Transcript Highlights:

• division to start looking<00:09:00.760><c> at</c><00:09:01.000><c> technology</c><00:09:01.600><c> AI
• 00:09:01.880><c> issues</c><00:09:02.320><c> and</c><00:09:02.520><c> and</c> looking at technology AI
• issues and and looking at technology AI issues and and the<00:09:02.720><c> like.

Keywords: 918, senate, all

Summary: The committee took up a series of conference amendments to House File 4188. The A24 amendment, described by nonpartisan staff as a technical change to data-sharing language, was modified on the floor to delete everything after the reference to section 295.52, then adopted. The A17 amendment, which adjusted effective dates in a previously enacted liquor bill so several provisions would take effect July 1 instead of August 1, was also adopted after staff noted it affected the happy hour provision and two other liquor-related sections involving coolers/nonalcoholic beverages and resorts. The A20 amendment, which changed notification language and directed penalties into a victim’s crime account, and the A22 amendment, a set of technical corrections requested by the Department of Commerce on reinsurance administration, were both adopted. The A23 amendment, adding residential mortgage originators and servicers into chapter 58, was likewise adopted. The committee then considered several Senate provisions. A motion to adopt Senate Article 4, sections 8 through 12, which would prohibit the sale of cats and dogs in pet stores with a grandfather for existing businesses, was debated and failed on a roll call because it did not receive enough House-side votes. A separate motion to adopt Senate Article 4, section 35, dealing with paddle wheel prizes and the maximum value of merchandise prizes for paddle tickets, also failed for lack of sufficient House-side support. Another Senate motion to adopt Article 4, sections 13 through 14, which would restrict minors’ access to chat bots and create Attorney General enforcement and a transition period, was discussed at length. Supporters framed it as a consumer protection measure, while Chair O'Driscoll raised concerns about enforceability and broader AI-related policy needs; the motion failed on a roll call. After the failed motions, the committee recessed to the call of the chair.

Transcript Highlights:

• You heard the technical skills are still needed as we evolve with new AI, whatever it might be; we need
• You heard, the technical skills are still needed as we involve as a new AI, whatever. as we involve as
• a new AI, whatever it might be, we need experience, we need men and women who know discipline and they

Committee: Senate Military and Veterans Affairs

Summary: The committee heard several veterans-related bills. SB 888 would exclude VA service-connected disability compensation from household income when determining eligibility for the low-income disabled veterans’ property tax exemption. Support came from veterans organizations, county veterans services groups, and local officials; there was no opposition, and the bill was approved and sent to Appropriations. SB 1040 would create a state-local matching program for veterans’ cemetery maintenance endowments, with the state matching private or local deposits up to $250,000 per cemetery per year. It drew support from veterans groups and county representatives and was also approved and sent to Appropriations. The committee also considered SB 1407, which would exempt military retirement pay and surviving spouse military retirement benefits from state income tax. The author and supporters argued it would help retain military retirees in California and support the workforce and economy. The bill received broad support from veterans organizations, county officials, and labor representatives, with no opposition, and was moved to Appropriations, with the roll held open and later completed. SB 1034 would streamline access to disabled veteran parking placards for veterans rated 100% permanent and total, and SB 1201, the No Hungry Heroes Act, would seek federal waivers and other changes to protect vulnerable veterans from CalFresh/SNAP cuts and ensure referrals to county veterans service officers. Both bills had support from veterans advocates and food banks, no opposition, and were approved to Appropriations. Finally, SB 1354 would prohibit out-of-state military personnel from entering California to perform military or law enforcement functions without the governor’s permission, while preserving Title 10 activations and mutual aid arrangements. The author and the California Public Defenders Association framed it as a safeguard for state authority and civil rights; there was no opposition, and it was sent to Public Safety. After the main votes, the committee later completed the held rolls and reported the bills out, then adjourned after thanking veterans and attendees.

Transcript Highlights:

• You heard the technical skills are still needed as we evolve with new AI, whatever it might be; we need
• You heard, the technical skills are still needed as we involve as a new AI, whatever. as we involve as
• a new AI, whatever it might be, we need experience, we need men and women who know discipline and they

Summary: The Senate Military and Veterans Affairs Committee heard several veterans-related bills, beginning as a subcommittee until a quorum was established. SB 888 would exclude VA service-connected disability compensation from household income when determining eligibility for the low-income disabled veterans’ property tax exemption. Support came from veterans organizations, county veterans services officers, and local government representatives; there was no opposition. The bill was moved to Appropriations and later recorded as passing 4-0. SB 1040 would create a state-local matching program for maintenance endowments for veterans’ cemeteries, with the state matching private or local contributions up to $250,000 per cemetery per year. Supporters emphasized the need for sustainable perpetual care funding for state and county cemeteries, and there was no opposition. SB 1407, the chair’s bill, would exempt military retirement pay and surviving spouse benefits from state income tax; supporters argued it would help retain military retirees in California and support the economy, while members noted similar bills had previously stalled in Appropriations. SB 1034 would streamline disabled veteran parking placard eligibility for certain 100% permanent and total veterans, and SB 1201, the No Hungry Heroes Act, would seek federal waivers and related changes to protect vulnerable veterans from CalFresh/SNAP cuts and connect applicants to county veterans service officers. All of these bills received support from veterans groups and related organizations, with no opposition heard. SB 1354 would prohibit out-of-state military personnel not operating under Title 10 from entering California to perform military or law enforcement functions without the governor’s permission, with supporters framing it as a safeguard for state authority and civil liberties. The committee asked about legal testing of the proposal, and the author said it had not yet been tested in court. After roll calls and a brief recess to regain members, the committee recorded 4-0 votes to pass the bills and consent calendar items, and the meeting adjourned after thanking veterans for their service.

Transcript Highlights:

• And I'm sure probably what happened was you had AI generate these.
• So it was really no one's fault except for AI. So we can blame AI for that.

Keywords: 914, all

Transcript Highlights:

• THE FUTURE FELT GYMNASIUM IS TO OFFER A PERSONALIZED, AI DRIVEN HEALTH AND FITNESS PROGRAM THAT WILL
• WITH OUR UF PARTNERS WE PLAN TO DISCOVER HOW AI CAN INFORM A PERSONALIZED APPROACH TO HEALTH AND FITNESS
• WE ARE ALSO LOOKING TO LEVERAGE THE MANY EXPERTS AND PROGRAMS IN AI IN THE UNIVERSITY OF FLORIDA TO HELP

Keywords: 999, senate, all

Transcript Highlights:

• Specifically, the bill number is H. 678, and its companion on the Senate side is S. 388.
• The growth of AI, of course, adds to the pressure around data security concerns that we have, and these

Committee: Joint Joint Committee on Education

Keywords: 995, all

Summary: The Joint Committee on Education opened a hybrid public hearing on a large slate of bills related to school buildings, school finance, technology, data privacy, safety, and related education issues. Chairs Jason Lewis and Ken Gordon outlined procedures for the hearing, including two-minute testimony limits and the plan to group similar bills together. Several bills drew no testimony and were closed without further discussion, while others drew extensive testimony from legislators, school officials, parents, advocates, and educators. A major theme was school safety and student well-being. Lori Al-Hadeth testified in support of bills on alert systems in public schools, describing the loss of her daughter in the Parkland shooting and urging adoption of Alyssa’s Law-style panic alert technology. Representative Gallagher and disability advocates also supported a bill authorizing, but not requiring, airway clearance devices in schools, arguing they could save lives in choking emergencies and provide an option for people who cannot use the Heimlich maneuver. Another bill on reducing cafeteria waste drew support from a legislator and a Lexington sustainability official, who said installing dishwashers during construction would reduce waste and long-term costs. Much of the hearing focused on Chapter 70 school funding and the inflation cap. Senator Pavel Payano, Senator Sal DiDomenico, Representative Senna, and multiple local officials and school committee members from Bridgewater, Chelsea, Groton-Dunstable, and other districts argued that the 4.5% cap on inflation adjustments has left schools underfunded during years of high inflation, forcing layoffs, larger class sizes, and cuts to programs and student supports. They urged bills to eliminate the cap, restore lost funding, increase the Commonwealth’s share of the foundation budget, or create commissions to study reforms. Testimony also highlighted the impact on special education, English learners, and low-income students, with Chelsea witnesses saying the cap has cost their district about $7 million annually. School construction and MSBA reform were the other major topic. AIA Massachusetts, Boston Public Schools, Lynn officials, and AFT Massachusetts described aging facilities, overcrowding, deferred maintenance, and the difficulty of financing new schools under current reimbursement rules. Boston officials said the district has many pre-World War II buildings and has only built a handful of new schools in decades, while Lynn leaders said reimbursement rates have fallen well below the statutory 80% because of caps and ineligible costs. Witnesses urged modernization of the MSBA program, higher reimbursement rates, and more resources for school construction. The committee also heard support for a bill to study the adequacy and equity of the school building program, and chairs indicated some bills would be closed after no one signed up to testify.

Transcript Highlights:

• It also strengthens protections for children by ensuring AI-generated content that depicts minors in
• This is House Bill 2292, the cross-reporting on child abuse where companion animals are also being abused

Keywords: 959, house, all

Transcript Highlights:

• It also requires ADE to adopt a curriculum for the AI instruction that includes instruction on specific
• forward because of concerns that the images of abused and murdered children were being used through AI

Summary: The caucus reviewed a series of Senate-amended bills, with staff summarizing each measure and noting whether the sponsor intended to concur. HB 2305 would revise Arizona’s private towing laws and remove a requirement that municipalities or law enforcement enforce the prescribed towing rates; HB 2398 would impose insurance requirements for watercraft rentals, charters, and peer-to-peer sharing; HB 2957 would bar state and local governments from requiring a digital or mobile driver’s license for identification, while dropping a House provision on biometric identifiers. Members asked for Senate vote counts on several bills and clarified that HB 2305 and HB 2398 were separate from other towing and boot-related measures. The committee also discussed HB 2321, which requires DCS caseworkers to place a security freeze on a child’s credit record after entry into care, with the Senate removing a $100,000 appropriation and one FTE; HB 2408, which changes Nursing Board complaint and expungement procedures and expands how anonymous complaints may be investigated; HB 2397, which updates HOA/condo disclosure rules and drew noted opposition from the Community Associations Institute and home builders; HB 4005, which requires public school districts to provide AI instruction at specific grade levels and directs ADE to adopt curriculum; and HB 2755, which shifts state land lease renewal language to notice and sale procedures for underperforming commercial leases. Senate vote counts were provided for several of these measures, generally showing narrow or party-line margins. The final items were HB 2406, a heavily amended bill now restricting access to records and images related to deceased minors, including child abuse images, with supporters citing concerns about misuse through AI and opponents raising disclosure and media-access concerns; and HCR 2001, a ballot referral on citizenship, voting, and election-related contributions that was substantially narrowed in the Senate but still requires voter ID, limits voting to citizens, bars foreign nationals from election spending, and mandates on-site tabulation for early votes, prompting continued county opposition because of cost and implementation concerns. The caucus ended after members were reminded that the agenda and caucus sheets had been emailed rather than printed.

Transcript Highlights:

• We've got this AI, and it's an explosion. And we need. And more data centers.
• We've got this AI, and it's an explosion, and we need these data centers.

Summary: House Finance met on Saturday, March 7, and reviewed several tax-related Senate bills before taking executive action. SB 6129 concerned cigarette, tobacco, and vapor product taxes; staff described a striker that would lower the new cigarette tax rate, keep separate tax structures for other tobacco and vapor products, direct portions of OTP revenue to the Andy Hill account and foundational public health services, and provide penalty relief and collection stays for certain retailers. SB 6228 would repeal a preferential B&O rate for warehousing/reselling prescription drugs and create a preferential rate for critical access pharmacies; Amendment 174, lowering that rate from 0.25% to 0.138%, was adopted after testimony that the original rate was not enough to support pharmacies serving isolated communities. SB 6231 would remove a tax exemption for replacement equipment at data centers and had no amendments, with members discussing the bill’s impact on budget balancing and economic development, especially for data centers and related construction jobs.

Transcript Highlights:

• Senator McNurney, SB 813, California's AI Standards and Safety Commission. Action due pass.
• Senator Umberg, SB 574, Generative AI, Attorneys and Arbitrators. The action is due pass.

Committee: Senate Appropriations

Summary: The Senate Appropriations Committee met in a vote-only suspense file hearing with no public testimony. The chair explained that measures would be taken up alphabetically, with some bills amended before voting and addendum analyses to follow on the committee website. A quorum was present, and the committee then moved through a long list of Senate bills covering topics such as battery recycling, property tax exemptions, rail safety, military protective orders, affordable housing and youth housing bonds, workers’ compensation, metal shredding facilities, elections, family research centers, electrical rates and political influence, AI standards, student health, air quality, abandoned electrical infrastructure, disaster preparedness, contracts bid preferences, presidential election qualifications, unlicensed contractor work, alcohol and drug programs, generative AI, kratom and nitrous oxide, unmanned aircraft, adoptees’ birth certificates, body-worn cameras, physician discipline, and deprivation of constitutional rights. Several bills were amended before passage, including measures on railroads, military protective orders, housing bonds, workers’ compensation, metal shredding facilities, youth housing, property taxation, kratom/nitrous oxide, adoptees’ birth certificates, and constitutional rights. The committee repeatedly substituted prior roll-call votes for similar measures, resulting in many bills passing on unanimous 7-0 votes or 5-2 votes with Republicans voting no. SB 691 on body-worn cameras passed on a 6-0 vote, and SB 742 on abandoned electrical facilities was approved after a brief roll-call correction. Overall, the committee advanced all measures heard that day and adjourned after the chair noted it was their last meeting presiding over Appropriations.

Transcript Highlights:

• testifiers, except for one, and that is this: and I should have asked Senator Jasinski, is there a companion
• um Senator uh Jasinski um is<00:16:14.640><c> there</c><00:16:14.840><c> a</c><00:16:14.920><c> companion
• </c><00:16:15.600><c> to</c><00:16:15.800><c> this</c><00:16:16.040><c> exact</c> is there a companion
• to this exact is there a companion to this exact proposal<00:16:18.200><c> in</c><00:16:18.320><c> the

Committee: Senate Taxes

Keywords: 1187, senate, all

Transcript Highlights:

• Senate bills on special orders shall be considered in lieu of the House companion measures on the House
• I truly believe that many of us, for too many of us, animals are more than property; they're companions
• Speaker, having considered the Senate bills on special order today, I move to lay the following House companions
• Today I move to lay the following House companions on the table: HB 7025, HB 7027, HB 7029, HB 7019,

Summary: The House convened with prayer, a moment of silence for former Judge John Carlin, the Pledge of Allegiance, and a recognition of FSU Police Officer Cody Popple for his actions during the April campus shooting. The Speaker also outlined the final week of session, noting the House would focus on Senate bills and returning messages, and that the 2026-27 budget would not be completed by the end of the week. The chamber then adopted the special order calendar for the day. The House passed several technical and open-government bills, mostly on strong bipartisan votes. These included SB 100, SB 104, and SB 102 on the Florida Statutes and reviser changes; SB 7006, SB 7014, SB 7002, SB 7012, SB 7024, SB 7016, SB 7026, SB 7008, SB 7000, and SB 7004, which extended or preserved various public records or meeting exemptions involving the Public Service Commission, social media investigations, military affairs, highway safety investigations, cybersecurity, small business loan records, trade secrets, emergency shelter locations, and conviction integrity units. Members asked questions on several of these bills, especially about the scope and purpose of the exemptions, but the bills generally advanced with little opposition. The chamber also took up more substantive measures. SB 7040 recreated the emergency preparedness and response trust fund and drew extended debate over whether the fund had been misused for the Everglades detention facility; an Escamani amendment to let the fund expire failed, while a Griffiths amendment adding limits and oversight was adopted, and the bill ultimately passed 82-25. CS/CS/SB 302 on coastal resiliency passed unanimously after supporters highlighted nature-based shoreline protection and a Biscayne Bay provision. CS/CS/SB 984 on firefighter cancer benefits passed after a House amendment aligned it with the House version. CS/SB 474 on military affairs passed unanimously after an amendment allowing local governments to extend Guard leave. SB 488 on the Department of Highway Safety and Motor Vehicles was debated extensively over vehicle registration requirements, license plate frames, and I-94 documentation, with amendments including one for disabled veterans and another on dealer allocation; the transcript cuts off before final disposition of that bill.

Transcript Highlights:

• Senate bills on special orders shall be considered in lieu of the House companion measures on the House
• In lieu of the House companion measures on the House calendar. Reading in the report, Mr. Speaker.
• I truly believe that many of us, for too many of us, animals are more than property; they're companions
• Speaker, having considered the Senate bills on special order today, I move to lay the following House companions

Keywords: 998, house, all

Transcript Highlights:

• Last week, the House amended HB 1417, the House companion, to remove that provision, as well as all of
• We believe this bill should be amended to match the House companion. Thank you.
• Ney Moten said, the bill has a zero fiscal ask and is only permissible in nature, and the House companion
• And the House companion was passed off the floor with 114, and the House proposed budget as well as the

Summary: The committee took up a long agenda of bills, beginning with several measures that were amended and reported favorably, including a strike-all to SB 4 on child protective investigations and specific medical diagnoses, SB 1570 restoring a statewide missing-persons project for individuals with special needs, and SB 182 creating a teacher training and mentoring program for schools needing improvement. Members also advanced SB 794 on APD background screening and support coordination standards, SB 1168 on background screening for athletic coaches and related entities, and SB 214 to let rural special districts pay verified invoices directly for state- and federally funded work. Supporters emphasized improved child welfare investigations, help for families of vulnerable individuals, teacher retention, and better administrative efficiency; the APD bill drew especially strong testimony from waiver clients and providers about the importance of competent support coordinators and stable services. The committee also favorably reported SB 1376 on grants for genetic counseling education, SB 1574 requiring newborn screening for biliary atresia, SB 1510 as the DEP agency package with environmental, septic, water quality, solar, and permitting changes, and SB 598 updating funeral and cemetery licensing and consumer protections. SB 688, after a delete-all amendment, would create licensure for naturopathic doctors and a board of naturopathic medicine; it drew strong support from naturopathic advocates and sharp opposition from a critic who argued the bill would authorize diagnosis and treatment beyond appropriate limits. SB 1318 made a technical change to scholarship account reversion language, with senators clarifying that remaining funds would return to the scholarship funding organization for future use rather than to the state. Later, the committee approved SB 682 on domestic violence and protective injunctions, SB 130 on workforce training for current and former inmates, and SB 1548, the latest Live Local Act iteration expanding affordable housing options and limiting local barriers. It also reported favorably SB 536 on criminal gang membership criteria after extensive debate about constitutional issues and modern gang activity, SB 762 allowing cross-jurisdiction assignment of capital cases among regional conflict counsel offices, SB 1332 strengthening career offender registration requirements, SB 1742 creating a new offense for indecent exposure of sexual organs to a minor, and SB 1750 increasing penalties for serious sex offenses and child sexual abuse material crimes. The most contentious discussion came on SB 1226, which would overhaul Public Employee Relations Commission rules, require majority support for union certification, and impose new limits on union activities and dues-related practices; members debated constitutional concerns, differences between first responders and other public employees, and the bill’s impact on union representation and public-sector labor rights. Most bills were reported favorably by roll call, with SB 536 drawing several no votes and SB 1226 still under active debate at the end of the transcript.

Transcript Highlights:

• </c><00:43:47.520><c> this</c><00:43:47.760><c> is</c><00:43:47.839><c> the</c><00:43:48.079><c> companion
• Um this is the companion Hustley.
• Um this is the companion version<00:43:48.800><c> of</c><00:43:48.960><c> the</c><00:43:49.119><c> bill
• Uh, Chairman, I hope I'm not getting too far ahead, but HB 145 is a companion to a Senate bill that has

Bills: SB57 , SB155 , HB39 , HB77 , HB104 , SB57 , SB155 , HB39 , HB77 , HB104

Committee: Senate Finance and Taxation General Fund

Keywords: property, acknowledgment, conveyance, business entities, limited liability companies, state employees, payroll deduction, salary deduction, comptroller, membership association, membership dues, voluntary contributions, insurance premiums, financial instruments, deferred compensation, state payroll, employee benefits, association dues, withholding, Alabama Code 36-1-4.3

Transcript Highlights:

• I think it's actually fine to, in this session, say I have a House companion even so don't hesitate to
• kind this session to say and I have a kind this session to say and I have a house<00:16:02.040><c> companion
• </c><00:16:02.639><c> even</c> house companion even house companion even so<00:16:04.680><c> don't</c

Committee: Senate Taxes

Keywords: 1187, senate, all

Transcript Highlights:

• I'm here to record their strong support for Senate Bill 176, its companion, House Bill 313, as well as

Committee: Joint Joint Committee on Community Development and Small Businesses

Keywords: 995, all

Summary: The Joint Committee on Community Development and Small Businesses held a brief hearing on several housing and planning bills. Testimony focused on Senate Bill 176 and House Bill 313, which would update Chapter 40R smart growth zoning incentives and double municipal payments for adopting qualifying zoning districts, and Senate Bill 177, a technical correction to Chapter 40S so starter-home districts created under Chapter 40Y would also qualify for school cost reimbursement. Benjamin Fierro, representing the Home Builders and Remodelers Association of Massachusetts, strongly supported the bills, arguing that the current incentives are too modest, that starter homes are needed for young and first-time buyers, and that the school reimbursement fix is necessary to align the statutes. Nally Soto of the Massachusetts Housing Coalition also supported the bills, saying the higher incentives would help municipalities approve more housing and address the housing shortage. Representative Kassner testified on House Bill 303, a remote community development planning bill modeled on Executive Order 418. She said it would restore and expand statewide comprehensive planning for land use, transportation, housing, open space, infrastructure, and climate resilience, with regional planning agencies playing a key role. Committee members asked about how Chapter 40S reimbursement is calculated and how the planning bill would interact with existing regional planning commissions. One member also spoke in support of the housing bills and described local challenges with affordability, land costs, and compliance with the MBTA Communities law. No votes were taken during the hearing. The chair closed testimony after a final call for additional witnesses and announced that the committee would continue working on the bills and hold one more hearing in September on additional measures and late-filed bills. The committee then adjourned by motion and second.

Transcript Highlights:

• One of the examples that we have is the Department of the Army has announced several companion projects

Summary: The House Labor, Veterans and Military Affairs Committee heard House Bill 29, which would appropriate $8 million to the military base impact fund. The sponsor and supporters said the money would help local communities around New Mexico’s military installations compete for federal grants and fund mission-readiness infrastructure such as utilities, roads, water treatment, and other defense-critical projects. Support came from the Greater Albuquerque Chamber of Commerce, the New Mexico Veterans and Military Families Caucus, the Kirtland Partnership, and others, who argued the investment would strengthen military readiness, protect jobs, and bring federal dollars into the state. Committee members asked about the types of projects eligible, whether data centers or clean-energy projects could be involved, how water and local regulations would apply, and how the grant process would work. The bill was reported out with a due pass recommendation and no opposition. The committee then heard House Bill 221, which would remove the $30,000 cap on the New Mexico income tax deduction for military retirement pay. The sponsor said the change would cost about $6 million annually but would help attract and retain military retirees, many of whom retire relatively young and may start businesses or remain active in the state economy. The Department of Veterans Services and the New Mexico Veterans and Military Families Caucus testified in support. Committee questions focused on how many retirees would be affected, the fiscal impact, and longer-term projections; department staff said the veteran population in New Mexico is gradually declining over time based on VA modeling. HB 221 also received a due pass recommendation with no opposition. After both bills were approved, the chair announced the committee was nearing its dinner hour and adjourned the meeting.

Transcript Highlights:

• Because if I heard Representative Johnson right, he said that no companion bill made it through the DFL-led

Transcript Highlights:

• Senate Bill 935 as a matter of pending business, but the chair lays out House Bill 1109, the House companion

Bills: SB771 , SB2345 , HB135 , HB135

Committee: Senate Finance

Keywords: diesel fuel tax, tax credit, auxiliary power units, power take-off equipment, refund, energy efficiency, firefighter retirement, municipal contributions, pension system, retirement benefits, funding ratios, sales tax exemption, exotic animals, game animals, agriculture, livestock, civil liability, motor vehicle, legal protection, removal

Summary: The Senate Finance Committee heard Senate Bill 2345, as a committee substitute, which would reform the Austin Firefighter Retirement Fund. Senator Schwertner explained that the bill is based on an agreed voluntary funding soundness restoration plan between the City of Austin and the fund, and would create a new reduced benefit tier for firefighters hired on or after January 1, 2026, adjust COLAs for current retirees, establish an actuarially determined funding model to address legacy liabilities and 2024 asset losses over 30 years, and add new board seats. Mayor Kirk Watson, city finance staff, the fund executive director, trustees, and retired firefighters all testified in support, describing the measure as an agreed-to, fiscally responsible compromise that protects benefits, supports recruitment, and reduces risk to taxpayers. The committee adopted the committee substitute, but left SB 2345 pending. The committee also heard House Bill 135, which clarifies tax treatment for exotic game or exotic livestock operations by defining them within agricultural exemptions and stating that sales of exotic livestock are not subject to sales and use taxes. Senator Flores described it as a clarification to provide consistency and fairness, and a witness for the Exotic Wildlife Association said it would resolve a Comptroller-related tax issue and benefit ranchers, landowners, and hunters. The committee closed public testimony and reported HB 135 favorably to the full Senate, with a motion to place it on the local and uncontested calendar. Senate Bill 771, by Senator Hinojosa, was also heard and later reported favorably. The bill would allow diesel fuel used in auxiliary power units or power takeoff units to qualify for the same fuel tax credit or refund already available for gasoline, correcting an inadvertent exclusion from the 2003 motor fuel tax rewrite. A witness supported the bill as a matter of tax equity. The committee then considered House Bill 1109, the House companion to SB 935, which exempts counties from certain motor fuel taxes on fuel used in county vehicles; Senator Hall explained it as simply exempting government agencies from paying the tax on their own vehicles. HB 1109 was reported favorably to the full Senate. The committee adjourned after completing its business.