32 million and then adopted the report and related motions. The meeting ended after routine approvals of additional agency items and adjournment.

Transcript Highlights:

• CMS won't allow us in order to execute that contract. We can't obligate that funding.
• CMS won't allow us in order to execute that contract.
• She said this $198 million must have signed contracts or contractual agreements for all $198 million
• We could use a full-time FTE or we could contract through— They could be temp employees.
• We could use a full-time FTE or we could contract through them.

Keywords: 908, all

Summary: The Appropriations Division met in a work session on the draft Rural Health Transformation appropriations bill, 25.1392.01000, with no public testimony taken. Legislative Council and the Department of Health and Human Services walked through the bill, which would appropriate about $397.8 million in federal grant funds over two federal fiscal years, provide transfer authority, allow certain federal funds to be used for salaries and wages without counting against existing transfer limits, and authorize OMB to adjust other agencies’ spending authority if they receive grant awards through HHS. The bill also includes several temporary statutory exemptions to help implement the program, plus recipient acknowledgement/reporting requirements, periodic reports to Legislative Management, and an immediate effective date upon filing. Committee discussion focused heavily on how the federal rural health transformation money can be used and administered. Department officials explained that CMS will review projects for allowability and sustainability, that the state has flexibility to move funds among categories, and that the grant is limited to 10% administrative costs. Members asked about whether the funding could support renovations, equipment, ambulances, bulk purchasing, food distribution, and other rural health ideas, and were told many details will depend on CMS approval and the eventual applications. Questions also addressed cash flow, timing of obligations and reimbursements, FTE funding, and whether grant recipients should be told the program will not continue beyond the federal period; officials said the language is meant to prevent expectations of automatic continuation, not to bar future legislative action. The committee also discussed the bill’s use of a two-year appropriation amount, with staff explaining that the state must appropriate enough authority to cover the federal grant cycle and that unused authority would lapse if the full amount is not received or spent. Members raised concerns about whether the bill’s language could limit creativity or future program design, but department officials and several members emphasized the need for flexibility because CMS may reject overly specific directives. After discussion, the committee voted to recommend the bill draft to the full committee; the motion carried on a roll call vote, and the chair said the full Joint Appropriations Committee would take up the bill at the special session next week.