Transcript Highlights:

• In the surplus lines market, it's different.
• Surplus lines is historically, if you go back to surplus lines, it's kind of the origination of insurance
• You wouldn't necessarily want to see a mass-market approach to the surplus lines.
• Most surplus lines carriers would not probably be interested in that.
• It's more like a surplus lines entity, and its rates and forms are not regulated.

Summary: The Senate Committee on Banking and Insurance convened with a quorum present, and Commissioner Michael Yaworsky of the Office of Insurance Regulation delivered a broad update on Florida’s property insurance market. He outlined the division of responsibilities between OIR and the Department of Financial Services, then reported market indicators including 7.61 million residential policies in force, an average premium of $2,755, 1.5 million Citizens takeout approvals, and recent negative trends in homeowners rate requests. He credited recent legislative reforms, especially tort reform and the Insurer Accountability Act, with improving market stability, increasing competition, and allowing the office to conduct more examinations and investigations, recover consumer restitution, and fine insurers for misconduct tied to recent hurricanes. Yaworsky emphasized that Citizens Property Insurance has been rapidly depopulating from its 2022 peak and may fall below 300,000 policies, while cautioning that over-depopulation could create residual-market risks and assessments if a major storm hits. He also discussed the distinction between admitted and surplus lines markets, the role of reinsurance in Florida pricing, and the effect of inflation on total insured values and premiums. He said Florida has seen comparatively modest property rate increases relative to other states and noted that recent hurricanes did not produce the kind of rate spikes seen in prior years, which he attributed to a more stable market and reduced fraud and litigation pressure. In response to a question from Senator Martin, Yaworsky explained that California’s wildfire crisis and regulatory structure are not a direct one-to-one comparison for Florida, but that California’s market problems can affect global reinsurance capacity and serve as a cautionary example of regulatory missteps. He also highlighted a recent Progressive auto insurance excess-profits refund of about $1 billion to policyholders, discussed possible federal changes to the National Flood Insurance Program, and urged greater home resiliency and code-plus adoption. The commissioner closed by calling for clearer consumer disclosures and responsible oversight of AI use in insurance filings. No bills were considered and no votes were taken; Senator Hooper moved to adjourn, and the committee adjourned without objection.

Transcript Highlights:

• It's a pre-foreclosure. So I think these things are important to discuss.

Bills: SB1285, SB1289, SB1326, SB1328, SB1329, SB1330, SB1392, SB1402, SB1425, SCR1013, SCR1014

Keywords: sentencing, correctional facilities, multiple sentences, death penalty, aggravating circumstances, juvenile offenses, class 2 felony, foreign donations, election administration, certification, Arizona Revised Statutes, transparency, public disclosure, victims' rights, attorney fees, government accountability, right to counsel, legal representation, parents' rights, family law

Transcript Highlights:

• As a civil practitioner that's familiar with foreclosure, you will appreciate there's a process now quadruple

Keywords: 914, all

Transcript Highlights:

• This would include legal services for fraud, domestic violence, disability rights, foreclosures, etc.

Transcript Highlights:

• The risk that they take by not foreclosure of their homes.

Transcript Highlights:

• First, a surplus lines?
• Surplus lines on the other hand is not fully regulated by the office.
• The idea behind it at that if you look at the long history of insurance is that the the surplus lines
• You would go to the surplus lines market and you would negotiate with the insurer with the appropriate
• You see that increase there in the in the light blue of the size of the surplus lines market.

Transcript Highlights:

• A record surplus that was spent and taxes and fees on all Minnesotans was raised another $10 billion.
• <00:02:40.239> A a record surplus just two years ago.
• A a record surplus just two years ago.
• A record<00:02:40.800> surplus<00:02:41.519> that<00:02:41.760> was<00:02:41.920
• > spent<00:02:42.480> and<00:02:42.720> taxes record surplus that was spent and

Keywords: 1183, house

Transcript Highlights:

• We have, you know, obviously we have the surplus, et cetera, et cetera.
• We had $574 million in bonding capacity added, plus 18.9% of surplus.
• We're giving you a starting point of $18 million plus some surplus money.
• And you did use half of the surplus cash, and you've left half the surplus cash for us to use as well
• Now, it’s not the case because a lot of these projects also had prior surplus dollars and stuff,...

Bills: HB2, HB3, HB799, HB1039

Keywords: capital outlay, budget, infrastructure, appropriation, general obligation bonds, bond authorization, capital improvement, financial management, state treasury, boiler safety, inspection, licensing, state fire marshal, operating certificate, regulations, local sales tax, local use tax, sales and use tax, tax audit, local collector

Transcript Highlights:

• I'm happy to report that there is a road fund surplus for FY25.
• adding $12.8 million to the surplus. adding $12.8 million to the surplus.
• And there were some closed surplus.
• The total for million to the surplus.
• is $61.6 the road fund surplus account is $61.6 million.

Keywords: 00:32 Call to Order and Roll Call 02:30 Road Fund Report 17:22 Approval of Minutes 18:07 High Growth Counties Projects 56:00 Adjournment, 958, all

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• The next three pages are the surplus statements. You notice I do have draft watermarks on here.
• The next three pages are the surplus statements. I do have draft watermarks on here.
• The next three pages are the surplus statements. I do have draft watermarks on here.
• The next three pages are the surplus statements. I do have draft watermarks on here.
• The next three pages are the surplus statements. I do have draft watermarks on here.

Keywords: 928, house, all

Summary: The committee first considered an amendment to add a new “Lakes” license plate to HB 2, with proceeds directed to the cyanobacteria fund for lake cleanup. Representative McGuire said the bill had already passed on consent and asked that it be included in HB 2; members discussed that it had also gone to the Senate. The motion to adopt the amendment failed on a 7-8 vote. The committee then took up an amendment imposing a 5% administrative fee on certain dedicated funds, with several exemptions for funds that could not legally or appropriately be charged, such as those involving federal money or bequests. Supporters said it would make the treatment of dedicated funds more consistent and raise roughly $31 million over the biennium for the general fund, while opponents questioned the number of carve-outs and who currently pays the administrative costs. The amendment failed on a 4-5 vote. Next, the committee reconsidered and then adopted an amendment changing the distribution of business profits tax and business enterprise tax revenue, reducing the share going to the Education Trust Fund from 41% to 30% and increasing the General Fund share. Supporters argued the Senate had overfunded the Education Trust Fund and that the change would help balance the budget without changing education spending levels; opponents said they could not support taking money from the Education Trust Fund. The amendment passed 5-3. The committee also adopted, by the same 5-3 margin, an amendment incorporating HB 741 language on open enrollment and student attendance in public schools, with supporters calling it House policy and opponents noting it had been a close, partly partisan vote in the House. Finally, the committee considered a change to the University System of New Hampshire budget that would reduce general fund appropriations by $40 million per year, offset in part by $15 million in previously approved unique dollars for a net reduction of $25 million per year. Supporters said the cut was necessary to balance the budget and that other options had been exhausted; opponents called it harmful to the university system and argued the committee should instead look to other areas, including education freedom accounts, for savings. The discussion continued, but the transcript excerpt ends before a final vote on the UNH item.

Transcript Highlights:

• Non-admitted or surplus lines carriers, synonymous terms, are not licensed by the state.
• Some non-admitted surplus carriers have added an endorsement that changes the policy, and it's called
• The surplus lines carriers, unlike domestic carriers, are not accountable or answerable to the state
• Louisiana did the same thing, but Louisiana granted an exception for the surplus lines because the surplus
• We've reached out to the surplus lines carriers. They are not keen to talk to us.

Keywords: 995, all

Summary: The Joint Committee on Financial Services heard testimony on a wide range of insurance-related bills. Topics included public adjusters (H. 1100/S. 785), electronic cancellation notices (H. 1123/S. 701), insurance rebates and loss-mitigation devices (H. 1233), flood hazard determinations (H. 1087 and related flood bills), organ donor insurance protections (H. 1248/S. 727), mental health parity in disability policies (S. 780), motor vehicle service contracts (H. 1139/S. 812), modernization of business-to-business insurance transactions (H. 1105), and a bill changing the GIC withdrawal notice deadline (H. 1150). Committee chairs set a three-minute testimony limit and heard from legislators, industry representatives, advocates, and affected consumers. Testimony on public adjusters was sharply divided. Insurance agents and property-casualty industry representatives argued that bills barring insurers from prohibiting public adjusters would interfere with policy terms, while public adjusters and several consumers described cases where adjusters helped secure substantially higher settlements and said some surplus lines policies already contain anti-public-adjuster endorsements. On electronic notices, the insurance industry supported consumer opt-in email communications, while agents warned that email-only cancellation notices could cause consumers to miss cancellations. On rebates/loss mitigation, insurers supported allowing risk-mitigation devices outside the policy to encourage innovation, while agents opposed the bill as an improper inducement. Flood-related bills drew opposition from insurers who said flood determinations are complex and federally governed. The committee also heard strong support for organ donor protections from a kidney transplant recipient and the American Kidney Fund, who said the bill would prevent insurance discrimination against living donors and could encourage more donations. On disability parity, a disability insurance specialist opposed S. 780, arguing that mental health limitations are a consumer choice that helps keep coverage affordable, while the bill’s sponsor said it would prevent unequal limits on behavioral health claims. The committee also heard support for H. 1139/S. 812 from the service contract industry, and support for H. 1105 from APCIA as a modernization measure for specialty commercial lines. No votes were taken; after testimony concluded, the chairs closed the hearing.

Transcript Highlights:

• We have, you know, obviously we have the surplus, et cetera, et cetera.
• We had $574 million in bonding capacity added, plus 18.9% of surplus.
• We're giving you a, well, our starting point was $18 million plus some surplus money.
• And you did use half of the surplus cash, and you've left half the surplus cash for us to use as well
• Now, it’s not the case because a lot of these projects also had prior surplus dollars and stuff.

Summary: The Senate Committee on Revenue and Fiscal Affairs met on May 19, 2026, established a quorum, approved the May 11 minutes, and then took up several House bills. House Bill 1039, presented by Rep. DeSotel, would add taxpayer protections in local sales tax audits by requiring clear notice that waiving prescription is voluntary, requiring a written request identifying records sought before an estimated assessment, and allowing mutual agreements to suspend interest and penalties during an audit. The committee had no opposition and reported the bill favorably. House Bill 799, handled by the State Fire Marshal’s office, would move boiler inspections into the Fire Marshal’s office and allow licensed industry inspectors to perform them, with the stated goal of improving efficiency because current staffing only covers about 20% of inspections; it was also reported favorably without objection. The committee then spent most of the meeting on House Bill 2, the capital outlay bill, with Chairman Bacala explaining that the House had worked with the Division of Administration and Facility Planning and Control to find about $50 million in savings through cash-flow adjustments, under-budget bids, over-appropriations, and bundled-project savings. He argued the bill has grown beyond a true five-year plan and that some prior funding is not transparent because money placed in projects in earlier years no longer appears in later versions of the bill. Division officials said the savings would help address deferred maintenance, especially in higher education, and that Priority 2 projects are used to absorb additional funds if more savings are found later in the year. Senator Luneau asked about dormant projects and the process for removing or reallocating funds from projects with no recent expenditures; officials said such removals must go through the Bond Commission and that they are considering ways to improve the process. Bacala then offered amendments to HB 2, saying they kept Priority 1 fully funded, added about $54 million in Priority 2 projects, and included a large Priority 5 list of member requests. The committee adopted the amendment set without objection and then reported HB 2 as amended favorably. The committee also reported House Bill 3 favorably; Bacala described it as a housekeeping measure that provides bonding capacity to move HB 2 forward. Finally, the committee granted staff authority to make technical changes to the reported bills and adjourned on Senator Lambert’s motion.

Transcript Highlights:

• subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus
• subtraction for qualified tips and for qualified overtime compensation; state aid for school districts; surplus
• And the so-called surplus that is being spent here, much of it is money that hasn't even come in our
• I've been hearing for years before I got here that the surplus is one-time money, so we're not going
• Prior to COVID, when we also had like a $7.5 billion surplus, these are the net ending balances.

Keywords: 970, all

Transcript Highlights:

• <00:45:19.200> food detail on the mail room surplus food detail on the mail room surplus food
• and um Surplus property self Surplus<00:49:54.119> property<00:49:54.400> self-funded<
• 00:49:54.880> through Surplus property self-funded through Surplus property self-funded through
• <01:07:36.440> property don't you don't um s Surplus property don't you don't um s Surplus
• came in the Surplus in the fire Surplus came in the teachers<02:09:54.040> union<02:09:54.840

Keywords: 928, house, all

Summary: The Department of Administrative Services presented an overview of its budget and operations, emphasizing that it is the lowest-spending agency in state government and that its general fund allocation has declined since 2019. Commissioner Arling House explained that DAS also handles back-office functions for several administratively attached boards, which has affected staffing and spending comparisons. He said the department’s current general fund spending is roughly split between retiree health and other operations, and that the presentation was based on adjusted authorized spending rather than the original budget figures. A major portion of the meeting focused on retiree health benefits and the long-term effort to control costs. Deputy Commissioner Cassie Keane described how the state moved from a projected deficit in retiree health to savings through a series of changes, including higher premium contributions, co-pay adjustments, and shifting Medicare retirees into Medicare Advantage arrangements to capture federal reimbursement. She said the state has about 12,500 retirees and spouses on the plan, with roughly 10,906 Medicare retirees and 1,580 non-Medicare retirees, and that the savings have depended heavily on federal funding and procurement decisions. She also noted that Medicare retirees pay Part B premiums and that the state has grandfathered older retirees from some premium contributions. Members asked about what the expenditures cover, why the state offers retiree health instead of simply giving retirees a payment to buy coverage themselves, and whether out-of-pocket costs changed under Medicare Advantage. Keane said the plan covers actual health claims or insurance premiums, that co-pays and maximum out-of-pocket limits remain in place, and that the state has no authority to change benefit details without legislative action. She explained that retiree health is a long-standing employee benefit that wraps around Medicare and is not collectively bargained in the usual sense, though its eligibility rules and cost-sharing have been tightened over time to better target the benefit to long-term state service. The discussion also covered vendor performance problems. Keane said Anthem recently won the contract back from Aetna, but its pharmacy subsidiary, Caroline, caused serious service disruptions. DAS responded by withholding payments, assessing more than $2 million in performance guarantees, and hiring a third-party auditor to review the pharmacy processes. The current contract runs through the end of calendar year 2026, and officials said they are watching federal Medicare Advantage reimbursement changes closely because future savings are uncertain.

Transcript Highlights:

• Moving to page six, the Senate-only provision regarding surplus appropriations for the state grant program
• So, sure, if we had still had an $18 billion surplus and hadn’t spent it into oblivion and didn’t raise
• <00:23:17.039> and had still had an $18 billion surplus and had still had an $18 billion surplus
• Uh, if we have a $19 billion surplus, we can do above and beyond that, great.
• Uh, if we have a $19 billion surplus, we can do above and beyond that, great.

Keywords: 1183, house

Transcript Highlights:

• This is really surplus or excess funds that were accumulated in the 22, 23 biennium.
• Surplus accumulated back in 2223 when we had a historically high inflation.
• Right, but I guess your, your statement is that we don't have a structural surplus.
• We have a surplus as a result of not spending in the last two fiscal years, and I'm trying to figure
• Um, but, but your surplus is really based on what happened in, in.

Transcript Highlights:

• Right, but I guess your statement is that we don't have a structural surplus, we have a surplus as a.
• I often hear, you know, the surplus is because we're over collecting property taxes, but.
• But is it accurate to say that surplus is mainly driven by sales tax, severance tax?
• That is a factor in the surplus. I would not say that is necessarily the law. largest factor.
• But your surplus is really based on what happened in. in and coming out of the pandemic.

Keywords: 1184, house, all

Transcript Highlights:

• and<00:27:06.080> it<00:27:06.320> has<00:27:06.960> a surplus is adequate surplus
• and it has a surplus is adequate surplus and it has a scenario<00:27:07.600> at<00:27:07.840>
• And then the question is: is your surplus adequate? And surplus doesn't mean more than you need.
• And then the question is: is your surplus adequate? And surplus doesn't mean more than you need.
• <00:37:47.920> making Building up you know your surplus making Building up you know your surplus

Keywords: 1189, house, all

Summary: The subcommittee took up the pooled risk management program bill and reviewed a new amendment drafted with input from the Insurance Department and Legislative Services. Department witnesses explained that the proposal would move oversight of pooled risk management programs from the Secretary of State’s office to the Insurance Department, add a licensure requirement, preserve the programs’ non-insurer status, and exempt them from third-party administrator licensure. They also described a series of solvency tools in the draft, including financial reporting, risk-based capital standards, minimum capitalization, investment limits, commissioner examination and enforcement authority, rulemaking authority, merger and affiliate-transaction review, confidentiality protections, and a separability clause. A major theme of the discussion was that pooled risk management programs differ from commercial insurers because the risk remains with the member local governments rather than being backed by a state guarantee fund. Witnesses said the bill is designed to emphasize solvency over return of premium and to give the Insurance Department a regulatory “toolbox” to prevent insolvency, including a proposed $5 million excess or stop-loss coverage benchmark, optional accessible policies, and a requirement that boards vote on dividends or premium returns when capital exceeds 600% of risk-based capital. Members questioned how this approach differed from the original Secretary of State bill and whether assessments on towns would still be possible; the department responded that the new framework would allow more flexible oversight and alternatives to immediate court action. The committee also discussed why the statute should continue to say the programs are not insurers, with the department explaining that this preserves their autonomy and avoids applying unrelated insurance laws and premium taxes. Members asked about the department’s workload and were told the department believed it could absorb the new duties without additional funding. No vote or final committee action was taken in the portion provided.

Transcript Highlights:

• Democrats do have to take some accountability for this because back in '23, we had an $18 billion surplus
• I mean, historic surplus, $18 billion, and they spent that almost overnight, and then raised our taxes
• <00:01:47.840> I<00:01:47.880> mean,<00:01:48.080> historic billion surplus.
• I mean, historic billion surplus.
• I mean, historic surplus,<00:01:49.360> $18<00:01:49.840> billion, surplus, $18 billion

Keywords: 918, senate, all

Summary: The discussion focused on affordability concerns in Minnesota, especially housing costs for first-time homebuyers, rising license tab fees, and property taxes. The senator said many constituents are struggling with everyday costs and argued that recent state spending and tax increases, along with mandates on local governments, have worsened the situation. She also cited waste, fraud, and abuse in state government as a reason to rein in spending and keep more money in taxpayers’ pockets. A major topic was her support for bills to conform Minnesota tax law to federal policy on no tax on tips and no tax on overtime. She said these measures would help workers, including service employees and hairdressers, by letting them keep more of their earnings, and would also benefit small businesses by making them more competitive in hiring. She noted that other states have adopted similar policies and said Minnesota had not yet held a hearing on the bills in committee. The senator also discussed a proposal to roll back vehicle license tab fees to pre-2023 levels, saying Minnesota’s fees are higher than neighboring states and can exceed car payments. She expressed hope that the legislature could act on affordability measures before the end of session, and said she expected these tax-relief ideas to be a priority if her party gains more power in the next election.

Transcript Highlights:

• Slide before, there was almost $300 million in surplus. That's $874 million.
• In fact, we’re running a surplus right now, particularly on LTIF 2.0.
• In fact, we're running a surplus right now, particularly on LTIF 2.0.
• The next year, 2022 surplus, $13 million, spent none of it. $204, $8.5 million state surplus.
• The next year, 2022 surplus, $13 million, spent none of it. $204, $8.5 million state surplus.

Summary: The committee met for an informational hearing focused largely on the state capital outlay process and House Bill 2. Roger Husser and Matt Baker of the Division of Administration/Facility Planning and Control described how the office prepares and administers the capital outlay bill, said the bill has grown substantially over five years, and argued that recent changes in culture, staffing, project management, cash-flow analysis, and use of third-party support have more than doubled project expenditures and improved delivery. Members asked about the use and cost of third-party project managers, delegation of smaller projects to agencies, hiring difficulties, and whether the changes represented better interpretation of existing law versus statutory changes. Husser said some statutes were amended, some internal customs were removed, and the office would provide a list of those changes. He also explained that the office is trying to move away from overly rigid practices and toward faster project completion while still following public-bid and oversight rules. A major portion of the discussion centered on the size and structure of the capital outlay bill, especially the gap between Priority 1 cash capacity and the much larger Priority 5 backlog. Husser said the current annual Priority 1 limit is tied to construction inflation and is about $574 million, with additional surplus funds also available, but that the bill contains far more Priority 5 funding than can realistically move in a five-year plan. He and members discussed dormant projects, scope creep, legacy projects that have sat in the bill for years, and the problem of false expectations for non-state entities. Proposed solutions included limiting Priority 5 to five times Priority 1, requiring annual re-endorsement by members, setting district or project caps for non-state projects, requiring time limits and reporting for grant-like non-state projects, placing matches in escrow, requiring design readiness before submission, and consolidating the many existing reporting requirements into one clearer report. Members also discussed bundling multiple projects under one agency project, which the House had begun piloting for LSU, UL Lafayette, Southern, and DOTD, and which Husser said could improve flexibility, reduce overappropriation, and better reflect actual spending. Baker then explained cash-flow management and the commitment process, saying FPC now analyzes projects annually to estimate what can actually be spent in the next fiscal year and uses commitments to allow projects to proceed when future-year funding is expected. He said overappropriations can result from poor cash-flow estimates, delays, dormant projects, or projects coming in under budget, and that the office is already reworking cash-flow assumptions and reappropriating savings where possible. Members also raised concerns about change orders and low bids; staff said project managers review change orders closely, require concurrence on non-state projects, and sometimes reduce scope to keep projects within budget. After FPC’s presentation, the committee heard the beginning of Louisiana Economic Development’s capital outlay discussion, where LED explained that its projects generally fall into three categories, including the Economic Development Awards Program and Site Readiness Program, both used to support targeted economic development and job creation.