Transcript Highlights:

• Okay, we are going to shift to water, and I'm going to ask Senator Trudeau, our vice chair for capital
• wanted to bring up that last year we socialized housing, which was a big area of investment for the capital
• And this year, I wanted to talk about another shared priority and major investment in the capital budget
• think we're going to go over some projects that we've been working on in the state and funding to the capital
• think we're going to go over some projects that we've been working on in the state and funding to the capital

Summary: The Ways and Means Committee held a work session covering the state revenue outlook, caseload forecasts, wildfire costs, budget balance, tort liability, water supply, and pension policy. The Economic and Revenue Forecast Council reported modest near-term U.S. growth, no near-term Washington employment growth in 2026, continued personal income growth, and elevated inflation, with tariffs and federal policy cited as major risks. Revenue forecasts were slightly improved for the current biennium by about $105 million but down about $185 million for the next biennium. Members asked about income inequality and housing permits; staff said personal income is an aggregate measure and housing production remains below long-term needs. The Caseload Forecast Council then reported that most forecasts were unchanged or only slightly changed, but several programs increased, including Washington College Grant, Working Connections, aged/blind/disabled cash grants, nursing homes, home and community services, and developmental disabilities personal care. The largest policy-driven change was in Medicaid low-income adult caseloads, where federal H.R. 1 was projected to reduce coverage substantially through narrower eligibility, community engagement requirements, and shorter eligibility periods. The committee also heard a wildfire funding update and a 2025 fire season review. Staff explained that the state budgets $93 million annually for suppression and uses supplemental appropriations for costs above that level, with an estimated state supplemental need of about $139 million for the current year. Department of Natural Resources officials said 2025 fire activity remained below the 10-year average in acres burned, but fires were more complex and closer to communities, contributing to higher residence loss. They described expanded use of aircraft, firefighters from other states, corrections crews, and the Arcadia 20 hand crew, and said the state did not need National Guard ground support this year. A budget preview then showed that the near general fund outlook had worsened after vetoes, lapses, and forecast changes, and that maintenance-level costs alone would leave a projected negative balance by fiscal year 2027 and about $4.3 billion by fiscal year 2029, before any policy decisions. Jason Seams, the state risk manager, reported a sharp rise in tort claim costs, with indemnity expenses nearly doubling from fiscal year 2023 to 2025 and DCYF accounting for most of the increase. He said the state self-insurance liability account has run deficits for four straight biennia and is now facing nearly $600 million in deficits, driven largely by a surge in DCYF claims, especially juvenile rehabilitation and long-running sex abuse cases. Members asked about the role of old claims, comparisons with other states, excess insurance, and whether more Attorney General staff could reduce special assistant attorney general costs. The committee then shifted to water policy, hearing from tribal leaders, Ecology, and the Washington Water Trust. Tribal witnesses emphasized overappropriation, declining flows, climate impacts, and the need for legislative oversight and tribal participation in water policy. Ecology described major projects in the Odessa sub-area, Yakima Basin, and Dungeness, along with the need for storage, recharge, conservation, and policy changes to support water supply development. The Washington Water Trust argued that climate change is reducing summer flows and that the state needs more funding, enforcement, and long-term commitment to restore instream flows. The final item was a pension update on LEOFF 1 surplus assets; staff reviewed two 2025 bills that would have merged or restructured the plan and used surplus assets, but neither passed, and instead the budget directed the Select Committee on Pension Policy to study the issue and report back.

Transcript Highlights:

• Representative Tara Lujan, I represent House District 48 here in the capital city.
• Regulation, a person is going to go back and talk to the capital 'S' service provider and say, "Hey,
• recommendation: budget for software as a normal operating expense rather than as an extraordinary capital
• That is not a capital expense.
• I have a sticker on my laptop here that says OPEX, not CAPEX because I feel strongly that the capital

Transcript Highlights:

• You've got some non-capital costs.
• And then you have your capital costs, depreciation, amortization. Those tend to be very small.
• That fund is then calculated for $60,000. 50% by volume per capita, you know, capitated payments, and
• Do we need to make capital investments? Do we need to upgrade equipment?
• Which I guess is a capital investment.

Transcript Highlights:

• Okay, if we're looking at I&S, that's for roads, bridges, those types of structures, capital projects
• However, a 2.5% growth cap could cut into maintenance of streets and other capital assets, which would
• However, 2.5% growth cap could cut into maintenance of streets and other capital assets, which would
• increase taxpayer costs in the long run. of streets and other capital assets, which would increase taxpayer
• And then they get together and decide as a community what their capital expenditures are going to be.

Bills: SB9

Keywords: property tax, ad valorem tax, voter-approval tax rate, no-new-revenue tax rate, tax rate calculation, Tax Code, local government finance, municipality, county, special taxing unit, sales and use tax, property tax cap, tax rollback, tax levy, maintenance and operations, debt rate, disaster relief rate, Texas Legislature, local taxing unit

Summary: The Senate Committee on Local Government met to hear Senate Bill 9, which would lower the voter-approval tax rate for certain local taxing units from 3.5% to 2.5%. Sen. Bettencourt, the bill author, argued the change would continue the state’s property tax reforms begun in 2019, slow local levy growth, and give voters more say over larger tax increases. He and supporters cited data showing property tax levies have grown faster than population plus inflation, and said the bill would help protect taxpayers while preserving the state’s broader investments in school tax relief, water, rural law enforcement, and ambulance funding. Supporters included the Texas Taxpayers and Research Association, the Texas Association of Business, the Texas Public Policy Foundation, and the Texas Association of Manufacturers. They said the bill would improve transparency, encourage more disciplined budgeting, and create certainty for homeowners and businesses. They argued that lower tax-rate growth would help attract and retain employers and investment, and that voters would still be able to approve higher rates when needed. Local officials and other opponents said the bill would constrain cities and counties facing rapid growth, inflation, infrastructure needs, and public safety costs. Testimony from county judges, city finance officials, firefighters, and urban county representatives emphasized pressures from jail operations, roads, water, EMS, police and fire staffing, and unfunded mandates. Several witnesses asked for carve-outs or exemptions for public safety and disaster-related costs, warning that a one-size-fits-all cap could force service cuts or shift costs elsewhere. The committee heard extensive questioning but no final vote or disposition on the bill was taken in the portion provided.

Transcript Highlights:

• to other programs and projects how advanced small modular reactors can be built and deployed in a capital
• to other programs and projects how advanced small modular reactors can be built and deployed in a capital
• It helps the investors' bottom line, but it doesn't do anything to the capital.
• owns seven nuclear plants and is the world's largest electric utility holding company by market capitalization
• And it's about securing our position as the energy capital of the world.

Bills: HB132, HB 11, HB14, HB132, HB1584, HB1606, HB5061, HB 1041, HB2286

Keywords: nuclear energy, Texas Advanced Nuclear Energy Office, energy policy, regulation repeal, state energy strategy, licensing, reciprocity, regulation, Texas Department of Licensing and Regulation, interstate agreements, advanced reactors, energy security, grant programs, HB 132, Texas Government Code Chapter 418, Public Information Act, confidential records, homeland security, foreign adversary, terrorism

Summary: The committee first took up pending business and quickly reported several measures favorably, including HB 12, SB 1361, SB 1705, SB 1749, SB 1897, SB 2344, SB 2566, HB 3809, and HB 4215, with most sent to the Local and Uncontested Calendar. HB 12’s substitute clarified a limited midterm review of regulatory agencies tied to Sunset Commission recommendations. SB 2696’s substitute changed med spa regulation from a license to a certificate, with training instead of an exam, plus background checks, continuing education, and two-year renewals. HB 3809 dealt with battery energy storage decommissioning and recycling, and HB 4215 was reported without a substitute. SB 1978, concerning interconnection of electric facilities in ERCOT and federal jurisdiction concerns, was reported out on a 5-3 vote after debate, but then the chair later announced the bill was withdrawn and left pending subject to the call of the chair. HB 1899 was also reported favorably, with one nay. A major portion of the meeting focused on HB 14, the advanced nuclear energy bill. Senator Schwertner described it as creating a Texas Advanced Nuclear Energy Office, a nuclear permitting coordinator, a development fund, a completion grant program, and a workforce development program. Testimony was sharply divided. Supporters, including representatives from Fermi America, Dow/X-energy, CPS Energy, Paragon Energy Solutions, Bridge to Nuclear, Aalo Atomics, and the Texas Association of Business, argued that Texas should lead in advanced nuclear, citing future baseload demand, data centers, industrial power needs, supply-chain development, and long-term energy diversification. Opponents, including Public Citizen, Texas Nuclear Watchdogs, Sierra Club, and individual citizens, argued the bill would subsidize unproven, expensive technology, create grants rather than loans, and expose taxpayers to major risk while doing little to meet near-term energy needs. Several members questioned whether the state should fund projects that may not produce grid power for years, and whether the bill’s grant structure and new office were justified. The committee also heard HB 5061, which Senator Schwertner said would prohibit unethical surveillance and misuse of confidential information by state contractors, create a confidential reporting system through the State Auditor’s Office, authorize Texas Rangers investigations, protect whistleblowers, and impose penalties including contract termination, fines, and contracting bans. No public testimony was offered, and the bill was left pending. HB 132, sponsored by Senator Hughes, would extend confidentiality protections for sensitive information to hostile acts by foreign adversaries; it was also left pending after no testimony. HB 1584 was then laid out, with Senator Schwertner explaining it would require utilities to maintain and update priority restoration lists for critical facilities after Hurricane Beryl exposed communication failures, but the transcript cuts off before any action on that bill.

Transcript Highlights:

• She has reduced Wall Street loss absorbing capital. requirements which help prevent bank failures in
• And we have capital standards, right? We do. What's broken about it?
• compliant with regulations that were at the risk of money that they could spend in the communities or capital
• I think that the cost of capital and the degree to which those Chinese companies are benefited from unfair
• capital practices relative to U.S. businesses is part of, as you say, the non-tariff barriers, the non-tariff

Keywords: legislation, housing affordability, financial regulation, public testimony, accountability, oversight

Summary: The meeting involved significant discussions around key legislative proposals, primarily focusing on various bills such as HB2 and SB5. The committee examined the implications of these bills on issues like housing affordability and financial regulation. Notable members engaged in debates, providing differing perspectives on the potential economic impacts of the proposed bills. The meeting witnessed public testimony, which included a call for accountability in government actions and oversight of current financial policies. Members echoed concerns about following through on commitments to address critical issues affecting everyday Americans.

Transcript Highlights:

• These releases often happen without considering capital.
• We still must support those capital costs.
• You have a lot of invested capital in future expansion capacity-wise.
• I'm not quite sure we're clear with the current statute that stipulates if you have investor capital
• However, I am telling you that most individuals willing to seek investor capital are the ones who engage

Bills: SB863, SB1190, SB1261, SB1413, SB1624, SB1662, SB1663, SB1855, SB1967, SB2124, SB2204, SB1623

Keywords: Edwards Aquifer, water conservation, reclaimed water, aquifer storage, environmental protection, water loss, municipally owned utilities, Texas Water Development Board, administrative penalties, water audit, water infrastructure, water supply, state water plan, water management strategies, water financing, municipal bonds, revenue bonds, public debt, obligations, TWDB

Transcript Highlights:

• Dear to all Texans visiting their capital today are Orlando Sanchez and the Texas Latino conservatives
• HB 4478 by Turner ruling determination of appraised district of capitalization rate to be used and appraised
• HB 4505 by Bella Montgomery with the establishment of the Workforce Housing Capital Investment Fund program
• HB 4774 by Smithy relating to the administration of perpetual care trust funds for capital improvements
• the State and Federal Relations HDR 126 by ASG designated Corrigan as the official timber products capital

Transcript Highlights:

• state of Texas and have long been champions for many of issues Dear to all Texans visiting their capital
• Aging 4478 by Turner Riddle in determination of a district of capitalization rate to be used in appraised
• on health public health hb, 4505 by bella, montgomery the establishment of the workforce housing capital
• HB 4774 by Smithy relating to the administration of the perpetual care trust funds for capital improvements
• H.G. designated Corrigan as the official timber products capital of Texas for the 10-year period ending

Bills: HB9, HB22, HB908, HB1392

Keywords: property tax, ad valorem tax, tangible personal property, income-producing property, business personal property, tax exemption, local government finance, appraisal district, chief appraiser, rendition statement, property tax relief, small business, commercial property, leased property, related business entity, unified business enterprise, tax situs, Texas Tax Code, local taxing unit, constitutional amendment

Transcript Highlights:

• So first I want to say we, we approached this from the perspective that Texas is competing for capital
• Texans better off in the long run by property tax reduction that focuses on reducing taxes on invested capital
• Because invested taxes, invested capital leads to jobs, which leads to income, which leads to homes and
• the important thing to know is that regardless of that relationship, the lower the tax burden on capital
• , the more capital you attract to Texas, the more investment you get, the more jobs you get, the more

Transcript Highlights:

• residents need despite the disagreements on where to find savings to balance the budget. came to the capital
• to say those cuts came to the capital to say those cuts and<00:13:11.680> costs<00:13:12.279>
• 18:40.400> the waste and abuse continues here at the waste and abuse continues here at the capital
• 18:42.600> 856<00:18:43.600> calls<00:18:43.880> for<00:18:44.039> the capital
• Senate file 856 calls for the capital Senate file 856 calls for the creation<00:18:44.640> of

Keywords: 1187, senate, all

Transcript Highlights:

• Reinsurance is a form of risk transfer that provides Citizens with contingent capital, which is generally
• We provide Citizens with contingent capital, which is generally only available after a large storm.
• So these are private companies that are deploying capital, and each of them have different appetites
• These are private companies that are deploying capital, and each of them have different appetites for
• The rate of new business coming in has slowed, meaning there's more capital in the state.

Summary: The Insurance and Banking Subcommittee received a lengthy presentation from Citizens Property Insurance Corporation CEO Tim Serio, with Insurance Commissioner Michael Yaworski also answering questions. Serio reviewed Citizens’ role as Florida’s insurer of last resort, its statutory funding structure, eligibility rules, depopulation program, reinsurance obligations, and the surcharge/emergency assessment mechanisms that can be used if Citizens runs a deficit. He emphasized that recent legislative reforms, combined with lower litigation and improved market conditions, have helped the private market recover and reduced Citizens’ policy count from a peak of about 1.41 million in 2023 to 936,182 at the end of 2024, with a projected drop to about 771,000 by the end of 2025. He also said the reforms reduced Citizens’ rate need and helped avoid an emergency assessment after the 2024 storms. Members asked about Citizens’ rate increases, why Citizens still seeks higher rates despite lower litigation, how the 20% eligibility threshold works, whether Citizens should be wind-only, and whether the state or federal government could help with deficits. Serio explained that Citizens is still charging below actuarially sound rates in most areas, that rate filings reflect reduced litigation and lower reinsurance exposure, and that assessments on all Florida property policyholders are the reason Citizens tries to build surplus and depopulate. He said the depopulation program is working better than in the past, with less than 2% of takeout policies returning to Citizens, and that the Office of Insurance Regulation has been vetting takeout companies more carefully. A substantial portion of the discussion focused on claims handling after Debby, Helene, and Milton, including flood-versus-wind disputes and Citizens’ use of the Division of Administrative Hearings for some claim disputes. Serio said Citizens had received 76,625 claims from the three storms and had paid nearly $823 million in indemnity and expenses as of January 7, 2025. He said many closed-without-payment claims were either below deductible, withdrawn, duplicate, or flood-only, and that Citizens had asked its internal audit function to independently review the claims data and denials. He also described Citizens’ storm outreach, catastrophe response centers, managed-repair program, and claim review process, and said the corporation remains focused on paying valid claims while minimizing the risk of assessments on the broader Florida market.

Transcript Highlights:

• highway investment plan, or capital highway investment plan, or chip,<00:10:24.520> which<00:
• We take it out of what's called the capital investment bill.
• We take it out of what's called the capital investment bill.
• out of what's called the capital out of what's called the capital investment<00:36:52.840> bill
• their buildings through capital their buildings through capital investment<00:37:09.400> and<

Keywords: 1187, senate, all

Transcript Highlights:

• two of the amendment, all state employees who are responsible for maintaining the inventories of capital
• two of the amendment, all state employees who are responsible for maintaining the inventories of capital
• two of the amendment, all state employees who are responsible for maintaining the inventories of capital
• two of the amendment, all state employees who are responsible for maintaining the inventories of capital
• two of the amendment, all state employees who are responsible for maintaining the inventories of capital

Keywords: 1187, senate, all

Transcript Highlights:

• Assistant public defenders, as well as capital collateral and regional conflict counsel attorneys, receive
• There is over $1.1 billion in the education capital outlay, which invests in our colleges, universities
• Forty million for the Workforce Development Capitalization Incentive Grant Program for public schools
• for the continued upgrade of Camp Blanding to a level two facility, and we provide $4.5 million for capital
• in this budget is move towards new infrastructure, which is why we have decided to bond the fixed capital

Keywords: 999, senate, all

Transcript Highlights:

• example... ...that will add to the costs that utilities incur in raising debt and in their equity capital
• That will add to the costs that utilities incur in raising debt and in their equity, their capital equity
• Exposure to inverse condemnation is difficult to insure, difficult to model, and difficult for capital
• Reduce financing costs associated with investor-owned utilities' wildfire-related capital expenditures
• And I have no choice, no, from a capitalism perspective, no competition to try to drive better behavior

Keywords: 988, house, all

Transcript Highlights:

• That will add to the costs that utilities incur in raising debt and in their equity, their capital equity
• That will add to the costs that utilities incur in raising debt and in their equity, their capital equity
• Exposure to inverse condemnation is difficult to insure, difficult to model, and difficult for capital
• to ratepayers: reduce financing costs associated with investor-owned utilities' wildfire-related capital
• And I have no choice — no, from a capitalism perspective, no competition to try to drive better behavior

Summary: The Assembly Committee on Utilities and Energy held a hearing on the California Earthquake Authority’s SB 254 report and broader options for reforming California’s utility wildfire recovery system. The chair framed the discussion around the Palisades and Eaton fires, the scale of wildfire-related costs on utility bills, and the need to weigh trade-offs among survivors, ratepayers, utilities, insurers, and taxpayers. The first panel featured wildfire survivors William Abrams and Joy Chen, who described long delays in compensation, housing insecurity, and what they viewed as a system that protects utility shareholders more than victims. They urged greater transparency, clearer accountability for utility spending and safety performance, faster and fuller compensation for survivors, and reforms such as independent audits and better alignment of utility incentives with wildfire prevention and restitution. The second panel began with Tom Welsh of the California Earthquake Authority, who explained that the SB 254 report was intended as a broad inventory of policy pathways rather than recommendations. He described the report’s process, including stakeholder submissions, workstreams, and a convergence process, and outlined the current wildfire fund structure: utilities remain liable, the fund reimburses eligible claims after a covered wildfire, and the CPUC later determines prudency and possible reimbursement back to the fund. RAND’s Lloyd Dixon summarized compensation data, saying utilities paid about $38 billion between 2017 and 2024, with major shares going to injured parties, insurers, and public entities, while litigation costs and survivors’ own losses remain substantial. He noted that legal fees and delays reduce the amount survivors ultimately receive. Utility and public-interest witnesses offered differing views on the report’s pathways. PG&E’s Tyson Smith said the report shows inaction is the worst outcome and argued for community wildfire risk reduction, equitable allocation of catastrophe costs, and state-led resilience tools. LADWP’s Fernando Valero emphasized the vulnerability of municipal utilities and cities, and supported inverse condemnation reform, a state-sponsored liability insurance framework, damages and subrogation limits, and stronger insurance access. Consumer Attorneys of California’s John Fisk argued that IOU-caused fires are not natural disasters but the result of negligence and sometimes criminal conduct, and opposed reducing utility liability while supporting stronger oversight and audits. The Public Advocates Office’s Nathaniel Skinner focused on affordability, saying ratepayers already bear large and growing wildfire costs and warning against shifting more costs onto bills without measurable risk reduction and tighter accountability. Committee members then began questioning witnesses about what counts as measurable mitigation, how to define full and fair compensation, and how any fast-pay process should work.

Transcript Highlights:

• It says, "All persons before conviction shall be bailable by sufficient sureties, except for capital
• <00:10:41.360> offenses Sureties, except for capital offenses, when the proof is evident or
• Because capital offenses no longer exist in Minnesota, the Minnesota Supreme Court has determined that
• ><00:12:11.240> dialogue<00:12:11.800> at<00:12:11.880> the<00:12:11.960> capital
• to the continued dialogue at the capital to the continued dialogue at the capital in<00:12:12.560

Keywords: 919, house, all

Summary: The committee held an informational hearing on draft constitutional amendment language from Representative Holland to create universal pre-trial release except in certain circumstances and eliminate cash bail. Representative Holland said the proposal is intended to make Minnesota’s pre-trial system fairer and more equitable by basing detention decisions on public safety and due process rather than a person’s ability to pay, and noted that a separate bill would later provide the detailed framework for an intentional release-and-detention system. He emphasized that no action would be taken at this hearing. Testifiers in support included Joshua Page of the University of Minnesota and the Pre-Trial Justice Minnesota Coalition, Alicia Gransee of the ACLU of Minnesota, Jess Palia of Violence Free Minnesota, and Ramsey County Attorney John Choi. Supporters argued that cash bail creates unequal treatment, contributes to racial disparities, harms families and communities, and does not reliably improve court appearance or public safety. They cited research and coalition findings about high pre-trial detention rates, overrepresentation of Black and American Indian Minnesotans, the impact of detention on housing and employment, and the need for courts to use individualized risk assessments, conditional release, and services instead of money-based release decisions. Palia focused on domestic violence cases, saying cash bail can pressure survivors to pay for abusers’ release and that current hearings often give little time to victim safety concerns. During member questions, concerns were raised that the amendment could remove an important tool for judges in the middle range of cases. Choi responded that conditional release and other protections could still be built into implementing legislation, and Page said detention would become an option but many cases would still involve conditional release and support services. He also argued there is no evidence that money itself motivates court appearance and said cash bail often shifts costs to low-income family members, especially women of color. The hearing ended without any vote or formal action, with members and testifiers noting that further legislation and discussion would follow if the amendment advances.

Transcript Highlights:

• And some of those ideas that we'd like to share with you include a capital gains tax exemption for investors
• best way to minimize the role of investors in the market is to increase the supply of housing. a capital
• gains tax exemption for a capital gains tax exemption for investors<00:14:18.640> who<00:14:18.920
• definition that we have is one that focuses on companies that are focused on raising and returning capital
• focused on raising and returning capital focused on raising and returning capital for<00:37:41.920

Keywords: 1183, house

Summary: The committee took up House File 2687, as amended by a DE1 amendment. The amendment narrowed the bill to prohibit private equity companies from buying single-family homes and to limit corporations and partnerships to owning no more than 50 single-family homes, with enforcement through the Attorney General’s office. The committee adopted the DE1 amendment, and the author, Representative Bajaj, described the bill as a step toward expanding homeownership and reducing corporate concentration in the housing market. Representative Bajaj and supportive testimony argued that corporate ownership of single-family homes makes it harder for first-time buyers and working families to compete, especially in lower-income neighborhoods, and can lead to absentee ownership and poor maintenance. Ellen Sahli of the Family Housing Fund cited research on single-family rentals showing that larger portfolios are associated with worse renter experiences, higher rents, and more repair problems. Rachel Ruby Jones testified in support based on her experience renting from Havenbrook, describing flooding, delayed repairs, safety concerns, and poor treatment by management, and said private equity ownership can shift risks and costs onto vulnerable tenants. Opposition focused on market effects and the bill’s scope. Mark Brunner of the Minnesota Manufactured Home Association said the language was too broad and could unintentionally affect manufactured home communities on leased land. Paul Eger of Minnesota Realtors warned that market prohibitions could create unintended consequences, especially in a cyclical housing market, and suggested alternatives such as tax incentives for sales to owner-occupants and more first-time buyer assistance. In member discussion, Representative Nash questioned whether the problem was widespread and pressed for details on enforcement and divestiture; Representative Agbaje said the current language is forward-looking, would not force existing owners below the cap, and would rely on lawsuits and remedies the Attorney General deems appropriate, with more detail to be worked out later. The chair indicated the bill would be laid over for further consideration and likely move next to Judiciary, with some discussion of whether Commerce should also be a stop.

Transcript Highlights:

• I represent House District 48 here in the capital city. I'm happy to be here.
• And that goes for capital projects. That goes towards recruitment.
• Chair, Senator Padilla, it would be capital.
• I don't know if PSFA would allow that. capital funds to be spent on a subscription.
• We could even give them capital outlay to buy a van; it's $60,000. I mean, especially in rural.