Transcript Highlights:

• to the National Highway Construction Cost Index.
• versus the National Highway Construction Cost Index.
• to the National Highway Construction Cost Index.
• versus the National Highway Construction Cost Index.
• to the National Highway Construction Cost Index.

Keywords: 958, all

Summary: The subcommittee approved the October 15 minutes and observed a moment of silence for the victims of the UPS Worldport plane crash. The main presentation was from Transportation Cabinet Commissioner Bobby Joe Lewis on the Local Assistance Road Program/County Priority Projects Program (LAARP/CPP), which was implemented under House Bill 546 and now requires rehabilitation projects to restore roads to original condition, cap funding at $500,000 per project, use a new scoring matrix, include a local match, and submit one photograph per 300 feet of project length. He reported that the 2026-2027 cycle ran from June 1 to October 1 and drew 1,215 project applications from 107 counties and 106 cities, with total submitted project costs of about $121.1 million and about $102.3 million requested after local match. He also said 30% of submissions scored 10s and 22% scored 9s, and that the list of requests and required photos had been submitted to the General Assembly and LRC. Members asked about how scores change over time, whether roads can move from lower scores to 10s, and whether the new process gives a better picture of local needs. Lewis said scores can change based on weather and road conditions, but the new system provides more information and a more standardized evaluation than before. Several members raised concerns about the volume and size of required photographs, suggesting drone footage or video as an alternative; Lewis said the photo requirement has caused confusion and large file uploads, and he was open to considering easier ways to document conditions. Members also discussed continuity in scoring across districts, and Lewis explained that district staff appointed by chief district engineers use a handbook and scoring matrix, with the scores entered into a computer system so evaluators do not see the final score while scoring. The committee also discussed funding levels and carry-forward balances for the program. Lewis said the program began with $20 million authorized in HR92, noted underruns from completed projects, and reported a carry-forward amount that had grown to $355,432.42 available for reauthorization as of October 13. In response to questions, he said the current process concentrates applications into a short window, with 63% of applications arriving in the last few days and 417 on October 1, which created a heavy workload but was completed on time. The meeting then moved to multimodal funding priorities, with Jennifer Kersner of Kentuckians for Better Transportation introducing herself and offering condolences for the UPS aviation incident before beginning her remarks.

Transcript Highlights:

• And that's the area wage index that we work on with the federal level all the time.
• And that's the area wage index that we work on with the federal level all the time.
• you talk with Senator Cottons or Senator Bozeman's office, they'll probably tell you that area wage index
• Many of the states that benefit greatly from an area wage index have a lot more population, which means
• “Punished for our efficiency in the area wage index game. Thank you. Thank you, Representative Rye.

Summary: The subcommittee met to review Department of Human Services hospital payments in Arkansas Medicaid, with DHS Secretary Janet Mann and Deputy Secretary Misty Eubanks presenting first, followed by Arkansas Hospital Association Executive Vice President Jody Ann Tritt and a brief comment from Arkansas Children’s. DHS outlined the main hospital payment streams: fee-for-service per diem payments, upper payment limit (UPL) supplemental payments, cost settlements, and smaller payments such as graduate medical education and disproportionate share hospital funds. Members asked for plain-language explanations of cost settlements, why per diem rates vary by hospital type, and why UPL applies to private hospitals. DHS said cost settlements and UPL are mechanisms to help offset Medicaid underpayment, with SFY 2025 hospital payments totaling hundreds of millions of dollars and no general revenue used for supplemental payments beyond the state share funded through hospital assessments and related financing structures. Committee members focused heavily on whether Arkansas hospitals are adequately reimbursed and why rural hospitals struggle. Tritt explained that critical access hospitals, rural emergency hospitals, PPS hospitals, and specialty hospitals operate under different federal and state rules, and said lower per diem rates for some facilities help with cash flow and later cost settlement adjustments. She said Arkansas hospitals are under financial strain, citing a negative patient services margin statewide and noting that Medicaid, Medicare, and commercial payers all contribute to the problem. She also said the association had just authorized a statewide survey of hospital finances and costs, which she expected would take about a year to complete. A major theme was commercial insurance reimbursement. Tritt argued Arkansas hospitals are paid far less than hospitals in neighboring states even though premiums are similar, and said administrative burdens, prior authorizations, and denials add to the problem. She said hospitals receive about 52 to 53 cents on the dollar for Medicaid costs without UPL and about 78 cents with UPL, still below cost. Members also discussed Medicare wage index issues, Medicare Advantage, and whether hospitals could use technology or alternative arrangements to improve finances. No votes were taken on the hospital presentation. At the end of the meeting, DHS provided a brief update on Living Choices and assisted living reimbursement. Officials said one assisted living facility, Pillars of the Community in Crossett, had announced closure, with nine waiver clients being transitioned to other settings. DHS said the current cost reporting period was underway and that a new rate study could be ready for review before the end of the fiscal year if reports were submitted on time. Members also asked about the broader waiver plan, and DHS said the next waiver iteration would likely be brought back to the committee in the summer.

Transcript Highlights:

• Um you're municipal cost index?
• Bureau of Labor Statistics, through the Consumer Price Index, or the Municipal Cost Index published by
• Also note that it was clarified that the inflation index can be the municipal cost index, but it can
• </c> clarified that the uh inflation index clarified that the uh inflation index can<01:57:02.960><c>
• c> the</c> can also be any index published by the can also be any index published by the US<01:57:07.760

Keywords: 1191, senate, all

Transcript Highlights:

• </c> getting us higher in the suits index. getting us higher in the suits index.
• What really disturbs me about this bill is we just had the suits index yesterday.
• If you look at sales taxes on the suits index, it's very regressive.
• </c> had the suits index yesterday. had the suits index yesterday.
• </c> index, it's very regressive. index, it's very regressive.

Keywords: 1183, house

Transcript Highlights:

• The private equity risk index gives Minnesota a risk score of 46 on 100.
• </c><00:07:37.599><c> Um</c> to as a private equities risk index.
• Um to as a private equities risk index.
• Uh the private equity<00:07:43.680><c> risk</c><00:07:44.080><c> index</c><00:07:44.880><c> um</c><00
• Minnesota a equity risk index um gives Minnesota a risk<00:07:46.479><c> score</c><00:07:46.720><c>

Keywords: 1183, house

Transcript Highlights:

• And also determines at which air quality index level for wildfire smoke an employer shall not allow an
• Senator, my question is more about the air quality index that you stated in here, so not so much...
• So I'm just curious to see if these same air quality indexes, because I know that was based on adults
• So I'm just curious to see if these same air quality indexes, because I know that was based on adults
• And it gives me all of this information on the air quality index, PM2.5, sulfur dioxide, carbon monoxide

Bills: AB93, AB204, AB414, AB504, AB598

Keywords: public employees, police officers, benefits, appropriation, law enforcement, medical debt, collection agency, healthcare, consumer protection, financial assistance, occupational safety, air quality, greenhouse gases, employee monitoring, safety program, hemp, hemp products, cannabidiol, CBD, cannabis

Transcript Highlights:

• Discovery feeds on the index, and if you get that indexing, that's a miracle.
• And actually, what happened in the conference committee was indexing.
• And you feel that the indexing is significant.
• The increase in minimum wage was a 4% cap on the index.
• But I just wanted to raise that point, especially on the index. I don't know.

Transcript Highlights:

• Mike Lund with Metro Cities. indexing it to keep up with indexing it to keep up with inflation<00:37:
• We oppose repealing the indexing that was enacted less than two years ago.
• We oppose repealing the indexing that was enacted less than two years ago.
• This is removing the repeal of the indexing of the gas tax.
• </c><01:17:06.600><c> of</c> legislature and so um the indexing of legislature and so um the indexing

Bills: HF5

Keywords: tax modification, transportation funding, electric vehicle tax, Social Security subtraction, retail delivery fee, motor vehicle registration, state budget, transportation policy, 1183, house

Transcript Highlights:

• Some of that is through legislation, but a lot of that is through a CPI or Consumer Price Index, which
• For example, Florida's gas tax went up by 0.5 of a cent this year based on the Consumer Price Index.
• Some other states actually have that attached to the Construction Price Index.
• Since Most of the tax goes to roads, attaching it to the actual index and inflation as it pertains to
• Chairman, and Senator, the CPI is a consumer price index.

Keywords: 996, all

Transcript Highlights:

• We do this through a numerical index that measures.
• It's an index that's scaled to the available supply.
• Vice-Chair, they can make a call if we're not making the amount under the index for delivery.
• Under the index, they could make a call that we're not making the index.
• But that's because the index quantifies how much.

Transcript Highlights:

• He also, I consider him and probably Senator Karen Kaiser, legislative royalty.

Bills: SCR8410

Keywords: returning bills to house of origin, sine die, end of session, legislative procedure, Rules Committee, third reading, unfinished business, pending bills, joint resolutions, concurrent resolutions, joint memorials, special session, bill numbering, legislative records, House of Representatives, Senate, Washington Legislature, session adjournment, procedural resolution, 904

Summary: The Senate convened on March 9, 2025, approved the previous day’s journal, suspended Rule 46 to allow committees to meet during floor sessions, and referred committee and gubernatorial reports as designated. It also received several new bills and appointments, including Senate Bill 6359, and later suspended Rule 20 to allow additional floor resolutions. The chamber then moved through a series of gubernatorial confirmations, with broad support for Megan Matthews as Director of the Washington State Office of Equity and for several college board trustees, including Robert A. Zupon (Renton Technical College), Denise E. Gideon (Clark College), Adria Buchanan (Clover Park Technical College), Michelle R. Smith (Columbia Basin College), and Edison A. Valerio (Columbia Basin College). Each confirmation passed by majority roll call vote, with some members excused. The Senate then considered Engrossed Substitute House Bill 2711, a transportation revenue and policy measure. Members rejected the Transportation Committee’s original striking amendment and adopted a narrower striking amendment that, among other changes, repealed the luxury aircraft tax and replaced it with higher aircraft fuel taxes, registration fees, and an annual excise tax, while also making technical corrections and creating a sustainable aircraft fuel account. Supporters said the bill reflected a bipartisan agreement, improved transportation funding, and supported aviation sustainability; opponents argued it would disproportionately burden small aircraft owners and general aviation. The bill passed the Senate on a 33-15 vote. The final major action was adoption of Senate Resolution 8703 honoring Senator Steve Conway for his 34 years of legislative service. The resolution highlighted his long career in the House and Senate, his leadership on labor, pensions, veterans, and local projects, and his reputation for institutional knowledge and mentorship. Numerous senators from both parties offered personal remarks praising his integrity, advocacy for working families, and support for colleagues. The resolution was adopted by voice vote, and Senator Conway, joined by family and friends in the gallery, offered brief remarks thanking the Senate, his staff, family, and constituents before the chamber recessed for lunch and caucus.

Transcript Highlights:

• And I also have the honor of our Senate royalty.

Keywords: 1182, all

Transcript Highlights:

• If we did not pass the royalty increase bill last year, and that introduced $340,000.

Bills: SB2

Keywords: SB 2, State Highway Project Bonds, highway funding, transportation bonds, state road fund, motor vehicle fees, vehicle registration fees, electric vehicle fee, EV surcharge, plug-in hybrid fee, weight distance tax, road construction, infrastructure financing, Department of Transportation, State Transportation Commission, bonding authority, county road funds, municipal road funds, transportation improvement program, state highways

Transcript Highlights:

• If we did not pass the royalty increase bill last year, and that introduced $300 million into the system

Bills: SB2

Keywords: SB 2, State Highway Project Bonds, highway funding, transportation bonds, state road fund, motor vehicle fees, vehicle registration fees, electric vehicle fee, EV surcharge, plug-in hybrid fee, weight distance tax, road construction, infrastructure financing, Department of Transportation, State Transportation Commission, bonding authority, county road funds, municipal road funds, transportation improvement program, state highways

Transcript Highlights:

• please make sure that they are in cursive as well as any T-shirts that you put out there and any royalties

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• Royalty. So please let's give a huge round of applause to all of our staff.

Transcript Highlights:

• couple of our I'm going to go through a little bit of information about severance taxes, rents, and royalties

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• that index and stuff then, as I'm assuming, with this.
• that index and stuff then, as I'm assuming, with this.
• And if you slide your eyes down to the NCREIF Property Index, 4.9%.
• Scott talks about enhanced indexing and some of the other programs they have.
• It's just a matter of using one index.

Keywords: 908, all

Transcript Highlights:

• within that index and stuff then, as I'm assuming, with this.
• that index and stuff then, as I'm assuming, with this.
• And if you slide your eyes down to the NCREIF Property Index, 4.9%.
• I think, you know, Scott talks about enhanced indexing and some of the other programs they have.
• It's just a matter of using one index.

Summary: The committee met to approve prior minutes and receive updates on the Legacy Fund transparency website and fund performance. Staff reported the website procurement was in contract negotiations, with a planned go-live around November 1, and that the site would provide downloadable, more transparent information on fund holdings, allocations, history, and legislative appropriations while protecting confidential data. The investment office then reviewed performance through January 2026, describing strong returns relative to benchmarks, noting real estate and fixed income as weaker areas, and explaining that the fund’s diversification and internal management had helped offset market volatility, including recent geopolitical impacts. Members also discussed the in-state investment program, especially the Bank of North Dakota’s CD-match allocation. Several members questioned whether the program had been static for years and whether the uncommitted balance should remain parked there if it was not being used. The committee voted to pause further transfers into the program until the Bank provides a report and the committee can consider possible statutory changes; the motion also requested a cost-benefit analysis from RVK, and it passed by roll call vote. In the afternoon, RVK presented its review of the investment policy statement as it relates to the in-state investment program. The consultant said it found no major policy impediments, and that implementers and stakeholders generally felt the program was proceeding as intended. RVK emphasized best practices such as third-party due diligence, competitive risk-adjusted returns, diversification, pacing, and exit strategies, while cautioning that required lower-return investments or spending commitments can create pressure on the fund’s long-term real value. The consultant also raised ancillary concerns about state-level concentration risk, the need to distinguish between public and commercial infrastructure, and the lack of a central repository for all state funding commitments to the same projects.

Transcript Highlights:

• within that index and stuff then, as I'm assuming, with this.
• within that index and stuff then, as I'm assuming, with this.
• And if you slide your eyes down to the NCREIF Property Index, 4.9%.
• Scott talks about enhanced indexing and some of the other programs they have.
• It's just a matter of using one index.

Summary: The committee met with a quorum, approved the October 22 minutes, and received an update on the planned Legacy Fund transparency website. Jody Smith said the site is in contract negotiations after six bidders responded, with a target go-live around November 1 after added security review. The website is intended to provide downloadable, more detailed public information on the Legacy Fund, including historical changes, legislative allocations, and investment breakdowns. Members asked about comparables and data detail, and Smith said North Dakota would likely be the first state to offer this level of sovereign wealth fund transparency. Scott Anderson of the Retirement Investment Office then reviewed Legacy Fund performance through January 31, 2026, describing strong returns, low fees, and the benefits of diversification. He noted that real estate had been a drag on returns, but it is a small portion of the portfolio, and he discussed market effects from geopolitical events, inflation, credit spreads, and private credit. Members also questioned the in-state investment program and the BND CD-Match program. Representative Bosch moved to pause new transfers to the CD-Match program until the bank reports back, and the motion passed on a roll call vote. The committee also agreed to request a cost-benefit analysis from RVK on that change. After lunch, the committee heard from RVK consultant Jim Voidko on the investment policy statement, focused on the in-state investment provisions. He reported that, after interviews with implementers and stakeholders, RVK found no major policy impediments in the current IPS and no strong calls to change the size limits or core guardrails. He emphasized the importance of risk-adjusted returns, diversification, pacing, exit strategies, and governance, and warned that foregone returns or higher spending obligations can pressure the fund’s long-term mission. He also recommended clearer terminology around “infrastructure,” distinguishing public infrastructure from commercial infrastructure, and noted unresolved policy questions about nexus and economic diversification. The committee then began reviewing proposed IPS updates with Rio staff.