Transcript Highlights:

• CDTFA administers state and local sales and use taxes, among several other tax and fee programs.
• To date, there are zero taxpayers registered for that tax.
• Number one, they may not have an obligation to collect the tax.
• The Wayfair decision did institute... ...not have an obligation to collect the tax.
• Kate Bell, on behalf of the tax consulting firm Ryan LLC, and in strong support. Thank you.

Summary: The Senate Committee on Rules met with quorum and first approved several governor’s appointments not required to appear, including Deborah Garns, Davis Rabbit, Cindy Silva, Vincent Wells, and Lee Herrick as California Poet Laureate, all by 5-0 votes. The committee also approved reference of bills to committees and floor acknowledgments, each by 5-0 vote, before moving to appointments required to appear. Trista Gonzalez, nominated to lead the Department of Tax and Fee Administration, testified about her 33-year career in tax administration and emphasized taxpayer service, efficiency, and team culture. Members asked about responsiveness to legislators, the lithium extraction tax, online sales tax compliance after Wayfair, and enforcement against illicit cigarette, tobacco, and cannabis activity. Gonzalez said the department is ready for the lithium tax, works to register businesses meeting the $500,000 threshold, and coordinates with law enforcement on inspections and seizures. Public commenters from Ryan LLC and the California Society of Enrolled Agents supported her confirmation. The committee voted 5-0 to send her nomination to the full Senate. Aaron McGuire, nominated as executive director of the Board of State and Community Corrections, described his experience at the agency and its expanded responsibilities, including annual detention facility inspections, major grant administration, and the new in-custody death review division. Senators questioned him about grant oversight, fraud prevention, public access to audits, implementation of SB 519, and conditions in local detention facilities, especially in Los Angeles County juvenile facilities. McGuire said the board uses screening, reporting, site visits, audits, and recovery actions to monitor grants, and that trailer bill language has clarified access to records for in-custody death reviews. He also said staffing shortages remain a major issue in Los Angeles juvenile facilities and that the board continues to work with the courts and local officials. Supporters from Amity Foundation, Health Right 360, Westcare, and Giffords testified in favor, and the committee approved his nomination 5-0 to advance to the full Senate.

Transcript Highlights:

• Section 1 is an income tax reduction.
• We've been reducing our income tax, and I mean, we're giving a lot of property tax relief.
• And income tax, to me, is probably the least important.
• And also, I think there's a value... ...tax levels, you know.
• Actually, the income tax conversation kind of...

Committee: House Appropriations

Summary: The committee met to consider four policy bills and discussed a possible later return to handle DOCR amendments and budget work. They first took up HB 1327, funding for the Agricultural Diversification and Development Fund, and adopted an amendment striking language that would have capped up to $10 million for agricultural infrastructure grants to political subdivisions. The bill was then passed as amended on a 22-0 vote, with Rep. Belts assigned as carrier. Next, the committee considered SB 2256, the Research Technology Park grant. Rep. Stemen offered an amendment reducing the appropriation amounts from the original figures to $10 million and $5 million levels, citing available funding; the amendment passed 19-3. The bill then passed as amended 22-0, and Rep. Stemen agreed to carry it. The committee then debated SB 2093, which combined a retired peace officers/surviving spouses benefit with an added income tax reduction. Rep. Munson moved to remove the income tax portion, and the committee agreed 17-4. The remaining peace officer benefit portion was then passed as amended 21-0, with Rep. Kempenich carrying it. Finally, the committee considered HB 2160, changing the state health plan from grandfathered to non-grandfathered status. Members discussed cost shifting, employee retention, out-of-pocket exposure, and the updated fiscal note; the committee adopted an amendment updating the appropriation figures to match the current PERS/Deloitte analysis, then passed the bill as amended 15-7-1, with Rep. Worry originally the carrier.

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:

• The bill begins with property taxes levied for collection in 2027 and is not subject to tax preference
• use valuation for property tax purposes, regardless of sales price.
• However, state law applies the original 1.28% tax rate.
• use valuation for property tax purposes, regardless of sales price.
• Substitute House Bill 2089 relates to the first mortgage B&O tax deduction.

Summary: The committee first heard a briefing on the proposed Senate capital budget, Substitute Senate Bill 6003, which would spend about $723 million total using debt-limit bonds, Climate Commitment Act funds, and other cash resources. Staff described major investments in housing and homelessness, human services, local infrastructure, flood response, water conservation and clean energy, K-12 school modernization and seismic work, and higher education projects. Members then took public testimony from a wide range of advocates and project sponsors, most of whom urged the Senate to preserve or increase funding for specific projects in the final budget, including affordable housing, permanent supportive housing, child care facilities, food banks, behavioral health and substance use treatment centers, tribal courthouse relocation, school modernization, community colleges, university projects, floodplain restoration, community forests, and local civic or cultural facilities. Several witnesses also asked the Senate to match or approach House funding levels on items such as the Housing Trust Fund, permanent supportive housing, the Community Forest Program, Floodplains by Design, and CCA-supported clean energy and water projects. The chair noted that amendments to the capital budget were due the next day at noon. The committee then received a briefing on Engrossed Second Substitute House Bill 2251, which would restructure Climate Commitment Act accounts by repealing three existing accounts and replacing them with two new accounts: a CCA operating account and a CCA capital account. Staff explained that the bill would preserve most existing uses while changing revenue distribution formulas, capping Ecology administrative costs, expanding allowable uses for EV-related costs, housing, and carbon capture/sequestration, and changing reporting and tribal consultation provisions. The bill also shifts some reporting from annual to biannual and modifies the thresholds for tribal-supported and overburdened-community investments. The fiscal note was described as relatively small, with the main impact being the revised revenue allocation structure. Public testimony on the CCA bill was mixed. Supporters, including the League of Women Voters, said the restructuring better aligns spending with the intent of the CCA and could improve investments for tribes and overburdened communities. Critics, including the Washington Policy Center, argued the bill still lacks strong requirements to ensure CCA spending is effective and objected to reducing the frequency of the state’s climate-spending report. No votes were taken during the portion of the meeting provided.

Transcript Highlights:

• ...taxes.
• It was funded by tobacco tax increases.
• And where the next tax is smaller, there would be less MCO tax revenue.
• And where the next tax to be smaller, there would be less MCO tax revenue.
• The current MCO tax: 99% of the revenue comes from a tax on Medi-Cal enrollment; just less than 1% of

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• 53.520><c> workers</c> from state income tax, workers from state income tax, workers compensation<00:
• It's a tax and That's what this is. It's a tax and insurance<00:25:01.040><c> dodge.
• It is tax avoidance. And it is a theft. It is tax avoidance.
• </c> with taxes. with taxes.
• It means community tax bases.

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Summary: The Workforce, Labor, and Economic Development Finance and Policy Committee met to discuss worker misclassification, beginning with approval of the March 4, 2026 minutes and a note that a late-posted bill would not be heard at this time. Chair Pinto opened the hearing by framing misclassification as timely and invited Lea Takapu of the Attorney General’s office to explain the issue. Takapu described misclassification as labeling workers as independent contractors when they are really employees, which can deprive workers of minimum wage, overtime, unemployment insurance, workers’ compensation, and other protections while also reducing tax revenue. She said the Attorney General’s office and the MEAP partnership have been working on the issue and cited estimates that Minnesota workers lose billions annually and the state loses hundreds of millions to over a billion dollars in revenue, while noting that legitimate independent contracting is not the target. Members questioned how the committee could rely on estimates when the exact number of misclassified workers is unknown. Takapu responded that the figures were based on studies and complaint data, and that underground or undocumented work makes exact counts difficult. Chair Pinto noted the numbers were estimates and referenced a 2024 Legislative Auditor finding that Minnesota lacked an adequate, coordinated approach to proper worker classification, while saying progress had been made since then. Several industry witnesses then testified in support of stronger enforcement. Kevin Pranis of LiUNA said misclassification remains rampant in parts of construction, especially drywall, stucco, thin stone, and broadband installation, and argued it is tax, unemployment insurance, and workers’ compensation fraud that harms law-abiding contractors and taxpayers. Matt Wollers of Braxton and Sons said his company loses bids to competitors that misclassify workers, creating a labor-cost advantage of 30% or more, and asked for meaningful enforcement rather than new legislation, including regular unannounced jobsite visits. Jesse Madison of Purple Tally Productions said misclassification is anti-competition and described examples from live events and entertainment, urging front-end checks on workers’ compensation, unemployment coverage, and W-2 versus 1099 status before work begins. The next testifier, Ben Ballou of the Minnesota Nurses Association, began his remarks as the transcript ended.

Transcript Highlights:

• We have something called the RATSY tax credit. We love acronyms.
• But that is a statutory tax credit of $4,800 per apprentice.
• But that is a statutory tax credit of $4,800 per apprentice, which is, you know, a nice tax credit.
• It's a refundable tax credit.
• We just revamped our RATSI tax credit application processes here.

Summary: The subcommittee opened with roll call and approved the January minutes. Members then heard from Undersecretary of Labor and Workforce Development Josh Cutler, who gave an update on the Healey-Driscoll administration’s apprenticeship efforts and emphasized apprenticeship as an earn-while-you-learn model that can help address workforce shortages while including people with disabilities. He described growth in apprenticeships across sectors such as banking, bio, early education, health care, and human services, and noted recent milestones including the state’s 10,000th registered apprenticeship, expanded tax credits, reduced program fees, added apprenticeship liaisons, and Grow grants to support program development. Committee members focused on how apprenticeship could be adapted for human services and disability-related jobs, including early education, direct care, PCA work, sterile processing, and related health occupations. They asked about funding structures, employer participation, community college involvement, and how to make programs accessible to people with disabilities. Cutler explained that apprenticeship programs are employer-designed but must meet core requirements such as paid employment, at least 2,000 hours of on-the-job learning, related technical instruction, mentorship, and progressive wages. He said the state can support programs through the registered apprenticeship tax credit, which he said is $4,800 per apprentice and can be stacked with the disability employment tax credit, and through Grow grants, which were most recently awarded at about $2.1 million statewide. Members and Cutler discussed using intermediaries such as trade associations, nonprofits, and disability organizations to help employers set up programs and navigate incentives. He said the commission could be useful as a convener and suggested a targeted panel or information session with apprenticeship liaisons, employers, and existing sponsors to identify a few specific occupations and build a proof of concept. The meeting ended with agreement to follow up offline on potential partner employers, including Eastern Bank, and on possible next steps for a focused panel or pilot opportunities.

Transcript Highlights:

• of certain county assessor chief provisions, to the top property tax assessments, change to the line
• extinguishing a certain delinquent tax, change provision that improving sales, certain sales and use
• tax eliminate and feed, and change certain application provision related to mobile homes.
• , and also on each succeeding $500, $0.00, commission shall be taxed to the parties against whom the
• The tax shall be collected as the original tax, and mileage shall be paid at the county treasurer with

Bills: LB737 , LB753 , LB788 , LB913 , LB1055 , LB1195 , LB1216 , LB1256 , LB429 , LB721 , LB722 , LB727 , LB743 , LB745 , LB749 , LB778 , LB787 , LB365A , LB823 , LB900 , LB903 , LB940 , LB954 , LB1127 , LB1127A , LB1205 , LB1240 , LR293 , LR296 , LR422 , LR505 , LR507

Transcript Highlights:

• And then we have this 10.75% excise tax on cannabis...
• And then we have this 10.75% excise tax on cannabis.
• Cannabis is also subject to the 6.25% sales tax that we, the sales tax we pay on a majority of our purchases
• in state income taxes, and has been the conduit for over $8.5 million in local taxes and fees to the
• They'd rather pay the 17% tax at the dispensary.

Bills: H5005

Committee: Joint Special Joint Committee on Initiative Petitions

Keywords: environment, water conservation, natural resources, public funding, environmental justice

Summary: The Special Joint Committee on Initiative Petitions held a hearing on Initiative Petition 25-10 / House Bill 5002, “An act to restore a sensible marijuana policy,” which would repeal Massachusetts’ adult-use cannabis legalization framework. The chair explained the Article 48 initiative process and noted that, if the Legislature does not enact the measure as written, additional signatures would be needed for it to qualify for the 2026 ballot. The committee heard testimony from an expert, proponents of the petition, opponents, and members of the public, and accepted written testimony through March 27 at 5 p.m. Jessica Trow of MassBudget testified first, focusing on cannabis revenue and spending in Massachusetts. She said legalization has generated nearly $2 billion for the Commonwealth and municipalities since FY 2018, including excise tax, sales tax, local option taxes, fees, and community impact fees. She described how revenues are distributed to public health, the Cannabis Control Commission’s social equity efforts, the cannabis social equity fund, the MBTA, the School Building Authority, the general fund, and local budgets, and argued the industry has supported social equity and community investments. Opponents of the petition argued that repeal would harm public health, consumer safety, jobs, tax revenue, and social equity programs. Wendy Wakeman, speaking for the ballot committee, said legalization has increased potency, addiction, and mental health concerns, and that the state lacks sufficient data on harms. In contrast, business owners, clinicians, and advocates including Caroline Pino, Kristen Rogers, Drudus Ledbetter, Armani White, Lucas Thayer, and Jeff Rawson said the regulated market provides tested products, jobs, tax revenue, and pathways for people harmed by prohibition, while repeal would push consumers back to the illicit market and undermine equity goals. Committee members questioned witnesses about the evidence base, the role of out-of-state funding, the petition’s impact on existing businesses, and whether narrower regulatory fixes might address concerns instead of repeal. No vote was taken; the hearing was closed after testimony ended.

Transcript Highlights:

• We have something called the RATSY tax credit. We love acronyms.
• But that is a statutory tax credit of $4,800 per apprentice.
• But that is a statutory tax credit of $4,800 per apprentice, which is, you know, a nice tax credit.
• It's a refundable tax credit.
• We just revamped our RATSI tax credit application processes here.

Summary: The subcommittee met to approve the January minutes and then heard an update from Undersecretary of Labor and Workforce Development Josh Cutler on apprenticeship expansion in Massachusetts. Cutler described the Healey-Driscoll administration’s efforts to grow apprenticeships beyond the building trades into sectors such as banking, bio, early education, health care, and human services, emphasizing that apprenticeship is an earn-while-you-learn model with strong retention and career advancement. He noted recent milestones and supports, including the 10,000th registered apprenticeship, expanded tax credits, reduced program fees, added apprenticeship liaisons, and Grow grants to help employers launch programs. He also said the administration is open to using grants, incentives, and convening power to encourage more human services and disability-focused apprenticeships. Members focused on how these models could work for disability and human services providers, especially in lower-wage fields like early education and direct care. They raised examples such as sterile processing, PCA services, mental health, brain injury, independent living centers, and programs involving community colleges, Bridgewater State, and vocational schools. Cutler explained that apprentices are W-2 employees, programs must include at least 2,000 hours of on-the-job learning, 150 hours of related instruction, a mentor relationship, and progressive wages, but employers largely design the program themselves. He said intermediaries such as the Massachusetts Bankers Association or disability organizations can help employers navigate the process and that the state can support these efforts through grants and tax credits. The discussion also covered employer outreach, the role of community colleges, and how to make careers in disability services more visible and valued. Cutler said the registered apprenticeship tax credit is $4,800 per apprentice, can be claimed twice for longer apprenticeships, and is stackable with the disability employment tax credit. Members suggested hosting a targeted virtual panel with apprenticeship liaisons, employers, and intermediaries to identify a few priority occupations and develop concrete next steps. The meeting ended with agreement to follow up offline on specific opportunities and potential partners, including Eastern Bank and existing apprenticeship programs in health care and related fields.

Transcript Highlights:

• CDTFA administers state and local sales and use taxes, among several other tax and fee programs.
• , among several other tax and fee programs.
• To date, there are zero taxpayers registered for that tax. Zero taxpayers registered for that tax.
• Number one, they may not have an obligation to collect the tax.
• The Wayfair decision did institute... ...not have an obligation to collect the tax.

Committee: Senate Rules

Summary: The Senate Committee on Rules convened with quorum and first approved several governor’s appointments not required to appear, including Deborah Garns, Davis Rabbit, Cindy Silva, Vincent Wells, and Lee Herrick as California Poet Laureate, all by 5-0 votes. The committee also approved reference of bills to committees and floor acknowledgments, each by unanimous 5-0 votes. The committee then heard testimony on the appointment of Trista Gonzalez as Director of the Department of Tax and Fee Administration. Gonzalez described her 33-year career in tax administration, emphasized taxpayer service, efficient collection, and support for small businesses, and answered questions about lithium extraction tax registration, online sales tax enforcement under Wayfair and AB 147, and CDTFA’s work with illicit cigarette, tobacco, and cannabis activity. Members praised her responsiveness to legislators and constituents, and public commenters from Ryan LLC and the California Society of Enrolled Agents supported her confirmation. The committee voted 5-0 to send her nomination to the full Senate. The committee also heard from Aaron McGuire, executive director of the Board of State and Community Corrections, on his confirmation. He discussed the board’s expanded responsibilities, including annual detention facility inspections, grant administration, and the new in-custody death review division. Members questioned him about grant oversight, audits, implementation of SB 519, access to local agency records, standards for detention facilities, and conditions in Los Angeles County juvenile facilities. McGuire said the board is using inspections, technical assistance, and public reporting to improve compliance and transparency, and that additional trailer bill language clarified access to records. Public support came from nonprofit reentry providers and Giffords. The committee approved his nomination 5-0, and then adjourned.

Transcript Highlights:

• taxes its high-wage earners.
• Who are the high-tax states?
• And by the way, it's not just in our tax code, in our tax policy, in more ways than one.
• Look, I like the word tax. Housing is just one component.
• We've created the young child tax credit, the foster youth tax credit, new programs we created together

Transcript Highlights:

• Yes, the state does get taxes on this. Okay. What type of sales...
• What type of sales taxes or property taxes? Sales taxes or property taxes off this? Okay.
• We did a calculation of the amount of tax that was raised at our effective tax rate, which is 98 cents
• The effective tax rate in this bill is 35 cents.
• rate where it is and not mess with the tax rate whatsoever?

Bills: SB90 , SB255 , SB268

Committee: House Tourism

Transcript Highlights:

• This is to remove the sales tax exemption, and I want to talk about this a little bit.
• But you know, you look at the tax incidence studies that whether it's tax on a corporation, tax on utility
• , the tax incidence studies talk that 95% of those costs get passed on to you and me, regular people.
• But you know, you look at the tax incidence studies that whether it's tax on a corporation, tax on utility
• , the tax incidence studies talk that 95% of those costs get passed on to you and me, regular people.

Committee: House Energy Finance and Policy

Transcript Highlights:

• raise taxes in our committee.
• raise taxes in our committee.
• raise taxes in our committee.
• raise taxes in our committee.
• raise taxes in our committee.

Bills: HF1049

Committee: House Taxes

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:

• . taxes. taxes.
• </c> tax credit program and the EFA program. tax credit program and the EFA program.
• or a tax exemption?
• As an credit or a tax exemption?
• impact in an estimate for raising taxes under a local tax cap.

Committee: House Municipal and County Government

Summary: The committee convened for a day of public hearings on nine bills, with plans to later execute several early bills and possibly additional measures under House Rule 44. Chair Diane Pauer outlined time limits for sponsors and testimony, announced a lunch break around noon, and noted substitute members would be arriving later. The first hearing was on House Bill 1107, which would allow municipal budget committees to have one to three alternate members. Representative Valon, the prime sponsor, said the bill was intended to help towns like Epping deal with quorum problems during the compressed budget season and noted that alternates are common on other local boards. The New Hampshire Municipal Association testified in support, saying the bill would increase flexibility and help fill seats. Committee members raised concerns about whether alternates should be elected, how they would be selected, whether they would be sufficiently informed to vote, and whether the bill’s one-year term language and rescission provisions were clear. The sponsor and NHMA said the process would be consistent with other local boards, that alternates would typically be appointed after elections, and that they would follow up on possible statutory clarification. The hearing closed with six remote supporters, one paper supporter, and no opposition reported. The committee then heard House Bill 1118, sponsored by Representative Colby, which would raise the daily amount municipal employees may hold before remitting funds to the treasurer from the current $1,500 limit to $3,500. Colby said the existing thresholds are outdated, have not been updated in about 20 years, and create burdens for smaller towns that must make frequent bank deposits, sometimes far from town offices. She said the bill would improve efficiency and allow staff to focus more on serving residents, while still allowing municipalities to keep lower limits if they choose. Members asked about how the remittance process works in practice, what amounts municipalities typically collect, and whether the change reflected a broader trend of updating cash-handling thresholds. The sponsor explained that the bill only changes the dollar thresholds in the relevant statutes and does not require municipalities to adopt the higher limit. The transcript cuts off before any final action on HB 1118 is reported.

Transcript Highlights:

• </c> Minnesota is the only state that taxes Minnesota is the only state that taxes all<00:02:54.800><
• </c> only state that taxes chiropractors. only state that taxes chiropractors.
• </c> have to pay the tax. Okay. have to pay the tax. Okay.
• </c> tax decline with the volume of patients? tax decline with the volume of patients?
• </c> call it the sick tax, but it isn't. call it the sick tax, but it isn't.

Summary: The committee first approved the March 11, 2026 minutes, then heard House File 4048, which would exempt chiropractors from Minnesota’s provider tax if they are no longer eligible to provide chiropractic benefits under Medicaid/MinnesotaCare. Representative Robbins said the bill corrects an unfair situation because chiropractors still pay the tax even though the benefit was eliminated. Testifiers from the Minnesota Chiropractic Association and a longtime chiropractor supported the bill, arguing that most chiropractors are small-business owners and should not pay a tax for services they can no longer provide. Several members said they supported restoring chiropractic coverage instead of changing the tax, and there was discussion about whether the tax applies to all providers and whether it is effectively passed on to patients. The committee adopted a motion to recommend HF 4048 to the Committee on Taxes. The committee then took up House File 3893, as amended, a bill to restrict artificial intelligence from engaging in psychotherapy or counseling with humans. The author and supporters said the bill is intended to prevent AI chatbots from posing as therapists or counseling vulnerable people, citing reports of suicides and other harms linked to chatbot interactions. The A2 amendment was adopted; the author said it reflected stakeholder concerns and added informed-consent language. Testifiers in support, including a psychologist and a suicide-prevention nonprofit leader, urged strong safeguards and said AI should not replace licensed professionals in crisis settings. Other testimony raised concerns about overbreadth and unintended effects. TechNet and a rural mental health provider said the bill should be narrowed so it applies to clinical therapy rather than wellness or educational tools, and should allow supervised AI uses such as transcription and administrative support. Members discussed rural access, existing licensing-board authority, privacy laws, and whether the bill should target AI companies directly rather than licensed clinicians. The transcript ends during continued discussion of HF 3893, with no final committee action shown in the excerpt.

Transcript Highlights:

• Both would receive tax benefits from contributing to that plan.
• I, too, am concerned about the 100% tax-free for the employer and 100% tax-free for the employee.
• So it is taxed.
• preparers and for the Tax Commission.
• Good Senators, this bill has to do with wind and geothermal energy tax revenue and local taxing districts

Transcript Highlights:

• The tax anticipation notes have a seven-year maturity.
• What's the current tax rate in El Paso?
• So instead of burdening the taxpayers with a general obligation tax or ad valorem tax, they're using
• Decreasing the tax rate, UMC El Paso accounts for about eight percent of the El Paso tax dollar.
• that buys those 4% Low-Income Housing Tax Credits.

Bills: HB1453 , HB1718 , HB2043 , HB2207 , HB2798

Committee: House Pensions, Investments & Financial Services

Keywords: local governments, anticipation notes, certificates of obligation, public works, flood control, financial management, local government, municipal financing, private activity bonds, closing definition, real estate finance, bond issuance, government regulation, bond election, general obligation bonds, GO bonds, political subdivision, city bonds, county bonds, school district bonds