Transcript Highlights:

• , and that if they choose to permit these structures, they must follow standard fire code, DES rules,
• </c> structures. Thank you, Mr. Speaker. structures. Thank you, Mr. Speaker.
• ,</c> sort of innovative housing structure, sort of innovative housing structure, they<01:59:10.040><
• 01:35.680><c> DES</c><02:01:36.200><c> rules,</c><02:01:36.960><c> sewage</c><02:01:37.400><c> rules,
• </c><02:01:38.120><c> and</c> fire code, DES rules, sewage rules, and fire code, DES rules, sewage rules

Transcript Highlights:

• The next slide looks at the fee structure.
• In our discussions with the Youth Camp Advisory Committee, we are anticipating a rule change, a rule
• At the last meeting, we looked at some draft rules. and some ideas for rules coming up in the next rule
• So, you can craft any rules or legislation. Thank you for your testimony.
• I don't think that's the right rule to promulgate.

Committee: House Culture, Recreation & Tourism

Transcript Highlights:

• Ruling is not a priest or person to abuse is abuse and indoor or 5 years.
• It's an existing structure.
• It's an existing structure.
• A rule. >> For this year's request, a roll call of the question will be granted.
• The record will take the rule. No, but me Mueller now and with the eye sliced know.

Bills: HF3489 , HF3990 , HF3825 , HF3826 , HF3827 , HF3822

Committee: House Public Safety Finance and Policy

Transcript Highlights:

• And finally, it's vital that an industry's self-governance structure be adopted.
• A tourism assessment program by rule, subject to ratification by the covered tourism businesses.
• And when you say it’ll be established by rule, who’s the rule-setting authority? The WTMA.
• If they're in that industry sector and they meet the criteria established in the rule.
• I move that the bill receive a due pass recommendation and be sent to the Rules Committee.

Summary: The committee first heard Senate Bill 6137 on sports wagering. Staff explained that the bill would allow wagering on collegiate events involving Washington colleges, but would continue to prohibit bets on the performance of individual college athletes. Tribal representatives from the Jamestown S’Klallam, Puyallup, and Kalispel tribes testified in support, saying the bill would keep wagering within the regulated tribal marketplace, protect integrity, and help smaller tribal casinos participate through a hub-and-spoke model. University of Washington and Washington State University representatives supported the ban on individual prop bets and emphasized student-athlete safety, while WSU also argued the bill would expand exposure to harassment and online abuse. No vote was taken. The committee then heard Senate Bill 6079, which would create the Strengthen Washington Homes wildfire mitigation grant program. Staff said the bill would fund grants for wildfire-hardening homes to IBHS standards, authorize pilot projects, and prohibit insurers from using wildfire risk to disqualify homes that meet the standards. Insurance Commissioner Patty Kuder and Senator Marcus Riccelli supported the bill, arguing that wildfire losses and non-renewals are increasing and that upfront mitigation is cheaper than recovery. Local officials and advocates from Medical Lake, Washington Realtors, and climate and wildfire groups also supported the measure. Insurance industry representatives supported the mitigation goals but objected to the bill’s requirement that insurers provide coverage based on IBHS designation and to using the commissioner’s regulatory account as a funding source, saying underwriting still needs to consider broader risk factors. No action was taken. The committee next held a work session and public hearing on Senate Bill 6061, which would create a tourism self-supported assessment program. State of Washington Tourism, the Washington Wine Commission, the Washington Hospitality Association, the Brewers Guild, the Port of Seattle, and rural economic development representatives said the state’s tourism program is underfunded and that an industry-led assessment could provide a stable, competitive funding source. They said the model would be governed by a ratepayer oversight board, subject to ratification, and could generate significant visitor spending and tax revenue over time. Some testimony raised concerns about the scope of eligible businesses and the bill’s references to other industries, but supporters said friendly amendments would refine those details. The committee then heard Senate Bill 5844 on self-storage rental agreements, which would allow electronic agreements, clarify acceptance by continued occupancy, and create a uniform process for termination or nonrenewal for nonpayment or nonmonetary defaults. Self-storage operators supported the bill as a modernization measure that would improve safety and consistency, and no vote was taken on any of the bills heard.

Transcript Highlights:

• Changing the rules midstream also hurts.
• Last year, we implemented a rule to enact that law.
• We didn't enact that through rule.
• We didn't enact that through rule.
• So I'm going to talk a little bit about this support structure.

Transcript Highlights:

• So that could, of course, be suggested, but the idea was basic structures.
• There are some good structured reading programs.
• I know we have some good structured reading programs here in the state.
• So what we did was to make a special rule.
• The bill has passed subject to the rule. Favor say aye. Aye. Opposed, nay.

Bills: SB6192 , SB6206 , SB5346 , SB6125 , SB5841 , SB5907 , SB5951

Committee: Senate Early Learning & K-12 Education

Keywords: education, reading, mathematics, student intervention, instruction, academic standards, child care, first responders, incentives, pilot program, mobile phones, cell phones, smartphones, school phones, classroom distraction, digital citizenship, media literacy, internet safety, cyberbullying, student mental health

Transcript Highlights:

• Its long-term structural deficit has been addressed through debt in some years and temporary General
• We've had, over the last few years, nearly total turnover in our enforcement team management structure
• We've had nearly total turnover in our enforcement team management structure, and that's given us a lot
• Could you please explain how the Bureau, first off, how you've minimized the structural deficit?
• That's kind of a frustrating problem with the way that the fee structure is set up.

Transcript Highlights:

• The governing documents may include reasonable rules regarding the design, dimensions, placement, or
• From our perspective, that kind of rule can actually reduce choice and not expand it.”
• L&I must adopt and enforce rules that all factory-built housing are structurally sound and components
• L&I must adopt and enforce rules that all factory-built housing are structurally sound and components
• To lean in and try to do more as it comes to these factory-assembled structures.

Bills: SB6001 , SB6015 , SB6054 , SB5470 , SB5884 , SB6018 , SB6027 , SB6028

Committee: Senate Housing

Keywords: building code, scissor stairs, safety regulations, construction standards, statebuilding regulations, residential building, construction permits, housing development, planning efficiency, state regulations, wildfire, home hardening, fire-resistant materials, fire-hardened building materials, common interest communities, homeowners association, HOA, condominium, condo association, wildland urban interface

Transcript Highlights:

• And so some of our other goals was to be able to retrofit some existing structures and to improve the
• function and integration of the existing structures that, if you've been in the Lacey area, are more
• And then you have our state licensing rules.
• Seattle's right-of-way restoration rules.
• KPFF is the largest, oldest civil and structural engineering firm in the city of Seattle.

Summary: The committee held a work session on form-based codes, child care facility siting, and street standards/frontage improvements. On form-based codes, Commerce’s Dave Anderson explained that these codes emphasize building form, orientation, and the public realm more than traditional use and density tables, and that they are typically applied in specific districts rather than citywide or statewide. Lacey’s Vanessa Dolby described the city’s Woodland District code, developed through community charrettes, fiscal and market analysis, and subdistrict-specific standards to create a walkable downtown. She said the approach has helped produce a more desirable built environment and more flexibility in permitted uses, but also noted it can be less user-friendly for applicants and still requires some use restrictions; both presenters said a hybrid approach is often best. The committee then heard from DCYF and multiple providers about barriers to opening child care facilities. DCYF officials said Washington has more than 6,500 licensed providers and that a new pre-licensing support team is helping applicants navigate licensing, but local zoning, building, fire, parking, utility, and occupancy requirements still create delays and confusion. Testifiers described long permitting timelines, inconsistent local interpretations, costly upgrades, and utility hookup delays; one Yakima provider said county requirements, a floodplain-related elevation certificate, and a private well issue stopped her in-home child care proposal, while others described traffic impact fees, parking mandates, and zoning barriers that made projects infeasible. Enterprise Community Partners highlighted examples of successful local reforms, including fee waivers, expedited permitting, and zoning changes in several cities, and DCYF said it is working toward a 2026 action plan and a resource guide for providers. In the final section, planners and developers discussed how street standards and frontage improvement requirements can undermine infill and middle housing. Poulsbo’s planning manager said current standards were designed for greenfield subdivisions and often force costly curb, gutter, sidewalk, stormwater, and utility upgrades on small infill sites, sometimes adding tens of thousands of dollars and causing projects to be abandoned. A Seattle-based developer made similar points about small middle-housing projects being burdened by frontage work, curb ramps, buried standards, and EV-ready parking requirements that can trigger expensive undergrounding. Committee members asked about possible state-level changes, including whether child care should be treated as an essential public facility and whether parking requirements had already been reduced; one senator noted that minimum parking requirements for child care facilities were eliminated in prior legislation, with implementation phased in over the next few years.

Transcript Highlights:

• From our perspective, that kind of rule can actually reduce choice and not expand it.
• From our perspective, that kind of rule can actually reduce choice and not expand it.
• L&I must adopt and enforce rules that all factory-built housing are structurally sound and components
• L&I must adopt and enforce rules that all factory-built housing are structurally sound and components
• To lean in and try to do more as it comes to these factory-assembled structures.

Summary: The committee heard public testimony on several housing-related bills. On SB 6054, Senator Hunt’s bill to prohibit common-interest community rules from blocking wildfire home-hardening materials, staff explained that HOA and condominium governing documents could still impose reasonable aesthetic rules, but not ones that make fire-resistant materials infeasible or more than 10% costlier. The sponsor described the bill as a response to HOA requirements for less fire-resistant roofs. Testifiers generally supported the goal but objected to the 10% cost cap, saying it could limit community-specific design choices and create unintended conflicts with aesthetic standards. The committee also heard SB 601 on scissor stairs in the building code. The sponsor and supporters from Futurewise, architects, and housing advocates said scissor stairs could make mid-rise and high-rise housing more efficient, reduce corridor space, and improve unit layouts without sacrificing life safety. They noted the design is used in places like Vancouver, B.C. and in some Washington venues, and argued the bill would help lower costs and increase housing supply. No opposition was presented during the hearing. For SB 6015 on permit-ready residential plans, staff said L&I would create a process for publishing approved plans for factory-built housing and certain small residential types, with local governments required to approve applications using those plans on qualifying lots starting in 2027. Supporters from builders, architects, Habitat for Humanity, and Sightline said statewide standard plans could reduce duplication, speed permitting, and help scale factory-built and potentially site-built housing. Counties and L&I were supportive in concept but raised concerns about mandating local adoption of model ordinances and about whether the bill should include site-built plans as well. The committee also heard SB 5470 on detached ADUs outside urban growth areas, with supporters saying it would help rural homeowners and intergenerational living, while Futurewise opposed the bill as written and sought tighter density, lot-size, and metering limits. Finally, the committee heard SB 5729, a permit-streamlining bill that would deem completeness for applications prepared by licensed professionals and limit local governments to three review cycles. Builders and business groups supported it as a way to reduce delays and costs, while counties, cities, and Futurewise argued it could lead to more denials, less communication, and unintended liability concerns. In executive session, the committee adopted the proposed substitute for SB 5884 and moved it forward with a do-pass recommendation to Ways and Means.

Transcript Highlights:

• of those rules, which are available for you in your bill report.
• We have recently reopened the rule specifically to look at that fee structure so we can figure out if
• We have recently reopened the rule specifically to look at that fee structure so we can figure out if
• I'd like to consider alternative fee structures.
• The fee structure they put up, there's a cap for larger processors at $9,000.

Summary: The committee heard public testimony on Senate Bill 5816, which would add juice grapes to Washington’s Agricultural Marketing and Fair Practices Act. Staff explained that the bill would allow juice grape producers to form an accredited association to negotiate with processors under the same timelines used for pears, and the prime sponsor said the measure was intended to help growers obtain fairer prices. A grape grower testified that Washington producers face a small number of buyers, little real negotiation, and prices far below New York’s, arguing the bill would give growers a way to bargain collectively. The public hearing closed with 47 people noted in support and one in opposition. The committee then heard Senate Bill 5971, which would create a green fertilizer incentive program for low-carbon nitrogen fertilizer production and use in Washington. Staff described the bill as directing WSDA to establish the program, adopt rules by 2028, and report to the Legislature, with costs shown in the fiscal note. The prime sponsor and several supporters, including Atlas Agro, a port representative, labor, NRDC, WSDA, the League of Women Voters, and the Washington State Potato Commission, said the bill could reduce greenhouse gas emissions, support local manufacturing and jobs, stabilize fertilizer supply and prices for farmers, and help Washington compete for federal clean hydrogen tax credits. WSDA said the program was implementable with consultation and that the Climate Commitment Act could be a funding source, though it noted rulemaking costs. The committee then held a work session on commercial shellfish fee assessments after the Department of Health adopted major fee increases for shellfish licensing and certification. Shellfish growers and association representatives said the increases—described as ranging from roughly 233% to 789% overall, with some individual licenses rising much more—would hit small and family farms hardest, could force closures, and were based on a fee structure they said is outdated and not tied well to production. DOH explained that the program has long relied on general fund support, that federal shellfish safety requirements must be maintained, and that the new fees are intended to move the program toward full cost recovery after years without increases. The department said it had used a phased approach, reopened rulemaking to look for a fairer structure, and would continue working with industry and the Legislature; no vote was taken during the work session.

Transcript Highlights:

• rules are for PACs, candidates know what the rules are for candidates.
• rules that we have for campaign finance.
• This bill's primary effect is a structural power shift.
• This structure reflects national best practice.
• This structure reflects national best practice.

Committee: Senate State Affairs

Transcript Highlights:

• DUNAs are emerging rapidly as a preferred structure for many online communities and Web3 initiatives.
• for these organizations to register and operate in Texas, incorporating safeguards and a strong structure
• House Bill 4518 allows Texas to do the same while adding thoughtful oversight and structure.
• These professionals aim to utilize U.S. options for domestic structuring and avoid alternatives such
• and paying taxes. and doing a lot of the things in conjunction with entity structure.

Bills: HB2226 , HB2269 , HB2343 , HB2760 , HB3621 , HB4079 , HB4204 , HB4518 , HB4531 , HB4555 , HB4850 , HB4876 , HB4903 , HB4996 , HB5122

Committee: House Trade, Workforce & Economic Development

Keywords: construction trust funds, Property Code, Chapter 162, construction payments, mechanics lien, contractors, subcontractors, laborers, material suppliers, materialmen, real property improvement, assignment of payment rights, unpaid trust funds, trust fund beneficiaries, construction industry, payment protection, Texas construction law, property owners association, landscaping, grass maintenance

Transcript Highlights:

• was just for transparency on this committee that didn't make the 24-hour rule.
• So the structure of that is two years, Mr.
• And those are established by rule by the Mortgage Finance Authority, Housing New Mexico.
• and see what's wrong with the structure, but you don't know what's going on below the structure.
• You don't know what's going on below the structure. You don't know.

Summary: The committee first heard House Bill 296, which would double New Mexico’s working families tax credit. The sponsor said the bill would increase work incentives, reduce poverty, and could provide families up to about $1,900 more per year, with benefits concentrated among families with children and lower earners. Public testimony from advocacy groups and faith organizations supported the bill. Members asked about foster family eligibility, age eligibility, refundability, and how the credit compared with a prior vetoed proposal. After discussion, a member moved to table the bill, and HB 296 was tabled. The committee then took up the committee substitute for House Bill 77, a tax credit for rehabilitating vacant or blighted buildings into affordable multifamily housing, with at least half of the credit reserved for rural New Mexico. Supporters from housing, business, construction, local government, and advocacy groups said it would expand housing supply, revitalize downtowns and vacant properties, and help rural communities. Members questioned the certification and recertification process, affordability requirements, and the role of the Mortgage Finance Authority. The sponsor asked to roll the bill to Friday so an amendment could be considered, and the committee agreed to roll HB 77 rather than vote on it. House Bill 275, authorizing revenue bonds for Hila Regional Medical Center to replace an aging linear accelerator used for radiation cancer treatment, was heard next. The sponsor and supporters said the equipment is essential for cancer care in southwest New Mexico and that patients would otherwise have to travel long distances for treatment. An amendment extending the bond term from 20 to 30 years was adopted after the New Mexico Finance Authority explained declining tobacco-tax revenues and the need to protect against default risk. The committee then gave HB 275, as amended, a do pass recommendation. Finally, the committee heard House Bill 285, as amended, which clarifies and streamlines the disabled veteran property tax exemption. The sponsor said the bill limits the exemption to a primary residence, clarifies how it applies to multiple owners, and gives veterans more time and clearer procedures to claim or protest the exemption while they await VA certification. County assessors and realtor representatives supported the measure, saying it would reduce administrative confusion and ensure eligible veterans receive the benefit consistently. The committee adopted the bill on a do pass motion. The meeting then adjourned with notice that work would continue on Friday.

Transcript Highlights:

• So it all depends on how they structure their transactions with their consumers and the products they
• CFPB, in withdrawing that rule, noted it won't enforce any violations of the rule against lenders.
• I think they tend to take a different structure. So...
• I think they tend to take a different structure.
• Their structure: payments on the short-term side are sometimes six to eight weeks.

Committee: House Consumer Protection & Business

Transcript Highlights:

• The rule is suspended.
• One nay, the rule is suspended.
• The rule is suspended.
• Senator Zaffirini moves suspension of the three-day rule. 28 ayes, 3 nays. The rule is suspended.
• Rules are suspended.

Bills: HB135 , HCR64 , SCR3 , SCR30 , SB500 , SB739 , SB816 , SB898 , SB1283 , SB1351 , SB1423 , SB1531 , SB1540 , SB1666 , SB1721 , SB1886 , SB1931 , SB2001 , SB2075 , SB2154 , SB2173 , SB2217 , SB2284 , SB2375 , SB2383 , SB2386 , SB2398 , SB2448 , SB2476 , SB2540 , SB2580 , SB2589 , SB2693 , SB2707 , SB2776 , SB2786 , SB2801 , SB2864 , SB2927 , SJR84 , SCR30 , SB243 , SB324 , SB393 , SB457 , SB511 , SB529 , SB547 , SB636 , SB646 , SB659 , SB715 , SB731 , SB735 , SB800 , SB801 , SB904 , SB1065 , SB1141 , SB1181 , SB1224 , SB1241 , SB1242 , SB1250 , SB1266 , SB1285 , SB1359 , SB1434 , SB1442 , SB1467 , SB1502 , SB1524 , SB1528 , SB1551 , SB1585 , SB1640 , SB1754 , SB1757 , SB1777 , SB1844 , SB1863 , SB1972 , SB2007 , SB2035 , SB2046 , SB2055 , SB2069 , SB2082 , SB2119 , SB2139 , SB2154 , SB2200 , SB2201 , SB2269 , SB2310 , SB2330 , SB2357 , SB2366 , SB2401 , SB2422 , SB2514 , SB2530 , SB2533 , SB2543 , SB2544 , SB2550 , SB2568 , SB2589 , SB2660 , SB2693 , SB2695 , SB2707 , SB2717 , SB2721 , SB2742 , SB2753 , SB2807 , SB2846 , SB2891 , SB2925 , SB2938 , SJR3 , SJR18 , SB5 , SB326 , SB767 , SB769 , SB783 , SB914 , SB963 , SB1035 , SB1197 , SB1271 , SB1415 , SB1437 , SB1619 , SB1637 , SB1786 , SB1806 , SB494 , SB530 , SB2312 , SB1 , SB260 , HB135 , HB 1109 , HB1392 , HB22 , HCR64 , SJR36 , SJR50 , SJR63 , SJR84 , SJR59 , SCR12 , SCR39 , SCR48 , SCR19 , SCR30 , SCR3 , SB2023 , SB62 , SB666 , SB847 , SB284 , SB854 , SB1073 , SB810 , SB1505 , SB583 , SB1502 , SB507 , SB1434 , SB1376 , SB1585 , SB1772 , SB2016 , SB1163 , SB1122 , SB731 , SB397 , SB508 , SB1436 , SB287 , SB261 , SB1882 , SB393 , SB1791 , SB209 , SB2429 , SB1999 , SB511 , SB2309 , SB510 , SB1085 , SB1975 , SB2717 , SB1262 , SB1524 , SB636 , SB2056 , SB884 , SB517 , SB1200 , SB1845 , SB1863 , SB2681 , SB2200 , SB2199 , SB1757 , SB2458 , SB2201 , SB801 , SB2533 , SB3014 , SB3013 , SB758 , SB1721 , SB1013 , SB2797 , SB2383 , SB2119 , SB2448 , SB1777 , SB1283 , SB2076 , SB2786 , SB2876 , SB2284 , SB1540 , SB2929 , SB2540 , SB2595 , SB2217 , SB715 , SB500 , SB1640 , SB2001 , SB2514 , SB2753 , SB2398 , SB1241 , SB2927 , SB2173 , SB2538 , SB898 , SB1449 , SB2529 , SB2846 , SB2476 , SB986 , SB1181 , SB2075 , SB2154 , SB2864 , SB1359 , SB2386 , SB2550 , SB1351 , SB1423 , SB1931 , SB2245 , SB2589 , SB2707 , SB410 , SB2776 , SB2580 , SB1886 , SB1234 , SB739 , SB456 , SB1666 , SB2801 , SB2055 , SB1012 , SB2926 , SB2138 , SB1242 , SB2615 , SB2310 , SB1224 , SB2972 , SB2841 , SB3016 , SB2139 , SB1856 , SB2035 , SB1528 , SB1141 , SB2401 , SB2530 , SB2375 , SB547 , SB1266 , SB1373 , SB1467 , SB2069 , SB2269 , SB2480 , SB672 , SB904 , SB2695 , SB2891 , SB2422 , SB2543 , SB1854 , SB317 , SB2539 , SB2532 , SB2925 , SB1250 , SB2082 , SB2203 , SB457 , SB2357 , SB2721 , SB243 , SB1285 , SB2568 , SB1959 , SB1442 , SB1454 , SB2520 , SB2541 , SB1708 , SB1237 , SB1844 , SB1586 , SB1551 , SB3039 , SB2819 , SB66 , SB629 , SB1015 , SB2342 , SB2903 , SB2933 , SB1965 , SB2477 , SB3029 , SB2605 , SB2419 , SB1957 , SB375 , SB250 , SB777 , SB628 , SB2523 , SB2367 , SB2703 , SB2608 , SB2778 , SB3044 , SB2965 , SB2521 , SB865 , HB2525 , HB3093 , SB1032 , SB2165 , SB2501 , SB2675 , SB2452 , SB2835

Transcript Highlights:

• Structure hardening, did you say? Yes, structure hardening, home hardening, but not just home.
• All structures in the state. responsibility area according to PRC 4291 and then all structures in very
• , igniting the structures themselves, or as referenced earlier, fires inside of the structure.
• Absent embers, structure to structure fire spread from flames and radiant heat stops at the end of the
• , zone zero rules, inspection rules, you qualify for all of these grants.

Transcript Highlights:

• I moved that the five-day notice rule be suspended.
• Dear committee, this will create a simple enforcement rule.
• It's a simple enforcement rule.
• The one-day minimum attendance rule will no longer be in effect.
• It is a structural protection that helps stabilize the workforce.

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:

• So that April 8th ruling that went out, that's the purpose of the ruling: to get those data points to
• And that ruling was issued in our demand response proceeding on April 8th.
• This is the ruling that came out on April 8th.
• And when does the CPUC anticipate finalizing program rules for the successor program?
• “Is ERPA in a structural deficit?” “I can say that one.

Summary: The committee first heard Issue 1 on trailer bill language to redirect funding for emergency demand-response programs. The Department of Finance proposed using about $26.9 million in General Fund originally set aside for the Distributed Energy Backup Assets program to bolster the Demand-Side Grid Support Program for summer 2026, and using about $70 million in CalCHAP interest to support ratepayer-funded demand response in summers 2027 and 2028. The CEC and CPUC said they are working on a transition from DSGS to ELRP or a successor program, while the LAO noted the General Fund money would otherwise revert to savings. Members pressed the administration on whether demand response remains important, whether DSGS has been successful, and whether the state should keep funding it through the CEC rather than shifting to a ratepayer-funded CPUC program. The CEC and CPUC said the programs are not directly comparable, emphasized different cost structures and enrollment metrics, and said a CPUC rulemaking is underway with a proposed decision expected in Q3 2026. No vote was taken in the transcript. The committee then took up Issue 2, a budget proposal tied to SB 254 and the new transmission accelerator. GoBiz and the California Infrastructure and Economic Development Bank described a five-year, roughly $26 million request to staff and administer the accelerator and manage Proposition 4 and AB 1207 funds for transmission financing. Members asked about state liability, ownership of financed lines, FERC revenue requirements, and whether the program would help underserved regions and offshore wind development. Staff explained that the accelerator would only consider projects already identified through CAISO’s competitive transmission planning process, and that state financing would be a small portion of large projects intended to lower overall costs to ratepayers. The LAO said it had no specific concerns but urged the Legislature to ensure the final language matches its intent. The committee also heard Issue 3 on petroleum market oversight. The CEC and its Division of Petroleum Market Oversight requested additional positions and funding to implement ABX2-1 and continue work on supply stabilization, refinery monitoring, and transportation fuels analysis. Members questioned why the work was funded through the Energy Resources Programs Account, whether existing staff from the paused price-gouging work could be reassigned, and whether the program had produced evidence of price gouging or improved supply conditions. CEC and Finance said the new positions are needed because the workload has expanded, while some existing staff remain on related analysis and reporting duties. The discussion ended without a vote in the transcript.

Transcript Highlights:

• Some of the adobe structures and building a new entranceway.
• Because they are subject to very complicated federal tax rules.
• So, there are rules applying to disclosure.
• So that process is, you know, the structure. Structuring is part of it.
• Those are the rules that we need to make some minor amendments to our PPRF rules, and you all are the

Committee: House New Mexico Finance Authority Oversight Committee