Transcript Highlights:

• The flat SIT rate was changed to variable rates over three brackets.
• So there was no tax policy getting signed into law.
• So there was no tax policy getting signed into law.
• I lowered the corporate income tax and won the political messaging on that.
• Investment is based on... ...it sends a strong, strong message to the market.

Summary: The committee’s final day focused first on a historical overview of New Mexico tax packages by Pam Stokes of Legislative Council Services. She described how tax packages have alternated over the decades between tax relief, revenue raising, and tax reform, with examples ranging from the creation of the gross receipts tax in 1966 to major packages in 1981, 1986, 1991, 1994, 2005, 2019, 2022, 2024, and the vetoed 2025 package. Members discussed how tax policy often tracks revenue conditions, how packages can combine increases and decreases, and how local government gross receipts taxes and hold-harmless distributions have affected communities differently. Several members reflected on past packages, especially the 2004 food tax repeal and the 2013 film tax and manufacturing changes, and noted that tax policy can have major economic and political effects even when it is not “sexy” legislation. The committee then heard a proposal to expand the health care practitioner gross receipts tax deduction to include co-insurance, and to extend the sunset date. Sponsor Senator Figueroa said the bill was intended to help recruit and retain medical providers and build on prior deductions for co-pays and deductibles. Testimony explained that co-insurance is the patient’s share after the deductible, that providers currently absorb the gross receipts tax on those payments, and that the proposal would cost about $30 million to the state plus about $20 million to municipalities and counties, with the exact fiscal impact likely to be updated. Members raised concerns about the effect on local governments, whether insurers could be required to reimburse providers, whether the bill would actually attract doctors, and whether better evaluation measures and sunsets should be added. The sponsor said the bill was part of a broader set of efforts to address provider shortages and that the discussion would continue. Representative McQueen then presented a bill to update the Land Conservation Incentives Act. He and conservation partners said the program has protected more than 500,000 acres but has not kept pace with rising land values, especially for irrigated agricultural land in the Middle Rio Grande. The proposal would increase the percentage of conservation value eligible for the credit, raise the per-transaction cap from $250,000 to $2 million, and make the credit refundable rather than only transferable. Testimony emphasized that the program is voluntary, keeps land in private ownership and production, and helps land-rich, cash-poor landowners preserve farmland and water rights. Members asked about average credit amounts, how easements work, whether landowners could effectively buy land and then use the credit, and whether there should be inflation indexing or a statewide cap. The discussion also touched on water rights, fencing, and the role of conservation easements in protecting agricultural land and compact water deliveries. Finally, Senator Sharer previewed his 2% tax proposal with a historical presentation on New Mexico tax law, using props to illustrate the evolution from early territorial tax codes to the modern tax system. He argued that the state’s current tax structure is overly complex and that recent federal changes have disrupted the personal income tax base. The committee did not take any votes on the day’s presentations; the meeting was primarily informational, with members offering feedback and raising policy concerns for future sessions.

Transcript Highlights:

• Someone has to be the recipient of a message coming from a website.
• Secondly, I'm looking at creating a bill, hopefully the Governor's office might sign off on it in the
• If you are in the audience and want to sign up. ...up.
• Is anyone signed up on there? Okay, if you could deliver that.
• I emailed, called, left messages, and texted the people that I know at the University of New Mexico,

Transcript Highlights:

• Turning now to the Minnesota outlook, a crucial variable influencing Minnesota's individual income tax
• Outlook GDP turning now to the Minnesota Outlook a<00:14:42.079> crucial<00:14:42.519> variable
• <00:14:43.040> influencing a crucial variable influencing a crucial variable influencing Minnesota's
• Minnesotans sent a clear message, didn't they? Democrats' out-of-control spending has to stop.
• <01:36:41.199> didn't Minnesotan sent a clear message didn't Minnesotan sent a clear message

Keywords: 1187, senate, all

Transcript Highlights:

• So whoever sent you that text message is one of them.
• After we signed he died, did we do enough for those children and, and I, I would hope that we, we can
• on any channel, uh, any political channel, the news channels or, or whatever, and they're the, the message
• Sort of variably fixed and then I think some are pretty fixed that that's right.

Transcript Highlights:

• 00:28:26.040> factors,<00:28:26.520> so<00:28:26.640> many<00:28:26.840> variables
• , have so many factors, so many variables, have so many factors, so many variables, involve<00:28
• modified, but it's inherently a process that is going to have some movement to it because of the variables
• modified, but it's inherently a process that is going to have some movement to it because of the variables
• modified, but it's inherently a process that is going to have some movement to it because of the variables

Keywords: 1191, senate, all

Transcript Highlights:

• <00:23:49.320> to<00:23:50.320> this here to communicate a message to this here to
• communicate a message to this group,<00:23:51.039> this<00:23:51.440> uh<00:23:51.600><
• is that we're at a critical message here is that we're at a critical uh<00:25:53.760> inflection<
• It was a great message.
• I read others It was a great message.

Keywords: 1191, senate, all

Transcript Highlights:

• It sends a strong message that outcome.
• said she's going to come in and sign in. said she's going to come in and sign in.
• We have messaging constantly.
• We have messaging to prevent DWI.
• projects, roadway marking, signing projects, roadway marking, signing projects,<05:06:27.280>

Keywords: 1189, house, all

Transcript Highlights:

• You go back to 1862 when Lincoln signed the Land Grant Act, the Morrill Act, as it's called.
• You go back to 1862 when Lincoln signed the Land Grant Act, the Morrill Act, as it's called.
• Public value, trust, and a unifying message is also a theme in this data.
• The last two themes: public value, trust, and a unified message. Pardon me.
• There's variability on what happens on the other programs.

Summary: The Higher Education Institutions Committee met at NDSU and heard an extensive presentation from President David Cook/President Stewart and NDSU leadership on the university’s priorities, including enrollment, student success, research growth, and use of New Horizons funding. Leaders emphasized NDSU’s land-grant mission, its role in workforce development, and its goal of becoming more distinctive through strategic planning, recruitment and retention, commercialization, and partnerships. They highlighted that NDSU awarded 2,370 degrees in 2025, produces a large share of the state’s engineering, nursing, and agriculture graduates, and reported strong outcomes for graduates staying and working in North Dakota. They also noted enrollment headwinds, competition from other institutions, and the need to manage tuition waivers more carefully through a scholarship optimization effort. Provost Sherry Vale outlined academic stewardship efforts, including review or consolidation of low-producing programs, strategic hiring tied to institutional priorities, faculty workload policy changes, and expanded online and regional offerings. She said the university is using New Horizons dollars to strengthen advising, student support, and programs in engineering, agriculture, and health. NDSU leaders also described new or expanded academic offerings such as robotics and automation, artificial intelligence, material science and engineering, nuclear engineering certificates, accelerated nursing, nurse practitioner certificates, a Master of Health Administration, and a clinical research master’s program with Sanford Health. They stressed that these investments are intended to improve student completion, meet workforce needs, and increase return on public investment. The committee also heard testimony from students and recent graduates who described the value of NDSU’s education, mentorship, internships, research opportunities, and support services. Alyssa Hodges spoke about pharmacy education, public health work, and campus support as a parent and student; Ethan Blessy described engineering coursework, internships with Marvin, and career preparation; and Aiden Freolic discussed neuroscience research, federally funded projects, and plans for graduate study. Their testimony was followed by presentations on partnerships with Gateway to Science for K-12 STEM outreach and with Sanford Research on biomedical research, clinical trials, obesity research, and a joint biostatistics hire. NDSU also highlighted systemwide shared services, Governor’s School programming, and research growth, including a reported 8% increase in research expenditures from $199 million to $215 million. No bill votes were taken; the meeting was informational and featured presentations, testimony, and discussion of future planning and partnerships.

Transcript Highlights:

• And third, how do we plan for variable and shared occupancy?
• <00:04:08.159> we<00:04:08.319> plan<00:04:08.640> for<00:04:08.959> variable
• <00:04:09.360> and third, how do we plan for variable and third, how do we plan for variable
• The Department of Commerce has just signed a new lease.

Keywords: 1183, house

Transcript Highlights:

• <00:19:40.720> have All of those different variables have All of those different variables
• It would be nice to have a tentative date if the budget is signed.
• I don't see if if the budget is signed.
• Kane can correct me after I make all these wrong statements, if a continuing resolution is signed, in
• In the past, there have been signed.

Keywords: 928, house, all

Summary: The Fiscal Committee met on June 20, 2025 and first approved the May 16 minutes and the non-removed items on the consent calendar. It then took up a Health and Human Services item for $5 million in additional nursing facility payments (FIS 25158). HHS explained the transfer was for private and county nursing facilities and was the third and final transfer in FY25, funded through federal matching dollars, county cap funds, and general funds. Members asked about the size of the transfer, whether it signaled future shortfalls, and how projections were developed; HHS said the request reflected updated estimates and that they did not expect similarly large transfers going forward. The committee adopted the item. The committee also considered an ARPA-related item to remove a line from a funding request because the issue had been resolved and the positions/funds were no longer needed. Members approved the item with that line removed. Commissioner Caswell then answered questions about ARPA spending authority, saying remaining projects must be expended by December 31, 2026 and that the item was intended to preserve authority for ongoing capital projects; any unspent funds would revert to the federal government. Members noted the recurring nature of these ARPA adjustments and the need to keep tracking deadlines. The Department of Corrections presented several items, including a $10 million request tied to staffing shortages and overtime costs, plus additional corrections-related funding items. Interim commissioner John Skipa said 18 employees had received preliminary layoff notices pending final budget approval. He and staff said the overtime need was driven by staffing shortages, later collective bargaining pay increases, and double-time compensation for uniform officers forced into overtime; they also said one housing unit section had been closed to reduce staffing pressure. In response to questions about morale and operational risk, Skipa said the department was under strain, that leadership was in transition, and that staffing or budget reductions could create litigation risk. The committee also heard about the Site Evaluation Committee’s budget shortfall, which was attributed to fewer new facility applications but continued casework and public engagement, and approved that item. Finally, members discussed a YDC claims administration item, questioning the role and cost of the Verald Dana consultant; staff said the firm handles intake and processing of claims for the Attorney General’s office and had been involved since the claims process was created. Several items were adopted after brief discussion.

Transcript Highlights:

• She had signed up for that.
• sacrificed together. she had signed up sacrificed together. she had signed up for<01:18:32.800><
• she didn't sign up for that. Now what? she didn't sign up for that. Now what?
• So you didn't sign up to get divorced. So you didn't sign up to get divorced.
• So correct you didn't sign up for this. So correct you didn't sign up for this.

Keywords: 1189, house, all

Transcript Highlights:

• If you are here to testify in person and you didn't already sign up in advance, you can still sign up
• Dyslexia affects one in five children, yet early signs are often dismissed.
• Dyslexia affects one in five children, yet early signs are often dismissed.
• So that's everybody who signed up.
• Three other people signed up, so we're going to hear them now on House Bill 4217.

Keywords: 995, all

Summary: The Joint Committee on Education held a hearing focused primarily on special education-related bills, with testimony centered on two major themes: transition planning for students aging out of school-based services at age 22, and the fiscal strain special education costs place on districts. Committee members explained hearing procedures, noted the House was in formal session, and periodically stepped out for votes while staff recorded testimony. A separate bill on special education due process was also taken up briefly, along with a bill on special education finance and another on equitable access/data reporting. On House Bill 752 and Senate Bill 313, witnesses from the Arc of Massachusetts, the Massachusetts Down Syndrome Congress, the Developmental Disabilities Council, families, self-advocates, and Senator Comerford described the “Turning 22” transition as a crisis point that often leaves families without adult placements, services, or clear communication. Testimony emphasized earlier planning, more accountability, better data collection, and a commission to improve coordination and residential placement. Several parents and advocates shared personal accounts of traumatic transitions, delayed placements, and the need for plans to begin at least a year before age 22. The committee later closed testimony on these bills after hearing from all signed-up speakers. House Bill 4217, on special education due process, drew support from Representative Sullivan-Almeida, parents, and advocates who argued that the burden of proof should shift from families to school districts. Testimony described costly legal battles, delays, and parents having to become experts in reading instruction or hire advocates and attorneys to secure services. Brody Dwyer, a 10-year-old student with dyslexia, and his mother described how evidence-based instruction helped him after years of struggle. The committee also heard testimony on House Bill 546/Senate Bill 317, which would require DESE to publish cross-tabulated data on race, disability, gender, income, and other factors; advocates said this would better expose disparities and help address the school-to-prison pipeline. Finally, on House Bill 691/Senate Bill 430, school leaders, educators, and union representatives testified that special education costs are outpacing district budgets and that increasing circuit breaker reimbursement and creating a commission to study long-term sustainability would help prevent staffing cuts and service reductions. No votes were taken during the hearing; the committee repeatedly closed testimony on individual bills as speakers finished and moved through the agenda.

Transcript Highlights:

• All opposed, like sign. The minutes are approved. First, y'all can come up. Uh, start coming up.
• All oppose<00:02:24.400> like<00:02:24.640> sign<00:02:25.680> is<00:02:25.920><
• <00:02:26.640> First oppose like sign is approved. First oppose like sign is approved.
• <00:25:39.679> rate is what we've done with variable rate is what we've done with variable
• <00:26:14.400> rate business now is doing the variable rate business now is doing the variable

Keywords: 958, all

Summary: The Committee on Agriculture met with a quorum, approved the June 5, 2025 minutes, and heard a presentation from Don Pemberton and David Buchanan of AgriKim/AgriCam on the Eddyville Riverport fertilizer terminal. They explained that the company supplies fertilizer, crop protection, and seed across western Kentucky, with the Eddyville port serving as a key source for about 100,000 tons of fertilizer annually and supporting roughly 20 counties and 19 wholesale customers. They said the existing facility is aging and vulnerable to river humidity and corrosion, and they proposed reconstructing the fertilizer bins into a fully enclosed, more durable facility with an estimated cost of about $1.76 million, far less than rebuilding from scratch. The presenters argued the project is important to keep fertilizer moving quickly during a short application season, to manage global supply disruptions and tariffs, and to avoid higher freight costs if product had to come through other ports. They also emphasized environmental benefits from a contained facility that would reduce runoff into nearby waters. Committee members asked about supply sources, demand trends, ownership, lease terms, and whether the building’s capacity would change. The witnesses said demand is increasing, much of the product still comes from overseas or other domestic ports, and the building would be owned by the company while the Riverport Authority owns the ground. Several members expressed support for the port’s importance to western Kentucky agriculture and noted the need for timely fertilizer storage and delivery. One member, however, said he was not in favor of using public money to subsidize a private, for-profit business and urged the company to negotiate a longer lease with the Riverport Authority before making such a capital investment. The discussion ended without a vote or formal action on the project, though members indicated the issue may be revisited and that the Riverport Authority will later present additional needs to the transportation committee.

Transcript Highlights:

• So we're trying to send the policy message that fiscal capacity disparity aid is a necessary component
• So we're trying to send the policy message that fiscal capacity disparity aid is a necessary component
• So we're trying to send the policy message that fiscal capacity disparity aid is a necessary component
• So we're trying to send the policy message that fiscal capacity disparity aid is a necessary component
• So we're trying to send the policy message that fiscal capacity disparity aid is a necessary component

Keywords: 928, house, all

Summary: The committee met in executive session on HB 563, which revises the adequacy education grant formula, including differentiated aid for free and reduced-price meals, English language learners, and special education, and also restores fiscal capacity disparity aid. Members explained that for FY 26 the formula largely stays the same with the usual 2% increases, while FY 27 would raise the base cost and several aid categories, including a substantial increase in special education differentiated aid. Supporters said the bill recognizes higher special education costs and separates fiscal capacity disparity from the extraordinary needs grant, which they argued better targets property-poor communities. A major point of discussion was the fiscal capacity disparity aid component. Some members asked for more detail on how the formula affected individual towns and how much money was being allocated. The sponsors said the spreadsheet showed the impacts and estimated the fiscal capacity disparity portion at about $13.3 million, benefiting roughly 40 communities, with Manchester the only municipality expected to receive less under the new approach. They also said the change partially rebalances money that had shifted heavily toward larger cities under the extraordinary needs grant and that the special education increase is new money, not taken from the hold harmless or extraordinary needs funds. Several members supported the amendment as a good-faith step and a bipartisan compromise, while others expressed frustration that they did not have enough time or information to review the spreadsheets in detail before voting. After extended debate, the committee recessed for lunch to allow the spreadsheet to be distributed and reviewed, with the understanding that the bill would continue later in the day and then move on to the other bills on the docket.

Transcript Highlights:

• Lohmeier, are you aware that in the FY 25 NDAA, which was passed by the Congress and signed into law
• Secretary Rubio, Mike Waltz, and Secretary Noem, all worked on this policy in 2017, and President Trump signed
• Consider all variables. I don't think these are decisions that should ever be taken lightly.
• we have appropriate platforms and media for those communications, and Signal is an unclassified messaging

Keywords: Department of Defense, nominations, Matthew Lohmeyer, Justin Overbaugh, global security, military readiness, NATO, Russia, China, defense infrastructure

Summary: The meeting was primarily focused on discussing nominations for key positions within the Department of Defense, specifically for roles such as the Undersecretary of the Air Force and the Deputy Undersecretary of Defense for Intelligence and Security. Senators expressed urgent concerns about global security threats, the need for robust military readiness, and the emphasis on effective collaboration with NATO allies amidst rising tensions with adversaries such as Russia and China. Several senators highlighted the challenges facing military infrastructure and defense capabilities, suggesting a critical need for improvements and investment in these areas to ensure national security.

Transcript Highlights:

• And then if we're unable to get to all the people who signed up to testify in person or on Zoom, please
• Contemporary science looks at a baseline from decline in the '90s and shows variability today.
• That's everyone we had signed up to testify in person before we— Oh, did I miss someone?
• Okay, that's everyone we had signed up for testimony. So I think we'll go ahead and move to Q&A.
• Okay, that's everyone we had signed up for testimony. So I think we'll go ahead and move to Q&A.

Bills: HB2101

Keywords: aquatic life, commercial aquarium purposes, Hawaii, environmental protection, sustainability, Native Hawaiian values, marine resources, 910, house, all

Summary: The joint committees on Energy and Environmental Protection and Water and Land heard testimony on House Bill 21101, which would ban or otherwise end commercial aquarium collection. Chairs opened the hearing with a short time limit for testimony and noted they would move to decision-making before the next committee meeting. The Department of Land and Natural Resources said it appreciated the bill’s intent and stood on written testimony, while the Office of Hawaiian Affairs strongly supported the measure as part of its legislative package, citing community calls to ban the practice. Many other organizations and individuals also testified in support, including environmental, Native Hawaiian, and community groups, with arguments focused on reef protection, public trust, cultural concerns, and the view that the trade is extractive and not sustainable. Supporters repeatedly cited declines in yellow tang and other reef fish, especially on West Hawaii and Oahu, and argued that reef recovery has not occurred where collection pressure existed. Several testified that legal aquarium collection has not occurred in West Hawaii since 2017 or on Oahu since 2021, and that the state should not reopen an industry that has been effectively shut down for years. Others said the program is fiscally inefficient because permits generate little revenue compared with the cost of administering and enforcing the program, and that aquaculture or other alternatives could provide jobs without removing wild fish. Native Hawaiian speakers and civic club representatives emphasized traditional and customary practices, community stewardship, and the need to protect resources for future generations. Opposition testimony came from aquarium fishers and related advocates who argued the fishery has been shown sustainable, that the EIS process was completed, and that the bill would unfairly target one user group over another. They said the trade provides livelihoods for local families, that management is solid, and that the legislature should not ban a fishery after requiring compliance with environmental review. Some opponents also argued that fish populations have increased in recent years and that the issue reflects broader user conflict rather than science. No vote or final committee action was taken during the portion of the hearing provided; the chair continued taking testimony, including on Zoom, as time allowed.

Transcript Highlights:

• Because in most cases, I haven't seen them stop for stop signs.
• He said his concern is that the bill mixes the message.
• He said that the most important message for parents is to buy legal e-bikes in the three-class system
• He worried that this bill mixes the message and is not the most important message parents need about
• He said the concern is that the bill mixes the message and may not be the most important message parents

Keywords: 987, senate, all

Transcript Highlights:

• And when you have the capability of nonlinear calculating, you're much faster with less input variables
• Madam Vice Chair, is anyone signed to speak just as neutral, and if necessary? Okay, thank you.
• Madam Vice Chair, is anyone signed to speak? No. Mr. Chair, members, any final discussion?
• Madam Vice Chair, has anyone signed in to speak? Yes, Mr. Chair. We're going to go with against.
• Those agreements were signed.

Bills: HB2746, HB2750, HB2765, HB4036

Keywords: trade offices, committee, Arizona commerce authority, stakeholder input, efficiency, Arizona-Sonora, Sonora, Mexico, trade commission, cross-border trade, bilateral trade, international trade, economic development, foreign relations, border economy, investment, infrastructure, business exchange, academic exchange, legislative commission

Summary: The committee first heard a presentation from Berthold Barak Karlich of Benor Capital on investment, innovation, and trade from a European perspective. He argued that legacy is about enabling future generations through open, connected systems rather than isolation, highlighted Austria’s “hidden champion” SMEs and strong education/research base, and said innovation thrives through international collaboration. He also discussed AI and deep tech investment, emphasizing photonic computing and the need to support hardware that enables future AI systems. In response to questions, he said Arizona appears friendly and strong in deep tech and that he will explore opportunities there. The committee then considered HB 2746, which creates a study committee on trade offices under the Arizona Commerce Authority to review existing trade offices, gather stakeholder input, and make recommendations. Members discussed oversight of Arizona’s trade offices in several countries and the need to evaluate effectiveness. The bill passed with a due pass recommendation by a 7-0 vote. HB 2750, which establishes the Arizona-Sonora Trade Commission to improve trade, commerce, and tourism ties with Sonora, Mexico, also passed, with some members expressing interest in further discussion about its relationship to the Arizona-Mexico Commission; it received a 5-1-1 recommendation. The committee next took up HB 4036, a bill regulating compounded GLP-1 weight-loss drugs and related bulk drug substances, including restrictions on sale and distribution, testing and sourcing requirements, advertising disclosures, penalties, and pharmacy board inspection authority. Supporters, including representatives from Novo Nordisk and the Partnership for Safe Medicines, argued the bill addresses unsafe imported ingredients, misleading advertising, and a surge in unregulated compounded weight-loss products. Opponents from the Arizona Pharmacy Association, a compounding pharmacist, and a physician said the bill would burden lawful compounders, raise costs, reduce access, and could affect other legitimate compounded medications. After extensive debate, the motion for a due pass recommendation failed on a 5-5 tie. Finally, the committee heard a strike-everything amendment to HB 2765 creating a vapor product manufacturer licensing framework, fees, penalties, and Department of Revenue oversight aimed at stopping smuggled vape products. The sponsor said the measure was intended to target illegal imports and protect children, while opponents from the Vapor Technology Association and Arizona Innovates argued it would burden lawful businesses and that the real problem is illegal actors and targeted enforcement. The discussion continued with questions about federal law, flavored vape products, and whether the bill would affect compliant manufacturers, but the transcript ends before any final vote on HB 2765.

Transcript Highlights:

• regularly, and Austin has committed not to move forward with the next phase of the project without signed
• I hope to return to them with a message that Texas's elected leadership not only... ...recreation, and
• I hope to return to them with a message that Texas's elected leadership not only heard their call but
• Ten or not, any variable in this, the DFCs for 50 years were once set based on some amount of growth,
• Thank you. sign of it is to stop development so that the expense of one group is not irreversible and

Summary: The committee met with limited attendance at first, then took up a series of water, agriculture, and rural affairs measures. HB 3898 would allow the Texas Water Development Board to provide financial assistance for brackish water desalination projects in certain border counties and related nonprofit suppliers even if the projects are not in the state water plan. Supporters said it is needed to address severe water shortages in places like Webb County and to support future planning; opponents, including the Texas Alliance of Groundwater Districts, argued it bypasses the regional and state water planning process. The bill was left pending after testimony. The committee also heard HB 5339, which would create a higher-education grant program for regenerative agriculture research. A rancher testified that regenerative methods improved soil health, water retention, and farm viability, while a senator noted existing university research but said better coordination could help. Public testimony was closed and the bill was left pending. Members then heard HB 1523, a temporary prohibition on TCEQ issuing Austin a Class 5 injection well permit for an aquifer storage and recovery project in Bastrop and Lee counties until December 2027. Local officials from Bastrop supported the pause, citing unanswered questions about water treatment, recovery rates, and impacts on the aquifer, while Austin Water opposed the substitute, saying the project is central to its long-term water plan and that stakeholder talks were already underway. TCEQ explained its ASR permitting process and said public participation is possible but not always used in the current authorization process. The bill was left pending. HB 5659, concerning the Northeast Texas Municipal Water District and requiring majority city-council approval before certain water sales or interbasin transfers, drew testimony from district officials who said the change could interfere with existing contracts and district authority, but the chair emphasized the need for local buy-in and said the stakeholders had reached a workable compromise; testimony was closed and the bill was left pending. The committee also heard HB 1690, which would expand notice requirements for groundwater export permits so neighboring landowners and potentially affected aquifer areas are informed by certified mail and publication. The sponsor tied the bill to impacts from the Vista Ridge project, and no one testified against it; it was left pending. HB 3333 would prohibit TCEQ from issuing new wastewater discharge permits directly into the Devils River in Val Verde County. The sponsor and a conservation witness said the bill protects one of Texas’s most pristine rivers and reflects a local stakeholder agreement, while TCEQ said it can ensure water quality but acknowledged the river’s unique sensitivity; the bill was left pending. The committee also heard HCR 108 urging continuation of the U.S.-Mexico tomato suspension agreement, with supporters warning of major Texas job and consumer-price impacts if it ends, and HCR 76 urging federal action on imported shrimp, citing public health and industry concerns; both were left pending. Additional measures heard and left pending included HB 4158 on compensation for Texana Groundwater Conservation District directors, HB 654 creating a dismissal path for certain first-time deer hunting violations after self-reporting and hunter education, HB 4530 requiring Texas Water Development Board review of groundwater rights placed in the Texas Water Trust, HB 2128 directing a study of rural versus urban firefighting and rescue disparities, and HB 278 requiring groundwater districts and management areas to track progress toward desired future conditions over shorter intervals. On HB 278, witnesses split over whether the bill’s interim tracking would improve accountability or create new triggers that could be used against local districts, but no final vote was taken and the bill was left pending.

Transcript Highlights:

• towards recovery and the progress that California has made in that recovery, I think we are seeing signs
• And also the planning efforts and messaging around making sure that your... We would say that.
• And also the planning efforts and messaging around making sure that you're targeting those dollars to
• substitute for seeing improvements in the testing data that we want to see, it is maybe a positive sign
• At this point in time, there's a lot of variables that come into determination of Rate 1 funding.

Summary: The committee heard presentations on the Governor’s education budget proposals for the Local Control Funding Formula (LCFF), Learning Recovery Block Grant, and Expanded Learning Opportunities Program (ELOP), followed by testimony from State Board of Education President Linda Darling-Hammond. On LCFF, Finance outlined the proposed 2.43% COLA, repayment of prior deferrals, and a trailer bill penalty for LEAs that fail to adopt Local Control Accountability Plans on time. The LAO said its COLA estimate was slightly lower and raised concerns that the Governor’s proposed TK staffing ratio increase may be more costly than estimated. Members also discussed whether the current COLA formula should better reflect California-specific or district staffing costs, and whether TK should be more clearly separated from the K-3 grade span adjustment to avoid larger K-3 class sizes. The chair asked staff to work with the LAO on both the TK/K-3 issue and alternative COLA calculations. For the Learning Recovery Block Grant, Finance proposed restoring the first of three delayed payments, $378.6 million one-time Proposition 98 General Fund, while the LAO recommended adopting the proposal but extending the expenditure deadline by at least a year. The LAO reported that districts had spent $1.6 billion of the $6.8 billion received through 2023-24 and said most districts were only now shifting from federal COVID relief to block grant spending. Members questioned whether the large state and federal investments were improving outcomes, citing declining reading and math trends, while Finance and the State Board president pointed to some signs of improvement, especially in math, attendance, and gains for some student groups. Darling-Hammond emphasized that student needs have grown, that recovery spending has gone to devices, ventilation, staffing, tutoring, summer school, and community schools, and that targeted interventions appear to be helping some districts recover faster than others. On ELOP, Finance proposed adding $435 million to expand universal access by lowering the Tier 1 threshold from 75% to 55% unduplicated pupils, bringing ongoing funding to $4.4 billion. The LAO said the estimate was reasonable but recommended delaying implementation for a year, aligning ELOP with ASES to reduce overlap, moving toward funding based on participation rather than enrollment, and considering a fixed Tier 2 rate. Members and witnesses discussed staffing challenges, the use of funds for students with disabilities, and uncertainty in Tier 2 funding caused by unspent dollars and opt-outs. Darling-Hammond supported ELOP as part of California’s broader after-school and summer learning strategy, said most districts are now offering full-day TK and expanded learning, and urged the state to reduce fragmentation across categorical programs and build more unified systems for funding, reporting, and support.