Transcript Highlights:

• So it seems like, you know, we get the revenue estimates.
• It comes with the price tag.
• This is a particularly tricky topic to try to get an estimate on.
• So it is an estimate. Thank you, Madam Chair.
• You know what land prices were in 2008. You know what they are now.

Summary: The committee’s final day focused first on a historical overview of New Mexico tax packages by Pam Stokes of Legislative Council Services. She described how tax packages have alternated over the decades between tax relief, revenue raising, and tax reform, with examples ranging from the creation of the gross receipts tax in 1966 to major packages in 1981, 1986, 1991, 1994, 2005, 2019, 2022, 2024, and the vetoed 2025 package. Members discussed how tax policy often tracks revenue conditions, how packages can combine increases and decreases, and how local government gross receipts taxes and hold-harmless distributions have affected communities differently. Several members reflected on past packages, especially the 2004 food tax repeal and the 2013 film tax and manufacturing changes, and noted that tax policy can have major economic and political effects even when it is not “sexy” legislation. The committee then heard a proposal to expand the health care practitioner gross receipts tax deduction to include co-insurance, and to extend the sunset date. Sponsor Senator Figueroa said the bill was intended to help recruit and retain medical providers and build on prior deductions for co-pays and deductibles. Testimony explained that co-insurance is the patient’s share after the deductible, that providers currently absorb the gross receipts tax on those payments, and that the proposal would cost about $30 million to the state plus about $20 million to municipalities and counties, with the exact fiscal impact likely to be updated. Members raised concerns about the effect on local governments, whether insurers could be required to reimburse providers, whether the bill would actually attract doctors, and whether better evaluation measures and sunsets should be added. The sponsor said the bill was part of a broader set of efforts to address provider shortages and that the discussion would continue. Representative McQueen then presented a bill to update the Land Conservation Incentives Act. He and conservation partners said the program has protected more than 500,000 acres but has not kept pace with rising land values, especially for irrigated agricultural land in the Middle Rio Grande. The proposal would increase the percentage of conservation value eligible for the credit, raise the per-transaction cap from $250,000 to $2 million, and make the credit refundable rather than only transferable. Testimony emphasized that the program is voluntary, keeps land in private ownership and production, and helps land-rich, cash-poor landowners preserve farmland and water rights. Members asked about average credit amounts, how easements work, whether landowners could effectively buy land and then use the credit, and whether there should be inflation indexing or a statewide cap. The discussion also touched on water rights, fencing, and the role of conservation easements in protecting agricultural land and compact water deliveries. Finally, Senator Sharer previewed his 2% tax proposal with a historical presentation on New Mexico tax law, using props to illustrate the evolution from early territorial tax codes to the modern tax system. He argued that the state’s current tax structure is overly complex and that recent federal changes have disrupted the personal income tax base. The committee did not take any votes on the day’s presentations; the meeting was primarily informational, with members offering feedback and raising policy concerns for future sessions.

Transcript Highlights:

• The Congressional Budget Office estimates 10 million...
• And the industry said, no, we can't have a governmental entity set prices.
• But the spending targets are not themselves price caps.
• Estimates are that 22,000 or more are at risk of losing Medi-Cal coverage, and of those we estimate 7,200
• over $100,000 annually and continue to see regular price increases.

Transcript Highlights:

• Price. So, does anybody wish to change his or her vote?
• Price. Aye. Does anybody wish to change his or her vote?
• Price. Anybody wish to change his or her vote? None.
• Price. Aye. Harris. Is anybody wish to change his or her vote?
• Price. Aye. Bruce. Aye. Anybody wish to change his or her vote?

Summary: The committee received a General Fund Daily Update and Budget Monitor presentation from Legislative Services Office staff, who explained that the budget picture was nearly complete, with most general fund agency actions and germane bill impacts already reflected. Members also discussed revenue performance, including that the state was about $89.5 million behind the legislative revenue target and that April revenue reports would be especially important. Staff noted that the estimated ending balance was close to negative $44.1 million, with some uncertainty remaining because of revenue volatility and pending monthly reports. The committee then considered a series of budget-balancing cash transfers and related actions. It approved transfers from the Permanent Building Fund to the Legislature, a 5% reduction in the legislative transfer, a $13 million transfer from the Idaho Broadband Fund to the General Fund, transfers from inactive school district building account subaccounts, and a conditional transfer from the 27th payroll fund if needed. It also approved moving interest earnings from the Budget Stabilization Fund, Water Pollution Control Fund, Permanent Building Fund, and several American Rescue Plan Act-related funds to the General Fund or Strategic Initiatives Fund, along with transfers involving the Fire Suppression Deficiency Account and Strategic Initiatives Fund balances. Several members commented on the policy choices, including support for legislative belt-tightening and concern about using interest earnings transfers, especially from the Budget Stabilization Fund. One member questioned whether those transfers were appropriate if the budget remained balanced, while another asked for clarification on how Strategic Initiatives Fund allocations would be used. Most motions passed with due pass recommendations in both chambers’ committee votes, and the committee adjourned after scheduling another meeting for the following morning to continue work on remaining cash transfers and possible Fish and Game items.

Transcript Highlights:

• What price point does that kick in, please? So it's the value over $100,000. Senator Harris.
• value, and that gets deducted, and so then you have the selling price.
• So the luxury aircraft tax, which is being repealed, just to be clear, all we have is the estimates of
• So the luxury aircraft tax, which is being repealed, just to be clear, all we have is the estimates of
• All we have is the original estimate, so it never actually was implemented. That is correct.

Committee: Senate Transportation

Transcript Highlights:

• I don't have an estimate for how much time exactly it will save.
• Private businesses compete to deliver superior prices, selection, and services.
• Some of these include a description of the public improvements, estimated costs, and the estimated amount
• You estimate it could save us as high as nine months.
• We estimate that we process 400 contracts under $100,000 each year.

Bills: HB2313 , HB2451 , HB2298 , HB2566 , HB2517

Committee: House Local Government

Keywords: grocery stores, public ownership, food accessibility, community services, economic development, tax increment financing, local government, municipal finance, public infrastructure, property title protection, land record fraud, county auditors, voluntary program, real estate, procurement, contracting, transparency, financial oversight, municipal permitting, transit projects

Transcript Highlights:

• And helps people to know when some of the prices will be brought down.
• The Department of Revenue estimates the bill will reduce state revenues by an estimated $1.3 million
• State and local agencies are authorized to round prices when pennies are not available.
• Sales and use taxes are calculated on the basis of sale price without regard to price rounding, and rounding
• In my lifetime, in the 70s, inflation, which is theft, went from, it doubled prices in the 70s.

Bills: HB1983 , HB1974 , HB2334 , HB2367 , HB2650 , HB2655

Committee: House Finance

Keywords: timberland, real estate, excise tax, governmental entities, property taxation, land bank, land banking authority, affordable housing, housing crisis, housing supply, public corporation, public housing authority, nonprofit housing, tax-foreclosed property, blight remediation, redevelopment, anti-displacement, equity, redlining, racial segregation

Transcript Highlights:

• You did mention price gouging.
• raising of prices above costs.
• from 2022, the data from those price spikes, is consistent with that generalized form of price gouging
• My analysis of the gas price, what makes up the gas price that we pay at the gas pump on a daily basis
• For example, in the 2022 price spike, prices or margins raised above taxes and fees that are imposed

Transcript Highlights:

• I don't have an estimate for how much time exactly that it will save.
• I don't have an estimate for how much time exactly that it will save.
• Some of these include a description of the public improvements, estimated costs, and the estimated amount
• You estimate it could save us as high as nine months.
• We estimate that we process 400 contracts under $100,000 each year.

Summary: The committee first heard HB 2517, which would give regional transit authorities, especially Sound Transit, more flexible permitting tools for high-capacity transit projects. Staff and the bill sponsor said the goal is to let permit applications and technical reviews proceed concurrently with property acquisition and land use decisions, reducing delay and uncertainty for large transit projects. Sound Transit testified that the bill could save as much as nine months, while a city representative from Bothell asked for an amendment requiring notice to property owners before permits are advanced on land not yet owned or controlled by the agency. The committee then took testimony on HB 2313, concerning publicly owned grocery stores in underserved areas. The bill would let cities acquire land, build or rehabilitate stores, seek capital grants, and create tax increment financing areas for grocery access projects, with annual reporting requirements. Supporters, including the sponsor, Food Lifeline, and Northwest Harvest, argued that grocery closures and food deserts are real problems and that local governments need tools to fill gaps when private grocers leave. Opponents, including grocery industry groups and several students, warned that public stores could undercut private grocers, burden taxpayers, and create operational and property-rights concerns; some testimony also questioned the need for government ownership and the use of tax increment financing. A proposed substitute removed eminent domain and tax increment financing provisions and narrowed the bill to grant-funded stores in underserved areas. Next, the committee heard HB 2451, a major rewrite of local tax increment financing rules. The bill would tighten notice, consultation, reporting, and mitigation requirements for TIF areas, strengthen the “but-for” test, limit where increment areas can be located, and protect existing taxing districts by excluding certain levies and requiring negotiation, mediation, or arbitration when impacts are significant. Cities, ports, counties, libraries, fire chiefs, and hospital districts largely described the bill as a negotiated compromise that improves transparency and addresses unintended impacts, though some local governments said they still wanted more flexibility or protections for existing projects. One city testified against the bill, arguing the new restrictions would make TIF much less useful for large redevelopment efforts. The committee then heard HB 2298, which would authorize county auditors to create voluntary property title protection programs to help prevent land-record fraud by allowing owners to record a protection instrument that delays recording of a title transfer for up to five business days unless identity verification is provided. Auditors, treasurers, and county officials strongly supported the bill as a practical response to rising deed fraud, while title and foreclosure industry representatives said the proposal was too limited, could interfere with foreclosures or other transfers, and would only delay—not prevent—fraud. The final bill heard was HB 2566 on local government procurement, which would raise certain small-purchase and small-public-works thresholds for counties, remove some differences between larger and smaller counties, and give counties more options when no bids are received. County representatives supported the bill as a needed update to procurement rules and a way to reduce bureaucracy and keep pace with inflation.

Transcript Highlights:

• We use a conservative estimate of 20% um between 2019 and 2025, basically.
• I don't have an estimate for exports at this time, but we are.
• And we, we raised the price of labor here in the state of New Mexico to help.
• The price of the hamburger went up.
• That it's, it's a reasonable price where we can all live with it if we keep funding.

Transcript Highlights:

• </c><03:30:24.040><c> lunch</c> in um in free and reduced price lunch in um in free and reduced price
• </c><03:45:59.399><c> that's</c> their than their full price that's their than their full price that's
• </c><04:57:21.558><c> 2425</c> um estimate for FY 26 is estimated 2425 um estimate for FY 26 is estimated
• </c> mentioned would be for adequa estimating mentioned would be for adequa estimating adequacy<04:57
• estimated number where you've got um estimated number where you've got um estimated estimated estimated

Summary: The committee first discussed HB 443, which would change terms and vacancy language for members of a higher education commission. Members raised concerns that the bill was too narrow to address broader issues with commission membership, including expired appointments, attendance expectations, and whether the Department of Education could replace the commission’s role. Several members suggested the bill was not ready for action and favored holding it for further work, possibly through a subcommittee or work session. One member suggested that if attendance standards were added, no more than two unexcused absences should trigger removal, given the commission’s meeting schedule. The chair said he would defer action and form a small subcommittee to report back before the committee deadline. The committee then moved to HB 484, dealing with repurposing Career and Technical Education classroom space after 20 years of exclusive use. The chair explained that the bill was aimed at the Milford CTE project, where shared use of space could allow a school to repurpose part of a CTE facility while still using it for CTE-related instruction. Members discussed other possible situations around the state, including Claremont, North Conway, and Jaffrey/Rindge, and whether the bill should be limited to Milford or broadened to allow local districts more flexibility. Some members favored passing the bill now to help CTE projects move forward, while others argued for an amendment removing the requirement that the space be vacated specifically to expand the CTE program occupying it. Testimony and discussion emphasized that the Milford project had state approval but reduced funding, requiring a smaller scope and repurposing of existing space. Supporters said the bill could help preserve CTE programs while also benefiting general education space needs, and that local districts should have flexibility after 20 years. Opponents or cautious members noted that the language might not fit every district situation and asked for feedback from Director Beard and Steve Rothenberg before final action. The committee did not take a final vote in the portion provided, and instead discussed waiting for an amendment and additional input before acting.

Transcript Highlights:

• times when prices are lowest.
• So the actual staff estimate is about 70%. So we're the...
• Because we have 43 publicly owned utilities, the actual staff estimate is about 70%.
• And they further estimate that one year... ...are expanding.
• It's hard to imagine that the pricing metric in approximately 30 years.

Summary: The Assembly Committee on Utilities and Energy held an oversight hearing with leaders from the CPUC, Public Advocates Office, CAISO, the Office of Energy Infrastructure Safety, and the Energy Commission. Chair Petrie-Norris framed the hearing around high utility bills, wildfire risk, grid reliability, clean energy buildout, and the state’s long-term decarbonization goals, and also noted it was CPUC President Alice Reynolds’ final week at the commission. Each agency gave an update on its role: the CPUC described efforts to reduce rate increases while maintaining reliability and clean energy procurement; the Public Advocates Office focused on affordability and the need to control underlying utility costs; CAISO discussed transmission planning, market operations, and the upcoming extended day-ahead market; Energy Safety reviewed wildfire mitigation oversight and inspections; and the Energy Commission highlighted clean energy growth, EV adoption, storage, efficiency, and gasoline price monitoring. A major theme was affordability versus the costs of the clean energy transition. Reynolds said the CPUC has lowered utility revenue requests, reduced utility returns, adopted a base services charge, and reworked net metering, while also continuing to manage wildfire-related costs and support resource adequacy and demand flexibility. Sarazawa argued that recent rate decreases may not be durable because billions of dollars in wildfire and other utility costs are still pending or unbilled, and she urged tighter use of general rate cases, lower-cost financing, program reform, and more equitable rate design. Members pressed the agencies on whether state policy is sufficiently accounting for labor, local economic development, and the cost impacts of transmission and procurement decisions, especially where out-of-state resources are being considered. CAISO and the Energy Commission emphasized that the state’s planning and market reforms are helping lower costs and improve reliability. CAISO said the Western Energy Imbalance Market has produced billions in benefits, the extended day-ahead market is on track to launch, and transmission planning is being aligned with long-term resource needs while reducing queue delays. The Energy Commission said California is now getting roughly two-thirds of its power from clean sources, has added massive amounts of storage and renewables, and is seeing strong EV and charger growth that can help spread fixed grid costs. Energy Safety reported thousands of inspections, hundreds of notices of non-performance, and a decline in reportable ignitions, while noting that major fires show more work is needed. Members also raised concerns about the SB 100 report delay, memo and balancing accounts, the future of battery storage, and whether decarbonization zone pilots will affect residential and commercial customers.

Transcript Highlights:

• You did mention price gouging.
• raising of prices above costs.
• from 2022, the data from those price spikes, is consistent with that generalized form of price gouging
• My analysis of the gas price, what makes up the gas price that we pay at the gas pump on a daily basis
• For example, in the 2022 price spike, prices or margins raised above taxes and fees that are imposed

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection and Energy heard six budget-related items and took no votes, holding all items open for a future hearing. The first item concerned a climate bond expenditure plan for the California Transmission Accelerator Revolving Fund under SB 254. GoBiz, IBank, and the Department of Finance described a request for nearly $26 million and 10 limited-term positions to develop financing strategies and evaluate transmission projects, while the LAO said the proposal was broadly consistent with Prop. 4 but noted that the Legislature may want to provide more direction on program design. Senators questioned how the proposal would lower ratepayer costs, protect state funds, and ensure accountability for billion-dollar transmission projects. The second item covered trailer bill language to redirect funding among demand-side reliability programs. Finance proposed moving $22 million from the DEPA program to DSGS for summer 2026 and using CalSHAPE interest funds for ELRP or an equivalent CPUC program in 2027-28, with CEC and CPUC coordinating the transition. Senators and LAO questioned why CalSHAPE funds should not continue supporting schools, and several members argued DSGS has been more successful and should continue rather than be shifted to ELRP. CEC and CPUC explained that DSGS and ELRP serve different reliability functions and do not address public safety power shutoffs. Public commenters, including school groups and clean energy advocates, split between extending CalSHAPE for school HVAC/plumbing projects and preserving or expanding DSGS. The committee also heard on petroleum market oversight implementation under SBX1-2 and ABX2-1, with the CEC and its Division of Petroleum Market Oversight requesting additional staffing to support inventory monitoring, refinery resupply analysis, and market oversight. Senators pressed for details on investigations, refinery margins, gasoline price spikes, and the transportation fuels transition plan, while staff said the draft plan would be released soon and that DPMO’s work on branded versus unbranded gasoline remains ongoing. Finally, the CPUC presented three additional proposals: implementing AB 1207’s climate credit reforms, studying large-load/data center cost impacts under SB 57, and preparing for regional market participation under AB 825. The LAO repeatedly cautioned that some of these requests may go beyond statutory minimums and urged the Legislature to decide how much policy direction and staffing it wants to provide. Public commenters supported DPMO funding, opposed ending CalSHAPE, and strongly favored continued DSGS funding over a new ELRP structure.

Transcript Highlights:

• The Office of the Insurance Commissioner estimates $413,000 in operating expenditures in the current
• The Department of Financial Institutions estimates no fiscal impacts.
• SB 6230, adjusting the price of a cash transaction to eliminate the need for pennies.
• The Department of Licensing estimates $186,000 in expenditures from its motor vehicle accounts.
• SB 632 was the bill concerning surveillance pricing in grocery stores.

Summary: The Senate Trade and Economic Development Committee met in executive session on cutoff day and received staff briefings on several gubernatorial appointments and bills, including SB 6248 on travel insurance, SB 5976 on false subject lines in commercial emails, SB 6079 on a wildfire mitigation grant program, SB 6250 on small loan principal limits, SB 6257 on real estate appraiser trainee licensing tolling, SB 6289 on the Department of Commerce’s economic development strategic plan, SB 6230 on rounding cash transactions to eliminate pennies, and SB 6149 on the definition of rural counties. Staff also noted a new substitute for SB 6149 that narrowed the rural county definition and reduced the fiscal impact. The committee briefly paused for caucus before taking action. In executive session, the committee voted to recommend confirmation of gubernatorial appointments 9060 (Alicia Levy), 9169 (Michael Charles), 9265 (Brian Bennett), and 9266 (Noah Skartford), all subject to signatures. It then advanced SB 6248, SB 6079, SB 6250, SB 6257, SB 6289, SB 6230, and SB 6149, generally by adopting proposed substitutes and sending the bills to Rules, except SB 6079, which was sent to Ways and Means. SB 5976 was not considered. At the close of the meeting, the chair thanked members, stakeholders, and staff for their work during the short session and noted the committee had completed its agenda. The committee then adjourned.

Transcript Highlights:

• </c> the competition would help lower prices the competition would help lower prices for<00:10:37.639
• 00:43:48.240><c> tickets</c> exemption to the price of their tickets exemption to the price of their
• Maybe a while before it feels like home, that's all right. estimates we don't have um fiscal estimates
• estimate re Revenue estimate<00:45:54.440><c> I</c><00:45:54.839><c> you</c><00:45:54.880><c> know</
• </c> that that would cut the revenue estimate that that would cut the revenue estimate um<01:04:25.440

Committee: Senate Taxes

Transcript Highlights:

• or gas prices one or two cents a gallon.
• or gas prices one or two cents a gallon.
• They want to see lower gas prices, lower grocery prices, and they want lower utility bills.
• We took action to stabilize gas prices to prevent price shocks while keeping health and environmental
• We stopped exploitative digital algorithms from raising consumer prices.

Summary: The meeting began with procedural announcements, a vote change on SB 414, and adoption of the consent calendar, including ACR 107 on the Diablo Range. Members also agreed to take several Senate messages up without reference to file. A point of order was raised urging members to respect staff by arriving on time after a late-night session. The main floor debate centered on SB 237, a major oil and gas measure. Supporters said it would help stabilize fuel supply and prices, address refinery closures, strengthen offshore pipeline safety, clarify Kern County oil permitting, and allow possible suspension of the summer gasoline blend. Opponents argued it was a giveaway to big oil and a setback for climate goals. The bill passed 59-0. The Assembly then passed SB 254, an energy affordability and wildfire package that would reduce ratepayer costs, strengthen the wildfire fund, and speed utility infrastructure and clean energy permitting; it passed 58-0. SB 840, the cap-and-invest reauthorization and spending framework, drew the most divided debate, with supporters emphasizing climate policy, transit, housing, and community investments, and opponents calling it a tax increase and slush fund; it passed 54-15 on the urgency and 54-15 on the measure. AB 1207, the Assembly’s cap-and-invest reauthorization bill, also passed, 55-10 on both urgency and the measure. Members also approved SB 352 to make the Bureau of Environmental Justice permanent and require more reporting on air quality and AB 825 to create a Westwide electricity market, which supporters said would lower costs, improve reliability, and reduce emissions; AB 825 passed 67-2. AB 8, a cannabinoids bill with Senate amendments, was concurred in 66-0, and AB 383, a firearms cleanup bill, was concurred in 66-0. The session ended with immediate transmittals of the major measures to the Senate or Governor as applicable.

Transcript Highlights:

• That may not be your projects or estimated completion date.
• The $1,000 a square foot is estimated on the high end.
• So that carries a healthy amount of contingency in that estimated cost.
• So was that our mistake or Entergy's mistake in the pricing of that?
• That our mistake or Entergy's mistake in the pricing of that?

Committee: All ALC-REVIEW

Summary: The review subcommittee met to consider a supplemental agenda, methods of finance, an alternative delivery project, discretionary grants, and a large slate of construction, out-of-state, and in-state contracts. The supplemental item was a $2.6 million out-of-state contract with Tyler Technologies for a mobile app that would let citizens access state services through a single sign-on, initially for DFA vehicle and licensing services, with possible expansion to other agencies. Members also reviewed five methods of finance, including University of Arkansas projects for roof and cooling tower replacements, a new $100 million academic classroom building at U of A Fayetteville, a police department renovation at UA Fort Smith, and a boiler/chiller replacement at Hope-Texarkana. Questions focused on project timing, why some items were being reviewed after work had begun, and the high estimated cost of the Fayetteville classroom building; DFA explained that projects under $250,000 are not reviewed and that the larger project was still in design and would later seek a guaranteed maximum price. The committee also reviewed two DHS discretionary grants: one for targeted youth advocacy in southwest Arkansas and another adding $582,000 for family-centered treatment training and implementation. In the services contract section, members discussed construction-related contracts, including an ASMSA electrical scope increase tied to three-phase power requirements and the U of A Fayetteville architect contract for the classroom building. Out-of-state contracts included major items such as ACT Education’s $17 million amendment to provide required pre-ACT testing for 9th and 10th graders, a $12.5 million DFA contract for rural health transformation grant management, DHS’s $16.5 million EBT services contract with updated chip-card and fraud-prevention features, and ADH’s special procurement for the Behavioral Risk Factor Surveillance System survey. The committee also reviewed U of A system consulting contracts for financial advisory and sponsorship strategy work, with university officials saying the outside expertise was needed for specialized planning and revenue-generation efforts. In-state contracts covered corrections reentry services, nursing board investigations, foster care and child welfare services, DHS office janitorial work, emergency management radio system expansion, veterans’ home nursing staffing, and UAMS grants consulting. A lengthy exchange centered on the Department of Corrections’ reentry housing contract, with members pressing officials about vacant beds and urging fuller use of the program, while corrections staff said placements depend on screening and eligibility. Another discussion addressed the balance between out-of-state and in-state contracting, with a member noting the large dollar volume going to out-of-state vendors and asking whether Arkansas vendors receive any preference; State Procurement said current law does not allow an in-state preference. The committee approved the supplemental agenda, the methods of finance, the alternative delivery project, the discretionary grants, and the contract lists, and then received routine reports and an emergency action report before adjourning.

Transcript Highlights:

• their base price to maintain their<00:22:02.320><c> sales</c><00:22:02.720><c> price</c><00:22:03.600
• </c> Department of Medicaid services estimate Department of Medicaid services estimate of<00:31:31.200
• </c> you put into that, you it's estimated you put into that, you it's estimated that<00:50:08.960><c
• </c><01:01:45.680><c> um</c> Um people will find lower prices um Um people will find lower prices um
• Uh, DRA estimated $922 million.

Committee: House Ways and Means

Summary: The committee heard testimony on House Bill 1596, which would raise New Hampshire’s cigarette excise tax from $1.78 per pack to about $2.80, using an inflation-based adjustment since the rate was last set in 2008. Representative Jerry Stringham, the bill’s sponsor, said the measure would keep New Hampshire competitive with neighboring states, generate revenue, and help offset other budget pressures. He also described the bill as repealing an income-based premium charge in Medicaid/CHIP-related programs and restoring cuts to the University System of New Hampshire, arguing that the combined package would still leave the state in a positive fiscal position. He said the tobacco tax increase would likely have some cessation effect but would remain low relative to other New England states, and he cited prior testimony from health groups supporting a larger increase. Members questioned the sponsor about how the new rate was calculated, the prior tobacco tax reduction and restoration, whether tobacco companies would absorb or pass on the tax, and the fiscal note’s estimates for Medicaid premium revenue and UNH funding. Stringham said he used Bureau of Labor Statistics inflation data, that the earlier 10-cent reduction did not produce the expected sales increase, and that the current bill would eliminate the premium charges now in the budget. He later clarified that the Department of Medicaid Services had updated the revenue estimate, but said the bill still showed a surplus overall. He also said the federal government already imposes a $1-per-pack tax and that New Hampshire would remain below neighboring states even after the increase. Two public witnesses testified in opposition to the tax increase. Anna Bettincourt, a tobacco category manager, argued that higher tobacco taxes would unfairly target smokers, reduce New Hampshire’s tax advantage, and likely shift purchases to other states or illicit markets rather than reduce use. She said tobacco companies generally do not lower prices and that Massachusetts’ flavor restrictions had not eliminated sales. In response to questions, she maintained that a smaller increase would still be harmful and that enforcement problems make bans ineffective. The sponsor and some members countered that smokers impose higher health costs and that tobacco taxes are a policy tool for both revenue and public health. No vote or final committee action was taken in the portion of the meeting provided.

Transcript Highlights:

• And according to the National Association of Home Builders, every $1,000 increase in a home's price prices
• So a 5% jump would price out thousands of Californians.
• Not only have imports pushed sale prices down, but feedstock prices are artificially higher.
• Not only have imports pushed sale prices down, but feedstock prices are artificially higher.
• E85 is typically priced $1.50 to $2 per gallon lower than conventional gasoline.

Summary: The committee heard AB 839, which would allow up to three sustainable aviation fuel projects to qualify for expedited CEQA judicial review. The author and airline and airport supporters argued SAF is a key emissions-reduction strategy for aviation and that California needs to signal investment certainty after prior project litigation. Environmental Justice and Earthjustice opposed, saying the bill weakens the public’s ability to challenge polluting projects and that SAF facilities can harm already overburdened communities. The committee later took a roll call on the bill and it was held on call after a 3-0 vote, with the motion being due pass to Judiciary. Members then took up AB 762, which would ban the sale of disposable nicotine vapes in California. The author and a broad coalition of waste, public health, local government, and environmental groups said the devices create fire hazards, add lithium batteries to the waste stream, and burden local recycling and hazardous waste systems. Opponents, including retailers and business groups, argued the bill would mainly affect a small legal market while the illicit market would continue to supply most disposable vapes, and warned of unintended consequences. After discussion about illicit sales, EPR ideas, and reuse alternatives, the committee voted 2-2 on the motion to pass as amended to Revenue and Taxation, so the bill was kept on call. The committee also heard AB 907, which would compensate the six local air district representatives who serve on the California Air Resources Board the same as other board members. The author and supporters said the change would improve equity and help ensure local representation on CARB, and no opposition was presented. The chair expressed support, noting similar legislation had passed the committee previously, and the bill was held for a later vote once quorum issues were resolved.

Transcript Highlights:

• It's low commodity or crop prices.
• So price-related. Next slide, please.
• . wheat, what's the price result?
• These are estimates. These are estimates that we did back in 2019.
• Steel prices reacted on the stock market.

Summary: The House Agriculture and Natural Resources Committee held an interim work session focused on Washington agriculture’s viability, workforce, and competitiveness. Director Derek Sanderson of the Washington State Department of Agriculture and WSU Dean Raj Kosla described the size and diversity of the state’s farm sector, declining farm numbers, major export markets, and pressures from labor costs, low commodity prices, trade barriers, drought, regulatory burdens, and pests and disease. Kosla emphasized WSU’s land-grant role in education, research, and extension, including precision agriculture, broadband needs in rural areas, and the need for state support to help producers adopt new technologies and train the next generation of agricultural workers. Members asked about retaining farmland, increasing workforce capacity, and the role of precision agriculture. Kosla said precision agriculture can help address labor shortages and water scarcity, but adoption is limited by cost and rural broadband gaps. He explained precision agriculture as tailoring inputs to the right place, time, amount, and manner, and said WSU is working on low-cost sensor technologies and other innovations. Members also asked about how widely precision agriculture is used and whether it improves farm bottom lines; Kosla said adoption varies by tool and that he would follow up with more data. The committee then heard from Dr. Randy Fortenberry of WSU’s Impact Center on an agricultural competitiveness study and the effects of tariffs and trade. He reported that Washington’s competitiveness has generally declined relative to peer states in dairy, grapes, hops, apples, and wheat, with potatoes as the main bright spot. Surveyed producers said a substantial share of revenue is tied to regulatory compliance, with labor-related costs a major driver, and small diversified farms reported land access, capital, and profitability as bigger barriers than regulation. On trade, Fortenberry said Washington agriculture is highly export-dependent and vulnerable to retaliation, citing past losses in wheat, apples, pulses, and cherries when tariffs disrupted markets, while noting current uncertainty around China and India. The committee asked follow-up questions about compliance time, peer-state comparisons, and regulatory burdens; no votes were taken, and the department said it plans an interim report by the end of the year and a final report by June 2026.

Transcript Highlights:

• Can you walk us through those estimated costs? Uh, hold on one second.
• Can you estimated costs are. Yes. Okay.
• So, do I think you did this last session for us, but what is the estimate to staff?
• We have one pricing effect for that.
• </c> the document and negotiate the pricing. the document and negotiate the pricing.

Summary: The committee heard from the Department of Corrections first about Wellpath’s medical services contract and the contractor’s Chapter 11 bankruptcy. DOC officials said Wellpath’s reorganization plan was confirmed in May 2025, the contract was automatically assumed, and services have continued without lapses. They said DOC has not seen any reduction in care, staffing problems, or known impact on Kentucky operations, and that DOC and health services staff meet with Wellpath almost weekly. Members asked whether “emergence” meant discharge from bankruptcy; staff clarified that Wellpath has not yet been discharged and is still in the process of paying debts. The discussion then shifted to the Department of Juvenile Justice’s proposed high-acuity juvenile mental health treatment facility. DJJ said the facility is still in the conceptual and preliminary programming stage, with no full design funding yet and no entry into the formal A/B process with DECA. The proposed facility would have 24 beds total, split into 16 clinical beds and 8 assessment/stabilization beds, and would need to separate males and females as well as high- and low-risk youth under Senate Bill 162. Officials said the concept was developed with DJJ and CHFS mental health staff and outside design experts, and that the project was submitted in the capital plan for consideration. Members questioned the need for the facility, the estimated construction and staffing costs, and whether the state has enough youth to justify it. DJJ said the number of youth needing this level of care changes frequently, that they currently have one youth in Pennsylvania and typically send one to five youth out of state each year, and that out-of-state placement is increasingly difficult. Officials argued that a dedicated facility would reduce delays, keep youth closer to home, and avoid the need to retrofit multiple detention centers. Some members expressed concern that the projected operating costs seemed high compared with the small number of current out-of-state placements, and asked for more information on annual out-of-state spending and the number of youth who would qualify for the facility.