Transcript Highlights:

• Leaving out nonprofits leaves out a huge element of this.
• Leaving out nonprofits leaves seriously.
• ><c> a</c> out a grants to nonprofits leaves out a out a grants to nonprofits leaves out a a<00:14:02.560
• </c> were a business. they are a nonprofit were a business. they are a nonprofit and<00:14:57.440><c>
• ,</c> we don't include grants to nonprofits, we don't include grants to nonprofits, we<00:15:26.800><

Transcript Highlights:

• This bill is about leveling the playing field among our nonprofit child care centers.
• Currently, nonprofit child care centers that own their building are exempt from property taxes, but those
• With me today I have the director of another one of our amazing nonprofit daycares in St.
• </c> reduces the overhead costs for nonprofit reduces the overhead costs for nonprofit child<00:02:53.319
• I just wondered why it is limited to nonprofits that rent.

Transcript Highlights:

• </c> funded grants per year to nonprofit funded grants per year to nonprofit organizations<00:06:55.680
• </c> figure out which ones were uh nonprofit figure out which ones were uh nonprofit organizations<00
• </c><00:40:24.240><c> over</c> 2.6 billion dollar to nonprofits over 2.6 billion dollar to nonprofits
• unique nonprofits and to 2500 nonprofits unique nonprofits and we<00:40:33.440><c> don't</c><00:40:33.640
• </c><01:07:38.160><c> or</c> government providers or nonprofits or government providers or nonprofits

Transcript Highlights:

• a bit of gratitude, recognizing the time and collaboration and the experiences that many of our nonprofits
• Today, we will hear from participants in successful models of collaboration in our state, from nonprofits
• This is a collaboration of nonprofit organizations, philanthropy, government, the private sector, and
• States, nonprofits, and industry overall. Are we okay to go in order? Are we okay?
• organizations, Together, more than 200 partners from industry, education, government, and nonprofit

Transcript Highlights:

• </c><01:28:26.560><c> organize</c> certainly help those nonprofits organize certainly help those nonprofits
• </c><01:40:47.480><c> organizations,</c> volunteer with nonprofit organizations, volunteer with nonprofit
• </c><01:43:49.679><c> looking</c> great there a lot of nonprofits looking great there a lot of nonprofits
• They lower the risk, especially for nonprofit boards.
• </c> services to nonprofits around the state. services to nonprofits around the state.

Committee: Senate Executive Departments and Administration

Transcript Highlights:

• of that nonprofit.
• But you went out and started your own nonprofit.
• to use existing nonprofits.
• nonprofits.
• Institute, a 100-year-old nonprofit.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• I mean, there's lots of small nonprofits and large nonprofits, 501(c)(3)s, C-4s, variations of that,
• Speaker and gentlelady, what my amendment does is it says that any nonprofit, an employee of a nonprofit
• It only includes an employee of that nonprofit or a board member of that nonprofit. Okay, so Mr.
• Gentlelady, I actually, in listening to the debate about the nonprofits, I actually do believe nonprofits
• There are some very large nonprofits and there are some very small nonprofits.

Bills: HB145 , HB164 , HR1 , HB20 , HB65 , HB66 , HB80 , HB306 , SB29 , SB37 , HB99 , HB206 , HB213 , HB270 , SB104 , SB193 , HB38 , HB254 , HB256 , SB58 , SB64 , HJM1 , HM7 , HM17 , HM4 , HM22 , HM23 , HM24 , HM26 , HM2 , HM16 , HM32 , HM13 , HM47 , HM20 , HM51 , HM1 , HM31 , HM35 , HM36 , HM46 , HM53 , HM54 , HM39 , HM29 , HM43 , HM59 , HM11 , HM14 , HM21 , HM34 , HM50 , HB253

Summary: The House opened with quorum, invocation, pledge, and several announcements recognizing guests and Early Childhood Day at the Roundhouse, including remarks supporting New Mexico’s universal child care efforts. The chamber then received and adopted a long series of committee reports, moving multiple bills forward, including HB 303, SB 96, HB 195, HB 279, HB 292 (with a Judiciary substitute), SB 30, HB 234, SB 35, SB 40, SB 43, HB 153 (with an Appropriations substitute), HB 253, HB 255, HB 287, HB 371 (with an Appropriations substitute), SB 143, HB 248 (with a Taxation and Revenue substitute), HB 309, SB 48, and enrollment/signing reports for memorials. The House also received Senate Judiciary Committee substitute for SB 41, which would eliminate the statute of limitations for certain sexual crimes and was referred to Judiciary. The main floor debate centered on House Judiciary Committee substitute for HB 99, a medical malpractice reform bill. Supporters said it would balance patient compensation with provider stability by capping punitive damages, raising the burden of proof for punitive damages, and limiting when such claims can be pleaded. Several members described the bill as the product of months of bipartisan work and argued it would help retain doctors, especially in rural areas. The House passed HB 99 on final passage by a vote of 16-3. The House also passed HB 66, expanding the health care provider loan repayment program, by 69-0; HB 306, addressing unexpected patient-facing facility fees, by 69-0; HB 38, adding wheelchairs to insurance coverage for certain prostheses-related benefits, by 69-0; HB 20, allowing Native American applicants to request a distinguishing designation on driver’s licenses and ID cards, by 66-3; and HB 253, preserving and regulating virtual education with an emergency clause, by 69-0. The chamber then took up HB 213, which expands optometrists’ scope of practice to include certain laser eye procedures. A proposed amendment requiring patients to sign a disclosure acknowledging that optometrists are not MDs or DOs and did not attend medical school was debated at length, with supporters framing it as informed consent and opponents calling it demeaning and unnecessary. The House tabled that amendment 35-19, and the underlying bill continued in debate at the end of the transcript.

Transcript Highlights:

• it helps the chairs and the committee in workforce at the end of session when we have a lot of nonprofits
• </c> Because in the land of 10,000 nonprofit Because in the land of 10,000 nonprofit fraud<00:09:35.200
• </c> one of those nonprofits. one of those nonprofits.
• made in the child claims the nonprofit made in the child nutrition<00:26:07.679><c> program.
• </c> Even more outrageously, that nonprofit Even more outrageously, that nonprofit had<00:26:52.799><

Summary: The House debated a motion to suspend the rules so House File 3843 could be recalled from committee and given second and third readings for final passage. The bill, carried by Representative Baker and supported by Representative Niska, would create a subcommittee of the governor’s workforce development board to vet nonprofit and other applicants for workforce development dollars, with the legislature retaining final authority. Supporters argued the proposal would add an extra layer of scrutiny, reduce fraud risk, and help prevent problems like those highlighted in recent reporting and past nonprofit funding scandals. Supporters repeatedly tied the bill to concerns about fraud in state grantmaking, citing the Feeding Our Future scandal and other nonprofit cases as examples of why more oversight is needed. Representative Baker said the committee process can be overwhelmed by many direct-appropriation requests at the end of session, and that a board-based vetting process would help identify red flags. Representative Enen and Representative Schultz also backed the motion, saying the bill would improve accountability and protect taxpayer dollars. Representative Pinto opposed the urgency motion, saying he supports moving toward more competitive grants but not adding another layer of bureaucracy without a fiscal note or fuller committee process. He argued the bill would not do what supporters claimed and that the legislature already makes funding decisions. After debate, the House took a roll call vote on the motion to suspend the rules. The motion failed by one vote, 67 yeas to 66 nays.

Transcript Highlights:

• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes

Summary: The Senate Standing Committee on Economic Development, Tourism, and Labor met and first took up Senate Bill 76, sponsored by Senator Greg Elkins. The bill would raise the construction retainage/escrow statute threshold from $500,000 to $2 million to reflect inflation, and would also make any contract term waiving the escrow protection void and unenforceable. Elkins said the measure would not apply to government contracts and was intended to protect contractors, subcontractors, and suppliers from delayed payment. The committee voted 9-0 to pass the bill with a favorable expression and send it to the floor. The committee then considered Senate Bill 59, sponsored by Senator Jimmy Higdon, with a committee substitute adopted first. Higdon said the substitute limited the bill to existing church property and the measure would allow religious institutions to build affordable housing on their property while still requiring local governing-body approval and compliance with building codes. Supporters framed it as a housing-supply tool and a way to use nonprofits and churches to help address Kentucky’s housing shortage, while questions focused on tax impacts, local control, and whether the bill could be used for single-family homes or other developments. A public witness from Henry County opposed the bill, arguing it could enable discriminatory housing and reduce local tax revenue. After discussion, the committee voted 9-0 to pass SB 59 with a favorable expression. Finally, the committee heard Senate Bill 313 from Senator Phillip Wheeler, which would designate June as Kentucky History Month. Wheeler and Kentucky Historical Society Executive Director Scott Alvi said the bill would help promote Kentucky history statewide, especially in connection with the U.S. 250th commemoration in 2026, and would build on existing June observances such as Statehood Day and Boone Day. The committee approved the bill with favorable expression, and the chair announced it would proceed to the floor.

Transcript Highlights:

• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• If these are deed-restricted units, I'm trying to understand what the risk is with a nonprofit buyer
• We are often not engaged in the contractual provisions with the nonprofits themselves, but we do sell
• If you're buying it generally with a nonprofit, you're getting 20% back to be able to move you out of
• So it's not as if the nonprofit is getting to mandate that.

Committee: Senate Housing

Transcript Highlights:

• of that nonprofit.
• It didn't direct you to start your own nonprofit.
• But you went out and started your own nonprofit.
• to use existing nonprofits. ...that you were supposed to use existing nonprofits.
• Institute, a 100-year-old nonprofit.

Transcript Highlights:

• We are a 501(c)(3) bipartisan nonprofit that advocates and educates for the rights and representation
• This legislation improves how the state contracts with nonprofits to address challenges for nonprofit
• That means... ...penalty to nonprofits with contracts exceeding over half a million dollars.
• It's about basic fairness and operational... ...by over 550 nonprofit leaders.
• AB 880 puts nonprofits on equal footing with other state contractors.

Summary: The Governmental Organization Committee heard a series of bills on holidays, procurement, public safety, and business regulation. AB 268 would add Diwali as an official state holiday and allow schools and state workers limited flexibility to observe it; supporters described it as a recognition of California’s large South Asian and Hindu communities, and there was no opposition. AB 770 would define “customary maintenance” for outdoor advertising displays to clarify what repairs and reinforcements are allowed; the bill was presented as a safety and consistency measure for the billboard industry. AB 783 would authorize the Department of General Services to negotiate bulk pricing for construction materials to help disaster-affected communities rebuild more affordably, with supporters from the housing and building sectors and some members raising concerns about state contracting, storage, and implementation. AB 381 would update state procurement rules to better prevent human trafficking and forced labor in supply chains, aligning state policy with federal standards and drawing support from anti-trafficking advocates, labor, and local government representatives. AB 668 would extend drink-spiking prevention measures to music festivals by requiring test strips, drink lids, and reporting procedures; supporters emphasized victim safety and underreporting, while venue operators opposed the bill unless amended, citing feasibility and cost concerns. AB 880 would require prompt payment and indirect cost coverage for nonprofits contracting with the state, with broad nonprofit support and no opposition. AB 989 would make California Native American Day a paid holiday, with tribal and allied support. AB 592 would extend and expand temporary outdoor dining and alcohol service flexibilities for restaurants, with strong support from restaurant and business groups and opposition from alcohol policy advocates who preferred a narrower or permanent grandfathering approach. Most bills advanced on committee votes, generally on party-line or broad bipartisan support. AB 770 was moved to Appropriations, AB 783 was passed as amended to the Assembly Committee on Emergency Management, AB 381 was sent to Labor, AB 668 and AB 880 were sent to Appropriations, AB 989 was sent to Public Employees and Retirement, and AB 592 was sent to Health. The committee also took up a consent calendar containing several additional bills, which was approved. The hearing ended with the roll left open for additional votes and adjournment at 3:17 p.m.

Transcript Highlights:

• Our mission is to inform, promote, connect, and strengthen individual nonprofits and the nonprofit sector
• Without those including nonprofits.
• 48.720><c> cannot</c> misconception that nonprofits cannot misconception that nonprofits cannot lobby
• </c> of Nonprofits. of Nonprofits.
• </c><01:21:09.600><c> this</c> Council of Nonprofits supports this Council of Nonprofits supports this

Committee: Senate Elections

Transcript Highlights:

• a bit of gratitude, recognizing the time and collaboration and the experiences that many of our nonprofits
• Today, we will hear from participants in successful models of collaboration in our state, from nonprofits
• This is a collaboration of nonprofit organizations, philanthropy, government, the private sector, and
• Community colleges are working well with other institutions, employers, and governmental nonprofits..
• States, nonprofits, and industry overall. Are we okay to go in order? Are we okay?

Summary: The select committee on Community Economic Mobility and Investment heard testimony on how California can support inclusive economic development through coordinated workforce, education, nonprofit, and industry partnerships. Chair Arambula opened by emphasizing that rural, low-income, and historically underinvested communities often face the greatest barriers to accessing state resources, and that the hearing would focus on successful collaboration models, the role of training and higher education, and future opportunities tied to economic mobility and social determinants of health. Witnesses from the California Workforce Association, Fresno State, and NextGen Policy described local and regional workforce systems in the Central Valley and beyond. They highlighted examples such as apprenticeship and pre-apprenticeship programs, employer-led partnerships, on-the-job training, support for women entering construction, programs for justice-involved and opportunity youth, and the need to braid federal, state, philanthropic, and private funding. Several speakers stressed that local workforce boards, community colleges, adult education, labor organizations, and community-based groups are best positioned to identify regional labor needs and that California should fund systems, not just individual grants, especially as federal workforce funding has declined and new work requirements tied to HR 1 and AI-related labor shifts create added pressure. A second panel focused on the Community Economic Mobility Initiative as a statewide model. Sierra Health Foundation and its partners said CME has helped community organizations build capacity, pursue more than $400 million in grants and contracts, and attract about $178 million back into California communities. Speakers from Siskiyou Economic Development Council, Fresno EDC, Edge Collaborative, and Líderes Campesinas gave examples of place-based projects in rural and urban regions, including business innovation centers, community-owned development, bioeconomy and restoration projects, subsidized employment, and farmworker-led cooperatives. They argued that long-term, locally driven investment produces stronger regional economies and better health outcomes, and urged the Legislature to provide durable funding and policy support rather than short-term extensions. No formal votes or committee actions were taken in the portion provided.

Transcript Highlights:

• The partnership is a private nonprofit...
• The practical result would be financial pressure on nonprofits to evict those tenants.
• California nonprofits, as we all know, up in shifting federal actions or narratives.
• Chair, Jennifer Fearing, Sacramento advocate for the California Association of Nonprofits.
• Almost a quarter of California’s nonprofits have utilized this process.

Summary: The committee heard and advanced several tax-related bills, beginning with AB 760, which would exempt settlement payments tied to the Garden Grove chemical incident from California income tax. The author and a school district trustee described evacuations, school closures, and losses to residents, businesses, students, and staff, arguing the payments should make victims whole rather than be taxed. There was support from the Orange County Board of Supervisors, no opposition, and the bill passed 3-0 to Appropriations, with committee amendments accepted. Members then heard AB 2319, creating a California post-production tax credit for film and television work done in-state, even when principal photography occurred elsewhere or the project did not receive the existing film credit. The author and supporters from the Motion Picture Editors Guild, California Post Alliance, and others said post-production jobs and facilities are leaving California and that the bill would help retain high-wage work; opponents were not present. The committee members generally supported the measure, and it passed 3-0 to Appropriations. AB 2186 followed, excluding future reparations benefits for descendants of formerly enslaved people from state income tax. The author and NAACP California-Hawaii State Conference said taxing such benefits would undermine reparative justice; there was no opposition, and the bill passed 3-0. The committee also heard AB 762, which would ban the sale of disposable nicotine vapes and add enforcement tools. Supporters, including waste, recycling, local government, and public health groups, said disposable vapes create fire hazards, waste problems, and costs for local agencies; opponents argued the bill would mainly eliminate the legal market while leaving illicit products untouched and urged stronger enforcement instead. The author accepted committee amendments adding CDTFA enforcement, but the bill was not voted on because a motion was pending and members were absent. Later, AB 1519, AB 2172, AB 2222, AB 1793, AB 2089, and AB 1265 were heard and each received support from committee members and passed 2-0 or 3-0 to Appropriations, with amendments accepted where noted. AB 1519 clarified that the 20-year tax collection statute of limitations should not be reset by later fees or penalties; AB 2172 would let large counties use a single assessment appeals commissioner for complex property tax appeals; AB 2222 would create a temporary tax credit for local news organizations to retain and hire journalists; AB 1793 would authorize symmetrical cash rounding to the nearest nickel after the federal penny phaseout; AB 2089 would streamline the welfare exemption filing process for affordable housing; and AB 1265 would extend and revise the historic building tax credit to encourage adaptive reuse for housing and mixed-use projects.

Transcript Highlights:

• The partnership is a private nonprofit.
• The practical result would be financial pressure on nonprofits to evict those tenants.
• California nonprofits, as we all know, up in shifting federal actions or narratives.
• Jennifer Fearing, Sacramento advocate for the California Association of Nonprofits.
• Almost a quarter of California's nonprofits have utilized this process.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• One of them was ending directed appropriations to nonprofits in legislation.
• One of them was ending directed appropriations to nonprofits in legislation.
• One of them was ending directed appropriations to nonprofits in legislation.
• Level recipient is the reinsurance nonprofit. I can't speak to that.
• Yes, like budget bills that have specific nonprofits with an allocation.

Transcript Highlights:

• nonprofits corporate right so includes nonprofits it<00:12:54.800><c> includes</c><00:12:55.440><c>
• There are provisions within federal law that allow nonprofit organizations.
• There are provisions within federal law that allow nonprofit organizations.
• Do you meet the IRS nonprofit requirements? Check, check, check.
• Do you meet the IRS nonprofit requirements? Check, check, check.

Committee: Senate Finance

Transcript Highlights:

• Recently, we've experienced federal scrutiny around nonprofit organizations regarding their tax-exempt
• Jennifer Fearing with the California Association of Nonprofits.
• Since 2008, nonprofits can pursue state tax-exempt status expeditiously by filing the FTB's 3500A form
• We are hoping to give them the opportunity to evaluate the merits of this action for all nonprofits.
• With their tax-exempt status in jeopardy, nonprofits can find their grants and payments frozen, face

Summary: The Assembly Revenue and Taxation Committee heard a series of bills focused on nonprofit tax status, housing, tribal land return, tax relief, economic development, journalism, reparations, manufacturing investment, and pawned property sales tax. The chair explained the committee’s suspense file process and noted that only AB 2270 and AB 2641 were eligible for immediate votes; other measures were referred to suspense after presentation. AB 2084 (Bauer-Kahan) would give the Franchise Tax Board discretion to delay or review revocation of state nonprofit tax-exempt status when federal status is revoked, and AB 2167 (Macedo) would clarify that tribally chartered corporations are eligible for existing tribal conservation land return tax exemptions. Both drew support from nonprofit and tribal representatives and were sent to suspense. AB 2270 (Arambula) sought to improve farmworker housing access to low-income housing tax credits by adjusting scoring criteria to reflect rural agricultural realities. Supporters said current amenity-based scoring disadvantages projects near farmland; the bill passed the committee 4-1 and was sent to Housing and Community Development. AB 2336 proposed excluding the first $25,000 of overtime pay and pension income from taxation; supporters framed it as affordability relief, while an opponent warned of major General Fund losses and a member raised the lack of an income cap. AB 2205 would reinstate the New Employment Credit to encourage hiring in high-unemployment areas, and AB 2222 would create refundable tax credits for local news organizations hiring journalists; both received strong support from business, labor, and media advocates and were referred to suspense. The committee also heard AB 2186, which would exclude future reparations payments from state income tax, with supporters arguing reparations should not be reduced by taxation; it was sent to suspense. AB 2377 would accelerate depreciation deductions for manufacturing equipment, with a larger benefit in high-need areas, and AB 2641 would extend the sales tax exemption for people repurchasing their own property from pawnbrokers, with the author agreeing to a five-year sunset amendment. AB 2641 passed 4-0 and was sent to Appropriations. After taking up the remaining roll calls for absent members, the committee adjourned.

Transcript Highlights:

• Seeing none, then we will move on to nonprofit low-income housing development.
• The other nonprofit is Catholic Charities of the Diocese of Yakima.
• Nonprofit developers claimed an average of 93 new exemptions each year.
• If it's nonprofit-owned and operated? I'm not sure off the top of my head.
• This preference achieves the inferred objective of providing nonprofit tax relief.

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizens Commission for Performance Measurement of Tax Preferences met on August 6, 2025, with five commissioners present and a quorum. The commission approved the May 7, 2025 meeting minutes and welcomed new commissioner Scott Edwards, who introduced himself. Staff also confirmed the September meeting date had been changed to September 22, 2025 at 10:00 a.m. to accommodate his schedule, and noted that testimony questions for the public hearing would be used at that meeting. JLARC staff then presented preliminary 2025 tax preference performance reviews covering nine preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but do not meet emissions-reduction goals, and recommended continuing the public utility tax and natural gas use tax exemptions while modifying reporting requirements; they also recommended continuing the marine-use LNG sales tax exemption and considering the Department of Revenue work group’s findings. For travel agents and tour operators, staff said the small-beneficiary rate appears to support smaller firms, while the larger-beneficiary rate should be reviewed and both should have clearer objectives and metrics. For nonprofit low-income housing development, staff said the preference is helping produce housing but the current metric does not align well with the objective, data/reporting problems remain, and the legislature should decide whether to continue and possibly modify the exemption, including considering annual renewal. Staff also reviewed the multipurpose senior citizen centers exemption, concluding it meets its objective and recommending continuation, with possible consideration of making it permanent. For disabled veteran adapted housing, staff said the preference has very low uptake despite eligible veterans and recommended continuing it but modifying it in consultation with the Department of Veterans Affairs to improve use. For trade convention attendance, staff said the preference aligns Washington with other states and recommended continuation. For agricultural fertilizer and seed wholesaling, staff said the exemption reduces tax layering and recommended continuation, with clarification on whether it is exempt from expiration/performance-statement requirements. For agricultural crop protection products, staff said the preference met its revenue-growth metric and recommended extending it while considering better metrics or recategorizing it as tax relief. Finally, for energy sales to a silicon smelter, staff said the preferences were unused because the facility was never built and recommended allowing them to expire. The meeting ended with reminders about written testimony and the September public testimony session.