Transcript Highlights:

• This budget shifts more taxes.
• The only program that receives taxes.
• We are committed to the taxes.
• Specific to the Board of Tax and Land Appeals, landowners both involved in property tax, current use,
• </c> Medicaid, which acts as a 5% income tax Medicaid, which acts as a 5% income tax on<04:00:06.319>

Committee: Senate Finance

Transcript Highlights:

• tax increment financing.
• :51.880><c> tax</c><01:15:52.159><c> increment</c> that may utilize tax increment that may utilize tax
• </c> state of Hawai uh to implement that tax state of Hawai uh to implement that tax I'd<01:19:16.239
• Because tax increment financing is basically paid for through their property taxes, right?
• very little taxes to begin they pay very little taxes to begin with<01:23:04.480><c> it's</c><01:23:

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on House Bill 410, the Office of Hawaiian Affairs’ biennium operating budget. OHA asked for a modest increase over its base budget, including $1.2 million to fund 13 new full-time positions for a strategy and implementation team tied to its long-term plan, with emphasis on housing, education, health, and economic resilience. OHA also described a broader effort to work directly with executive branch departments to improve outcomes for Native Hawaiians. Testimony was largely supportive, with several individuals speaking in favor and one testifier expressing strong frustration about Native Hawaiian rights and access to resources. The chair noted there were 38 additional written/supporting testimonies and three in opposition. Members asked about OHA’s funding sources and public land trust revenues; OHA said it is not receiving the full 20 percent share, described a public land trust working group and system issues, and said a related bill would seek funding to begin an inventory. No vote was taken in the portion provided. The committee then considered House Bill 304, which would make the Hawaiian version of a law binding when the law was originally drafted in Hawaiian and later translated into English. The Judiciary supported the bill, saying it reinforces Hawaiian as an official language and looks to the original language for legislative intent. The Attorney General supported the intent but recommended narrowing the bill with a proviso to avoid ambiguities, limiting it to laws originally drafted in Hawaiian that were not later amended, codified, recodified, or reenacted in English. Public testimony was generally supportive, though one speaker raised broader sovereignty concerns. Members questioned how many laws would be affected and whether the proposed amendment would undercut the bill; the Attorney General said the amendment was meant to address uncertainty in interpretation. No final action was reported. Finally, the committee heard House Bill 603, which would direct OHA to administer a Native Hawaiian business marketing program to promote Native Hawaiian-owned businesses through marketing and technical assistance. OHA supported the concept, saying a label or branding program could help consumers identify and support Native Hawaiian-owned businesses, but requested that funding be redirected to a working group to study program design, implementation, enforcement, and long-term viability. The chair noted four supportive testimonies had been received, and a member asked OHA to confirm that its programs serve all Hawaiians, not only those eligible for homelands; OHA said it serves all Hawaiians in the state. The transcript ends before any vote or further action on HB 603.

Transcript Highlights:

• Senate Bill 1023 by Bettencourt relating to the calculation of certain ad valorem tax rates to Local
• Senate Bill 1051 by Hinojosa of Hidalgo relating to the calculation of certain ad valorem tax rates of
• a taxing unit for a year in which a property owner provides notice that the owner intends to appeal
• a taxing unit for a year in which a property owner provides notice that the owner intends to appeal
• the effect of certain tax provisions to Finance.

Bills: SJR36 , SB26 , SJR3 , SJR48 , SJR50 , SJR51 , SCR15 , SCR17 , SB3 , SB5 , SB12 , SB18 , SB1001 , SB1002 , SB1003 , SB1004 , SB1005 , SB1006 , SB1007 , SB1008 , SB1009 , SB1010 , SB1011 , SB1012 , SB1013 , SB1014 , SB1015 , SB1016 , SB1017 , SB1018 , SB1019 , SB1020 , SB1021 , SB1022 , SB1023 , SB1024 , SB1025 , SB1026 , SB1027 , SB1028 , SB1029 , SB1030 , SB1031 , SB1032 , SB1033 , SB1034 , SB1035 , SB1036 , SB1037 , SB1038 , SB1039 , SB1040 , SB1041 , SB1042 , SB1043 , SB1044 , SB1045 , SB1046 , SB1049 , SB1050 , SB1051 , SB1052 , SB1053 , SB1054 , SB1055 , SB1056 , SB1057 , SB1058 , SB1059 , SB1060 , SB1061 , SB1062 , SB1063 , SB1064 , SB1065 , SB1066 , SB1067 , SB1068 , SB1069 , SB1070 , SB1071 , SB1072 , SB1073 , SB1074 , SB1075 , SB1076 , SB1077 , SB1078 , SB1079 , SB1080 , SB1081 , SB1082 , SB1083 , SB1084 , SB1085 , SB1086 , SB1087 , SB1088 , SB1089 , SB1090 , SB1091 , SB1092 , SB1093 , SB1094 , SB1095 , SB1096 , SB1097 , SB1098 , SB1099 , SB1100 , SB1101 , SB1102 , SB1103 , SB1104 , SB1105 , SB1106 , SB1107 , SB1108 , SB1109 , SB1110 , SB1111 , SB1112 , SB1113 , SB1114 , SB1115 , SB1116 , SB1117 , SB1118 , SB1119 , SB1120 , SB1121 , SB1122 , SB1123 , SB1124 , SB1125 , SB1126 , SB1127 , SB1128 , SB1129 , SB1130 , SB1131 , SB1132 , SB1133 , SB1134 , SB1135 , SB1136 , SB1137 , SB1138 , SB1139 , SB1140 , SB1141 , SB1142 , SB1143 , SB1144 , SB1145 , SB1146 , SB1147 , SB1148 , SB1149 , SB1150 , SB1565

Summary: The Senate met briefly and referred a large number of first-reading bills and resolutions to standing committees. The measures covered a wide range of topics, including hemp regulation, dementia research funding, parental rights and public education, municipal library funding, tax and local government issues, criminal justice, health care, education, transportation, natural resources, and election law. Several constitutional resolutions were also referred, including proposals related to the Dementia Prevention and Research Institute of Texas and a severance tax revenue fund. Most of the transcript consists of the reading of bill captions and committee referrals, with no substantive debate or testimony recorded. The listed measures included proposals on school uniforms, charter schools, Medicaid fraud remedies, insurance practices, occupational licensing for people with criminal convictions, water and sewer utility cybersecurity, agricultural protections, public meeting broadcasting, and various local and state governance matters. No votes were taken on the bills in this segment. The only formal action reflected was referral of the bills and resolutions to the appropriate committees, followed by adjournment of the Senate until the next scheduled meeting.

Transcript Highlights:

• Amendment E by Senator Gaynor removes the property tax exemption and the in-lieu tax exemptions in the
• The amendment E by Senator Gaynor removes the property tax exemption and the in lieu tax exemptions in
• that the tax status should remain.
• You know, the legislation already has removed one of the tax—the real estate excise tax preference that
• what it ends up doing is creating a tax shift with the exemptions and we just feel like that the tax

Summary: The committee heard several housing-related bills. Representative Connors testified on two notice-service bills: HB 2452, which would change manufactured/mobile home rent increase notices so they are served like other MHLTA notices rather than by certified mail, and HB 2664, which would remove certified-mail requirements for unlawful detainer and related notices. Connors said the current certified-mail rules are causing notices to go unclaimed and creating unnecessary costs for housing providers, while staff explained the bills would allow service by regular mail in the same manner as other notices. Public testimony on both bills was generally supportive, emphasizing reduced cost and better delivery, though one witness on HB 2452 urged allowing electronic notice options as well. The committee also heard SHB 2269, which clarifies that middle housing in limited areas of more intensive rural development may be served by either a public sewer system or a large on-site sewage system in rural counties, while non-rural counties would still require public sewer service. The sponsor and supporters said the bill resolves ambiguity created by prior legislation and gives county planners more flexibility; questions focused on what kinds of systems and uses would qualify. EHB 1687 was heard next and would expand the housing cooperation law to allow cities and counties to assist social housing public development authorities. Representative Reed and supporters said the bill would give Seattle and potentially other jurisdictions a tool to support permanently public, mixed-income housing with land, infrastructure, and other assistance. In executive session, the committee adopted a due-pass recommendation for EHB 1345 after Senator Gaynor withdrew an amendment that would have removed water-withdrawal and metering requirements for detached ADUs outside urban growth areas. The committee also adopted a striking amendment and moved ESHB 1500 and EHB 1501 forward, both with updated timelines and clarifications related to common-interest-community resale certificates and owner inquiries. Amendments to ESHB 1974 on land bank authorities were rejected, including proposals to remove private negotiation and tax preferences, and the bill was sent to Ways and Means. Finally, SHB 2288 on scissors stairs was advanced without amendment. Later, the committee heard HB 2304, which would expand the 2-10 warranty option to certain four-story stacked-flat condominium projects; testimony from builders, housing advocates, and the Office of Insurance Commissioner supported it as a way to reduce liability costs and increase condo supply. The committee also took testimony on EHB 1687 and HB 2664, and then closed the hearing on SHB 2452 after hearing support from housing providers for easing manufactured-home rent notice service requirements.

Transcript Highlights:

• We're doing the resource administration and some of the tax incentive programs that came through Live
• So we have the missing middle tax exemption, the sales tax rebate.
• So we have the missing middle tax exemption, the sales tax rebate.
• So the average development is getting about $6.5 million of tax dollars.
• program you heard before, and the sales tax refund on building materials.

Committee: Senate Community Affairs

Summary: The Committee on Community Affairs held its first meeting and heard presentations focused on affordable housing implementation under the Live Local Act. Florida Housing Finance Corporation described its role in administering rental and homeownership programs, including SAIL, SHIP, the Low-Income Housing Tax Credit program, disaster recovery efforts, supportive housing, and the Live Local funding and tax incentives. Officials said the first year’s $150 million Live Local rental allocation was fully committed to 23 developments producing 3,171 units with mixed-income set-asides, and they outlined how projects were selected through competitive solicitations tied to statutory priorities such as mixed-use development, publicly owned land, foster youth, rural areas of opportunity, redevelopment, and housing near military installations. They also discussed the tax credit contribution program, the missing-middle property tax exemption, sales tax rebates, and the year-one ad valorem exemption for qualifying affordable projects. Members asked detailed questions about the data and program design, including the use of area median income figures, per-unit subsidy levels, county targeting, tenant relocation during redevelopment, and whether the programs were helping lower-income households. Florida Housing said it uses competitive scoring and data from the Schimberg Center and that redevelopment projects are supposed to include tenant relocation plans. The homeownership portion of the presentation covered the Hometown Heroes program, which provides down payment and closing cost assistance to first-time homebuyers, with exceptions for active-duty military and veterans. Staff said the program has assisted more than 21,000 families and leveraged over $6.5 billion in first mortgages, and members asked about repayment rates, credit scores, and whether participants were staying in homes long enough to show the program was serving intended buyers. The committee then heard from OPAGA on two required Live Local evaluations: affordable housing strategies in other states and affordable housing policies in Florida. OPAGA reported that Florida has a high share of cost-burdened households, with 1.5 million households cost burdened and 1.4 million severely cost burdened, and that Florida’s counties and municipalities reported more than $1.4 billion in affordable housing expenditures in fiscal year 2023-24. The report identified 13 innovative out-of-state programs, with three considered high-potential for Florida implementation, and summarized Florida local government practices such as SHIP-funded homeownership and rental assistance, expedited permitting, mixed-income zoning, rehabilitation programs, and interlocal cooperation. No votes were taken, and the meeting adjourned after the presentations and questions.

Transcript Highlights:

• As Brittany stated, this is not to avoid paying taxes.
• the rich. ...by providing them with yet another tax loophole.
• a sales tax on the tools to renovate and repair their private jets.
• Broadening who gets a tax break is better policy than smaller carve-outs. So, Mr.
• I think that is one of the problems with tax policy these days.

Committee: Senate Senate Finance Committee of Reference

Summary: The Senate Finance Committee considered a lengthy agenda of bills covering consumer lending, insurance coverage, professional scope of practice, property tax administration, digital assets, and aviation tax policy. The committee first approved prior committee amendments, then heard SB 1689 on consumer loan thresholds and rates. After sponsor testimony that the bill modernizes outdated lending caps and lowers rates on larger loans, the committee adopted an amendment but the bill failed on a 3-1 vote, with Senator Epstein arguing the structure would shift costs onto smaller borrowers. The committee then passed several health-related measures. SB 1347, requiring insurance coverage for fertility preservation services for cancer patients, was amended and passed 4-2 after testimony from the sponsor and cancer survivors; Senator Epstein opposed the religious-employer definition. SB 1165, eliminating cost-sharing for diagnostic and supplemental breast exams, passed 5-1 after testimony from Senator Angus and Susan G. Komen, with supporters saying it would reduce barriers to follow-up screening. SB 1212, barring insurers from reimbursing providers differently based on vaccination status, also passed 4-2 despite concerns that it could undermine vaccination incentive programs. Other bills advanced or failed after similar debate. SB 1206, addressing contractor and public adjuster conduct after property losses, passed 5-1 with an amendment and support from State Farm. SB 1291, limiting county reassessment and inspections of agricultural property for four years after a successful appeal, passed 5-1 over assessor opposition and farm group support. SB 1649, creating a digital assets strategic reserve fund, passed 4-2 after debate over civil asset forfeiture and whether crypto should be treated as a strategic reserve. SB 1516, expanding an aviation-related tax exemption to aircraft maintenance and repair property, passed 4-1 amid sharp disagreement over whether it was economic development or a tax break for private jets. SB 1554, changing chiropractic statutory language from x-rays to diagnostic imaging, initially failed 3-3 but was reconsidered and later passed 3-2 after additional discussion about its practical effect.

Transcript Highlights:

• Is this concept of provider taxes?
• A lot of the state directed payments are funded through provider taxes which is a tax on net patient
• And the nursing home provider tax is already set at 6%.
• provider taxes.
• There's been CMS in the past has issued waivers for certain taxes to around this products, uniform tax

Transcript Highlights:

• I'm calling for no tax on tips, no tax on overtime, and no tax on Social Security benefits for our great
• </c><01:23:30.840><c> cuts</c> is for this Congress to pass tax cuts is for this Congress to pass tax
• c> on</c><01:24:32.080><c> Social</c> no tax on overtime and no tax on Social no tax on overtime and
• Whatever they tax us, we will tax them.
• us we will tax tax us we will tax them<01:28:38.960><c> if</c><01:28:39.159><c> they</c><01:28:39.320

Transcript Highlights:

• profits tax to use up the tax credits that have been issued, those tax credits [clears throat] lapse
• business profits tax don't have enough business profits tax to<00:18:42.080><c> use</c><00:18:42.320
• been to use up the tax credits that have been issued,<00:18:44.000><c> those</c><00:18:44.240><c> tax
• </c><00:18:44.480><c> credits</c> issued, those tax credits issued, those tax credits [clears throat]
• </c> tax credit questions. What do you have? tax credit questions. What do you have?

Committee: Senate Ways and Means

Transcript Highlights:

• </c><00:04:26.320><c> dollars</c> to the prohibited uses of tax dollars to the prohibited uses of tax
• Local, state, and federal tax dollars must not be used to advocate for or against any public question
• </c> this statute is that it requires tax this statute is that it requires tax dollars<00:05:11.680><
• </c> there was a large school board tax there was a large school board tax increase<00:27:07.679><c>
• I'm advocating against my own industry there in terms of tax funding.

Summary: The committee met, approved the October 21 minutes, and then took up BR 25 for the 2026 regular session, a proposal to prohibit the use of tax dollars and public resources to advocate for or against ballot questions, including constitutional amendments. Senator Rawlings and the other presenters argued the current law already bars such advocacy but lacks meaningful enforcement, citing the 2024 school choice amendment campaign and other examples where public officials and school systems allegedly used taxpayer-funded resources to influence voters. They said the bill would add civil and criminal penalties, while preserving First Amendment rights for public employees acting in their personal capacities. Much of the discussion focused on whether the bill should be limited to school districts or broadened to cover other public entities, and on how to define terms such as “advocating in impartial terms.” Members raised concerns about possible effects on county and city lobbying through groups like KLC and KCO, on legitimate factual explanations by public officials, and on whether the bill could unintentionally restrict needed representation for local governments. The sponsors said the measure was intended to be narrow, would be vetted further, and would not bar individuals from speaking on their own behalf. Several members suggested revisions. Representative Lockett asked that schools and school employees be specifically named, and suggested separating the lobbying restrictions from the ballot-measure provisions into different bills. Representative Layman questioned the meaning of the bill’s language and whether it would cover factual testimony by officials. Representative Heen asked about a Jefferson County example involving legal fees used to challenge petition signatures; counsel said that situation would likely be allowable under the bill as drafted, though some members thought it should be covered. No final vote was taken on BR 25 during this discussion.

Transcript Highlights:

• And again, I would point out there are no new taxes.
• And again, I would point out there are no new taxes.
• So I guess those aren't new taxes; we're reducing the taxes and shifting them, but yeah... ...taxes,
• So, you know, it is a tax cut in that sense.
• Although the taxes sort of maybe apply to different people, the jet tax was on a certain set of aircraft

Summary: Senate Transportation Committee leaders presented a bipartisan transportation budget package made up of three bills: a supplemental budget, a bond proposal, and a resources bill with technical updates. Chair Mark Olius and Ranking Member Curtis King said the plan is balanced over six years, uses conservative assumptions, and includes no new taxes, relying instead on bonding and existing revenue changes. They emphasized three priorities: preservation and maintenance of highways, bridges, ferries, and flood-damaged infrastructure; safety, including more funding for State Patrol staffing and tribal traffic safety; and job creation through infrastructure investment. The supplemental budget would add about $1.7 billion for preservation over six years, including roughly $1.3 billion for highways, plus $100 million for preservation-related safety improvements. It also includes funding for ferry preservation, flood recovery loans for local transportation infrastructure, Columbia River dredging, the Fairfax Bridge, and State Patrol staffing. Questions from members and reporters focused on how much roadwork the preservation money would cover, why the proposal does not include funding for three additional new ferries, and how federal FEMA aid and ongoing mediation over treaty obligations factored into the budget. The senators said the first three ferries are fully funded, that future vessel purchases will be revisited later, and that flood recovery funds were included now so local governments can repair roads without waiting for federal action. The resources bill would create a mobile driver’s license program for 2028 and dedicate a portion of future sales tax revenue to ferry operations. It also repeals the luxury aircraft tax and replaces it with higher aviation fuel taxes and annual registration fees, which the senators said better avoids unintended consequences for aircraft businesses while still requiring transportation users to contribute. The package also includes studies on hydrogen ferries and updating the in-state shipyard bid credit, and it proposes more efficient ferry maintenance and emergency response capacity at Eagle Harbor. No votes were taken in the transcript, and the senators said they would continue presenting the proposal to caucus members for support.

Transcript Highlights:

• So we're just extending the time frame for projects to be eligible for Avalor tax exemption on certain
• exemption on certain for Avalor tax exemption on certain energy<00:14:34.720><c> projects.
• credits if they helped employers tax credits if they helped contribute<00:15:36.639><c> to</c><00:15
• credit um can be granted to income tax credit um can be granted to an<00:16:09.279><c> employer</c><
• </c> require them to pay the property taxes require them to pay the property taxes on<00:24:48.880><c

Committee: Joint Finance

Transcript Highlights:

• existing tax rate, expanding a tax base, or imposing a surcharge if doing so would cause the imposed
• tax rate to exceed the cap unless the new tax is approved by voters.
• Phoenix and Tucson have justified recent local tax increases by blaming state income tax policy, particularly
• These are hardly austerity budgets, hard hit by state tax cuts.
• These are hardly austerity budgets, hard hit by state tax cuts.

Committee: Senate Senate Government Committee of Reference

Summary: The committee approved the February 4, 2026 minutes and first held SB 1571. It then heard and advanced SB 1745, which would cap transaction privilege/excise tax rates in cities of 550,000 or more at 2.5% per classification unless voters approve a higher rate, with enforcement through the attorney general and state-shared revenue withholding for violations. Supporters argued it would protect taxpayers and restrain large-city tax increases; the bill was amended with a technical change and passed 4-3. The committee also advanced SB 1686, renaming Wesley Bolin Memorial Plaza as the Wesley Bolin and Charlie Kirk Freedom Plaza and authorizing memorial placements for Don Bowles and Charlie Kirk, which passed 4-3. The committee then took up SB 1567 and SB 1435, both aimed at restricting public entities, schools, and libraries from exposing minors to sexually explicit materials and from using public facilities for sexually explicit filming or access. Supporters said the bills were needed to prevent children from being exposed to pornography and to keep taxpayer resources from facilitating such material; opponents, including the ACLU, warned the definitions were broad, could chill speech, and could criminalize librarians and educators for handling literary or educational works. Both bills were amended and passed 4-3. SB 1435 also drew testimony about library access, sex education, and the risk of overbroad enforcement. The committee next considered SB 1433 and SB 1434, which would reorganize Maricopa County boundaries. SB 1433 would move portions of Maricopa County into neighboring counties, while SB 1434 would split Maricopa County into three new counties with a transition board and special elections. Supporters argued Maricopa County had become too large and unmanageable and that smaller counties would improve representation and water and regional governance; opponents said the proposals were costly, disruptive, and politically motivated. Both measures received due pass recommendations, with SB 1433 passing 4-3 and SB 1434 passing 4-3 with one not voting. Finally, the committee approved SCR 1024, requiring legislators to live in their district for one year before election, and SCR 1025, moving the legislative session start to the fourth Monday in January; both resolutions passed unanimously or near-unanimously, and the committee adjourned.

Transcript Highlights:

• [Music] Chair called to order this hearing of the Minnesota Senate Taxes Committee.
• When I hand the gavel to Senator Klein, we're taking up Senate File 2374, which is the omnibus tax bill
• </c><00:03:16.319><c> Uh</c> fiscal um requires the property tax.
• Uh fiscal um requires the property tax.
• So it has to tax credit is ongoing.

Committee: Senate Taxes

Transcript Highlights:

• , and taxed ourselves at 6.5?
• This innovative hospital tax approach. Mr.
• We have to reduce our tax, what we're taxing ourselves to get the federal rate every To a lower rate.
• The difference that that enhanced premium tax credit, the health care tax credit that we are talking
• But if you file taxes together, it counts as your tax household size.

Transcript Highlights:

• credit against corporate income tax, personal income tax, gross receipts tax, and public utility tax
• . ...you have a tax credit against corporate income tax, personal income tax, gross receipts tax, and
• public utility tax, which are really kind of the big taxes that we have at the state level.
• What we have are the corporate income taxes.
• We're not talking about they're getting a pass on paying all taxes, but they're getting a tax credit.

Summary: The committee heard several bills, but much of the meeting focused on House Bill 306, which would require disclosure when a consumer is interacting with a chatbot rather than a human. Sponsor Senator Townsend described it as a consumer protection measure and said the bill is meant to keep pace with rapidly changing AI technology. Committee members and witnesses raised concerns about the bill’s enforcement structure, especially private rights of action and penalties that could apply even without actual consumer harm. The Department of Justice said the bill would apply where the conduct has a Delaware nexus, and that the disclosure requirement is the key consumer protection. Industry witnesses and chambers of commerce opposed the bill as drafted, arguing it would create broad compliance burdens and expose businesses to excessive litigation risk without a harm requirement or clearer safe harbor language. Earlier in the meeting, the committee discussed House Bill 429, which would update Delaware’s step therapy exception process to include biosimilars and interchangeable biologics. Senator Poore and supporters from Highmark and the Department of Insurance said the bill would modernize insurance law, improve access to effective treatments, and reduce costs; they cited national savings from biosimilars and said the bill has agency support. Members asked about Delaware-specific savings, patient switching, and how the process would work, but no vote was taken during the discussion. The committee also heard House Bill 310, which would exclude large data centers from Blue Collar Jobs Act tax credits; the sponsor said the bill is intended to ensure large energy users contribute more to state and local revenues, while supporters and opponents debated competitiveness and community impacts. House Bill 406, on allowing insureds to choose their auto repair shop, and Senate Bill 347, a cleanup bill related to medical debt collection and personal property levies, were also presented without opposition in the hearing. House Bill 253, concerning who may receive letters testamentary or of administration, was described as a cleanup to align statute with existing practice. The committee approved the meeting minutes, but the transcript does not show final votes on the bills discussed.

Transcript Highlights:

• We can have the industry tax itself to assess itself. We are not taxing our residents.
• And yet here you are suggesting to impose yet more taxes, more taxes on businesses already hit very hard
• and other taxes.
• She then asked whether the industry group is allowed to directly tax whoever is paying the taxes.
• Not only are all the tourist taxes, but also the sky high sales taxes impact tourism.

Bills: HB2278 , HB2325 , HB2481 , HB2503

Committee: House Technology, Economic Development, & Veterans

Keywords: tourism, promotion areas, state funding, economic development, community engagement, tourism promotion, Washington Tourism Marketing Authority, assessment, self-supported assessment, visitor economy, destination marketing, statewide marketing, lodging, hotels, restaurants, travel services, attractions, recreation, retail, beverage producers

Transcript Highlights:

• , Child Tax Credit, and Pell Grants.
• Under the Biden administration, taxes on oil and gas drilling were increased.
• At our next meeting, we're going to be dealing with all the tax issues.
• Tax changes that, again, are only going to be temporary.
• tax cut beneficiaries, are actually willing to continue to take risks.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• </c><00:04:36.479><c> For</c> Working Families Tax Cut Act. For Working Families Tax Cut Act.
• </c> hospital tax at 4.2%. hospital tax at 4.2%.
• So, your 4.2 tax is still down to 5.5%. So, your 4.2 tax is still in<00:25:38.960><c> place.
• </c> threshold for each provider tax. Okay. threshold for each provider tax. Okay.
• </c><00:26:09.760><c> And</c> existing provider tax in place. And existing provider tax in place.

Summary: The committee met and approved the minutes from its August 27 meeting. It then received a presentation from Katherine Castanza of the National Conference of State Legislators on the Medicaid provisions in the 2025 budget reconciliation bill, referred to as HR1. She explained that the bill is estimated by CBO to save the federal government $911 billion over 10 years, with more than 20 Medicaid-specific provisions, most of the savings concentrated in five policies and largely backloaded into 2030-2034. She emphasized that the bill’s effects will vary by state, but that expansion states and hospitals are expected to be most affected, in part because of changes to eligibility, provider taxes, and state-directed payments. Castanza highlighted several new funding and flexibility provisions, including a $50 billion Rural Health Transformation Fund for 2026-2030 and a new home- and community-based services waiver option effective July 1, 2028, with $100 million in grants in fiscal year 2027. She also outlined major eligibility changes for Medicaid expansion adults: work or community engagement requirements effective January 1, 2027; twice-yearly redeterminations for the expansion population effective the same date; and new cost sharing for certain expansion adults effective October 1, 2028. She noted that Kentucky, as an expansion state, would be subject to these changes and that state agencies would face significant implementation demands, especially because federal guidance and timelines are tight. A substantial portion of the presentation focused on financing changes. Castanza described new limits on provider taxes, including a 0% safe harbor for new taxes and a phased reduction for existing taxes in expansion states beginning in 2028, while nursing facilities and intermediate care facilities are exempt from the reduction if already taxed. She also explained that state-directed payments will be capped and phased down over time, with existing arrangements grandfathered only briefly; she said Kentucky has 11 approved state-directed payments and could see significant fiscal effects. She added that the bill also bars Medicaid payments to Planned Parenthood or similarly situated providers for one year, changes immigrant eligibility rules effective October 1, 2026, lowers the federal match for certain emergency services, and expands the scope of the federal erroneous payment recoupment provision effective October 1, 2029. Throughout, she stressed that federal savings may translate into state cost shifts and that implementation timing will be critical.

Transcript Highlights:

• We can have the industry tax itself to assess itself. We are not taxing our residents.
• and other taxes such as these.
• Or is the industry group being allowed to directly tax whomever is paying the taxes?
• Or is the industry group being allowed to directly tax whomever is paying the taxes?
• Not only are all the tourist taxes, but also the sky-high sales taxes impact tourism.

Summary: The committee first heard House Bill 2325, which would create a tourism self-supported assessment program to fund statewide tourism promotion. Staff explained that the bill would let the Washington Tourism Marketing Authority develop and administer an assessment program overseen by a 10-member ratepayer board, subject to a referendum of affected businesses, and would add a public records exemption for business financial and commercial information. The prime sponsor and supporters from State of Washington Tourism, the hospitality industry, the Port of Seattle, breweries, and wine interests argued that Washington is underinvesting in tourism compared with other states and that an industry-led assessment would provide sustainable, competitive funding. Opposition testimony from a taxpayer group objected to new assessments and unelected authority over tax-like charges. No vote was taken on the bill in the hearing. The committee then heard House Bill 2481, which would prohibit surveillance-based price discrimination and surge pricing for certain retail goods, require clear price posting, and temporarily bar electronic shelf labels in larger grocery stores while Commerce studies their effects. The sponsor said the bill is intended to ensure that customers in the same store pay the same price and to prevent AI-driven pricing based on personal data. Labor, privacy, and consumer advocates supported the bill, citing concerns about hidden price discrimination, worker stress, and consumer harm. Grocery and retail groups, along with an ESL manufacturer and a tech association, opposed the bill as written, warning that the definitions were too broad and could interfere with loyalty programs, discounts, inventory management, and electronic shelf label systems; several said they were working with the sponsor on amendments. The chair indicated amendments were expected and asked stakeholders to submit language soon, but no vote occurred. Finally, the committee opened House Bill 2503, which would require developers of generative AI systems to post high-level documentation about training data before public release and make violations a Consumer Protection Act issue. The sponsor described the bill as a transparency measure meant to function like an ingredients label for AI, helping consumers, researchers, and creators understand what goes into a model. Supporters from TechNet and Chamber of Progress said they generally backed the concept but wanted the bill aligned more closely with California’s recent law, especially on enforcement and the private right of action. Members raised questions about trade secrets, applicability to large versus small developers, and whether the bill could affect medical or other specialized AI uses; the sponsor said amendments were anticipated and that the bill was still early in the process. The hearing on HB 2503 then moved to public testimony.