Transcript Highlights:

• for the entity or in the general fund, whether it be with the state, the county, or municipality.
• or the general fund if the property is over 13th."
• or operating funding.
• I don't think that would be such a challenge. Senator Hogan. Thank you.
• It's this circular pattern, and it's just a challenge.

Committee: Joint Legislative Task Force on Government Efficiency

Summary: The task force first approved the March 25, 2026 minutes as amended, including a correction removing language that suggested the auditor’s office would contract with a security vendor. Members then moved to a bill draft on concessions (LC 27.0161.00000), which would raise the competitive solicitation threshold from $25,000 to $50,000, allow requests for proposals in addition to bids, clarify that proceeds go to the entity’s operating fund or general fund, and make other technical updates. OMB explained the draft and answered questions about scope, fragmentation, vendor restrictions, school districts, and whether concession proceeds could be directed to nonprofits; OMB said the draft could be refined further, including clarifying covered entities and contract length. No vote was taken on the draft during the discussion. OMB also reported on other survey items. It said a proposal to broadly allow agencies to create pre-qualified architect/engineering/land surveying vendor pools would not move forward, because the existing authority is working well for the agencies that already have it. On legal notices, OMB said it has been working with the North Dakota Newspaper Association on modernization, including an ADA-compliant online notice system and possible statutory updates to reflect changing technology and notice definitions. On click-through agreements for routine IT purchases, OMB and the Attorney General’s office said policy clarification—not statutory change—was enough, and the $20,000 threshold was intended to distinguish low-dollar adhesive contracts from purchases where terms can be negotiated. The committee also heard that OMB and the Center for Distance Education had resolved questions about alternate procurements and food/beverage expenditures through existing policy, so no statutory changes were needed there. North Dakota University System representatives gave a brief update on ongoing collaboration with OMB on statutory efficiency ideas, including concessions and surplus property. Finally, the task force discussed a draft on requirements for new or expanded spending programs, which would require agencies to identify purpose, expected benefits, alternatives, success measures, and full implementation costs, and would require reporting on outcomes over time. Members debated whether OMB or Legislative Council should collect and report the information, how to use the new program evaluators, whether real-time dashboards should be used, and how to choose which programs to evaluate; staff from Legislative Council said they would work with OMB and the auditor’s office to revise the draft and process.

Transcript Highlights:

• /c><00:12:10.440><c> 2</c> that has a trust fund a trust fund of 2 that has a trust fund a trust fund
• This is with funds already appropriated.
• This is with funds already appropriated.
• </c><03:19:18.920><c> as</c> research and technological challenges as research and technological challenges
• </c><03:32:01.080><c> scientific</c> some of our most challenging scientific some of our most challenging

Transcript Highlights:

• They'll have the funding, right?
• Our funding mechanism isn't, you know, we're not getting the funding that we need.
• Funding mechanism isn't, you know, we're not getting the funding that we need, we don't have enough clinical
• prioritizing funding our institutions.
• prioritizing funding our institutions.

Committee: Senate Education

Transcript Highlights:

• I don't want to jeopardize that funding.
• funds.
• It was a $25 million investment out of a workers' comp fund.
• Do you need more funding to get farther ahead of it?
• What those challenges and needs are.

Committee: House Subcommittee on Appropriations - General Administration

Summary: The subcommittee held an informational hearing on the Information Technology Services Division (ITSD) within the Office of Administration, with no quorum present and no formal action taken. Chair Voss said the purpose was to review ITSD’s programs, budget needs, and future plans, and members emphasized the value of an informed appropriator. Representative Riggs cautioned that the state should avoid jeopardizing federal broadband funding and asked that AI-related work remain consistent with federal expectations. ITSD leadership, including CIO John Loren and Deputy CIO Tara Damp, outlined the division’s scope and recent modernization efforts. They said ITSD supports 15 executive agencies plus the governor and lieutenant governor, manages about 1,200 production software solutions, handles roughly 35,000 help desk requests per month, and defends against billions of cyberattacks monthly. They highlighted investments in layered security, data center and network redundancy, a unified Microsoft 365 environment, modern development tools, and portal platforms. Damp reviewed the history of IT consolidation, noting budget reductions after 2007, then increased investment beginning in 2020 and especially with ARPA funds in fiscal 2023. Members asked about spending projections, subscription-based licensing, procurement modernization, and the role of non-consolidated agencies such as MoDOT and Conservation. The committee also discussed future funding needs and benchmarking. ITSD said its current spending is about $287 million, with a projected ongoing need of about $345 million to maintain and modernize services, while Gartner comparisons suggested Missouri spends less per employee and as a share of operating budget than peer states. Members asked for more detailed fiscal-year spending profiles for major initiatives and for clarification on what is and is not included in the projections, including Social Services and HR1-related work. ITSD said it would provide additional detail. A major portion of the hearing focused on AI strategy and governance. Tim Marsheski, ITSD’s director of AI and innovation, described a cautious, pilot-based approach centered on secure use, human oversight, and data governance. He cited examples such as an internal HR chatbot that reduced average response time from about 45 minutes to two minutes, pilots with DESE data transformation, and efforts to use AI for code assistance, document scanning, and workflow support. Members asked about workforce impacts, training, closed versus open models, and whether AI could help with auditing and fiscal analysis. ITSD said it is still early on workforce forecasting, but it is building governance, acceptable-use policies, and feedback loops to test tools, measure results, and scale only when they provide value and remain secure.

Transcript Highlights:

• </c> to talk about the incredible challenges to talk about the incredible challenges they<00:01:54.320
• </c><00:02:23.200><c> we</c> in addition to the one-time funds we in addition to the one-time funds we
• </c> assess underlying Financial challenges assess underlying Financial challenges to<00:03:31.200><c
• </c> programs and the availability of funding programs and the availability of funding as<00:04:12.000
• Adequate service funding to be paired with capital funding for PSH units to help ensure full funding

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• We had legislative direction and funding to support the process.
• IT infrastructure is also a challenge.
• I also want to talk about the challenges.
• So that's a challenge. We need more space there. And then overpopulation.
• So it's not just on a specific state department to fund it, but it could be supplementary funded through

Summary: The Senate Human Services Committee held a work session on juvenile rehabilitation trends and then a hearing on Senate Bill 6062. The work session featured a national overview from NCSL, DCYF updates on Green Hill, Harbor Heights, and community transition services, and local/community perspectives from Pierce County, Team Child, and Northwest Credible Messengers. The national presentation described broad juvenile justice trends, including limits on extreme sentencing, expanded diversion and due process protections, reduced fines and fees, record clearing, and changes in juvenile court jurisdiction. Committee members asked about juvenile crime trends and overcrowding, and the presenter noted that crime has generally decreased overall since 2020, though some offenses have risen in some places and overcrowding remains an issue in certain states. DCYF reported on its behavior management system, Harbor Heights opening as relief for overcrowding, Green Hill population pressures, and expansion of community transition services. Officials said the behavior management system is intended to improve safety, consistency, and restorative accountability, while Harbor Heights has added programming and family engagement but still faces space, IT, and medical-infrastructure challenges. Green Hill leaders said reduced population has improved stability, programming, and use-of-force outcomes, but overcrowding remains a concern. DCYF also highlighted an ombuds process, family listserv updates, staffing changes, and a proposed budget request for additional JR capacity and staffing. Pierce County described its long-running detention reform work, reduced average daily detention population, and plans for a new juvenile justice center, while Team Child and Northwest Credible Messengers emphasized community-based supports, culturally responsive services, healing-centered engagement, and reentry planning. Senate Bill 6062 was then briefed as a measure revising juvenile sentencing and JR placement rules. The bill would require courts to grant suspended disposition alternatives in eligible cases unless the court finds community supervision would not adequately protect the community, expand eligibility for certain sentencing alternatives, require midpoint review hearings, and set rules for transfers from JR to DOC when facilities exceed 105% of rated bed capacity. The committee also voted to waive the five-day notice rule for hearings on Senate Bills 6319 and 5979, and that motion passed. During public testimony on SB 6062, youth from Green Hill supported the bill and asked for clearer standards around DOC transfers, while DCYF supported efforts to reduce JR population but said the bill needs stronger emergency transfer language to address overcrowding at Green Hill. Committee members and the bill sponsor emphasized rehabilitation, individualized sentencing, and the need to balance community safety with better placement and services for youth.

Transcript Highlights:

• Given the success of that funding policy and the strong investment returns, the funding for these programs
• fund allocations or local government funding.
• So, and this is a completely Self-funded program. There's no general fund subsidy.
• fund.
• Funding Council.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on October 8 with introductions from council members and staff, then received a detailed presentation from the Office of the State Actuary on long-term economic assumptions and the state pension systems’ financial condition. OSA reported that the combined pension systems are currently 100% funded on a smoothed basis, with open plans above 95% funded, and that legacy Plan 1 systems remain on a path toward full funding under current policy. The actuaries recommended updating assumptions to 3% inflation, 3.5% general salary growth, and a 7.25% investment return, while keeping Plan 1 membership growth at 1%. They also explained asset smoothing, the role of recent strong investment returns, and the expected budget impacts of the recommended changes. Representatives from the Economic and Revenue Forecast Council and the State Investment Board offered supporting perspectives, generally describing the assumptions as reasonable and consistent with their own outlooks. The council also heard an overview of the Long-Term Services and Supports Trust Program (WACares) from DSHS and OSA. Program staff described the program’s social insurance structure, premium collection, benefit eligibility, and upcoming implementation milestones. OSA reported that the program’s first actuarial valuation showed a positive actuarial balance under the base scenario and recommended no change to the current 0.58% premium rate during the program’s early learning phase, noting that future changes would depend on experience and the program’s risk-management framework. OSA also said the recommendation would remain the same regardless of the outcome of the pending ballot measure affecting investment options. During public comment, a representative of the Washington State School Retirees Association urged continued work on Plan 1 funding and related legislation, while the Association of Washington Cities cautioned against increasing pension assumptions in a way that could raise future employer costs and reduce flexibility for current local government services. In action, the council adopted a motion to maintain the current long-term economic assumptions by a 4-2 vote, adopted the recommendation to keep the WACares premium rate at 0.58% by a 6-0 vote, and then elected Katie Chapman as council chair by unanimous vote. The meeting then adjourned.

Transcript Highlights:

• </c> when those funding dates um run out. when those funding dates um run out.
• </c><00:37:25.200><c> Um</c> special fund. Um special fund.
• Special fund requests.
• </c> um a need to support funding. um a need to support funding.
• </c> self-funded charging stations? self-funded charging stations?

Transcript Highlights:

• And we ought to be able to fund activities that do that.
• They're not receiving the funding.
• Nothing in this bill challenges what someone like...
• How do we make sure they have funding when you have districts that already have challenges with finances
• be much more of a funding priority in school districts.

Committee: House Education & Employment Committee

Summary: The committee first took up CS for CS for HB 1471, which would bar Florida courts from enforcing foreign or religious law that conflicts with the U.S. or Florida Constitution, create a process for designating domestic terrorist organizations, and prohibit public funds from supporting such organizations. The sponsor said the bill protects constitutional supremacy, due process, and taxpayer dollars, while opponents argued it was vague, targeted religion, and could be used to suppress dissent and protected speech. Members debated whether a conviction was required, who would make designations, and what consequences would follow; an amendment changing student expulsion language from “may” to “shall” was adopted. After extensive public testimony both for and against, the bill passed 16-4 and was reported favorably with amendment. The committee then heard CS for CS for HB 1071, an education bill covering parental opt-outs for certain health instruction, required instruction on embryology, fetal development, and HIV/AIDS, math plan requirements, student-led organizations, epinephrine access, instructional material review, safe-school officer options, and chronic absenteeism reporting. The sponsor framed it as a parental rights, academics, accountability, and safety measure, while opponents said parts of the bill would restrict sex education, chill student organizations, and undermine DEI-related activities and LGBTQ student groups. Several amendments were offered by the ranking member to remove or soften the provisions restricting funding for DEI and social/political activism, but those amendments failed. The committee adopted a Trabulsy amendment requiring districts to publicize virtual instruction options, and another amendment clarifying reading-coach language and safe-school officer options, as well as an amendment giving publishers an appeals process if removed for noncompliant materials. A final Trabulsy amendment requiring annual reporting of chronic absenteeism by grade level was also adopted. Public testimony on the bill remained sharply divided, with supporters emphasizing embryology, parental rights, and school safety, and opponents warning about censorship, reduced reproductive health education, and harm to student expression. The transcript ends during continued public testimony on HB 1071, before final committee action on the bill is shown.

Transcript Highlights:

• So, and that's the challenge.
• Our funding comes primarily from federal funding, state funding, and industry funding, or some collaboration
• Our funding comes primarily from federal funding, state funding, and industry funding, or some collaboration
• And with that designation comes some funding and a mission.
• So 10% of our funding every biennium is at the discretion of NDIC.

Summary: The committee met in Grand Forks, approved the February 26 minutes by voice vote, and recessed for a tour of Minnkota Power Cooperative before hearing presentations on large energy consumers and related infrastructure issues. The first presentation, from the North Dakota Transmission Authority, focused on the need for better local decision-making tools for counties, townships, and planning and zoning boards facing major projects such as transmission lines, pipelines, data centers, wind, solar, and large-scale agriculture. The speaker urged more objective, data-driven analysis, noted that local officials often have limited time and resources, and said the state should support training and tools through groups like the League of Cities and the Association of Counties. Members asked about proactive outreach, data center ordinances, and how to avoid subsidizing large loads or causing reliability problems. The Division of Air Quality then discussed environmental oversight of data centers, emphasizing that North Dakota’s air remains among the cleanest in the country and that the agency’s role is limited to air, water discharge, stormwater, and waste—not zoning or water use. The presentation explained that data centers generally have low direct emissions but may rely on diesel backup generators when the grid is unavailable, which creates air-quality concerns; the department said it is requiring air monitors at some projects to collect real-world data and guide future decisions. Members asked about generator emissions, misinformation, monitoring costs, and staffing succession, and the agency said permit applicants pay for the monitors while the state handles some QA work. The Department of Water Resources followed with an overview of North Dakota water law and data center water use. The director explained the state’s prior-appropriation system, the public-interest review for permits, and the large overall water supply available from groundwater and the Missouri River. He said most proposed data centers use closed-loop cooling systems and generally request relatively small amounts of water compared with other uses such as power plants, irrigation, and oilfield operations, and that even a worst-case data center scenario would use only a tiny fraction of Missouri River flow. Questions focused on downstream impacts and comparisons to fracking water use, and the director said the state’s use is too small to materially affect downstream users. Later, McLean County State’s Attorney Ladd-Erickson testified online about data center zoning and permitting. He asked the committee to have Legislative Council gather information on how other states handle data center permitting and to keep the topic on the interim agenda. He argued that local zoning should remain local, but said counties lack the technical and legal resources to manage complex reclamation or bonding requirements and that state-level enabling legislation may be more appropriate. He also recommended eliminating tax incentives for data centers. The committee chair said staff would prepare a document on other states’ zoning and permitting approaches. After a lunch recess, the committee reconvened at the EERC, where CEO Charles Gorecki gave an overview of the center’s 75 years of work and its role in oil and gas, carbon management, and other energy technologies, highlighting enhanced oil recovery and carbon dioxide utilization as major opportunities for future production and tax revenue.

Transcript Highlights:

• </c> government funds affordable housing. government funds affordable housing.
• </c> fund about 30% of the project costs. fund about 30% of the project costs.
• , and the Family Housing Fund.
• Minnesota Housing Fund, and the Family<00:09:42.399><c> Housing</c><00:09:42.800><c> Fund.
• </c> Family Housing Fund. Thank you. Family Housing Fund. Thank you.

Bills: HF4234 , HF484 , HF483 , HF2614

Committee: House Housing Finance and Policy

Transcript Highlights:

• For grow fund money this year, once again, because we did lose out on 21st century funding.
• funding.
• After this funding because it is so heavily regulated, and they nitpick every aspect of this funding
• This may be related to federal funding guidelines through grants like the Perkins funds, but it might
• In addition to the state general funds, they also apply for Title VI funding.

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• in any of these funds.
• It's on what goes into the fund during the biennium, and it will raise for the general fund.
• General Fund.
• out of General Funds, not out of the Education Trust Fund.
• <00:15:25.160><c> the</c><00:15:25.680><c> adequacy</c> fund was only to fund the adequacy fund was only

Summary: The House Finance Division II work session considered several amendments to HB 2. The first two items were rejected: a proposal to add a new “Lakes” license plate with proceeds to the cyanobacteria fund failed 7-8, and Amendment 1040, which would have imposed a 5% administrative fee on certain dedicated funds to raise general fund revenue, failed 4-5. Representative Maguire explained the fee would apply only to new revenue going forward and would not change existing fund balances; he also described exemptions for federal funds, bequests, and other special cases. Representative Murray questioned the consistency of the approach and who currently pays administrative costs, while Maguire said the charges are often handled case-by-case by agencies or the treasurer. The committee then revisited revenue distribution changes in HB 2. Members first reconsidered and reversed prior acceptance of sections affecting the Education Trust Fund, then adopted Amendment 1381H, which changes the distribution of business profits tax and business enterprise tax revenue, along with related sections, to shift more money to the General Fund. Supporters argued the change was needed to address revenue shortfalls and to align with historical distributions; opponents said it reduced support for education. The reconsideration motion passed 7-3, and the amendment itself passed 5-3. The committee also adopted Amendment 1413H, incorporating the language of HB 741 on open enrollment and student attendance in public schools. Supporters said it was House policy and had sufficient policy and fiscal impact to belong in HB 2; opponents noted the underlying bill had been controversial and passed the House by a relatively close margin. Finally, the committee considered a USNH budget reduction proposal that would cut the University System of New Hampshire by $25 million per year net. Supporters said the cut was necessary to balance the budget and that K-12 obligations had to take priority, while opponents argued the cut would harm workforce development, the state economy, and student retention. The transcript cuts off during extended debate, and no final vote on the USNH item is shown in the provided text.

Transcript Highlights:

• Concerns about the challenges that exist with TEAM as of now.
• So without a new funding stream, to have new requirements just doesn’t really make sense.
• But now we’re concerned about the loss or pause of federal funding.
• But now we're concerned about the loss or pause of federal funding.
• And look, I think we're all in agreement at this table about the enormity of the challenges.

Bills: HB45 , SB1540 , SB2225 , SB2284 , SB2382 , SB2487 , SB2514 , SB2595 , SB2876 , SB2877 , SB3031 , SB2753

Committee: Senate State Affairs

Summary: The committee first adopted a committee substitute for Senate Bill 30 and then voted to report the substituted bill favorably to the full Senate; the roll call showed six ayes and one nay, with later unanimous-consent corrections noted for additional aye votes. The committee also reported Senate Bill 801 favorably to the full Senate by an eight-to-one vote. Both bills were left with no further action in the meeting after the votes. The committee then heard Senate Bill 2595 by Senator Middleton and Senate Bill 2876 by Chairman Hughes, both aimed at addressing masked harassment and riot-related conduct. Supporters said the bills would deter intimidation, protect public order, and respond to recent protests and anti-Semitic incidents, while opponents from civil rights, disability, and advocacy groups argued the measures were overly broad, could chill peaceful protest, and would burden people who wear masks for religious, medical, or disability-related reasons. Public testimony was taken on both bills, and both were left pending after testimony closed. Senate Bill 2753, by Senator Hall, proposed consolidating early voting and election day into a single continuous in-person voting period with common procedures and equipment, while preserving countywide voting and mail voting. The Secretary of State’s office said the bill could improve ballot secrecy and simplify administration, though witnesses raised concerns about ballot privacy, logistics, and access for disabled voters; some county election officials were neutral or supportive of the concept, while others opposed it as confusing or potentially burdensome. The bill was left pending after extensive testimony. The committee also heard Senate Bill 2225 on allowing spirit-based ready-to-drink beverages to be sold in grocery and convenience stores, with supporters arguing the law should focus on alcohol content rather than the source of the alcohol and that the bill would modernize an outdated code. Later, Senate Bill 1540, which would add election officials and related workers to confidentiality protections, drew support from county election officials who described threats and harassment, though one witness suggested the bill’s language may need technical adjustment to better match its intent. Finally, Senate Bill 2382, concerning statewide voter registration systems and offline counties, drew opposition from county election administrators and vendors who warned about capacity, cybersecurity, and single-point-of-failure risks, while others suggested a phased approach or API-based integration; the transcript ends with testimony still open on that bill.

Transcript Highlights:

• . fund. fund.
• </c><00:09:08.960><c> So</c><00:09:09.160><c> if</c> the fund? So if the fund?
• It's legacy funding.
• It's legacy funding.
• I mean, if the fund fund fund if<00:20:14.200><c> we</c><00:20:14.320><c> needed</c><00:20:14.560><c>

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

Transcript Highlights:

• They requested additional funds from the CCOC to fund new FTEs, and they reassigned resources. would
• They requested additional funds from the CCOC and to fund new FTEs, and they reassigned resources. ..
• Most, if not all, of them rely on other funding sources, multiple sources of funding.
• Not all of them rely on other funding sources, multiple sources of funding, to operate.
• Some of those include county and city government, local trust funds, court fees and fines, funding that's

Committee: Senate Judiciary

Summary: The Judiciary Committee met with a quorum present and heard several Office of the State Courts Administrator presentations. Judge Mark Mahan discussed the impact of 2023’s HB 837 litigation reforms on court operations, explaining that the law’s changes to comparative negligence, filing deadlines, collateral source evidence, premises liability, bad faith claims, attorney’s fees, and offer-of-judgment rules triggered a major March 2023 civil filing surge. He described how filings tripled statewide, with especially large increases in auto negligence and premises liability cases, and outlined how circuits responded through active case management, added resources, and workflow changes. Members asked whether the bill’s immediate effective date contributed to the surge and whether clearance rates would normalize over time; Judge Mahan said the court system viewed its response as a success and expected rates to settle as the backlog is worked through. The committee then received a presentation on problem-solving courts from Jennifer Grandal and Judge Nina Richardson. Grandal reviewed Florida’s drug courts, mental health courts, veterans courts, dependency and early childhood courts, noting statewide best-practice standards, annual reporting requirements, funding sources, and data collection systems. Judge Richardson gave a local perspective on treatment courts, emphasizing that they address underlying mental health and substance use issues, rely on judicial supervision and sanctions as well as incentives, and help participants achieve recovery and avoid reoffending. She said the programs are accountable, transparent, and effective, and thanked the Legislature for continued support. Finally, Judge Rachel Nordby and Eric McClure outlined the judicial branch’s legislative agenda. Nordby summarized the Supreme Court workgroup’s recommendations to expand Florida’s vexatious litigant law, including broader coverage, fewer qualifying adverse cases, a longer lookback period, and a public records exemption for stricken defamatory or sham material. McClure then highlighted additional agenda items: modernizing the duty-judge statute, expanding senior management retirement eligibility, authorizing additional judgeships based on workload studies, removing the statutory cap on court-ordered nonbinding arbitration compensation, protecting appellate clerks’ personal information, allowing alternative authentication for certain judicial notarizations, and creating a hearsay exception for guardian ad litem reports and testimony. No votes were taken, and the committee adjourned after member introductions and staff introductions.

Transcript Highlights:

• funding.
• Institute wasn't funded. What else was not funded? I don't know if they'll be in specials.
• So the SEG is based on prior year funding.
• This is very challenging for me. This is very challenging because, Mr.
• So then does the funds—do they—is it retroactive to that?

Transcript Highlights:

• So there would be challenges there.
• general fund.
• Fund backfill.
• Fund backfill.
• to backfill for the Tier 3 funds.

Summary: The subcommittee heard extensive testimony on the governor’s proposed sustainable aviation fuel (SAF) tax credit, which would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold for use in California from 2026 to 2036. The Department of Finance and CARB argued the proposal would help decarbonize aviation, support a long-term transition in the fuel sector, and encourage in-state investment and jobs. The Legislative Analyst’s Office and several outside witnesses recommended rejecting the proposal, saying it is a relatively expensive way to reduce greenhouse gases, could have uncertain or limited net climate benefits, and may shift limited feedstocks away from renewable diesel rather than create additional fuel supply. A major point of debate was whether the credit would mainly benefit California refineries and workers or instead subsidize out-of-state producers while reducing revenue for transportation programs. Supporters, including union members, refinery workers, airlines, Boeing, and airport representatives, said SAF is one of the few viable near-term options for aviation, that California should keep fuel production and jobs in-state, and that the credit would help maintain refinery operations and support the industry’s transition. Opponents, including the LAO, trucking and fuels groups, environmental organizations, and county/road advocates, warned that the proposal could raise gasoline and diesel prices, reduce diesel excise tax revenue for highways and local streets and roads, and provide limited climate benefit compared with other uses of state funds. Some members also raised concerns about feedstock availability, food-system impacts, and whether the policy should be more narrowly targeted if the goal is to support a specific refinery. No vote was taken. The chair stated at the outset that all items on the agenda were being held open for a future hearing, and public comment was taken after the first item because of the level of interest. The hearing then continued with public testimony, which was split between strong support from labor and industry and strong opposition from environmental, transportation, and local government groups.

Transcript Highlights:

• The Department of Commerce is required to distribute funds in equal proportions to the five different
• categories identified for the Community Reinvestment Account, and the fund distribution is required
• that identify why funding should be continued beyond the five-year period.
• It prohibits a homebuyer who receives funding under the Community Reinvestment Program from receiving
• Funds were used to enrich relatives and those in close circles of the distributing agents.

Summary: The committee met to take executive action on House Bill 2523, concerning the Community Reinvestment Program, and House Bill 2606, concerning the Office of Privacy and Data Protection. Staff briefed a proposed substitute for HB 2523 and several amendments. The substitute would change how Community Reinvestment Account funds are distributed, require tribal consultation, update the community reinvestment plan on a regular cycle, expand reporting and Office of Equity responsibilities, add definitions, and broaden the WSIPP study. Amendments to shorten the plan update cycle, restrict recipients from receiving other state housing assistance, bar certain officers and family members from grants, require independent audits, and expand WSIPP review were debated; only the amendment changing the plan update cycle from 10 years to 5 years was adopted. The committee then voted 8-5 to report the substitute HB 2523 out of committee with a do pass recommendation. HB 2606, which was described as implementing JLARC recommendations to reduce redundancy and improve efficiency in privacy/data protection functions, was then approved unanimously and reported out with a do pass recommendation. The committee then held public hearings on House Bill 2684 and House Joint Memorial 4012. HB 2684 would establish rebuttable presumptions that members of certain groups are socially disadvantaged for purposes of OMWBE certification, including adding Middle Eastern and North African individuals to the framework. Testimony was split: some speakers opposed the bill as discriminatory or constitutionally problematic, while others, including representatives of MENA businesses, CAIR Washington, and OMWBE, supported it as a needed fix to improve access to certification and contracting opportunities. The chair noted that amendments could still be submitted before the next day’s executive session, and the bill was set for further consideration the following morning. House Joint Memorial 4012 urges Congress to bring the Major Richard Star Act to a floor vote. The prime sponsor and veteran advocates testified that the memorial seeks to address the “wounded veteran tax” by allowing combat-injured service members who retire before 20 years of service to receive both retirement pay and VA disability compensation. Supporters said the change would correct an inequity affecting Washington veterans and their families. The committee closed the hearing on the memorial and announced that both HB 2684 and HJM 4012 would be considered the next morning.

Transcript Highlights:

• We certainly do not take this challenge lightly.
• We certainly do not take this challenge lightly.
• Instead, the remediation fund is funds that basically say the company is not reducing the emissions themselves
• , but instead are providing funds to the local air districts.
• Correct, which is the purpose of the remediation fund.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy, Transportation, and Natural Resources focused on California’s transportation fuels sector, especially the state’s response to refinery closures and the broader transition away from fossil fuels. Opening remarks emphasized the tension between climate and air-quality goals, fuel affordability, refinery jobs and local tax bases, and the need to avoid crisis-driven responses as Phillips 66 and Valero consider shutting refineries in Wilmington and Benicia. Professor Emily Grubert framed the issue as a long-term managed transition in which the public already bears much of the risk and should also capture benefits from a well-planned shift. CARB Chair Leanne Randolph reviewed the state’s emissions and fuel policies, including AB 32, the low-carbon fuel standard, clean vehicle programs, and the at-berth regulation for ocean-going vessels. She said California’s transportation sector remains the largest source of greenhouse gases and a major source of smog-forming pollution, but that the state has made substantial progress and still needs to reduce demand for fossil fuels while maintaining compliance with federal air-quality standards. Randolph also said CARB’s recent LCFS amendments had not caused the predicted spike in gas prices and explained that compliance pathways for the at-berth rule include emissions-reduction technologies or payments into a remediation fund. CEC Vice Chair Gunda described declining gasoline demand, shrinking in-state refining capacity, and growing dependence on imports, arguing that the state is in a “mid-transition” period that requires both support for legacy infrastructure and continued investment in cleaner alternatives. He outlined the administration’s petroleum market stabilization proposal, which aims to return California crude production to 125 million barrels a year through four components: codifying the ban on fracking, validating the Kern County oil-and-gas permitting ordinance, creating a temporary CEQA exemption paired with a two-for-one plug-and-drill framework, and strengthening pipeline and spill-safety requirements. Department of Conservation Director Jennifer Lucasey said the proposal is intended to stabilize crude supply and pipeline throughput while preserving health and environmental protections, and noted that CalGEM would still review permits and enforce other requirements. Mayor Steve Young of Benicia testified that a Valero closure would significantly reduce city revenue and leave the community facing years of cleanup and redevelopment challenges. He said the city supports environmental protection but is worried about the economic hit, the possibility that Benicia becomes a fuel-import terminal, and the lack of local influence over refinery decisions. Members pressed the panel on the CEQA exemption, tribal and habitat review, disclosure of closure liabilities, fuel-demand projections, and whether the proposal should include more demand-side measures. No formal votes were taken; the hearing was informational, and officials said some proposals, including a margin-cap pause and further transition planning, would be taken up later in the process.