Transcript Highlights:

• **Witness**: Well, it is a proposed settlement.
• The parties had reached a settlement.
• Does ATRS have an appropriation or a fund for settlements, separate for settlements or litigation damages
• She will agree to the party settlement.
• for the settlement amount.

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT

Summary: The committee first reviewed several wage-claim and labor-related litigation reports from the Department of Labor and Licensing. Members questioned the department’s authority and jurisdiction, whether it was acting like a court, and why it sought attorney’s fees and costs. Department staff explained that the claims arose under the Arkansas Minimum Wage Act and related labor statutes, that the department investigates small wage claims and can file suit when informal resolution fails, and that filing fees are waived by statute though service costs may be incurred. The committee reviewed individual cases, including one where the employer had not proven cash payments, another that had already been paid and dismissed, and a third where service could not yet be completed. The committee then voted to review or batch-file the labor items. The University of Arkansas System then reported on three pending lawsuits under the litigation-notification statute. One case involving a tenured professor alleging age and race discrimination had already been resolved and dismissed after the university re-engaged in discussions about a position. A second case involving a former employee alleging ADA and FMLA retaliation was moving forward after partial dismissal and an answer denying liability. A third case involved a former vendor employee alleging retaliation tied to a parking ticket; members asked about individual-capacity exposure for a university police sergeant, and counsel explained that punitive damages could potentially create personal exposure. The committee reviewed each report. The Department of Finance and Administration presented a proposed tax settlement reducing a sales-and-use tax assessment from about $48,000 to $20,000, with interest and penalties waived, and the committee approved it. The Claims Commission then presented several claims and settlements, including an unpaid salary differential for the Department of Health, reissued warrants, unpaid bills for DHS, and multiple negotiated settlements involving UAMS, Arkansas State Police, and ARDOT; these were generally approved or batched for approval. The most extensive discussion involved a settlement between the Teacher Retirement System and Tetronics International Limited in liquidation, arising from losses tied to the failed Blue Oak project; members questioned the company’s liquidation status, the prior investment loss, and why the matter was settling for $65,000, and the committee ultimately affirmed the settlement. The committee also heard a disputed tax-sale claim involving the Commissioner of State Lands, where a claimant argued that excess proceeds from a 2009 tax sale should have gone to her family rather than escheating to the county. After testimony from the claimant and counsel, members debated sovereign immunity, heirship, and whether the committee could or should award the $4,200 overage. The motion was amended and then replaced with a motion to hold the matter over for further review in a future joint session, which passed. Finally, the committee considered an appeal by Andrew Simpson challenging dismissal of his claim against the Arkansas Court of Appeals; after Simpson and court staff explained the underlying dispute, the committee reviewed the dismissal and the matter was held over for further consideration.

Transcript Highlights:

• I said, master settlement agreement?"
• </c> the tobacco settlement agreement fund. the tobacco settlement agreement fund.
• </c> things where the tobacco settlement things where the tobacco settlement dollars<00:41:01.760><c>
• </c> self-funded with the tobacco settlement self-funded with the tobacco settlement or<00:52:20.240>
• </c> cancer screening with tobacco settlement cancer screening with tobacco settlement funds?

Summary: The meeting opened with a quorum, approval of the September 18, 2025 minutes, and a staff update on recent tobacco settlement-funded agriculture activities. The agriculture side highlighted Commissioner Shell’s outreach, including school visits, farm visits, and speaking engagements in Kentucky and a trip to Tennessee to discuss program models. A representative also described a national conference in Iowa, where Kentucky’s agriculture finance program was praised as a $180 million loan program built with tobacco settlement funds. The board noted September approvals totaling $950,000 for the agriculture development board and $3.3 million for the finance corporation, along with staff activity such as site visits, program closures, and project reports. The board also announced that the KKMP report covering 2015-2022 would be distributed and that the annual report, marking the program’s 25th anniversary, was being prepared. The board then reviewed two featured projects. The Organic Association of Kentucky requested $425,000 for organic producer support, but the board approved only one year of funding at $29,000, with members noting concern about recurring applicants and the need to evaluate long-term funding. The second project, by Joseph Dale Bentley in Lewis County, sought $51,300 to expand a small ruminant facility for goat production and export. Members were particularly interested because the project was already operating and creating market opportunities for Kentucky goat producers; the board approved half the project cost to help expand infrastructure and potentially allow quarantining on site. The cabinet then presented its annual update on tobacco settlement fund use in public health. Julie Brooks, Sarah Johnson, and Andrea Day reported on the HANS home visitation program, tobacco prevention and cessation efforts, lung cancer screening, and early childhood oral health. HANS served more families in FY25, rising from 6,293 to 6,715, and increased services from 139,943 to over 143,000. Tobacco prevention and cessation programs continued to support Quit Now Kentucky and My Life, My Quit, though officials noted federal uncertainty and the loss of federal tobacco control infrastructure. They also reported a slight decline in student outreach and cessation requests, but continued demand from schools and communities for vaping and nicotine prevention support. Lung cancer screening expanded to 55 screens, with Kentucky cited as a model for other states due to improved incidence, survival, and early detection rates. Early oral health efforts continued through local health departments, with more trainings for public health nurses, continued varnish kits, and expanded support for dental graduates and hygiene teams.

Transcript Highlights:

• In the Shoshone Water Rights Settlement, there was a water bank included.
• A couple points on the settlement that brings us here today: everybody wins.
• So those are some of the high points about the settlement.
• So those are some of the high points about the settlement of Tribal reserved water rights.
• We've avoided another 10 years of litigation with this settlement.

Committee: House Resources and Conservation

Transcript Highlights:

• Well, it is a proposed settlement.
• The parties had reached a settlement.
• Does ATRS have an appropriation or a fund for settlements, separate for settlements or litigation damages
• She will agree to the party settlement.
• The item is a negotiated settlement agreement. Ms.

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT

Summary: The committee first reviewed litigation reports from the Department of Labor and Licensing involving wage claims brought under the Arkansas Minimum Wage Act. Members questioned the department’s authority, jurisdiction, use of attorney fees and costs, and whether defendants had to be licensed. The department explained it has long enforced wage and overtime laws, that the claims were small-dollar cases handled by investigators and counsel, and that one case had been paid and dismissed while others were unresolved or had service issues. The committee voted to review or batch-file the labor cases after discussion. The University of Arkansas System then reported three pending lawsuits: an age- and race-discrimination claim by a tenured professor that was resolved early; an ADA/FMLA retaliation claim by a former employee that survived in part on a motion to dismiss and was moving into discovery; and a Section 1983 claim against a UAMS sergeant arising from a parking-ticket dispute, with the university explaining that only punitive damages could create personal exposure for the officer. The committee reviewed each report and voted to accept them. The Department of Finance and Administration presented a proposed tax settlement reducing a sales-and-use tax assessment from about $48,000 to $20,000 and waiving interest and penalties, which the committee approved for review. The Claims Commission then presented several claims: an unpaid salary differential for a Department of Health employee, reissued warrants, unpaid DHS bills, and multiple negotiated settlements involving ATRS, UAMS, Arkansas State Police, and ARDOT. Members approved or affirmed most of these items, including a $65,000 settlement in the Tetronics/ATRS matter, a $150,000 medical-negligence settlement, and several vehicle-accident settlements. The most extended debate involved a tax-delinquent property sale claim by Sharon Greer and relatives. The claimant argued they were not properly notified and sought the $4,200 excess from the 2009 sale. Land Commissioner counsel explained the excess had escheated to the county after the statutory claim period expired, while members debated sovereign immunity, standing, heirs, and whether the committee could or should award money anyway. The committee ultimately chose to hold the matter over for further review in a future joint session rather than decide it immediately. The committee also heard appeals from dismissed claims, including a UAMS medical-negligence claim, a land-sale notice claim, a pothole claim against ARDOT, and a judicial-immunity claim against the Court of Appeals; most dismissals were affirmed, and the Simpson matter was held over for additional review after the claimant testified.

Transcript Highlights:

• </c> settlement fund statute. Okay. settlement fund statute. Okay.
• When choosing to participate in the settlement, I was hesitant to the settlement plan.
• </c> settlement fund. That's never happened. settlement fund. That's never happened.
• And then the settlement came in. Settlement fund, come on.
• And then the settlement came in. Settlement fund, come on.

Committee: Senate Judiciary

Transcript Highlights:

• that's else that's a true statement yes that's else that's a true statement yes that's true we can own patents
• mhm because they true we can own patents mhm because they true we can own patents mhm because they didn't
• were able to get the and do it and they were able to get the and do it and they were able to get the patent
• we weren't able to get the patent we weren't able to get the patent we weren't able to get the pattern

Bills: SB 26 , SB 28 , SJR 36 , SB 616 , SB 565 , SB 384 , SB 28 , SB 28 , SR 131 , SR 168 , SR 174 , SR 175

Transcript Highlights:

• </c> then yeah a big part of that settlement then yeah a big part of that settlement was<00:21:06.799
• Part of settlement for several reasons.
• </c> program you'll see how the settlement program you'll see how the settlement sort<00:26:55.120><c
• Um in the actually get to a settlement.
• </c> um noted to be um as of the settlement. um noted to be um as of the settlement.

Summary: The joint informational briefing focused on the Hawaii Department of Transportation’s work under the Navah settlement, which was described as a first-of-its-kind climate agreement tied to the state’s constitutional public trust and clean-environment obligations. Speakers said the settlement was intended to accelerate progress toward Hawaii’s 2030 and 2045 clean energy goals, especially by addressing transportation, the state’s largest source of greenhouse gas emissions. They emphasized that the agreement formalizes milestones, reduces dependence on changing administrations, and includes a role for the legislature alongside the courts and executive branch. DOT and Earthjustice representatives outlined the main settlement deliverables: creation of a new Office of Energy Security and Community Outreach, formation of a youth council, and development of an emissions reduction plan that will be updated over time. They also highlighted a new project-level greenhouse gas/VMT scoring tool, described as the first of its kind in the nation for DOT-wide use, to evaluate the climate impact of transportation projects. The presentation tied these efforts to prior legislative actions, including the state’s climate emergency declaration, net-zero/net-negative targets, and Act 131’s requirements for multimodal network planning and emissions reporting. A substantial portion of the briefing was devoted to the youth council, which reported 20 members selected from 83 applicants, representation from across the islands, and work on bylaws, committees, and outreach. Youth members described feedback they gave on the energy security plan, a student leadership summit presentation, and future plans to meet with legislators and participate in the Climate Future Forum. DOT also said the settlement’s transportation strategies include clean fuels, electrification, aviation sustainable aviation fuel, marine shore power, and carbon sequestration, including expanded native tree planting and fire mitigation work. No formal votes or legislative actions were taken during the briefing. Members discussed implementation challenges, including cost and supply constraints for aviation and marine decarbonization, but DOT said industry stakeholders were not rejecting the goals, only raising affordability and timing concerns. Officials also noted that a GIS map for network gaps was in development and that the settlement’s pedestrian, bike, and transit connectivity requirement would compress roughly 15 years of work into five years, with an estimated annual commitment of $40 million to $50 million.

Transcript Highlights:

• Then it's also the general fund, but if it's after, it's the YDC settlement fund.
• /c><00:06:31.680><c> the</c><00:06:31.880><c> the</c><00:06:32.000><c> YDC</c><00:06:32.880><c> settlement
• </c> it's after, it's the the YDC settlement it's after, it's the the YDC settlement fund. fund. fund
• </c> settlement fund. settlement fund.
• Bill 2 all along was that the property would be sold in '27 and the proceeds would go into the settlement

Summary: The committee of conference met on Senate Bill 481, which concerns the sale of the Sununu Youth Services Center property and where the proceeds should go. The main disagreement was between the Senate version, which would send proceeds to the general fund if the sale occurs before June 30, 2027 and to the YDC settlement fund afterward, and the House version, which would send all proceeds to the general fund. House members argued the property sale is uncertain in timing and value, and that keeping the money in the general fund preserves flexibility and follows common practice for state property sales. Senate members said the House language conflicted with the intent of House Bill 2, which directed the property to be sold in 2027 and the proceeds to the settlement fund, and they noted the Senate’s general fund language was likely left in inadvertently from an earlier appropriation structure. Members also discussed that the property is unique, potentially valuable, and may contain many buildings that could affect its sale and redevelopment. House members emphasized that victims’ settlement payments would still be funded through the established process and that the fiscal administrator would request whatever amount is needed. One member noted a direct conflict in House Bill 2 between sections referring to the general fund and to the settlement fund, and said the issue needed to be fixed. Another member observed that the relevant provisions may be session law and could become moot after June 30 of the following year. After a brief Senate caucus, the committee voted to adopt the House position on the conference committee report. The meeting then turned to procedural matters, including adding a third name to the bill, signing requirements, and a deadline for signatures by 4:00 p.m. the following Thursday. No further business was raised, and the committee adjourned.

Transcript Highlights:

• ><c> this</c><00:02:08.160><c> committee</c> settlement that I think this committee settlement that I
• </c> systems through these two settlements. systems through these two settlements.
• Um I do settlement uh or opt out of it.
• </c> the end of the settlement is in sight. the end of the settlement is in sight.
• </c><00:09:27.680><c> Chair</c> settlement? Commissioner uh Mr. Chair settlement?

Bills: HF333 , HF2712 , HF1064 , HF1069 , HF1113 , HF2207 , HF204 , HF2867 , HF2924 , HF746 , HF1530 , HF2587 , HF1078

Committee: House Capital Investment

Keywords: HF333, Duluth, Lot D, redevelopment, capital investment, bonding bill, state bonds, bond proceeds, public infrastructure, seawall repair, utility connections, demolition, debris removal, transportation improvements, site preparation, soil correction, economic development, DEED, capital appropriation, general obligation bonds

Transcript Highlights:

• ON FEBRUARY 2023, THE ATTORNEY SENT A LETTER TO LISTER AND DIAZ OUTLINING WHY THEY BELIEVE THE SETTLEMENT
• NOTABLY THE STATE REMOVED THE CLAIMS FROM FLORIDA HEALTHY KIDS FROM THE FINAL SETTLEMENT.
• THE LACK OF ANNOUNCEMENT IS NOT THE ONLY ASPECT OF THE SETTLEMENT THAT IS UNIQUE SOLELY TO FLORIDA AND
• AFTER REVIEWING OTHER STATE SETTLEMENT AGREEMENTS IT APPEARS THAT FLORIDA IS THE ONLY OTHER STATE TO
• DIRECT A PORTION OF THEIR SETTLEMENT AMOUNT TO A CHARITY.

Transcript Highlights:

• Well, it is a proposed settlement.
• Does the ATRS have an appropriation or a fund for settlements, separated for settlements, or litigation
• She will agree to the party settlement.
• She will agree to the party settlement.
• for the settlement amount.

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT

Transcript Highlights:

• OK, come, we will come to order for the tobacco Settlement Revenue and Oversight Committee. uh, the tobacco
• Settlement Revenue Oversight Committee have come to order.
• a long, you know, time, uh, and our follow-up of, um, as an oversight committee of the tobacco settlement
• You know, are being assessed if they're going to stay with the main settlement or what plans they have
• So the disposition of these funds year to year is completely dependent on What that settlement number

Committee: House Tobacco Settlement Revenue Oversight Committee

Transcript Highlights:

• If there are delinquent payments, the insurer will withhold that amount from the settlement and send
• , there's no process in place for DCFS to learn about that settlement.
• DCFS to learn about that settlement and to make sure that the late child support is considered and that
• what's in arrears is deducted from the settlement.
• Watkins answer that, but I think they're not capturing a big portion of those settlements.

Committee: House Insurance

Summary: The House Insurance Committee met on April 14 with a quorum present and first deferred Senate Bill 241 to the following week. The committee then took up House Bill 1117, which would clarify that an insurer’s payment on a first-party claim does not restart the two-year prescriptive period for filing suit. The sponsor said the bill responds to a Louisiana Supreme Court decision and is intended to restore a fixed deadline from the date of loss. Testimony from the Department of Insurance and industry representatives was generally supportive, and members discussed whether policyholders could be confused by partial payments and whether insurers have any duty to warn them about prescription. Representative Glorioso moved the bill favorably, and it was reported favorable without objection. The committee next considered House Bill 943, which creates a process for insurers to check for delinquent child support before issuing certain settlement payments and to withhold and remit arrears to DCFS. The committee adopted a substitute bill and then a committee amendment narrowing the scope by removing annuities and life insurance beneficiaries from the definition of covered recipients. The sponsor described the measure as a tool to help children receive overdue support, and DCFS said Louisiana currently lacks a legal mechanism to capture some settlement payouts owed by noncustodial parents. Members discussed how the bill differs from existing child support liens and whether it would close gaps in current enforcement. The transcript cuts off during that discussion, before any final vote on House Bill 943 is shown.

Transcript Highlights:

• </c> settlement, general funds, restricted settlement, general funds, restricted funds,<00:02:55.760>
• </c> of where and how tobacco settlement of where and how tobacco settlement agreement<00:03:22.640><
• </c><00:05:11.840><c> funds</c> we've used the tobacco settlement funds we've used the tobacco settlement
• </c> and this matters with the settlement and this matters with the settlement funds<00:10:26.160><c>
• </c> with just with tobacco settlement money. with just with tobacco settlement money.

Summary: The Tobacco Settlement Agreement Fund Oversight Committee met to review how tobacco settlement dollars are being used and to press recipients for detailed information on total funding, administrative versus program spending, and measurable outcomes. The chair emphasized that the committee was not there for general program overviews, but to assess return on investment and whether each program should continue to receive tobacco settlement support. The committee approved the minutes from its December 22, 2025 meeting and then heard presentations from several agencies and organizations. Volunteers of America Mid-States described its southeastern Kentucky restorative justice program, which uses an evidence-based New Zealand model for juvenile cases in nine counties. The group reported tobacco settlement funding of $516,000 in FY24 and $233,500 in FY25, representing about 17% and then about 5% of the program budget, respectively. It said the funding helped expand the program from 13 cases in 2021 to 180 youth served, and cited an independent evaluation showing recidivism of 24.5% compared with 40.4% in AOC data, along with a cost of a little under $20 per day versus detention and other placements. Some members questioned whether the program fit the tobacco settlement funding categories and suggested it might be better supported through other justice-related funding sources. The Energy and Environment Cabinet’s Division of Conservation explained that tobacco funds support $1 million in direct aid to conservation districts and $2 million in cost-share projects for farmers, with 5% of the cost-share appropriation allowed for administration, or about $100,000 in FY26. Officials said the direct-aid line was moved into tobacco funding in 2019, reducing money available for farmer cost-share, and described a multi-year project approval and reallocation process. Senator Webb asked for a more specific breakdown of the $850,000 direct-aid amount, and the cabinet said it would provide that information. The Kentucky Office of Drug Control Policy reported that in FY24 it expended just under $30 million across tobacco funds, general funds, restricted funds, and a one-time federal grant, with less than 2% used for administration. Officials said most tobacco settlement money goes to Kentucky ASAP local boards in all 120 counties, supporting prevention, treatment, and some law enforcement work. The Department of Agriculture then began its presentation, describing strategic investments, loan programs, county funding, administrative costs, and a reported return of about $2.30 for every dollar spent, but the transcript cuts off before that presentation was completed.

Transcript Highlights:

• We do make hospital access payments and cost settlements.
• We do make hospital access payments and cost settlements.
• Our cost settlements is $248 million.
• In SFY 2025, DHS paid $72 million in inpatient cost settlements and $176 million in outpatient cost settlements
• I might have missed it, but what is a cost settlement? Thank you for the question. Cost settlement.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The subcommittee met to review Arkansas DHS hospital spending and reimbursement methods, with Secretary Janet Mann and Deputy Secretary Misty Eubanks explaining Medicaid hospital payments. They described fee-for-service per diem payments, cost settlements, and the upper payment limit (UPL) program, noting that SFY 2025 hospital payments included $688 million in inpatient/outpatient claims, $473 million in UPL payments, $248 million in cost settlements, and about $47 million in other payments such as graduate medical education and disproportionate share hospital funds. Members asked about why per diem rates vary, how cost settlements work, why UPL applies mainly to private hospitals, and how assessment fees are structured and funded. DHS said the hospital assessment fee is broad-based and uniform, used as the state share to draw federal funds, and that supplemental hospital payments after federal match totaled $548 million with no general revenue used. The Arkansas Hospital Association’s Jody Ann Tritt then gave a broader overview of the hospital landscape, explaining the different hospital types in the state, including critical access hospitals, rural emergency hospitals, PPS hospitals, and specialty hospitals. She said Arkansas hospitals face financial strain, citing a negative 5.18% patient service margin statewide and lower reimbursement than surrounding states. She argued that Arkansas hospitals are paid less than hospitals in neighboring states for similar services, that commercial payer rates and administrative burdens are a major problem, and that Medicaid and Medicare rates remain below cost even with UPL support. She also said hospitals are the backbone of community care, provide emergency and public health functions, and are looking for ways to invest in technology and telehealth but often lack the revenue to do so. Members pressed for clearer data on hospital finances, reimbursement adequacy, and the impact of commercial insurers. Tritt said the association had just authorized a statewide survey to gather updated financial information from hospitals, which she said would take about a year to complete. She also explained that Medicaid pays weekly, Medicare and commercial plans can involve delays and denials, and that hospitals often spend significant resources on revenue cycle work. The discussion ended with a brief update on assisted living reimbursement: DHS said one facility, The Pillars of the Community in Crossett, had announced closure, nine Living Choices waiver clients were being transitioned, and the updated rate study would be available after cost reports are collected, likely before the end of the fiscal year. The meeting then adjourned.

Transcript Highlights:

• Now, the committee's recommendation is contingent on the appropriation of the opioid settlement funds
• Contingent on the appropriation of the opioid settlement funds of just over $5.8 million, the committee
• It's a mix of Millennium Funds and state-directed opioid settlement funds, as well as appropriation for
• The next item before the committee is language on the use of the opioid settlement fund.
• “Provisions in the opioid settlement agreements allow the state to use a limited percentage of settlement

Summary: The joint Senate Finance and House Appropriations committee considered several trailer appropriations and related language items. It approved $200,000 ongoing for the Idaho Department of Correction tied to House Bill 684, which allows sheriffs to seek reimbursement for costs of collecting absconders from out of state, and approved $63,000 ongoing for the Idaho State Police under Senate Bill 1226 to cover DNA sample and thumbprint collection for certain misdemeanor offenses. The committee also reconsidered the Secretary of State budget after House Bill 909 failed on the floor, and passed an amended FY 2027 budget with a $235,800 general fund increase, including a one-time $350,000 voter pamphlet appropriation, a $20,000 transfer from operating to personnel, and a 2% base reduction. A major portion of the meeting focused on restoring behavioral health programs in the Department of Health and Welfare using one-time Millennium Income Fund and opioid settlement dollars. Analysts outlined options to restore ACT, peer support, skills training, transportation, partial hospital, and early serious mental illness programs. The committee first rejected a broader restoration package, then approved a narrower FY 2027 package restoring only assertive community treatment and peer support services with $4.619 million from the Millennium Fund, $5.555 million from the opioid settlement fund, and $20.525 million in federal funds. It also approved $250,000 from the opioid settlement fund for peer support services in mental health courts and adopted language directing the department to identify savings for future funding needs, though a broader language motion failed. The committee then approved a FY 2026 supplemental of $200,000 for the Legislature to hire a consultant for the Medicaid Legislative Review Panel under HCR 30, despite objections that it duplicated work already being done by the Department of Health and Welfare’s consultant. Members also discussed that the one-time behavioral health funding would only carry programs through FY 2027 and may require general fund support later. The committee adjourned after announcing it would likely meet again Wednesday to handle year-end transfers, remaining trailer bills, and other pending budget items.

Transcript Highlights:

• He had over $16 million in settlements paid out.
• The hospital settlement counts have almost tripled since 2021, and the settlement amounts have more than
• The provider settlement counts have been more stable, but since 2023, the settlement amounts have more
• The total settlements were $3 million then; they're $58 million now, and the average settlements have
• And page 12 says all of these showing in 2024, settlement counts going up and settlement amounts up.

Bills: SB41 , SB153 , SB165 , SB261 , SB264 , HB99 , HJR5 , HM39 , HB206 , HB213 , SB41 , SB153 , SB165 , SB261 , SB264

Committees: Senate Senate Judiciary , Senate House Judiciary

Keywords: sexual crimes, statute of limitations, criminal justice, victim rights, child abuse, procurement, contracting, small business, local government, disaster recovery, emergency procurement, certification, public spending, juvenile justice, delinquency, rehabilitation, community corrections, risk assessment, public safety, health regulations

Transcript Highlights:

• The hospital settlement counts have almost tripled since 2021, and the settlement amounts have more than
• The provider settlement counts have been more stable, but since 2023, the settlement amounts have more
• Just the costs, not the settlements.
• Just the costs, not the settlements.
• And page 12 says all of these showing in 2024, settlement counts going up and settlement amounts up.

Bills: HB99 , HJR5 , HM39 , HB206 , HB213 , SB41 , SB153 , SB165 , SB261 , SB264

Committee: Senate House Judiciary

Summary: The committee first took up a lengthy informational presentation on the Patient Compensation Fund (PCF) and New Mexico medical malpractice insurance. Teresa Hassey, a plaintiffs’ attorney, described the PCF’s origin in the 1976 Medical Malpractice Act, its role as a state-backed excess coverage system, and her view that it was mismanaged when hospital participation expanded without individualized risk assessments. She argued that hospitals underpaid surcharges, that the fund was depleted by claims, and that the 2021 amendments and later legislative infusions were meant to shore up deficits and phase hospitals out. Superintendent of Insurance Alice Kane and LFC analyst Julia Rodriguez presented a different perspective, emphasizing recent general fund infusions, current surcharge collections, the use of actuarial reviews, and the PCF’s budget and settlement activity. Kane said the market is highly concentrated, New Mexico’s malpractice costs and defense expenses are high, and the fund still provides lower-cost coverage than the open market, while also noting ongoing issues with future medical claims, TPA transition, and investment management. Committee members questioned the presenters at length about why New Mexico malpractice premiums are so high, whether defense costs were being conflated with claim payouts, how the PCF works with primary coverage and excess coverage, and whether hospitals were properly assessed when they entered the fund. Several senators raised concerns about punitive damages, corporate practice of medicine, and whether the state’s legal environment is driving doctors away. Others challenged the data comparisons, noting differences between one-year figures and multi-year averages, and asked why New Mexico’s costs remain far above neighboring states. Kane and Hassey disagreed on the causes, with Kane pointing to high claims and defense costs over time and Hassey arguing that hospital participation and punitive-damage exposure distorted the market. The chair concluded the discussion by saying the committee had not exhausted the topic and that he still wanted a clear path to reducing doctors’ insurance costs. After a break, the committee moved on to Senate Bill 41. Senator Charlie introduced the bill, which would eliminate the statute of limitations for the most serious sexual crimes in New Mexico. He argued that trauma, coercion, fear, and delayed disclosure often prevent survivors from reporting promptly, and said the law should reflect that reality. The bill was presented as a response to survivor testimony heard in a prior hearing, and the sponsor framed it as part of a broader effort to modernize the justice system for sexual violence cases.

Transcript Highlights:

• Slide number 6 shows a list of the settlements since uh since 2000.
• Um, these are the settlements that ONRT has reached, 14 settlements over 22 years, um, and, um, just
• , then how does that, is there has to be another settlement, or is the settlement open to, we thought
• Um, again, the Tronox settlements are really on the remediation side.
• Um, and I thought we, we came close to a settlement.

Committee: House Radioactive & Hazardous Materials Committee

Transcript Highlights:

• I've listed the settlements that have been reached in the state of New Mexico by ONRT over the last 20
• Arco Settlement, again, a map of where these projects took place.
• There was some funding Left over from both the ATSF settlement and the GE settlements when I came into
• Page 22 includes projects that were funded through a settlement with the ATSF and Clovis.
• So we have not had a statewide settlement. For water.