Transcript Highlights:

• The answer is the fossil fuel industry.
• The corporations whose products The fossil fuel companies whose products fueled this crisis by fueling
• , it is much more than 1% caused by fossil fuels.
• , it is much more than 1% caused by fossil fuels.
• The harm to the community is caused so much by the fossil fuel industry and every By the fossil fuel

Committee: Senate Judiciary

Transcript Highlights:

• We start to depart from that a little bit with a fuel... ...when the fuel economies are different, right
• fuel at all.
• And what are we paying in fuel tax?
• Because it's less fuel-efficient.
• fuel tax credit for any fuel tax paid.

Committee: House Transportation

Summary: The Assembly Transportation Committee first took up three highway memorial naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar on an 11-0 vote, with the roll not held open. The chair also recognized committee science fellow AJ Mendeola for his service before adjourning the bill-hearing portion and moving to an informational hearing. The informational hearing focused on alternatives to the gas tax and how other states are responding to declining fuel-tax revenue. A first panel of researchers and policy experts described the erosion of gas-tax receipts due to inflation, improved fuel efficiency, and growth in electric vehicles, and compared options such as EV registration fees, kilowatt-hour charging fees, delivery fees, transportation network company fees, managed lanes, and road usage charges. Witnesses generally said road usage charges best preserve the user-pays principle, but they also emphasized that implementation costs, privacy concerns, and public understanding remain major obstacles. Committee members raised concerns about fairness for commuters, low-income drivers, and EV adoption, while some members argued a mileage-based system could amount to a new tax unless the gas tax is actually repealed. The second panel featured state officials from Hawaii, Utah, Oregon, and Virginia describing their programs. Hawaii said it launched its road usage charge program on July 1, 2025, using existing safety-check and registration systems, with EV owners initially choosing between a per-mile charge and a flat annual fee before mandatory EV participation begins in 2028 and a broader transition plan is due by 2026. Utah described its voluntary EV road usage charge program, annual flat fee option, quarterly reporting, privacy protections, and recent cost reductions as enrollment grows. Oregon began outlining its structural funding challenges and constitutional cost-responsibility framework, while the hearing overall underscored that states are experimenting with different approaches but have not settled on a single replacement for the gas tax.

Transcript Highlights:

• She spent the first half of career in primary care with a specialty in children and teens with special
• She spent the second half of career doing acute care and running spina bifida clinic at the now closed
• We are watching the destruction of our democracy fueled by racism and hate.
• We are watching the destruction of our democracy fueled by racism and hate.
• We are watching the destruction of our democracy fueled by racism and hate from our current president

Transcript Highlights:

• Typically, that's drought-stricken fuels where the fire can burn through those fuels very easily and
• An urban fire is one that burns urban fuels.
• And that's urban fuels.
• We spent a lot of money, you know, to do that.
• Cal Fire has amazing programs for fuels treatment to reduce hazardous fuels and the risk that they pose

Transcript Highlights:

• In the West, this led to fuel buildup and heightened wildfire risk.
• GAO found emergency fuel reduction projects were already allowed.
• Current conditions include beetles, heavy fuels, and emerging...
• In the West, this led to fuel buildup and heightened wildfire risk.
• GAO found emergency fuel reduction projects were already allowed.

Committee: House Resources and Conservation

Transcript Highlights:

• SB 18 will increase operating costs on fuel, transportation, electricity, and essential inputs.
• They just launched another one recently around clean fuels.
• High winds and climate change-fueled drought fueled a massive, unstoppable fire that burned almost a
• New Mexico has already spent billions on climate disaster response in recent years.
• The fossil fuel industries are unsustainable. We need to address transition now.

Summary: The committee first took up the proposed 2026 tax package, Senate Bill 151, and adopted a committee substitute after discussion of the package’s funding capacity and included measures. The substitute bundled five bills: a physician tax credit, a quantum facility infrastructure tax credit, a construction materials gross receipts deduction for affordable multifamily housing, a local journalist employment tax credit, and a health equipment gross receipts deduction. Members discussed amendments that raised the physician credit from $4,000 to $10,000, narrowed the housing deduction to project-based certification, and reduced the journalist credit threshold from four stories to three. Concerns were raised about the fiscal impact on municipalities, especially Albuquerque, and about the funding mechanism, but the committee voted 6-4 to give the substitute a do pass recommendation. Senator Sanchez explained his vote, saying he wished more could have been included in the package. The committee then heard Senate Bill 18, the Clear Horizons Act, which would codify statewide greenhouse gas reduction targets and direct the Environment Department and Environmental Improvement Board to develop plans and rules for emissions reductions. The sponsors said the bill builds on the governor’s 2019 executive order, includes a 10,000-metric-ton threshold for covered emitters, allows certified offsets, and is intended to protect public health, reduce climate-related costs, and provide regulatory certainty. Supporters argued the bill would help communities facing wildfire, drought, health harms, and rising insurance and utility costs, and that it would encourage clean-energy investment and long-term economic stability. Opposition testimony came from mining, oil and gas, rural electric cooperatives, construction, agriculture, auto dealers, chambers of commerce, banks, water recycling companies, and realtors. They argued the bill functions like a carbon tax or broad regulatory mandate, would raise energy and compliance costs, could reduce investment and jobs, and would disproportionately affect rural, tribal, agricultural, and low-income communities. Several witnesses warned of higher electricity and fuel bills, revenue losses for local governments, and uncertainty from delegating major policy decisions to rulemaking. Supporters included public health advocates, educators, local officials, clean-energy businesses, tribal and environmental advocates, and residents affected by wildfire and drought, who said the bill is necessary to address climate harms and protect public health and the economy. No final committee vote on SB 18 was reached in the portion provided.

Transcript Highlights:

• coming out, fuel laced with high levels of sulfur dioxide.
• So is that the byproduct of jet fuel? Yes. And here's the thing, though.
• I spent a lot of money on diesel fuel recently.
• , if the priority is to formulate jet fuel for... ...priority is to formulate jet fuel against pollutants
• However, it's in jet fuel.

Committee: House Special Committee on Intergovernmental Affairs

Transcript Highlights:

• , and clean fuels.
• The lower carbon intensity of a fuel is, the more credits a fuel producer can generate per unit of fuel
• Fuel producers bring clean fuels... ...for alternative fuels via the renewable fuel standard.
• So dirty fuels become more expensive. Clean fuels become cheaper.
• clean fuels?

Summary: The hearing was a select committee discussion on the transportation costs and impacts of California’s Low Carbon Fuel Standard (LCFS), with opening remarks from the co-chairs and members emphasizing affordability, climate goals, and the need to explain the program’s benefits to the public. The first panel from CARB and the California Energy Commission described how LCFS works as a market-based, declining carbon-intensity program that rewards lower-carbon fuels, supports zero-emission vehicle infrastructure, and is intended to reduce greenhouse gases and local air pollution. They argued the program has driven billions in private investment, increased alternative fuel use, and that LCFS credit prices are not the main driver of retail gasoline prices, which they said are dominated by crude oil, refining, and distribution costs. Members questioned the panel on the gap between the regulatory target and actual carbon-intensity performance, the role of credit banking, which fuels are generating the most credits, how the 2025 amendments affected the program, and whether LCFS credits are truly additional. CARB explained that banking helps cost-effectiveness and investment certainty, that ethanol, renewable diesel, and biodiesel currently provide the largest volumes while electricity is expected to grow, and that the updated targets were informed by the state’s 2045 carbon-neutrality goals and the 2030 scoping plan. The Energy Commission said its data show environmental programs add some cost to gasoline but do not drive price volatility, which is mainly tied to crude oil and refinery margins. The second panel, featuring academic and research experts, focused on program design, out-of-state credit generation, and broader economic effects. Speakers said LCFS is successful because it ties incentives to emissions benefit, uses life-cycle analysis, and allows flexible compliance that lowers costs compared with more direct regulation. They also said the program’s benefits generally outweigh costs, that it can reduce air pollution disparities and support equity, but that some issues—especially indirect land use change, additionality, and older program assumptions—need more research and may warrant future rulemaking. One researcher noted that while LCFS likely raises gasoline prices somewhat, the effect is uncertain by design and usually smaller than normal market fluctuations, and another warned that limiting credit generation too narrowly could create legal and efficiency problems.

Transcript Highlights:

• , and clean fuels.
• The lower carbon intensity of a fuel is, the more credits a fuel producer can generate per unit of fuel
• Fuel producers bring clean fuels... ...for alternative fuels via the renewable fuel standard.
• clean fuels?
• Fuel.

Summary: The hearing focused on California’s Low Carbon Fuel Standard (LCFS), its role in reducing transportation emissions, and whether its costs at the pump are justified by its climate, air quality, and investment benefits. The co-chairs and several members framed the discussion around affordability and asked whether the program’s benefits, including cleaner fuels, zero-emission vehicle infrastructure, and public health gains, outweigh any added fuel costs. Members also raised concerns about how the program is understood by the public and whether its benefits are being communicated clearly. CARB and CEC officials explained how LCFS works as a market-based program that sets declining carbon-intensity targets, generates credits for lower-carbon fuels, and requires deficit holders to buy credits or otherwise comply. They said the program has driven billions in annual private investment, expanded alternative fuels, supported EV charging and hydrogen stations, and helped reduce emissions and local pollution. They also argued that LCFS credit prices are not the main driver of gasoline prices, that the recent amendments added only about seven cents per gallon, and that crude oil, refining, and distribution costs account for most pump price variation. Committee members pressed witnesses on credit banking, market effects, the recent rule updates, additionality, and whether the program’s benefits are concentrated in-state or out-of-state. CARB said banking helps keep the program cost-effective and provides investment certainty, while the Energy Commission said LCFS-related costs are relatively stable and separate from the broader gasoline market. The panel also discussed how the 2025 amendments were shaped by the state’s 2030 and 2045 climate goals and by uncertainty over federal actions. No votes or formal actions were taken during the portion of the hearing provided.

Transcript Highlights:

• But if we have spent hundreds of millions of dollars of taxes ability of stewardship.
• We are in strong support of urgent and ongoing prioritization of wildfire and fuels mitigation in our
• We are just saying if you want to streamline your fuels reduction project, that you have to use every
• We are just saying if you want to streamline your fuels reduction project, that you have to use every
• All the while demand for fuel in the state has remained substantial.

Summary: The committee heard a series of natural resources bills, with several measures accepted on committee amendments and moved forward on party-line or near-unanimous votes. AB 2461 on oil and gas bonding and well-closure financial assurance drew strong support from environmental groups and some legislators, while an industry representative was neutral and warned about unintended consequences and reduced transfers. Senators Laird and Cabaldon supported the bill as a clarification of AB 1167, and the committee voted do pass as amended to Appropriations, with the bill placed on call. The committee also approved a consent calendar of 10 bills, which was moved and held on call. AB 53 by Assemblymember Ramos, as amended, would expand tribal eligibility for conservation grants and loans and express legislative intent to create a process for returning ancestral lands to federally recognized tribes. Tribal and environmental supporters argued the bill recognizes tribal stewardship and helps remove barriers to conservation participation, while county, farm bureau, and habitat league witnesses raised concerns about long-term land management, public accountability, easements, and jurisdiction if lands are transferred. Committee members emphasized the importance of preserving conservation protections and continuing work on the land-return framework; the bill was moved do pass as amended to Appropriations and held on call. AB 2679 on Lake Tahoe corridor safety and access was supported by local officials and the Tahoe Regional Planning Agency, who described dangerous parking, pedestrian conflicts, and a successful shuttle pilot, and the bill was moved do pass as amended to Appropriations. AB 1666, creating biomass innovation parks and other incentives for non-combustion uses of forest and agricultural biomass, received broad support from business, conservation, and local government witnesses, with senators framing it as a way to address wildfire debris and create rural jobs; it also advanced do pass as amended to Appropriations. AB 2494, which would modernize the demonstration state forest system and elevate biodiversity, recreation, carbon storage, and tribal stewardship over maximum sustained production, drew strong support from environmental and tribal advocates but significant opposition from forest industry, county, and research witnesses who warned it could undermine research, sustainable forestry, and local economies; the author said he would continue negotiations, and the bill was moved do pass to Appropriations. The committee also heard AB 2234, which updates the definition of geothermal exploratory projects, and AB 2521, which seeks to use the California Council on Science and Technology for watershed-wide water availability analyses to help identify excess water for groundwater recharge. Both bills had support from sponsors and some stakeholders, while AB 2521 drew concerns from agricultural water interests about agency reliance, public trust considerations, and funding. Both measures were moved do pass as amended to Appropriations. Finally, AB 2410 would extend a CEQA exemption for certain fuels-reduction projects in high fire-risk areas; local government groups supported it as a wildfire-prevention tool, while environmental and other opponents argued the remaining exemption still weakens habitat protections and public review, and one witness sought to remove conventional herbicides from the exemption.

Transcript Highlights:

• </c><00:12:22.079><c> is</c> in particular with these fuels is in particular with these fuels is exceptionally
• Delivered fuels provide the utilities.
• Only fuels exceeding the in Minnesota.
• We represent 400 fuel marketers in the state.
• ton of freight nearly 500 miles on a gallon of fuel.

Committee: House Transportation Finance and Policy

Transcript Highlights:

• that hasn't been spent already?
• need to get fuel on there?
• Why isn't that money being spent? It's not that it's being spent.
• It looks like we spent... I guess.
• Can you give us a breakdown of what the projects are and what's been spent and what's not been spent?

Summary: Attorney General Catherine Hanaway presented the Office of the Attorney General’s FY 2027 budget request and outlined her office’s priorities: reducing violent crime, targeting illegal and unregulated activities she described as a “vice squad” focus, protecting Missourians from fraud, and improving the office’s legal work. She highlighted major cases and enforcement efforts, including litigation over insulin pricing, Dollar General pricing practices, a criminal prosecution in Hermann, the Jackson County assessment dispute, and a new lawsuit involving Misha’s board policy. Committee members asked about cybercrime enforcement, cooperation with federal authorities, VLTs, ballot and referendum litigation, and the office’s approach to diversity-related legal issues. Hanaway said cybercrime and no-call enforcement rely heavily on multi-state and federal cooperation, and she emphasized that many cases begin with citizen reports. Members also questioned the cost and scope of ongoing election-related litigation, including redistricting and referendum cases, and Hanaway said her office is defending the laws and ballot processes as required. She estimated roughly $600,000 in staff time over about six months for the referendum/redistricting work combined. Several members raised concerns about the Misha lawsuit and whether similar statutory provisions elsewhere in state government could raise the same legal issues; Hanaway responded that the case involved a board rule, not a statute, and turned on whether the requirement functioned as a quota. The committee also discussed child sexual exploitation, human trafficking, Medicaid fraud, and the use of outside counsel and pro hac vice fees. Hanaway said the office is using non-GR funds where possible and is not requesting pay increases this year. The Missouri Office of Prosecution Services then presented its budget. Officials explained that MOPS trains and supports prosecutors statewide, including on DWIs, child sex cases, and new prosecutor training, and that its budget request matches the governor’s recommendation. Members asked about support for local prosecutors, the nine counties without elected prosecutors, and the new conviction integrity unit; staff said the unit’s positions were shifted between line items and that the office can help answer prosecutorial questions through its general counsel. The committee then moved to the Department of Public Safety budget. DPS reviewed funding for crime victims notification, law enforcement recruitment and retention, drug task forces, academy scholarships, Blue Star grants, local crime prevention, school safety, World Cup security, 988 trainings, wastewater testing in schools, and other programs. Members asked about the $59 million federal FIFA World Cup grant, school safety app funding, and wastewater testing participation; DPS said the World Cup funds require no state match, the app funding is being phased out, and schools opted into the testing program. The committee recessed before finishing the DPS book, with plans to return later.

Transcript Highlights:

• than conventional fuel, as determined by Ecology through participation in the Clean Fuels Program.
• those fuel suppliers to report emissions to the Department of Ecology.
• and municipalities from awarding a procurement contract to certain fuel suppliers unless the fuel supplier
• So the bill is actually agnostic on fuel type and will already include propane.
• So the bill is actually agnostic on fuel type and will already include propane.

Summary: The Ways and Means Committee met in executive session on March 2, 2026, and worked through two large groups of bills, hearing staff briefings, caucusing, and then voting each measure out to the Rules Committee. In the first group, the committee advanced bills on state accounts (HB 2675, with an amendment creating an adult day service facilities account), immigrant worker protections (2SHB 2105, after adopting a striker and Amendment 8 while rejecting amendments that would have changed enforcement and private rights of action), voting rights compliance (E3SHB 1710, with all proposed amendments rejected), AI content provenance and notices (E2SHB 1170, with Amendment 19 adopted to exempt state/local/tribal governments and certain video-game and technical uses), public official protections (2SHB 233, with a technical amendment adopted), WOTEC civil service coverage (HB 2249), JLARC work plan changes (HB 2120), LEOFF Plan 1 termination/restatement (E2SHB 2034, with several amendments adopted including creation of a pension surplus holding account and study directives, while proposals to redirect funds to the Climate Commitment Act or provide a lump-sum payment were rejected or withdrawn), supplemental retirement bargaining (HB 1069, with a striker adopted), port employee retirement exclusions (EHB 2179, with a striker adopted), local government revenue flexibility (ESHB 2442, with Amendment 72 adopted to remove a county public utility tax and other amendments rejected), wildfire mitigation funding (SHB 2089), and timberland REET changes (HB 1983). The committee also noted that it would not take action on some items in the packet, including SHB 1833. In the second group, the committee advanced bills on local housing tax remittance programs (ESHB 1717), renewable energy tax incentives and grants (E3SHB 1960, with a striking amendment adopted that adjusted rates, timing, and related provisions), nonprofit fundraising hall property tax relief (HB 2431), food bank sales tax relief (SB 6006), local tax increment financing (E2SHB 2451), temporary staffing services for nonprofit behavioral health entities (SB 6297), school and child care-related sales tax exemptions (SSB 6351, with a substitute adopted and the competing amendment made out of order), behavioral health work group extension and leadership council creation (2SHB 2429), Working Connections Child Care changes (SB 6353, with Amendment 43 adopted), language access guidelines for state agencies (SHB 2475), unpaid wage recovery (2SHB 2479), firearms background check fee authority (HB 2521, briefed but not acted on in the portion provided), public employee information sharing (HB 2091, briefed but not acted on in the portion provided), and Office of Independent Investigations jurisdiction changes (ESHB 2508, briefed but not acted on in the portion provided). Throughout the meeting, members and staff discussed fiscal notes, implementation costs, and whether amendments would increase or reduce state impacts, with several amendments aimed at narrowing scope, delaying implementation, or shifting enforcement and funding responsibilities.

Transcript Highlights:

• And then we sort of authorize how cap and trade will be spent.
• We sort of authorize how cap and trade will be spent.
• I spent my summers in your district. Oh, great.
• Low-carbon fuel standards was passed by CARB last summer or the summer before.
• Prior to this appointment, I spent 12 years at the U.S.

Committee: Senate Rules

Summary: The committee first established quorum and then approved several governor’s appointments not required to appear, including Indira Cameron Banks to the Civil Rights Council, Sonar Loma Lee to the Board of Barbering and Cosmetology, and two University of California College of the Law, San Francisco Board of Directors appointees, along with reference of bills to two committees and floor acknowledgments. All of those items passed by voice or roll-call votes, mostly unanimously, with the Civil Rights Council appointment approved 3-2. The main portion of the meeting focused on the Air Resources Board appointments of Linda Hopkins and Patricia Lock Dawson. Both nominees emphasized climate action, public engagement, and balancing environmental protection with economic realities. Members questioned them extensively about cap-and-trade/cap-and-invest, leakage and job losses, agricultural impacts, warehouse and truck traffic burdens, emergency vehicle and wildfire evacuation needs, low-carbon fuel standards, gas appliance rules, hydrogen, nuclear energy, and the need for socioeconomic analysis and better communication with affected communities. Public commenters from labor, environmental, local government, and industry groups spoke in support of both nominees. The committee approved Hopkins 4-0 with one member not voting, and Lock Dawson 5-0, sending both nominations to the full Senate. The committee then heard Andrew Rakestraw’s appointment as chair of the Board of Environmental Safety/DTSC oversight board. He described his background in climate and regulatory negotiations and said he would focus on transparency, accountability, fiscal stability, and listening to both regulated entities and disproportionately burdened communities. Senators asked about DTSC reform, the Moss Landing battery fire, community engagement in places like Hinkley/Herupah Valley, fee-setting and the generation-and-handling fee, the Environmental Justice Advisory Council, the Exide cleanup, and the hazardous waste management plan. After supportive public testimony, the committee approved his appointment 3-0, with one member not voting, and sent it to the full Senate for confirmation before adjourning.

Transcript Highlights:

• </c> and coaches on this team have spent and coaches on this team have spent countless<00:15:31.120><
• </c><03:01:50.720><c> policies</c> doubling down on fossil fuel policies doubling down on fossil fuel
• up as expected, but fuel plants ramped up as expected, but fuel prices<03:16:02.399><c> spiked.
• When you build renewable generation, the fuel is free forever. The fuel is free forever.
• ><c> $450</c> administration ultimately spent $450 administration ultimately spent $450 million million

Transcript Highlights:

• Do you know how much fuel that airplane burns in a year? A ton. That fuel is heavily taxed.
• That fuel is heavily taxed. That airplane would have had four pilots.
• He spent 350 days at sea, traveling over 38,000 nautical miles, on his 43-foot sailboat, Allure 40.9,
• I'm just here to tell you, you look at things like a jet fuel increase, potentially as an offset, and
• I just did that math, and it would be over doubling the jet fuel tax.

Summary: The meeting was an Aviation Caucus gathering hosted at Paine Field and Boeing, with legislators, aviation groups, airport representatives, WSDOT, AOPA, Boeing, and other stakeholders introducing themselves and discussing aviation’s role in Washington. Representative Tom Dent opened by emphasizing the caucus’s purpose of educating lawmakers about aviation and aerospace, building relationships with legislators, and protecting the industry from policies he said could harm it. He highlighted a priority to repeal sections of a recent transportation revenue bill that imposed a luxury/privilege tax on aircraft, arguing airplanes are tools rather than luxuries and warning the tax could drive aircraft and business out of the state. Several speakers focused on the economic value of aviation. WSDOT Aviation Director Ann Richard said the industry’s story needs to be framed around broad public benefits, including business activity, medical access, emergency response, and wildfire support, not just recreation. John Dobson presented data claiming aviation and aerospace account for about 12.5% of Washington’s GDP, support hundreds of thousands of jobs, and generate substantial tax revenue, while also arguing that aviation infrastructure is underfunded and that aviation-related fuel taxes and other revenues should be redirected to aviation uses. Boeing representatives described the company’s Washington footprint, recent safety and training reforms, supplier and workforce investments, the permanent site at Moses Lake, and the Core Plus Aerospace workforce pipeline. The meeting also included advocacy updates on mental health in aviation and industry coordination. Brian Baumoff of the Pilot Mental Health Campaign described federal legislation aimed at improving the process for pilots seeking mental health treatment and a Washington proposal to provide leave support for pilots navigating medical certification. Haley Coffey of the Aerospace Futures Alliance invited attendees to an upcoming Hill Day to advocate for aerospace. AOPA’s Brad Schuster warned that the aircraft tax proposal and possible offsets like higher jet fuel taxes could have severe consequences. The caucus also recognized Harry R. Anderson with House Resolution 4645 for becoming the first person to both fly and sail solo to all seven continents. The meeting ended with a short quiz, reminders about badges, and instructions for the Boeing factory tour.

Transcript Highlights:

• ,</c><00:09:10.880><c> chemicals</c> purchased, fertilizer, fuels, chemicals purchased, fertilizer, fuels
• </c> folks that work in the alternative fuel folks that work in the alternative fuel space<00:29:23.200
• </c> was in the system, just like the fuel was in the system, just like the fuel was<00:42:32.880><c>
• Uh, fuel, diesel costs are up. Fertilizer is up.
• Fertilizer is fuel, diesel cost are up.

Committee: Joint Agriculture

Transcript Highlights:

• 50% lower than fossil jet fuel.
• So if you get to a fuel that has a carbon intensity that's 100% lower than fossil jet fuel, it would
• Replacing traditional jet fuel with sustainable aviation fuel provides a benefit to the entire state
• Al Sandra Mniosko, on behalf of the California Fuels and Convenience Alliance, representing fuel retailers
• Do we want to say they're burning jet fuel?

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:

• He said he spent much of his military career lowering the elevation of hilltops in Oklahoma and called
• On page 77, this is the core for fuel and utilities.
• Fuel and utilities include electricity, gas, fuel, wood chips, steam, water, and sewer, along with maintenance
• No, that would be the fuel and utilities expense. Oh, just the fuel. Okay.
• To recover, we've spent more of this fund because we've had more of that type of overtime.

Committee: House Budget

Transcript Highlights:

• this is an important issue as we're going into another wildfire season in the panhandle where our fuel
• Now we have spent, as I told you, $115 million already, so we're well beyond our $9 million.
• Fuel when you don't graze down to the nubs, so the practices have changed.
• With the wrong weather conditions and the wrong temperatures and the wrong fuels, we will always lose
• So while I am very unhappy about how this $257 million is about to get spent because I don't believe

Committee: House State Affairs