Transcript Highlights:

• that we take the nominees, or that we consent advise and consent to all of the nominees with the exception
• And if there are no exception of two.
• So, with the exception of those two nominees, I'm going to recommend we advise and consent to Governor's
• So, with the exception of those two nominees, I'm going to recommend we advise and consent to Governor's
• So, uh, with the exception of those two So, uh, with the exception of those two nominees,<00:44:46.400

Keywords: 912, senate, all

Summary: The Senate Commerce and Consumer Protection Committee heard and considered a series of gubernatorial nominations to boards and commissions. Early nominees included Falleno Vital for the Boxing Commission, Rebecca Moore for the Board of Nursing, and Alexander Smith and Zachary Johnson for the Board of Public Accountancy. DCCA and board representatives testified in support of each, and the nominees who were present briefly described their qualifications and willingness to serve. The chair noted the unusually large volume of written testimony in support of the boxing nominee and emphasized that these are voluntary positions and nominees had already been vetted through questionnaires and resumes. The committee then heard several nominations to the Hawaii Board of Optometry, the Motor Vehicle Repair Industry Board, and the Hawaii Medical Board. Ashley Porter and Katherine Mao spoke in support of their optometry nominations, Nathan Konishi supported his motor vehicle repair board nomination, and Gary Belchure discussed his reappointment to the medical board. A substantial portion of the discussion on the medical board focused on physician shortages, especially on the neighbor islands, and efforts to address them through the Interstate Medical Compact and pending legislation such as SB 1365. Board staff also discussed possible pathways for foreign medical graduates and the need for criminal background checks to fully participate in the compact. The latter part of the hearing shifted to real estate commission nominations, including Audrey Abbe and Denise Lacosta. Testimony and member questions focused heavily on condominium governance, deferred maintenance, reserve studies, insurance costs, and the need for better education and oversight of volunteer board members and property managers. Both nominees said older buildings, rising insurance premiums, and lack of expertise among volunteer boards are major challenges, and they suggested more training, clearer guidance, stronger enforcement against unlicensed property management, and better access to qualified consultants and financing. No votes were taken during the hearing; the committee heard testimony and moved through the agenda nominee by nominee.

Transcript Highlights:

• And in your packet that you have there, the agency has some LRA exceptional items that we're doing for
• I'm except that. We're, we're not scaling this up in a way yet to, um, to really make a dent in it.
• for those, those little tiny exceptions that I named.
• All my federal draws are going through, um, with the exception of Department of Energy weatherization
• We managed to spend it all every year with the exception of early in COVID, CARES Act.

Transcript Highlights:

• public places in Fayette County, and I have not had a lot of comments from people in Fayette County except
• a lot of comments from people in F had a lot of comments from people in F County<00:13:43.639> except
• uh<00:13:45.160> my<00:13:45.320> former<00:13:45.680> colleague County except
• one uh my former colleague County except one uh my former colleague on<00:13:46.199> city<00:
• on living area limit uh the exceptions on living area standards<00:43:33.200> required<00:43:

Keywords: Meeting Start 00:01 Roll Call 00:16 HB 211 Discussion 02:55 HB 211 Vote 16:30 HB 160 Discussion 18:50 HB 160 Vote 52:06 Adjournment 57:35, 958, all

Summary: The House Standing Committee on Local Government met for its first meeting of the year, established a quorum, and heard two bills. House Bill 211, sponsored by Representative Chris Lewis, would create a definition for cigar bars and allow indoor cigar smoking in qualifying establishments if they meet criteria such as deriving at least 15% of gross income from cigar-related sales, restricting entry to those 21 and older, prohibiting cigarettes and vaping, and requiring a smoke-free area for deliveries. Lewis and Louisville Metro Council member Anthony Pantini described the bill as a small-business and tourism measure modeled on Tennessee law, while the American Cancer Society Cancer Action Network and a St. Elizabeth physician opposed it, arguing it would undermine local smoke-free ordinances and expose patrons and workers to harmful secondhand smoke. Several members raised local-control concerns, and Lewis said he was open to local governments making decisions on less restrictive approaches. The committee adopted a committee substitute and then approved HB 211 on a roll call vote, with multiple members voting yes and several no votes, sending the bill forward as amended. The committee then heard House Bill 160 from Representative Susan Whitten, with Logan Haynes of the Kentucky Manufactured Housing Institute. They said Kentucky faces a housing shortage of roughly 200,000 units and that starter homes are increasingly unaffordable, making manufactured housing an important part of the solution. Whitten said the bill would treat manufactured housing more like site-built housing while still allowing local governments to enforce cosmetic standards such as roof pitch, exterior facade, and foundation material, and she emphasized that HOA, deed, and historical preservation restrictions would remain in place. Haynes argued that modern manufactured homes are federally and state inspected, more energy efficient, faster to build, and more affordable than site-built homes, and he said the bill would not open the door to older-style mobile homes or single-wides except in limited narrow-lot situations. Representatives from the Kentucky League of Cities and the Kentucky Association of Counties expressed concerns about the bill’s current language, saying land-use decisions should remain local and warning that the definition of qualified manufactured home and the bill’s treatment of local standards could have unintended consequences. They said they appreciated Whitten’s willingness to work with them and indicated they hoped to continue negotiating amendments as the bill moved forward. No vote on HB 160 was taken during the portion of the meeting provided.

Transcript Highlights:

• Uh, she's been going to all of the different committee rooms except ours, and listening, and then she
• on been been going to all of the on been been going to all of the different<00:07:09.400> except
• ours,<00:07:10.600> all<00:07:10.840> of<00:07:11.000> the different except
• Did everybody else register to rerun except the... Well, we know you said you didn't.
• Except they went into the house and it.

Keywords: 1189, house, all

Summary: The committee began with brief remarks recognizing Representative Almquist’s service and noting that he would not seek reelection, along with comments about other members’ departures and replacements. The chair then opened a series of interim study work sessions, explaining that some bills would be handled now and school-funding-related bills later in the year. Members also discussed how interim study reports work, including that they are recommendations for future legislation and do not prevent anyone from filing similar bills again. On HB 224, dealing with rebates to taxpayers from the renewable energy fund, members noted that the bill was essentially the same as a prior House bill that passed the House but stalled in conference with the Senate. The committee discussed whether the measure would change current law; members were told it would not, and that the report would simply recommend future legislation. The chair indicated the committee would likely recommend the bill for future legislation, with no minority report, and that any roll call vote would be reflected in the final report. On HB 417, repealing the communication services tax, members raised concerns about revenue loss, possible 911-related issues, and conflicts over municipal taxation of telephone poles and related property. The Lottery Director and others explained that repeal could create legal uncertainty for municipalities and that the bill could reduce state revenue by millions of dollars. The committee concluded the bill should not be recommended for future legislation unless it were substantially revised to address revenue and municipal-taxation complications. On HB 635, concerning taxing nonprofit entities that settle illegal immigrants, members agreed it was primarily a federal issue and outside the state’s authority, so it was not recommended for future legislation. On HB 660, requiring historic horse racing facilities to compensate host communities, members said the concept of mitigating local impacts was reasonable but the bill was too broad in its current form. Testimony from the Lottery Director and others focused on how host communities and charities currently receive days and revenue, how operators are using shared days, and how the market may already be adjusting. Members also discussed whether neighboring communities, including out-of-state towns, should be considered and whether the state’s share of gaming revenue could be redirected. The discussion ended with interest in a narrower rewrite and possible future legislation, but no final vote was described in the excerpt.

Transcript Highlights:

• <00:38:08.200> to the states are preempted and except to the states are preempted and except
• Except for the part where we apparently established our own policy on how to treat and inspect goods
• Except for the part where treatment.
• <00:46:28.960> Except no question that we control that.
• Except no question that we control that.

Bills: HB389, HB1166, HB1510, HB1541, HB1605, HB1661, HB1663, HB1678, HB1769, HB1785, HB1801, HB1802, HB1815, HB1824, HB1838, HB1840, HB1853, HB1860, HB1891, HB1952, HB1960, HB1969, HB1970, HB1972, HB1976, HB2050, HB2094, HB2104, HB2158, HB2165, HB2171, HB2208, HB2246, HB2271, HB2300, HB2310, HB2315, HB2319, HB2338, HB2339, HB2343, HB2443, HB2498, HB2551, HB2599, HB2606, SB17, SB83, SB99, SB148, SB411, SB709, SB847, SB874, SB888, SB1032, SB1166, SB2001, SB2014, SB2031, SB2041, SB2050, SB2057, SB2061, SB2074, SB2075, SB2089, SB2095, SB2101, SB2102, SB2108, SB2109, SB2110, SB2125, SB2135, SB2138, SB2140, SB2146, SB2151, SB2152, SB2175, SB2203, SB2239, SB2246, SB2247, SB2253, SB2261, SB2268, SB2271, SB2272, SB2320, SB2340, SB2347, SB2353, SB2363, SB2367, SB2372, SB2376, SB2386

Keywords: HB389, uncrewed aircraft, drone, drones, UAS, unmanned aerial vehicle, misuse of uncrewed aircraft, criminal offense, felony enhancement, drone crime, public safety, police, deputy sheriff, fire department, intoxicated operation, registration number tampering, property damage, bodily injury, Honolulu Prosecuting Attorney Package, Hawaii Revised Statutes

Transcript Highlights:

• And there's many exceptions written in the bill. Thank you, Senator Mann.
• Could you, Senator Mann, briefly touch on the exceptions?
• Exceptions for IEPs, medical use, or any exception at the discretion of the principal.
• Madam chair Senator yeah so exceptions Madam chair Senator yeah so exceptions for<00:17:55.280><
• <00:17:57.840> at for IEPs medical use or any exception at for IEPs medical use or any exception

Keywords: 1187, senate, all

Transcript Highlights:

• uh expenditures limiting rate exceptions uh expenditures limiting rate exceptions that<00:14:52.720
• It limits rate exceptions for residential services under DWRS. Section 37 is unchanged.
• services exceptions for residential services exceptions for residential services under under under
• Previous versions extended these exceptions. This is on page 171 of the bill.
• <01:14:23.440> and for change of ownership exception and for change of ownership exception

Keywords: 1187, senate, all

Summary: Members met to review a budget bill agreement using a nonpartisan spreadsheet and summary materials. Chairs and members thanked fiscal, research, revisers, and agency staff for the collaborative process, noting the bill had been difficult and that the final product reflected compromise. The chair also said only minor technical changes were expected before final enactment, and the spreadsheet walkthrough was then turned over to fiscal staff. Fiscal staff explained that the agreement met the overall budget target and walked through major human services provisions. Key items included nursing facility payment changes, including a phased PDPM change, APS inflation, modified single-bed incentives, and a CPI-U capped payment cap; a nursing facility surcharge; workforce standards board rule costs; continuation of certain nursing facility property tax rates; regulation of for-profit acquisitions of nursing homes and assisted living facilities; repurposing assisted living special project funds; funding the SEIU self-directed worker agreement; CFSS reimbursement in acute care hospital settings; and multiple disability waiver rate and authorization changes, including CPI-U inflation caps, waiver authorization reforms, and a waiver reimagined advisory task force. The agreement also included family residential service rate increases, a temporary extension of customized living disproportionate share payments, tribal eligibility for targeted case management, positive supports training changes, out-of-home respite modifications, swimming lessons as an allowable service for certain children with disabilities, a provisional EID provider license, and program integrity services funded by licensing fee increases. Additional provisions covered MinnChoices studies and assumed savings, behavioral health fund changes, substance use disorder treatment billing and rate changes, supportive recovery housing, housing support supplemental rates for specific providers, disability determinations, enteral nutrition payment timing, temporary funding for Boundary Waters Care Center, several one-time human services grants, senior nutrition funding, and grant reductions and extensions. No formal vote was described in the transcript; the discussion focused on explaining the agreement and its fiscal effects.

Transcript Highlights:

• > removing<01:51:35.040> that and special exception, removing that and special exception
• um, process on the or special exception um, process on the local<01:51:48.000> level.
• Except<02:05:51.840> mine. Except mine. Except mine. Thank<02:05:53.920> you.
• Unless given an exception by the municipality, and that's the key point.
• Unless given an exception by the municipality, and that's the key point.

Keywords: 1191, senate, all

Transcript Highlights:

• in limited exceptions.
• in limited exceptions.
• in limited exceptions.
• in limited exceptions.
• in limited exceptions.

Keywords: 1187, senate, all

Transcript Highlights:

• They provide for limited exceptions to the IC moratorium.
• They provide for limited<00:30:41.279> exceptions<00:30:41.840> to<00:30:42.000> the
• limited exceptions to the IC moratorum. limited exceptions to the IC moratorum.
• to the setting limited exceptions to the setting approval<00:30:50.960> moratorum.
• we'll talk about the A13 later uh except we'll talk about the A13 later uh except for<00:42:53.520

Keywords: 918, senate, all

Summary: The joint hearing opened with chairs explaining that the program integrity omnibus bill is a combined draft assembled from individual member bills and governor proposals, many of which had already been heard in committee. Members emphasized the compressed end-of-session timeline, said the language was not yet ready for enactment, and invited continued revisions as the bill moves next to judiciary and finance. Several speakers stressed the need for bipartisan collaboration, while also warning that the Legislature must act this session on program integrity rather than defer reforms. The fiscal staff then walked through a spreadsheet showing the bill’s overall budget effects and major provisions. The package includes DHS proposals on transforming human services, market- and receipt-based rate reform, enhanced program and payment integrity, uniform service standards, nursing facility rate changes, ICS reforms, and a repeal/redesign of housing stabilization, along with child care assistance integrity and human services redesign items in DCYF. Staff highlighted that the bill combines multiple sources, including governor proposals and member bills, and noted several items that are also in the supplemental human services budget. Committee discussion focused heavily on prepayment review, remote supports, ICS, and provider accountability. Chairs said the bill would codify prepayment review with a 60-day notice requirement after providers were caught off guard by prior rollout, and that remote supports and ICS language were placeholders or under active debate. One member argued the system needs stronger standards but cautioned against harming compliant providers, while another urged the committee to learn from good providers and warned against repeating failed implementations. Staff also reviewed thematic indexes covering billing and service delivery oversight, EVV, administrative reform, licensing and background studies, provider enrollment, sanctions, and child care provider compliance training. No formal votes were taken in the portion provided. The hearing ended with staff beginning the index walkthrough and members indicating that posted amendments would be considered as the bill advances through the remaining committees.

Transcript Highlights:

• lose sight of the fact that our irrevocable covenant is to pay benefits every single month without exception
• That's MSRS, PERA, and TRA. exception. exception.
• > performance Again, we think exceptional performance Again, we think exceptional performance
• <00:18:22.120> performance So, we've spent the last few minutes talking about exceptional
• except to remove the term present value. except to remove the term present value.

Keywords: 1187, senate, all

Transcript Highlights:

• There's a existing exception in the statute for a licensed peace officer.
• There's an existing exception in the statute for a licensed peace officer.
• There's an existing exception in the statute for a licensed peace officer.
• There's an existing exception in the statute for a licensed peace officer.
• There's a existing exception in officer.

Bills: HF3409, HF3487, HF3401

Keywords: immigration status, undocumented students, immigrant rights, K-12 education, public school enrollment, Plyler v. Doe, school district, charter school, cooperative unit, law enforcement access, ICE, immigration enforcement, civil lawsuit, private right of action, injunctive relief, mandamus, student records, directory information, parental engagement, equal access to education

Transcript Highlights:

• It is part of the main campus, except it wasn't because for several years it was the site of St.
• It is part of the main campus, except it wasn't because for several years it was the site of St.
• It is part of the main campus, except it wasn't because for several years it was the site of St.
• It is part of the main campus, except it wasn't because for several years it was the site of St.
• It is part of the main campus, except it wasn't because for several years it was the site of St.

Keywords: 910, house, all

Summary: The committee first heard House Bill 707, which would create a state income tax deduction for contributions to Hawaii 529 college savings accounts and conform state law to federal changes allowing 529 funds to be used for K-12 expenses. The Department of Taxation said it could administer the bill as written. The Hawaii State Council on Developmental Disabilities supported the measure but asked that ABLE accounts be included and that the program title be changed; the Department of Taxation indicated the title issue could be a problem because the bill’s expanded purpose may not fit the current program name. No vote was taken. The committee then heard House Bill 617, which would fund a Bachelor of Science in Nursing program at the University of Hawaiʻi Community Colleges. UH Community Colleges supported the bill, and Maui nursing staff testified that faculty recruitment is challenging but manageable, clinical placements are available, and the campus already has a statewide RN-to-BSN pathway; they said the new program would create two tracks, including a four-year BSN option. Members also heard support from several organizations, including the Office of Hawaiian Affairs, nursing groups, and health care associations. No action was taken. Next were several UH-related measures. HB 718 would fund faculty and staff positions at the John A. Burns School of Medicine; the dean and other supporters testified in favor. HB 1279 would create a medical education liaison position tied to Project ECHO; the Attorney General raised constitutional concerns about statewide concern and grant standards, while an individual witness supported the concept but suggested the bill should focus on liaison/support functions rather than program administration. HB 1169 would consolidate conference center revolving funds, and HB 1168 would authorize up to $800 million in UH revenue bonds; UH’s CFO said both were procedural/housekeeping measures and supported them. On HB 1168, members questioned debt service, possible uses, and whether deferred maintenance would be included; the CFO estimated annual debt service could be about $33 million to $41 million at current rates, said likely uses could include student housing and research facilities, and said deferred maintenance was not the current strategy. The CFO also explained that revenue bonds require both legislative authorization and a Board of Regents resolution approving the project and amount. Finally, the committee heard HB 548, which would authorize revenue bonds and appropriations to acquire the St. Francis School campus for UH Mānoa. UH supported the bill but noted the property is privately owned and not known to be for sale. A supporter described the site as a unique 11-acre parcel contiguous to the main campus and urged the committee to seize the opportunity for future generations. No vote or final action was taken on the bills in the transcript.

Transcript Highlights:

• Lang<00:03:30.239> from This bill is actually identical to last year's bill, with one exception
• So this bill is the same bill except they up the number to $350, which now brings in $7 million, which
• last year the complaint was exception last year the complaint was that<00:03:56.319> the<00:03
• <00:04:18.959> they this bill is the same bill except they this bill is the same bill except
• Again, understand nothing changed in the language with the exception of the price.

Keywords: 1191, senate, all

Transcript Highlights:

• House Bill 500 does contain the same exception language.
• House Bill 500 does contain the same exception language.
• You know, the federal government's experiencing the same kind of shortfalls except in the millions.
• <00:51:53.040> They're except except in the millions.
• They're except except in the millions.

Keywords: 958, all

Summary: The House Budget Review Subcommittee on Postsecondary Education heard presentations from the University of Louisville and the Kentucky Community and Technical College System (KCTCS) on their strategic plans, enrollment trends, and budget priorities. University of Louisville President Bradley highlighted the university’s new five-year strategic plan, its R1 research status, community-engaged and opportunity college classifications, record enrollment of 25,005 students, and its role in serving first-generation, Pell-eligible, military-connected, and rural students. He also emphasized the university’s economic and workforce impact, including athletics, nursing, dentistry, and a recent Speed School building, and previewed major capital and program requests: a $142 million STEMH building, a $15 million one-time request for National Cancer Institute-related cancer research, and $5.3 million for the Kentucky Manufacturing Extension Partnership. He also discussed a planned $260 million health sciences building and the university’s efforts to expand health care access beyond Louisville through regional sites and residency partnerships. Members responded positively, with Representative Tipton asking about agency bond projects and regional health outreach, and President Bradley saying the university is evaluating debt capacity and exploring smaller projects while noting that the STEM building request would rely on state-funded debt service. He described UofL Health’s expansion into places such as Bullitt County, Shelbyville, Madisonville, and Paducah, and its efforts to train physicians for rural practice. Representative McCool praised the university’s military-friendly designation and cancer research priorities and noted personal family ties to UofL. Michaela Aman, a sophomore from Letcher County, also testified about how UofL has supported her as a rural student and emphasized the university’s commitment to opportunity and social mobility. KCTCS President Ryan Quarles and CFO Todd Kilburn then presented the system’s enrollment, completion, and workforce-training results. They said KCTCS now serves more than 110,000 students, graduated a record 24,000 students last May, and has moved from 45th to 4th nationally in graduation rate. They also highlighted that over half of students are first-generation, 60% work while enrolled, 70% of graduates work in Kentucky, and 74% graduate with no student loan debt. KCTCS described its common-course-numbering agreement with Morehead State as part of a broader transfer simplification effort, and said it trains about 200,000 Kentuckians annually when including workforce training and firefighter instruction. The system also outlined efficiency measures, including property sales, a new bookstore contract projected to save $4.3 million over five years, and a new evaluation process for real estate and facilities. KCTCS’s budget and capital requests included operating funding tied to enrollment growth, support for the TRAINs program, the ECTC training facility at Glendale, continued support for Health Force Kentucky, three capital construction projects at Jefferson, Bluegrass, and Gateway, and asset preservation funding focused on safety and security upgrades. Quarles also referenced House Bill 5, saying it would expand KCTCS’s correctional education and re-entry work and could help reduce recidivism. Members asked about the bill and its impact, and KCTCS said it already provides instruction in jails and prisons and sees the proposal as an extension of that work.

Transcript Highlights:

• >> No, none that I know of except the synopsis. >> So, we would need to first adopt the substitute. >
• <00:13:29.519> the >> No, none that I know of except the >> No, none that I know
• of except the synopsis. synopsis. synopsis.
• This doesn't change anything about any other group except for if they have 20 years of experience or
• for if they have 20 years of except for if they have 20 years of experience<00:35:44.960> or<

Keywords: 1136, house, all

Transcript Highlights:

• from 2019 actually provides a basis for allowing training data because text and data mining is an exception
• from 2019 actually provides a basis for allowing training data because text and data mining is an exception
• And so what we have is a number of countries having, and Japan also has some very broad exceptions for
• These narrow exceptions are like for the social good, the kind of societal good, education, cultural
• Text and data mining is an exception.

Summary: The Senate Judiciary Committee and Assembly Privacy and Consumer Protection Committee held an informational hearing at Stanford on the intersection of artificial intelligence, copyright, transparency, and California’s creative economy. Chairs and members emphasized that the hearing was not on a specific bill and no vote would be taken. Opening remarks framed the issue as balancing protection for artists and other rights holders with the need to keep AI innovation and related economic activity thriving in California, while noting that federal action is unlikely and that state policy may influence national standards. The first panel featured Professor Pamela Samuelson and Stanford researcher Rishi Bommasani. Samuelson reviewed the current copyright litigation landscape, including dozens of lawsuits over AI training, and explained the fair use framework, the Google Books precedent, and the uncertainty around newer theories such as market dilution. She said states can likely regulate transparency, deepfakes, privacy, and safety, but warned that some proposals may be preempted by federal copyright law. Bommasani described widespread opacity around training data among major California AI companies, discussed AB 2013 and the EU AI Act as transparency models, and identified gaps in disclosure design, enforcement, and whether transparency alone can address copyright and IP concerns. Members asked about open-source models, opt-outs, machine unlearning, user data, and state options for protecting creators. The second panel included SAG-AFTRA board member Jason George, Animation Guild president Danny Lynn, and OpenAI copyright counsel Mark Gray. George and Lynn argued that AI training on performers’ and artists’ work without consent or compensation threatens jobs, bargaining power, and reputations, and they supported stronger transparency and licensing requirements so creators can identify when their work is used. Gray said AI is already being used as a productivity tool and highlighted partnerships between AI companies and publishers, record labels, and studios, while arguing that specific harmful uses such as deepfakes should be regulated directly rather than restricting general-purpose AI development. Committee members discussed labeling and watermarking of AI-generated content, transparency around model use, and whether state law should require more detailed disclosure of training data; no formal action was taken.

Transcript Highlights:

• Going forward every year, it will be as it has essentially always been, except for under Speaker Renner
• There are some exceptions where it'll be higher, but generally it's 2%. Representative Escamani.
• And so it looks like this bill would make an exception for FAMU.
• So why are we making an exception right now for FAMU?
• Would you consider making a similar exception for other universities?

Summary: The House met on the final day of session, swore in Representatives Boyles and Hodgers, and observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, as well as for Representative Rosenwald’s father. The chamber then moved into final budget work, with leaders outlining the plan to take up H.J.R. 5019, HB 7031, HB 5017, HB 5015, and then the general appropriations act once the Senate transmitted it. H.J.R. 5019, a proposed constitutional amendment to expand the budget stabilization fund, was explained and amended to raise the rainy day fund cap, require annual deposits, and allow withdrawals for critical state needs by a two-thirds vote; it passed 100-1. The House then adopted the conference report on HB 7031, the tax package. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or expands several sales tax holidays and exemptions, including permanent exemptions for disaster-preparedness items, hunting/fishing/camping items, and ammunition and firearms-related purchases, and makes changes to property, corporate income, local tax, and economic development provisions. Members debated the removal of recurring housing trust fund and transit-related revenue streams, the new ammunition exemption, and the data center tax changes; supporters argued the package reduces taxes and preserves annual budget flexibility, while opponents raised concerns about housing, transportation, and gun violence. The conference report passed 93-7. HB 5017, creating a debt reduction program funded by a recurring transfer to retire state bonds early, passed unanimously. HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment, also passed. The House then began explanation and questions on the fiscal year 2025-26 general appropriations act, described as a $115.1 billion budget that is down $3.8 billion from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major spending areas, including pre-K-12 funding increases, health care funding for Medicaid, KidCare, nursing homes, opioid treatment, and mental health, transportation and economic development funding, environmental and water projects, higher education, state administration, justice, and information technology. Questions focused on school vouchers, inflationary pressures on school districts, and the adequacy of funding for housing, transportation, and other priorities.

Transcript Highlights:

• Then the main addition is around some retail purchases of clothing, although there are setion exceptions
• of clothing although there are purchases of clothing although there are setion<00:15:43.519> exceptions
• in that around diapers setion exceptions in that around diapers so<00:15:45.800> there's<00:15
• And so, transactions not subject to sales and use tax, except for clothing.
• And, uh, because we have all these exceptions, we end up picking the winners and losers, and we can't

Keywords: 1183, house

Summary: House File 5 was heard in the Transportation Committee and moved by the author, Representative Jim Joy, to be referred to the Tax Committee. Joy described the bill as a package to make Minnesota more affordable by fully eliminating the Social Security tax subtraction, ending the motor fuels tax indexing, repealing the retail delivery fee, and studying vehicle registration/license taxes compared with neighboring states. Committee fiscal staff explained the bill’s fiscal effects across the general fund, highway user tax distribution fund, transportation advancement account, and metro county sales tax allocations, including that the delivery fee repeal would reduce Transportation Advancement Account revenue and that the bill would shift some revenue sources to offset losses. Several stakeholders testified. The Minnesota Grocers Association strongly supported repealing the retail delivery fee, arguing it is costly and complex for retailers to administer, especially small businesses, and that the costs are ultimately passed on to consumers. The Minnesota Propane Association also supported repeal, saying the fee is burdensome for propane businesses, that only a small share of deliveries are actually subject to it, and that compliance costs can exceed the fee revenue collected. Fiscal staff noted that delivery fee revenue forecasts have fallen below earlier projections, and explained that the fee is imposed on sellers with several exemptions, including a $100 transaction threshold and exemptions for some sales such as bars, restaurants, nonprofits, and certain small businesses. Opposition came from local government groups. The League of Minnesota Cities said it supported the Transportation Advancement Account and its 2023 funding sources, including the delivery fee and motor vehicle parts sales tax, and warned that the bill would prematurely alter a funding structure that cities rely on for predictable transportation revenue. The Minnesota Association of Small Cities said small cities had long lacked dedicated transportation funding and wanted a stable, ongoing revenue stream, but were neutral on the exact source as long as it was reliable. Metro Cities echoed support for stable, predictable transportation funding for metro-area cities. The committee took testimony and discussion only; no final vote was recorded in the excerpt beyond the motion to refer the bill to the Tax Committee.

Transcript Highlights:

• Um, however, without amending out exceptions for local control, I unfortunately cannot support this.
• Any out I would, you know, out I would, you know, exceptions<00:11:43.920> for<00:11:44.080>
• > local<00:11:44.400> control,<00:11:44.960> I exceptions for local control, I exceptions

Keywords: 1191, senate, all