Transcript Highlights:

• tax returns are due by April 15th, it takes a while to process them, send out refunds, collect the payments
• , so I don't have anything definitive... ...send out refunds, collect the payments.
• We are in the ball... send out refunds, collect the payments.

Committee: Joint Joint Legislative Budget Committee

Summary: The Joint Legislative Budget Committee approved the minutes from its March 5, 2026 meeting and then entered executive session, where it approved a recommended settlement. After returning to open session, the committee took up the Attorney General’s opioid settlement expenditure plan. Staff explained that Arizona will receive opioid settlement funds over many years and that the FY 2026 budget appropriated $10 million for distribution to five counties. The plan would allocate $2 million each to Coconino, Mohave, Navajo, Pinal, and Yavapai counties. Members expressed support, noting the funds would continue programs they viewed as effective, and the committee gave the plan a favorable review. The committee also considered an Arizona Department of Administration request to transfer $7 million within the risk management revolving fund. Of that amount, $5 million would go to workers’ compensation losses and premiums to cover higher program costs, and $2 million would go to administrative expenses for higher-than-budgeted Attorney General contracted legal costs. Members described the transfer as a routine budget adjustment, and the committee approved it. Before adjournment, members asked staff about recent revenue trends, including April numbers and sports betting revenue. Staff said April data were still being analyzed and no definitive figures were available yet. On sports betting, staff said Arizona’s tax rate is in the range of other states but tends to be on the lower end. The committee then adjourned.

Transcript Highlights:

• The state is given 60 days to locate the account, and payment only occurs if the account truly cannot
• The payment she should have received hasn't been received for a number of years.
• Um, Miss Cook can testify that the payments were deducted and there's been no payment received on her
• ><c> received</c><00:04:43.680><c> hasn't</c> payment she should have received hasn't payment she should
• payment deducted and there's been no payment received<00:05:01.840><c> on</c><00:05:02.080><c> her</

Transcript Highlights:

• Chair, this is only a technical difference between the House and the Senate in terms of how the payment
• after that, I would of those payments after that, I would appreciate<00:25:49.039><c> it.
• Um, one of the things that we have identified as a potential challenge is as we get to that last payment
• Um, one of the things that we have identified as a potential challenge is as we get to that last payment
• Potential challenge is as we get to that last payment of the year, and if we have a set budget, we'll

Transcript Highlights:

• Every member of this committee received a public subsidy payment.
• Every member of this committee received a public subsidy payment.
• Every member of this committee received a public subsidy payment.
• </c><00:41:14.119><c> comes</c> for the public subsidy payments comes for the public subsidy payments
• </c><00:41:57.359><c> and</c> that to the general account payment and that to the general account payment

Committee: House Elections Finance and Government Operations

Transcript Highlights:

• Even though the payment to the provider.
• This includes breakdowns on reinsurance payments by health plan and their products.
• No for-profit insurer is receiving reinsurance payments.
• This includes breakdowns on reinsurance payments by health plan and their products.
• No for-profit insurer is receiving reinsurance payments.

Committee: Senate Health and Human Services

Transcript Highlights:

• And paid leave sends benefit payments directly to Minnesotans on leave.
• </c><00:03:22.480><c> to</c> sends benefit payments directly to sends benefit payments directly to motans
• </c><00:23:57.440><c> is</c> Our current average weekly payment is Our current average weekly payment
• Uh, and a payment might have in time.
• So you do payment cap is at 3600.

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• payment for second injuries. injuries. injuries.
• And this allows an exception for membership-based and direct payment facilities.
• </c> payment for legal services. payment for legal services.
• </c><06:31:39.200><c> So</c><06:31:39.440><c> we're</c> pay that payment out.
• So we're pay that payment out.

Summary: The committee of conference on HB 1 and HB 2 reviewed comparison documents and worked through a long list of House and Senate positions, agreeing on some technical or already-enacted items while setting aside others for later discussion. Early on, members agreed to delete a House Bill 2 section tied to a bill already passed into law, and a representative explained a technical amendment to the EFA provisions clarifying enrollment-cap repeal language and compulsory attendance rules for EFA students. That amendment was discussed but a vote was postponed because not all members were present. The committee also noted that the overall EFA budget numbers had already been settled separately. Several items were either agreed to or held for further negotiation. Members agreed to delete sections already covered by other enacted bills, including BTLA-related language, and to accept a technical amendment changing "municipalities" to "political subdivisions" in a section affecting funding eligibility. They also agreed on some items involving workers’ compensation second injuries, certain pilot-program language, and some sections related to state loan repayment and other technical corrections. In contrast, they set aside or disputed items involving site evaluation, lottery-related provisions, opioid abatement, the Commission on Aging, Granite Advantage premium costs, renewable energy/offshore wind funding, special education funding, and several education trust fund and unique-fund provisions. The committee spent substantial time on policy disputes. The House side argued against keeping money in dedicated Fish and Game funds rather than increasing the main Fish and Game fund, while the Senate side defended its approach and raised concerns about fee impacts, including one tied to the fishing license. The members also discussed a housing appeals board proposal, with one member suggesting a possible compromise that would preserve some function while shifting duties and possibly sunsetting the arrangement later; the contracts for the positions were noted as running through June 30, 2028 and June 30, 2029. Another extended discussion concerned the child advocate records-access section, which one side wanted removed as policy that should go through the normal bill process, while another member asked to hold it and suggested a possible middle-ground, time-limited approach. Later, the committee agreed to remove sections already handled in other bills, including House sections 254 and 255, and discussed but did not resolve disputes over liquor licensing functions, cannabis-related language, cost containment, special education, and several fee and fund provisions. The Senate explained its position on the governor’s commission language, saying opioid abatement trust funds could not be used for that purpose and that the commission should continue to be funded through 5% of gross liquor profits; it also described renaming the body the Commission on Addiction Treatment and Prevention and expanding its scope to include problem gambling. The meeting ended with several major items still open for later negotiation.

Transcript Highlights:

• So that word incentive payments.
• Does this eliminate all alternative compliance payments for the renewable?
• ,</c><02:44:07.520><c> but</c> still receiving the overp payments, but still receiving the overp payments
• </c> over payments are for prior periods. over payments are for prior periods.
• payments payments &gt;&gt; and<03:11:47.920><c> and</c><03:11:48.080><c> also</c><03:11:48.399><c> again

Committee: House Ways and Means

Transcript Highlights:

• So, you got two things going on. payments. You have major maintenance payments.
• </c> maintenance payment for the formula. maintenance payment for the formula.
• </c> We can calculate the major maintenance payments for each building category.
• </c><00:36:09.760><c> for</c> in how we calculate a payment for in how we calculate a payment for maintenance
• </c> next fall we'll get another July payment next fall we'll get another July payment going<02:45:51.360

Committee: Joint Select Committee on School Facilities

Transcript Highlights:

• have been lags in payment before.
• and the late payments.
• All of the late payments were up date. All of the late payments were up to<03:22:26.800><c> date.
• Um, we have met all the payments. I mean, the payments are on track.
• Um, we have met all the payments. I mean, the payments are on track.

Summary: The joint House Committee on Tourism and Senate Committee on Economic Development and Tourism held an informational briefing on the Hawaii Tourism Authority’s interim action plans, current projects, contract updates, destination management action plans, and state auditor findings. Interim CEO Caroline Anderson described her role as temporary and said she was focused on identifying problems, gathering information, communicating with stakeholders, and implementing solutions. She said HTA is now operating as a typical state agency subject to state controls, but noted that HTA’s work often involves nontraditional programs that can create process errors. She also said she had directed staff to review the auditor’s findings on the destination management action plan process and that the review was posted publicly. A major topic was the search for a permanent CEO and the agency’s restructuring under SB 1571. HTA board chair Tata Po said he hoped to select a CEO within about four months, with three to six finalists expected in roughly two to two-and-a-half months, and said the job description would largely remain the same except for compensation and reporting changes under the new law. Department of Business, Economic Development and Tourism representatives explained that HTA’s board is now advisory and does not approve the budget, while DBEDT retains budget authority. They also said HTA is working with the governor’s office and DBEDT on contract and budget transitions, including a possible shift to a calendar-year process so grantees and contractors have more certainty. Members pressed HTA on staffing, oversight, and accountability, especially around the destination stewardship team and the CNHA/Kilohana and HVCB contracts. HTA said the destination stewardship team supports destination management and product development, including workforce development, sports, and implementation of destination management action plans, and that staff provide direction to contractors rather than simply handing work over to them. Anderson said the stewardship team had 11 people and that the destination management side covered about 15 contracts, while the branding side had three managers overseeing nine contracts. She said the agency had 47 contracts overall and that the major contracts included CNHA/Kilohana and HVCB. Several members criticized HTA’s management history, questioned staffing qualifications and compensation, and expressed concern that the agency had lost public trust. No votes or formal actions were taken during the briefing.

Transcript Highlights:

• that construction contracts in a revitalization district have certain protections related to late payment
• the entity that the contractors identify that they won't be working with if they are not receiving payment
• Determination, expands the avenues in which a person can be considered disabled for the purposes of exempting payment
• Determination, expands the avenues in which a person can be considered disabled for the purposes of exempting payment

Summary: The caucus reviewed a long list of Senate and House bills, many of them on consent or with strike-everything amendments. Early items included SB 1457 on advanced air mobility for border security, SB 1519 raising the off-highway vehicle weight limit to 3,500 pounds, and HB 2383, which now cites the 2014 trampoline court safety law known as Ties Law. Members also discussed SB 1041 on electronic monitoring in health care facilities, with supporters emphasizing resident safety and accountability and opponents from assisted living facilities arguing it could function as a mandate. SB 1168 on dental school complaint jurisdiction, SB 1713 on pharmacist testing authority and HIV prevention, SB 1497 on school district self-insurance procurement, HB 2203 on reducing redundant education reporting, and several other measures were briefly described, with some members requesting bills be pulled from consent or noting support or opposition. The caucus also covered a series of strike-everything bills on housing, labor, licensing, and insurance. These included SB 1118 on historic neighborhood middle housing design standards, SB 1189 on late-payment protections in revitalization district construction contracts, SB 1274 creating a separate timeshare salesperson license, SB 1428 on workers’ compensation notice and recordkeeping, HB 2120 on property tax disability exemptions and widow eligibility, HB 2174 on insurance predictive modeling oversight, SB 1582 on HOA rules for pets and backyard chickens, SB 1503 expanding first responder death benefits to certain law enforcement pilots, and SB 1286 changing prescription lengths for virtual veterinary visits. Members raised questions about the scope and practical effects of several bills, and in some cases noted changes in support, such as unions backing SB 1189 and some members supporting SB 1582’s limits on HOA restrictions. On the second calendar, members reviewed HB 2176 on health facility complaint investigations, HB 2050 on radiologic technologist and assistant supervision rules, HB 2010 on digital goods seller refund requirements, HB 2875 on local regulation of unmanned aircraft and drone delivery near airports, HB 2428 on county emission reduction credit permits, and HB 2877, which was amended in the Senate to create a supervised work route for veterinary technician certification rather than the original timeshare licensing language. Several sponsors were said to intend to concur with Senate amendments, while HB 2010 was headed to conference because the sponsor intended to refuse the Senate’s five-year refund window amendment. The meeting ended after the chair announced the caucus was adjourned, with no formal votes taken in the transcript beyond references to prior floor and committee votes.

Transcript Highlights:

• integrating a business and occupation tax deduction and increasing a rate for persons conducting payment
• And what it does here is establish a B&O tax rate of 3.1% for payment...
• credit card processing activities, and then allows a B&O tax deduction for certain fees related to payment
• Substitute House Bill 2051, the Secretary will read: An act relating to payment to acute care hospitals

Summary: The Senate opened with a moment of silence for Senator Chris Gildon’s wife, Autumn, who had died earlier that day. Members then took up several bills on final passage, moving most of them directly from second to third reading by unanimous consent. Substitute House Bill 2020, dealing with payment card processing activities, was described as resolving a long-running dispute with the Department of Revenue by setting a 3.1% B&O tax rate and allowing certain deductions; it passed 47-0. House Bill 2039, which delays expansion of child support pass-through from 2026 to 2029, drew some opposition over reducing support to custodial parents but passed 25-22. House Bill 2040, delaying elimination of recoveries from the aged, blind, and disabled assistance program from 2025 to 2028, also passed 25-22 after similar debate about protecting vulnerable recipients. Substitute House Bill 2051, concerning payment to acute care hospitals for difficult-to-discharge patients, passed 27-20 after several proposed amendments were withdrawn. Engrossed Substitute House Bill 2061, imposing a 10% concession fee on duty-free sales to fund tourism promotion and sustainable aviation fuel, passed 27-20 despite Republican concerns it was a tax increase that would be passed on to consumers. Substitute House Bill 2077, which creates taxes on certain zero-emission vehicle credit transactions, defeated an amendment that would have removed the tax on banked credits; supporters framed it as encouraging use of credits and clean transportation investment, while opponents called it a targeted “Tesla tax.” It passed 28-19. The Senate then returned to Engrossed Substitute House Bill 1293, a litter and plastic bag policy bill. After the House refused to concur in Senate amendments, the Senate receded, adopted a striking amendment, and passed the bill 27-20. The chamber then adjourned until April 27, 2025.

Transcript Highlights:

• integrating a business and occupation tax deduction and increasing a rate for persons conducting payment
• And what it does here is establish a B&O tax rate of 3.1% for payment...
• credit card processing activities, and then allows a B&O tax deduction for certain fees related to payment
• In act relating to payment to acute care hospitals for difficult-to-discharge medical patients.

Summary: The Senate opened with a moment of silence for Senator Chris Gildon and his family after the death of his wife, Autumn. It then took up several bills on final passage, beginning with Substitute House Bill 2020, which establishes a 3.1% B&O tax rate for payment card processing activities and allows a deduction for certain related fees. Supporters said it resolves a long-running dispute with the Department of Revenue; it passed 47-0. The chamber also passed House Bill 2039, delaying the child support pass-through expansion from 2026 to 2029, and House Bill 2040, delaying the elimination of recoveries from the Aged, Blind, and Disabled Assistance Program from October 2025 to October 2028. Supporters framed both as timing changes, while opponents argued they would postpone benefits for families and vulnerable people. Both bills passed 25-22. Substitute House Bill 2051, dealing with payment to acute care hospitals for difficult-to-discharge patients, passed 27-20 after several proposed amendments were withdrawn. Supporters said the bill helps hospitals care for patients who have nowhere else to go, while opponents argued the state should not delay payment support for these patients. The Senate also passed In Gross Substitute House Bill 2061, imposing a 10% concession fee on duty-free sales to fund tourism promotion and sustainable aviation fuel, over objections that it was a tax increase passed on to consumers. Finally, Substitute House Bill 2077, which taxes certain business activities related to zero-emission vehicle credits, passed 28-19 after an amendment to remove or narrow parts of the tax was rejected. Supporters said the measure would encourage spending of credits and support clean transportation goals, while opponents called it a targeted tax on Tesla and warned it could raise EV prices. The Senate then concurred in amended Engrossed Substitute House Bill 1293, a litter and plastic bag measure that increases litter penalties and keeps the planned bag-thickness increase from taking effect, and passed it 27-20. The Senate adjourned until April 27, 2025.

Transcript Highlights:

• 50 PERCENT REPORTED CURRENTLY PICK IT ADDITIONALLY REQUIRES OCCA TO REPORT TO THE LEGISLATURE IN PAYMENTS
• MEDICARE QUALITY AND SENATE PROGRAM THAT REPORT MUST INCLUDE QUALITY OF CARE THAT MAY BE TO THE PAYMENTS
• OCCA TO BEGIN WORKING WITH SURVEY RESULTS WORK IN THE SURVEY RESULTS AND TO THE QUALITY INCENTIVE PAYMENT
• LASTLY THE AMENDMENT DIRECTED TO ENGAGE A CONTRACTOR TO STUDY NURSING HOME QUALITY PAYMENT SYSTEMS AND

Transcript Highlights:

• of the first month's rent to get into a new housing situation or a short-term payment to allow them
• Doing so would return UC and CSU state payments to their regular schedule.
• As it relates to the Year 5 compact payment, this reflects $254.3 million ongoing General Fund for the
• As it relates to the partial fourth-year compact payment in the budget year for the UC, this is $96.3
• For the fourth-year compact payment in the budget year for the UC, this is $96.3 million and for the

Summary: The subcommittee heard opening remarks and updates from UC President James Milliken and CSU Chancellor Mildred Garcia on the state of higher education, including federal funding losses, civil rights/Title IX compliance, enrollment, housing, and budget needs. Both leaders emphasized the value of UC and CSU to California’s workforce, research, and economic mobility, while warning that federal grant cancellations, investigations, and changes to student aid are creating major financial and operational strain. UC reported losing or having at risk more than 1,600 grants and over $1 billion in research activity, while CSU said it had lost more than 200 grants totaling about $161 million, including minority-serving institution grants that affected student support programs. Both systems said they are investing in civil rights services and trying to limit the release of personally identifiable information in response to federal requests. The committee then reviewed the higher education student housing grant program. Finance and Legislative Analyst’s Office staff said the governor’s budget does not include major new changes but continues support for the program. CSU reported 12 approved projects that will add about 5,047 beds, with roughly 75% below market rate, and said it has about 68,000 beds systemwide, a 92% occupancy rate, and ongoing housing insecurity among students. UC said its housing projects have added more than 7,000 beds when reduced-rent and regular-rent units are combined, but nearly 10,000 students were on housing wait lists at the start of fall 2025. Both systems described rapid rehousing efforts, emergency beds, and partnerships with community colleges, and UC noted several joint housing projects, including at Riverside, Merced, and Santa Cruz. Members discussed whether future housing bonds and use of surplus school sites could help expand capacity. In the enrollment section, the LAO recommended maintaining UC’s 2026-27 resident undergraduate target, funding enrollment growth separately from base increases, pausing the nonresident reduction plan at the three highest-demand UC campuses, and holding UC enrollment flat in 2027-28. For CSU, the LAO recommended revising the 2026-27 enrollment expectation downward to reflect updated projections, while also funding enrollment growth separately and holding enrollment flat in 2027-28. CSU said it has rebounded from pandemic-era declines, is above its funded target by about 3,000 FTE, and is shifting about $89 million and 10,000 FTE from lower-demand campuses to higher-demand ones while developing turnaround plans for seven campuses with sustained enrollment declines, including Sonoma State. UC said it has already exceeded its compact enrollment goals and is planning continued growth, but that sustaining it depends on ongoing state support. Members raised concerns about campus-specific enrollment declines, nonresident caps at UC San Diego, and the need for stronger turnaround plans and teacher preparation pathways. The final section covered core operations and deferred payments: Finance said the governor proposes another one-year deferral of about $129.7 million for UC and $143.8 million for CSU, and the LAO recommended retiring the deferrals when one-time funds are available. CSU described rising compensation, financial aid, utilities, insurance, and deferred maintenance costs, and said it is pursuing cost-saving measures such as procurement alignment, campus integration, and shared administrative services.

Transcript Highlights:

• We have example after example of millions of dollars where we gave advanced payment funds for hospitals
• program, including a wide variety of different types of permissible payment arrangements.
• and the use of funds like provider assessments to be used as the state's share of Medicaid payments.
• the attendance-based payment.
• They receive reimbursement or depreciation payments from the state for these buses.

Bills: SB5808 , HB2254 , HB2385 , SB6006 , SB6351 , SB6198 , SB6260 , SB6353 , SB5949 , SB6129 , SB6228 , SB6231 , SB6229 , SB6173

Committee: Senate Ways & Means

Keywords: health insurance, premium assistance, funding, healthcare access, state budget, HB 2254, Washington, Health Care Authority, partnership access line, psychiatric consultation line, first approach skills training, behavioral health, mental health, assessment, administrative costs, health carriers, self-funded plans, multiple employer welfare arrangement, MEWA, employers

Transcript Highlights:

• We have example after example of millions of dollars where we gave advanced payment funds for hospitals
• program, including a wide variety of different types of permissible payment arrangements.
• A provider may claim monthly payment for the number of days in which a child is authorized if a child
• In July 2026, provider payment will transition from a retroactive, attendance-based reimbursement system
• the attendance-based payment.

Summary: The committee opened with a public hearing on Senate Bill 5808, a proposal to require nonprofit health carriers with “excess surplus” to pay 10% of that surplus into the state health care affordability account for Cascade Care Savings. Committee staff said the bill could generate about $330 million one time in 2027, while the Office of Insurance Commissioner would have implementation costs. Supporters argued the bill would redirect consumer premium dollars to help people afford coverage, while opponents from health plans said reserves are needed for solvency, claims, and capital needs and warned the bill would destabilize nonprofit insurers. The committee also heard testimony on House Bill 2254, which would let the Partnership Access Line assessment cover administrative costs; HCA and Seattle Children’s supported it as a technical fix that saves general fund dollars, and a child psychiatrist asked that savings be reinvested in behavioral health services. House Bill 2385, which extends deadlines for the Medicaid Access Program because of federal restrictions on new provider taxes, also drew support from provider groups seeking future Medicaid rate increases. The committee then heard Substitute Senate Bill 6286, which would increase fines on private detention facilities that deny Department of Health inspections and dedicate the fines to an account for community repair and assistance to harmed individuals and families. Supporters, including Tacoma’s mayor and family members affected by detention, framed the bill as an accountability measure; fiscal staff estimated Department of Health costs of about $395,000 in the 2025-27 biennium. Senate Bill 6006 would exempt food banks from sales tax on certain services enacted last session, with food bank and tribal representatives saying the savings would go directly to food and operations. Senate Bill 6351 would create exemptions from the new sales tax on live presentations for before- and after-school care, arts and cultural nonprofit classes, and K-12 school purchases; school districts, arts groups, and PTA representatives supported it, while asking for clarifying language and broader nonprofit exemptions. Engrossed Substitute House Bill 1717 would let cities and counties create local sales tax remittance programs for affordable housing projects, and housing builders, Habitat affiliates, counties, and city officials supported it as a local tool to lower development costs. In executive session, the committee received briefings on several tax and spending bills and then voted to advance multiple measures. It adopted a substitute and passed Senate Bill 5949, which narrows a B&O tax exemption related to insurance premiums; a proposed retroactivity-removing amendment failed. It adopted a substitute and passed Senate Bill 6129 on cigarette, tobacco, and nicotine taxes after rejecting several amendments, including proposals to study the tax policy or replace the bill with illicit-market enforcement language. The committee also passed Senate Bill 6228 repealing a preferential B&O rate for prescription drug resellers, Senate Bill 6231 repealing data center sales tax exemptions, and Second Substitute Senate Bill 5965, which retained a bag-fee approach rather than a full ban after adopting an amendment. The committee then returned to public hearing and began testimony on Senate Bill 6353, a major Working Connections Child Care bill that would keep income eligibility at 60% of state median income, lower the provider rate target from the 85th to the 75th percentile, and make other program changes; the briefing was underway when the transcript ended.

Transcript Highlights:

• Carriers may request a hearing from the OIC to consider a reduction in the required payment.
• Carriers may request a hearing from the OIC to consider a reduction in the required payment, but the
• OIC may only reduce the carrier's payment if they prove that it would render the carrier financially
• contracts where payment is contingent on the contractor.
• where payment is contingent on the contractor achieving performance outcomes.

Summary: The committee heard public testimony on House Bill 2073, which would require nonprofit health carriers with surplus above 600% of risk-based capital to pay 3% of the excess to support the Cascade Care Savings premium assistance program. Committee staff said the bill could generate about $80 million in FY 2027 based on 2024 surplus data, while carriers and business groups argued their reserves are needed to pay claims, manage risk, and avoid premium increases. Supporters said the bill would redirect consumer-funded surplus to help Washingtonians afford coverage, especially as federal subsidies expire. No action was taken on the bill during the hearing. The committee then heard House Bill 2132, which limits disclosure and retention of personally identifying and financial information in WASFA applications. Staff explained the bill would exempt WASFA records from public disclosure, restrict sharing to narrow purposes, and shorten retention periods, with significant fiscal impacts tied to purging records and updating data-sharing practices. Student and advocacy testimony strongly supported the bill as a privacy and safety measure for immigrant and mixed-status students. The committee also heard House Bill 2403, which lowers the penalty for failure to register as a sex offender and adds community custody and DOC supervision; public defense supported it as a cost-saving, consensus reform, and staff projected DOC savings. House Bill 2587 was also heard, creating a Commerce pilot to provide limited advance grant funding to eligible nonprofits; supporters said it would help smaller nonprofits manage reimbursement-based contracts, while staff estimated indeterminate but potentially significant administrative costs. The committee heard House Bill 2607, which would require DCYF to periodically rebase child care subsidy rate regions to better reflect local cost differences. Supporters from Benton and Franklin counties said current regional rates are outdated and unfairly low in fast-growing areas; staff said the fiscal impact was indeterminate. The committee then moved into possible executive session on several bills. Second Substitute House Bill 1170, dealing with generative AI disclosures and provenance tools, was amended and ultimately passed out of committee on an 18-9 vote after all proposed amendments were rejected. Substitute House Bill 1570 was amended to narrow its scope to Western Washington University and then passed out of committee on a 17-9 vote. The committee also began action on proposed Third Substitute House Bill 1710, which would create a state pre-clearance requirement under the Washington Voting Rights Act, but the transcript cuts off during consideration of amendments to that bill.

Transcript Highlights:

• The first chart on the left ranks states by the number of medical malpractice payments per 1,000,000
• There's a lump sum payment up front. Now let's say I don't live six years.
• It's just a sloppy solution to create a lump sum payment.
• If it's 40% of that $500,000, it's $200,000, with the remainder going in a lump sum payment.
• You assumed that it is best to not provide lump-sum payments for particular reasons.

Committee: House Courts, Corrections & Justice Committee

Transcript Highlights:

• So it's important that California be prepared to impose a 100% tax on payments that would be made from
• up for California's values and those of all Americans by saying that we would have a 100% tax on payments
• that the MCO tax revenues must be used to strengthen the Medi-Cal program by improving provider payments
• And I will rephrase the purpose to provide improvement in provider payments because we all know that
• And I will rephrase the purpose to provide improvement in provider payments because we all know that

Summary: The Senate Budget and Fiscal Review subcommittee heard four budget trailer bills: AB 110, AB 122, AB 125, and AB 177. AB 110 was described as a budget bill junior identifying budget-related legislation. AB 122 would extend sales tax to electronically delivered or remotely accessed prewritten software, extend and later limit business tax credits, reduce the annual LLC/LLP/LP tax for first-year businesses for three years, and impose a 100% tax on certain federal anti-weaponization fund settlements. AB 125 would renew the managed care organization (MCO) tax for three years beginning in 2027 to support Medi-Cal and targeted provider rate increases. AB 177 would require the Department of Finance to return by March 1, 2027 with options for assessing large employers for the Medi-Cal costs of employees enrolled in the program, including at least one employer-paid premium option for firms with 250 or more employees, and would appropriate $1,000 General Fund for implementation. Administration witnesses said AB 122 modernizes the tax system and helps create general fund revenue, while AB 125 is needed to preserve Medi-Cal financing and targeted rate increases under new federal constraints from H.R. 1 and to avoid a budget hole if the MCO tax expires. On AB 177, Finance said the bill is only a study and does not itself impose a tax, but would direct the administration to develop options for future consideration. Supportive members argued the package is part of a balanced approach to address the structural deficit, protect health care and other safety-net programs, and ensure large corporations pay more of their share. They also said AB 177 is a necessary step toward asking large employers to help cover public health care costs for workers who rely on Medi-Cal. Opponents, led by Vice Chair Niello and several other Republicans, argued the state does not have a revenue shortage but a spending problem, warning that the proposals would raise costs on consumers and businesses, discourage innovation, and expand taxes beyond their intended scope. They criticized AB 122 as potentially taxing labor-like services and limiting research and development credits, and said AB 125 would increase premiums for commercial enrollees and employers. On AB 177, they questioned the lack of definitions and specifics, saying the bill is too vague and could eventually burden employers, including hospitals and part-time workers, without clear standards. No votes were taken in the portion of the hearing provided; the committee heard testimony and questions before public comment and later action.