Transcript Highlights:

• When we have some, maybe, you know, illegal or other activity, can you just speak a little bit to how
• I can, I have some information if I can look at my notes on... ...and the illicit activity.
• in parts of the state, even where there is legal activity, you also see some of the illicit activity.
• We are still actively hiring up our division as we speak. I think the funding...
• And the Attorney General is back in active litigation.

Committee: Senate Rules

Summary: The Senate Committee on Rules met to consider several gubernatorial appointments and routine committee actions. The committee first approved, by unanimous 5-0 votes, appointments to the Alfred E. Alquist Seismic Safety Commission, the appointment of Lee Herrick as California Poet Laureate, a reference of bills to committees, and floor acknowledgments. Members then heard testimony from Trista Gonzalez, nominee to lead the Department of Tax and Fee Administration, who described her long career in tax administration, efforts to improve taxpayer compliance and service, readiness for the state’s lithium extraction tax, and the department’s work on online sales tax, cannabis, and tobacco enforcement. Senators asked about responsiveness to legislators, small business support, accountability, and enforcement; public commenters from tax and accounting groups supported her nomination. Her appointment advanced to the full Senate on a 5-0 vote. The committee also heard from Aaron McGuire, nominee to lead the Board of State and Community Corrections. He discussed the board’s expanded responsibilities, including annual detention-facility inspections, large grant programs for violence intervention and reentry, and the new in-custody death review division. Members questioned him about grant oversight, audit transparency, statutory authority for in-custody death reviews, and conditions in local detention facilities, especially in Los Angeles County juvenile facilities. McGuire said the board uses screening, site visits, audits, and compliance reviews to reduce fraud and ensure grant funds are used appropriately, and that trailer bill language had clarified access to records for death reviews. He also said staffing shortages remain a major issue in some juvenile facilities and that the board continues to work with counties and the courts to improve conditions. Public support came from nonprofit reentry providers and Giffords. His appointment also advanced to the full Senate on a 5-0 vote.

Transcript Highlights:

• I can, I have some information if I can look at my notes on... ...and the illicit activity.
• in parts of the state, even where there is legal activity, you also see some of the illicit activity.
• We are still actively hiring up our division as we speak. I think the funding...
• And the Attorney General is back in active litigation.
• And the Attorney General is back in active litigation.

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

Transcript Highlights:

• Did I have to activate the amber lights?
• ,</c> says when the red lights are activated, says when the red lights are activated, obviously<00:17
• </c> approaching it, I have to activate approaching it, I have to activate lights.<00:18:13.280><c> I
• </c> cuz the red lights are not activated. cuz the red lights are not activated.
• Scenario, are amber lights activated?

Transcript Highlights:

• :49:59.520><c> of</c> Shared mechanisms include activation of Shared mechanisms include activation of
• , which is more intense in active young males.
• </c><02:21:35.040><c> or</c><02:21:35.280><c> hyper</c> catakolamine activity or hyper catakolamine activity
• </c> immune response is already very active immune response is already very active during<02:39:22.560
• </c> active in the recommendations. active in the recommendations.

Summary: The committee met as a special House committee on COVID response efficacy, noted absences, and restated its mission to review New Hampshire’s pandemic response, including federal guidance, federal funds, emergency use authorization vaccination efforts, long COVID treatment, patient bill of rights implementation, and vaccination policies. The main business was discussion of a proposed letter or report language concerning current COVID vaccine recommendations for young children, especially those under age two, and how to support any conclusions with cited scientific and state sources. Representative Polozov argued that the committee should ask the governor or agencies to reconsider current recommendations, saying the committee should focus on whether vaccination is needed for that age group, whether it is effective, and whether the risks outweigh the benefits. He said he had distributed articles and wanted the committee to pair its conclusions with scientific and statistical data. Other members asked him to identify the specific New Hampshire DHHS and American Academy of Pediatrics sources for the recommendation, clarify the age range being discussed, and separate any evidence about adverse effects in other age groups from the infant/toddler demographic so the letter would be transparent and not misleading. Members generally agreed the letter should be carefully sourced and refined, with citations for each claim. The chair said the committee would treat the request as urgent and try to finalize a version by the next meeting, noting that some members would be traveling. The committee also discussed scheduling additional testimony in September and October, possibly with extra meetings, to continue gathering evidence and to hear from witnesses. The chair then began reviewing supporting articles, including studies he said were new since the 2024 report, and introduced a 2025 South Korea cohort study and another 2025 Italian cohort study as examples of the evidence he wanted to incorporate into an updated 2026 report.

Transcript Highlights:

• First, just a recap of the activity that we've had in our grant programs this biennium.
• Total grants active currently are 108, with total grants...
• There are a number of activities related to this analysis that have been included...
• We'll start to see some of this activity go... ...by the end of this year.
• We'll start to see some of this activity going if we get a few more.

Summary: The committee received a compliance and budget update on Industrial Commission agencies and programs, including the Industrial Commission administrative office, the Oil and Gas Research Program, the Clean Sustainable Energy Authority, the State Energy Research Center, the Research Technology Park grant program, and related funds. Staff reviewed spending and balances for items such as electric grid resiliency grants, lignite research, enhanced oil recovery, the salt cavern business case study, and the new NDSU research and technology park grant. Members also discussed timing, carryover balances, matching requirements, and how some programs are structured to reimburse projects over several years rather than spend funds immediately. Karen Tyler of the Industrial Commission described the agency’s administrative budget, the grant management system nearing completion, and the transition to standalone audits and staffing after separating from other agencies. She also outlined the status of active grant rounds across lignite, oil and gas, renewable energy, outdoor heritage, and clean sustainable energy programs. Members asked about the length of active grants, demand for clean energy funding, and the possibility of future grant rounds. Tyler and members also discussed the salt cavern study, the need to better define its commercial value, and the research technology park grant’s cash-match requirement. Ron Ness then testified on enhanced oil recovery and broader oil and gas market conditions. He said North Dakota production remained steady, but future growth depends on infrastructure, longer laterals, and better use of natural gas and carbon dioxide for EOR. He described the state’s EOR grant round, the use of federal DOE funding to replace part of a state-funded project, and the expectation of additional grant rounds. Members asked about CO2 supply, storage, and the economics of using legacy fields and pipelines to extend oil production and support agriculture and industrial uses. The committee also heard from Bank of North Dakota President Don Morgan, who reviewed the bank’s mission, governance, lending verticals, disaster programs, and new initiatives. He said the bank is seeing deposit growth flatten and is responding to fintech competition by focusing on liquidity, risk management, and a new payment infrastructure initiative called Rough Rider Coin, which he emphasized is not crypto and not a public coin, but a banking payment rail for North Dakota institutions. Members asked about student loan rates, disaster lending, and how the bank’s lines of credit and balance sheet capacity are affected by deposit trends. Morgan said the bank remains profitable and continues to support agriculture, commerce, and industry through participation loans, student lending, and state-directed programs.

Transcript Highlights:

• But why is that the extracurricular activity?
• You want to participate in activities, you pay for those activities. Thank you.
• And again, I know some school districts don't charge for their activities.
• To participate in any activity in West Ada, you're doing a pay-to-play plus additional fees.
• , or a combination of these activities.

Transcript Highlights:

• Regarding our enforcement activities, we have some statistics here.
• Regarding our enforcement activities, we have some statistics here.
• But we have audit activities and we have compliance activities.
• You know, a key feature of our compliance activities is referrals from the public and from lawmakers.
• In addition, our audit activities last year brought in over $850 million, and our collection activities

Transcript Highlights:

• It has probably, it will be correct to say, opioid-like activity, while 7-OH is far more important in
• The risk rises with higher-potency opioid-active products when people combine them with alcohol, with
• It is actually an opioid-active substance that is sold in consumer packaging.
• Of note, FDA is actively studying the botanical.
• It's sort of like how CBD activates all these different receptors. 7-OH is very specific.

Summary: The committee held an informational hearing on kratom and 7-hydroxymitragynine (7-OH), focusing on public health risks, overdose deaths, and regulatory gaps in California. The chair opened by noting that FDA and CDPH consider kratom and 7-OH products unlawful, yet they remain widely sold in smoke shops, vape stores, gas stations, and convenience stores. Members referenced AB 1088, which would be considered later, and said the hearing was intended to clarify the science, medical perspective, and whether stronger safeguards are needed. The first panel featured a toxicology expert, state and local public health officials, an emergency/addiction physician, a medical examiner, and county health representatives. Witnesses from CDPH and Los Angeles County described rising deaths and enforcement actions, including statewide advisories, retailer letters, and product removals from manufacturers, wholesalers, and retailers. Medical testimony emphasized that 7-OH acts much more like an opioid than traditional kratom leaf, can cause dependence, withdrawal, and respiratory depression, and may require naloxone, buprenorphine, or methadone in overdose or withdrawal cases. Local officials said enforcement is difficult because packaging is inconsistent, testing capacity is limited, and counties lack resources and statewide infrastructure; they generally favored a centralized state framework if regulation is pursued. Committee members asked about testing, age restrictions, scheduling, and whether a distinction between kratom and 7-OH could be enforced. Witnesses said forensic labs can potentially test for 7-OH but validated assays are not routine, emergency departments cannot readily distinguish exposures, and local health departments do not have the lab capacity to verify product labels. Several officials warned that a ban or abrupt scheduling could push products into the black market and discourage research, while others argued that current prohibition and enforcement are the most protective approach because legalization or age-limited regulation could create confusion about legality and safety. The second panel included kratom and 7-OH advocates and industry representatives, who argued that natural kratom leaf and concentrated or synthetic 7-OH are different products and should be regulated differently. They supported age-gating, labeling, testing, and packaging rules for kratom leaf while opposing a ban on the botanical. They said 7-OH is used by many adults for pain relief or harm reduction, and that prohibition would drive consumers to illicit markets and worsen harm. Committee members pressed them on whether 7-OH is more potent than kratom, the availability of testing, and whether any safe dose is known. The hearing ended without a vote or formal action, with the chair noting the issue will continue to be considered in future legislation.

Transcript Highlights:

• Clayton Lake slows down, so it just depends on the type of activity in the park.
• On season and activities. Mr.
• We get a larger percentage that comes in from the Air Force off of active duty.
• They're active duty; they're exempt.
• We're talking about a museum that's going to be very active, probably more.

Transcript Highlights:

• Uh slide 11 is upcoming activities.
• Um, activities start at 09 a.m. and we're doing two evolutions.
• , no sand and gravel activities, etc.
• So, you know, first, we don't have budget for these types of activities.
• So in terms of day to day activities, right?

Committee: House Radioactive & Hazardous Materials Committee

Transcript Highlights:

• Administrative Services is here to talk to us about the annual report on statewide internal audit activities
• happy to be with you today to talk about our fiscal year 2025 report on statewide internal audit activities
• But all active audit committees had at least one external member as required, and most have more, and
• As noted in the recent presentations to this committee, the Audits Division is actively reviewing and
• Fraud is an illegal activity and needs to be reported to law enforcement.

Summary: The Joint Interim Committee on Legislative Audits met on June 17 for informational presentations. The Department of Administrative Services, through Chief Audit Executive Eli Ritchie, gave an overview of statewide internal audit requirements and the fiscal year 2025 report. He explained the difference between internal and external audit, described Oregon’s statutory and rule-based internal audit structure, and reported that 30 agencies had internal audit functions, with most meeting required standards. He said 73 audits and 49 advisory/consulting engagements were completed statewide, with strong compliance overall, though a few agencies were rebuilding audit committees after vacancies. No committee questions were raised after the presentation. The Secretary of State’s Audits Division then presented its Government Waste Hotline annual report. Director Steve Bergman and audit manager Olivia Rekhed described changes made to align the hotline with statute, including renaming it the Government Waste Hotline, creating a review panel, improving anonymity protections, removing fraud reporting from the hotline’s scope, and adjusting reporting timelines. They said hotline volume increased modestly in 2025, most reports were referred elsewhere or closed for insufficient evidence, and two reports were substantiated, including questioned costs of about $856 for personal use of a state vehicle and about $2.9 million tied to the Preschool Promise program. Committee members asked about hotline staffing, cost, anonymity, and follow-up on findings; staff said the hotline is lightly resourced, uses a contracted intake service, and referrals or recommendations are followed up through management letters and later reviews. The committee also heard an audit of the Oregon Parks and Recreation Department’s safety inspections and asset tracking. The Secretary of State’s office reported that OPRD had not consistently conducted or documented quarterly OSHA safety inspections and had incomplete asset records, including missing acquisition dates and costs for many assets. The audit made eight recommendations covering safety inspection policies, asset management guidance, tagging, reconciliations, disposition controls, training, and a new asset management system; OPRD agreed to all recommendations. OPRD officials said they had already begun training staff, improving inspection procedures, and working toward a replacement asset system, while noting operational challenges from a large, dispersed park system and manual processes. Committee members asked about what kinds of assets are tracked, how tagging works, whether items were actually being lost, and how much tracking is necessary for low-value tools; OPRD said the main issue was inconsistent classification and documentation rather than widespread loss. The meeting ended with no votes or formal actions taken.

Transcript Highlights:

• And so we actively wanted them to come. Bonnie was a part of that.
• And so we actively wanted them to come. Bonnie was a part of that.
• They do activities together.
• Smaller group activities, so they can find somebody.
• Smaller group activity, so they can find somebody.

Committee: All TASK FORCE ON AUTISM

Summary: The committee first approved the minutes from November 17 by motion and voice vote. It then heard a presentation from Arkansas State University on its inclusive postsecondary education programs, HOWL and ATLAS, led by Dr. Kristen Johnson and Shane Broadway. The programs serve students with intellectual and developmental disabilities, including autism, by providing on-campus living, academic support, life-skills training, financial literacy, internships, employment support, and community integration. Johnson explained that HOWL is a comprehensive transition program that does not lead to a degree but is eligible for financial aid, while ATLAS is degree-seeking and provides additional supports. She reported strong outcomes, including high goal attainment and a majority of graduates working full time, and emphasized that the programs are designed to help students build autonomous adult lives. Members asked about recruitment, eligibility, costs, school outreach, business partnerships, and transition planning. Johnson said the programs have done extensive outreach through IEP meetings, transition symposia, email blasts, and school visits, but that awareness remains a challenge. She identified major roadblocks as business concerns about liability, fragmented collaboration, and difficulty navigating funding streams such as vocational rehabilitation and Medicaid. She also said more coordinated statewide communication and coalition-building are needed, and noted that ASU is helping launch a state alliance for similar programs, with new programs opening at ASU Mountain Home and the University of Arkansas Pine Bluff. The committee then heard from the University of Central Arkansas about Project Ascend, a new low-sensory living-learning community for neurodiverse students in Hughes Hall. Dr. Debbie Daly and Jeremy Gillum described it as a voluntary, self-identified program focused on community building, belonging, and retention rather than remediation or degree planning. The program has hosted a few low-sensory social events and plans to expand outreach through campus tours, orientation, and targeted communications. Members asked about recruitment, participation, success measures, and how to avoid duplicating ASU’s efforts; UCA said it is still in its infancy and will measure success mainly through participation, retention, and student engagement. The meeting ended with general support from members, discussion of collaboration across institutions and agencies, and adjournment of the task force.

Transcript Highlights:

• To be eligible, school districts must report the amount of excess costs and the specific activities or
• On new development activities to help pay for the increased services that will be required because of
• So trying to be... ...by the growth activities, but it's offset by declining enrollment.
• Where there is growth, that can pay for the construction activities and the facility activities, and
• Construction activities and the facility activities, and that matters.

Summary: The committee heard testimony on several education bills. SB 5841 would require students’ high school and beyond plans to show completion of at least one FAFSA or WASFA application, or a parent/guardian opt-out. The sponsor and supporters said it would reduce barriers to postsecondary education, improve financial aid completion, and bring more students and federal dollars into the state. School groups opposed it, warning it would add an unfunded administrative burden and create verification challenges, especially for small districts and families with undocumented students. Senators discussed data-sharing from the Washington Student Achievement Council and noted the bill’s connection to existing FAFSA outreach efforts. The committee then took testimony on SB 5922, which would let districts petition OSPI to transfer money from transportation vehicle funds to other district uses if they reduce their fleet because of enrollment declines. The sponsor said the bill would free up unused bus funds for other pressing needs. Members asked about whether districts could shift to smaller vehicles and how the funds could be used. The committee also heard SB 5858, which would move the pupil transportation safety net for special passengers into statute. Supporters from OSPI, districts, school directors, and PTA said the program is essential for transporting students with disabilities, homelessness, or foster care needs, and that current funding is far below demonstrated need. No votes were taken on these bills. Finally, the committee heard SB 5943, which would allow limited use of school impact fees for modernization and, in districts under binding conditions or enhanced financial oversight, for up to 25% of operations and maintenance. The sponsor and one superintendent argued it would help districts with aging buildings and new state mandates like safety and energy-efficiency requirements. Builders, business groups, and school coalition representatives opposed the bill, saying impact fees should remain tied to growth-related capital costs and warning it could worsen housing affordability and weaken the nexus required for impact fees. The chair closed by noting the session’s budget constraints and the committee adjourned after the hearings.

Transcript Highlights:

• </c> activities some of these activities activities some of these activities could<00:09:59.920><c> include
• FFA member then as an active FFA member then as an agricultural<00:11:41.360><c> education</c><00:11
• There aren't many extracurricular activities available that most schools don't already offer.
• And in the back it talks a little bit about the activities and location. So welcome, S.
• <00:31:57.639><c> um</c><00:31:58.320><c> and</c> activities um and activities um and location<00:32:

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• She said she has been a registered dietitian for 40 years, but started as an active-duty Army dietitian
• She said they change every two years, so it is constant, and that active-duty people are very important
• It requires an active, unencumbered license and good standing.
• A dietitian must hold an active, unencumbered license in their home state to be eligible for the compact
• Ironically, she could have volunteered to begin immediate active duty had she chosen because she only

Bills: HB2088

Committee: House Postsecondary Education & Workforce

Keywords: nutritional health, dietetic professionals, licensure compact, interstate practice, healthcare regulation

Transcript Highlights:

• 4,000 of our children by offering stress management tools, social support, and physical wellness activities
• with the YMCA in keeping our children safe, protected, and highly progressive in their learning activities
• </c><00:02:25.680><c> and</c><00:02:25.840><c> they</c> physical wellness activities and they physical
• wellness activities and they are<00:02:26.160><c> joined</c><00:02:26.519><c> today</c><00:02:26.920
• please welcome them the YMCA activities please welcome them the YMCA and<00:02:46.400><c> do</c><00:

Transcript Highlights:

• Our focus is fair, efficient revenue collection and enforcement activities that protect compliant businesses
• Regarding our enforcement activities, we have some statistics here.
• But we have audit activities and we have compliance activities.
• You know, a key feature of our compliance activities is referrals from the public and from lawmakers.
• In addition, our audit activities last year brought in over $850 million, and our collection activities

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• It is actually an opioid-active substance that is sold in consumer packaging.
• Of note, FDA is actively studying the botanical.
• FDA is actively studying the botanical.
• It's sort of like how CBD activates all these different receptors. 7-OH is very specific.
• And by the way, 7-OH does not activate at all the beta-arrestin pathway that is a...

Committee: Senate Health

Summary: The committee held an informational hearing on kratom and 7-hydroxymitragynine (7-OH), focusing on public health risks, overdose deaths, and regulatory gaps in California. The chair opened by noting that FDA and CDPH consider kratom and 7-OH products unlawful for consumption, yet they remain widely sold in smoke shops, vape stores, gas stations, and convenience stores. The hearing was framed as part of ongoing legislative work, including a future review of AB 1088, and members emphasized the need to weigh potential benefits against risks and consider whether stronger safeguards are needed. Expert testimony from a toxicology professor and several public health and medical officials described kratom as a plant with multiple alkaloids, with 7-OH identified as the more potent opioid-like compound associated with tolerance, dependence, withdrawal, and respiratory depression. CDPH reported 362 kratom-related overdose deaths in California from 2019 to 2023 and 15 deaths involving 7-OH, while Los Angeles County officials described unexplained deaths in young adults that led them to expand toxicology testing and identify 7-OH as a common factor. County and state public health representatives said they have issued advisories, contacted retailers, removed products from shelves, and taken enforcement actions, but they stressed that local enforcement is patchy, under-resourced, and limited by unclear jurisdiction and lack of testing capacity. Medical witnesses said patients are presenting with 7-OH dependence and withdrawal in ways similar to fentanyl-related cases, sometimes requiring buprenorphine, methadone, or repeated naloxone. They argued that unregulated retail sales and misleading marketing make the products especially risky, and that a statewide framework would be more effective than a patchwork of local ordinances. Some officials said the safest current policy is to keep kratom and 7-OH unlawful for consumption, while others said any new regulation would need resources, packaging rules, and clearer authority for enforcement. Industry and consumer advocates urged the committee to distinguish natural kratom leaf from concentrated or synthetic 7-OH products. They argued that kratom leaf has long-standing use, that 7-OH should be targeted rather than the whole plant, and that regulation should focus on age limits, labeling, testing, serving-size caps, and restrictions on adulterated products rather than prohibition. Several speakers warned that bans could push demand to the black market and reduce access for people using the products for pain relief or harm reduction, while critics of the industry said the products are being marketed deceptively and that more comprehensive regulation is needed.

Transcript Highlights:

• fiscal year 2026 to provide for supplementing certain existing appropriations and for certain other activities
• fiscal year 2026 to provide for supplementing certain existing appropriations and for certain other activities
• fiscal year 2026 to provide for supplementing certain existing appropriations and for certain other activities
• fiscal year 2026 to provide for supplementing certain existing appropriations and for certain other activities
• Certain other activities and projects. House No. 5348.

Summary: The House convened, suspended Joint Rule 12 to allow consideration of a petition by Mark J. Cusack concerning military credible service for judges, and referred it to the Committee on Public Service. The House then took up several local bills, including measures for Harwich affordable housing, a Charlemont tax on commercial recreation services, a Millis senior property tax exemption for school building construction projects, and Falmouth funding for low-pressure pumps in future sewer service areas. After suspending Rule 7A, the House ordered those bills to a third reading. The chamber also passed to be engrossed several bills on third reading: designating a Hopkinton bridge as the Major General Frank D. Merrill Memorial Bridge, amending the Nantucket town charter, creating a disability-related real property exemption in Swampscott, amending Arlington’s means-tested senior property tax exemption, and revising the Town of Reading Home Rule Charter. No objections were raised during these actions, and the bills advanced unanimously by voice vote. The House then considered House No. 5348, a fiscal year 2026 supplemental appropriations bill reported by Ways and Means with a total appropriation of $300 million. The House suspended the rules, ordered the bill to a third reading, passed it to be engrossed, and then approved it on final passage by the required separate constitutional vote, with three members voting in the affirmative and none in the negative. The House also adopted an order to adjourn until Wednesday at 11 a.m., and then adjourned.

Transcript Highlights:

• It makes certain activities illegal, and then it affects a number of industries.
• So as we were thinking about the impacts, we bifurcated those into the activities that are prohibited
• Okay, well, that's an activity that would become unlawful. That industry, if you will, goes away.
• And the direct impact, the activity goes away, the industry goes away, so there's an income tax effect
• We're getting closer and closer to my favorite activity of group editing in a live meeting.

Summary: The Financial Estimate Committee met on July 6, 2026, to begin work on the financial estimate for IP 28, after reviewing the statutory process and confirming that only IP 28 had cleared the signature threshold for consideration. Staff explained the committee’s duties under ORS 250.125 and the timeline for draft statements, public hearing, and final adoption. The committee also designated Carol Moreno C. Fuentes to file the committee’s eventual statements. Staff from the Department of Administrative Services and the Legislative Revenue Office presented preliminary analysis of IP 28, describing major uncertainties in estimating impacts because the measure is not a tax law change and would affect multiple industries and government functions. Preliminary figures discussed included an estimated $56.5 million loss in the current biennium and $6.7 million in reduced expenditures, with larger projected revenue losses of roughly $244.1 million to $258 million and reduced expenditures of $30.7 million to $34.9 million in 2027–29, plus $87.8 million to $88.3 million in increased expenditures. Analysts said the biggest effects would likely involve agriculture, fish and wildlife, hunting and fishing, local government enforcement, and possible shifts in state funding, but many impacts remained difficult to quantify. Committee members raised concerns about local government costs, law enforcement and prosecution burdens, impacts on the hospitality and recreation sectors, possible effects on tribal governments and treaty rights, and whether the measure would affect shellfish and crabbing. They also discussed the Humane Transition Fund, subsidies, possible litigation costs, and whether the statement should include broader uncertainty language and multiple scenarios. Members generally agreed the draft should be revised to better reflect uncertainty, clarify assumptions, and possibly use bullets or other formatting to improve readability. No vote was taken. The committee agreed to treat the current draft as a working version, with staff to revise it based on the discussion and return an updated draft before the next meeting scheduled for July 17 at 2 p.m., with both in-person and virtual participation available.