Transcript Highlights:

• A lot of these loopholes directly impact my area because of our growth.
• I'm just saying because there's loopholes, it really impacts my area.
• So very rural. We're very, very sensitive to this topic as well.
• So very rural. We're very, very sensitive to this topic as well. or fewer. So very rural.
• And if you could get any information on that impact, I'd appreciate it. Spreading the cost around.

Committee: House Special Committee on Property Tax Reform

Keywords: 959, house, all

Transcript Highlights:

• Again, those things are impacting the agency substantially.
• make sure that if you're a victim of a crime and you're not in downtown Albuquerque, you're out in rural
• the C2, we can start rolling this out on a regional model and bring some of those capabilities to rural
• So I'm voting for things that I think are going to impact all regions and rural New Mexico, and it's
• So, I'm just trying to clarify when dollars will reach rural New Mexico. Thank you. Great.

Keywords: 996, all

Transcript Highlights:

• I'm speaking about this pivotal vote today because I want to be clear about the devastating impacts that
• So make no mistake, there is no other way to meet this mandate but then to impact Medicaid.
• Now as you may know, New Mexico is a largely rural state. We're not the only one.
• Will you commit to not closing any field offices in rural and frontier?
• banks and I know what it means to have to serve neighborhoods and also serve rural communities.

Committee: Senate Finance Committee

Keywords: Social Security, Medicaid, Frank Bisignano, Elon Musk, benefit processing, office closures, public testimony, administration policies, health care, vulnerable populations

Summary: The committee meeting focused heavily on the nomination of Frank Bisignano as the Commissioner of the Social Security Administration, with intense discussions around the current state of Social Security and its management under the current administration. Members voiced significant concerns regarding potential changes to Social Security and Medicaid, specifically addressing issues such as office closures, delays in benefit processing, and the perceived policies from Elon Musk's association with the administration. Public testimonies highlighted fears that these changes would severely impact the accessibility of benefits for seniors and vulnerable individuals, resulting in a chaotic environment at the SSA. Members expressed a unified opposition to the notion of dismantling these critical programs, emphasizing the long-term implications on their constituents' well-being.

Transcript Highlights:

• Is there a fiscal impact? So have they previously been doing this, or is this new?
• private funds to help fund this um this is the save the children's fund it's a big benefit in our rural
• Farming is the backbone of our rural communities and the driving force for the state of Arkansas, to
• So we've had at least four physicians want to come in practice in Arkansas, willing to practice in rural
• So we've had at least four physicians want to come in practice in Arkansas, willing to practice in rural

Committee: All JBC-SPECIAL LANGUAGE

Summary: The committee resumed consideration of several amendments to fiscal bills. It adopted Senator Johnson’s amendment to Senate Bill 15, which shifts responsibility for Keep Arkansas Beautiful-related functions and roadside litter cleanup coordination toward ARDOT, with the current commissioners becoming an advisory council. The committee also adopted Representative Perry’s amendment to Senate Bill 7, lowering from 50 to 25 the employee threshold for employers to request claims data from insurers for group health coverage, aimed at helping smaller businesses and municipalities obtain more competitive insurance quotes. Representative McKinsey’s amendment to Senate Bill 41, which would have blocked a University of Arkansas at Fayetteville athletic funding transfer and imposed a one-year rider, was rejected after questions about the university’s finances and whether such a transfer had ever occurred. Senator Hester’s amendment to House Bill 1051, intended to cap online sports betting free play at 5% of gross receipts, also failed after debate over whether the proposal was properly fiscal language and whether the free-play incentives constituted a subsidy. Representative Walker’s amendment to a Save the Children appropriation, which would have converted the funding into a matching grant to encourage private donations, failed for lack of a motion. Representative Vaught’s amendment related to an agricultural tax exemption for certain tractor parts and diesel exhaust fluid systems likewise failed, with concerns raised about drafting, enforcement, and whether it belonged in revenue tax committees. The committee then added two late items: Representative Johnson’s technical correction to a physician licensure pathway bill, which was adopted to broaden qualifying underserved-area definitions, and Senator Tucker’s amendment to Senate Bill 77, which deleted a fund-transfer section and created a matching appropriation mechanism to help Arkansas TV/PBS retain affiliation and pay dues. Senate Bill 77 passed as amended, and the meeting adjourned.

Transcript Highlights:

• I moved to strike the title due to fiscal impact. That is a proper motion.
• It's not just confined to rural communities to urban communities like mine.
• I understand that urban conditions and rural conditions are very different, but we probably need public
• And yes, the makeup of the board has membership from rural communities and the larger communities.
• Yes, all the amendment does is Is strike out all of the things that has a fiscal impact on this bill.

Bills: HB4420 , HB3974 , HB3016 , HB3062 , HB3021 , HB3145 , HB4128 , HB3131 , HB3015 , HB3472 , HB3453 , HB1638 , HB4126 , HB2696 , HB2710 , HB3552 , HB3031 , HB3544 , HB3521 , HB4490 , HB4488 , HB1746 , HJR1069 , HB4428 , HB4429 , HB1170 , HB3538 , HB4124 , HB3904 , HB4106 , HB2999 , HB3982 , HJR1077 , HB3464 , HB2588 , HB3462 , HB4440 , HB3674 , HB3345 , HJR1067 , HB4326 , HB4331 , HB4337 , HB4338 , HB4359 , HB4392 , HB3557 , HJR1076 , HB4003 , HB3495 , HB3497 , HB3501 , HB3505 , HB3749 , HB3011 , HB4336 , HB4346 , HJR1087 , HB3240 , HB3647 , HB3796 , HB3969 , HB3972 , HB3983 , HB3984 , HB3989 , HB3383 , HB3130 , HB4358 , HB3327 , HJR1055 , HB3386 , HJR1089 , HB3087 , HB2970 , HB3314 , HB4129 , HB4199

Keywords: reading, intervention, literacy, education, third grade retention, teacher training, funding, Strong Readers Act, tort claims, inmate housing, government immunity, public trust, private prison, emergency legislation, vision screening, binocular vision, kindergarten, elementary education, health, firearm rights

Transcript Highlights:

• We can deal with the budget impacts. We can save thousands of jobs.
• We can deal with the budget impacts. We can save thousands of jobs.
• Rural communities... Rural communities are being attacked by this budget, Mr. Speaker.
• Rural communities like mine. We're seeing cuts to child care supports.
• We're hearing the human stories and the lives that are impacted by these decisions.

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, juice grapes, agriculture, commerce, state regulation, market access, fire safety, insurance incentives, best practices, community protection, voluntary measures, mortgage modification

Transcript Highlights:

• House Bill 626, by the Local Government Committee, relating to impact fees.
• We have many small rural school districts who have a hard time finding people for these principal and
• And with that, I would appreciate your green light and help rural schools. Thank you.
• And with that, I would appreciate your green light and help rural schools. Thank you.
• Do you see this as one of the aspects of your legislation that could be impacted? Thank you.

Summary: The House convened with 64 members present, approved the previous journal, and received several communications, including substitute appointments and messages from the Governor and Senate. Committee reports moved a number of bills forward, and the House also received and referred several newly introduced bills covering manufactured homes, land use, execution procedures, highway districts, dental hygiene, physician assistants, Medicaid, immunization and medical mandates, child welfare terminology, and elections. The House also advanced engrossed bills and placed others on second or third reading calendars. On third reading, the House passed House Bill 711, which creates an alternative authorization pathway for school principals and superintendents with mentoring requirements, and House Bill 658, which lets counties appoint cemetery district board members when all vacancies occur and requires county maintenance until a board is seated. It also passed House Bill 661 on county waste disposal contracting, House Bill 715 on city library director hiring and termination with city council approval, House Bill 662 on dairy testing and payment rules, House Bill 687 restricting state AI contracts from incorporating DEI principles, House Bill 665 revising an Appaloosa horse specialty plate program, House Bill 666 requiring new Idaho residents to obtain a license and vehicle registration within 30 days, House Bill 712 creating a voluntary state seal of excellence in civics, House Bill 762 giving charter schools priority options for foster children and military families in lotteries, House Bill 777 updating the Uniform Controlled Substances Act, and House Bill 688 making knowing installation or sale of counterfeit airbags a misdemeanor. Most of these bills passed with clear majorities, though HB 715, HB 687, HB 666, HB 762, and HB 688 drew notable opposition. Debate centered on school administrator qualifications, local control over libraries and cemeteries, AI procurement standards, military family access to charter schools, and the scope of the counterfeit airbag bill. Members raised concerns about whether alternative administrator pathways could weaken preparation standards, whether the AI bill could affect procurement or proprietary systems, and whether the airbag bill might unintentionally criminalize sales of used vehicles with nonfunctioning airbags; supporters framed each measure as a targeted response to practical problems. One member declared a Rule 80 conflict on the airbag bill because a family member works in the field. The House also adopted a motion to hold remaining third-reading bills for one legislative day, enrolled HCR 28, referred HCR 31 for printing, and adjourned until 10:30 a.m. the next day.

Transcript Highlights:

• They talk about rural areas. That's important to our president.
• But rural areas are going to be sucked up in this.
• I've talked to some folks in rural communities.
• Someone who represents 12 of my counties are rural.
• The largest concern that my rural... These are personal.

Summary: The Senate convened with prayer, the Pledge of Allegiance, and several recognitions before taking up a special order calendar of bills. Early measures included a claims bill for relief to L.E. through the Department of Children and Families, which passed 34-0 after substitution from the House version, and a claims bill for the estate of Mark Legata, which passed 35-0 after the amount was reduced in the substitute. The chamber then approved CS for CS for SB 42 on child protective investigations and specific medical diagnoses, requiring investigators to consider certain medical conditions that can mimic abuse; the sponsor described it as a fix for cases where medical evidence is overlooked, and it passed 34-0. A bill on autism education for teachers was also substituted with the House version, amended to replace the Senate language, and passed 35-0 after supportive remarks from members. The Senate next passed a land-use bill, SB 218, adjusting hurricane-related development restrictions so they continue in storm-damaged counties but expire in unaffected counties in 2026, with debate focused on local control and recovery needs; it passed 36-0. The chamber then approved several other measures with little or no opposition: a probate bill modernizing curators of estates (36-0), a Blue Ribbon Projects bill creating a framework for large planned developments with conservation set-asides, which drew extensive debate over local control, growth management, and the bill’s breadth before being temporarily postponed, a state lotteries update (36-0), a diploma requirements bill allowing Special Olympics participation to substitute for PE and clarifying marching band credit (36-0), and a naturopathic medicine licensure/regulation bill that reestablishes a licensing framework and board, which passed 33-3. The Justice Administrative Commission bill was amended to broaden membership to include a judge or senior judge and passed 37-0. The Senate also passed a public records exemption for certain local administrators and their families (31-5), a clinical laboratory personnel bill easing staffing requirements by aligning more closely with federal CLIA standards (37-0), a dry needling bill clarifying occupational therapists may perform the practice (37-0), a financial disclosures bill revising gift/honoraria reporting and restoring a percentage-based reporting option via amendment (36-0), and a child welfare bill expanding when parental drug abuse can be treated as harm or neglect and allowing earlier court intervention and services (37-0). Later, the chamber took up a bill on ideologies inconsistent with American principles and terrorist organizations. The sponsor said it would prevent enforcement of foreign or religious law over the Constitution, create a due-process process for domestic terrorist designations, and bar public funds from supporting terrorism. Senators raised questions about the lack of a time limit on conduct used for designation and whether conviction is required; an amendment was then offered to remove specific references to Sharia law and the bill’s findings, with the sponsor of the amendment arguing the language stigmatized Muslim constituents and singled out Islam. The transcript cuts off during that amendment debate, so no final action on the bill is shown in the provided text.

Transcript Highlights:

• Um, but knowing the fiscal impacts of what that would mean providing that across the entire county and
• Um, we're also a very rural county, uh, with our regional hub in Duluth, and we see across the board
• </c> and paying attention to our rural and paying attention to our rural communities<00:03:16.000><c>
• </c> costs and reduce a property tax impact costs and reduce a property tax impact on<00:21:27.320><c
• The two-year fund impact for fiscal years 2026 and 2027 this year is, excuse me, $860,000.

Committee: Senate Taxes

Keywords: 1187, senate, all

Transcript Highlights:

• We've got the rural health transformation money coming.
• about this before it goes to the floor, but to really put an emphasis on availing ourselves of the rural
• health money to really put an emphasis on availing ourselves of the rural health money to put a health
• Yeah, I'd appreciate it because especially the rural areas, and it's a huge opportunity to give employment
• Because this bill is so crucial, it addresses the question: What is the quantifiable impact of early

Committee: Senate Education

Keywords: 974, senate, all

Transcript Highlights:

• Another topic is the environmental impact of the energy facility and its byproducts.
• We talked about health risks to people, but talk to me about the environmental impacts we might see if
• and investor-owned, meaning they run it for profit as opposed to a municipal electric company or a rural
• electric</c><00:06:32.440><c> company</c><00:06:32.759><c> or</c><00:06:32.880><c> a</c><00:06:33.000><c> Rural
• </c> municipal electric company or a Rural municipal electric company or a Rural Electric<00:06:33.759

Keywords: 1187, senate, all

Transcript Highlights:

• It will impact every city differently.
• And the impact of state and federal new legislation and mandates also has an impact on our budget as
• Our rural areas are becoming more suburban, and our rural communities, and then our really truly rural
• Have those increases not impacted you as significantly as they impact the average citizen?
• So we are impacted. But then we do also have outside private insurance, and so we are impacted. Ms.

Summary: The Select Committee on Property Taxes heard first from city representatives through the Florida League of Cities, who argued that property taxes are a stable local revenue source that funds core services such as police, fire, parks, public works, and stormwater work. Casey Cook emphasized that cities are optional governments with widely different tax bases and service levels, that exemptions shift the burden to fewer taxpayers, and that transparency already exists through TRIM notices, public budgets, and local hearings. Sarah Campbell of Fernandina Beach, T. Michael Stavris of Winter Haven, and Stephen O’Kee of Port St. Lucie described their budget processes, the share of general-fund revenue coming from property taxes, reserve policies, debt and capital planning, and the impact of inflation, minimum wage increases, and personnel costs. They all said local governments need predictable revenue and that any property tax changes would require careful consideration of replacement funding or service reductions. Members questioned the city panel about whether homebuyers are clearly informed about city versus county taxes and services, the role of HOAs, how many lobbyists cities employ, reserve levels, average salaries, and whether utility revenues are used only for utility purposes. The panel said TRIM notices, realtor listings, and city websites provide tax information; HOAs generally do not provide emergency services; lobbyists help local governments track Tallahassee legislation; reserves vary by city and fund; and utility revenues are generally restricted, though some cities use limited transfers. Members also asked about revenue replacement if ad valorem taxes were reduced or eliminated, and the panel said options would likely include user fees, service cuts, or other local revenue shifts. The chair also asked about public safety consolidation, and the response was that such decisions are local and may shift costs rather than create true savings. The committee then heard from county representatives after an overview by the Florida Association of Counties’ Davin Suggs, who framed counties as shared partners with the state and emphasized the gap between rising market values and the shrinking share of taxable value after exemptions and assessment limits. He said counties face a mismatch between revenue based on taxable value and expenses driven by real-world costs, and noted that most counties either held millage steady or lowered it without reaching rollback rates. He also highlighted that property taxes are only one part of county revenue, with charges for services and intergovernmental revenue often larger in some counties, and that public safety at the county level includes more than law enforcement, such as EMS, emergency management, inspections, and corrections. Deborah Manzo of Okeechobee County described a fiscally constrained rural county with limited staff, a county-supported airport, heavy reliance on property taxes for the general fund, and major cost pressures from inflation, insurance, retirement, and state and federal mandates. She said the county lowered millage slightly over recent years but still depends on multiple revenue sources and special assessments, and she flagged Medicaid, medical examiner costs, and possible firefighter workweek changes as significant concerns. Bay County Administrator Mark McQueen said his county’s budget is shaped by Hurricane Michael recovery, non-discretionary obligations, and rapid growth; he described ongoing FEMA reimbursement delays, substantial borrowing to cover disaster costs, and continuing interest expenses while the county waits for reimbursement. The county panel was still in progress when the transcript ended.

Transcript Highlights:

• A fiscal note is available and shows no fiscal impact. That concludes my remarks.
• Some of our rural districts have seen... ...to advertise fully and open bids.
• So do we know how many students would be impacted by this?”
• We are concerned about the fiscal impact of the levy-equalization.
• I represent the Rural Education Center. It's a cooperative of over 110 small and rural districts.

Summary: The committee began by waiving the five-day notice rule for Senate Bill 6320, then heard Senate Bill 6222, which would let school districts and educational service districts sell or grant surplus technology hardware such as laptops and tablets to public school students and recent graduates, with priority for low-income students. The sponsor and supporters said the bill would help students keep access to devices they need for homework, college, and work, while preserving existing surplus procedures. Testimony was generally supportive, including from district technology staff and students, though one question raised whether tribal compact schools would be included. The committee then heard Senate Bill 6263, which raises school district public bid thresholds to reflect inflation and reduce procurement costs. The sponsor said the limits had not been updated in about 20 years and should be aligned with other local governments. Supporters from school employees, finance officers, and school coalitions said the change would save time and money and reduce delays in maintenance and purchasing. Testimony on Senate Bill 6261, which would require parents of six- and seven-year-olds not enrolled in school to file annual declarations of intent about their child’s education, was overwhelmingly opposed by homeschool families and advocates. Opponents argued it would add bureaucracy, create privacy concerns, and burden families, while the superintendent of public instruction supported the bill as a way to improve enrollment data and planning. The sponsor said it was about knowing where children are and right-sizing school systems. The committee also heard Senate Bill 6118, requiring cardiac emergency response plans in schools and athletic facilities. The sponsor, who spoke about losing her brother to heart failure, said schools need faster, better-prepared responses to cardiac emergencies. Supporters, including parents, students, and community advocates, described personal experiences with sudden cardiac events and said the bill could save lives by ensuring AEDs, CPR training, and practiced response plans. Finally, the committee heard Senate Bill 6320 on alternative learning experiences. The bill would restrict online and remote ALE providers to public or nonprofit entities and reduce levy equalization funding for remote/online ALE, with limited exceptions for medically fragile or severely bullied students. Supporters argued it would keep public education public and encourage in-person learning, while opponents—including superintendents, online program operators, students, and homeschool advocates—warned it would displace thousands of students, harm successful programs, and reduce family choice. No final votes were taken on the bills in the portion provided.

Transcript Highlights:

• </c> auditor's report regarding school impact auditor's report regarding school impact fees?
• So once we impact fees from 2007.
• </c> DOE gotten from from the school impact DOE gotten from from the school impact fee?
• It was impacted prior to that.
• </c> for versus agriculture rural. Okay. for versus agriculture rural. Okay.

Keywords: 912, senate, all

Summary: The committees heard several housing-related bills and resolutions. HB 1298 HD3 would create a government employee housing revolving fund and a government employee 99-year leasehold rent-to-own program; testimony was generally supportive from HHFDC, labor groups, and the Maui Chamber, with the Tax Foundation and Budget and Finance raising concerns about the revolving fund. The committees recommended passage with non-substantive amendments for clarity and consistency, and the motion was adopted. HB 741 H2, which would exempt certain affordable housing projects financed by a certified nonprofit CDFI from prevailing wage requirements, drew support from housing advocates and opposition from several construction unions; the chairs said they were concerned about the labor objections and deferred the measure, with the labor committee agreeing to defer it as well. The housing committee then took up HB 417 HD1, which creates a housing efficiency and innovation subaccount in the rental housing revolving fund and allows HHFDC to transfer funds between the subaccount and the main fund without legislative approval. Testimony was largely supportive. The chair described a series of amendments, including changing the funding-efficiency standard, adding perpetual affordability language, allowing any land tenure type, broadening eligible financing tools, adding priority criteria for mixed-income projects and government-employee projects, and inserting blank appropriations tied to a requested $75 million per year and a $75 million subaccount appropriation for the HCDA 99-year leasehold project. The committee recommended passage with amendments, and the recommendation was adopted. HB 422 HD1, which would repeal school impact fees and move remaining balances to the school facilities special fund, drew broad support from housing and taxpayer groups and opposition from the Department of Education and some individuals. The School Facilities Authority and DOE argued the current system had not produced enough usable land or school sites and suggested narrowing the exemption to government housing projects’ construction costs instead of repealing the fee entirely. Members pressed DOE and SFA on how much land had actually been obtained and whether the fee had been effective; the discussion highlighted concerns about unused balances, school overcrowding, and the role of the Land Use Commission and county zoning in securing school sites. The committee did not take final action on the bill in the portion shown. The committee also heard STR 60/SR 45, urging HHFDC to develop a plan to meet housing demand, and STR 77/SR 60, addressing continued eligibility for housing credits for certain projects after repeal of Act 31; both sets of resolutions had HHFDC support, with DHHL supporting STR 77/SR 60 and Johnny May Perry opposing both.

Transcript Highlights:

• Uh, we also have our teacher housing pilot program, uh, for housing that includes the rural and tribal
• The last three are um older projects impacted out of adequacy and school, uh school security where these
• Around the I-25 corridor and obviously as you get more to the rural areas, uh, depending, it could be
• Montoya from LESC examine the impact of inflation on school construction, maintenance costs, and the
• And knowing that those benefit primarily a large portion of rural school districts, can we look at Is

Committee: House Public School Capital Outlay Oversight Task Force

Transcript Highlights:

• looking at trying to help because my wife's pager would go off at night as a first responder in a rural
• public notice website is not an added cost to school districts, it has the potential for positive impact
• It has the potential for positive impact for schools.
• I'm going to finish with one simple note: I've got 110 employees across rural Minnesota.
• But the local newspapers are very important, especially in rural Minnesota.

Transcript Highlights:

• </c> and then received this estimated impact and then received this estimated impact memo<00:05:22.240
• </c> on the impacts of HB500 as introduced. on the impacts of HB500 as introduced.
• The impact of that missing language is clear.
• The impact of that missing language is clear.
• The impact of that missing language is clear.

Keywords: 958, all

Summary: The House Budget Review Subcommittee on Primary and Secondary Education and Workforce Development met for an information-gathering session and opened by clarifying that the subcommittee would not be voting on budget requests. Because there was no quorum at first, the committee did not take up approval amendments. The first presentation focused on a budget request to incentivize national certification for school social workers and school psychologists. Rep. Vanessa Gracal, along with Amy Oats and Leslie Gilpin, argued for a $500,000 annual appropriation to provide $2,000 salary supplements to nationally certified school social workers and school psychologists working primarily in their certification areas. They said the stipend would help recruit and retain professionals amid shortages, noted that current Kentucky certification numbers are low, and explained the rigorous certification and renewal requirements. In response to questions, they said there is currently no appropriation for this purpose in HB 500 and none they were aware of in HB 6 in 2024. The next topic was school facility funding needs, led by Rep. Bob McCool, Johnson County Superintendent Tom Cochran, Commissioner of Education Robert Fletcher, and other district representatives. They described the “gap funding” issue for school construction projects that had already started before COVID-era inflation sharply increased costs. Johnson County and Harrison County were highlighted as examples of districts that had already committed local funds, passed nickel taxes, and begun construction but now need additional state support to finish projects. Speakers emphasized that many projects were audited and approved, that the state has already funded about half of the gap, and that roughly $130 million more is being sought in HB 500 to complete the remaining work. They stressed that unfinished projects would leave districts with half-built schools and that completing them would bring long-term savings and better facilities for students. The committee then turned to testimony from KASA representatives on the impacts of HB 500 as introduced. The witnesses discussed the importance of school psychology and school social work certification, the benefits of advanced training for student services, and the need to recognize and support highly qualified staff. A member asked whether HB 500 or HB 6 included an appropriation for the certification stipend, and the witnesses answered no. The meeting also included a motion to approve the minutes from the prior meeting once a quorum was present, and the minutes were approved by voice vote.

Transcript Highlights:

• If it comes back through trade, it will impact the cattle market.
• The US it will impact the cattle market.
• </c> Initiative to work with Minnesota Rural Initiative to work with Minnesota Rural Health.<00:20:12.960
• </c> uh, the RFSI grant came out, the Rural uh, the RFSI grant came out, the Rural Food<00:25:20.720>
• So it's a no cost to... impact the entire state and would be impact the entire state and would be very

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

Keywords: 1187, senate, all

Transcript Highlights:

• All are incredibly harmful to older Californians and will deeply impact their caregivers.
• There is also, obviously, the dental part of this budget that's being impacted.
• about the impacts to lives and health when we talk about this.
• That is a devastating impact to our ability to maintain operations.
• That is a devastating impact to our ability to maintain operations.

Summary: The Assembly Budget Subcommittee on Health held the first of several hearings on the Governor’s May Revision for health care, with opening remarks focused on the state’s projected $12 billion deficit, looming federal Medicaid changes, and the potential impact on Medi-Cal, public health, reproductive health, and safety-net providers. Several members criticized the proposal as balancing the budget on vulnerable Californians, while others defended the need for cost containment and questioned the administration’s assumptions. The chair set ground rules for respectful, focused questioning and outlined three topics: the Medi-Cal proposals, Proposition 35, and Proposition 56. DHCS Director Michelle Baas presented the May Revision’s Medi-Cal package, saying the department’s budget totals $200.6 billion overall, including $45.2 billion General Fund, and that the proposals are intended to address rising caseloads, pharmacy costs, and managed care spending. She described proposed changes for adults with unsatisfactory immigration status, including a freeze on new full-scope enrollment for those 19 and older, $100 monthly premiums beginning in 2027, elimination of adult dental and long-term care coverage, removal of PPS/RAP payments to FQHCs and rural health clinics for that population, and a pharmacy rebate aggregator. Other proposals included eliminating certain OTC drug classes, removing GLP-1 coverage for weight loss, prior authorization and step therapy changes, reinstating the Medi-Cal asset test, eliminating acupuncture as an optional benefit, allowing utilization management for hospice, raising the managed care minimum medical loss ratio to 90%, reducing PACE capitation rates toward the midpoint of the actuarial range, eliminating the skilled nursing facility workforce and quality incentive program, and suspending the SNF backup power requirement. The LAO said the revised Medi-Cal spending estimate is about $2.5 billion higher than the Governor’s Budget in the budget year, and that the increase appears driven more by higher per-enrollee costs than by caseload alone. The LAO said the budget solutions are concentrated in a few areas, are largely ongoing, and should be considered in light of federal uncertainty, but suggested the Legislature could explore alternatives such as more targeted income thresholds for the undocumented expansion and simpler asset-test rules. Department of Finance officials said the proposals are difficult but necessary to address a third consecutive deficit and rising Medi-Cal costs. Members then pressed the administration on the methodology and impacts of the proposals, especially the enrollment freeze, premiums, asset test, hospice controls, PACE reductions, and the elimination of benefits and provider payments. No votes or formal actions were taken at this hearing.

Transcript Highlights:

• In fact, aside from impacting the outliers and abusers, which I do hope there is some financial impact
• rural North Louisiana or rural South Louisiana or central Louisiana to be able to know how to file a
• Now, I had a—I voted against the bill because you want injured workers in a rural area.
• Now, I had a, I voted against the bill because you want injured workers in a rural area.
• That is who we're talking about, and that is who absolutely will be impacted by this.

Summary: The committee first took up Senate Bill 408 by Senator Myers, a major workers’ compensation overhaul centered on creating an all-claims medical database, requiring electronic reporting and billing, and modernizing fee schedule and claims data collection. Myers said the bill was designed to improve transparency, reduce disputes, address outliers and abuse, and help injured workers return to work faster. The committee adopted technical amendments, then considered a large amendment set combining portions of House bills 780 and 1101, which added preliminary determination procedures, fraud language, temporary total disability and supplemental earnings benefit changes, and a fallback deadline for the department to establish a fee schedule if no agreement is reached by 2029. Several members and witnesses objected that the amendments were dropped late and would turn SB 408 into an omnibus bill; supporters argued the package was the best chance for comprehensive reform. After debate, the committee adopted the amendments and reported SB 408 favorably as amended. Testimony on SB 408 was sharply divided. Supporters, including some providers and injured-worker advocates, said the bill’s core value was transparency through the database and that the system needed modernization and a better fee schedule. Opponents argued the added amendments would burden pro se claimants, expand litigation, and weaken injured workers’ rights, especially through fraud and preliminary hearing provisions. Committee members also questioned whether the combined package was germane and whether it should be allowed to move as a single reform measure. Louisiana Workforce Commission staff explained the timeline for data collection, electronic billing, dispute rules, and eventual fee schedule rulemaking, and said the department could execute the law as amended. The committee then turned to House Bill 585 by Representative Chasson, concerning workplace violence and safety plans for small-box discount retailers. The bill was revised through a substitute that required covered retailers to develop and submit a written workforce safety plan, or submit an existing plan if one already existed. Representative Glorioso raised concerns that requiring a written safety plan could create new civil liability under Louisiana’s assumption-of-duty doctrine and increase litigation and insurance costs. Chasson responded that the intent was simply to encourage safety planning and that businesses already had such plans. The committee discussed possible narrowing language, but the transcript ends before a final disposition on HB 585 is shown.