Transcript Highlights:

• That backup generation is largely diesel.
• We do not want to have diesel generators running more than they absolutely have to.

Bills: SB6 , SB11 , SB33

Committee: House State Affairs

Transcript Highlights:

• Right now, the diesel buses sit there idling while kids line up.
• I've had to tell Senator, no, no, you keep those smelly old diesel tractors.

Committee: House House Appropriations & Finance

Transcript Highlights:

• We were trying to eliminate the diesel tax and the fuel tax completely, but I think it's incumbent upon
• That motor vehicle fuel tax, those diesel trucks, they are used. fuel and there's nobody gonna create

Committee: House S/C on Transportation Funding

Transcript Highlights:

• And a lot of that is related to additional blending of the system.
• I think I would say that, though, that, for example, this new blended approach, one of the reasons why
• So one of the changes that's being made here is blending now south of Palmdale.
• That additional area that they're going to blend, again, it may make sense to have to use more existing
• So now they're proposing blending and other things that gets that cost down to, I think, $126 billion

Committee: Senate Transportation

Summary: The Senate Transportation Committee held an informational hearing on the California High-Speed Rail Authority’s 2026 draft business plan, with testimony from the authority, the Legislative Analyst’s Office, and the High-Speed Rail Inspector General. Chair Cortese framed the hearing around the project’s recent changes: a new CEO, revised delivery strategy, loss of federal funds, renewed interest in private financing and value capture, and proposed adjustments to the Merced-to-Bakersfield segment. He also raised concerns about statutory compliance, transparency, and whether the draft plan fully reflects required elements and true costs and timelines. Authority CEO Ian Chaudhry said the project has made substantial construction progress in the Central Valley and is moving toward track installation, with the state’s $1 billion annual cap-and-invest funding providing a stable base. He argued the plan uses design optimization, direct procurement of materials, and revised sequencing to reduce costs and support an early operating segment by about 2032-33. He also promoted broader commercialization of the corridor through real estate, energy, broadband, logistics, and public-private partnerships, saying private sector interest is now real. Several senators pressed him on station locations, tax increment financing, utility relocation authority, permitting delays, transparency, and whether the project can realistically reach Los Angeles and San Francisco on the current timeline and budget. The LAO and Inspector General were more skeptical. LAO analyst Helen Kirstine said the draft plan assumes major scope changes, including a shorter segment, a Merced station outside downtown, more single-tracking, and several statutory changes that have not yet been enacted. She warned that the plan may not comply with recent legislative requirements, that funding may still be insufficient even for the reduced segment, and that borrowing against future cap-and-invest revenues is risky because those revenues are uncertain and volatile. Inspector General Ben Belknap said the draft plan fails to comply with newer statutory requirements, especially regarding the Merced-to-Bakersfield scope, the funding plan, and missing procurement milestone dates. He said the presentation obscures cost increases and schedule delays and limits the Legislature’s ability to compare current estimates with prior reports. Committee members generally supported continued oversight and some form of project delivery reform, but several expressed concern that the plan relies on legislative changes that have not been approved and on private financing that may not materialize. Chaudhry said the authority would address the Inspector General’s findings in the final business plan and continue to pursue federal grants, private capital, and corridor commercialization. No vote was taken at the hearing.

Transcript Highlights:

• And a lot of that is related to additional blending of the system.
• I think I would say that, though, that, for example, this new blended approach, one of the reasons why
• So one of the changes that's being made here is blending now south of Palmdale.
• That additional area that they're going to blend, again, it may make sense to have to use more existing
• So now they're proposing blending and other things that gets that cost down to, I think, $126 billion

Committee: Senate Transportation

Summary: The Senate Transportation Committee held an informational hearing on the California High-Speed Rail Authority’s 2026 draft business plan and next steps for the project. Chair Cortese opened by noting major changes since the 2024 plan, including new leadership, a bottoms-up review, scope changes in the Central Valley, loss of federal funds, and renewed interest in private investment and value capture. The Authority’s CEO, Ian Chaudhary, presented the project as moving into a construction and track-laying phase, citing progress on Central Valley structures, right-of-way acquisition, utility relocations, and a new procurement for track and systems. He said the plan reflects a more disciplined, optimized approach, with the Merced-to-Bakersfield segment targeted for revenue service around 2033 and the broader Phase 1 corridor envisioned as commercially viable through ancillary revenues, public-private partnerships, and future private financing. Committee members questioned the Authority about station relocations, single-tracking, tax increment financing, utility relocation authority, transparency, and the feasibility of private financing. Chaudhary said the Merced and Bakersfield station locations were still under discussion with local governments and that no contracts had been finalized. He defended the reduced scope and single-track approach as a just-in-time strategy to avoid overbuilding, while maintaining high-speed standards. He also said the Authority was exploring land value capture, broadband, energy, and other corridor-based revenue sources, but acknowledged that some tools would require legislative action and that private financing options were still being evaluated. Several senators expressed support for the project but raised concerns about permitting delays, local opposition, constitutional and statutory limits, and the need for stronger accountability. The Legislative Analyst’s Office and the High-Speed Rail Inspector General then gave critical assessments of the draft plan. LAO staff said the plan assumes major statutory changes, understates risk, lacks transparency about scope changes, and may not fully fund even the smaller Merced-to-Bakersfield segment once borrowing costs and other uncertainties are considered. Inspector General Ben Belknap said the draft plan does not comply with newer statutory requirements in SB 198 and AB 377, citing three main deficiencies: unauthorized scope changes to the Merced-to-Bakersfield segment, an inadequate funding plan that omits financing costs, and missing procurement milestone dates. He said the Authority’s presentation obscures the true cost and schedule impacts of the project changes, and that incomplete reporting limits legislative oversight. The Authority responded that it would address the OIG’s findings in the final business plan, and committee members indicated they expected a written response on compliance issues.

Transcript Highlights:

• And a lot of that is related to additional blending of the system.
• I think I would say that, though, that, for example, this new blended approach... ...reasons why the
• So one of the changes that's being made here is blending now south of Palmdale.
• That additional area that they're going to blend, again, it may make sense to have to use more existing
• So now they're proposing blending and other things that gets that cost down to, I think, $126 billion

Committee: Senate Transportation

Transcript Highlights:

• facility contract, tariff, or policy must include provisions permitting the facility to deploy backup diesel
• It eliminates the provision that prohibits diesel generation.
• center operations. or the Bonneville Power Administration, it eliminates the provision that prohibits diesel

Bills: HB2675 , HB2249 , HB2120 , HB1069 , HB1983 , HB2431 , SB6006 , SB6297 , SB6351 , SB6353 , HB2521 , HB2091 , HB2104 , SB6355 , HB2254 , HB2385 , SB5808 , HB1796 , HB1376 , SB6260 , HB2353

Committee: Senate Ways & Means

Transcript Highlights:

• Can these be diesel ferries? Are they going to be hybrids?
• If we do not make that change, diesel and gas ferries will simply contribute much more carbon to our
• Hydrogen fuel cell vessels like these are equipped to operate like a diesel vessel, capable of a full

Bills: HB2604 , HB2436 , SB6354 , SB6352

Committee: Senate Transportation

Transcript Highlights:

• through the Department of Ecology's grants, EPA rebates, and other programs designed to get old, dirty diesel
• The research shows that diesel emissions have a negative impact on student health and academic performance
• Extending the operation of our oldest diesel school buses will counter much of what we've accomplished

Summary: The committee opened with a public hearing on Senate Bill 5808, a proposal to require nonprofit health carriers with “excess surplus” to pay 10% of that surplus into the state health care affordability account for Cascade Care Savings. Committee staff said the bill could generate about $330 million one time in 2027, while the Office of Insurance Commissioner would have implementation costs. Supporters argued the bill would redirect consumer premium dollars to help people afford coverage, while opponents from health plans said reserves are needed for solvency, claims, and capital needs and warned the bill would destabilize nonprofit insurers. The committee also heard testimony on House Bill 2254, which would let the Partnership Access Line assessment cover administrative costs; HCA and Seattle Children’s supported it as a technical fix that saves general fund dollars, and a child psychiatrist asked that savings be reinvested in behavioral health services. House Bill 2385, which extends deadlines for the Medicaid Access Program because of federal restrictions on new provider taxes, also drew support from provider groups seeking future Medicaid rate increases. The committee then heard Substitute Senate Bill 6286, which would increase fines on private detention facilities that deny Department of Health inspections and dedicate the fines to an account for community repair and assistance to harmed individuals and families. Supporters, including Tacoma’s mayor and family members affected by detention, framed the bill as an accountability measure; fiscal staff estimated Department of Health costs of about $395,000 in the 2025-27 biennium. Senate Bill 6006 would exempt food banks from sales tax on certain services enacted last session, with food bank and tribal representatives saying the savings would go directly to food and operations. Senate Bill 6351 would create exemptions from the new sales tax on live presentations for before- and after-school care, arts and cultural nonprofit classes, and K-12 school purchases; school districts, arts groups, and PTA representatives supported it, while asking for clarifying language and broader nonprofit exemptions. Engrossed Substitute House Bill 1717 would let cities and counties create local sales tax remittance programs for affordable housing projects, and housing builders, Habitat affiliates, counties, and city officials supported it as a local tool to lower development costs. In executive session, the committee received briefings on several tax and spending bills and then voted to advance multiple measures. It adopted a substitute and passed Senate Bill 5949, which narrows a B&O tax exemption related to insurance premiums; a proposed retroactivity-removing amendment failed. It adopted a substitute and passed Senate Bill 6129 on cigarette, tobacco, and nicotine taxes after rejecting several amendments, including proposals to study the tax policy or replace the bill with illicit-market enforcement language. The committee also passed Senate Bill 6228 repealing a preferential B&O rate for prescription drug resellers, Senate Bill 6231 repealing data center sales tax exemptions, and Second Substitute Senate Bill 5965, which retained a bag-fee approach rather than a full ban after adopting an amendment. The committee then returned to public hearing and began testimony on Senate Bill 6353, a major Working Connections Child Care bill that would keep income eligibility at 60% of state median income, lower the provider rate target from the 85th to the 75th percentile, and make other program changes; the briefing was underway when the transcript ended.

Transcript Highlights:

• According to the latest annual emissions inventory, the total San Pedro Bay complex emissions of diesel
• inhalers at their schools, like I was, the elders carrying oxygen tanks, or the pregnant women who have diesel
• fuel oil, internal combustion engines until they get 25 miles out before they convert to low-sulfur diesel

Summary: The committee first heard SB 14, which would direct state agencies to reduce single-use plastics and improve waste diversion at state facilities by updating integrated waste management plans, increasing reusable foodware use, reducing paper purchasing, and requiring better employee education and recycling/composting practices. Supporters from the California Compost Coalition, Republic Services, Waste Management, and others said the bill would help build composting and recycling markets and let the state lead by example. Several groups that had opposed earlier versions said they were now neutral after amendments, including the removal of a 90% requirement. The bill was moved out on a due pass as amended recommendation. The committee then took up SB 326 on wildfire mitigation. The bill would create a framework for Cal Fire to evaluate the risk-reduction benefits of fuels management and landscape resilience investments, and it would accelerate implementation of Zone Zero defensible-space standards, including grants for local enforcement and broader application to rental and sale properties and post-fire reconstruction. Support came from Stanford climate researcher Michael Mastrandrea and several local government, insurance, and climate groups. With no opposition, the bill passed as amended to Appropriations. Next, SB 34 on port emissions and the South Coast Air Quality Management District drew extensive testimony. The author said the bill was narrowed by committee amendments to preserve the ports’ ability to reduce emissions while preventing cargo throughput caps and addressing concerns about automation, local control, and the timeline for port clean-air planning. Supporters included ILWU, business groups, and port-related stakeholders, while the South Coast AQMD and many environmental and community organizations opposed it, arguing it would weaken public-health protections and set a bad precedent. After lengthy debate, the committee approved the bill on a due pass as amended vote to Transportation, with some members voting no and others abstaining. The committee also heard SB 279, which would expand composting options for farmers and small community composters by allowing limited on-farm composting after large biomass events and increasing the amount small operations may process and sell. Supporters said the bill would help address agricultural waste, expand composting capacity, and reduce landfill disposal. Commercial composting representatives opposed it, warning that the bill could create regulatory inequities, strand recent investments in permitted facilities, and allow too much unregulated food waste. Despite those concerns, the bill passed to Appropriations on a due pass vote. The transcript also briefly referenced SB 613 on upstream methane emissions data, described as having no opposition and intended to improve tracking of imported oil and gas emissions.

Transcript Highlights:

• examples of vehicles exempted from emission inspection requirements include school buses and heavy-duty diesel-powered

Committee: House Agriculture

Transcript Highlights:

• Welding, automotive tech, diesel mechanics, additive manufacturing, or they want to get their associate's
• welding, automotive tech,<00:33:34.880><c> diesel</c><00:33:35.360><c> mechanics,</c><00:33:36.480><c
• > uh,</c><00:33:36.640><c> additive</c> tech, diesel mechanics, uh, additive tech, diesel mechanics,

Summary: The House Budget Review Subcommittee on Postsecondary Education heard presentations from the University of Louisville and the Kentucky Community and Technical College System (KCTCS) on their strategic plans, enrollment trends, and budget priorities. University of Louisville President Bradley highlighted the university’s new five-year strategic plan, its R1 research status, community-engaged and opportunity college classifications, record enrollment of 25,005 students, and its role in serving first-generation, Pell-eligible, military-connected, and rural students. He also emphasized the university’s economic and workforce impact, including athletics, nursing, dentistry, and a recent Speed School building, and previewed major capital and program requests: a $142 million STEMH building, a $15 million one-time request for National Cancer Institute-related cancer research, and $5.3 million for the Kentucky Manufacturing Extension Partnership. He also discussed a planned $260 million health sciences building and the university’s efforts to expand health care access beyond Louisville through regional sites and residency partnerships. Members responded positively, with Representative Tipton asking about agency bond projects and regional health outreach, and President Bradley saying the university is evaluating debt capacity and exploring smaller projects while noting that the STEM building request would rely on state-funded debt service. He described UofL Health’s expansion into places such as Bullitt County, Shelbyville, Madisonville, and Paducah, and its efforts to train physicians for rural practice. Representative McCool praised the university’s military-friendly designation and cancer research priorities and noted personal family ties to UofL. Michaela Aman, a sophomore from Letcher County, also testified about how UofL has supported her as a rural student and emphasized the university’s commitment to opportunity and social mobility. KCTCS President Ryan Quarles and CFO Todd Kilburn then presented the system’s enrollment, completion, and workforce-training results. They said KCTCS now serves more than 110,000 students, graduated a record 24,000 students last May, and has moved from 45th to 4th nationally in graduation rate. They also highlighted that over half of students are first-generation, 60% work while enrolled, 70% of graduates work in Kentucky, and 74% graduate with no student loan debt. KCTCS described its common-course-numbering agreement with Morehead State as part of a broader transfer simplification effort, and said it trains about 200,000 Kentuckians annually when including workforce training and firefighter instruction. The system also outlined efficiency measures, including property sales, a new bookstore contract projected to save $4.3 million over five years, and a new evaluation process for real estate and facilities. KCTCS’s budget and capital requests included operating funding tied to enrollment growth, support for the TRAINs program, the ECTC training facility at Glendale, continued support for Health Force Kentucky, three capital construction projects at Jefferson, Bluegrass, and Gateway, and asset preservation funding focused on safety and security upgrades. Quarles also referenced House Bill 5, saying it would expand KCTCS’s correctional education and re-entry work and could help reduce recidivism. Members asked about the bill and its impact, and KCTCS said it already provides instruction in jails and prisons and sees the proposal as an extension of that work.

Transcript Highlights:

• Diesel fuel being the major driver there is just making it really expensive to get this type of work
• </c> the line. the line. uh<00:46:05.200><c> diesel</c><00:46:05.599><c> fuel</c><00:46:06.160><c> being
• </c><00:46:06.400><c> the</c><00:46:06.560><c> the</c><00:46:06.880><c> major</c> uh diesel fuel being
• the the major uh diesel fuel being the the major driver<00:46:07.760><c> there</c><00:46:08.400><c>

Bills: HB0078 , HB0087 , SF0070 , SF0068 , SF0017 , SF0043

Committee: House Agriculture, State and Public Lands & Water Resources

Transcript Highlights:

• batteries, fire extinguishers, portable generators, waterproof tarpaulins, ground anchor systems, gas or diesel
• batteries, fire extinguishers, portable generators, waterproof tarpaulins, ground anchor systems, gas or diesel
• tarpaulins and other flexible waterproof sheeting; ground anchor systems; tie-down kits; gas and diesel
• tarpaulins and other flexible waterproof sheeting, ground anchor systems, tie-down kits, gas and diesel

Summary: The House met on the final day of session, swore in Representatives Boyles and Hodgers, and observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, as well as for Representative Rosenwald’s father. The chamber then moved into final budget work, with leaders outlining the plan to take up H.J.R. 5019, HB 7031, HB 5017, HB 5015, and then the general appropriations act once the Senate transmitted it. H.J.R. 5019, a proposed constitutional amendment to expand the budget stabilization fund, was explained and amended to raise the rainy day fund cap, require annual deposits, and allow withdrawals for critical state needs by a two-thirds vote; it passed 100-1. The House then adopted the conference report on HB 7031, the tax package. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or expands several sales tax holidays and exemptions, including permanent exemptions for disaster-preparedness items, hunting/fishing/camping items, and ammunition and firearms-related purchases, and makes changes to property, corporate income, local tax, and economic development provisions. Members debated the removal of recurring housing trust fund and transit-related revenue streams, the new ammunition exemption, and the data center tax changes; supporters argued the package reduces taxes and preserves annual budget flexibility, while opponents raised concerns about housing, transportation, and gun violence. The conference report passed 93-7. HB 5017, creating a debt reduction program funded by a recurring transfer to retire state bonds early, passed unanimously. HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment, also passed. The House then began explanation and questions on the fiscal year 2025-26 general appropriations act, described as a $115.1 billion budget that is down $3.8 billion from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major spending areas, including pre-K-12 funding increases, health care funding for Medicaid, KidCare, nursing homes, opioid treatment, and mental health, transportation and economic development funding, environmental and water projects, higher education, state administration, justice, and information technology. Questions focused on school vouchers, inflationary pressures on school districts, and the adequacy of funding for housing, transportation, and other priorities.

Transcript Highlights:

• So the way to get to the services, I believe, that we need is through blending and braiding.
• And so when you’re able to blend and braid those services, we can overcome that barrier as to the restrictions
• So are you thinking that that in-program supports is going to focus on that blending of services?
• As Deborah has pointed out, and others have pointed out, we need to find a way to blend those and figure

Summary: The committee/task force met with several disability service providers to discuss integrated employment, transition services, and barriers to community jobs for people with intellectual and developmental disabilities. Robin Arder and Belinda Stevens of ThinkAbility described creating their own businesses when community employers were not hiring their clients, and said rigid service rules, employer readiness, bullying, and reimbursement structures often force the person to fit the service rather than the service fitting the person. They said they have not seen clients lose benefits, but they do closely manage reporting to Social Security and related supports. Tina Hannah of South Central Industries described a broad business model that includes manufacturing, janitorial work, city beautification, state-use contracts, a food truck, and an entertainment trailer, along with an adult day program and residential services. She said many employers are hesitant because of productivity and cost concerns, and that businesses are often more open to contracting with her agency than hiring individuals directly. Miranda Figueroa of A New Leaf said her agency is moving toward a more person-centered model with sheltered work, volunteer sites, paid contracts, and a Transition Academy. She said the academy is a two-year program focused first on independent living and then on employment, with internships and an 85% placement rate, but funding is a major barrier because the program is not accredited and students cannot access traditional aid. She also cited dual diagnoses, inconsistent job coaches, and employer uncertainty as major obstacles. Angela Decker and Deborah Copeland of DRTC described DRTC’s long-running enclave contracts, a new Community Skills and Connections program, and a plan to phase out 14(c) subminimum wage use by the end of the year. They said the new program is designed to keep people engaged in community-based skill-building and networking while families still need day supports, and that DRTC has developed more than 100 community partnerships. Senator Kirt, Rep. Hefner, and participants discussed broader system issues, including the need for better school-to-work transition, more social integration, transportation, safety, and employer education. DRS staff said the agency is already required to provide pre-employment transition services in schools starting at age 14 and offers employer accommodations support and job-carving assistance, though they acknowledged federal reporting expectations and service rules can be restrictive. Several participants raised concerns about line-of-sight restrictions, congregate living rules, benefit cliffs, and the difficulty of moving from DDS to DRS services. The group also discussed the need for better data and possible working groups focused on in-school transition, program support and blending services, and community integration. No formal votes were taken.

Transcript Highlights:

• So the way to get to the services, I believe, that we need, is through blending and braiding.
• And so when you're able to blend and braid those services, we can overcome that barrier as to the restrictions
• So are you thinking that that in program supports is going to focus on that blending of services?
• As Deborah has pointed out, and others have pointed out, we need to find a way to blend those and figure

Summary: The meeting focused on integrated employment and related services for people with intellectual and developmental disabilities, with testimony from several provider agencies and state officials. Robin Arder and Belinda Stevens of ThinkAbility described how their organization supports people through residential services and self-created businesses because community employers often are not ready to hire people with disabilities. They said rigid service rules, difficulty fitting individuals into existing job definitions, and reimbursement requirements can prevent person-centered employment supports. They also reported that, in their experience, employees had not lost benefits when work was coordinated carefully with Social Security and benefits management. Tina Hannah of South Central Industries described a broad business model that includes manufacturing, janitorial and highway contracts, state-use products, a food truck, and an entertainment trailer, along with an adult day program and residential services. She said the organization uses a temp-service style model to make employers more comfortable and noted barriers such as employer concerns about productivity, lack of awareness of tax credits and accessibility resources, and the need for consistent job coaches. Miranda Figueroa of A New Leaf said her agency is moving toward a more person-centered model, including a Transition Academy for young adults that combines independent living instruction, community college classes, internships, and follow-along support; she said the program has an 85% placement rate but is expensive and not eligible for traditional student aid because it is not accredited. She also cited barriers including dual diagnoses, workforce readiness, and low reimbursement rates. Angela Decker and Deborah Copeland of DRTC described their long-running enclave contracts and a new Community Skills and Connection program that uses interest-based cohorts, community exploration, and volunteer experiences to build skills and networks tied to employment. They said the agency is phasing out its 14(c) subminimum wage certificate by the end of the year and is trying to expand community-based opportunities. DRTC and other providers emphasized the need to blend DDS and DRS services more effectively, reduce restrictive rules such as line-of-sight requirements, and better support people in congregate living settings. DRS representatives said the agency does provide school-based transition services, employer accommodations, and job carving support, and noted federal reporting requirements tied to wage outcomes. Members also discussed safety concerns, employer education, data collection, ABLE accounts, and the role of schools in preparing students for work and community life. The co-chairs proposed organizing the task force into three working groups: in-school/transition services, program support and service blending, and community integration/employer engagement. No votes were taken, and the meeting ended with plans for further working-group discussion and follow-up on data and policy ideas.

Transcript Highlights:

• the dwelling, but structure is subparagraph C, dwelling is subparagraph B, and it looks like we're blending
• when we're talking about the extension of the dwelling, we are, yes, I think you're right, we are blending
• So I do not, it doesn't, it doesn't blend it in the sense that it creates two things.
• And I think the language in D blends those two concepts. And I think it needs to be clear.

Bills: HB195 , HB279 , SB30 , HB234 , HB292 , SB100 , SB23 , SB221 , SB261 , SB264

Committee: House House Judiciary

Summary: The committee first took up House Bill 195, which would protect the personal assets of certain health care providers from collection in medical malpractice judgments. Supporters said the bill would help recruit and retain physicians, especially in high-liability fields like obstetrics, while opponents argued broader malpractice reform should focus on insurance and legal representation. Members discussed whether the bill’s definition of “independent provider” matched existing law, and the committee adopted a friendly amendment to add osteopathic physician. HB 195 then passed on a 9-0 vote. The committee then heard House Bill 279, a health care privacy and safety measure for reproductive and gender-affirming care. The sponsor said it would strengthen protections for sensitive health information, limit geofencing around clinics, allow providers to keep personal addresses confidential, and remove provider names from medication abortion packaging. Supporters framed it as a privacy and safety bill; opponents said it would weaken parental access, create confusion for emergency physicians, and shield abortion access. After extensive questions about HIPAA, emergency care, and data collection, the bill passed 6-3. Senate Bill 30, which would repeal the requirement that induced abortions be reported to the state registrar, drew similar testimony. The sponsor and supporters argued the reporting requirement is outdated, medically unnecessary, and exposes providers to surveillance and possible out-of-state targeting; opponents said the data supports transparency and public health oversight. Members questioned what data would be lost and how the state currently uses the reports. SB 30 passed 6-3. The committee also heard House Bill 234 on fentanyl definitions, with law enforcement and business groups supporting clearer criminal penalties; members and the sponsor worked through possible amendment language to better align the bill with existing controlled-substance definitions, and the discussion was continued for a revised draft. Finally, House Bill 292, the New Mexico Prison Rape Elimination Act, received broad support from advocacy groups and passed the committee substitute 7-0.

Transcript Highlights:

• the last several months, AB 30 is the Cleaner Cheaper Fuels Act, which will authorize E15 as a new blend
• only state out of the 50 states in the United States that does not currently allow the use of this blend
• Board, CARB initiated the regulatory approval of this blend of gasoline over seven years ago.
• AB 30 is a common-sense, bipartisan solution that ensures that E15 blend can be used in California while

Transcript Highlights:

• If not, the standard requires a blended discount rate.
• If not, the standard requires a blended discount rate that incorporates the municipal bond rate.
• When the plan is not projected to remain fully funded, a blended rate must be applied, combining the
• In this example, the resulting blended rate would be 5.1%.
• The difference of In this example, the resulting blended rate would be 5.1%.

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Transcript Highlights:

• Gas and diesel,<00:57:51.520><c> fuel</c><00:57:52.119><c> oil,</c><00:57:53.119><c> motor</c><00:57:
• 53.559><c> oil,</c><00:57:54.559><c> and</c><00:57:54.799><c> then</c><00:57:54.960><c> a</c> diesel,
• fuel oil, motor oil, and then a diesel, fuel oil, motor oil, and then a fee<00:57:55.440><c> on</c><
• The ODD fund was originally established in 1988 with a fee on gasoline and diesel fuel.
• The current fees of 1 and a half cents per gallon on gasoline and diesel fuel and 4 cents per gallon

Committee: Senate Ways and Means