Transcript Highlights:

• There's a— Free rate, a reduced rate, and then a paid rate.
• What would the participation rate be?
• Their participation rate— Their participation rate is not going to increase because they already don't
• So obviously, we're going to expect a higher participation rate.
• So obviously, we're going to expect a higher participation rate.

Committee: Joint Legislative Management

Summary: The Legislative Management Committee met to fill a vacancy created by Representative Jared Hagert’s resignation, and the House majority recommended Representative Berg to replace him on the committee. The motion to appoint Berg was approved unanimously. The committee then took up its assigned task of estimating the fiscal impact of Initiated Constitutional Measure No. 3, the school meals measure, which would require public schools, and optionally nonpublic and tribal schools, to provide breakfast and lunch at no cost to students and reimburse schools through state funds after federal reimbursements are maximized. Legislative Council’s Liz Fordall summarized the measure’s requirements and answered questions about implementation, including the 2027-28 start date, the measure’s interaction with the Legacy Earnings Fund, and the fact that the Legislature would still control the funding source. DPI’s Linnell Johnson then testified at length on current school meal programs, direct certification, CEP and Provision 2 participation, and likely behavioral changes if the measure passed. She estimated the biennial fiscal impact at $124 million to $134 million, with an additional roughly $300,000 in administrative costs, and explained that the estimate assumed higher participation and some schools shifting to CEP/Provision 2 to preserve federal reimbursements. She also noted that if no new applications were filed in non-CEP schools, the cost could be substantially higher. After discussion, Senator Sorvaag moved to report a fiscal impact range of $124,300,000 to $134,300,000 per biennium to the Secretary of State, and the motion carried. The committee also received an informational update from Legislative Council attorney Dustin Richard on the ongoing redistricting litigation, explaining that the U.S. Supreme Court vacated the Eighth Circuit’s prior ruling and remanded the case for further consideration in light of Louisiana v. Callais, leaving the court-imposed map in effect for now. No action was required on that item, and the meeting adjourned after a brief note that the prior minutes would be brought back at a later meeting.

Transcript Highlights:

• alone, loss rates are the highest in the country.
• alone, loss rates are the highest in the country.
• In 10 years, rates were down for doctors and hospitals by 35%.
• Rates have stabilized and are trending downwards. Your work is working.
• In fact, what we're hearing is rates are rising and rising and rising and rising.

Summary: The Judiciary Committee met to consider HB 6003, a bill to repeal Florida’s “free kill” law that limits certain survivors’ ability to recover non-economic damages in medical negligence wrongful death cases. The sponsor, Rep. Trabulsy, said the bill would restore access to the courts for a small class of families and noted the measure passed both chambers last year before being vetoed by the governor. She and supporters framed the bill as a fairness and constitutional issue, while opponents argued repeal would increase malpractice exposure, insurance costs, and pressure on physician access, especially in high-risk specialties and rural areas. Public testimony was sharply divided. Supporters included family members who described deaths they said were caused by medical negligence and who argued the current law denies accountability and equal treatment based on marital status or whether a decedent had minor children. Opponents included the Florida Hospital Association, Florida Medical Association, Florida Chamber, U.S. Chamber, Florida Insurance Council, and other health care and business groups, who warned that repeal could worsen already high malpractice premiums, contribute to physician shortages, and destabilize access to care. Several speakers on both sides discussed possible caps on non-economic damages as a compromise, though the bill itself was presented as a clean repealer with no amendments. During debate, several members spoke in support, emphasizing equal access to the courts and rejecting the idea that the law should treat some families differently from others. Opponents of the bill argued that the current system helps preserve market stability and that liability concerns, not the free kill law, are driving provider departures. After closing remarks from the sponsor, the committee voted 15 yeas and 1 nay to report HB 6003 favorably.

Transcript Highlights:

• First of all, sections 1 through 7 establish a reimbursement rate for a limited annual number of required
• </c> through 7 establish a reimbursement rate through 7 establish a reimbursement rate for<00:04:43.400
• services so that the rates are a bit closer to the cost of providing care.
• services so that the rates are a bit closer to the cost of providing care.
• </c> some additional there's a blank rate some additional there's a blank rate increase<00:21:14.240>

Transcript Highlights:

• rates.
• The first is we look at the retention rate and the success rate of students.
• And you see those before you for retention rate or success rate.
• Education are employed rate.
• First-time pass rate which is now at 92%. Our LPN and collects pass rate is 100%.

Transcript Highlights:

• Withholding rates are set by our LDR rule.
• I've got a 12% growth rate in there.
• Interest rates have been soft.
• But sales tax is a—well, the rate changes are easy to pick up.
• But sales tax is a, well, the rate changes are easy to pick up.

Summary: The Revenue Estimating Conference met with four members present and first approved the December 11, 2025 minutes. Members then recognized the FYI end-of-balance of $577,077,871 as non-recurring revenue. The main business was revising the state revenue forecast for FY 2026, with the Division of Administration recommending a reduction of about $113 million, driven primarily by weaker individual income tax collections, softer general sales tax receipts, and a substantial cut to corporate income tax forecasts. The Legislative Fiscal Office presented a somewhat different but still cautious outlook, and members discussed withholding rates, refund growth, corporate collections, and the effects of the franchise tax repeal and tax reform changes. After questions to the Department of Revenue about collections, refunds, enforcement, and settlements, the conference adopted the Division of Administration’s FY 2026 forecast. The conference then reviewed the FY 2027 recurring forecast. The Division of Administration again recommended a reduction, this time about $104 million, citing continued caution on individual income and corporate taxes, while the Legislative Fiscal Office projected a net increase of about $127 million, largely from sales tax, severance, royalties, vehicle sales tax, and other revenue streams. Members discussed the practical budget impact of the revised forecasts, including the need to reduce spending and the difficulty of funding a possible teacher stipend if a constitutional amendment fails. The FY 2027 recurring forecast was adopted. Members also adopted the long-range forecast, the proposed inflation rates for the Millennium Trust and parish severance allocation, and the incentive expenditure forecast. The incentive discussion noted that reported incentive costs reduce available revenue before appropriations, and members raised the possibility of reviewing or capping such incentives. The Treasurer’s Office then reported that the General Fund cash balance was $404.1 million as of May 5, 2026, and the interfund borrowing base was about $9.18 billion, with cash positions generally similar to the prior year. The meeting ended with a note that another REC meeting might be needed after the May 16 election, followed by adjournment.

Transcript Highlights:

• Withholding rates are set by our LDR rule.
• I've got a 12% growth rate in there.
• Interest rates have been soft.
• But sales tax is a... well, the rate changes are easy to pick up.
• But for that, what, one-quarter rate? Yeah, I mean, it's built in. Okay.

Summary: The Revenue Estimating Conference met with four members present and first approved the prior meeting minutes and recognized the FYI end-of-balance of $577,077,871 as nonrecurring revenue. The main business was revising the state revenue forecast for FY 2026, FY 2027, and the long-range outlook. The Division of Administration recommended a $113 million reduction to the FY 2026 State General Fund forecast and a $104 million reduction for FY 2027, citing weaker-than-expected individual income tax collections, softer corporate income tax receipts, and some weakness in general sales tax, partly offset by stronger motor vehicle sales tax and higher mineral-related revenues tied to oil prices. The Legislative Fiscal Office presented a somewhat different but broadly similar forecast, with modest net increases to the general fund bottom line in the current year and next year, emphasizing caution on income and corporate taxes and more optimism on sales, severance, royalties, and some other revenue streams. A substantial portion of the discussion focused on the causes of the income tax shortfall, especially withholding and refund patterns after tax changes that lowered rates. Department of Revenue officials explained that withholding tables had been set with a cushion that may be producing larger refunds, and said changing the tables could quickly reduce overwithholding, though the effect would take time to show up. Members also discussed corporate collections, the lingering effects of the franchise tax repeal, the role of settlements and audits, and the extent to which collections are voluntary versus enforcement-driven. The Department of Revenue said corporate collections still had key filing and estimated-payment milestones ahead in May and June, and that refund and audit activity related to the former franchise tax would continue for some time. The conference then adopted the Division of Administration’s FY 2026 forecast, the FY 2027 recurring forecast, and the long-range forecast, along with the proposed inflation rates for the Millennium Trust and parish severance allocation. Members also adopted the incentive expenditure forecast, noting that the reported amount is only the REC-reported portion and that larger tax exemption amounts come off the top before appropriations. The Treasurer reported a General Fund cash balance of about $404.1 million as of May 5, 2026, and an interfund borrowing base of about $9.18 billion, saying cash levels were similar on average to the prior year. The meeting ended with a note that another REC meeting might be needed depending on the May 16 election, and the conference adjourned without objection.

Transcript Highlights:

• Next, it increases the interest rate for loans greater than $100.
• They're asking for a modest increase in interest rates from 5%...
• They're asking for a modest increase in interest rates from 5% percent.
• The bill does raise the interest rate from 4% to 5% per 30 days.
• But these other pieces, the interest rate and the document preparation fee, are percentages, their rates

Summary: The Senate Business, Trade, and Economic Development Committee heard public testimony on several House bills. HB 2624 would expand an existing exemption in the solicited real estate transaction law to allow public entities to solicit and buy real property for any public purpose, and also for Indian tribes and nonprofit nature conservancy organizations; the sponsor said the bill is meant to fix an omission from last year’s law, while a forest landowners group opposed it as creating a loophole for low-ball offers to vulnerable owners, and Trust for Public Land supported it as a different kind of transaction with existing appraisal and public-process protections. HB 2334 would create a cash-transaction rounding system to address the end of penny minting; staff said rounding would apply after tax and be permissive for sellers, with immunity and preemption provisions, and retailers and grocery groups supported it as a practical solution to penny scarcity, while members asked about signage and mixed-tender transactions. The committee also heard HB 1269, which would shorten pawn loan terms from 90 to 60 days, raise interest and fee caps, increase storage fees, and allow online payments for extensions. Pawn industry witnesses and the sponsor said the changes are modest, overdue, and needed to reflect inflation and operating costs while serving unbanked customers; some senators questioned whether the combined changes would more than double costs for borrowers, and industry witnesses said they were willing to work on the numbers. HB 2428 would require insurers to send advance lapse notices for individual life insurance policies to policyholders and a designated third party, with proof of delivery, to prevent unintended lapses; the sponsor, the Insurance Commissioner’s office, life insurers, AARP, and a business group all supported the consumer protection goal, though insurers noted added compliance costs and the bill’s delayed effective date for new policies. Finally, the committee heard HB 1078 on pet insurance, which would bar cancellation or nonrenewal based on a pet’s age or conditions that develop during the policy term and would restrict certain affiliate-policy transfers; the Insurance Commissioner’s office strongly supported it as a consumer protection measure, and staff noted a fiscal impact estimate and a new fiscal note request. The committee also took testimony on HB 2624 from both supporters and opponents, and on HB 2334 and HB 1269 from industry and public witnesses, but no votes were taken in the meeting. The chair closed public testimony and adjourned the committee after hearing all scheduled bills.

Transcript Highlights:

• So it runs through our rates, just like everything else.
• So everything we do is recovered through the rates we bill the departments. Okay.
• Through the rates we bill the departments. Okay.
• So there's no increase to the rates just because of this loan.
• Where we have said, you know what, we're good and that needs to remain flat rate, solid rate, whatever

Committee: All ALC-PEER

Summary: The committee considered several appropriation and transfer requests, beginning with a $273,000 temporary appropriation for the Department of Labor and Licensing to cover administrative costs for its enterprise licensing platform, funded by license and application fees. It then reviewed two large Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation for the final quarter of the fiscal year, and $195 million for the State Broadband Office to support the Arkansas BEAD broadband grant program, including an extra help position and grants to internet service providers. The broadband item drew extensive questions about awardees, contract amendments, accountability, build-out timelines, backup plans if providers default, the definition of broadband serviceable locations, and the cost per location. The State Broadband Director said no providers had requested amendments, the program would use milestone-based disbursements and a four-year build-out period, and the first tranche would serve 51,566 homes and businesses with $126.1 million in grants. Both Section B and Section C items were approved. In Section D, the committee approved a $458,000 transfer within the Department of Correction from the female work release program to the Tucker Unit water treatment plant, a $25 million transfer within the Department of Education to cover declining enrollment, teacher incentive, school recognition, and Easter Seals funding, and a $229,000 transfer for the Department of Shared Administrative Services to support two project management office positions. The education transfer prompted questions about how declining enrollment funding is calculated, how many districts receive it, and how long districts can continue to receive it; agency staff said 152 districts were on the preliminary list and the formula is based on the prior two-year average ADM compared with the previous year. The committee also gave favorable advice on a proposed $4.7 million loan for the Office of State Technology to implement ServiceNow and related IT modernization tools; agency officials said the loan would be repaid through cost recovery rates over five years and would replace an existing loan that is ending, with expected savings from consolidating applications but no precise savings estimate yet. The committee then reviewed cash fund and federal grant requests, including $200,000 for wage and hour claimant payments, $15 million for unclaimed property claims, $8,000 for a heritage program grant, and $1.1 million for a College and Career Coaches grant to expand services in rural districts. It also reviewed pay plan and budget manual items without objection. The most extensive report discussion focused on the Medicaid trust fund, where DHS and DFA officials said the balance has been declining and that the state may need to add capital back into the fund. Senators and representatives asked about the current balance, the projected year-end level, the role of the $100 million set-aside, the impact of outstanding Medicaid rules from the prior session, and whether future federal funding could help reduce long-term Medicaid costs. Officials said they are still working through more than 10 outstanding rules with CMS and do not yet have a final price tag for those changes. The meeting ended after the reports were reviewed and the committee adjourned.

Transcript Highlights:

• That one also has a very high rate. It has a 30% error rate.
• It has a 3030 has a very high rate. It has a 3030 error<01:20:38.159><c> rate.
• Error rates are low on that one. It’s a 1.84 error rate year-to-date. Last year it was 1.5.
• But that you said was not included in the error rate. So then what is included in the error rate?
• </c> that 84.6 error rate. that 84.6 error rate. &gt;&gt; Correct.<01:29:37.280><c> Okay.

Committee: Joint Health Services

Transcript Highlights:

• We had one state with an error rate as high as 60%. If you're... it's a 60%.
• We had one state with as high an error rate as 60 percent.
• And so we as a state, our error rate is too high.
• First, we're talking about the error rate, talking about how there is fraud.
• Is our error rate off? Yes. That is well stated.

Bills: HB3057 , HB3130 , HB4113 , HB3310 , HB3314 , HB3985 , HB4486 , HB3040 , HB3407 , HB4343 , HB2981 , HB3764 , HB3765 , HB3767 , HB3982 , HB3321 , HB3322 , HB3323 , HB4126 , HB4130 , HB4170 , HB3345 , HB2941 , HB3062 , HB3244 , HB3298 , HB2977 , HB3304 , HB3299 , HB3297 , HB4260 , HB3906 , HB3648 , HB3319 , HB2933 , HB3544 , HB1322 , HB4104 , HB4105 , HB4106 , HB4107 , HB4108 , HB3974 , HB3134 , HB3055 , HB3115 , HB3471 , HB3497 , HB3500 , HB3505 , HB3755 , HB4202 , HB4226 , HB4236 , HB4139 , HB4144 , HB4422 , HB4423 , HB4317 , HB4321 , HB4322 , HB3176 , HB3239 , HB3263 , HB3673 , HB3794 , HB3796 , HB4265 , HB4266 , HB2123 , HB3048 , HB2445

Summary: The House convened with a prayer, Pledge of Allegiance, and several recognitions, including the Duncan Girls Golf Team, the Doctor of the Day, and the Nurse of the Day. Members also made personal announcements and committee meeting reminders before moving to legislation. The main floor action centered on House Bill 4422, which would require applicants for SNAP and TANF to be U.S. citizens and use the SAVE system to verify immigration status. Supporters argued it would protect taxpayer dollars, enforce the law, and reduce improper benefits use; opponents said it would deter eligible families, especially children in mixed-status households, from seeking aid and would not address DHS error rates or budget problems. After extended debate, the House passed HB 4422 by roll call vote, 18-0. The House then considered House Bill 4423, a similar measure applying the same citizenship-verification concept to Medicaid through the Oklahoma Health Care Authority. Debate repeated many of the same arguments about fiscal responsibility, eligibility, children’s access to benefits, and immigration enforcement. HB 4423 also passed by roll call vote, 18-0. The chamber then moved to announcements and adjourned until Monday, March 2, 2026.

Transcript Highlights:

• </c> to modernize its disability rating to modernize its disability rating schedule<00:23:14.799><c>
• </c> current disability rating be reduced. current disability rating be reduced.
• ,</c> determines veterans disability ratings, determines veterans disability ratings, overriding<00:29
• . ratings. ratings.
• </c> who've yet to apply for a a rating. who've yet to apply for a a rating.

Transcript Highlights:

• settings we... ...highlighting, obviously, DFS's responsibility to make sure in rate settings we keep
• They can only be used to lower your rate or approve a policy.
• In the rate filing in particular, rate filing we're looking at the whole market, the whole... ...underwriting
• a carrier comes and says, in my private passenger auto portfolio, I'm looking for this rate.
• rate kind of piece given the insurance committee a real route for their money on good question.

Committee: Senate Banks

Summary: The Senate Banking Committee met for its first meeting of the session, with Chair James Sanders Jr. and Ranking Member George Borrello opening the hearing and noting a collaborative approach to committee work. The committee first considered and advanced several bills: S.114, which would prohibit state-chartered banks from investing in or financing private prisons; S.2040, which would require money transmitters to provide a consumer warning; S.5473, which would require disclosures in advertisements involving virtual tokens; and S.8406, Sanders’ bill to amend the community bank deposit program. Each bill was moved and approved by committee, with S.8406 passing unanimously. The committee then heard from Caitlin Azar, Acting Superintendent of the Department of Financial Services (DFS), who outlined her background and DFS priorities. She emphasized affordability, consumer protection, stability, and innovation, and discussed DFS-led initiatives in the governor’s budget, including Banking Development Districts, non-bank mortgage CRA regulations, CDFI investment guidance, and consumer restitution. She also said DFS plans to issue buy-now-pay-later regulations in February, expand student lending protections and borrower education, and continue work on insurance affordability, including auto and homeowners insurance reforms, anti-fraud efforts, and discounts tied to telematics, dash cameras, and safe-driving courses. Members questioned Azar about the balance between regulation and access, especially in crypto, buy-now-pay-later, and insurance markets. She said DFS aims to preserve competition while preventing discriminatory or excessive practices, and described existing oversight of virtual currency, including coordination with federal regulators. Another member asked about AI in auto insurance underwriting and pricing; Azar said DFS requires transparency, bias review, governance controls, and consumer recourse, and that credit scores cannot be used to deny or increase rates. The chair also raised concerns about foreclosure in Southeast Queens, improving BDD paperwork and data collection, and increasing the number of state-chartered credit unions. Azar said DFS is working on process improvements, community input, and maintaining open communication with the committee, but no additional votes or formal actions were taken during the DFS hearing.

Transcript Highlights:

• So the employers, we raised their rate to take care of this.
• So what we want to do is lower those rates and keep the fund going to make sure that we can make those
• their their rate to take care<00:01:56.159><c> of</c><00:01:56.320><c> this.
• </c> amendment is uh we're lowering the rates amendment is uh we're lowering the rates because<00:03:
• We don't need the rates that are much. We don't need the rates that are there<00:03:12.239><c> now.

Committee: Senate Economic Development, Tourism, & Labor

Transcript Highlights:

• They have to now set their tax rate for the new school year, which is going into the next year here,
• And evidently Revenue Administration developed their tax rate based upon what they understood to be the
• </c><00:04:00.159><c> for</c> They have to now set their tax rate for They have to now set their tax
• </c><00:04:40.240><c> now</c> to have their halfyear tax rate now to have their halfyear tax rate now
• When I spoke adjusted rate applications.

Summary: The committee of conference on HB 718 met to reconcile House and Senate language. Members discussed two main parts of the bill: provisions requiring the Department of Education to report on rules that exceed state or federal requirements, including any fiscal impact on school districts, and language related to the new Pasquaney school district and its tax-rate setting timeline. Conferees said they were agreeable to the Senate’s additions on reporting and the handling of indeterminable fiscal impacts. The group focused on a House amendment, 2725H, which made two technical changes to the Senate language: adding the word “certified” to align with existing statutory language and changing the bill’s effective date to “upon passage” so the Department of Revenue Administration could act in time. A further clarification was proposed to specify July 1, 2025, for the tax-rate language, and members agreed to that change as well. There was some concern raised that the bill’s underlying special education implications could have indeterminate fiscal effects on school districts, and one member said that without a fiscal note they could not support it. After discussion, the House members voted in favor of the three changes, the Senate member present also supported them, and the chair announced the result as effectively unanimous. The committee then said the report would be drafted and the bill would move forward, with HB 102 mentioned as another item to be placed on consent.

Transcript Highlights:

• </c> increase mileage rates. increase mileage rates.
• </c> understand there is that the bond rating understand there is that the bond rating which<00:19:30.720
• independent rate-setting authority, which would actually divert capital dollars to higher interest rates
• </c> this amendment is that MTDA bond rating this amendment is that MTDA bond rating would<00:20:07.840
• public when rates are set. public when rates are set.

Transcript Highlights:

• </c><00:30:53.520><c> return</c> rate assumed rate of investment return rate assumed rate of investment
• </c> called direct rate smoothing. called direct rate smoothing.
• smoothing only for the this direct rate smoothing only for the investment<00:32:25.280><c> rate</c><
• So this is that statutory rate.
• So this is that statutory rate.

Summary: The meeting began with roll call, confirmation of a quorum, and approval of the prior minutes. The main presentation was from KPPA officials Ryan Barrow and Erin Saratt on the annual actuarial valuations for the retirement and insurance systems. They said the systems’ funding status improved overall, with three of five insurance funds fully funded, CERS hazardous dropping from over 100% funded to 90.9% because of premium changes, and KRS receiving $650 million in supplemental funding over the biennium. They also reported strong investment returns above assumed rates, higher payroll and membership counts, and resulting actuarial losses tied to higher salaries and premiums, especially on the insurance side. Members asked several questions about what drove the actuarial losses and whether legislation affected them. KPPA said the CERS insurance loss was driven by premium increases and Senate Bill 10, while the pension-side losses were largely due to higher payroll and benefits for Tier 1 and Tier 2 members. They explained that new Tier 3 employees are designed to add no additional unfunded liability, and that the state administers the systems but does not directly control all hiring. Questions also focused on retiree health premiums, which KPPA said rose about 15% for non-Medicare retirees and 38% for Medicare retirees, with the increase attributed to utilization, prescription costs, and the Inflation Reduction Act. The committee then heard from TRS Deputy Executive Secretary and General Counsel Beau Barnes on the 2025 TRS actuarial valuation. He reported that the Retirement Annuity Trust and Health Insurance Trust both received full funding, the retirement trust’s funded ratio improved to 61%, TRS 4 remains well funded with no liability, and the health insurance trust improved to 89.1%. Barnes said TRS is on track to fully fund legacy liabilities within the amortization period, with 2044 as the point when the system reflects 100% funding and 2046 as the last year needing additional dollars for the legacy liability. He also explained that lower assumed investment returns and updated mortality assumptions increased liabilities, but that TRS uses direct rate smoothing for budgeting purposes. At the end of the meeting, the chair circulated a proposed set of “do’s and don’ts of pensions,” emphasizing that future legislation should not create unfunded liabilities. Barnes also noted he would later discuss several legislative proposals for the 2026 session, but the transcript provided ends before that discussion or any votes on those proposals.

Transcript Highlights:

• </c> energy transition is low cost for rate energy transition is low cost for rate payers<00:48:14.359
• </c> setting utility standards and rates setting utility standards and rates approving<01:16:06.600><
• electric rates, and that residential rates are somewhat below the national average, but commercial rates
• rates and that nationally with electric rates and that residential<01:24:58.800><c> rates</c><01:24:
• but commercial rates national average but commercial rates are<01:25:03.520><c> are</c><01:25:03.800

Committee: House Energy Finance and Policy

Transcript Highlights:

• My understanding is that because it fell below what is already assumed to increase in rates, then it
• Nursing homes are paid via the VBR rate methodology, which increases over time, and that rate methodology
• </c> any direction to DHS to update the rates any direction to DHS to update the rates or<00:49:04.520
• I'm also pleased to see that House File 1419 provides an annual update to elderly waiver rates.
• </c> update to the elderly waiver rates update to the elderly waiver rates ensuring<01:04:21.279><c>

Bills: HF1419 , HF500

Committee: House Human Services Finance and Policy

Transcript Highlights:

• There's a part here around rate setting.
• Ultimately, we agree that these things, we don't want these things in rates.
• But the idea is, ultimately, we do want to get those costs out of rates. Yeah.
• And the idea is we start to take as much of that as possible out of rates. I use every year.
• It's just going to give us, again, resources to take it out of rates.

Summary: The Assembly Committee on Natural Resources heard Senator Becker present a broad energy and affordability bill focused on shifting certain utility-related costs out of rates and into a new public power fund structure. The bill’s major elements included using cap-and-trade climate credit revenues to provide larger and better-timed customer credits, especially for low-income customers; creating a fund to help cover wildfire mitigation, care and fairness, and other public-purpose costs; adjusting rate-setting and wildfire spending oversight; and streamlining permitting and CEQA review through programmatic environmental documents for similar projects. Becker said the goal was to reduce regressive costs in rates while still supporting climate and infrastructure goals. Support came from municipal utilities, community choice advocates, environmental justice and clean energy groups, and the Climate Center, many of whom said they supported the bill and wanted to continue working on amendments. Opposition came from the California Chamber of Commerce, utility companies, business groups, and labor representatives, who argued the bill would shift rather than solve cost pressures, create rate instability, and introduce reliability and investor risks. Several opponents also criticized the proposed funding structure and the inflation-capped rate-setting approach. Committee members asked Becker about the rationale for the power fund, the change from 85% to 100% of cap-and-trade revenues going to customer credits, the reduced frequency of wildfire mitigation reporting, and the adequacy of streamlined environmental review. Becker said the bill was intended to move wildfire and other public-purpose costs out of rates over time and to speed up review without eliminating project-specific environmental analysis. The committee ultimately voted to pass the bill on a due-pass recommendation, with members noting ongoing discussions on permitting and other amendments.

Transcript Highlights:

• Miranda, are these rates strictly residential, the residential commercial— Rates strictly residential
• So North Dakota systems over the past 24 years have been working on their rates at the rate of 1 percent
• The most common ones are meeting household income, water rates, water system size, unemployment rates
• , and poverty rates.
• Average rate increases...

Summary: The Water Topics Overview Committee met to receive interim status updates on several water-related studies and Department of Water Resources projects. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and then heard updates on the watershed management study and the stormwater/wastewater study. Staff reported that the committee had already received the testimony contemplated in the study plans, including input from state agencies, local governments, and out-of-state entities, and that any further action would be at the committee’s discretion. The Department of Water Resources then provided project and budget updates on NAWS and the Southwest Pipeline Project. Reese reported NAWS is expected to serve about 81,000 users, with a total projected cost of about $571 million and about $96 million remaining, while the Southwest Pipeline Project is estimated at $1.06 billion total with about $409 million remaining. Members asked about funding sources, capacity needs, and whether current and future construction is being designed for increased demand; department staff said current work is designed for ultimate capacity, but some future components may need redesign based on new requests. The committee also discussed local cost shares, Minot’s role in NAWS funding, and whether the system is adequate for peak demand. A major portion of the meeting focused on the department’s cash management, carryover, and long-term water funding outlook. The department said Resources Trust Fund revenues are tied to oil extraction taxes and are affected by stripper well exemptions and future oil price declines. Members expressed concern about large carryover balances and whether the state is obligating more money than can realistically be spent in a biennium. The department reported about $340.6 million in remaining carryover and said it is trying to reduce that through a two-tier pre-construction/construction process and closer project vetting. The department also summarized the Deloitte studies on regional governance and finance and on cost-share policy. Stakeholders generally favored keeping the current governance structures for NAWS and Southwest with improvements, while Red River stakeholders leaned toward a different option; the department said it will bring an implementation plan back in September. On cost share, Deloitte’s recommendations would reduce some percentages, prioritize projects differently, and use other measures to close a projected long-term funding gap. Members debated affordability, local burden, deferred maintenance, and whether statutory changes may be needed to allow the commission more flexibility in prioritizing and funding projects. No formal votes or final actions were taken beyond approving the minutes and receiving the updates.