Transcript Highlights:

• So section 4 requires coverage for low-income adults up to 133% of the federal poverty level, mirroring
• So if folks' income levels increase, would that also be a way to reduce the number of individuals who
• And there's a limited way in which we can manage those funds.
• We do have a limited amount of money that we can spend.
• And what That would mean limited services somewhere under the current program.

Bills: HB4440 , HJR1067 , HJR1087 , HJR1089

Committee: Senate Rules

Transcript Highlights:

• is going back on a promise made to those hardworking people, many of whom rely on this for their income
• It's so narrowly focused that the income limits on this bill disqualify every single one of us in this
• They serve everyone, no matter their insurance, income, or immigration status.
• This would not count toward the 2% combined rate limit for local taxes.
• But maybe we should limit the people who are able to use CEQA.

Summary: The Assembly met after a quorum call, prayer, and Pledge of Allegiance, then moved through a long Daily File with several guest introductions and floor speeches. Members recognized visiting student leaders, championship football teams from Tuolumne County, Alpha Kappa Alpha members at their Capitol day, and later a descendant of Wong Kim Ark. The chamber also adopted a procedural motion allowing certain members to host guests in the rear of the chamber. Among the major policy items, AB 578 on food delivery platform refund practices passed 47-2, AB 344 on successor beer manufacturer definitions passed 61-0, AB 454 to make California’s migratory bird protections permanent passed 55-12 on the urgency clause, AB 482 updating the Table Grape Commission passed 64-1, AB 1237 to support transit access for 2026 FIFA World Cup ticket holders passed 56-15 on the urgency clause, AB 738 on wildfire rebuild solar exemptions passed 42-2, AB 1460 on 340B pharmacy access for clinics passed 41-5, AB 750 on homeless shelter oversight passed 49-1, AB 1061 on housing in historic districts passed 41-13, AB 1523 on expanding mandatory mediation thresholds passed 65-0, and AB 316 on AI-related civil liability passed 56-0. AB 761 authorizing the Monterey-Salinas Transit District to seek a sales tax ballot measure passed 47-12. The chamber also adopted several resolutions. AJR 3 urging protection of Social Security, Medicare, and Medicaid passed 53-2 after extensive debate that included criticism of federal cuts and counterarguments focused on state Medi-Cal policy and budget decisions. ACR 65 proclaiming California Tourism Month was adopted by voice vote after coauthors were added, and ACR 62 recognizing California Nonprofits Day was also adopted by voice vote with 65 coauthors. AJR 5 affirming birthright citizenship and opposing efforts to end it passed 58-1 after a lengthy, highly partisan debate centered on the 14th Amendment and the Wong Kim Ark precedent. The session also included passage of AB 571, a CEQA exemption for the Southern California Veterans Cemetery at Gypsum Canyon, which was presented as a long-running bipartisan effort to create a final resting place for Orange County veterans.

Transcript Highlights:

• And this bill allows the providers to share limited information with law enforcement to— ...allows it
• And this bill allows the providers to share limited information with law enforcement to assist with crime
• Oklahoma taxpayers are able to receive a credit on their income tax return for the fees they pay.
• For example, income tax: whatever you make on your income, you pay a percentage of that.
• The only thing that ended was in 2017: the income tax credit ended for Oklahomans to be able to receive

Bills: SB1936 , SB1612 , SB1543 , SB1260 , SB1988 , SB1859 , SB2041 , SB1257

Committee: Senate Public Safety

Summary: The Public Safety Committee took up several criminal justice and public safety measures. Senate Bill 1936, as amended, increased penalties for impersonating law enforcement from a misdemeanor to a felony and expanded seizure provisions; amendments added federal law enforcement agents and state troopers to the covered officers, and the bill passed unanimously. Senate Bill 1612, requested by Tulsa police, would require limited reporting and sharing of certain injury-related information and hospital video/photo evidence with law enforcement to aid violent-crime investigations; members raised HIPAA, scope, and criminalization concerns, but the bill passed 5-2. Senate Bill 1543 would aggregate multiple DUI offenses within one year into a single felony case; after questions about sentencing, municipal charges, and deterrence, it passed 6-2. Senate Bill 1260 would require child sex traffickers and human traffickers to serve 100% of their sentences without parole or earned credits, and it passed 6-2. The committee also considered Senate Bill 1988, which would increase wire-transfer fees on funds sent outside the United States and restore an income-tax credit for Oklahoma filers; members questioned whether it functioned as a tax, its impact on lower-income senders and service members, and its connection to drug trafficking. The bill failed on a 4-4 vote. Senate Bill 1859, creating an OSBI cybercrime and fraud unit with an estimated $3 million fiscal impact, passed unanimously after testimony that cyber and cryptocurrency fraud are growing and often harm elderly victims. Senate Bill 2041 would make a third possession offense for methamphetamine, fentanyl, or cocaine a felony, with supporters saying it would push offenders toward drug court and opponents warning it would increase incarceration; it passed 6-2. Finally, Senate Bill 1257 would classify THC as a Schedule I drug to align with federal law and close trafficking loopholes, and it passed unanimously. Senate Bill 1584 was laid over at the author’s request.

Transcript Highlights:

• And the Juvenile Corrections Endowment Income Fund.
• The Juvenile Corrections Endowment Income Fund consists of all money distributed from the charitable
• Then there is a $939,000 request from the State Juvenile Corrections Center Endowment Income Fund for
• There is a $1,035,800 request, also from the State Juvenile Corrections Center Endowment Income Fund.
• limited staff to provide that service for companies.

Summary: The committee first reviewed the Department of Juvenile Corrections budget. Legislative Services analyst Noah Peterson outlined the agency’s funding sources, staffing, recent expenditure patterns, and several FY 2026 and FY 2027 budget requests, including substance use disorder treatment, youth assessment center funding, replacement items, IT upgrades, and a clinician services transfer from the Department of Health and Welfare. Members asked about the governor’s holdback, public works projects, vehicle replacements, and staffing. Director Ashley Dowell said the department’s census has declined due to strong county partnerships, prevention and diversion efforts, and youth assessment centers, and she explained that a staffing analysis found the agency understaffed by 12 positions, with six vacancies converted to direct care roles. She also described the holdback impacts as coming from contract reductions, internal efficiencies, travel and training cuts, and substance use disorder funding adjustments. The committee adjourned after the department discussion. The committee then reviewed the Office of Energy and Mineral Resources budget. Peterson described the office’s mostly federal funding, small staff, dedicated funds, prior energy resilience appropriations, and FY 2027 requests for personnel realignment, Idaho Orchestrating Nuclear (ION) support, and home energy rebates. Administrator Callie Younger said the office is focused on energy resilience, permitting coordination, hydropower relicensing, geothermal and mining projects, and a growing nuclear policy portfolio. She highlighted the new nuclear task force, the office’s request for information to industry, and work on a federal request related to a nuclear lifecycle campus. Members asked about nuclear development, spent fuel, modular reactors, permitting efficiency, and whether the office might merge with the Office of Species Conservation. Younger said the office is exploring a merger because of overlapping permitting functions and could reduce positions and save some general funds, while also improving its ability to handle nuclear and mining work. The chair closed by noting the committee’s alignment with several governor’s office recommendations and adjourned the meeting.

Transcript Highlights:

• Second, it removes the limitation that agencies have on imposing additional greenhouse gas requirements
• staff, this bill came to me from some folks in Spokane who were able to work with our Spokane Low-Income
• We are a limited health care services contractor that underwrites, administers, and sells... ...are a
• But I think the challenge is this legislation contemplates only a 30-year low-income housing provision
• The latest Washington Center for Real Estate Research report found that the median-income buyer could

Summary: House Finance heard several bills and took no recorded votes. HB 2367 would end special tax and emissions exemptions for the Centralia coal plant by limiting its Climate Commitment Act exemption to pre-2026 emissions, removing limits on additional greenhouse gas requirements, and repealing coal sales and use tax exemptions. The sponsor, Rep. Fitzgibbon, said the bill would help keep the plant’s transition to cleaner natural gas generation on track; Climate Solutions supported it, while business and clean-energy groups raised concerns about allowance-market impacts and asked for amendments to adjust the cap-and-invest allowance budget. HB 1974 would authorize public housing authorities, public corporations, and nonprofits to operate as land banks for affordable housing, give them priority for tax-foreclosed properties, and provide property tax, leasehold excise tax, and REET exemptions for land bank transactions. Rep. Hill said the bill was narrowed to reduce fiscal impact and support existing land banking work in Spokane; supporters said it would lower land costs and speed affordable housing development, while questions focused on how public land would be used and whether affordability should be permanent rather than limited to 30 years. HB 2650, a Department of Revenue request, would standardize notice and effective dates for local REET and lodging tax changes and clarify documentation for an affordable housing sales tax deferral. DOR supported the bill as an administrative efficiency measure, and there was no opposition testimony. HB 2626 would raise the premium tax on health maintenance organizations, health care service contractors, and self-funded multiple employer welfare arrangements from 2% to 3%, remove a dentistry-related exemption, and add a new 1% tax on certain disability and group stop-loss insurers. The sponsor said the bill is intended to help fund Apple Health and subsidies amid federal funding concerns; insurers and business groups opposed it as a cost increase likely to be passed on to consumers and employers, while patient and advocacy groups supported the revenue idea but urged that funds be dedicated to subsidies or other health care supports and that pass-through to consumers be prevented.

Transcript Highlights:

• Yes, again, I'm going to try to limit things to three questions, but go ahead, follow-up.
• All four scenarios do include a low-income discount.
• All of our scenarios do assume a low-income toll discount program will be a low-income toll discount
• It was assumed that the low-income toll discount would be a 50% discount for eligible low-income customers
• It was assumed that the low-income toll discount would be a 50% discount for eligible low-income customers

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The Joint Committee on Interstate 5 Bridge met remotely with Washington legislative members to receive updates on the Interstate Bridge Replacement Program, including environmental review, cost and funding, tolling, and procurement for construction. Program staff said the final supplemental environmental impact statement was published in April 2026, with a federal record of decision expected in early summer. They described the recommended design as a single-level fixed-span bridge, centered I-5 alignment, C Street ramps, one auxiliary lane in each direction, and dispersed park-and-ride parking. Members raised concerns about transparency, the closed chat function, and the decision not to include two auxiliary lanes; staff said the one-lane option was recommended through consultation with partner agencies and analysis, but the final decision would come with the record of decision. Staff also said the diversion analysis projected less than 3% traffic diversion to I-205 in 2045, though members from Oregon and Washington expressed concern about impacts to their communities and asked for more detail on mitigation and decision-making. The committee also reviewed a major cost update. Staff said the full five-mile program is now estimated at $13.5 billion to $15.2 billion, with a likely cost of $14.4 billion, up from a 2022 estimate of $5 billion to $7.5 billion, citing inflation, schedule delays, scope changes, and more detailed risk modeling. They said the first funded phase has been reduced to a $5.68 billion package focused on the Columbia River bridge replacement, connections to I-5, Hayden Island and SR-14, bridge demolition, tolling infrastructure, and advancing light rail design. Funding for that phase was described as $5.69 billion, including $2.1 billion federal funds, $1 billion from each state, and $1.5 billion in projected toll revenue. Members asked what would happen if costs rise further; staff said the estimate includes substantial contingency, the project will use progressive design-build to manage risk, and the team will continue updating the finance plan annually. A separate tolling and traffic-revenue presentation explained that four toll scenarios were analyzed using regional travel demand modeling, a toll diversion model, and a post-processing review. All scenarios assume pre-completion tolling beginning July 1, 2028, a 50% low-income discount for eligible users, and exemptions for tribal preemptions, emergency vehicles, maintenance vehicles, and organized militia. Staff said the low-income discount would affect about 4% to 6% of annual transactions and reduce annual revenues by roughly 2% to 3%. They said Scenario 2 was used for the financial analysis and is sufficient to support the $1.5 billion toll contribution in the funded phase. Members asked about toll collection costs, revenue impacts of the discount, and how the scenarios differed; staff said collection costs are expected to be in line with other WSDOT toll facilities, but exact costs are not yet set because toll rates are not final. Finally, WSDOT staff outlined procurement and delivery steps for construction. They said WSDOT will be the lead contracting agency, using progressive design-build, with a request for qualifications targeted for early July 2026, a request for proposals in October, contractor selection in April 2027, construction starting in 2028, and tolling beginning in 2028. Staff said the approach is intended to consolidate scope, reduce interface risk, and allow transparent negotiation with an independent cost estimator, while preserving an off-ramp if a fair price cannot be reached. Members asked for more detail on timing, cost allocation, and the share of the first phase funded by tolls; staff estimated tolls account for about 26% of the first phase cost.

Transcript Highlights:

• So there's an income way that, you know, and we called it free and relief once.
• So there's an income way that, you know, and we called it free and relief once.
• income because there is census data that will tell you by town median household income and median family
• income, and I would suggest median as opposed to average for obvious reasons.
• But I also think that we need this limit on spending of schools.

Summary: The Education Funding Committee met to review a large package of bills, with the first four—HB 717, 742, 773, and 603—focused on special education aid, formerly called catastrophic aid. Chair Ladin explained that the committee needed to move a special education bill forward by March 4 and was trying to determine which bill would serve as the vehicle. He described the current formula and the difficulty of estimating the fiscal impact of lowering the threshold from 3.5 times the statewide average cost per pupil to a lower level, noting that DOE did not have reliable data on how many students would fall into the lower-cost bands. The committee also noted that several other bills in the package addressed SWEP and adequacy issues, and that HB 510 dealt with due process rather than funding. Mark Mello of the Bureau of School Finance testified that the department only has reliable data for special education expenditures above $70,000 per student, since claims are submitted for reimbursement at that point. He said the bureau was trying to estimate how many students might fall between 2.5x and 3.5x or 3x and 3.5x the average cost, but that the basic answer was they did not know and that any estimate would be difficult. He explained that moving the threshold from 3.5x to 2.5x would create a minimum additional cost of about $13.6 million based on existing claims, not counting new students who would enter the range. Members discussed whether districts already had the underlying data, whether a survey should be required, and how districts know when to begin tracking costs for reimbursement. The committee also discussed proration and the state’s share of special education aid. Mello explained that the current 80% state share is modeled in the formula, but the actual payment has been prorated because appropriations have not matched the statutory liability; he said the state liability was about $50 million, while the budget had provided $34 million, resulting in a 68% payment rate. HB 742 was described as a bill that would eliminate proration by paying the liability directly from the education trust fund with an overflow mechanism. Members also discussed possible alternatives such as changing the state share, using a lower threshold in a transition period, or requiring districts to submit data. No votes or final actions were taken in the portion provided; the committee was still in discussion and considering which bills to advance.

Transcript Highlights:

• There's also many studies that show when you take a low-income community and turn it into a mixed-income
• There's also many studies that show when you take a low-income community and turn it into a mixed-income
• There's also many studies that show when you take a low-income community and turn it into a mixed-income
• There's also many studies that show when you take a low-income community and turn it into a mixed-income
• Into a mixed-income community, the result is most of the original low-income population gets forced out

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on several housing, land use, and preservation bills. HB 1008 HD2 would require the Department of Land and Natural Resources to complete historic preservation determinations for state affordable housing projects within 90 days and create sensitivity-based review pathways. HHFDC, DLNR’s State Historic Preservation Division, and written testimony from DBEDT supported the bill as an expedited process for projects unlikely to affect significant historic resources. Members asked how the bill would define significant versus non-significant historic properties, how it would interact with Kapakai analysis, and whether burial councils had been consulted; SHPD said the bill would not replace Kapakai review and that burial councils had not been included. Written support also came from OHA, Hawaii Realtors, and the Maui Chamber of Commerce. HB 1093 would clarify the Hawaii Public Housing Authority’s powers relating to housing projects. HPHA supported the measure, saying it would align definitions with prior law and help deconcentrate poverty by allowing mixed-income rebuilding. The director also said the bill was increasingly urgent because of reported federal HUD priorities that could affect public housing and Section 8 funding. HB 1096 HD1 would repeal state low-income housing preferences for disabled veterans and spouses of deceased veterans, with HPHA saying federal veteran programs such as VASH are a better mechanism and that the state preference has not been used in years. HB 1411 would allow HHFDC projects to give sale or lease preferences to applicants who live or work within five miles of a project; HHFDC and the Hawaii Chapter of NAIOP supported it as a way to keep residents connected to their communities, while members raised constitutional concerns about broader local-preference policies. The committee also heard HB 367 HD1, which would create county permit exemptions for certain agricultural and maintenance activities. Written testimony included opposition from the Department of Planning and Permitting and support from the Hawaii Farm Bureau, Grassroot Institute, and others. A public testifier opposed the bill, arguing that permit exemptions could worsen safety and compliance problems. Finally, HB 826 HD1 would allow county planning commissions, by special permit, to authorize residential housing in agricultural districts for agricultural workforce housing, long-term rental, or fee simple ownership under certain conditions. HHFDC supported it as a faster alternative to lengthy state land-use redistricting, but the Department of Agriculture, Land Use Commission, and Office of Planning and Sustainable Development raised concerns about food production impacts, due process, service provision, jurisdictional conflicts, and the use of special permits for what could amount to district boundary changes. Public testimony was mixed, with some support and some opposition. No votes or final actions were taken in the portion provided.

Transcript Highlights:

• July 1, 2027, subject to determination in the 2027-28 May Revision, reinstating the Medi-Cal asset limit
• July 1, 2027, subject to determination in the 2027-28 May Revision, reinstating the Medi-Cal asset limit
• July 1, 2027, subject to determination in the 2027-28 May Revision, reinstating the Medi-Cal asset limit
• We appreciate all the work on the Medi-Cal asset limit and rejecting that $2,000 limit, and we look forward
• Thank you. ...in the future in terms of the asset limit so that we can ensure some kind of regularity

Summary: The Assembly Budget Committee met to consider the final three-party agreement for the 2026-27 state budget and 19 implementing bills, including two budget bill juniors and 17 trailer bills. Committee leadership and administration officials described the budget as a balanced plan that reduces out-year structural deficits, maintains large reserves, and makes major investments in health care, education, housing, child care, public safety, and other core services while also responding to expected federal cuts and fiscal uncertainty. The Department of Finance outlined the package’s major components, including Medi-Cal adjustments, education funding increases, higher education changes, child care and human services updates, housing and homelessness funding, energy and transportation provisions, and tax and general government changes. Members asked questions about several provisions, including CSU enrollment targets and turnaround plans, the Prop. 98 settle-up mechanism, the plastics market development payment program, housing accountability measures, NextGen 9-1-1 implementation, and veteran services. Staff and administration witnesses explained that the higher education language is intended to improve campus-by-campus reporting and oversight, that Prop. 98 settle-up would be finalized later through the statutory certification process, and that NextGen 9-1-1 now includes one-time funding, quarterly reporting, an independent technical review, and a state audit. Members also discussed the HAP homelessness funding increase to $900 million and the balance between accountability and timely distribution of funds. The most extended exchange centered on comparisons between funding for veterans and Medi-Cal/immigrant health coverage. Republican members argued the budget spends far more on undocumented immigrant services than on veterans, while Democratic members and Finance staff responded that the comparison was misleading because many veterans’ services are federally funded and the state budget also includes dedicated veteran support. The chair and other members emphasized that the budget reflects difficult tradeoffs and that the package protects vulnerable populations, preserves health care access, and advances affordability. No final vote was described in the excerpt, but members indicated support for the overall package and said they would support it on the floor.

Transcript Highlights:

• We were able to get rid of the 8-year time limit on it, and we were able to really address some other
• We're trying to get rid of the eight-year limit so they don't lose their home after they lose their veteran
• on it uh and we the 8-year time limit on it uh and we were<00:03:46.080><c> able</c><00:03:46.319><c
• so they don't lose eight-year limit so they don't lose their<00:04:15.480><c> home</c><00:04:15.840>
• and as you could tell and you income and as you could tell and you heard<00:10:44.120><c> about</c><

Transcript Highlights:

• Income verification additionally needs to include, through the ALEC model of legislation, unearned income
• Income verification additionally needs to include, through the ALEC model of legislation, unearned income
• </c><00:20:00.400><c> eligibility</c> utilization of the income eligibility utilization of the income
• ,</c> reporting, transparency, and income, reporting, transparency, and income, employment.<00:21:20.159
• </c> limited to language. limited to language.

Transcript Highlights:

• </c><01:16:19.600><c> on</c> of complying with the limitation on of complying with the limitation on
• </c> supplemental security income supplemental security income stabilization<01:24:22.400><c> fund</c
• Section 12 $134,310 shall be from the limited gaming impact account within the local government limited
• . limitation. limitation. 15<04:16:48.800><c> on</c><04:16:48.960><c> state</c><04:16:49.199><c> fiscal
• </c> they are not subject to the limitation they are not subject to the limitation on<04:16:58.720><c

Transcript Highlights:

• And do I have a time limit? We'll see how it's going.
• Madam Chair: Thank you for that, and I am going to put a time limit on now.
• of their income.
• And New Mexico further reduces this to up to 2% of their income.
• So representative, I will not put a time limit on yet, but if we go crazy, I will.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• There are quite a number of people signed up to testify, so we are going to be limiting testimony to
• Various barriers schools serving high-needs and low-income students face, the MSBA structure does not
• They are trying to balance limited funds across all the projects statewide, but the net result of that
• As a result, my educational opportunities were limited.
• We serve mostly Black, Latino, multilingual, and low-income students.

Committee: Joint Joint Committee on Education

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

Transcript Highlights:

• We have low unemployment, strong personal income growth, low debt.
• We have low unemployment, strong personal income growth, low debt.
• We have low unemployment, strong personal income growth, low debt.
• It's not off the top of your tax liability; it's off the top of your income—your income—and it's a deduction
• for your income.

Summary: The Joint Finance-Appropriations Committee opened the session with roll call, confirmed a quorum, and introduced new members, staff, and pages. Co-chairs and staff then reviewed JFAC’s role as the legislature’s main budget committee, the committee’s daily schedule, and the resources available through legislative staff, the impact team, and the newly released 2026 Legislative Budget Book and related budget tools. The committee received a detailed briefing from the Division of Financial Management on the JFAC calendar and then from Governor’s Budget Director Lori Wolf on the governor’s FY 2026 and FY 2027 budget recommendations. Wolf said the budget is balanced but tight, relying on a mix of ongoing reductions and one-time actions rather than reserve fund transfers. Major budget actions included a 3% ongoing reduction across most state agencies, reversions of certain one-time balances to the general fund, no recommended pay increase for state employees or teachers, and higher employee health insurance costs. The budget also proposed reductions or policy changes in Medicaid, virtual school funding, Idaho Digital Learning Academy, and some transportation and water-related funds, while preserving funding for public safety, education, water, and transportation priorities. Members questioned the assumptions behind the budget, especially the projected ending balances, the use of one-time transfers, the impact of rising health insurance costs on employees, the effect of Medicaid cuts on services and cost shifts, and the rationale for reductions to online education and IDLA. Several members also asked about the proposed federal tax conformity changes, including the timing of implementation and the treatment of Idaho’s existing R&E tax credit. Wolf said the conformity estimate was based on Tax Commission analysis and that the administration was not recommending use of the budget stabilization fund. No votes or formal actions were taken; the committee concluded by noting that the Economic Outlook Committee would meet later in the week and that JFAC would continue budget hearings the next day.

Transcript Highlights:

• women and children under the low-income women and children under the age<00:28:43.480><c> of</c><00:
• </c> services across the state for low-income services across the state for low-income vulnerable<00:
• uh benefit for people who have limited uh benefit for people who have mental<01:02:37.319><c> health
• </c> have any ideas how we can address income have any ideas how we can address income Cliff<01:20:08.679
• </c><01:39:14.159><c> in</c> the um um the capability and limits in the um um the capability and limits

Committee: House Health, Human Services & Elderly Affairs

Transcript Highlights:

• </c> testimony will be given time limits testimony will be given time limits which<00:02:26.720><c> must
• Um how fast incomes are rising.
• </c> Um, but we're 15th in per capita income. Um, but we're 15th in per capita income.
• But it is correlated with lots of other variables like personal income growth, household income growth
• ><c> growth</c> income growth, household income growth income growth, household income growth and<00:

Committee: House Ways and Means

Transcript Highlights:

• Um interest dividends and income<00:31:36.399><c> or</c><00:31:36.640><c> income</c><00:31:36.880><c>
• income or income earned by investments of<00:31:38.080><c> the</c><00:31:38.159><c> money</c><00:31:
• This isn't limiting that. Just cash donations are limited to $1,000. It can't be given back.
• This isn't limiting that. Just cash donations are limited to $1,000.
• Section 11 includes the limitations for personal usage, and limitations are on personal use only.

Committee: Joint Elections

Transcript Highlights:

• So, we are providing an income replacement of about 40%, and that's with pension dollars only.
• </c> increased our allocation to fixed income increased our allocation to fixed income we<01:04:07.039
• . limitation. limitation.
• Um so in the equities and fixed income.
• So um we bonds corporate fixed income.

Transcript Highlights:

• so it is very limited.
• so it is very limited.
• We looked at Census data of low-income versus high-income areas, and we overlaid the contract pharmacy
• We looked at Census data of low-income versus high-income areas, and we overlaid the contract pharmacy
• c> areas</c><01:22:01.760><c> and</c> low income versus high income areas and low income versus high

Summary: The House Standing Committee on Health Services met with a quorum and took up House Bill 785, as amended by a committee substitute that combined language from HB 785 and HB 787. The bill was described as addressing Medicaid managed care organization (MCO) audits, provider contract notice and amendment procedures, mental health parity compliance, and related transparency requirements. Supporters said the measure would tighten notice to providers, limit repeated contract amendments and rate reductions, require more standardized audit procedures, and add reporting on Medicaid claims, appeals, and grievances. It also includes a provision requiring coverage of at least two evaluation-and-management billable services per physician per recipient per date of service, and a section addressing narcotic/opioid treatment program licensing and reimbursement language. Testimony in support came from Representative Kim Moore, John Inman of BrightView Health, Michelle Sandborne of the Children’s Alliance, and Kelly Cormic of RYSE. They argued that MCOs often use audits and recoupments in ways that are burdensome, opaque, and financially damaging to providers, especially smaller and rural ones. They cited examples of multiple audit requests in short timeframes, large record requests with short deadlines, delayed or absent feedback, and recoupments taken before appeals are resolved. They also said parity laws are not being consistently enforced and that the bill would give the Department of Insurance authority to suspend or revoke an MCO certificate of authority for willful or repeated parity violations. Committee members generally expressed support for provider protections and transparency, while asking for clarification on the narcotic treatment and E/M billing provisions. Tom Stevens of the Kentucky Association of Health Plans testified in opposition, saying the bill is complex to implement and should be handled through the broader Medicaid oversight work of House Bill 9, the MOAB. He said the issues raised were better suited for that bipartisan stakeholder process and noted the committee substitute had not yet been fully reviewed by his group. After discussion, the committee adopted the committee substitute and then moved to a vote on the bill; the roll call began, with several members recorded as voting yes, but the transcript cuts off before the final vote result is shown.