Transcript Highlights:

• actually have to engage a windstorm engineer that designs the home according to the wind speed calculations
• I'll get you calculations in one or two years because it's up to three years to repay it.
• Premium tax revenue, all of which flows into general revenue, was $6.7 billion.

Bills: HB778 , HB 1266 , HB1576 , HB2213 , HB2517 , HB2518 , HB2841 , HB3306 , HB3320 , HB3388 , HB3508 , HB3520 , HB3689

Committee: House Insurance

Transcript Highlights:

• And so they do the calculations based on what they're told, but nobody verifies if what they're told
• review Medicaid managed care plans, encounter data, financials and audits, and the data used to calculate
• Every unnecessary patient return is a loss of time and revenue.
• Every unnecessary patient return is a loss of time and revenue.

Committee: Senate Health Policy

Summary: The Health Policy Committee heard and advanced several health-related bills. SB 1546 on background screening for athletic coaches was explained as another extension of the deadline for coaches to be added to the background screening clearinghouse; it passed favorably with support from athletic and youth sports organizations. SB 958 on type 1 diabetes early detection was amended to match the House version, requiring the Department of Health to provide school districts, school boards, and charter schools with informational materials for parents; it was reported favorably as a committee substitute. CS/SB 1070 on electrocardiograms for student athletes drew extensive discussion about sudden cardiac arrest prevention, implementation timelines, costs, funding through private and public sources, and whether insurance, KidCare, or Medicaid should cover screenings; after supportive testimony from school and athletic groups, it was reported favorably as a committee substitute. The committee also heard SB 1060, which would create a joint legislative oversight committee for Medicaid managed care to review encounter data, financials, audits, and rebate calculations with assistance from an actuary and the Auditor General. The sponsor and several senators framed it as a transparency and verification measure in response to large mid-year Medicaid funding increases and concerns about network adequacy and vertical integration; it passed favorably. CS/SB 944, which shortens the insurer overpayment recovery look-back period for claims involving psychologists from 30 months to 12 months, also passed favorably with support from the Florida Psychological Association. SB 1370, moving ambulatory surgical centers into their own statute rather than under hospital licensure provisions, was supported by surgery center representatives and reported favorably. The committee approved SB 768, as amended, to narrow the foreign-country-of-concern licensure attestation for health care entities to direct controlling interests and clarify the “reasonable efforts” standard; it passed after questions about how the standard would work in practice. SB 1544 on opticianry prompted significant debate over whether the bill would limit nonlicensed staff in ophthalmology and optometry settings; after a proposed amendment was withdrawn and multiple witnesses spoke both for and against, the bill was temporarily postponed. Finally, the committee adopted a strike-all amendment to SB 1808 requiring health care practitioners and facilities to refund patient overpayments within 30 days, with enforcement through AHCA fines or professional discipline, and then reported the bill favorably.

Transcript Highlights:

• One of them is the yield of your crops or the revenue that you generate in your ag business.
• One of them is the yield of your crops or the revenue that you generate in your ag business.
• You're not generating revenue and can lose your ag status.
• I think you're representing Tax and Revenue, is what we're talking about.
• Okay, so it's Tax and Revenue.

Committee: House House Agriculture, Acequias And Water Resources

Transcript Highlights:

• The current ERCOT economic cost-benefit practice only calculates costs and benefits for three years,
• Would you calculate that in your 20-year analysis?
• Would you be okay with calculating that as part of the cost-benefit analysis?
• As a former banker, I can tell you we matched all revenue, valued all revenue, no matter how ...how long
• In almost all cases, the rates would be higher than the revenues the commission will ultimately find

Bills: HB246 , HB796 , HB 1056 , HB1544 , HB1846 , HB2001 , HB2618 , HB2625 , HB2869 , HB2898 , HB3069 , HB3114 , HB3157 , HB3228 , HJR98 , HB246

Committee: House State Affairs

Transcript Highlights:

• In our revenue stream, yes, our revenue stream is about 53% dependent on oil and gas.
• If we have a loss in revenue, we have 30% to cover it.
• Reduction, we might have a loss in revenues.
• Security revenues.
• It was in the short-term revenue estimate last month.

Transcript Highlights:

• Uh, there was provisional changes to how the FTEs are calculated for health insurance.
• eligibility they're actually calculated and considered kind of in a different way.
• The Revenue Committee will meet tomorrow at 0800 in Room W002. >> Thank you, Mr.
• </c><01:28:36.560><c> The</c><01:28:36.719><c> revenue</c> &gt;&gt; Thank you, Mr. President.
• The revenue &gt;&gt; Thank you, Mr. President.

Transcript Highlights:

• Second, the legislature can bring the choice to vote on dedicating revenue to housing to voters through
• </c> not support modifying how to calculate not support modifying how to calculate rent<00:29:35.200>
• vote legislature can bring the choice to vote on<00:30:32.320><c> dedicating</c><00:30:32.799><c> revenue
• to</c><00:30:33.360><c> housing</c><00:30:34.159><c> uh</c><00:30:34.320><c> to</c> on dedicating revenue
• to housing uh to on dedicating revenue to housing uh to voters<00:30:34.799><c> through</c><00:30:35.039

Transcript Highlights:

• that is to say credit card usage Revenue that is to say credit card usage Revenue<01:07:15.760><c> the
• </c><02:08:23.440><c> yeah</c> because we don't have the revenue yeah because we don't have the revenue
• </c> does inform it but the way we calculate does inform it but the way we calculate the<02:24:29.880
• </c> about future Imports of oil and revenues about future Imports of oil and revenues and<04:55:49.798
• and we roughly those if we calculate and we roughly calculated<05:16:47.440><c> that</c><05:16:47.558

Summary: The Department of Administrative Services presented an overview of its budget and operations, emphasizing that it is the lowest-spending agency in state government and that its general fund allocation has declined since 2019. Commissioner Arling House explained that DAS also handles back-office functions for several administratively attached boards, which has affected staffing and spending comparisons. He said the department’s current general fund spending is roughly split between retiree health and other operations, and that the presentation was based on adjusted authorized spending rather than the original budget figures. A major portion of the meeting focused on retiree health benefits and the long-term effort to control costs. Deputy Commissioner Cassie Keane described how the state moved from a projected deficit in retiree health to savings through a series of changes, including higher premium contributions, co-pay adjustments, and shifting Medicare retirees into Medicare Advantage arrangements to capture federal reimbursement. She said the state has about 12,500 retirees and spouses on the plan, with roughly 10,906 Medicare retirees and 1,580 non-Medicare retirees, and that the savings have depended heavily on federal funding and procurement decisions. She also noted that Medicare retirees pay Part B premiums and that the state has grandfathered older retirees from some premium contributions. Members asked about what the expenditures cover, why the state offers retiree health instead of simply giving retirees a payment to buy coverage themselves, and whether out-of-pocket costs changed under Medicare Advantage. Keane said the plan covers actual health claims or insurance premiums, that co-pays and maximum out-of-pocket limits remain in place, and that the state has no authority to change benefit details without legislative action. She explained that retiree health is a long-standing employee benefit that wraps around Medicare and is not collectively bargained in the usual sense, though its eligibility rules and cost-sharing have been tightened over time to better target the benefit to long-term state service. The discussion also covered vendor performance problems. Keane said Anthem recently won the contract back from Aetna, but its pharmacy subsidiary, Caroline, caused serious service disruptions. DAS responded by withholding payments, assessing more than $2 million in performance guarantees, and hiring a third-party auditor to review the pharmacy processes. The current contract runs through the end of calendar year 2026, and officials said they are watching federal Medicare Advantage reimbursement changes closely because future savings are uncertain.

Transcript Highlights:

• Good afternoon, and welcome to the hearing of the Assembly Committee on Revenue and Taxation.
• That changed with the enactment of Revenue and Taxation Code Section 17082 in 2023.
• That changed with the enactment of Revenue and Taxation Code 17082 and 2023.
• It's a different way of calculating a tax.
• Revenue and Taxation Committee stands adjourned. Thank you very much. Thank you.

Summary: The Assembly Committee on Revenue and Taxation heard a series of tax-related bills, with several measures referred to suspense and a few advancing. SB 284 would clarify Proposition 19 rules for inherited family homes in probate, including when the one-year residency clock starts and whether title consolidation among siblings triggers reassessment; supporters included the California Association of Realtors, while county assessors opposed the sibling-transfer language as creating ambiguity. The bill was sent to suspense. SB 863 was taken up on the consent calendar and passed 6-0 to the Assembly floor. SB 333 would let San Luis Obispo County voters consider raising a local tax rate limit to fund transportation projects; supporters said it would help the county become self-help for major road needs, while opponents argued it would make it easier to raise regressive sales taxes. The committee approved the bill 5-2, as amended with a five-year sunset. SB 376, which clarifies that charitable remainder trusts are not treated as incomplete gift non-grantor trusts for California income tax purposes, drew support from the California Lawyers Association and no opposition, and passed 5-2 to Appropriations as amended. The committee also heard SB 591, which would replace steep penalties for failing to use electronic funds transfer with fixed penalties of $100 for a first violation and $500 thereafter; supporters said current penalties can be excessive and out of proportion, and the bill was sent to suspense. SB 419 would partially exempt hydrogen fuel from the state sales and use tax while leaving the existing road fee in place; supporters said it would help hydrogen adoption and parity with other clean fuels, while one environmental group opposed unless amended, and the bill went to suspense. SB 587 proposed a state tax credit for local sales tax paid on manufacturing equipment to encourage investment and jobs; it had broad business support and no opposition, but was also sent to suspense. SB 710 would extend and update the property tax exclusion for solar installations, with broad support from clean energy and local government groups and some opposition from large energy consumers; it too was referred to suspense. Finally, SB 663 would extend deadlines and exemptions for wildfire victims and certain nonprofit and disabled veteran properties; it received support from assessors and committee members but was also sent to suspense for further work.

Transcript Highlights:

• We recognize and understand that revenues and expenditures now are not really working together.
• Our revenue picture is not as bright as we'd like to see it, but we also recognize that the adequacy
• The revenues do not support that, and right now the department's been told, cut your budgets back 8%
• So this would be non-swept state revenues, so this is from the basket of other things, right?
• and fully transparent on how I calculate that number.

Summary: The executive session focused primarily on HB 563, which revises the school funding formula, especially the adequate education grant amounts for special education students and the treatment of fiscal capacity disparity aid. Representative Ladd moved OTPA on Amendment 06508, explaining that FY 26 would largely hold the current formula steady, while FY 27 would increase several per-pupil amounts, including base cost, free and reduced-price meals, English language learner aid, and special education differentiated aid. He said the special education change was based on estimated case loads across disability categories and that the amendment also reinstates fiscal capacity disparity aid, using a formula intended to better assist property-poor communities. Several members supported the amendment as a step in the right direction, saying it better recognizes special education costs and separates property wealth from low-income student counts. Others raised concerns about the lack of time and the absence of a printed spreadsheet showing how the fiscal capacity disparity aid would affect each town. In response, sponsors said the spreadsheet existed, that the LBA had copies, and that the amendment would help about 40 target towns, while Manchester would be the main community receiving less under the new formula because of prior shifts in the extraordinary needs grant. Discussion also covered the broader impact of the bill, with members noting that about 200 of the state’s 245 cities and towns would see an increase and 45 a decrease under the proposed FY 27 changes. Supporters argued the bill was a compromise given limited revenues and that it should move forward so it can be considered by the full House and then Finance. No final vote on the amendment or bill was taken in the portion provided, and the chair indicated the committee was still deciding whether it had enough information to proceed.

Transcript Highlights:

• revenue revenue &gt;&gt; Can<00:41:39.120><c> you</c><00:41:39.200><c> tell</c><00:41:39.360><c> me<
• Uh it the calculation of how land, okay?
• Revenue. Revenue.
• </c><01:24:08.400><c> bill,</c> it is designated as a revenue bill, it is designated as a revenue bill
• </c> and so therefore it makes it a revenue and so therefore it makes it a revenue bill,<01:24:46.400

Transcript Highlights:

• outside of the Treasury and provides a statutorily directed deposit of $500 million from sales tax revenue
• Weatherford, all the, just the local little spinoffs that I know are hard to put into the calculations
• More dollars, that goes into general revenue. Correct, yeah. And those dollars.
• And so that has to be calculated some way.
• . the revenue that the business takes in, but the credit card user has no idea how much that is.

Bills: SCR37 , SB60 , SB226 , SB231 , SB264 , SB387 , SB570 , SB596 , SB651 , SB769 , SB855 , SB863 , SB991 , SB1079 , SB1085 , SB1151 , SB1191 , SB1214 , SB1243 , SB1247 , SB1314 , SB1364 , SB1372 , SB1401 , SB1409 , SB1504 , SB1522 , SB1625 , SB1662 , SB1663 , SB1728 , SB1759 , SB1762 , SB1804 , SB1818 , SB1838 , SB1839 , SB1851 , SB1855 , SB1872 , SB1873 , SB1874 , SB1877 , SB1879 , SB1901 , SB1919 , SB1921 , SB1923 , SB1936 , SB1937 , SB1968 , SB1977 , SB2034 , SB2053 , SB2066 , SB2077 , SB2124 , SB2143 , SB2166 , SB2180 , SB2204 , SB2231 , SB2237 , SB2243 , SB2321 , SB2569 , SJR39 , SJR68 , SCR29 , SCR42 , SB22 , SB30 , SB33 , SB37 , SB75 , SB217 , SB240 , SB331 , SB393 , SB505 , SB530 , SB546 , SB552 , SB584 , SB586 , SB618 , SB626 , SB636 , SB732 , SB762 , SB769 , SB825 , SB844 , SB870 , SB884 , SB926 , SB964 , SB1080 , SB1099 , SB1150 , SB1177 , SB1184 , SB1261 , SB1262 , SB1314 , SB1325 , SB1364 , SB1398 , SB1455 , SB1506 , SB1524 , SB1577 , SB1596 , SB1620 , SB1624 , SB1642 , SB1643 , SB1646 , SB1667 , SB1727 , SB1760 , SB1789 , SB1791 , SB1804 , SB1806 , SB1851 , SB1868 , SB1870 , SB1901 , SB1923 , SB1927 , SB1951 , SB1960 , SB1962 , SB2010 , SB2023 , SB2024 , SB2037 , SB2051 , SB2052 , SB2056 , SB2066 , SB2122 , SB2129 , SB2180 , SB2183 , SB2185 , SB2207 , SB2226 , SB2252 , SB2323 , SB2361 , SB2368 , SB2405 , SB2420 , SB2425 , SB2569 , SB2717 , SB2949 , SB1 , SJR36 , SJR50 , SJR39 , SJR63 , SJR68 , SCR12 , SCR39 , SCR38 , SCR37 , SCR42 , SCR29 , SB1596 , SB33 , SB505 , SB37 , SB62 , SB666 , SB847 , SB284 , SB854 , SB1073 , SB810 , SB1539 , SB1505 , SB583 , SB957 , SB1502 , SB507 , SB1026 , SB1349 , SB1433 , SB1434 , SB264 , SB1364 , SB1376 , SB1585 , SB1772 , SB2016 , SB1163 , SB619 , SB1122 , SB1877 , SB732 , SB731 , SB397 , SB508 , SB1436 , SB964 , SB287 , SB2143 , SB261 , SB1247 , SB1882 , SB618 , SB393 , SB2243 , SB2226 , SB1919 , SB1791 , SB22 , SB651 , SB1080 , SB826 , SB1079 , SB1243 , SB1504 , SB1851 , SB1879 , SB2237 , SB1257 , SB2034 , SB1522 , SB1151 , SB596 , SB1191 , SB226 , SB570 , SB870 , SB991 , SB60 , SB1401 , SB1728 , SB586 , SB529 , SB217 , SB209 , SB1923 , SB1839 , SB387 , SB1874 , SB1872 , SB1873 , SB1921 , SB1883 , SB1620 , SB1838 , SB2024 , SB2429 , SB1999 , SB511 , SB2309 , SB2166 , SB510 , SB2420 , SB1860 , SB1314 , SB1398 , SB855 , SB2425 , SB2037 , SB1759 , SB1924 , SB1818 , SB1762 , SB1968 , SB1977 , SB2077 , SB2321 , SB1662 , SB1663 , SB2124 , SB2204 , SB1855 , SB863 , SB2252 , SB1962 , SB2253 , SB825 , SB1577 , SB1184 , SB2018 , SB2206 , SB1901 , SB2368 , SB1963 , SB1960 , SB1643 , SB1625 , SB1299 , SB841 , SB668 , SB584 , SB231 , SB1085 , SB2431 , SB2231 , SB1490 , SB530 , SB1261 , SB552 , SB1099 , SB1646 , SB2180 , SB1804 , SB1937 , SB1936 , SB2569 , SB1372 , SB1506 , SB1806 , SB1868 , SB2361 , SB2314 , SB769 , SB1409 , SB2122 , SB434 , SB1214 , SB1951 , SB2183 , SB2046 , SB1667 , SB1870 , SB1727 , SB2405 , SB2127 , SB1975 , SB1760 , SB1734 , SB1335 , SB2066 , SB2129 , SB2246 , SB2439 , SB1624 , SB1244 , SB1468 , SB2717 , SB1612 , SB1262 , SB604 , SB2395 , SB2185 , SB1832 , SB1745 , SB1746 , SB2207 , SB2023 , SB1784 , SB1524 , SB626 , SB528 , SB437 , SB269 , SB1137 , SB968 , SB636 , SB747 , SB1325 , SB1789 , SB1455 , SB2056 , SB75 , SB1940 , SB2052 , SB1927 , SB2010 , SB1579 , SB2068 , SB3034 , SB844 , SB1920 , SB1177 , SB1558 , SB1236 , SB1044 , SB926 , SB884 , SB463 , SB331 , SB227 , SB240 , SB517 , SB1200 , SB1410 , SB1626 , SB1845 , SB1863 , SB2216 , SB2681 , SB1717 , SB2053 , SB546 , SB2141 , SB2949 , SB2323 , SB2200 , SB2332 , SB2199 , SB1642 , SB1150 , SB1757 , SB2050 , SB1138 , SB2051 , SB2626 , SB2458 , SB1864 , SB30 , SB2201 , SB1862 , SB1583 , SB1055 , SB2660 , SB1898 , SB2662 , SB2161 , SB2964 , SB2881 , SB1065 , SB801 , SB2743 , SB2533 , SB1413 , HJR4 , SB2073 , SB3014 , SB3013 , SB2774 , SB2702 , SB2629 , SB2443 , SB2349 , SB2167 , SB2145 , SB2121 , SB758 , SB648 , SB647 , SB512 , SB438 , SB1721 , SB2268 , SB1495 , SB2705 , SB2366 , SB1422 , SB1369 , SB1013 , SB682 , SB2692 , SB2570 , SB2797 , SB2111 , SB1896 , SB1164 , SB1020 , SB663 , SB2371 , SB1152 , SB2196 , SB2383 , SB2581 , SB2798 , SB330 , SB646 , SB843 , SB1998 , SB1418 , SB2788 , SB1169 , SB2873 , SB1754 , SB1534 , SB1718 , SB2779 , SB2004 , SB1143 , SB1756 , SB912 , SB2119 , SB2032 , SB527 , SB1580 , SB1952 , SB2601

Transcript Highlights:

• So we have not seen the scientific calculations on this. >> Madam President, will the sponsor continue
• >> Through you, Madam President, the Climate Action Task Force Did calculations this will be saving New
• So why are we exempting that power from our greenhouse gas emission calculations?”
• It is the other forms that we are exempting from the calculation.
• IT IS THE OTHER FORMS THAT WE ARE EXEMPTING FROM THE CALCULATION.

Summary: The Senate convened, approved the prior journal, and then moved through a series of budget-related and ceremonial items. The chamber accepted Rules and Finance Committee reports and took up several budget extender and budget implementation bills, including the main appropriations extender and later a transportation, economic development, and environmental conservation budget bill. Senators questioned the sponsor extensively about the status of the remaining budget bills, the use of messages of necessity, and the absence of joint budget conference committees. The extender bill passed 59-2, and later budget-related measures were advanced after reconsideration and amendment. A major portion of the session focused on the environmental and energy provisions in the budget bill, especially changes to the Climate Leadership and Community Protection Act. Senators debated extending emissions targets, the role of cap-and-invest, utility affordability, ratepayer impacts, and the structure of a proposed blue-ribbon commission. Supporters said the changes were needed to give the state more time to implement the law and to protect affordability, while opponents argued the bill was a political delay that would not lower energy costs and relied too heavily on subsidies and future planning. The bill also drew questions about electric vehicle rebates, thermostat control programs, emergency diesel generation for Micron, and how imported electricity and out-of-state emissions would be treated. The Senate also adopted several previously adopted resolutions honoring the 50th anniversary of the National Black Caucus of State Legislators, India Independence Day, the New York State Veterans Hall of Fame, and the 50th anniversary of Interfaith Works of Central New York. Senators spoke in support of each resolution, highlighting the contributions of Black legislators, Indian-American communities, veterans, and refugee and interfaith service organizations. The Veterans Hall of Fame ceremony was specifically noted as a chamber event, and guests were recognized from the floor and gallery. In addition, the Senate restored recalled bills to the third reading calendar through reconsideration votes and amendments, including a highway law bill and another recalled bill, and then stood at ease for scheduled conferences and a Veterans Hall of Fame ceremony before resuming session. The transcript ended with discussion of a separate bill affecting automobile insurance serious-injury standards, with questions about what claims would remain available and whether the change would improve affordability.

Transcript Highlights:

• contract for a university-wide sponsorship strategy and collaboration with stakeholders to increase revenue
• program, where they sell sponsorships to third parties to sponsor the program, a way to generate revenue
• Representative Kavanaugh: What is the projected revenue for this $996,000?
• A lot of folks like to tap into it, but there is real revenue opportunity for this campus-wide sponsorship
• assumption representative odd, but usually when we reference 100% state, that would be a general revenue

Committee: All ALC-REVIEW

Transcript Highlights:

• So shifting The revenue collected by the state on those institutions.
• Yet every swipe subjects those dollars to interchange fees as if they were restaurant revenue.
• Yet every swipe subjects those dollars to interchange fees as if they were restaurant revenue.
• We have one business model, one revenue stream, and one of the thinnest margins in our industry.
• We have one business model, one revenue stream, and one of the thinnest margins in our industry.

Summary: The Special Legislative Commission studying the future of credit card payments and their impacts on small businesses held what leaders described as its last public hearing, though they said the commission would continue meeting to develop a report and recommendations. Chair Paul Feeney and other members noted the issue is complex and that they had sought testimony from a wide range of stakeholders before moving into a more deliberative phase. The commission adjourned after hearing from several in-person and virtual witnesses. Banking and card-industry witnesses, including the Massachusetts Bankers Association, the Card Coalition, the Electronic Payments Coalition, and others, argued that payment cards provide major benefits to consumers and merchants, including convenience, fraud protection, fast settlement, and broad access to electronic commerce. They warned that state-level changes to interchange rules could create a patchwork of conflicting requirements, disrupt global payment systems, and especially affect state-chartered community banks and small businesses. Several also said recent federal actions and litigation, including OCC and NCUA preemption rules and the Illinois interchange-fee litigation, have limited the practical reach of state laws. Restaurant, retail, and convenience-store witnesses pushed for relief from swipe fees, saying independent businesses operate on thin margins and pay fees on amounts that are not really their revenue, such as sales tax and gratuities. They urged transparency, the ability to surcharge, vendor compensation for tax collection, and limits on interchange or related fees. Some witnesses said merchants bear significant fraud and chargeback costs and that banks and card networks have not offered enough direct relief. Commissioners asked questions about surcharging, fee regulation, fraud, and whether industry should share more of the burden. No votes or formal actions were taken beyond adjourning the hearing.

Transcript Highlights:

• We will be providing you an update on our revenue forecast, as well as hearing from George Hammond.
• this first slide, which, if you could move the slide, under the April 4 sector, the general fund revenue
• And the dark blue bars are revenue, the white bars are spending.
• changed expenditure estimates, but the revenue bars are smaller, and the result is that...
• That's really when we'll start seeing some greater supply pressures on our revenue outlooks.

Summary: The Finance Advisory Committee received an update on the state revenue forecast and broader economic conditions. Staff said the April forecast was more cautious than January’s, citing greater uncertainty from the Iran conflict and other macroeconomic risks. Available general fund resources for the four-year period were revised down from $577 million in January to $378 million in April, with no change to expenditure estimates. George Hammond of the University of Arizona then presented on the national, state, and local economy, emphasizing risks from geopolitical conflict, tariffs, federal policy uncertainty, labor supply constraints, and elevated housing costs. He said Arizona job growth had been weak and driven mainly by health care, while inflation in Phoenix remained moderate but shelter and consumer commodity prices were still elevated. He also noted that population growth is increasingly dependent on net migration as natural increase slows. Panelists generally echoed the cautious outlook. Liz St. Clair said Arizona’s near-term revenue outlook still had some support from tourism and a strong spring season, but rising fuel costs and the duration of the Middle East conflict could pressure discretionary spending and revenues. Jim Rounds argued the economy was likely headed for a soft landing, though he warned that federal borrowing, inflation, workforce shortages, and energy reliability remain concerns; he also criticized leaving the Rainy Day Fund unused. Danny Court said the housing market remains under pressure on the ownership side, while rental supply and industrial demand have been relatively strong, and he noted sticky inflation and immigration declines as additional risks. Doug Walls explained that large employment benchmark revisions were affecting Arizona’s job numbers, and said the latest report showed slower but more balanced growth, though labor force declines and a higher unemployment rate were concerning. Lorenzo Romero added that business activity appears resilient in the low-hire, low-fire environment, but warned about debt burdens, uneven wage growth, and ongoing uncertainty. No votes or formal actions were taken.

Transcript Highlights:

• And the Legislature too often asks agencies to do things, and we don't give them the revenue that they
• And the Legislature too often asks agencies to do things, and we don't give them the revenue that they
• And that's where... ...pay attention to both what the fee is and what the revenue is, and whether that
• just wouldn't collect the revenue.
• The Governor's budget estimates budget-year 2025-26 auction revenues of approximately $4.2 billion.

Summary: The committee hearing focused heavily on CARB’s broad trailer bill request for regulatory fee authority. Finance and CARB argued the proposal would let CARB develop fees to recover reasonable costs for implementing and enforcing regulations, while the LAO recommended rejection because the authority was too broad, could apply to an entire division of code, and would delegate core legislative taxing/fee-setting power without enough guardrails. Members from both parties raised concerns about the breadth of the authority, accountability, affordability impacts, and whether the Legislature would be put in an up-or-down position after CARB had already developed regulations. CARB responded that fees would still go through a budget change proposal and legislative approval before collection, and cited existing examples such as transport refrigeration units and commercial harborcraft fees. The committee then reviewed CARB’s request for permanent resources to implement SB 905 on carbon capture, utilization, storage, and carbon dioxide removal. CARB said the Legislature had previously authorized limited-term positions and funding, but it had struggled to recruit and retain staff with specialized regulatory and technical expertise, and that the work had included pre-rulemaking contracts, technology review, and permit-related preparation. Members questioned the pace of work, the use of limited-term positions, and whether additional permitting authority would be needed. CARB said it hoped to begin rulemaking later in the year if permanent resources were approved. Members also discussed the cap-and-trade spending plan, noting lower-than-expected auction revenues but higher interest earnings, and the need to monitor the Greenhouse Gas Reduction Fund and possible May Revision changes. The committee then heard overviews of the zero-emission vehicle package, the Community Air Protection Program, demand-side grid support, and e-bike incentives. CARB described ongoing investments in community-based transportation equity, drayage trucks, harbor craft, and other clean technology demonstrations, while members pressed on affordability, program duplication, and whether enough funding was being directed to incentive programs. No formal votes were taken during the portion provided, and the chair repeatedly indicated that the hearing was intended to surface concerns for later budget negotiations.

Transcript Highlights:

• <00:20:08.160><c> sources</c><00:20:08.488><c> [clears throat]</c> revenue sources [clears throat] revenue
• Um, and so if it depends on kind of how you calculate that, Senator Wakai was absolutely right.
• </c> &gt;&gt; do you have any estimates of the revenue &gt;&gt; do you have any estimates of the revenue
• Three, revenues generated designation.
• </c> look for any sources of, uh, revenue. look for any sources of, uh, revenue.

Committee: Senate Economic Development and Tourism

Summary: The committee first heard SB 2627, which would exempt Hawaii Tourism Authority contracts and agreements for sports projects, events, and related marketing from the state procurement code and other competitive bidding requirements. HTA, DBEDT, and the State Procurement Office testified in support or with comments, while one individual offered general support for sports tourism. Senators focused on narrowing the bill so the exemption would apply more specifically to sports-related projects and marketing, rather than broad marketing activities, and discussed whether the bill should require notice to the State Procurement Office or approval by the chief procurement officer. Procurement officials said a reporting requirement would be the most expeditious option, while still allowing post-event monitoring and public posting of exemptions. Members also discussed whether the exemption should be limited to situations involving sole-source sports entities, such as major leagues or international sports organizations, to better justify bypassing procurement rules. The committee did not take a final vote in the portion provided, but members and testifiers agreed to continue working on the language. The hearing then moved to SB 2074 relating to state facilities and naming rights for the Aloha Stadium and Hawaii Convention Center. The Stadium Authority, HTA, and DBEDT testified in support, while the Outdoor Circle and other organizations opposed the measure. Opponents argued the bill could create fiscal and legal risk, echoing concerns raised in prior legislation and by the attorney general, and warned it would mark a major shift by treating public facilities as commercial branding opportunities. Supporters said naming rights could generate significant revenue to help fund the stadium project and reduce the burden on the state and developers. Senators questioned how signage would be handled, especially whether it would be exterior-facing or limited to inward-facing signage, and the Stadium Authority said it was willing to work with the Outdoor Circle on language that would preserve community aesthetics while allowing revenue generation. A senator cited a prior study estimating naming rights could bring in about $1.5 million per year over 20 years, and asked what that revenue would buy for the public; the Stadium Authority responded that it would help advance the project toward a larger, improved stadium. No final action was taken in the excerpt provided.

Transcript Highlights:

• </c> this revenue line into the general fund. this revenue line into the general fund.
• So my one follow-up question was also: your revenue-based question was also, on your revenue numbers,
• I mean, the in is how much money we expect to bring into revenue.
• Um so we next week for revenue reviews.
• </c><01:41:50.000><c> stream</c> Um, it has a $17 million revenue stream Um, it has a $17 million revenue

Committee: Senate Ways and Means

Transcript Highlights:

• </c> any allocation of state revenues any allocation of state revenues directly<01:52:14.000><c> shared
• </c> including but not limited to revenue including but not limited to revenue from<01:52:25.920><c>
• Steps taken to recruit, calculation.
• </c><03:18:36.960><c> collected</c> Avalor taxes and revenues collected Avalor taxes and revenues collected
• </c><04:01:50.800><c> Five</c> revenues of a taxing authority. Five revenues of a taxing authority.

Summary: The meeting included a Senate recognition ceremony honoring the Winona High School boys basketball team for winning the 2026 Alabama High School Athletic Association 5A state championship. A resolution was read commending the team for its 101-40 victory over Silicag, noting the team’s record-setting performance, Brendan Davis’s MVP honor, the contributions of other players, and Coach Cedric Lane’s leadership. Senators and the lieutenant governor praised the players’ sportsmanship, the school community, and the team’s historic season, and copies of the resolution were presented to the team, coaches, and administrators. Several guests and school representatives also spoke briefly, including the coach and principal, who thanked the Senate and noted the team’s success and the principal’s retirement after 35 years. After the recognition, the Senate returned to session and adopted the Committee on Rules report setting the special order calendar. The calendar included Senate Bill 99 on the Ten Commandments, Senate Bill 298 on Class 3 municipalities, House Bill 381 on camp safety, Senate Bill 370 on tax increment districts, Senate Bill 363 on the Department of Economic and Community Affairs, House Bill 466 on firefighters, House Bill 95 on elections, House Bill 259 on stablecoin, and Senate Bill 342 on education. The chamber then took up SB 99, sponsored by Senators Kelly and Sessions. Senator Kelly described the bill as requiring local school boards to display the Ten Commandments, together with founding documents such as the Declaration of Independence, Constitution, Bill of Rights, and Alabama Constitution preamble, in certain history classrooms and common areas for grades five through 12, using donated displays and funds when available. He said the bill was intended as a historical and educational measure, not religious instruction, and emphasized the inclusion of a disclaimer stating Alabama is not establishing a religion. After extended debate and a petition to close debate from the Rules Committee, the Senate voted on the bill by long roll and passed SB 99, with the recorded vote announced as 30 yeas and 4 nays.