Transcript Highlights:

• Garry for legislation to establish parity in funding for the regional vocational school districts and
• The cannabis industry, with its complexities and challenges, requires a nimble and efficient regulator
• The current market landscape is made even more challenging for social equity operators by the challenges
• to fund the legislator created in 2022 to grant, to provide grants to prospective and active social
• The current market landscape is made even more challenging for social equity operators by the challenges

Summary: The House opened with the Pledge of Allegiance and welcomed students from the Frederick C. Murphy School in Weymouth, along with other guests introduced by members. The chamber then suspended Joint Rule 12 to allow several petitions to be referred, including proposals on alcohol labeling for beers consumed on premises, parity in funding for regional vocational and traditional public schools, and legal protections for victims of childhood sexual abuse. The main floor business was House No. 4187, An Act Modernizing the Commonwealth’s Cannabis Laws, reported by Ways and Means as a substitute bill. Members speaking in support described it as a comprehensive overhaul of the Cannabis Control Commission and the state’s cannabis and hemp regulatory framework. The bill would reduce and restructure the CCC, expand options for cannabis businesses and social equity operators, raise license and ownership caps, remove the vertical integration requirement for medical marijuana, and create stronger rules for hemp and CBD products, including a ban on unregulated intoxicating hemp products and a new regulatory structure for allowable hemp beverages and CBD items. Several amendments were offered and adopted by roll call, including changes narrowing the hemp beverage ban from 11 ounces to 7.5 ounces, requiring out-of-state testing labs to be certified in good standing with the commission, and other technical revisions. After debate, the House passed H. 4187 to be engrossed by a roll call vote of 153-0. The chamber also passed to be engrossed two sick leave bank bills, for Andrew Satara and Dana Johnson, and ordered House No. 1590, establishing a sick leave bank for Eric J. Wenaka, to a third reading. The House then adopted an order to meet the next day at 11 a.m. and adjourned.

Transcript Highlights:

• Again, there's that piece in there about federal funding.
• The tough question is always, especially when it comes to funding, there are a lot of funding bills,
• Crowdsourced funding, different crowdsourced funding formats.
• Once you're able to put together the funding, Once you're able to put together the funding, the funding
• be no changes to the current funding formulas.

Committee: Joint Tribal and State Relations Committee

Transcript Highlights:

• So, when you frame the question, is this funding these projects, I look at it as am I funding a project
• So we have really big challenges for all those reasons.
• The VA's management of the Toxic Exposure Fund and overall budget outlook.
• There are several challenges in accessing VA health care.
• I know there's some discretion with the funding issues from the VA.

Committee: Senate Senate Veterans' Affairs

Transcript Highlights:

• Because, again, it's a challenge, but it's not just our challenge.
• They had the same challenge. They have the same challenge.
• Because, again, it's a challenge, but it's not just our challenge.
• They had the same challenge. They have the same challenge. of conversations with Texas.
• They have the same challenge. They have the same challenge.

Committee: Senate Rules

Summary: The committee first handled several routine items, approving three gubernatorial appointees not required to appear: Hampus Eitsiter to the Boating and Waterways Commission, Peter Stern to the California Horse Racing Board, and Dean White to the State Mining and Geology Board. It also approved referral of bills to committees and floor acknowledgements, all by 5-0 votes. The committee then heard Tyler Sadwith’s appointment as Chief Deputy Director of Healthcare Programs at the Department of Health Care Services. Sadwith said his priorities would be protecting Medi-Cal access amid federal changes and continuing CalAIM and behavioral health reforms. Senators questioned him extensively about rural and financially distressed hospitals, Medi-Cal reimbursement, eligibility redeterminations, work requirements, fraud controls, dental access, labor and delivery closures, and CalAIM’s evaluation. He said DHCS is working on expedited payments, hospital monitoring, county technical assistance, targeted audits, and community supports such as medically tailored meals. Public commenters from county, hospital, and care organizations supported his confirmation, and the committee voted 5-0 to send the appointment to the full Senate. The committee also heard from Dr. Chris Thayer, nominated to lead the Office of Environmental Health Hazard Assessment. Thayer described OEHHA’s role as providing transparent, scientifically rigorous health assessments and risk communication to inform other agencies and policymakers. Senators focused on the agency’s use of models versus real-world data, CalEnviroScreen, Prop 65, PFAS, wildfire health impacts, and how OEHHA communicates risk to the public. Thayer said the office relies on a mix of data sources where direct evidence is limited, is updating CalEnviroScreen, and is working to reduce Prop 65 over-warning through guidance and outreach. The discussion did not reach a final vote on his appointment in the portion provided.

Transcript Highlights:

• </c> down to our general fund. down to our general fund.
• . the general fund.
• They have limited funds.
• They have limited funds. But very far. They have limited funds.
• </c> need to be funded. need to be funded.

Transcript Highlights:

• The next fund is the Foundation Aid Stabilization Fund, which is funded from a portion of oil and gas
• There is an appropriation from that fund for the school K-12 funding formula.
• Chairman, the last fund listed is the Strategic Investment and Improvements Fund.
• from the agencies are put back into the fleet fund to run that fund.
• tax distribution fund, and 25% into the flexible transportation fund.

Summary: The Government Finance Committee met with new leadership, approved the December 11 minutes, and received a series of informational updates on the state’s finances and related policy issues. The Office of Management and Budget reported the general fund is tracking very close to forecast, with revenues about $2 million above forecast and an estimated ending balance of about $397 million, higher than previously expected. OMB also reviewed balances in major funds, including the budget stabilization fund, legacy fund, foundation aid stabilization fund, social services fund, and strategic investment and improvements fund, and answered questions about oil tax revenues and fund management. The Tax Department provided updates on taxable sales and purchases by county and industry, noting Cass County as the largest county by taxable sales and that retail trade remains the largest industry sector. Tax Commissioner Brian Kroshus also discussed the federal One Big Beautiful Bill Act and its estimated effects on North Dakota income tax collections, explaining that the projected revenue impacts are measured against a 2025 baseline and that some provisions are temporary while others are permanent. He also reported that primary residence tax credit applications were running ahead of last year, with more than 154,000 received so far and an expectation of roughly 160,000-plus applications. The committee also heard fee-study presentations from the Department of Transportation and the Information Technology Department. DOT explained that driver’s license fees cover only about half of program costs and that the shortfall is subsidized by the highway fund, while also noting recent changes such as the blackout plate and motor vehicle excise tax distribution changes. NDIT described its internal service fund model, current billing structure, and possible future changes to simplify invoices and billing frequency. Legislative staff also updated the committee on office space needs in Bismarck-Mandan and on legislative branch space planning, and subcommittees reported progress on fixed-route transit funding and regional jail capacity, including a visit to the Burleigh-Morton detention facility and discussion of future prison bed needs. No formal votes or legislative actions beyond approving the minutes were taken, and the committee adjourned with its next meeting set for June 25.

Transcript Highlights:

• state funds.
• state funds.
• by federal funds.
• </c><00:43:30.400><c> So</c> funds and 50% by federal funds. So funds and 50% by federal funds.
• </c> That's not not government funded. That's not not government funded.

Transcript Highlights:

• Funds to help the state manage climate costs are sorely needed.
• Senator Wiener is suggesting a funding mechanism. I'm simply saying, I don't believe...
• Senator Wiener is suggesting a funding mechanism.
• Cal Fire, make sure we're funding Air Resources, make sure we're funding the, you know, billions of
• First, we do want to acknowledge the frustrations and challenges wildfire survivors face.

Committee: Senate Insurance

Transcript Highlights:

• So, as a consumer's data, they're worth $5.60 a year. special revenue fund, special revenue fund, which
• These tax cuts are funded in part by the largest funding cuts in their history to Medicaid and SNAP,
• instead to the general fund.
• Cook, please proceed with your testimony. future challenges future challenges without<00:33:27.920><c
• </c> our state for budget challenges ahead. our state for budget challenges ahead.

Summary: The committee heard testimony on House File 5055, the governor’s supplemental tax budget. Commissioner of Revenue Paul Marquart outlined the proposal as a balanced budget package that would leave a positive bottom line in the current biennium and beyond. He emphasized family-focused tax relief, especially a new refundable young child credit for children ages 0 to 4, which would provide up to $3,000 for one child or $6,000 for two or more, benefit about 104,000 families, and phase out at higher incomes. He also described federal conformity changes, including updates to business interest deductions, dependent care credits, and Section 179 expensing, along with omitted federal items such as research expensing and opportunity zones due to cost and policy concerns. Marquart also defended broader tax modernization proposals, including expanding the sales tax to selected consumer services such as accounting, banking, brokerage, and legal services while lowering the statewide sales tax rate, and creating a social media tax on consumer data collection that would fund an AI readiness special revenue fund rather than the general fund. He said these changes would make the sales tax less regressive and better aligned with the modern economy. Additional provisions mentioned included a gun-related gross receipts tax on firearms and ammunition, cannabis tax technical changes, historic structure rehabilitation conformity, and added auditors for tax compliance. Testimony from outside groups was mixed. Nan Madden of the Minnesota Budget Project supported the governor’s approach as a response to federal tax and spending changes, praised the decision not to conform to opportunity zones or federal no-tax-on-tips/overtime provisions, and urged even stronger revenue measures. Brian Lake of the Minnesota State Bar Association strongly opposed the proposed sales tax on consumer legal services, arguing it would burden low- and middle-income people in sensitive cases and create unfairness when individuals litigate against the state. Tanner Fritsinger of the Minnesota Association of Professional Employees supported the sales tax base expansion and the social media tax as ways to broaden revenue without raising the base rate. The committee chair thanked the commissioner and then began hearing public testimony, with additional testifiers queued up.

Transcript Highlights:

• materials could be in Missouri, but to be honest, a lot of these materials are going to be very challenging
• And part of the reason we had a challenge of doing those things is that our customers didn't want to
• The amount of the grant is relatively small, and he said you are not going to be able to fund a mine
• He said the funding is really for initial development, but anyone who is going to be successful in this
• But it's not about getting money from the government to fund these.

Committees: House Commerce , House Commerce, Consumer Protection, Energy and the Environment

Transcript Highlights:

• TNCs. in terms of... revenue to the general fund or using the fees to regulate TNCs.
• Mega projects with challenging geotechnical parameters—that’s true in Utah and Washington.
• The legislature provided additional one-off appropriations of sales tax funds or general funds in fiscal
• Our fee supports this sport with no outside money from the general fund.
• Is there a plan from parks to do more enforcement with this new funding?

Bills: HB2109 , HB2139 , HB2192

Committee: House Transportation

Keywords: vehicle loads, public highways, transportation, road safety, infrastructure, HB2139, snowmobile registration, snowmobile fee, vehicle license fee, registration fee, Department of Licensing, RCW, vehicle registration, winter recreation, off-road vehicle, moped, motorcycle, trailer, recreational vehicle, vintage snowmobile

Transcript Highlights:

• So I think that's really challenging.
• So I think that's really challenging.
• So I think that's really challenging.
• So I think that's really challenging.
• </c> so I I think that's really challenging so I I think that's really challenging but<00:16:00.319><

Committee: House State Government Finance and Policy

Transcript Highlights:

• When women's rights were challenged, you stood up.
• Thank you for the challenge coin. It's fantastic, too.
• To the challenge.
• You certainly challenged me.
• I know that all of you will rise to this challenge. So to... Of you will rise to this challenge.

Summary: The Senate convened with prayer, the Pledge of Allegiance, several introductions, and an announcement that there would be no conference that weekend. The chamber then took up a long special order calendar and passed a series of bills, often by substituting House companions. Early measures included trust law modernization to create a nonjudicial trustee discharge process, military affairs changes expanding leave and retirement-related provisions, a bill to prepare for the end of penny use by standardizing cash rounding, and a podiatric medicine bill regulating cellular or tissue-based products and informed consent. The Senate also approved veterans court expansion, RV park assessment clarification, alcohol-loss tax deduction authority, bail bond and pretrial release revisions, and a military-installation jurisdiction bill to allow juvenile cases on bases to be handled in state juvenile court under certain conditions. Most bills passed unanimously or near-unanimously, with the bail bond bill passing 36-1 after questions about charitable bail bonds and confirmation that existing law on return of charitable bail funds would remain unchanged. The chamber then paused for a lengthy farewell presentation honoring Senator Lori Berman, featuring a video, remarks from many senators, and Berman’s own closing speech reflecting on her 16 years of service, her legislative priorities, and her call for civility, bipartisanship, and continued support for issues such as school safety, Israel, anti-Semitism, and affordability. After the tribute, the Senate resumed and passed additional bills, including one expanding insurance coverage definitions for portable electronics and eyewear, a workforce and nursing education funding bill broadening support for health science programs, a recovery residences regulatory streamlining bill, a felony battery enhancement bill adding resisting an officer with violence as a qualifying prior offense, and a child welfare bill extending visitor thresholds in out-of-home placements, making the Step Into Success program permanent, and creating a best-practices program. The chamber also advanced a candidate qualification bill tightening party-affiliation requirements and adding a House provision on recent legal name changes; debate began on that measure as the transcript ended.

Transcript Highlights:

• When women's rights were challenged, you stood up.
• To the challenge.
• You certainly challenged me.
• I know that all of you will rise to this challenge.
• I know that all of you will rise to this challenge. So to of you will rise to this challenge.

Summary: The Senate convened with a quorum, opening prayer, Pledge of Allegiance, and several introductions, including guests from the press, Florida State women’s soccer, and former Senator Janet Cruz. Members also announced there would be no conference that weekend. The chamber then moved to the special order calendar and began taking up a series of bills, often substituting House companions and proceeding quickly to third reading and final passage. Among the measures approved were bills modernizing trust settlement and trustee discharge procedures; revising military affairs laws, including leave protections, retirement eligibility, and assistance programs; creating uniform cash-rounding rules as Florida prepares for the end of the penny; refining podiatric medicine rules on cellular/tissue-based products and informed consent; expanding veterans’ court access statewide; clarifying RV park special assessments; establishing concurrent state-federal jurisdiction for juveniles on military installations; reauthorizing alcoholic beverage loss deductions; and revising bail bond and pretrial release laws, including training, electronic notices, forfeiture timing, and related procedures. Members also passed bills on eyewear insurance licensing, expanding the Linking Industry to Nursing Education Fund into health science education, streamlining recovery residence regulation, enhancing felony battery penalties, and updating child welfare rules to reduce repeated background checks, make the Step Into Success program permanent, and create a best-practices program. Several bills drew brief supportive remarks, especially those affecting veterans, the National Guard, foster youth, and military families. One bail bond bill prompted questions about charitable bail bonds, with the sponsor stating the current statute would remain unchanged. Most bills passed unanimously or near-unanimously; the bail bond measure passed 36-1, while the others noted here passed with no or minimal opposition. The Senate also adopted an amendment to the military affairs bill and a delete-all amendment to the military-installation jurisdiction bill before final passage. A major portion of the meeting was devoted to honoring Senate Democratic Leader Lori Berman on her farewell. Members from both parties offered extended remarks praising her leadership, preparation, collegiality, advocacy on issues such as voting rights, women’s rights, Israel, anti-Semitism, breast cancer, school safety, and family law, and her effectiveness in committee and on the floor. Berman delivered an extended farewell speech reflecting on her 16 years in the Legislature, her family, her district, and her legislative priorities, and the Senate ordered her remarks spread upon the journal before recessing and later returning to continue the calendar.

Transcript Highlights:

• Each area presents challenges to the opportunities that lie there.
• Each area presents challenges to the opportunities that lie there.
• In the next biennium, so I don't think we can afford to fund toys.
• </c> problem and uh we have to be funding problem and uh we have to be funding basic<00:36:54.599><c>
• Seeing none, he said the bill is moved to Ways and Means. uh funds here thank you uh uh funds here thank

Bills: HF2066 , HF340 , HF341 , HF566 , HF2107 , HF2130

Committee: House Transportation Finance and Policy

Transcript Highlights:

• We didn't have any near the categorical program funding.
• We didn't have any near the categorical program funding.
• And that is the equity challenge before us.
• But we have to embrace this challenge.
• But we have to embrace this challenge.

Summary: The committee held an oversight hearing on a state audit examining California’s community college transfer process and whether streamlining it could improve access to bachelor’s degrees. Opening remarks from legislators emphasized that California’s transfer system is central to equity and workforce development, but that only about one in five transfer-intending community college students complete a transfer within four years. Members highlighted disparities by race, region, campus, and major, and pointed to confusion created by differing requirements across the UC, CSU, and community college systems, including limits and inconsistencies in the Associate Degree for Transfer (ADT), TAG, and major-specific prerequisites. State Auditor’s staff said the audit found that while UC and CSU systemwide enroll more transfer students than the Master Plan target, individual campuses and high-demand STEM programs often do not. The audit identified barriers including unclear and varying course requirements, limited counseling and education plans, insufficient counselor staffing at some campuses, and weak equity plans. It also found that many students never even apply because they do not accumulate enough units or cannot navigate the process. The auditor described examples where transfer students with strong preparation were denied at selective campuses and noted that articulation alignment across systems remains limited. Representatives from UC, CSU, and the Community Colleges responded that transfer remains a top priority and described ongoing reforms. UC cited a new public dashboard, data-sharing agreements, new transfer pathways, and an ADT pilot at UCLA, while saying campus-level capacity and program differences limit how much can be standardized from the system office. CSU said it admits more than 90% of eligible transfer applicants, is expanding transfer planning tools and direct outreach, and is implementing SB 640’s Transfer Success Pathway Program. Community Colleges said transfer reform must focus on clearer credit mobility, more consistent articulation, and broader ADT adoption. Members pressed the systems on inconsistent major requirements, the need for better coordination, and whether campuses are fully prioritizing transfer students; no votes were taken during the hearing.

Transcript Highlights:

• fund.
• fund.
• fund.
• fund.
• </c> funded with cash through the cleft fund. funded with cash through the cleft fund.

Summary: The subcommittee heard capital project requests from the Justice and Public Safety Cabinet for fiscal years 2026-28. The cabinet described its large statewide footprint and said its facilities face significant deferred maintenance, with the governor’s budget proposing full funding for maintenance pool requests, including an additional $60 million for the Department of Corrections’ maintenance pool and cash funding through investment income. Officials said the projects were based on facility assessments and were presented as necessary public safety investments rather than wish-list items. For the Department of Juvenile Justice, the main requests were $35 million for a high-acuity mental health treatment facility and $45 million each for two new female detention facilities. Officials said the mental health facility would fill a gap for youth needing psychiatric care, while the female facilities were needed to support a regional detention model and address overcrowding; they noted the current female population has grown by 50% since July 2024. Members asked about locations, and staff said they were considering western Kentucky abandoned mine land and available land in Fayette and Jefferson counties, with current female placements in Boyd County and Warren County. For the Department of Corrections, officials requested funding for critical mechanical, electrical, plumbing, roof, and structural repairs, including $15.78 million for Kentucky State Penitentiary utilities infrastructure and additional funding for North Point Training Center projects. They also highlighted two re-entry initiatives: a KCTCS partnership for a re-entry campus at North Point and the East Kentucky Applied Manufacturing Institute at Eastern Kentucky Correctional Complex, both aimed at reducing recidivism through intensive training and job preparation. Members asked about the KCTCS re-entry model, and DOC explained it would be a more immersive, campus-style program than current prison-based vocational classes. The Department of Criminal Justice Training discussed projects at its Richmond campus and the planned Western Kentucky Training Center, including a replacement flat track and campus access road at Richmond and added training features in Madisonville. Officials said the Richmond changes were needed because EKU construction had removed the existing flat track and would affect access, while the Western Kentucky project would expand training capacity and reduce travel for law enforcement agencies. The Kentucky State Police then outlined the final phase of the statewide emergency radio system replacement, estimated at about $17.5 million, and said the system is being built in geographic phases; members asked how long completion would take, and staff estimated roughly four years after funding, assuming no major inflation spikes. No votes were taken, and the meeting remained informational with member questions and staff responses.

Transcript Highlights:

• First of all, the federally funded public workforce system is broken.
• So what is the challenge for states?
• That are low-income, poor, and otherwise challenged economically, is what is there one solution?
• I’m talking to—and the reason is because these funds are blended behind the scenes.
• I had the planning district director, and I had the Wagner-Peyser state-funded...

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The committee met to hear consultants Mason Bishop and Cameron Christie discuss Arkansas’s “one door/no wrong door” workforce and social services modernization effort. Bishop argued that the current system is fragmented across multiple agencies, offices, and portals, making it hard for job seekers and employers to access services efficiently. He said the goal is to create a more integrated system that promotes upward mobility, longer labor force attachment, better employer access to talent, greater efficiency, and faster adaptation to changes such as AI and other economic disruptions. Bishop repeatedly pointed to Utah as a model, describing how that state combined workforce and public assistance functions into a single agency, used statewide cost allocation to blend funding streams, and improved customer service and outcomes after reform. He said Arkansas should consider integrating governance, service delivery, and financing, including possible waivers, a statewide cost allocation plan, and a benefits-cliff pilot. He also said Arkansas’s current local workforce board structure creates duplication and weak coordination, and that Launch is a useful tool but not a full service-delivery system. Committee members asked how the proposal would work in practice, including whether TANF could be used to cross-train DHS workers, how federal waivers might be obtained, how local boards would be affected, and how disabled clients would be handled. Bishop said TANF should be treated as part of a workforce strategy, that federal pilot authority for workforce reform nearly passed but did not, and that waivers are now the practical path. He also said Arkansas could either merge functions more fully or at minimum co-locate workforce staff in DHS offices statewide. No votes were taken; the meeting ended with plans to continue the discussion in August, including a focus on case management and whether the state is managing programs or people.

Transcript Highlights:

• </c><00:11:19.880><c> become</c> local fiscal recovery funds become local fiscal recovery funds become
• Some communities put those in rainy day funds; some communities put those funds right back into that
• some communities put those day funds some communities put those funds<00:15:08.600><c> right</c><00:
• </c> this year fund this year fund fund<00:50:28.520><c> money</c><00:50:28.960><c> to</c><00:50:29.160
• </c> fund but that's a state level trust fund fund but that's a state level trust fund that<01:26:31.280

Committee: House Housing

Transcript Highlights:

• of the general fund into the legacy earnings fund.
• So that's the fund. ...legacy earnings fund.
• fund to that legacy earnings fund.
• earnings fund.
• legacy earnings fund.

Summary: The Legislative Management Committee met to address the fiscal impact of Initiated Constitutional Measure No. 3, which would require public schools, public school districts, and public charter schools to provide breakfast and lunch at no cost to students and allow reimbursement from the state, with implementation beginning in the 2027-28 school year. The committee first filled a vacancy created by Representative Jared Hagert’s resignation by appointing Representative Berg to the committee. Legislative Council and DPI staff explained the measure’s requirements, including federal reimbursement participation, possible use of the legacy earnings fund if other funding is unavailable, and the authority of the Legislature and superintendent of public instruction to clarify implementation details. Linnell Johnson of DPI testified that the estimated fiscal impact for the 2027-2029 biennium is between $124 million and $134 million, based on participation assumptions, federal reimbursement rates, and the extent to which schools continue to collect applications or use community eligibility/provision 2 options. She also noted a likely additional administrative cost of about $300,000 for DPI to operate the program. Members asked about school participation, Title I implications, special diets, staffing, and whether the measure could reduce federal reimbursements if families stop applying. Johnson said the estimate is uncertain and could be higher if applications decline, but that schools would still have incentives to participate in federal programs because of reimbursement and other funding ties. After discussion, the committee adopted a motion to report a fiscal impact range of $124,300,000 to $134,300,000 per biennium to the Secretary of State. The committee then received an informational update from Legislative Council attorney Dustin Richard on the ongoing redistricting litigation. He explained that the U.S. Supreme Court vacated the Eighth Circuit’s ruling and sent the case back for reconsideration in light of Louisiana v. Callais, while the district court-imposed map remains in effect for now. No action was taken on that update, and the meeting adjourned after members noted minutes from the prior meeting were not yet available for approval.