Transcript Highlights:

• persons making certain electioneering communications, and to permit political committees to make disbursements
• requirements to electioneering communications reports and allows political committees to make disbursements
• tackle another bipartisan legislative recommendation from the FEC, allowing committees to make disbursements

Bills: HB8897 , HB3106 , HR1398 , HB8738 , HB3535 , HB7574 , HB8535 , HB8168 , HB9388 , HB9391 , HB8874 , HB9328 , HB8770 , HB7809 , HB6332

Keywords: FEC, Federal Election Commission, campaign finance, electioneering communications, political committees, electronic filing, e-filing, disclosure reports, campaign reporting, disbursements, checkless payments, payment methods, administrative reform, election law, FECA, 52 U.S.C. 30104, 52 U.S.C. 30102, campaign administration, political spending, Department of Homeland Security

Transcript Highlights:

• All disbursements from municipal funds were not made with pre-numbered checks, and electronic disbursements
• for the following disbursements.
• the following disbursements. disbursements revealed supporting documentation was not maintained with
• Our review of selected disbursements revealed improper disbursements totaling $8,333.
• Our review of selected disbursements revealed improper disbursements totaling $8,333.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• Cash disbursement journals for 2024 did not include all disbursements and were not reconciled to total
• Review of selected disbursements revealed questionable disbursements totaling 21,741, a little over 8,000
• Review of selected disbursements revealed questionable disbursements totaling $21,741, a little over
• A review of travel disbursements revealed that supporting documentation was not maintained for disbursements
• A review of travel disbursements revealed that supporting documentation was not maintained for disbursements

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• All disbursements from municipal funds were not made with pre-numbered checks, and electronic disbursements
• Our review of selected disbursements revealed improper disbursements totaling $8,333.
• Our review of selected disbursements revealed improper disbursements totaling $8,333.
• Review of selected disbursements revealed $25,667 in undocumented disbursements, the validity of which
• Review of selected disbursements revealed $25,667 in undocumented disbursements, the validity of which

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the prior minutes and then received a series of audit and compliance updates. Staff reported on delinquent private water and sewer reports, delinquent 2013-2023 water reports, and several municipal accounting code noncompliance cases. Denning and Gum Springs were recommended to be removed from the 60-day clock after staff visits showed improved records, while Fargo, Lead Hill, Almy, Jericho, Haynes, Biggers, Gilmore, and Holly Grove were discussed for repeat findings involving missing audits, poor bookkeeping, unpaid or misapplied street funds, deficit balances, and other accounting deficiencies. Several of these entities were given additional time or had reports filed without objection, while others were deferred for later review. Fargo’s mayor said the town had been understaffed and was working to improve its accounting systems; the committee voted to defer the matter to the August meeting. Lead Hill’s mayor described efforts to complete overdue water audits and improve office procedures, and the committee also postponed action for 60 days. Almy’s mayor and recorder-treasurer were present, and the committee placed the town on the 60-day clock for repeat accounting issues. Biggers and Gilmore both acknowledged long-running audit problems and said they were working with auditors and the IRS; their reports were filed. Holly Grove’s treasurer said she had only recently taken the position, and that report was filed as well. The committee spent considerable time on the street-fund misuse cases for Jericho and Haynes. Jericho was found to have exceeded the statutory threshold tied to fines and costs, with staff noting the town had since become current on its repayment plan; the committee deferred the report to September. Haynes was also behind on its repayment plan for street funds, with staff saying the town had recently made up the shortfall and was current as of the meeting, but the committee still deferred the report to September. Members and staff also discussed how the speed-trap law is applied, whether certain fines and costs count toward the threshold, and the role of the prosecuting attorney in deciding whether to take further action. The committee then reviewed a special report on the Pulaski County Regional Solid Waste Management District, which had six findings involving board approval of payroll and contracts, credit card documentation, vehicle and cell phone use, competitive bidding, electronic funds controls, and unusually high advertising spending. District Director Craig Douglas said the board had delegated some authority, that receipts were missing during a temporary staffing gap, and that advertising was needed to educate the public; he also defended the sale of trailers and other equipment as a way to exit the trailer business. Several members questioned the explanations and the low resale value of equipment, but the committee ultimately deferred the report to September. The meeting also included a recognition of accounting students interning with audit staff and a final set of actions on deferred water and sewer reports: 11 were filed, seven were deferred for lack of proper responses, and a private report on Shannon Hills Water, Sewer, and Fire Department was noted as involving misappropriation by an office manager and inadequate internal controls.

Transcript Highlights:

• All disbursements for municipal funds were not made with pre-numbered checks, and electronic disbursements
• Cash receipts and disbursement journals were not established.
• disbursements, in noncompliance with Arkansas Code.
• Just over $3,800, or 12% of disbursements in 2024, lacked documentation, so the validity of these disbursements
• Receipts and disbursement journals were not properly posted.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee adopted the minutes from its June 4 meeting and then received a series of updates on delinquent municipal and water/sewer reports. Staff reported that three entities had forfeited a combined just under $126,000 in state turnback under Act 453 of 2023 for failure to file required reports, and that several other cities and utilities remained delinquent or were moving toward compliance. The committee also heard that Fargo would be placed on the 50% turnback escrow process for continued noncompliance, while Ulm, Montrose, and several other entities were removed from or deferred in the process after making progress or providing responses. Boxite remained the only private city report still outstanding among one group of filings, and the committee filed or deferred reports as recommended by staff throughout the meeting. Several local officials appeared to explain repeat audit findings and corrective actions. The mayor of Falk described efforts to catch up on audits and said the city had enough money on hand to pay for them, though the committee emphasized that the city had already lost turnback funds under the statute. Lead Hill’s recorder-treasurer said the town had implemented new procedures, including electronic payment ordinances, fixed asset records, and improved receipt and reconciliation practices, but the committee still started the 60-day clock on the report. St. Joe’s new mayor and recorder-treasurer said the town had made substantial progress, so staff withdrew its earlier recommendation to start the clock. Marion County’s treasurer said computer conversion problems were being corrected, and the committee deferred the report until the county judge and sheriff could appear. The committee then reviewed a long list of county, municipal, and utility audit findings, many of them repeat issues involving missing documentation, weak bank reconciliation controls, improper disbursements, and failure to follow municipal accounting law. Notable matters included Cotton Plant’s large unpaid payroll tax liabilities and deficit fund balance, Jefferson County’s procurement and contract issues and an unresolved $305,000 solar panel payment, Wabaseka’s long-running payroll tax delinquency and deficit, and multiple private water and sewer reports involving missing receipts, unsupported payments, or uncollateralized cash balances. Many reports were filed without objection, some were deferred for later response, and several findings involving possible misuse of public funds or improper payments were referred to the prosecuting attorney and Attorney General’s office.

Transcript Highlights:

• Cash disbursement journals for '24 did not include all disbursements and were not reconciled to total
• disbursements per the bank.
• Review of selected disbursements revealed questionable disbursements totaling $21,741.
• Review of selected disbursements revealed questionable disbursements totaling $21,741, $8,000, a little
• A review of travel disbursements revealed that supporting documentation was not maintained for disbursements

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee began with approval of the prior meeting minutes and then received updates on delinquent private water and sewer reports. Staff reported that 19 of 43 original entities for the 2022 reporting year had had turnback reinstated, while 24 remained in escrow; for the 2023 reporting year, 59 of 64 entities had filed, leaving five still outstanding. The committee also heard that Adona had come into substantial compliance with municipal accounting law, and it voted to file that report and discontinue withholding turnback. It then voted to start the 60-day clock and file the report for Gum Springs after hearing repeated findings involving budgeting, disbursements, payroll, and Act 833 funds, with city officials saying they had begun correcting records and were seeking help from the Municipal League and a city attorney. Fargo was deferred because the mayor was absent due to illness. The committee next considered Denning, where staff described repeated and serious accounting problems over 2022-2024, including unauthorized payments, missing documentation, weak payroll controls, and improper handling of funds. The mayor and recorder-treasurer said prior records were disorganized and that they were now working with an attorney, CPA help, and new software; the committee voted to start the 60-day clock and file the report. Green Forest’s report, involving a fixed-asset listing issue after the mayor’s death, was filed. Several private water and sewer reports were either filed or deferred depending on whether responses had been received, and the committee announced its March meeting would be held in Room 149 because of renovations. The committee then reviewed a series of referred reports involving alleged financial irregularities. In Elaine, the fire chief’s questionable purchases were referred and filed. In Strong, staff described undeposited garbage-bag receipts, improper payments for private dumpster service and other expenditures, payroll tax penalties, and deficit fund balances; the mayor said controls had been improved, but the committee deferred the report to March. The Faulkner County Fair Association report found undocumented cash withdrawals, questionable disbursements, and inadequately documented cash payments to a carnival vendor; the committee filed it. Brooklyn’s report involved a fraudulent direct-deposit change, and Mineral Springs’ report involved transfers from the cemetery fund, employee loans, overpayments, and travel reimbursement issues; both were filed. Additional reports included Rondo, where the recorder-treasurer explained missing computers and fuel purchases tied to personal vehicles, and the committee filed the report; Waldo, where the mayor had been overpaid due to extra biweekly payments, which was filed; Columbia County, where a floodplain management contract lacked an authorizing ordinance, which was filed; and several private water-system reports, some filed and others deferred for lack of responses. Carlisle’s report showed large but improving misstatements in financial records, and the committee filed it after hearing that new software and training had reduced prior problems. Caddo Valley’s report prompted a lengthy discussion about CDs and interest recognition; staff explained that principal balances should be reflected as city assets and interest should be recorded when earned or reported by the bank, and the report was filed. Prairie County’s budget overrun and road-fund issues were discussed at length, with the judge explaining equipment and weather-related costs and staff clarifying the distinction between road funds and locally approved sales-tax uses; the report was filed. Finally, the committee deferred a Cross County Rural Water Association matter after learning it had not filed with Legislative Audit since 2002-2003 despite receiving significant state funding, and members expressed concern about the long gap in filings.

Transcript Highlights:

• All disbursements from municipal funds were not made with pre-numbered checks, and electronic disbursements
• disbursements could not be determined.
• The review of selected disbursements revealed improper disbursements totaling $8,333.
• Review of selected disbursements revealed $25,667 in undocumented disbursements, the validity of which
• Under Arkansas Code, a disbursement of municipal funds shall have adequate documentation for the disbursements

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

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

Transcript Highlights:

• disbursements in noncompliance with code.
• disbursements in non-compliance with code.
• Cash disbursements journals for 2024 did not include all disbursements and were not reconciled to total
• Review of selected disbursements revealed questionable disbursements totaling $21,741, a little over
• A review of travel disbursements revealed that supporting documentation was not maintained for disbursements

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee began with prayer and approval of the January 8 minutes, then received updates on delinquent private water and sewer reports. Staff reported that for the 2022 reports, 19 of 43 entities had had their turnback reinstated, while 24 remained in escrow; for the 2023 reports, 59 of 64 entities had filed, leaving five outstanding. The committee also filed a report on Adona, where staff said the city had made enough progress toward substantial compliance with municipal accounting laws to discontinue withholding turnback, and the committee adopted that recommendation. The bulk of the meeting focused on municipal accounting noncompliance cases. Gum Springs and Denning were presented with extensive repeat findings involving budgets not adopted by ordinance or resolution, missing or incomplete bank reconciliations, inadequate receipts and disbursement records, payroll issues, and improper handling of Act 833 funds or other city money. Both cities’ mayors and recorders-treasurers testified about efforts to correct records, obtain training, and work with the Municipal League; the committee voted to start the 60-day turnback-withholding clock for both and then filed the reports. Fargo was deferred because no city representative was present. Additional reports included Green Forest, Elaine, Strong, Brooklyn, Mineral Springs, Rondo, Waldo, Columbia County, and several private water and sewer entities. Strong drew significant concern over missing garbage-bag revenue, improper fund transfers, and deficit balances; the committee deferred that report to the March meeting. The committee also heard investigative or referred reports on the Faulkner County Fair Association, Brooklyn payroll direct-deposit fraud, and other entities with questionable disbursements or recordkeeping. In several cases, staff recommended filing the reports after responses were received; in others, the committee deferred action when responses were lacking or representatives were absent. The meeting ended with a motion to defer a Cross County Rural Water matter so the entity could appear at the next meeting.

Transcript Highlights:

• initial and second disbursements of HAP Round 5, and the initial disbursements of HAP Round 6.
• initial and second disbursements of FY 26-27 funding.
• , they must obtain it within 12 months of that initial disbursement.
• These will effectively be additional disbursements.
• We are absolutely working on getting disbursements out quicker.

Summary: The subcommittee heard several May Revision proposals related to the state’s housing and homelessness reorganization. On the first item, administration and Finance staff described technical adjustments to move administrative positions and resources between the California Housing and Homelessness Agency, HCD, and Cal ICH, plus authority for a chief deputy director at the new Housing Development Finance Committee. The LAO recommended approval but asked for clarification on funding for the chief deputy position. Several senators questioned whether the staffing shifts would reduce Cal ICH’s capacity and whether adding communications support and a new executive position was appropriate absent new housing funding; the item was held open. The second item proposed a new $100 million CalHFA Disaster Rebuilding Fund, with $56 million General Fund and $44 million in existing National Mortgage Settlement funds, to help disaster-impacted homeowners access construction financing through tools such as a loan loss guarantee and interest rate buy-downs. CalHFA said the fund would help close the gap between insurance proceeds and rebuilding costs and would work through approved lenders. The LAO raised concerns about the lack of alternatives analysis, the broad delegation in the trailer bill, and the General Fund cost. Senators pressed for more detail on the estimated number of homeowners served, lender and homeowner eligibility, equity safeguards, and the role of the Legislature in program design; the item was held open. The third item was trailer bill language for HAP Round 7, including accountability metrics, pro-housing designation requirements for certain large cities and counties, local match requirements, and a mechanism to recapture unspent funds. HCD said the proposal would streamline reporting by using one consistent set of system performance measures and would phase in the new requirements. The LAO questioned the timing, the burden of pro-housing designation, the size and source of the local match, and whether the proposal conflicted with the Legislature’s prior goal of getting funds out quickly. Several senators criticized the added requirements and the lack of new funding, while others said the proposal could improve accountability and reduce administrative burden by reusing existing plans. The item was also held open. The fourth item began a proposal to reduce local development impact fees on state-funded affordable housing projects, framed as a condition on competitive multifamily funding rather than a statewide mandate. The presentation started but the transcript cuts off before questions or action on that item.

Transcript Highlights:

• initial and second disbursements of HAP Round 5, and the initial disbursements of HAP Round 6.
• initial and second disbursements of FY 2026-27 funding.
• , they must obtain it within 12 months of that initial disbursement.
• These will effectively be additional disbursements.
• Is there some kind of prerequisite for what that first disbursement would look like for Round 7?

Transcript Highlights:

• Adequate sporting documentation was not maintained for all disbursements.
• Additionally, timesheets were not maintained for all payroll disbursements.
• Additionally, timesheets were not maintained for all payroll disbursements.
• Additionally, timesheets were not maintained for all payroll disbursements.
• Additionally, timesheets were not maintained for all payroll disbursements.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the February 12 minutes and then received updates on delinquent municipal water and sewer reports, noting substantial progress in bringing cities back into compliance. Several items were deferred at the request of local officials, including Fargo’s municipal accounting code report, Jericho’s misuse of street funds matter, Biggers, Holly Grove, Gilmore, and several private water and sewer reports lacking proper responses. The committee also filed a number of reports with no questions or with resolved findings. A lengthy portion of the meeting focused on repeat audit findings and management responses. The City of Strong’s mayor described corrective steps on undeposited funds, improper use of solid waste funds, unsupported spending, IRS payroll tax issues, accounting controls, restricted fund transfers, and budget overruns; the committee commended the city’s efforts and filed the report. Calhoun County’s report, involving improper county spending for an appreciation banquet and altered receipts in the collector’s office, was also filed after discussion about educating local officials on constitutional spending limits. Other reports filed included Salem, Briarcliffe, Compton Water Association, and Montgomery County Regional Public Water Authority, while several private water reports were deferred or referred to prosecutors and the Attorney General. The committee reviewed a major regional solid waste management districts report, with significant findings for Pulaski County and Faulkner County involving unapproved payroll items, missing documentation, vehicle and cell phone use, lack of competitive bids, and weak internal controls; Benton County had fewer issues, and several districts had no findings. On motion, the Pulaski County report was deferred so district representatives could answer questions. The committee also heard from Nevada County, where unauthorized withdrawals and interlocal landfill agreement problems were discussed; the county judge said the issues were being corrected, and the report was filed. Later, the committee heard from the City of Grubbs about long-standing IRS debt and from Cross County Rural Water System about overdue audit posting and water quality problems; both witnesses described corrective efforts and ongoing funding or infrastructure projects, and the committee filed the reports after extensive discussion.

Transcript Highlights:

• There are six appropriation disbursements reports.
• You can compare appropriations to your disbursement.
• You can compare appropriations to your disbursement report.
• You can compare disbursements for two fiscal years.
• You can look at your disbursements by line item report.

Summary: The Joint Legislative Auditing Committee met to receive updates on Transparency Florida and related transparency tools. The Governor’s Office and the Department of Financial Services described the Transparency Florida website, the state payment and contract systems, and the local-government financial reporting system (Logger X/XBRL), emphasizing public access, searchable payment and contract data, downloadable reports, and ongoing upgrades. Members asked whether school districts and the Department of Corrections are included in these systems; staff explained that state agencies like Corrections are covered through Transparency Florida, FACTS, and the state financial reports, while Logger X is for local governments. Committee staff reported that the Transparency Florida Act’s requirements have been met and noted that any new recommendations would need legislative action; members were invited to submit recommendations by October 30. The committee then reviewed repeated audit findings for local governments and educational entities. Staff explained the statutory process for “three-peat” findings: first requesting an updated written corrective-action status, then possibly requiring an appearance before the committee, and finally taking further action if findings remain uncorrected. Most entities were recommended for written updates, while the City of Daytona Beach was singled out for an in-person appearance because of a repeated finding involving unexpended building permit balances. Members also raised questions about specific entities, including McIntosh, White Springs, Pahokee, and the Fred R. Wilson Memorial Law Library special district, with staff explaining the nature of the findings and noting that some entities may warrant further review. The committee adopted a motion to accept staff’s recommendations and to send letters to entities with uncorrected audit findings in late-filed 2023-24 audit reports. It also approved a motion directing the Auditor General and OPPAGA to conduct the required audit of the Department of the Lottery for fiscal year 2025-26, with the Auditor General handling financial, internal control, and compliance work and OPPAGA preparing operational recommendations. The meeting concluded with notice that the next meeting was tentatively scheduled for November 3 at 3:30 p.m., followed by adjournment.

Transcript Highlights:

• There had been concerns about the Department of Education's timely disbursement of project funding.
• I was last year to talk about the disbursements.
• Applications or how complicated a disbursement might be?
• You have all the information for reimbursement or a disbursement.
• I want to ask you right now about your payments or disbursements from the department.

Transcript Highlights:

• initial and second disbursements of HAP Round 5, and the initial disbursement of HAP Round 6.
• , they must obtain it within 12 months of initial disbursement.
• To be eligible for the fourth disbursement of HAP Round 6—I'm sorry, the second disbursement of fiscal
• First Round 6 disbursement. Remember, that's from the 2024-25 budget.
• And they're just getting their first disbursement this month.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• It bodes well for disbursements coming through to the program in this fiscal year.
• And then, of course, the disbursements.
• Disbursements, Mr. Chairman and members, the disbursements that were processed in fiscal year 2024.
• They end up delaying the disbursements for the project.
• That have just really delayed those disbursements getting out the door.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• disbursement disbursement of<00:05:30.320><c> the</c><00:05:30.440><c> fund?
• </c> without change to the disbursement without change to the disbursement approach. approach. approach
• We're changing the disbursement.
• We're changing<00:10:54.400><c> the</c><00:10:54.480><c> disbursement.
• </c><00:10:55.200><c> We're</c> changing the disbursement. We're changing the disbursement.

Summary: The conference committee on House File 3900 met with a quorum, introduced members and staff, and received a nonpartisan walkthrough of the bill. Staff explained that the proposal would change the permanent school fund’s distribution formula from interest and dividends to a statutory payout based on 4.5% of the fund’s average value over the previous three fiscal years, with the Commissioner of Management and Budget responsible for determining and transferring the distributable amount. The Senate version differed by adding language requiring a two-thirds vote of each legislative house to change the distribution policy or apportionment. Members then debated whether a future legislature could increase the payout and whether the constitutional language would sufficiently protect the fund’s purchasing power. Senator Farnsworth argued that a supermajority requirement would help prevent politicization and lock in the fund’s purpose, while Representative Long, Senator Kunesh, Representative Youakim, and Representative O’Driscoll opposed the supermajority as unnecessary and potentially politicizing, emphasizing existing constitutional protections, fiduciary duties, and the legislature’s track record of stewarding school trust lands for students. Staff indicated the language requiring preservation of purchasing power would be a strong safeguard, though the exact legal remedy was unclear. Senator Kunesh moved to adopt the House File 3900 second engrossment as the conference committee report. The committee took a roll call vote and approved the motion 7-1, with Senator Farnsworth voting no. After the vote, Senator Swedzinski offered brief remarks about the historical importance of school trust funds and public education.

Transcript Highlights:

• initial and second disbursements of HAP Round 5, and the initial disbursement of HAP Round 6.
• , they must obtain it within 12 months of initial disbursement.
• To be eligible for the fourth disbursement of HAP Round 6—I'm sorry, the second disbursement of fiscal
• First disbursement of Round 6 money. Remember, that's from the 2024-25 budget.
• 50% of their second disbursement, which, again, they haven't gotten yet.

Transcript Highlights:

• The first question was around the timing of disbursements.
• and disbursements, if folks want to talk about that more.'
• and disbursements, if folks want to talk about that more.'
• and disbursements, if folks want to talk about that more.'
• and disbursements, if folks want to talk about that more.

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• So in that particular process, disbursements go out to a provider only when they achieve actions.
• And number two is the way that the BED program is structured, the way that our office will disburse funding
• So in that particular process, disbursements go out to a provider only when they achieve actions.
• So in that particular process, disbursements go out to a provider only when they achieve actions.
• So in that particular process, disbursements go out to a provider only when they achieve actions.

Committee: All ARKANSAS LEGISLATIVE COUNCIL (ALC)

Transcript Highlights:

• A disbursement test was conducted for the review period, excluding payroll expenditures.
• Disbursements tested were properly posted to the general ledgers.
• A disbursement test was conducted for the review period, the general ledger.
• A disbursements test was conducted for the review period, excluding payroll expenditures.
• Disbursements tested were properly posted to the general ledgers.

Committee: All LEGISLATIVE JOINT AUDITING

Summary: The committee first approved the minutes from the prior meeting and then heard several audit-related reports. The executive committee report noted audit and special reports were scheduled for standing committees and the full Legislative Joint Audit Committee, with one requested report still in progress. The City, County, and Local report covered delinquent private water and sewer audits, reinstatement of turnback funds for entities that filed required reports, and action involving the town of Daisy, which was directed to repay misused street funds at 10% of general fund revenue annually. The education and state agencies reports included higher education audits and state agency findings, with some reports filed and others deferred to the February meeting for additional information or corrective-action details. The committee then took up a special audit of the Charles W. Donaldson Scholars Academy at UA Little Rock. Legislative Audit reported that the program, funded with $10 million in desegregation money plus a $50,000 grant, awarded $1.87 million in scholarships to 379 students, with 116 graduates, but found numerous eligibility and disbursement problems, including scholarships to ineligible students, excessive awards, improper documentation, and unclear disposition of some assets. Committee members questioned UALR representatives about oversight, staffing, and whether funds were properly used, and also heard from Philander Smith College about its limited role in verifying enrollment. Members expressed concern about the program’s results and the lack of detail on accountability, and the committee voted to table the report until the next meeting for further review and requested additional information, including the federal court order and more detail on expenditures and oversight. Finally, the committee reviewed the annual disposition report on matters referred to prosecutors and the Attorney General for 2024. Staff said 164 matters were referred, with 28 resulting in criminal charges and convictions, 39 still under review, 96 not charged, and others dismissed or pending; 20 convictions produced fines, restitution, and audit-cost orders, and bond trust fund claims were paid in some cases. Prosecutor Coordinator and Attorney General representatives explained that some referrals do not meet criminal standards, may lack intent, or are otherwise not prosecutable, and members asked for more standardized reporting, clearer explanations of why cases are not charged, and more information on restitution efforts. The committee discussed possible templates, training, and better coordination, then voted to file the report and adjourned, with the next meeting set for February 12, 2026.