Transcript Highlights:

• We're hearing from our retail members that the cost of updating point-of-sale systems, in addition to
• Products that are subject to the delivery fee do not align with established sales tax categories, so
• now a retailer point-of-sale system must include separate classifications to account for taxable versus
• Um, and to the testifiers, don't you already track sales taxable items?
• </c><00:58:50.280><c> taxable</c> already track sales taxable already track sales taxable items<00:58

Bills: HF5

Committee: House Transportation Finance and Policy

Transcript Highlights:

• Senate File 79, sponsored by revenue, sales and use tax reorganization, an act relating to sales and
• Speaker, your Committee Number Three, Revenue, to whom was referred Senate File 79, sales and use tax
• Senate File 79, sponsored by revenue, sales and use tax reorganization, an act relating to sales and
• Senate File 79, sponsored by revenue, sales and use tax reorganization, an act relating to sales and
• </c> relating to sales and use tax. Mr. relating to sales and use tax. Mr.

Transcript Highlights:

• Um, we also had people who want to end sales tax on electricity.
• And several of the people who presented ideas noted that with both sales tax on electricity plus the
• </c><00:18:20.240><c> tax</c> you know noted that with both sales tax you know noted that with both sales
• So I think in 2026, if we could clarify the sales, the excise, the use, and the collection of it, that
• So I think in 2026, if we could clarify the sales, the excise, the use, and the collection of it, that

Summary: The working group approved the prior meeting minutes with one correction to reflect Laura Ziggler’s attendance. Staff then outlined the report due February 13, 2026, which must summarize the group’s activities and include findings and recommendations adopted by the group; the report will go to the governor and legislative transportation leaders. The chair emphasized that the group’s charge is broad and includes analyzing electricity used as vehicle fuel infrastructure opportunities and barriers, developing policy and funding recommendations for sustainable transportation funding, and reviewing other states’ laws and policies. Discussion focused heavily on how to replace declining gas tax revenue as more vehicles become electric. The chair framed the issue as a fairness and implementation challenge, noting that EVs are a growing share of the fleet and that the group should consider both policy and funding, not just one or the other. Members and guests raised several ideas already submitted, including a road user charge, changes to the EV charging tax, ending or modifying the EV surcharge, broadening the tax to publicly owned charging stations, reducing the charging level threshold to level 2, ending sales tax on electricity, addressing off-road use, and expanding the definition of auto parts to include charging equipment. Representative Elkins argued that charging based on electricity used at home is impractical for most vehicles, that public charging is already much more expensive than home charging, and that the current sales tax plus surcharge amounts to double taxation for public-charging users. He said a mileage-based user charge modeled on Utah’s approach is workable, could be phased in, and could preserve privacy by allowing a voluntary or alternative method for home charging estimates. Senator Howe responded that home electricity use can be estimated similarly to mileage deductions on taxes and said the state should tax all electricity used as fuel, regardless of charger level, if it can be identified. Other speakers echoed that all road users should pay a fair share and that the main challenge is implementation. Tony Kis of Quick Trip asked that a late letter be included in the record and urged clarification of the sales, use, excise tax, and collection rules to avoid double taxation and reduce administrative burden, noting the current monthly collection date and suggesting the group should streamline collection methods. No final policy decisions or votes were taken beyond approval of the minutes.

Transcript Highlights:

• The median sales price for family housing increased by 47% since 2020.
• The median sales price for family housing increased by 47% since 2020.
• The median sales price for family housing increased by 47% since 2020.
• Whatever the sales go up, anytime our sales go up because of our jackpot price going up 7%, it goes to
• </c><00:52:13.079><c> go</c><00:52:13.319><c> up</c> sales go up anytime our sales go up sales go up

Committee: Senate Ways and Means

Transcript Highlights:

• sales tax, but they include items like candy and soda in the sales tax collection.
• sales tax, but they include items like candy and soda in the sales tax collection.
• </c> exempt typical groceries from the sales exempt typical groceries from the sales tax<04:41:48.160
• </c><04:41:52.000><c> in</c><04:41:52.240><c> sales</c><04:41:52.560><c> tax</c> and soda in the sales
• in sales tax and soda in the sales in sales tax collection.<04:41:53.920><c> So</c><04:41:54.400><c>

Committee: House Health, Human Services and Elderly Affairs

Transcript Highlights:

• out of the orders of the day: An act removing the seating capacity requirements of licenses for the sale
• Third reading of a bill: An act removing the seating capacity requirements for licenses for the sale
• Third reading of a bill: An act removing the seating capacity requirements for licenses for the sale

Summary: The Senate opened with the Pledge of Allegiance and adopted a resolution congratulating Jean M. Bubon on her retirement after 21 years of service to the town of Sturbridge. The chamber then took up several House bills and a House amendment to Senate No. 2916 on campaign finance reporting for statewide ballot questions; the Senate voted not to concur in the House amendment and requested a committee of conference, with conferees appointed. The Senate passed to be engrossed a series of local bills, including measures concerning police civil service exemptions in Leicester, town administrator powers in Carlisle, transfer of land in Marion, property tax classifications in Watertown, and a disability pension matter for Ms. Rodriguez in Springfield, which was amended on the floor before passage. It also adopted an amendment to a Belmont alcohol licensing bill to clarify seating requirements as otherwise permitted by law, then passed that bill to be engrossed. The Senate recognized the Seekonk High School Varsity Baseball Team for winning the Division 4 state championship, with remarks praising the team, coaches, and families. It also suspended Joint Rule 12 to refer a Plymouth lease petition to the Committee on State Administration and Regulatory Oversight. Finally, the Senate enacted two bills—one dedicating park and field space in South Boston and another allowing the Dalton Fire District to continue employing an interim fire chief—and then adopted an order to meet again in formal session the following Wednesday at 1 p.m. before adjourning.

Transcript Highlights:

• , we just took the piece out of there to try to solve a problem with small liquor bottles and beer sales
• flabbergasted by the, you know, raises some eyebrows with the, for now we're adding water subdivisions and the sale
• flabbergasted by the, you know, raises some eyebrows with the, for now we're adding water subdivisions and the sale

Committee: House Local Government

Transcript Highlights:

• town of Arlington to place upon a town ballot a question to increase the number of licenses for the sale
• town of Arlington to place upon a town ballot a question to increase the number of licenses for the sale
• town of Arlington to place upon a town ballot a question to increase the number of licenses for the sale

Transcript Highlights:

• three, upon a change of ownership, a new owner shall obtain a license within 30 days from the date of sale
• Failure of the owner to obtain licensure within 30 days from the date of sale may result in disciplinary
• license without charge if the proposed new owner applies in writing within 30 days of the date of sale

Committee: House Industry, Business and Labor

Summary: The committee reconvened to hear a revised version of Senate Bill 2385, with Representative Casper walking through changes made in consultation with the bill sponsor and agency counsel. He explained that the amendments restored language on change of ownership and license transfer for mobile home parks, recreational vehicle parks, and campgrounds; removed a proposed $5,000 civil penalty and returned the violation penalty to an infraction; extended the correction period before disciplinary action to 30 days with possible additional time for good-faith compliance; and removed the tenant right of first refusal, leaving park sales to willing buyers and sellers. Casper said the changes simplified the bill and addressed concerns raised earlier in committee. Members asked about how licenses would work after a sale, and Casper said a transferred license would continue for the current year, but the new owner would need to reapply annually. He also said all participating parties and the Attorney General’s counsel were amenable to the amendments. The committee adopted the Casper amendments by voice vote and then moved to a do pass as amended recommendation. The first roll call on the amended bill was confusing because several members were absent, and the committee briefly discussed whether to wait for Representative Ruby and whether votes should be repeated. Members explained their earlier no votes, with Representative Koppelman saying he had intended to vote against the amendment rather than the bill, and Representative Schauer citing concerns about provisions affecting park owners and evictions. After waiting briefly, the committee retook the vote and approved SB 2385 as amended on a 7-3-4 roll call. Representative Casper was asked to carry the bill.

Transcript Highlights:

• <c> testifier</c><00:58:51.280><c> will</c><00:58:51.599><c> provide</c><00:58:52.000><c> more</c> sale
• Our testifier will provide more sale.
• Then it brings us to Representative Van Binsbergen. prohibition on opt out sales. Okay.
• So, prohibition on opt out sales. Okay.
• There's a much it's a much lower sale.

Bills: HF3604 , HF2236 , HF3709 , HF3766 , HF2400

Committee: House Commerce Finance and Policy

Transcript Highlights:

• So their entire budget is driven by foundation seed sales.
• Our sales and services, which would include sales of crops and livestock from both our main campus operations
• Our sales and services, which would include sales of crops and livestock from both our main campus operations
• would include sales that they derive income from foundation seed as well as livestock sales.”
• “That they derive income from foundation seed as well as livestock sales.

Summary: The committee first reviewed the 2024-25 tuition waiver report for the North Dakota University System. Staff explained that waivers were reported for degree-seeking students and broken out by residency, institution, and waiver type. Members asked about partial versus full waivers, institutional discretion, athletic waivers, and whether campuses have published guardrails or transparency requirements. Staff said most waivers are set by institutions, with some statutory and board-required categories, and that athletic waivers are a small share of total waiver dollars. The report showed total gross tuition of $354.5 million, tuition waived of $38.9 million, and 11,193 of 42,040 students receiving some waiver. Members also discussed how waivers affect net tuition revenue, housing and food collections, and whether campuses are using waivers strategically compared with scholarships and other funding sources. The committee then heard a presentation on tuition rates by campus and State Board policy. Staff explained the board’s tuition factors for resident, Minnesota reciprocity, contiguous-state/U.S. nonresident, and international students, and noted that campuses often seek exceptions based on program-specific competition and enrollment goals. Members asked whether rates are based on cost or competition, and staff said campuses typically bring forward estimates and market comparisons when requesting special rates. The presentation also reviewed general fund appropriations versus net tuition revenue by campus, and members discussed how local tuition decisions and waivers do not directly affect the state funding formula, though they do affect institutional revenue and reserves. Questions were also raised about the Higher Learning Commission’s financial composite indicator and how it differs from the more intuitive reserve and revenue figures. The committee next received a broad overview of non-higher-education entities affiliated with the State Board of Higher Education, beginning with NDSU agriculture-related units. Dr. Greg Lardy described the State Board of Agricultural Research and Education, the NDSU Extension Service, the Agricultural Experiment Station, and the branch research centers, emphasizing their statewide role in crop and livestock research, extension education, and county-based outreach. He outlined funding mixes for extension, the experiment station, and branch stations, noting that grants and contracts support both research and education, while the agronomy seed farm is self-funded through seed sales. Members asked about the new and vacant FTE pool, R1 research status, matching requirements for grants, and whether state appropriations count toward research expenditures. Dr. Lardy also highlighted major research impacts, including crop varieties, virtual fencing, AI-assisted weed control, and NDAWN weather data. The Northern Crops Institute and the Upper Great Plains Transportation Institute also presented. NCI described its role in market development, technical services, and education for regional agriculture, its governance through the Northern Crops Council, and its funding from state appropriations, other states, and earned revenue. Members asked about the source of out-of-state funding, intellectual property, and the institute’s international reach. UGPTI then outlined its transportation research, federal and state funding structure, and work on road and bridge condition assessments, travel demand modeling, and workforce training. No votes were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• Beginning January 1st, 2027, prohibits the sale, offer for sale, or distribution for sale of any disposable
• </c><01:06:42.760><c> would</c> And so, um that is online sales would And so, um that is online sales
• So, it would be a restriction on the sale, not so much an abolition, but a restriction on the sale of
• Please get it to me, uh, soon, before we adjourn today. sale, not so much an abolition, but a sale, not
• sale of the disposable<01:08:29.160><c> products.

Bills: SB2960 , SB2347 , SB2272 , SB3137 , SB3132 , SB2271 , SB2804 , SB2175 , SB2487

Committee: House Consumer Protection & Commerce

Summary: The committee heard several resolutions and one bill focused on energy reliability, utility infrastructure, insurance, tenant rights, and home health licensing. On the energy side, members heard HCR 203/HR 193 on a status update for the Hawaii Electric Reliability Administrator, HCR 204/HR 194 on a comprehensive PUC analysis of cost reduction and risk, and HCR 202/HR 192 creating a legislative task force on future energy pathways. Testimony on the energy measures was generally supportive from the PUC, DCCA’s Division of Consumer Advocacy, the Hawaii State Energy Office, and the Office of Hawaiian Affairs, with OHA urging that equity, native Hawaiian impacts, and public trust resources be considered alongside cost savings. The committee also heard HCR 125/HR 117 on coordinating with utilities to address aging utility poles and lines along Farrington Highway and other high-risk corridors; Hawaiian Electric supported the measure, Hawaiian Telcom and Charter Spectrum said much of the work is already underway and questioned whether the resolution was necessary, and committee questioning focused on existing double-pole tracking and the role of DOT and the PUC. The committee then took up HCR 137/HR 129 on timely reimbursement of health care claims under the clean claims statute. The DCCA Insurance Division and the Hawaii Insurers Council opposed the measure as drafted, saying it could be read to require payment beyond policy limits and could raise premiums or reduce market participation. United Policyholders supported the measure, arguing it would simply give policyholders more time to collect benefits they already purchased, and clarified that it was not intended to increase coverage beyond policy limits. The committee later amended the resolution to direct the DCCA Insurance Division to prioritize investigation and enforcement of clean claims complaints. In the decision meeting, the committee recommended and adopted passage of HCR 203/HR 193 as is, HCR 204/HR 194 with an amendment removing the eighth whereas clause, HCR 202/HR 192 with an amendment adding a committee representative to the task force, HCR 125/HR 117 as is, and HCR 137/HR 129 with amendments. The committee also heard SB 2960 SC1 on property insurance, which would extend the time policyholders have after a declared disaster to document replacement-cost claims. The Insurance Division and Hawaii Insurers Council opposed it, warning it could force coverage beyond policy limits and increase premiums, while United Policyholders supported it and said it would help disaster survivors recover benefits they already paid for; members questioned whether similar laws in other states had caused premium spikes and clarified that the bill was not intended to exceed policy limits. The committee also heard SB 2347 SD1 on multilingual tenant-rights notices, with OHA, Hawaii Appleseed, and others supporting the bill but urging restoration of language requiring landlords to directly provide the notice at lease signing. Finally, SB 2272 SD1 HD1 on home health licensing drew support from the Department of Health, SHPDA, and the Health Care Association of Hawaii, with the association requesting an effective date amendment; testimony explained that the bill would allow state licensing compliance to be demonstrated through CMS-approved accreditation or certification surveys, potentially reducing duplication and freeing state resources.

Transcript Highlights:

• rate to those sales.
• Had we Louisiana's also very excellent rate to those sales.
• There's also the potential where... ...from the sale to do that.
• This is purely local funds, the proceeds of the sale.
• It requires any portion of the sale, approximately... ...to UND back in the '60s.

Bills: HB1623

Committee: Joint Appropriations

Summary: The committee first heard House Bill 1624, the “Universal Lunch Bill,” from Rep. Mike Nathie. He argued the proposal should be placed in Century Code rather than the Constitution so future legislatures can adjust it if state finances tighten, and said the bill would start the program a year earlier with a $65 million appropriation for one school year. DPI testified that the estimate did not include nonpublic schools that do not participate, and members questioned the impact on Title I, free-and-reduced applications, private-school accountability, breakfast mandates for schools that do not currently serve breakfast, and whether the funding could come from the DPI budget or other sources. Supporters, including North Dakota United, the North Dakota Catholic Conference, a pediatrician, and the American Heart Association, said universal meals improve student health and learning, reduce family costs, and are better handled in statute than by constitutional amendment. No opposition testimony was offered, and the chair closed the hearing for later work-session action. The committee then took up House Bill 1627, introduced by Rep. Tye Dressler, which would raise the income threshold for the state-funded school lunch program from 225% to 300% of poverty, with an estimated cost of about $7 million for 2026-27. Dressler said the bill is intended as a targeted, budget-friendly alternative to the ballot measure and emphasized that the state should maximize federal meal dollars while improving participation in the current program. Members questioned whether raising the threshold would actually increase utilization, whether a dollar amount would be clearer than a percentage, and how the change would affect federal reimbursements and application rates. DPI said it could quickly calculate additional percentage levels, and the chair closed the hearing, directing DPI to prepare more numbers for the work session. Finally, the committee opened Senate Bill 2403, presented by Sen. Schiable, to create a short-term bridge-loan program for financially distressed hospitals, centered on Jacobson Memorial Hospital in Elgin. The bill would authorize up to $5 million per loan, with a $10 million appropriation available on a first-come, first-served basis, and would run only through June 30, 2027. Schiable said the hospital’s debt and operating problems threaten local health care, ambulance service, and the community’s economy, and that the proposal was designed narrowly with Bank of North Dakota review to avoid creating a broad precedent. Committee members asked whether the appropriation could be reduced and whether the bank would still apply commercial feasibility and repayment standards; Schiable said yes, the bank would still evaluate the loan and could reject it if it was not sound.

Transcript Highlights:

• Then I paid sales tax on that vehicle...
• If I ever sell the car and buy another, I'll pay sales tax on the next one over all over again.
• Uh, a county can go out and do a sales tax countywide on their own, and Sales tax countywide on their
• So when we're talking about a 1% sales tax, that's significant for these...
• You voted against a bill that would have added sales tax on to destination ...added sales tax on to destination

Transcript Highlights:

• Question 11: How is the indication or diagnosis captured for drugs at the point of sale?
• Specifically, how does point of sale?
• GLP-1 medications already account for more than 20% of total sales at many pharmacies.
• </c> sale. that is not sustainable. sale. that is not sustainable.
• </c><01:12:09.199><c> at</c> more than 20% of total sales at more than 20% of total sales at manyarmacies

Summary: The Medicaid Oversight and Advisory Board met on February 23, 2026, approved the January 12 minutes, and then focused primarily on Kentucky Medicaid’s coverage and potential expansion of GLP-1 drugs, especially for weight loss. Department for Medicaid Services Commissioner Lisa Lee explained that Medicaid currently does not cover drugs for weight loss, anorexia, or weight gain, but the department had filed a regulation to remove that blanket exclusion so GLP-1s could be covered when used for an underlying health condition. She said the administrative regulation review subcommittee found the regulation deficient, and the co-chairs wanted the board to discuss the policy and financing implications before any change. DMS also said it would be open to adding caveats to ensure coverage would not extend to cosmetic weight loss alone. The department provided several data points on current utilization and spending. In 2025, Kentucky Medicaid paid for appetite-stimulating drugs such as Megestrol, Dronabinol, and Marinol, but did not pay for weight-loss drugs. For GLP-1s, DMS said coverage began in 2025 and is limited to FDA-approved medical conditions, with prior authorization requiring a type 2 diabetes diagnosis code and A1C documentation. DMS reported $234.6 million in GLP-1 spending in 2025 before rebates, about 240,931 prescriptions, and said GLP-1s accounted for 7.3% of pharmacy spend in 2024 and 8.3% in 2025. It also said there were 24,844 expansion members and 13,638 non-expansion members using GLP-1s, with spending of about $156 million and $78.5 million respectively, and that 10 pediatric weight-loss prescriptions were covered under EPSDT. The department said outcome analyses, including whether GLP-1 use reduces insulin or other diabetes treatment, are underway and should be completed in a couple of months. Members asked about cost, rebates, and whether the state should wait for more outcomes data before expanding coverage. DMS said average reimbursement to pharmacies was $975 per prescription and the average dispensing fee was $109; it also said 2025 rebate invoices totaled $90.8 million, with $7.6 million collected so far. Several members expressed concern about the high cost and the need to evaluate whether the drugs improve health outcomes before expanding access, while others noted the potential benefits for obesity and diabetes treatment. Some members also discussed whether GLP-1s are effectively being used for weight loss in diabetic patients and whether broader data collection should be used to assess long-term value. After the Medicaid discussion, Eli Lilly executive Tracy Sims presented on obesity as a chronic disease and the economic burden it creates in Kentucky. She said Kentucky’s adult obesity rate is a little over 37%, that obesity is linked to about 200 diseases, and that untreated obesity costs the state billions in GDP and hundreds of millions in state budget impact. She highlighted recent federal access programs for GLP-1s, including a Medicaid-related program that she said could lower the state share of a Zepbound prescription to about $71 per month after federal matching. No votes were taken on the GLP-1 policy question during the meeting, and the main action was the receipt of testimony and discussion of the department’s proposed regulatory change.

Transcript Highlights:

• But in an unhealthy market, you have to step in and prevent the types of sales that are going to put
• In 2021, AB 1346 phased out the sale of gas equipment in California.
• In 2021, AB 1346 phased out the sale of gas equipment in California.
• So that bill, as Rock mentioned, resulted in a de facto moratorium on the sale of oil and gas wells.
• Many of these stores often have outdated point-of-sale systems and can use additional time to ensure

Summary: The committee heard a long series of bills, beginning with AB 2026 on groundwater recharge. The author and supporters said the bill would streamline permitting for recharge projects, codify long-standing CEQA exemptions for flood diversions to recharge, and add tribal consultation and other guardrails. Water agencies and local districts supported the measure as a way to capture high-flow water and reduce groundwater subsidence, while environmental groups and some irrigation districts opposed it, warning that the bill’s exemptions and broader diversion authority could harm rivers, Delta resources, and public trust values. The bill was discussed but not voted on because the committee lacked a quorum at that point. The committee then took up AB 1577 on data center energy accountability, which would require monthly reporting of energy-use data and permit-related estimates of energy and water demand. The author and the Little Hoover Commission argued the bill would improve transparency, help protect ratepayers, and give regulators better information for grid planning. Data center industry representatives opposed it as duplicative, burdensome, and uniquely targeted, while local governments, environmental groups, and some utilities supported it or supported it if amended. The bill was later reported out with a due pass recommendation once a quorum was established. Members also heard AB 2245 on a producer responsibility program for lubricant products and containers, AB 2170 on CEQA language-access and environmental review protections for overburdened communities, AB 2059 on rural transportation and VMT mitigation, AB 1808 on Western Joshua tree permitting and fee relief, AB 2182 on industrial energy efficiency program changes, and AB 2231 on streamlining two hospital projects. Testimony was mixed on most of these bills: supporters emphasized affordability, local control, environmental justice, or project urgency, while opponents raised concerns about CEQA scope, regulatory duplication, costs, and environmental impacts. Several measures received due pass recommendations and roll-call votes, including AB 2170, AB 2059, AB 1808, AB 2182, and AB 2231, with some members voting no or not voting and some bills left open for absent members.

Transcript Highlights:

• have a section for updating compounding rules to match national standards, as well as to allow the sale
• final thing is we have some cleanup language just to refer back to statute for the over-the-counter sale
• have a section for updating compounding rules to match national standards, as well as to allow the sale
• You've also heard that the fact that we can't utilize sales or Arkansas state or tax-free weekend in
• Sales and discount offers don't last for weeks or months while parents wait for pre-approval.

Committee: All ALC-ADMINISTRATIVE RULES

Summary: The Administrative Rules Subcommittee met to review a long agenda of agency rule changes, beginning with housekeeping on the order of business and then taking up rules from multiple state agencies. Early items included Department of Energy and Environment rules on landfill post-closure trust fund spending thresholds and liquefied petroleum gas standards, DFA’s odometer disclosure rule allowing electronic signatures and disclosures, and several Department of Health rules covering ionizing radiation, mobile home and recreational parks, lead-based paint, counseling licensure, hearing instrument dispensers, athletic training, dental specialties and compacts, nursing, pharmacy, physician assistants, medical compacts, speech-language pathology and audiology, radiologic technology, massage therapy, community health workers, doula certification, and cosmetology/body art. Most of these were described as technical updates, conformity with recent acts, federal standards, or compact participation, and nearly all were approved without objection after brief questions and, in many cases, no public comment. The committee also reviewed Department of Labor and Licensing rules on minimum wage/independent contractor standards, boiler rules, motor vehicle commission requirements for ATV/LSV dealers, professional wrestling regulation, appraiser qualifications, and military recruiting and retention programs. Testimony generally emphasized that the rules implemented recent legislation, updated fees or licensing standards, or streamlined existing processes. Members asked a few questions about fee structures, the rationale for regulating professional wrestling, and how the National Guard’s public-private partnership and incentive programs would work; the department said the recruiting incentives would be funded from existing appropriations and were intended to improve retention and force strength. These rules were also approved without objection. The most extensive discussion came on the Department of Education’s Arkansas Children’s Educational Freedom Account Program rule. The department said the revisions, based on Act 920 of 2025, were intended to add guardrails, clarify allowable expenses, and speed approval of core educational purchases. Changes included defining core educational expenses, limiting certain sports-related spending, adding an intentional misuse standard, restricting phone purchases except for disability-related needs, setting a $1,000 threshold for additional review of technology purchases, capping carryover funds at $8,500, and creating a reconsideration process for denied expenses. Members raised concerns about safeguards, appeals, sports equipment, provider credentialing, rural vendor access, and whether the department would be flexible or overly restrictive. The department said it would review every request, provide written explanations for denials, allow appeals up to the State Board, and refer suspected fraud to prosecutors if necessary. After hearing from 13 members of the public, the committee continued to discuss the rule, but the transcript ends before any final vote on the EFA rule is shown.

Transcript Highlights:

• Beyond income tax and sales tax, $900 post-tax that they would have to pay.
• Many of our cities and counties have a transportation sales tax, right?
• Proceeds from land sales and tax increment revenues were pledged to the project, and these agreements
• AB 2433 adds more tools to counties' and cities' toolboxes by incentivizing for-sale homes, allowing
• to be able to produce multifamily housing that would be ultimately for sale.

Summary: The committee heard several local government-related bills, with testimony focused on permitting, transportation funding, EV infrastructure, and commercial revitalization. AB 1578 by Assembly Member Jackson would require elected local and state officials to take anti-hate speech training through existing sexual harassment training. Supporters said elected officials should understand the impact of their words on hate and democracy; opponents argued the bill lacked a definition of hate speech and could chill protected speech, especially around sex-based issues. AB 2083, also by Jackson, would authorize a regional child care special district serving Moreno Valley and Paris to expand child care facilities and programs for five years. The California Association of Local Agency Formation Commissions opposed the bill’s mechanism but said it was working with the author. AB 1693 by Assembly Member Suber would streamline retail tenant improvement permits by extending a process similar to a prior restaurant permitting law, with qualified professional certification and tighter local review timelines. It drew broad support from retail, business, and property groups and no opposition. Assembly Member Gonzalez presented AB 1679, which would create a temporary commercial activation permit for pop-up businesses to operate in vacant storefronts for up to 120 days. Supporters said it would help fill vacancies and lower barriers for small businesses; there was no opposition, and the bill advanced. Gonzalez also presented AB 2418, which would set timelines for nonresidential plan checks and inspections and allow private plan checkers after excessive delay. Business groups supported it as a way to reduce costly delays, while local government groups had no position but continued discussions with the author; the bill advanced with amendments. Assembly Member Shevlin presented AB 1820, which would cap local permit fees for EV charging installations and create a statewide fee schedule. Supporters said fees vary too widely and can deter charger deployment, while cities and counties argued existing law already requires reasonable cost recovery and that the bill could undercut local budgets and public safety review. Assembly Member DeMaio presented AB 1783, which would prohibit state and local mileage taxes or road user charges. Supporters framed it as a defense against a new tax burden, while opponents said studying road user charges is necessary to address declining gas tax revenue and future transportation funding needs. AB 1693, AB 1679, and AB 2418 were moved forward with motions and roll calls; AB 1783 was taken up with a motion and roll call left open, and AB 1820 remained under discussion at the end of the excerpt.

Transcript Highlights:

• And so maybe you'd see greater sales, commerce, and things like that.
• It generates revenue in other ways through sales tax, meals tax, gas tax, rooms tax, and more.
• I'm a little uncomfortable with what sounds a little bit like a sales pitch. That's okay.
• Just a point of clarification on the sales tax—sorry, the income tax question.
• Just a point of clarification on the sales tax—sorry, the income tax question.

Summary: The Special Joint Committee on Initiative Petitions held a public hearing on two proposed ballot initiatives: one to reduce the state personal income tax rate from 5% to 4% over three years, and another to revise the state’s tax collection cap/62F process so it would be based on prior-year collections plus wage growth and include surtax revenue. The committee chair and House co-chair outlined the hearing process, and the first witness was Doug Howgate of the Massachusetts Taxpayer Foundation, who testified as the committee’s subject-matter expert on both measures. He said the income tax proposal would lower taxes broadly but would reduce state revenue by about $5.4 billion when fully implemented, with an estimated $800 million hit in FY27, and he discussed possible effects on competitiveness, taxpayer savings, and public finances. On the 62F proposal, he said the revised cap would make refunds more likely, could have produced several large refunds in recent years, and would reduce stabilization fund deposits and constrain recovery after recessions. Committee members questioned Howgate about competitiveness, outmigration, prior tax ballot measures, spending growth, MassHealth, and the interaction between the income tax and surtax. He emphasized that taxes are only one part of the state’s overall competitiveness and that housing, public services, and other factors also matter. He also noted that the surtax is constitutionally restricted but can still support ongoing spending choices. After his testimony, the committee moved to the proponents’ panel. Proponents of both initiatives, including representatives from Taxpayers for an Affordable Massachusetts, the National Federation of Independent Business, Pioneer Institute, and the Mass Opportunity Alliance, argued that the measures would improve affordability, help retain residents and businesses, and support job growth. They cited polling support, outmigration, small-business reinvestment, and comparisons to lower-tax states such as North Carolina. Their economist, Rebecca Paxton, said her model showed smaller revenue losses than critics claim and projected that the revised revenue cap would not create additional annual revenue losses while producing more regular taxpayer refunds. Committee members pressed the panel on competitiveness, prior ballot initiative implementation, and whether the measures would actually address broader affordability pressures; the hearing ended with the committee continuing to take questions from the proponents.

Transcript Highlights:

• This is reflected in the bond sale each year.
• So you can see there, and we talked about... ...in the bond sale each year.
• Another reflection on that is this is the bond sale. Right, if you would. What is working?
• that bond sale, right?
• So does that, the vehicle sales tax, does that— side.

Committee: House Ways & Means