Transcript Highlights:

• The House remains ready to negotiate. We remain ready to The House remains ready to negotiate.

Transcript Highlights:

• And the rest, I think, were fluctuating here and there as they went through negotiations.
• And the rest, I think, were fluctuating here and there as they went through negotiations.

Summary: The conference committee on Engrossed Substitute Senate Bill 5998 received a detailed briefing from House and Senate budget coordinators on the operating budget conference report. They walked through comparison documents showing the Senate-passed budget, House-passed budget, and the conference proposal, including statewide totals, agency-level changes, revenue assumptions, transfers, and outlook impacts. The proposal uses the February 2026 ERFC forecast, includes an $880 million transfer from the Budget Stabilization Account to the general fund, and reflects various revenue-related bills and prior-period adjustment assumptions. The coordinators highlighted major spending and policy changes across several areas, including Working Families Tax Credit expansion, local government fiscal health funding, child care attendance policy changes, behavioral health facility and staffing adjustments, long-term care support for certain non-citizens affected by federal changes, health care and public health responses to H.R. 1, K-12 changes such as free school meals contingent on legislation, Running Start and transportation depreciation adjustments, higher education administrative reductions, corrections staffing and bed changes, and natural resources funding including wildfire response and low-income energy assistance. They said the conference report results in $80.2 billion in near general fund spending for 2025-27, with projected ending fund balances of $231 million in 2025-27 and $563 million in 2027-29, though fiscal year 2028 shows a negative near general fund ending balance. After the briefing, Senator Robinson moved to adopt the conference report and pass the bill, and the motion was seconded. Supporters said the budget reflected a compromise between House and Senate proposals and protected core services, while opponents criticized it as overly reliant on optimistic revenue assumptions, the rainy day fund transfer, and reductions in K-12 and other areas. The committee then voted 4-2 to recommend the conference report to the legislature, with Representatives Gregerson and Ormsby and Senators Robinson and Stanford in support, and Representative Couture and Senator Gildon opposed.

Transcript Highlights:

• And the rest, I think, were fluctuating here and there as they went through negotiations.
• And the rest, I think, were fluctuating here and there as they went through negotiations.

Summary: The conference committee on Engrossed Substitute Senate Bill 5998 met to review the operating budget conference report. House and Senate budget coordinators walked through comparison documents showing the Senate-passed budget, House-passed budget, and the conference proposal, including statewide totals, agency detail, revenue assumptions, transfers, and the four-year outlook. They said the conference budget uses the February 2026 ERFC forecast, includes an $880 million transfer from the budget stabilization account to the general fund, and reflects a four-year net near-general-fund impact of about $800 million, with an ending fund balance of $231 million in 2025-27 and $563 million in 2027-29. They also noted that future collective bargaining agreements are not included in the outlook beyond those already settled. The briefing highlighted major policy items across the budget, including Working Families Tax Credit expansion, a proposed city and county fiscal health account, changes to Working Connections child care attendance payments, behavioral health facility and staffing adjustments, long-term care funding for certain non-citizen residents affected by federal changes, Apple Health and other health-related responses to H.R. 1, K-12 changes such as free school meals contingent on related legislation, Running Start and transportation depreciation adjustments, higher education administrative reductions, corrections staffing and bed changes, wildfire response funding, and state employee compensation agreements. Members also discussed the budget’s reliance on revenue measures and transfers, including legislation referenced as 2487, 6228, 6231, and 6346. After the presentation, Senator Robinson moved adoption of the conference report and passage of the bill as recommended by the committee. In discussion, supporters said the budget protected core services and responded to federal H.R. 1 impacts, while opponents criticized the size of the budget, the use of reserves, future outlook assumptions, and reductions in some K-12 and other programs. The committee then voted 4-2 to recommend the conference report and ESSB 5998 to the legislature, with Representatives Gregerson and Ormsby and Senators Robinson and Stanford in favor, and Representative Couture and Senator Gildon opposed.

Transcript Highlights:

• It is not necessarily consistent with how that arrives in how that term is negotiated in a contract.
• any testimony that's been presented in support of these bills that say that parties are unable to negotiate

Committee: House Health and Mental Health

Summary: The committee first heard public testimony on House Bill 2570, which would prohibit health insurers from limiting payment for anesthesia services based on the length of a surgical procedure. The bill sponsor said the measure was prompted by a prior Anthem policy that would not cover all anesthesia time if a surgery ran long, and argued that insurers should not create pressure to stop or rush procedures. Supporters from physician and nurse anesthetist groups said the bill would protect patients and providers from unfair time-based payment limits. An insurance industry witness raised concerns about unclear definitions, possible internal contradictions in the bill’s language, the use of time-based billing formulas, and whether dental anesthesia should be excluded; the sponsor responded that the bill was aimed at medical, not dental, anesthesia and that any wording issues could be worked out later. After the hearing, the committee moved into executive session on a combined committee substitute for House Bills 1945 and 2570. Members discussed an amendment rolling HB 2570 into the larger substitute and noted minor changes to the anesthesia language, including adding modifiers and clarifying billing terms, while also adjusting unrelated pathology language to make it workable with the department and possible Medicaid waiver requirements. Questions from members focused on whether the insurance industry’s concerns were addressed and whether dental anesthesia should be exempted; the sponsor said some concerns could be handled later and that dental situations involving separate anesthesia providers might still need careful drafting. The committee adopted the amendment and substitute and then voted the combined committee substitute do pass by roll call, with the motion approved unanimously by those present.

Transcript Highlights:

• Given the fact that the Colorado River negotiations have not gone well and that Arizona runs the risk
• But this just reminds our negotiators for the budget that we have to have that conversation.

Committee: Senate Senate Natural Resources Committee of Reference

Summary: The Natural Resources Committee heard three bills related to water policy and all were given do pass recommendations. HB 2029 would require disclosure information for applicants to the Water Conservation Grant Fund, and an amendment broadened the disclosure requirements from only certain water users to all eligible entities. WIFA testified neutral on both the bill and amendment, noting it already collects much of the information; the committee adopted the amendment and then passed the bill 8-0. HB 2096 would allow counties to receive WIFA financial assistance, including forgivable principal, for cesspool remediation, closure, or replacement when there is a risk to water or public health. WIFA and county representatives from the County Supervisors Association and Gila County supported the bill, explaining that counties need clearer authority to accept loans and grants for cesspool cleanup, especially in rural areas with thousands of aging cesspools and flood-related contamination. Members discussed impacts in Gila County and other areas, and the bill passed 8-0. HB 2116 would appropriate $1 million from the State General Fund in FY 2027 to the Colorado River Litigation Fund. The Arizona Municipal Water Users Association supported the measure as preparation for possible Colorado River litigation, while members emphasized that the funding is a placeholder and that they hope litigation will not be necessary. The committee passed the bill 8-0 and then adjourned.

Transcript Highlights:

• For that, I am excited to give this tax package the 'yes' Eskamani and as we go to negotiations for the
• So I look forward to the negotiations and hopefully we will have a deadline and a sine die on time, but

Transcript Highlights:

• related to the WTO, was voluntarily repealed by us at the request of Boeing through voluntary negotiations
• related to the WTO, was voluntarily repealed by us at the request of Boeing through voluntary negotiations

Bills: HB2730 , HB2713

Committee: House Finance

Keywords: aerospace, tax preferences, effectiveness, economic impact, state revenue, private detention facilities, business tax, occupation tax, financial impact

Transcript Highlights:

• related to the WTO, was voluntarily repealed by us at the request of Boeing through voluntary negotiations
• related to the WTO, was voluntarily repealed by us at the request of Boeing through voluntary negotiations

Summary: The House Finance Committee held public hearings on two bills. HB 2730 would clarify how JLARC evaluates the effectiveness of existing aerospace tax preferences by requiring a rolling five-year comparison of Washington aerospace employment with other states and asking JLARC to consider broader aerospace-sector changes and economic conditions. The prime sponsor and labor testifiers said the bill would add needed clarity and accountability for major tax investments supporting aerospace jobs. A committee question raised whether JLARC would be directed to make recommendations for improving the incentive, and staff and the sponsor said the bill does not specifically require that. HB 2713 would impose a 1% B&O tax surcharge, beginning July 1, 2026, on operators of private detention facilities with more than $1 million in annual Washington gross receipts. The sponsor said the bill is intended to respond to harms associated with private detention and to help fund services and legal support for affected families and communities. A remote testifier urged a much higher surtax on GEO Group, which operates the Northwest Detention Center, while county representatives testified that the bill as written could unintentionally apply to Martin Hall, a juvenile facility in Spokane County that is publicly governed and operated day-to-day by a nonprofit contractor. They asked for an exemption for Martin Hall, and the sponsor said that inclusion of nonprofits was not intended and that she would work with them on amendments. No votes were taken on either bill. The committee closed testimony on HB 2730 and HB 2713 and then adjourned.

Transcript Highlights:

• Dealership Association, and we also worked with the banks and credit unions to make sure that we negotiated
• Dealership Association, and we also worked with the banks and credit unions to make sure that we negotiated

Committee: House Ways and Means

Transcript Highlights:

• There wasn't any negotiation, there wasn't any; it was basically to be consistent with 2021.
• But there wasn't anything else, there wasn't any big negotiations consistent with what we did in 2021

Transcript Highlights:

• But, you know, during our conference, we were talking about the ability to negotiate, to get the best
• Negotiate to get the best deal like sharing commissions, rebating a little bit on the large commercial

Summary: The conference committee on Senate Bill 2374 discussed proposed amendments to the insurance rebating provisions and a new study on towing and recovery issues. Deputy Insurance Commissioner John Arnold explained that, after working with industry representatives, the compromise was to remove the large commercial rebating exemption language and keep the rest of the bill intact, while also clarifying that federal crop insurance remains subject to the state’s rebating laws. Members asked several questions about how the large commercial risk definition would work, how the rules would apply to nonresident producers and border-area farm policies, and whether the changes would affect long-standing industry practices. The committee also considered Commissioner Godfrey’s request for a study on who pays to remove vehicles from the roadside when the owner has liability-only coverage, especially in cases involving totaled or abandoned vehicles. Arnold said the issue has been raised by Highway Patrol and towing interests and that the study language was intended to examine possible solutions for the next legislative session. Some members expressed concern about shifting costs to the insurance industry, but others supported the study as a way to gain clarity. The committee adopted the amendment package, including the towing study language, by a 6-0 roll call vote. It then passed Senate Bill 2374 as amended by another 6-0 vote. The committee noted that the bill would need floor carriers on both chambers, with Representative Johnson and Senator Klein indicating they would carry it.

Transcript Highlights:

• 03:12:47.840><c> agreed</c><03:12:48.240><c> upon</c> negotiations Reggie's an agreed upon negotiations
• </c> each program review were negotiated each program review were negotiated also.<03:12:59.120><c> So
• </c><03:32:08.800><c> Um</c> This is language that was negotiated.
• Um This is language that was negotiated.
• Wouldn't you be negotiating the GMA?

Committee: House Science, Technology and Energy

Transcript Highlights:

• first time, the Department of Education will be directly represented in budget and legislative negotiations
• first time, the Department of Education will be directly represented in budget and legislative negotiations
• with you and your colleagues around issues around budget, in those budget negotiations... ...with you
• In those budget negotiations, right now, the State Department of Education doesn't have their champion
• They've independently elected champion, but they're not there in the room to make that negotiation.

Transcript Highlights:

• first time, the Department of Education will be directly represented in budget and legislative negotiations
• first time, the Department of Education will be directly represented in budget and legislative negotiations
• with you and your colleagues around issues around budget, in those budget negotiations... ...with you
• In those budget negotiations, right now, the State Department of Education doesn't have their champion
• They've independently elected champion, but they're not there in the room to make that negotiation.

Summary: The joint Senate Education and Budget Committee hearing focused on the Governor’s proposed education governance overhaul, which would shift day-to-day management of the California Department of Education from the elected Superintendent of Public Instruction to a new appointed education commissioner, while giving the Superintendent new voting roles on the State Board of Education and the Community College Board of Governors. Chair Perez opened by stressing that the proposal raises major policy questions beyond the budget process and should be evaluated for its effect on students, local control, and accountability. Brooks Allen of the State Board of Education argued the change would unify policymaking and implementation, reduce fragmented authority, and create clearer accountability, citing decades of reports criticizing California’s “crazy quilt” governance structure and noting the proposal is timed for the 2026 transition. Amber Alexander of the Department of Finance outlined the fiscal and staffing transfers, describing the plan as largely cost-neutral and explaining how positions would shift between the State Board, the Department, and the new Superintendent’s office over 2026-27 and 2027-28. Sarah Cortez of the Legislative Analyst’s Office said the LAO supports shifting management to an appointed commissioner but recommended several refinements: preserving legislative oversight, requiring Senate confirmation of the commissioner, clearly defining the Superintendent’s duties as a public representative/advisor/evaluator, and refining the State Board’s role to focus on major policies requiring public input. She also said the fiscal plan should be cost-neutral and more fully specified. Senators raised concerns about the timing during an election year, the constitutional status of the Superintendent, whether the proposal should instead be a constitutional amendment, and whether governance changes actually improve student outcomes or simply rearrange the org chart. Some members questioned whether the proposal would confuse voters and undermine democratic accountability, while others said the current structure is already confusing and that the reform could improve clarity for districts and local boards. The discussion also covered how curriculum is set, with LAO explaining that the Legislature has broad authority but has delegated much curriculum work to the State Board and the Instructional Quality Commission. Members asked how the new structure would affect local districts, who they would call for guidance, and whether the commissioner would have authority over policy; the presenters said policy authority would remain with the State Board, while the commissioner would handle administration and implementation. No votes were taken during the panel discussion, and the hearing was organized to continue with additional panels and public comment later in the meeting.

Transcript Highlights:

• in a first contract with the union, a contract that I presume is, that I know, currently under negotiations
• Improvements such as being able to negotiate and enforce a contract with management that guarantees things
• Improvements such as being able to negotiate and enforce a contract with management that guarantees things
• ><00:53:14.960><c> then</c><00:53:15.160><c> having</c><00:53:15.520><c> to</c><00:53:15.880><c> negotiate
• </c> not and and then having to negotiate not and and then having to negotiate with<00:53:17.400><c>

Committee: Senate Labor

Transcript Highlights:

• I thank you for asking the question because this has been about a three-year process of negotiations
• So each independent statewide association would be responsible for their own negotiations and cannot
• PBMs were intended to help negotiations between pharmacies and manufacturers.
• Follow-up: And would you believe that it is at least possible that those companies all negotiated and
• I have watched contracts that you cannot negotiate and pricing you cannot see.

Bills: SB65 , SB248 , SB330 , SB378 , SB844 , SB1330 , SB1410 , SB1475 , SB1476 , SB1565 , SB1618 , SB1623 , SJR39 , SJR47 , SB2084 , SB1655 , SB1679 , SB2174 , SB1775 , SB1873 , SB1204 , SB1884 , SB1916 , SB1937 , SB1447 , SB1500 , SB2007 , SB2074 , SB1944 , SB2018 , SB1984 , SB2026 , SB2045 , SB2049 , SB2062 , SB2112 , SB2118 , SB2127 , SB2134 , SB2135 , SB2139 , SB2154 , SB1195

Summary: The Senate first considered Senate Bill 1623, a measure updating the state charter for state-regulated credit unions to make them more competitive with federal credit unions. Two amendments were adopted: one changing certain board authority language from “shall” to “may,” and another restoring the title. Supporters said the bill was the product of years of negotiation with bankers and credit unions and would not affect national banks; after questions about membership expansion and census-tract service areas, the bill passed 44-0. The chamber then took up Senate Joint Resolution 39, which would send to voters a constitutional amendment lowering annual caps on assessed-value growth for homestead and agricultural property from 3% to 1%, and for other property from 5% to 3%. Proponents argued it would slow property-tax growth, help seniors and fixed-income homeowners stay in their homes, and not reduce government revenue but only slow future growth; opponents warned it would reduce local revenue growth for schools, counties, infrastructure, and bonding capacity, and would disproportionately benefit higher-value property owners. The resolution passed 38-8, and the special-election referral also passed 38-8. Senate Joint Resolution 47, which would place current voter ID requirements into the Constitution, also advanced and passed 39-8, with the special-election provision passing by the same margin. Supporters said it simply constitutionalized existing law requiring proof of identity and would preserve election security; critics said Oklahoma already has voter ID rules, the measure was unnecessary, and the language could create uncertainty for absentee voters and future changes. Debate also touched on provisional ballots, military and overseas voting, and whether the measure would make future adjustments harder. Later, Senate Bill 2084 passed 35-7 and as an emergency measure. The bill limits wrongful-termination settlements for faculty members at higher education institutions to two times annual salary, including pay and accrued benefits. Supporters said it would provide certainty for universities and regents; questions focused on tenure, free-speech claims, and how the cap would interact with existing tort limits. The Senate also passed Senate Bill 1655 unanimously to allow Oklahoma Complete Health’s Children’s Specialty Program to contact adoptive parents and offer continued voluntary services for post-adoption children, and Senate Bill 1679 was introduced as the “Preserving Oklahoma Values Act,” aimed at codifying adherence to the U.S. and Oklahoma Constitutions and rejecting foreign law, with debate beginning over its enforcement and scope.

Transcript Highlights:

• And Madam Chair, real quickly, do you have you spoken with a sponsor about how it's been negotiated in
• I've been negotiating with eight to ten sides of this from the AG's office, DEL, We're negotiating with
• If somebody files a referendum with the city, people keep talking, people negotiate, or people's feelings
• negotiate or people's feelings change then why shouldn't that organization be able or that person to
• As the sponsor mentioned, the amendment does reflect the continuing negotiation that we have had with

Summary: The committee took up House Bill 2308, which would prohibit a dental insurer or its holding company from owning interests in dental practices regulated by the Arizona Board of Dental Examiners. The sponsor and Arizona Dental Association argued the bill is meant to prevent vertical integration and insurer control over provider care, while Delta Dental opposed it, saying the measure would block nonprofit insurers from investing in clinics for indigent care and create divestment burdens. After discussion of possible exemptions and market-share caps, the committee passed HB 2308 on a 7-0 vote. The committee then considered House Bill 4001, as amended, which creates a licensing and enforcement framework for alternative nicotine products beginning in 2028, increases penalties for sales to minors, restricts youth-oriented marketing, and licenses manufacturers and distributors. Supporters, including the sponsor, Border Security Alliance, Arizona Petroleum Marketers Association, and Vapor Technology Association, said the bill would improve supply-chain transparency and help curb illegal products and youth vaping. Opponents, including the American Cancer Society Cancer Action Network, argued it should instead use a full tobacco retail licensing model and that the bill’s enforcement structure lacks sufficient resources. The committee adopted the amendment and passed the bill 6-1. House Bill 2873, as amended, was also approved unanimously. The strike-everything amendment allows a person or organization that filed a city or town referendum petition to withdraw it before ballot qualification, applies the rule retroactively to withdrawals filed on or after January 1, 2026, and bars tallying or canvassing votes for referenda with a withdrawal notice. The sponsor described it as a common-sense governance fix, and the committee gave it a 7-0 do-pass recommendation. The committee next heard House Bill 2408, which revises Arizona Board of Nursing complaint procedures, confidentiality, investigation timelines, expungement authority, and related disciplinary processes. Nursing board officials opposed parts of the bill, warning that changes to nursing education oversight and tighter deadlines could weaken patient safety and increase costs and liability, while the Arizona Nurses Association and several nurses supported the bill as a way to prioritize serious complaints, improve timeliness, and allow expungement in appropriate cases. After adopting the amendment, the committee passed HB 2408 on a 5-2 vote. The committee also passed House Bill 2342, which limits HOA restrictions on backyard shade structures, and House Bill 2323, which extends Arizona’s motor vehicle lemon law protections to lessees, both by unanimous votes. Finally, the committee began hearing House Bill 4010 on creating a Board of Genetic Counselors, with the sponsor and supporters describing it as a licensure and patient-safety measure; the transcript ends during testimony on that bill.

Transcript Highlights:

• And Madam Chair, real quickly, do you, have you spoken with a sponsor about how it's been negotiated
• I've been negotiating with eight to ten sides of this from the AG's office, DEL, We're negotiating with
• If somebody files a referendum with the city, people keep talking, people negotiate, or people's feelings
• negotiate or people's feelings change then why shouldn't that organization be able or that person to
• As the sponsor mentioned, the amendment does reflect the continuing negotiation that we have had with

Bills: HB2072 , HB2251 , HB2279 , HB2308 , HB2323 , HB2342 , HB2400 , HB2408 , HB2456 , HB2660 , HB2697 , HB2868 , HB2873 , HB2877 , HB2910 , HB2946 , HB2955 , HB2991 , HB4001 , HB4010

Committee: Senate Regulatory Affairs and Government Efficiency

Keywords: Cesar Chavez, public holiday, state law, holiday repeal, Arizona Revised Statutes, dental practice, business registration, registration fees, ownership interests, dental insurers, dental record management, motor vehicle warranty, warranty law, leased vehicles, lease-end buyout, lessee, lessor, used motor vehicle dealer, consumer protection, A.R.S. 44-1261

Transcript Highlights:

• I'm like, oh, I'm going to get to negotiate on what's coming on the agenda.
• These changes come about as a result of negotiations with the House.
• These changes come about as a result of negotiations with the House.
• This is the language from Senate Bill 1620 onto the House bill, and it is a product of negotiation between
• I appreciate the fact that you negotiated that we have a bill as opposed to nothing.

Transcript Highlights:

• You know, again, these are private contracts negotiated, as Ms.
• And so some may be higher than others, but that's up to the plans and the two entities negotiating to
• Lundy said, even on the independent pharmacy side, there are still negotiated rates that are higher than
• That's owned only by one side, which means negotiating and creating good policy can be problematic.
• That's owned only by one side, which means negotiating and creating good policy can be problematic.

Summary: The committee heard House Bill 2433, which would require insurers offering Medicare supplement policies to people 65 and older to also offer them to Medicare beneficiaries under 65 with ALS or end-stage renal disease, with enrollment periods and premium protections tied to 65-year-old rates. Supporters, including dialysis and ALS advocates, said the bill would help a small population facing high out-of-pocket costs and could improve access to transplants and care; opponents argued it would shift costs onto older seniors and raise Medigap premiums. The committee recommended the bill do pass on a 12-0 vote. The committee also heard House Bill 2593, appropriating $1.5 million to the University of Arizona for the Arizona Perinatal Psychiatry Access Line. The sponsor and physicians testified that the line helps obstetric and pediatric providers quickly consult on perinatal depression, postpartum psychosis, suicidality, and other mental health crises, improving outcomes for mothers, children, and families and reducing costly emergency and crisis care. The bill received a do pass recommendation on a 10-1 vote. House Concurrent Resolution 2013, proclaiming June 2026 as Celebrate Life Month, drew emotional testimony from a young woman with spina bifida and another speaker supporting the sanctity of life. Some members objected that the state should focus on practical supports such as paid leave, child care, and health care access, while others supported the resolution as a statement of human dignity. The resolution passed the committee 7-5. The committee then approved House Bill 4010, creating a Board of Genetic Counselors and licensure standards, after testimony from genetic counselors and a patient advocate about the need for qualified counseling and better access; it passed 11-1. Later, the committee approved House Bill 2196, which would require pharmacy benefit managers to reimburse non-affiliated pharmacies at least their acquisition cost and pay a dispensing fee, and establish an appeals process. Independent pharmacists and their coalition said PBM practices are driving closures and unfairly favor affiliated pharmacies, while PBM and employer representatives warned of major cost increases and said the bill would interfere with private contracts; the bill passed 11-1. The committee also adopted a strike-everything amendment to House Bill 2182 requiring insurers and health plans to report claims denial and prior authorization data to DIFI, and then gave the amended bill a 12-0 do pass recommendation. Finally, the committee approved House Bill 2189, directing the Board of Nursing to update rules for licensed health aides and collect annual data, with the sponsor and board staff saying it would help implement routine ventilator care in the home; it passed 12-0. The committee then began hearing House Bill 2404, a strike-everything amendment on inter-facility transports for behavioral health patients, but the transcript cuts off before action on that bill.