Transcript Highlights:

• Now the company has a limited liability. Now the company has a limited liability.
• <01:32:23.040> insurance the liability insurance the liability insurance was<01:32:25.360>
• on liability insurance. Thank you. on liability insurance. Thank you.
• with meeting liability? with meeting liability?
• liability. SNAP is a big area. liability. SNAP is a big area.

Keywords: 1191, senate, all

Transcript Highlights:

• looking at here is garage liability looking at here is garage liability insurance<00:16:01.959><
• Explain to us real quick, for those that don't know, what garage liability is.
• Explain to us real quick, for those that don't know, what garage liability is.
• Explain to us real quick, for those that don't know, what garage liability is.
• Explain to us real quick, for those that don't know, what garage liability is.

Keywords: Meeting Start: 00:00 Roll Call: 00:06 SB24 Discussion: 01:08 SB24 Vote: 13:22 SB18 Discussion: 14:40 SB18 Vote: 21:54, 958, all

Summary: The committee met with a quorum and first took up Senate Bill 24, a measure aimed at combating property and casualty insurance fraud. Senator Girdler and witnesses from the Insurance Institute of Kentucky and the National Insurance Crime Bureau said the bill would expand the definition of a fraudulent insurance act to cover statements that misrepresent the scope of property damage or repair costs, with the goal of addressing inflated storm-damage claims and out-of-state bad actors. Members discussed whether existing prosecutors were already handling these cases, the role of Commonwealth’s attorneys versus the Attorney General, and the need to keep the bill narrowly tailored to criminal intent rather than negligence or ordinary disputes over value. The committee substitute was adopted, the bill received favorable expression, and a title amendment was also adopted. The committee then heard Senate Bill 18, which would address a shortage of insurance options for automobile dealers by allowing nonadmitted carriers to provide garage liability coverage in Kentucky. Testimony from an insurance agent and a legislative agent for Big I Kentucky described a shrinking market in which some small dealers cannot find coverage at all, risking closure. Members asked about the meaning of garage liability, consumer protections, solvency concerns, and whether more competition could lower prices; witnesses said surplus lines carriers already operate in Kentucky, agents play an important vetting role, and errors-and-omissions coverage would apply to the agent. The bill was supported as a way to preserve dealer businesses and expand coverage options, and it passed the committee with favorable expression after roll call.

Transcript Highlights:

• It is assumed that you have liability. So this brings experts into the fold neck.
• It is all simply a liability Bill. >> Representative Jan, you're recognized. Thank you, Mr.
• I also think that it is fear. >> All to 2 in the strict liability aspect of the bill.
• So for a court notice and serve a lout, the sell it to to avoid the strict liability.
• My question is regarding the strict liability.

Transcript Highlights:

• for those unfunded liabilities, developed by the actuary.
• for those unfunded liabilities developed by the actuary.
• Conducts a detailed asset-liability study where we have that process of marrying the liabilities and
• Tell us again, what is the current number for assets and liabilities?
• We also have huge unfunded liabilities; people aren't coming into government anymore.

Keywords: 959, house, all

Summary: The Joint Committee on Public Employee Retirement held a hearing focused on the Missouri State Employees’ Retirement System (MOSERS) and its long-term financial condition. MOSERS staff and its investment consultant reviewed the system’s structure, membership, funding policy, and investment approach. They reported a June 30, 2025 funded ratio of 55.4%, with about $17.4 billion in liabilities and $9.6 billion in assets, and explained that the board certified a 32% employer contribution rate under its minimum contribution policy, up from 30.25%, which will increase state appropriations. They also described the system as mature, with more retirees and inactive members than active employees, and said declining payroll growth has made it harder to improve funding. The presentation emphasized that recent board actions were intended to strengthen the plan over the long term, even though they increased near-term costs. Those changes included lowering the assumed investment return over time to 6.95%, updating mortality assumptions, moving from an open to a closed amortization schedule, and adopting a minimum employer contribution policy. The investment consultant said MOSERS historically used a more risk-balanced asset allocation than many peers, which helped explain weaker relative returns during a long period when public equities outperformed; the board has since shifted toward a more equity-oriented allocation. He said recent performance has improved, with the portfolio outperforming its policy index and ranking better against peers in the short term, though longer-term peer performance remains a concern. Committee members questioned why the funded ratio had declined over roughly 20 years and whether past investment and actuarial assumptions were too optimistic or too conservative. MOSERS officials responded that the current board is trying to correct earlier decisions and that the present strategy is more in line with industry practice. Members also discussed a proposed MOSERS bill package that would automatically refund small balances to terminated non-vested members and increase deferred compensation auto-escalation, with officials saying the refund provision would improve efficiency and return small balances sooner. The committee also briefly discussed ongoing litigation involving Catalyst Capital; MOSERS said attorney fees have been about $20 million so far, the case remains on appeal, and the damages amount is sealed. No formal votes were taken, and the committee adjourned after questions and discussion.

Transcript Highlights:

• It addresses the net pension liability under the PERS system.
• a liability of the state in total.
• a liability of the state in total.
• the totality of the unfunded liability. the totality of the unfunded liability.
• So when you liability attached to it.

Keywords: Finance - Room 216, 2 February, 2026; 3:00 PM, 925, all

Summary: The committee first heard a bill concerning tax increment financing (TIFs). The sponsor explained that the measure would not change the existing financing structure, but would add an optional arrangement cities could negotiate with developers: a revenue bond guaranteed by taxes generated from the development. The goal was to let developers guarantee the bond and access funds sooner on the front end of a project rather than waiting to see whether tax revenues meet projections. After no questions, the committee adopted a motion that the title was sufficient and reported the bill out do pass as a committee substitute. The next bill, Senate Bill 2873, came from the Department of Revenue and dealt with enforcement of the state’s vape registry law. The sponsor said the bill fills a gap left by prior legislation by creating a statutory forfeiture process for seized products valued at $20,000 or less, including notice, a right to contest, and rules for disposition of forfeited property. The committee then moved the bill title sufficient and do pass, and it was reported out. Senate Bill 2894 addressed local improvement projects funded in 2021 through 2024 that had not been executed or had unspent money remaining. The bill would require return of certain funds after a memorandum of understanding was not signed or after three years with unspent balances, require remittance of unspent interest, allow withholding of some city diversion or state aid road funds for noncompliance, and require periodic status reports to the Legislative Budget Office. The sponsor also offered an amendment giving entities 60 days from the bill’s effective date to request a one-time six-month extension; the amendment and the bill both received favorable votes and were reported out. Senate Bill 2910 would require employers in the PERS system to settle the books if a unit of government or other employer terminates participation. Senate Bill 2911 proposed a new return-to-work option for PERS retirees, shortening the separation period from 90 days to 30 days and allowing certain retirees to return to public employment at up to 80% of the stated salary, with employer-paid retirement contributions and possible health insurance support. The sponsor said the bill would exclude elected officials, K-12 superintendents, and IHL/community college administrators, and he discussed the bill’s expected effect on PERS funding with questions from members about actuarial impact and whether the proposal would affect existing retirement rules. Both bills were discussed but the transcript excerpt does not show final committee action on Senate Bill 2911.

Transcript Highlights:

• for those unfunded liabilities, developed by the actuary.
• for those unfunded liabilities developed by the actuary.
• Not only assets, but also liabilities.
• Tell me, tell us again, what is the current number for assets and liabilities?
• The actual accrued liability is roughly $17.4 billion.

Summary: The Joint Committee on Public Employee Retirement held a hearing focused on the Missouri State Employees’ Retirement System (MOSERS) and its long-term financial condition. MOSERS Executive Director Abby Spieler and investment consultant Tim McKinery outlined the system’s structure, membership, funding policy, and investment approach. They reported that as of the June 30, 2025 valuation, MOSERS had a 55.4% funded ratio, about $17.4 billion in liabilities, and about $9.6 billion in assets. They explained that the FY27 employer contribution rate was certified at 32% under the board’s minimum contribution policy, up from 30.25%, and said the increase is tied to a $46 million new decision item in House Bill 5. The presentation emphasized that MOSERS is a mature plan with more retirees and inactive members than active employees, and that slow or declining payroll growth has made it harder to pay down unfunded liabilities. MOSERS described recent policy changes intended to improve long-term stability, including lowering the investment return assumption over time, updating mortality assumptions, and adopting a minimum employer contribution policy. The board’s 2024 asset-liability study also led to a shift toward more public equity exposure and less fixed income, with the consultant saying asset allocation has been the main driver of relative investment underperformance versus peers in recent years, though recent returns have improved and the portfolio has outperformed its policy index over shorter periods. Committee members questioned why the funded ratio has fallen over time, whether past investment assumptions were too optimistic, and whether the board had been too conservative in its asset allocation. MOSERS representatives responded that the earlier strategy was a board-approved risk-balanced approach and that hindsight makes the results easier to judge, while stressing that current changes are intended to improve long-term outcomes. Members also asked about the impact of inactive members, the automatic refund proposal for small terminated accounts, and the ongoing Catalyst Capital litigation. MOSERS said the proposed legislation would automatically refund small inactive balances and auto-escalate deferred compensation contributions, and reported that litigation-related attorney fees have been about $20 million so far. No votes were taken, and the committee adjourned after questions and discussion.

Transcript Highlights:

• limit, you know, the limitation on liability for those who reject from the fund.
• We've always held that liability caps are bad public policy.
• We've always held that liability caps are bad public policy.
• Liability caps are bad public policy, from our point of view.
• cutting off liability from yourself be cutting off liability from yourself too<00:40:58.800> and

Keywords: 910, house, all

Summary: The joint committees heard testimony on HB 982 HD1, a wildfire-related measure aimed at creating a wildfire recovery fund and a financing structure to address future catastrophic wildfire liability. The Department of Commerce and Consumer Affairs, the Division of Consumer Advocacy, and the Public Utilities Commission submitted comments and were available for questions. Supporters included IBW Local 1260, Kauai Island Utility Cooperative, Clearway Energy Group, Hawaiian Electric, Par Hawaii, and others, while Charter Communications and the Hawaii Association for Justice opposed or raised concerns. Life of the Land supported the bill but urged changes to the definition of a catastrophic wildfire and noted concerns about prudency review language. IBW Local 1260 asked to restore language from the original draft, and Charter warned the bill could impair existing contract and indemnity rights unless amended. A major focus of the hearing was Hawaiian Electric’s position on the HD1 version. Hawaiian Electric strongly supported the original bill but objected to the HD1 requirement for an additional $500 million shareholder contribution, arguing it was not feasible and could delay or prevent the fund from operating. The company said the bill would help protect customers and improve credit ratings by creating a dedicated revenue stream and a bankruptcy-remote financing structure, which it said would lower borrowing costs over time. Members questioned how the $1 billion securitization amount was chosen, whether credit rating agencies had indicated it was sufficient, and how the bill would work in bankruptcy; Hawaiian Electric said the amount was a balance among interests, not based on a specific agency directive, and that it would follow up on bankruptcy questions. Opponents and skeptics raised concerns about liability caps, the new claims process, and unclear language on damages above the fund’s limits. The Hawaii Association for Justice argued the bill limits victims’ remedies and gives too much authority to the new entity without clear guardrails. Committee members also pressed Hawaiian Electric on comparisons to California, the feasibility of the shareholder contribution, and whether alternative capital-raising or divestiture options had been considered. No vote or final action was taken in the portion of the hearing provided; testimony and questioning continued with follow-up information requested from Hawaiian Electric and others.

Transcript Highlights:

• It's the state's single largest liability, 10.4 billion.
• That's how we doubled our unfunded liabilities in a decade.
• So that added to the liabilities of the plan.
• So, in 2010, we had $10.4 billion in Unfunded liabilities.
• So, still the state's single largest liability.

Keywords: 914, all

Transcript Highlights:

• And for a corporation to generate $5 million in tax liability, it would need at least $57 million in
• by at least 50%, with about 20 nearly zeroing out their tax liability entirely.
• Well, that question is actually very layered as far as, I mean, when you're calculating tax liability
• , corporate tax liability in California, there's a whole suite of rules.
• , and limited liability partnerships in their first year of existence.

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.

Transcript Highlights:

• We'll explore how this liability undermines the county's ability to respond to other challenges, such
• They charge a premium for liability coverage like we're talking about here.
• In the case of liability coverages, we don't have a common classification system.
• Are you concerned about future liabilities that are unidentified? Oh, absolutely.
• This bill and that legislation did not anticipate these types of liabilities.

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• There specifically states in the bill the end user doesn’t have that liability.
• He also raised a concern in the civil liability and product liability section, saying there seemed to
• be a conflict in how product liability was defined compared with civil liability.
• He also raised a concern in the civil liability and product liability section, saying there seemed to
• be a conflict in how product liability was defined compared with civil liability.

Keywords: 959, house, all

Transcript Highlights:

• In a church, shouldn't a commercial operator have a higher level of liability coverage?
• Their liability is the question.
• basically immunity to the liability to DoorDash and other delivery services.
• A little bit more of a comment on your first part on the liability limits.
• We've probably had mandatory liability insurance for 35 years.

Keywords: 959, house, all

Transcript Highlights:

• you may go into court, but it would probably be a losing proposition, so I'm interested in somehow shielding
• So would that be one of the benefits of this bill, that it would allow you to do that without the liability
• Allow you to do that without liability away? Is that... Yeah, that's the express purpose.
• away is that yeah that's the liability away is that yeah that's the express<05:24:30.600> purpose
• be given back to the person to take back and use, and said he thought there was probably risk and liability

Keywords: 1189, house, all

Transcript Highlights:

• broad and the immunity for liability broad and the immunity for liability from<00:21:46.120>
• <00:23:31.559> in proportionate share of liability in proportionate share of liability in
• proportionate share of liability proportionate share of liability sometimes<00:23:47.840> millions
• <00:54:49.119> insurance wants to for liability insurance wants to for liability insurance
• hit by a car um and I think liability hit by a car um and I think liability should<01:14:55.239>

Keywords: 910, house, all

Summary: The House Committee on Transportation heard a 10 a.m. agenda covering a range of transportation, liability, harbor, and bicycle-related bills. Testimony was mixed on several measures: HB 263, which would exempt full-time college students from vehicle weight tax, drew opposition from the Department of Transportation and others; HB 135, authorizing general obligation bonds to purchase property on the North Shore of Oʻahu, had support; HB 860, granting immunity to the state or county for repairs on roads with disputed jurisdiction, drew support from DOT, DLNR, and the City and County of Honolulu but opposition from the Hawaii Association for Justice; and HB 996, which would abolish joint and several liability for government entities in highway-related civil actions, also drew strong opposition from the Hawaii Association for Justice and support from the Attorney General’s office and DOT. The committee also heard HB 1167, an emergency appropriation for motor carrier enforcement, and HB 1259, which would remove the need for an engineering study before reducing speed limits within 10 mph of the current limit; both had support from DOT and related groups. HB 1156 and HB 960, both related to harbor financing and capital advancement contracts, were supported by DOT, with DOT explaining that higher bond and contract ceilings were needed because project costs have increased since the limits were set decades ago. HB 142, exempting certain nonprofit community-based transportation providers from motor carrier regulation, and HB 914, creating a water carrier inflationary cost index mechanism and allowing PUC exemptions, also received support from multiple stakeholders, with the Consumer Advocacy Division noting that the inflationary adjustment issue was already active in a rate case. The committee also took testimony on several electric bicycle and micromobility bills. HB 486 would restrict where electric bicycles may operate, prohibit unsafe operation and removal of speed-limiting devices, and fund a safety education campaign; it drew opposition from the Hawaii Bicycling League and several individuals, with one supporter. HB 435 would redefine and classify electric bicycles, raise the minimum operating age, and add registration and use rules; it was supported by DOT and the Hawaii Bicycling League, with one individual opposing. HB 958 would regulate motorized bicycles and electric micromobility devices, require helmets for minors, and fund a coordinated education campaign; it drew support from the City and County of Honolulu, Council Member Tyler Dos Santos-Tam, and the Hawaii Bicycling League, but opposition from Moped Doctors and others, who argued the bill could harm the moped industry and that more study was needed. After testimony, the committee recessed and then reconvened for decision-making. In decision-making, the committee deferred HB 263 and HB 996. It passed HB 135, HB 860, HB 1167, HB 1259, HB 1156, and HB 960 with amendments, generally adopting HD1 versions, making technical changes, and setting effective dates to July 1, 3000 for the amended measures. The chair explained that HB 263 was deferred because a blanket tax exemption for one class could create inequities and a tax credit might be a better approach. HB 996 was deferred because the chair said the state’s long-standing policy of ensuring safe roads and maintaining accountability for highway design and maintenance remained important. For HB 960, the chair said the current contract caps were too low for modern harbor projects and that higher limits would improve flexibility and efficiency. The committee also noted Representative Cochran was excused for the remaining votes.

Transcript Highlights:

• Prior to 2011, the supplemental benefit liability was largely not pre-funded.
• in assets is available for every $1... ...offset the accrued liability.
• So how much in assets is available for every $1 of accrued liability.
• Lower benefits means lower liability.
• Strong markets produce higher assets and lower liabilities.

Keywords: 904, all

Transcript Highlights:

• The Senate amended the bill by expanding the requirement to maintain a commercial boat liability policy
• boat policy with a specified commercial charter boat liability endorsement instead of a commercial boat
• boat liability insurance policy as prescribed.
• The Senate amended the bill by expanding the requirement to maintain a commercial boat liability policy
• boat liability insurance policy as prescribed.

Summary: The committee heard concurrence and Senate-amendment explanations on a series of House measures. HCR 2001 would place a constitutional question before voters on election-related changes, including limiting voting to U.S. citizens, banning foreign national election contributions, requiring government-issued ID, and allowing ballot tabulation at the voting location; supporters described it as an election-security and faster-counting measure, while members noted possible county costs and the need for future appropriations if approved. HB 2305 on private towing was described as a statewide response to predatory towing, with Senate changes delaying local rate updates and creating a study/reporting framework for towing enforcement. HB 2321 would require DCS to place security freezes on children’s credit records, but the Senate removed the appropriation. HB 2397 revised HOA/condominium sale-notice procedures, and HB 2398 required insurance coverage for peer-to-peer or charter watercraft rentals while clarifying that ordinary boat ownership would not be mandated to carry insurance. The committee also reviewed HB 2406, which the Senate struck and replaced with confidentiality protections for records involving deceased minors and minor victims of child abuse; HB 2408, which revised nursing board complaint and expungement procedures, added complainant confidentiality protections, and required public posting of policy statements; and HB 2755, which was substantially rewritten to facilitate the sale of underperforming state trust lands by allowing certain lessees to apply to purchase parcels through an appraisal-and-auction process. Members discussed a specific Dairy Queen/state land parcel example as the practical impetus for HB 2755. HB 2957 would bar governments from requiring digital/mobile driver licenses for services and limit ADOT’s retention and use of identity documents and biometric data, with the sponsor emphasizing privacy and federal-law carveouts. Finally, HB 4005 would require AI instruction in schools, with the Senate expanding it from district-level instruction to grade-specific student requirements and directing ADE on curriculum development. Supporters framed AI literacy as essential for students’ future competitiveness and ethical use, while opponents objected to the mandate and questioned its fit for charter schools and core academics. The meeting ended after the committee moved through the bills and adjourned.

Transcript Highlights:

• Arizona voters of their Article 4 initiative rights, and we're using military children as a political shield
• SB 1495, local liability technical correction. SB 1514, correction and access application. Rules.

Summary: The Senate met, opened with prayer and the pledge, and then handled a series of messages and floor actions. The chamber transmitted a large group of Senate bills to the governor and Senate Concurrent Memorial 1004 to the Secretary of State. It also received House requests to return Senate Bills 1175 and 1198 for reconsideration, which were granted without objection. The Senate then moved into Committee of the Whole to consider several House concurrent resolutions. On H.C.R. 2001, a constitutional referral on election requirements, senators debated a Judiciary Committee amendment and a Hoffman floor amendment that would require voter ID, allow election-day tabulation of early ballots at polling places, and require legislative funding for implementation. Supporters said the measure would improve election security, voter confidence, and speed up results; opponents argued it was vague, could undermine mail voting, and lacked clear implementation details. The amendment was adopted, and after further debate the Committee of the Whole gave H.C.R. 2001 a do-pass recommendation by a 15-12 vote. Later, on third reading, the full Senate passed H.C.R. 2001 by a 16-12 vote and transmitted it to the House. The chamber also considered H.C.R. 2003, a referral on student athletics and biological sex. Senator Ortiz offered a floor amendment to replace the blanket ban approach with rules based on athletic ability and inclusion; supporters said it would preserve fairness while avoiding discrimination, while opponents said it would gut the measure and weaken protections for girls’ sports. The Ortiz amendment failed 11-16, and H.C.R. 2003 then received a do-pass recommendation in Committee of the Whole and later passed third reading. H.C.R. 2044, a referral on prohibiting preferential treatment and discrimination, also received a do-pass recommendation without recorded controversy. The Senate then adjourned after completing the remaining procedural motions and votes.

Transcript Highlights:

• We urge any revenue and surplus funds be used to shield children and families from even more cuts.
• million budget request to stabilize foster family agencies as they continue facing California's liability

Keywords: 987, senate, all

Summary: The hearing opened with Department of Finance and Legislative Analyst’s Office remarks on the May Revision, which both described efforts to reduce large out-year operating deficits through a mix of revenue increases, spending reductions, and reserve use. Finance said the May Revision more than halves projected deficits in later years, while LAO stressed that revenues are at unprecedented levels yet the state still faces a significant structural deficit and is drawing down reserves; LAO urged maintaining at least the administration’s level of budget solutions and adding to reserves rather than new ongoing commitments. The chair echoed concern about cuts to vulnerable populations and noted the tension between service reductions and requests for additional administrative positions. The committee then heard a series of California Health and Human Services and HCAI proposals, including additional legal support for CalHHS to respond to federal HR1 changes; a net-zero transfer of positions for a centralized eligibility/data-sharing platform; 988 crisis line implementation funding and continued work with the Trevor Project to train crisis centers to better serve LGBTQ youth; EMS data system maintenance funding; HCAI implementation of AB 1312 hospital charity care screening; SB 660 data exchange framework funding; CalRx biosimilar insulin reappropriation; and a diaper access initiative that would provide free diapers to newborns in participating hospitals and support a future direct-to-consumer purchasing option. Members questioned the diaper program’s universal design, the use of a Public Contract Code exemption, and the selection of Baby2Baby, with the chair expressing concern about optics and the lack of an income threshold. The committee also discussed distressed hospital funding, with HCAI requesting up to $50 million for another round of grants to hospitals in immediate financial distress. HCAI said it receives annual and quarterly financial reports but the data lag limits real-time monitoring, and the LAO recommended stronger program parameters and turnaround plans. Members argued the repeated need for distressed hospital aid reflects a structural problem, not a short-term gap, and raised broader concerns about hospital reimbursement and patient flow. Other items included reverting $19.6 million in unused opioid settlement funds from HCAI to DHCS for General Fund offset, and a Rural Health Transformation Program request to increase HCAI spending authority to cover the full federal award. Later, DMHC presented funding requests to implement PBM licensing and financial review requirements under AB 116, modernize the managed care complaint system, and build an electronic claims settlement data system under AB 3275. The final major discussion focused on the Behavioral Health Services Oversight and Accountability Commission, which opposed the May Revision’s proposed reduction of its Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy grants. The Commission argued these programs are core to Proposition 1’s goals of statewide innovation and community accountability, while Finance said the proposal is consistent with Proposition 1’s maximum funding levels and reflects a broader effort to prioritize direct services and use unspent prior-year funds; members pressed for more information and questioned whether the cuts would undermine the new behavioral health framework.

Transcript Highlights:

• the Employees Retirement System for a one-time legacy payment to the system's unfunded actuarial liabilities
• constitution, and look at the statement in there and look at how that language has been used as a shield

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee convened for its first hearing of the 89th regular session, confirmed a quorum, adopted committee rules by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the committee’s organization, introduced staff, and described the budget as conservative and focused on one-time investments. She highlighted major SB 1 priorities including property tax relief, full funding for public education formulas, teacher pay, school safety, border security, Medicaid growth, dementia research, energy and water infrastructure, transportation, wildfire suppression, and other capital and public safety needs. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending in 2026-27, with a projected $23.8 billion ending balance from the current biennium. He cautioned that revenue growth is returning to more normal levels and that lawmakers should avoid committing short-term surpluses to ongoing expenses. He also explained that the Economic Stabilization Fund is projected to hit its constitutional cap, meaning an estimated $5.6 billion in severance tax and related revenue would remain in general revenue in the upcoming biennium rather than flow into the fund. Senators discussed whether to raise or rename the fund and the implications of keeping more severance-tax revenue in general revenue. The Legislative Budget Board then gave an overview of SB 1 and the budget’s major funding changes. LBB staff explained that the bill is essentially flat at $332.9 billion in all funds, but includes large method-of-finance shifts and major property tax relief. They detailed how prior property tax relief enacted in the 88th Legislature grew from an estimated $18 billion to $22.7 billion because of higher property values and hold-harmless provisions, and said SB 1 continues that relief with a total of $51 billion in ongoing and new property tax support. Members asked extensive questions about the automatic growth in school tax compression, the constitutional homestead exemption, COVID-era federal funding, Medicaid assumptions, and the sunset of the non-homestead circuit breaker. No additional votes or final budget actions were taken beyond adoption of the committee rules.

Transcript Highlights:

• actuarial... ...retirement system for a one-time legacy payment to the system's unfunded actuarial liabilities
• constitution, and look at the statement in there and look at how that language has been used as a shield

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee held its first hearing of the 89th regular session, adopted nearly identical committee rules from the previous legislature by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the budget framework, emphasizing conservative spending, a $332.9 billion all-funds budget, and major priorities including property tax relief, public education, border security, health and human services, transportation, energy, and water infrastructure. She also introduced committee and leadership staff and described the hearing schedule and public testimony procedures. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending, including a $23.8 billion ending balance, but warned that revenue growth is returning to more normal levels and that lawmakers should avoid using temporary spikes for ongoing commitments. Senators questioned him extensively about the Economic Stabilization Fund cap, sales tax trends, inflation, and whether the state should consider raising the cap or using severance-tax revenues differently. Hager said the Rainy Day Fund is expected to hit its cap, which would leave more severance-tax revenue in general revenue, and he stressed that infrastructure needs remain significant. The Legislative Budget Board then gave a detailed overview of SB 1 and the budget’s major components. LBB staff explained that the bill includes continued funding for the Foundation School Program, $850 million for the Texas State Technical College endowment, $1.3 billion for the Texas University Fund, $6.5 billion for border security, salary increases for correctional officers and state troopers, $3 billion for dementia research, higher community attendant wages, expanded community-based care, $5 billion for the Texas Energy Fund, and funding to clear volunteer fire department grant backlogs. They also outlined supplemental priorities such as water infrastructure, retirement legacy payments, rail grade separations, wildfire aircraft, and emergency facilities, and said the current controlling budget limit is the tax spending limit. A major portion of the hearing focused on property tax relief. LBB explained that prior-session relief grew from an expected $18 billion to $22.7 billion because of higher-than-anticipated property values and interactions among hold-harmless provisions, and that SB 1 continues and expands relief with $51 billion in total property tax relief, including $3 billion more for compression, $3 billion to raise the homestead exemption from $100,000 to $140,000, and a $500 million placeholder for business tax relief. Senators discussed the automatic nature of some of these costs, the effect of the non-homestead circuit breaker, the role of federal COVID funds, and the need to maintain school finance commitments if the state continues to compress school tax rates.