Transcript Highlights:

• in consultation with the commission's executive director, we recommended the investment of all settlement
• By safely investing and maximizing<00:46:40.319> settlement<00:46:40.800> funds<00:46:41.359
• > for maximizing settlement funds for maximizing settlement funds for prevention,<00:46:42.560
• investment director, we recommended the investment of<00:46:53.200> all<00:46:53.680> settlement
• funds through secure of all settlement funds through secure interestbearing<00:46:57.040> accounts

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:30 Personnel Cabinet 00:03:25 Department of Veterans Affairs 00:12:40 Auditor of Public Accounts 00:22:39 State Treasurer 00:42:24, 958, all

Summary: The committee first heard from Personnel Cabinet officials on House Bill 6, which required the Kentucky Employees Health Plan to offer a qualified high-deductible health plan by the 2026 plan year. Officials said the plan was already added for 2025, described it as the lowest-premium option with higher deductibles, and explained that federal rules prevent first-dollar coverage except for limited preventive services. They said 264 members had selected the plan out of about 142,000, and noted it also allows health savings accounts. Members asked about the plan’s benefits, what “catastrophic” meant, the deductible amounts, and whether employees were aware of the option; the cabinet said it would continue to highlight the plan in communications and that the deductible is above $8,000 for individuals and above $16,000 for families. The committee then received an update from the Kentucky Department of Veterans Affairs on the Bowling Green veterans center. Officials said the current target is to move into the building on October 28, with first admissions about two months later, pending final fixes and certification steps for Medicare, Medicaid, and the VA. They explained that about $7 million in FY25 appropriations lapsed because of construction delays, staffing ramp-up was postponed to avoid unnecessary spending, and the unspent funds should be considered in the next budget request. Members praised the project and asked about annual operating costs; officials said the current operating budget is about $15 million, though they do not expect to spend all of it this year. The commissioner also announced the fifth annual state commanders conference in Lexington, focused on veterans issues and featuring state, federal, and advocacy leaders. State Auditor Allison Ball then outlined her office’s budget priorities. She said the office is primarily a billing agency that charges audited entities for its work, and warned that some agencies are now signaling they may refuse to pay for audits related to kinship care and the medical cannabis application process. She said the office plans to continue requesting outlier credits for unusually burdensome county audit fees, funding for the ombudsman office’s transition and expanded in-office operations, and revenue replacement for local government audits and possibly state audits and special examinations. Ball also said the office conducts about 500 audits, reviews, and examinations a year and wants to restore performance audits with seed funding, as well as add investigators to the ombudsman office to focus more on child abuse and neglect cases. Members discussed the value of performance audits, the possibility of raising certain board thresholds to account for inflation, and the need for additional capacity to handle more audits.

Transcript Highlights:

• And there'll be another piece coming in, another amendment dealing with the settlement fund.
• amendment dealing with the settlement amendment dealing with the settlement fund.<00:36:30.560><
• Um uh quite frankly no because the<00:37:14.960> settlement<00:37:15.440> funding<00:37
• :16.400> is<00:37:16.800> very<00:37:17.119> clear the settlement funding is very
• clear the settlement funding is very clear that<00:37:17.760> it<00:37:17.920> cannot<

Keywords: 1191, senate, all

Transcript Highlights:

• units while owners are forced to pay $115,000 in fees and litigation from a construction defect settlement
• that resulted in a $15 million settlement, and yet repairs are still denied by the board.
• 14.039> resulted<00:20:14.720> in<00:20:14.880> a<00:20:14.960> $15 settlement
• that resulted in a $15 settlement that resulted in a $15 million million million settlement<00:20:18.320
• and you're still denied settlement and you're still denied Repairs<00:20:21.039> by<00:20:21.240

Keywords: 910, house, all

Summary: The committee heard testimony on several measures, beginning with HB 117 on condominiums. Testifiers were split: reserve-study professionals and the Community Associations Institute opposed tying reserve requirements to assessed value, arguing reserve studies should be based on actual components and costs and that the bill could lead to over- or under-collection. Condominium owners and advocates supported the bill, saying some associations are not completing reserve studies or are failing to provide audits and adequate funding, and urging stronger fiduciary accountability. A member later asked about compliance rates, and a witness said he was not aware of any association that had failed to do a reserve study, estimating compliance at well over 95 percent, likely close to 100 percent. The committee then took testimony on HB 544 on pet insurance, which drew support from the Attorney General’s office and the Insurance Division with comments about contract-impairment issues, as well as support from the North American Pet Health Insurance Association and the Hawaiian Humane Society. Testifiers said the bill would help consumers understand and use pet insurance as veterinary costs rise. HB 983 on certified public accountants also drew mostly support, with the Hawaii Society of CPAs and the Hawaii Association of Public Accountants offering conditional support and proposed amendments. Public accountants said the bill could help address a shortage of CPAs and expand pathways into the profession, while some speakers cautioned that the language needed clarification and that public accounting experience should be tied to CPA-firm work. An instructor from UH West Oahu said students cannot afford the extra credits currently required and would benefit from a more accessible pathway. The committee also heard HB 1050 on Title 24, with DCCA supporting the measure and no opposition or questions. The discussion then moved to HB 256 HD1 on environmental protection and incinerator emissions. The Department of Health offered comments, while Energy Justice Network and Climate Protectors Hawaii supported strengthening the bill, warning that it could weaken existing standards at H-Power unless amended to preserve stricter state rules and require modern pollution controls. A member questioned the Department of Health about H-Power’s permits and whether additional controls would be required if federal rules change; the department said permits are reviewed every five years and that the facility currently meets state and federal requirements, while EPA rules remain in a public comment process. Finally, the committee heard HB 1051 HD1 on energy efficiency portfolio standards, with support from the Consumer Advocate, State Energy Office, Climate Change Mitigation and Adaptation Commission, Public Utilities Commission, and Hawaii Energy. The committee then heard HB 350 HD1 on energy, where the State Energy Office supported the bill, Solar Ray Corporation offered conditional comments urging any new mandated water-heating technology to meet the same efficiency level as existing solar thermal systems, and the Kauai Climate Action Coalition testified in support. No votes or final committee actions were taken during the portion of the meeting provided.

Transcript Highlights:

• We're part of the 3M settlement fund and grant, which will be funding a $50 million treatment plant for
• <00:13:08.399> uh<00:13:08.560> fund We're part of the 3M settlement uh fund We're
• part of the 3M settlement uh fund and<00:13:09.279> grant<00:13:10.240> which<00:13:10.480
• ><00:13:51.279> state,<00:13:51.519> the<00:13:51.760> 3M<00:13:52.160> settlement
• one arm of the state, the 3M settlement one arm of the state, the 3M settlement fund,<00:13:52.880

Bills: HF1531, HF4017, HF3399, HF4146, HF4019, HF3677

Keywords: crossbow, crossbow hunting, archery season, deer hunting, bear hunting, turkey hunting, fishing, common carp, rough fish, game and fish, wildlife management, hunting license, Minnesota Department of Natural Resources, DNR, sunset clause, expiration removal, archery equipment, outdoor recreation, infectious waste, pathological waste

Transcript Highlights:

• Every single negotiated settlement from last year is included in SB 811, and we've taken a whole series
• apply to certain explosive chemicals under specific conditions; and lastly, exempting any future settlements
• apply to certain explosive chemicals under specific conditions; and lastly, exempting any future settlements
• apply to certain explosive chemicals under specific conditions. ...and lastly, exempting any future settlements

Summary: The Assembly Environmental Safety and Toxic Materials Committee heard several bills focused on wildfire preparedness, industrial safety, and recycling oversight. SB 1153 by Senator Caballero would require urban retail water suppliers to add wildfire-specific procedures to emergency plans and coordinate with fire agencies; supporters said it would improve planning while recognizing water system limits, and the bill was framed as protecting ratepayers and infrastructure. SB 811, also by Senator Caballero, would create a comprehensive DTSC permitting and regulatory framework for metal shredding facilities; supporters argued it would set clear statewide standards and protect communities, while opponents said it would weaken hazardous waste protections and carve the industry out of existing law. SB 883 by Senator Umberg would impose new safeguards for facilities storing reactive chemicals such as methyl methacrylate after the Garden Grove evacuation, including backup cooling, public review, emergency planning, and state tracking; industry groups opposed the breadth of the bill and sought further clarification, while environmental and community groups supported it. SB 1010 by Senator Ashby would strengthen oversight of appliance recyclers by improving reporting, inspections, certification, and funding for enforcement; supporters said it would reduce emissions and improve compliance, while recyclers raised concerns about fees and certification requirements. Each bill drew extensive testimony from industry, environmental, labor, local government, and community representatives. Supporters generally emphasized public safety, transparency, and the need for clearer statewide standards, while opponents warned about overregulation, reduced flexibility, or unintended impacts on existing hazardous waste and recycling systems. Committee members also raised questions about transparency, liability, size-based treatment of facilities, and whether the bills were narrowly tailored enough to address the problems identified. The committee voted to advance all four measures to the Committee on Appropriations, with votes taken on call and some members voting no or not voting on certain bills. The final add-on votes showed SB 811, SB 883, SB 1010, and SB 1153 all passing out of committee, with the roll left open for absent members before the meeting adjourned.

Transcript Highlights:

• comes to the floor, it would only be brought to the floor if there was some level of negotiated settlement
• none of them which would be in the final piece of legislation unless it was part of a negotiated settlement
• According to my definition, the current settlement, if you look at Senate Bill 680, which is Currently
• I want to be very clear that I'm not under any settlement constraints or anything like that.

Bills: HB1242, HB1250, HB1590, HB1752, HB1979, HB1983, HB2952, HB2961, HB2967, HB2973, HB2988, HB3031, HB3047, HB3052, HB3066, HB3086, HB3175, HB3177, HB3178, HB3240, HB3404, HB3429, HB3548, HB3638, HB3671, HB3704, HB3759, HB3831, HB3904, HB3920, HB3944, HB3969, HB3973, HB3975, HB3976, HB3978, HB3983, HB3984, HB4092, HB4118

Keywords: HB1242, cervidae, deer, elk, sales tax exemption, agricultural exemption, livestock, ranching, farm tax, agricultural sales tax, Oklahoma Tax Commission, agriculture, producer sales, private treaty, special livestock sale, tax relief, farm products, rural economy, local law enforcement, Public Safety Technology Revolving Fund

Transcript Highlights:

• There has also been litigation and settlement around this issue.
• <00:10:56.720> and There has also been litigation and There has also been litigation and settlement
• <00:10:58.959> So<00:10:59.200> we<00:10:59.440> need settlement around this
• So we need settlement around this issue.

Keywords: 912, senate, all

Summary: The Restrictive Housing Legislative Working Group held its first meeting on August 21, 2025, to organize under Act 292, which directs the group to review and recommend laws, policies, and procedures on restrictive housing for vulnerable populations, including older adults, people with disabilities, people with serious mental illness, those with sensory impairments, and people perceived to be LGBTQIA+. Co-chairs Sen. Brandon Elefante and Rep. Della Au Belatti outlined the group’s purpose, membership, and timeline, noting the final recommendations are due to the Legislature by January 8, 2027. Members and invited participants introduced themselves, including legislative members, Department of Corrections and Rehabilitation staff, the Department of Health, the Hawaii Correctional System Oversight Commission, ACLU of Hawaii, Community Alliance on Prisons, UPW, and an OHA representative in the audience. The working group discussed its initial focus and agreed that a first priority should be understanding current restrictive housing practices at DCR, including policies on solitary confinement, training, reporting, and how the department currently handles vulnerable populations. Co-chair Belatti said the group should also hear from people with lived experience, including incarcerated individuals and family members affected by solitary confinement, and review litigation, settlements, and outside expert work on best practices. DCR Director Tommy Johnson, appearing by Zoom, said the bill contains specific implementation timelines and that the group should use future meetings to surface topics tied to the act’s requirements. Rep. Shimizu asked how the working group’s recommendations would fit with SB 104 and whether they would supersede existing provisions; Belatti responded that the act allows time for review and for both departmental policy changes and legislative recommendations, with section two’s implementation date set for July 1, 2026. Public comment was limited, with no online testimony. An OHA representative thanked the chairs and said the office looked forward to participating once formally designated. House legislative attorney Sean Aronson suggested the group should hear about any outside or court-mandated oversight of DCR in a future presentation. A member of the working group also asked about scheduling an in-person visit to a correctional facility, and the chairs said that could be arranged with DCR. The group tentatively scheduled its next meeting for October 16, 2025 at 9:30 a.m., noted that September would be skipped, and discussed holding future meetings on third Thursdays. The meeting ended with thanks to staff and adjournment.

Transcript Highlights:

• And I think, too, part of the concern is a lot of time there's a lump sum, like severance or a settlement
• that's made with taxpayer dollars, and then the taxpayers can't really find out what the final settlement
• that's made with taxpayer settlement that's made with taxpayer dollars<00:09:16.440> and<00:09
• was representative finy thank settlement was representative finy thank you<00:09:21.760> madam
• There's often taxpayer money involved in settlement agreements or, you know, buyouts or something like

Bills: HF1917, HF1083, HF367

Keywords: data practices, public official, transparency, government accountability, employment data, domestic abuse, domestic violence, battered women, victim advocate, advocacy, confidentiality, privilege, evidence law, witness privilege, court-ordered disclosure, shelter, crisis intervention, sexual assault counselor, victim services, protective services

Transcript Highlights:

• this position not because of your choice or the board's choice, but because this was a lawsuit settlement
• So there's a lawsuit settlement. Thanks, trial lawyers. Put us in a bad spot again.
• And in order to be competitive under the House settlement, you can spend a certain percentage of your
• Yeah, currently under the House settlement, this current fiscal year is $20.5 million that can be shared
• A follow-up to that: In the SEC, do most schools pay the maximum that they can under the House settlement

Summary: The committee first considered revisions to the JBC rules, which staff said were all prompted by acts passed in the 2025 legislative session. The rules were adopted without objection. Members then received a balanced budget presentation from DFA Secretary Jim Hudson on the governor’s FY27 proposal, which he said was built around three priorities: limiting state government growth, continuing investments in education, and advancing income tax cuts. He highlighted major additions for education funding, EFA growth, pay plan costs, higher education productivity funding, drug task forces, corrections medical costs, the governor’s 1033 initiative, SNAP error-rate reduction, and Medicaid sustainability, while also explaining a new A/B funding category structure intended to prioritize recurring costs and preserve room for tax cuts. Members questioned Hudson about the cost of income tax reductions, the constitutional balanced-budget requirement, education funding, the Educational Adequacy Fund, Medicaid trust fund balances, and the impact of federal changes on Medicaid and SNAP. Hudson said each tenth of a percent income tax cut would cost about $58 million, the budget remained balanced, public education would still receive historic increases, and the Medicaid trust fund would be monitored closely with additional set-asides proposed. He also said the FY27 SNAP administrative cost increase would be about $18 million. The committee then heard from the Division of Higher Education, which reported institutions were 2.61% more productive overall and that the budget recommendation followed the statutory productivity formula. Questions focused on why some institutions were receiving decreases or large increases, how the formula works, and how the new return-on-investment metric and committee composition would affect future funding. The committee approved several higher education-related actions, including personnel changes for nine institutions and special language for North Arkansas College’s move into the University of Arkansas system. Staff then walked members through the higher education appropriation summary, explaining large percentage increases at several institutions were tied to federal funds or corrected carry-forward issues, including the U of A School of Mathematical, Sciences and the Arts, South Arkansas College, SAU Tech, ASU Mountain Home, and ASU Newport. Members also discussed UAPB’s 1890 extension program and the University of Arkansas Division of Agriculture’s land-grant matching funds; officials said UAPB’s recommendation was being aligned with actual spending and that the Division of Agriculture’s Smith-Lever and Hatch matches were included within its overall appropriation. The committee ultimately adopted the Higher Education Coordinating Board’s recommendations for all institutions and then moved on to the Department of Corrections section, with the chair outlining how the committee would proceed through those appropriations by section.

Transcript Highlights:

• BILL IS NOT EQUITABLE WE HAVE MADE SEVERAL CONCESSIONS RELATED TO THE ISSUE INCLUDING A $9 MILLION SETTLEMENT
• IT WAS BROUGHT UP ABOUT THE SETTLEMENT.
• THE SETTLEMENT IS BECAUSE IT WAS BROUGHT UP ABOUT THE SETTLEMENT.
• THE SETTLEMENT IS BECAUSE THEY DID SOMETHING ILLEGAL.
• THE SETTLEMENT IS UNRELATED.

Keywords: 999, senate, all

Transcript Highlights:

• And the whole idea was to extort thousands of dollars out of each settlement.
• <01:53:46.480> And<01:53:46.639> it dollars out of each settlement.
• And it dollars out of each settlement.
• I had a and a settlement was extorted.
• Court just gave a $2 million settlement Court just gave a $2 million settlement to<02:09:43.280>

Keywords: 1187, senate, all

Transcript Highlights:

• Okay, and the DOJ dropped that settlement here...
• And the DOJ dropped that settlement here with health.

Keywords: 1136, house, all

Transcript Highlights:

• >> Um, so we've received many of the major settlements.
• So not everyone goes to this particular dedicated fund, not every settlement.
• <03:38:06.399> agreements maybe many of the settlement agreements maybe many of the settlement
• >> Every settlement that we receive will go to this fund.
• This is a little unique because this has those specific settlement revenue coming in.

Keywords: 928, house, all

Summary: The Joint Committee on Dedicated Funds met to review inactive and dedicated accounts, note prior legislation that had passed, and begin its annual review of agency funds. Members discussed several inactive funds, including some HHS-related accounts, a law enforcement memorial fund, and possible cleanup of accounting references where funds had been reorganized or merged. Staff noted that some newer funds may simply not have started receiving revenue yet, and the committee agreed to follow up on specific accounts later rather than address everything immediately. The committee then heard from Fish and Game on its dedicated funds. Topics included the statewide public boat access account, which is used for boat ramp and access-site maintenance and is supported by boat registration fees and federal funds; the ORV education, training, and enforcement account, which has declined over time and may need attention because revenue depends heavily on weather and snowmobile use; and the search and rescue account, which is funded by Hike Safe cards, a $1 fee from boat and OHRV registrations, and court-ordered fees. Fish and Game also explained that the conservation license plate fund had been merged into the non-game species management account, which is supported by donations, federal funds, and a statutory general fund transfer, and that pheasants are treated as game species under a separate program. The committee spent considerable time on the lifetime license account, an off-book Treasury-held account that collects lifetime license sales and returns funds to Fish and Game based on annual sales plus 9% of the fund balance. Members questioned why the account’s presentation did not clearly show the transfer as a revenue reduction and suggested the reporting format needed cleanup so the flow of money would be easier to understand. Fish and Game said the account is operating properly and that the transfer to the unrestricted Fish and Game fund exceeded $400,000 in the most recent year. The committee also reviewed the publications and fundraising revolving fund, which keeps a $100,000 balance for inventory purchases and transfers excess year-end funds to the unrestricted Fish and Game fund; members again raised concerns that the reporting format did not clearly show the transfer, and staff said they could add a note or other clarification.

Transcript Highlights:

• We don't know if it could invalidate a legally binding settlement.
• We don't know if it could settlement.
• Um, in this budget, we allocated $100 million to the YDC settlement fund.
• <03:28:04.080> This million to the YDC settlement fund.
• This million to the YDC settlement fund.

Keywords: 1191, senate, all

Transcript Highlights:

• And so, not wanting to go down that procedure of slowing settlements down and stopping them, one of the
• And so, not wanting to go down that procedure of slowing settlements down and stopping them, one of the
• And so, not wanting to go down that procedure of slowing settlements down and stopping them, one of the
• And so, not wanting to go down that procedure of slowing settlements down and stopping them, one of the
• <00:31:58.960> and uh put uh some of these settlements and uh put uh some of these settlements

Keywords: Senate streaming session for Friday, March 20, 2026, 960, senate, all

Summary: The Senate reconvened with a quorum and quickly moved through committee reports and second-reader bills, adopting committee amendments and sending several measures to third reading without objection. Bills advanced included SB 10 on State Highway Administration approval timelines for speed monitoring systems; SB 487 on speed monitoring systems in safety corridors; SB 689 creating a task force on post-release services and re-entry; SB 811 requiring reporting of new home sale prices in multiple listing services; SB 877 authorizing a Baltimore City stop sign monitoring pilot in the 41st district; SB 937, the Maryland Fair Chance Housing Act, limiting use of criminal history in tenant screening; SB 984 barring private immigration detention facilities; SB 465 on out-of-court statements and second-degree assault; SB 187 on pre-release services for incarcerated women; SB 388, the Decade Act, revising multiple economic development and tax credit programs; and SB 844, the annual corrective bill. Most of the floor discussion focused on explaining amendments and the policy effects of the bills. Supporters described the housing bill as expanding second-chance opportunities while adding safeguards, and a senator asked detailed questions about how landlords could screen for serious offenses and sex offender registry status. SB 984 was described as an emergency measure preventing state and local approval of private detention facilities and authorizing enforcement by the Attorney General. SB 465 was presented as closing a gap in Maryland law on witness intimidation and aligning the state with broader practice. SB 187 would rename and expand the women’s pre-release facility into a re-entry facility and require progress reports. The most extended debate came on SB 165, the on-site wastewater systems bill. One amendment to exempt redevelopment properties from inspection was offered and failed by roll call with 27 votes in the negative. A second amendment to require consultation with Maryland Realtors in developing regulations was then offered; supporters argued it would help avoid delays in property settlements and bring real estate professionals into the regulatory process, while opponents said the bill concerned broader wastewater regulations, not just property transfers. The transcript cuts off during that amendment’s discussion, before the final vote is shown.

Transcript Highlights:

• After Sharky's death, my family was awarded a $2 million wrongful death settlement, the largest at the
• After Sharky's death, my family was awarded a $2 million wrongful death settlement, the largest at the
• After Sharky's death, my family was awarded a $2 million wrongful death settlement, the largest at the
• After Sharky's death, my family was awarded a $2 million wrongful death settlement, the largest at the
• the largest at the time for settlement the largest at the time for the<01:13:56.199> death<01

Keywords: 910, house, all

Summary: The hearing opened with committee procedures and then took up SB 1, relating to vegetation management near utility lines. DLNR opposed the bill, saying it would shift rights, responsibilities, and liability onto the state and private landowners. Hawaiian Electric supported the measure with amendments, describing it as a first step to address wildfire risk and improve public safety and system reliability. The Hawaii Farm Bureau and Command Schools both raised concerns that the bill could impose significant costs, liability, and access burdens on farmers, ranchers, and other landowners, especially where easements are old or unclear. Life of the Land argued the issue belongs before the Public Utilities Commission, and PUC staff explained that the commission is already reviewing Hawaiian Electric’s wildfire mitigation plan and vegetation management in a docket, with a decision expected by September and public meetings scheduled for April 23 and 24. Committee members questioned the need for legislation versus negotiated solutions, and witnesses said private parties could potentially renegotiate easements without statute. The committee then heard HB 1296, relating to disaster recovery. DLNR and OPSD supported the bill, saying it would ease regulatory burdens in post-disaster rebuilding and help speed permit review. Testimony and member questions focused on the bill’s five-year rebuilding timeline, the role of the coastal zone/SMA process, and how long permit reviews typically take; OPSD said SMA major/use permits generally take about six months, while minor permits are faster. Members also discussed whether the bill would apply to existing structures damaged in disasters and whether the amendments from the Attorney General’s office and OPSD were acceptable; no objections were raised. Finally, the committee heard SB 1170, relating to the expeditious redevelopment and development of affordable rental housing. HHFDC supported the bill, and testimony from a Maui affordable housing project said the measure is needed to rebuild the Weinberg Court Apartments, a 63-unit affordable project in Lahaina, using insurance funds rather than government money. Members asked whether the bill would help existing affordable rental projects damaged before the enactment of related coastal rules, and the response was that the bill is aimed at existing structures damaged during events and intended to speed rebuilding of affordable housing.

Transcript Highlights:

• it in the practice of family law, consider whether or not there is a good faith rejection of a settlement
• person's attorney, and the attorneys are literally churning a file even though a good-faith offer of settlement
• Especially when there is a good-faith offer of settlement and people are just turning the screws to turn

Transcript Highlights:

• Chairman, I will keep moving and go ahead to page 17, where you’ve asked for a report on tobacco settlement
• adding to the same schedule here, and we go all the way back to 1999, where we got our first tobacco settlement
• So that’s the report on tobacco settlement proceeds.
• I do have one other item to report on, where you asked for an update on the DAPL settlement.
• authority of $13.6 million, up to that amount, because at the time we had assumed we would get this settlement

Keywords: 908, all

Transcript Highlights:

• Chairman, I will keep moving and go ahead to page 17, where you’ve asked for a report on tobacco settlement
• adding to the same schedule here, and we go all the way back to 1999, where we got our first tobacco settlement
• So that’s the report on tobacco settlement proceeds.
• I do have one other item to report on, where you asked for an update on the DAPL settlement.
• authority of $13.6 million, up to that amount, because at the time we had assumed we would get this settlement

Summary: The Budget Section met to approve prior minutes and receive a series of budget, revenue, and program updates from OMB, the Tax Department, DOT, DMR, and DPI. OMB reported that general fund revenues through May were about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls, though the biennium is still projected to end with a positive balance. OMB also reviewed oil price and production assumptions, the budget stabilization fund transfer above its cap, Legacy Fund performance, federal grant applications, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, vacancy savings, and the DAPL settlement, noting that most of the settlement funds had been deposited but a small amount of accrued interest would require a future deficiency request. The committee then considered Emergency Commission requests. It approved requests for Public Service Commission abandoned mine lands federal authority, an Attorney General FTE and related funding for criminal investigator work tied to the Office of Guardianship and Conservatorship, and a DPI transfer for bridge software costs. After discussion, the committee also approved DPI’s request for a $500,000 transfer for the food vendor program, despite questions about the program’s savings and cash-flow structure. Later, the Tax Commissioner presented the primary residence credit program, reporting that current biennium costs are expected to exceed the appropriation by about $22 million and explaining how the credit interacts with homestead and disabled veteran credits and the 3% property tax levy cap. The Legacy and Budget Stabilization Fund Advisory Board reported strong returns for both funds, and DOT sought and received approval for two flexible fund highway projects on ND 49 and ND 31. DOT also updated members on Highway 85 construction and said remaining flex fund dollars were essentially fully allocated. DMR reported on the abandoned well plugging and site reclamation fund, noting North Dakota’s relatively small orphan well inventory, current and projected fund balances, rising remediation costs, and a possible need to adjust the fund cap in future sessions. Finally, DPI outlined the new integrated formula gap funding program, explaining that it compensates school districts that cannot reach the assumed 60-mill local contribution because of the 3% levy cap; the first year’s gap funding totaled about $1.8 million, with future costs expected to grow.

Transcript Highlights:

• Chairman, I will keep moving and go ahead to page 17, where you’ve asked for a report on tobacco settlement
• adding to the same schedule here, and we go all the way back to 1999, where we got our first tobacco settlement
• So that’s the report on tobacco settlement proceeds.
• I do have one other item to report on, where you asked for an update on the DAPL settlement.
• authority of $13.6 million, up to that amount, because at the time we had assumed we would get this settlement

Summary: The Budget Section approved the March 18 minutes and received an OMB update showing the general fund is still ahead of the budgeted starting point, but revenues through May are now about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls. OMB also reported the budget stabilization fund is above its cap, meaning a transfer to the general fund is expected, and reviewed oil price/production assumptions, noting continued volatility. Members asked about the income tax netting process, the sales tax decline, oil price discounts/premiums, natural gas taxation, and when the executive branch would present its revenue forecast. The committee then acted on several Emergency Commission requests. It approved, as a group, requests for federal mine reclamation funds for the Public Service Commission, an additional criminal investigator FTE and funding for the Attorney General’s office, and a DPI transfer for bridge software costs. It separately approved DPI request 2164 for $500,000 to support the food vendor program after debate over whether the program’s savings were known and whether the money was simply a pass-through. OMB also reported on federal grants, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, FTE pool usage, vacancy savings, and the DAPL settlement, noting the settlement funds had been deposited and that a deficiency appropriation may be needed later to cover remaining accrued interest. Tax Commissioner Brian Kroshus presented on the primary residence credit program, saying participation has grown sharply and that the current biennium will likely need about $431 million, roughly $22 million above the appropriation. He explained how the credit interacts with homestead and disabled veteran benefits, how the 3% property tax cap works, and why county valuations and mill rates vary. The committee also received a Legacy Fund/Budget Stabilization Fund report showing strong returns, and DOT Director Ron Henke received approval for two Flex Fund highway projects on ND 49 and ND 31. Henke also explained remaining Highway 85 funding and said the department is exploring uses for leftover state dollars. Finally, the Department of Mineral Resources reported on abandoned well plugging and site restoration, noting North Dakota remains in relatively strong shape compared with other states, and DPI began a presentation on gap funding tied to the 3% levy cap, reporting 24 districts received $1.8 million in the first year and projecting higher future needs.