Transcript Highlights:

• We'll now call the Special Committee on Tax Reform to order. Madam Clerk, please call the roll.
• one day. ...financial growing account that would allow them to hopefully one day maybe not be paying taxes
• not having similar, like Alaska, where their resources actually allow their residents not to have a tax
• This could be a situation that gives the State Tax Commission more oversight and more control over individual
• And while Jackson County has been, I think we view the State Tax Commission a little differently in Jackson

Committee: House Special Committee on Tax Reform

Summary: The Special Committee on Tax Reform met with seven members present and first took up SJR 95. After brief discussion, including support from members who said it would help future generations and one member who opposed it because of budget concerns, the committee voted 4-3 to do pass the resolution. The committee then considered HB 2923, a property tax relief bill. Members adopted a technical amendment and then a committee substitute. Supporters said the bill was intended to encourage homeowners to maintain their homes, while opponents said it would create a complex, subjective, and burdensome administrative process for county assessors and could amount to an unfunded mandate. Assessor testimony cited concerns about added expense, reduced local control, and increased State Tax Commission oversight. After discussion, the committee voted on the House Committee substitute for HB 2923 and passed it 5-3. The meeting then adjourned with no further business.

Transcript Highlights:

• bill and surcharge holiday, and a two-year green energy tax holiday.
• SURCHARGE HOLIDAY, AND A TWO-YEAR GREEN ENERGY TAX HOLIDAY.
• AND THIS AMENDMENT WOULD SUSPEND THE FOLLOWING TAXES FOR ONE YEAR.
• One would give energy tax relief to everyone by removing government taxes.
• ONE WOULD GIVE ENERGY TAX RELIEVE TO EVERYONE BY REMOVING GOVERNMENT TAXES, WHO CAN DISAGREE WITH THAT

Summary: The Senate convened, approved the prior journal, and then took up a series of utility and public service bills and resolutions. A resolution sponsored by Senator Scarcella-Spanton designating April 9, 2026, as Yellow Ribbon Day was adopted after remarks honoring veterans, active-duty service members, and their families. The chamber then moved through several Public Service Law measures focused on utility affordability, consumer protections, and PSC procedures, with some bills laid aside and others advanced. Among the bills passed were measures by Senators Mayer, Cleare, Hinchey, Comrie, and Parker. Debate on the Mayer bill centered on limiting utility expenses and fees recoverable in rate cases; supporters said it was part of a broader package to reform PSC practices, while opponents argued it would not lower current bills and had been softened from earlier versions. The Webb bill creating a residential utility usage monitoring program drew extended debate over whether it would meaningfully reduce costs, who would pay for the program, and whether it could lead to government monitoring of household usage; supporters said it would give consumers more control and transparency, while critics said it would not lower rates. The Gonzalez bill, which would add consumer protections during PSC investigations and delay shutoffs in certain circumstances, also passed after questions about whether it applied to rate cases, with the sponsor saying rate cases were explicitly excluded. Several members explained their votes, with supporters emphasizing affordability, transparency, and consumer protection, and opponents arguing the package would not address immediate rate relief and could burden ratepayers or encourage nonpayment. Senator Tedisco and others criticized PSC appointments and state energy policy, while Democratic sponsors argued the bills were part of a longer-term effort to reform utility regulation and address climate and affordability concerns. The chamber restored multiple bills to the non-controversial calendar before final votes, and the recorded results showed passage of the major utility bills by substantial margins, along with one amendment appeal being ruled nongermane and rejected.

Transcript Highlights:

• And, of course, there's still oil tax allocations that will And, of course, there's still oil tax allocations
• tax rate on all returns that are being filed.
• Individual income tax, about 10% below.
• So quite a mix there in our four major tax types.
• And corporate income tax, we expect some upward revision.

Summary: The Budget Section met with a quorum, approved the December 10, 2025 minutes, and received a general fund and revenue update from the Office of Management and Budget. OMB reported the state was about $2 million ahead of forecast biennium-to-date, with an estimated ending general fund balance of about $397.5 million. Joe Morset also reviewed balances in major funds, oil tax revenues, interest income, federal grant reporting, fiscal irregularities, the voluntary separation incentive program, vacancy savings, and the FTE pool. Members asked about the higher-than-forecast interest income, the effective oil tax rate and stripper-well production, the impact of temporary pay adjustments and vacancy savings, and whether the voluntary separation program could reduce institutional knowledge or shift duties to remaining staff. The committee then approved four Emergency Commission requests: $5.26 million for DPI to support an AI-enabled tutoring platform, $105,000 from the general fund contingency for Corrections GPS monitoring, about $1.963 million for HHS SPACES eligibility system upgrades tied to Medicaid work requirements, and about $1.2 million for SNAP eligibility IT improvements. Legislative Council reported remaining interim spending authority after those approvals, and NDIT gave an update on digital accessibility compliance efforts, saying the state has made substantial progress on websites and PDFs but that applications will take longer to remediate. NDIT also reported on the Infinite Campus student information system rollout, noting data migration remains the biggest challenge and that a supplemental vendor is being brought in to help get districts ready for summer go-live. Greg Hoffman then gave a brief update on NDIT’s operational fund, saying cash remains negative in PeopleSoft but accounts receivable keeps the fund functioning within federal limits. The Supreme Court reported on its new and vacant FTE funding pool, saying it has filled 7 of 10 new positions and has realized some vacancy savings, and Legislative Council provided a similar report for the legislative branch along with a reminder that budget action reports are available online. The Department of Transportation presented its Flexible Transportation Fund, explaining the fund’s allocation formulas and ranking process, and sought Budget Section approval for two projects over the $10 million threshold: a Medora city streets and sidewalk project and a Cass County bridge replacement. Members questioned whether funding Medora streets could set a precedent for city street reconstruction and whether the bridge application process fully reflects statewide needs. DOT said the projects were scored competitively and that the bridge list does not capture all deficiencies statewide.

Transcript Highlights:

• Retroactive real property tax exempt status.
• Senate Print 10180A, an act to amend the Real Property Tax Law.
• Senate Print 10319, Senator Webb, an act to amend the Tax Law.
• Senate Print 10556, Senator Webb, an act to amend the Tax Law.
• Senate Print 10319, Senator Webb, an act to amend the Tax Law.

Summary: The Senate convened, approved the prior day’s journal, and then processed a large number of motions to discharge bills from committees and substitute identical Senate or Assembly versions for third reading. The chamber also adopted the resolution calendar with exceptions and took up several resolutions and ceremonial recognitions, including a resolution mourning Hudson Talbott, a Dairy Month resolution highlighting New York’s dairy industry, and introductions honoring Niskayuna academic teams, Gabriella Scheer for receiving the Liberty Medal, the Hartstein family’s civic engagement, and Diana Cochran’s advocacy for safe firearm storage. The Senate then moved through the calendar and passed many bills on topics including insurance, public health, education, labor, social services, banking, local government, veterans, public service, consumer protection, criminal procedure, cannabis, parks, taxation, election law, and highway matters. Several members explained votes on notable measures: support for acupuncture insurance coverage, consumer protections for doorbell-camera data sharing, expanded protections in debt collection cases, trauma-informed procedures for sexual assault survivors, a Legionnaires’ disease awareness program, changes to mandatory minimum sentencing, and universal safe storage of firearms. A number of home rule and local authorization bills were also approved, including parkland alienation measures and local tax exemption authorizations. Most measures passed with broad bipartisan support, though some drew recorded opposition. Notable roll calls included the consumer debt uniformity bill, the mandatory minimum sentencing bill, the safe storage/firearms bill, and the public housing and public health measures, each with more divided votes. The chamber also accepted a lengthy Rules Committee report sending many additional bills directly to third reading, and then began the supplemental calendar, passing at least the first items before the transcript ended.

Transcript Highlights:

• Contributions go in post-tax.
• Idaho taxpayers can then take up to a $12,000 tax deduction for joint filers or $6,000 for individual
• Anyone who is an Idaho resident and contributes to an account can take the tax deduction.
• Additionally, in 2020, Idaho was just one of a handful of states that began offering employers a tax
• In 2025, 16 employers participated in the tax credit and contributed over $219,000 to their employees

Committee: House Education

Transcript Highlights:

• That $4 billion is going to be taxed in real property and tangible property.
• revenues from 2017 state and local tax revenues from 2017 to<00:20:32.640><c> 2021.
• And again, I go back to the enabler, which is that sales tax exemption piece.
• <00:24:06.799><c> was</c><00:24:07.039><c> passed</c> sales tax exemption bill was passed sales tax exemption
• </c> areas that have had that sales tax areas that have had that sales tax exemption<00:24:23.840><c>

Summary: The Artificial Intelligence Task Force met with a quorum, adopted prior meeting minutes, and then focused on energy policy and economic development as they relate to AI and data centers. John Bevington of LG&E and KU, introduced by Caroline Clark of LG&E/KU and PPL, described the utility’s Kentucky-only service territory, vertically integrated system, 1.3 million customers, and about 7.5 gigawatts of generating capacity. He said the company has supported 76 Kentucky projects in 2024 totaling about $3 billion in announced investment and roughly 3,000 jobs, with a large share of statewide announcements occurring in its service area. Bevington said LG&E and KU’s current project pipeline is unusually strong, totaling about 170 projects and 8.5 gigawatts of requested power, with data centers accounting for about two-thirds of that demand. He broke the pipeline into existing customer expansions, new-to-Kentucky projects, and 20 data center projects representing about 5.6 gigawatts of potential load. He highlighted a Louisville data center project by PO Development Company and Powerhouse Data Centers that has announced a 400-megawatt facility and may expand to 525 megawatts, estimating that such a project could represent about $4 billion in investment. He also explained that large data centers generally must locate near transmission lines and that utilities must conduct studies, order long-lead equipment, and secure reimbursement commitments before proceeding so other customers are not harmed. Members asked about how Kentucky compares with other states, the size of data center projects, and whether regulatory reform is needed. Bevington said the 20 projects reflect current Kentucky interest, which he attributed in part to the state’s sales tax exemption for data centers, and noted that states like Ohio have had similar incentives for years. In response to questions from Senator Thomas, he confirmed that data centers can vary in size and said the state should have a regulatory environment that supports economic development, while emphasizing that the benefits would flow to the state, local communities, and schools rather than just the utility. He also cited national and regional data suggesting data centers generate indirect jobs and tax revenue, and said LG&E and KU are investing in transmission, reliability, solar, and gas generation projects, including proposed additional 645-megawatt natural gas units and other system upgrades, to meet expected demand.

Transcript Highlights:

• And taxes are going up. When values go up, taxes also go up.
• </c><00:24:29.919><c> credits,</c><00:24:30.559><c> tax</c> in the form of state tax credits, tax in
• </c> that state tax credit that I mentioned. that state tax credit that I mentioned.
• I I'm here tax credit developers.
• ><c> taxing</c> some tax credits, some taxing taxing some tax credits, some taxing taxing incentives<

Summary: The Housing Task Force 2.0 reconvened with several new members and heard a presentation from Kentucky Housing Corporation Executive Director Winston Miller and Deputy Executive Director Wendy Smith. They framed the task force’s work as a practical effort to address Kentucky’s housing shortage, update members on the current housing landscape, summarize existing state and federal resources, and suggest areas for the task force to focus on over the coming year. KHC said its 2024 housing supply gap analysis found Kentucky is short about 206,000 housing units, split roughly evenly between rental and homeownership, and projected the gap could grow to 287,000 units by 2029 if current trends continue. They emphasized that every county in Kentucky needs more housing, that the 2008 housing crisis and loss of construction capacity remain major causes of the shortage, and that current pressures include high interest rates, rising insurance and tax costs, construction cost inflation, and housing prices and rents growing faster than incomes. KHC also said homelessness has risen in Kentucky, with point-in-time counts showing double-digit increases in recent years. The presenters reviewed existing resources, including federal programs, the Kentucky Affordable Housing Trust Fund, the rural housing trust fund, KHC mortgage and down payment assistance programs, and the state mortgage interest deduction. They said these resources are important but insufficient to close the gap, and noted that a proposed federal FY2026 budget would cut HUD programs by 44%, potentially removing about $286 million from Kentucky housing resources, though no action has been taken yet. They urged the task force to consider stronger, more flexible tools such as a revolving loan fund, a state affordable housing tax credit, and economic development and employer-assisted housing incentives, and pointed to Indiana’s housing infrastructure and regional development funds as examples. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• tax things.
• tax things.
• </c> they're not and it says no tax on tips. they're not and it says no tax on tips.
• So there the no tax on car that.
• </c> collections for individual income tax. collections for individual income tax.

Transcript Highlights:

• tax in those years.
• So we've done this on tax reform.
• So we've done this on tax reform.
• So we've done this on tax reform.
• </c> income tax. income tax.

Committee: Joint Economic Development & Workforce Investment

Transcript Highlights:

• So my question is, if we remove this, what are the consequences of doing that in relation to public tax
• Right now, state tax dollars go to religious medical schools I'm glad to have you here.
• Tax dollars are moved around to support these choices. The U.S.
• Supreme Court has ruled that if scholarships, grants, tax credits, or any other distribution of tax dollars
• Public tax dollars aren't going to be spent on religious schools.

Committee: House State Affairs

Transcript Highlights:

• We've talked to a few veterans already that have said that, you know, with the tax incentives and the
• Uh, we've been very busy, uh, for the veteran tax exemptions up through this year.
• We have done, uh, in, in excess of 25, uh, outreach events on these tax incentives, and we have them
• We've had many new veterans apply for the $10,000 the veteran tax exemption of 10,000, and uh.
• Um, maybe we can just add, looking again at taxes, I think in general, um, veterans and military taxes

Transcript Highlights:

• You mentioned the taxes that the IOUs have to pay for investments that they make.
• Yeah, the tax gross-up. It's called tax gross-up in regulatory lingo.
• Let's cut taxes. Let's just cut the tax.
• So a big chunk of that is federal taxes. Well, state taxes. So you support cutting state taxes?
• Just trying to get ratepayers to not be on the hook for taxes, more taxes. All right.

Summary: The Assembly Committee on Utilities and Energy heard two bills focused on electricity affordability and utility costs. AB 745, by Assembly Member Irwin, would restructure the California Climate Credit by shifting it from lump-sum payments to direct reductions in volumetric electricity rates and moving the credit to the summer months when bills are highest. The author and UC Santa Barbara economist Dr. Kyle Meng argued this could significantly lower summer rates and better help households during extreme heat. Supporters, including UCS, NRDC, and some labor representatives, favored the concept, with some urging that the gas climate credit also be redirected. No opposition testimony was presented, and the bill passed 18-0 to the floor. The committee then considered AB 825, also presented as an affordability package aimed at reducing electric bills by addressing wildfire mitigation costs, transmission financing, permitting delays, and a review of ratepayer-funded programs. The bill would authorize securitization for undergrounding expenses, remove the first $15 billion in undergrounding capital investments from the rate base for return purposes, create a public transmission financing program using Proposition 4 funds and IBank support, revive the California Power Authority as a public sponsor, and establish a task force to review energy efficiency and demand response programs. The author and witness Matt Friedman of The Utility Reform Network said the bill could save ratepayers billions over time through lower-cost public financing and securitization. Testimony on AB 825 was mixed. Support came from several consumer and clean-energy groups, while utilities and labor raised concerns about the bill’s impact on utility financial stability, wildfire fund participation, liability, and whether the $15 billion securitization cap could discourage undergrounding. Some witnesses also objected to the task force’s potential effect on energy efficiency and demand response programs. Committee members discussed the need to balance affordability with utility creditworthiness and wildfire safety, and several asked for more analysis of market impacts and liability issues. Despite those concerns, AB 825 passed the committee 13-0 and was sent to the floor.

Transcript Highlights:

• Tom Yamamaica from Tax Foundation of Hawaii.
• Tom Yamamaica from Tax Foundation.
• credit for tax year 22.
• credit for tax year 22.
• I think the uh tax requirement.

Committee: House Finance

Transcript Highlights:

• beginning farmer tax credit that uh our beginning farmer tax credit that uh our uh<00:42:36.480><c> egg
• </c> needs to be sent to the tax committee. needs to be sent to the tax committee.
• What the bill before you tax credit.
• So, the tax credit helps bolster that relationship.
• It's also a time when the broadband industry is seeking tax relief, sales tax relief, and relief from

Committee: Senate Agriculture, Veterans, Broadband, and Rural Development

Transcript Highlights:

• </c><01:43:39.480><c> or</c> we pass either lowers property taxes or we pass either lowers property taxes
• </c><01:44:42.320><c> burden</c> time we recognize the real tax burden time we recognize the real tax
• </c> 91% return to the hospitals of their tax 91% return to the hospitals of their tax payment<02:13:
• </c> elderly disabled blind and deaf tax elderly disabled blind and deaf tax property<02:47:51.399><c
• ><c> would</c> property tax exemption fund which would property tax exemption fund which would provide

Transcript Highlights:

• </c> will be reimbursed 100% of all the tax will be reimbursed 100% of all the tax credits<03:34:11.760
• April 15th, when their tax payments are April 15th, when their tax payments are due,<03:52:16.960><c>
• </c> congregate housing and maintain tax congregate housing and maintain tax exempt<04:49:38.878><c>
• The bill as local property taxes.
• </c><05:14:18.798><c> exemption</c> of the u language around tax exemption of the u language around tax

Transcript Highlights:

• </c><02:15:21.520><c> on</c><02:15:21.719><c> Real</c> a sort of a tax on Real a sort of a tax on Real
• </c> the transit accommodation tax the transit accommodation tax collections<02:38:34.720><c> were</c
• If that tax is to be administered as it does with most general excise taxes, then we ask that it is specified
• </c><02:43:54.240><c> on</c> it imposes a general excise tax on it imposes a general excise tax on Sports
• </c> if those tax is to administer this tax if those tax is to administer this tax as<02:44:21.200><c

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee met on February 12 at 2 p.m. and heard several measures related to corrections, re-entry, law enforcement, retirement benefits, and gun violence prevention. On HB 10002, which would extend the Hawaii Correctional System Oversight Commission coordinator’s term and clarify unannounced inspection authority, the Department of Corrections and Rehabilitation said it had no objection to the term length or to 24/7 unannounced access. The commission’s chair, Commissioner Mark Patterson, asked for a longer term, saying the commission needs more time and stability to manage reform efforts after years without staff during COVID. Community Alliance on Prisons and Carolyn Eaton also supported a longer term, with both suggesting six years would better insulate the position from politics. The chair noted he had asked Chair Bot for background on the prior committee’s changes and said that could be discussed during decision-making. The committee then heard HB 67, which would require DCR to help inmates obtain civil identification documents such as IDs, birth certificates, and Social Security cards as soon as practicable, including for people in furlough or community placement programs. DCR said it supported the bill and described ongoing work with the city and county on ID machines and with agencies on certificates and Social Security cards. The Office of Hawaiian Affairs, the Oversight Commission, Community Alliance on Prisons, and the Office of Public Defense all supported the measure, emphasizing that identification is essential for housing, employment, and successful re-entry and noting the disproportionate impact of incarceration on Native Hawaiians. On HB 1183, which would classify certain law enforcement administrators and Department of Law Enforcement employees as Class A members for retirement purposes, the Department of Human Resources Development, the Employees’ Retirement System, and the Department of Law Enforcement all supported the bill. DHRD said it would help recruitment and retention, ERS said it had technical amendments to suggest, and DLE said the change would help with succession planning and allow the governor to appoint the most qualified leader. The committee also heard HB 1045, an emergency appropriation bill to cover payroll fringe benefits for Department of Law Enforcement personnel after salary funding had been shifted to other departments; Budget and Finance and DLE explained the need for the supplemental funding, and no opposition was noted. Finally, the committee took up HB 664, which would create an Office of Gun Violence Prevention, a grant program, a resource bank, and a special fund. The Attorney General recommended adding standards for grant awards and warned of overlap with the existing Gun Violence and Violent Crimes Commission, suggesting consolidation and repeal of the older commission to avoid duplication. Supporters included the Brady Campaign, Everytown for Gun Safety, Moms Demand Action Hawaii, a physician, and an Army veteran, who argued the office would centralize data, coordinate prevention efforts, and help secure outside funding. Testimony was mixed, with the chair noting 37 supporters, nine opponents, and three commenters, but no vote was taken during the hearing.

Transcript Highlights:

• THEN OF COURSE THIS HAS EXCISE TAX WHICH I WILL SPEAK ON THE PROPOSED AMENDMENT.
• THIS IS THE BILL THAT TAXES HEMP SALES. >> Chair McClure: FANTASTIC, QUESTIONS ON THE BILL.
• BY PROPOSING THC MILLIGRAMS CAPS AND AN EXCISE TAX.
• AT PRESENT 21 AND OLDER RECREATIONAL DON'T USE STATES HAVE THC AND EXCISE TAXES.
• IN THE STATE OF FLORIDA WE DON'T TAX VITAMINS, DON'T TAX SUPPLEMENTS AND WHILE I RECOGNIZE YOU'RE TRYING

Transcript Highlights:

• Because of the potential for an increased tax burden and affordability concerns, Cal Tax respectfully
• California has the highest state-imposed sales and tax sales and use tax rate in the U.S. at 7.25%.
• Because of the potential for an increased tax burden and affordability concerns, Cal Tax respectfully
• The vote that we make today is not to approve a tax.
• The vote that we make today is not to approve a tax.

Committee: Senate Transportation

Transcript Highlights:

• This is not coming from the State Tax Commission.
• It doesn't have to do with, like, sales taxes. No.
• Okay, it's a property tax bill.
• taxes received from the assessor to the election authority.
• Yes, this legislation uses tax credits, but these tax credits are non-refundable, non-transferable, and

Summary: The House opened with prayer, the Pledge of Allegiance, approval of the prior day’s journal by a 124-1 vote, and numerous introductions of student groups, health professionals, and other guests. Committee reports were then read, including several bills recommended “do pass.” The chamber also heard a personal privilege speech from a St. Louis County member responding to a North St. Louis County school track meet shooting, calling for stronger action on gun access and firearm safety. The main floor work focused heavily on appropriations and capital projects. House Bills 2017, 2018, 2019, and 2020 were debated and passed, covering reappropriations, maintenance and repair projects, new capital improvements, and remaining ARPA pandemic funds. HB 2017 passed 137-9, HB 2018 passed 127-21, HB 2019 passed 98-48, and HB 2020 passed 127-24. Members emphasized that the bills largely used previously appropriated or federal funds, while some Democrats raised concerns about general revenue spending and one-time infrastructure projects. The House also adopted and finally passed Senate-amended HB 2641 on hemp/cannabis-related regulation, with changes on privacy, worker organization, effective date, and age restrictions; it passed 125-21 on adoption and 126-23 on final passage. HB 2423, dealing with Department of Finance staffing and capacity, passed unanimously after Senate adoption. Other measures passed included HB 1919 on electronic filing parity with IRS rules, HB 1768/2060 on short-term rental property tax classification, HB 1855 adding Alpha-Gal Syndrome to reportable conditions, HB 2355 creating a Food is Medicine pilot option, HB 1717/1643 on psilocybin therapy for veterans and first responders, HB 2372, a broad health care package, HB 2408 on the deaf-blind fund, HB 3000 on auditor/siganture-related procedures, HB 2898 restoring land bank tools, and HB 1740, “Melanie’s Law,” strengthening DWI penalties and ignition interlock requirements. Not all bills advanced: HB 3239, which would have expanded and funded the workforce diploma program through MoCAP, failed 55-95 after criticism that it shifted K-12 formula money and stripped vendor standards. HB 2760, the “Praise Act” on treatment of houses of worship during emergencies, drew extended debate on religious liberty, public health, and consistency in emergency orders; the transcript cuts off before the final vote is shown. Throughout the day, members frequently cited bipartisan support for health, public safety, and administrative bills, while several measures drew sharper partisan or policy disagreements over funding, regulation, and local control.