Transcript Highlights:

• Madam Chair, members of the committee, for the record, my name is Bass AHA, representing the Arizona Cattle
• Chairwoman, members of the committee for the record, my name is Bass AHA, representing the Arizona Cattle

Bills: HB2099, HB2263, HB2264, HB2330, HB2341, HB2492, HB2757, HB2782, HB2843, HB2889, HB2912, HB2915, HB2918, HB4025, HB4100, HCR2020, HCR2057

Keywords: water storage, long-term storage credits, groundwater management, drought contingency, Arizona water regulations, Colorado River, replenishment, groundwater savings facility, groundwater storage, underground water storage, active management area, irrigation non-expansion area, Arizona water law, water rights, water replenishment, recharge, water conservation district, multi-county water conservation district, CAP water, Central Arizona Project

Summary: The committee heard a series of water, energy, housing, and environmental bills, with several measures amended before passage. House Bill 2099, as amended, would limit long-term storage credits and related CAP water storage during declared Colorado River shortages; water utilities, CAP, Phoenix, and other water interests raised concerns about flexibility, contracts, and the law of the river, while the sponsor said the bill was intended to address shortage conditions. The committee adopted the Griffin amendment and passed the bill 6-3. House Bill 2263, also amended, would restrict where Colorado River water diverted for replenishment in an AMA may be stored; CAP, tribal counsel, and AMWA opposed it as too restrictive and potentially excluding existing facilities, but the bill passed 6-3 after amendment. House Bill 2264, requiring the University of Arizona to promote Arizona history and the five Cs through the mining museum, passed unanimously. House Bill 2330 and House Bill 2341, both concerning certificates of environmental compatibility for energy projects, passed 6-3 after amendments expanding siting factors to include character of an area and known off-takers, respectively. House Bill 2918, which would end certain tax benefits for renewable energy and storage equipment after 2026, also passed 6-3. House Bill 2889, appropriating $1 million for uranium contamination monitoring and a statewide registry with tribal epidemiology partnerships, passed unanimously after discussion about moving the program to ADEQ and adjusting the reporting date. House Bill 2492, which would bar state and local urban growth boundaries that prevent new development, passed narrowly 4-3 with one present and two absent. House Bill 2782, focused on utility rate transparency and regulatory assets, passed 5-3 after a late amendment and a motion to suspend committee rules for amendment distribution. House Bill 4025, creating a study committee on gasoline and petroleum refineries, passed 6-3, and HCR 2057 supporting a geothermal permitting roadmap passed unanimously. HCR 2020, supporting housing developments outside designated service areas under certain groundwater conditions, passed 6-2. House Bill 4100, requiring notice to customers about potential water-rate increases if CAP water is lost, drew concerns about public confusion and negotiation impacts; testimony from municipal water users opposed the bill as too speculative and difficult to implement, and the transcript ends while that bill is still under discussion.

Bills: SB 1036, SB 1566, SB 1664, SB 2268, SCR 5, SCR 8, SCR 9, SCR 32, SCR 46

Keywords: residential solar, solar retailer, solar salesperson, solar panel sales, solar lease, solar installation, renewable energy, clean energy, consumer protection, deceptive sales, door-to-door solicitation, occupational registration, TDLR, Texas Department of Licensing and Regulation, Texas Commission of Licensing and Regulation, Public Utility Commission, electrical contractor, interconnection, net metering, Truth in Lending Act

Bills: SB1036, SB1566, SB1664, SB2268, SCR5, SCR8, SCR9, SCR32, SCR46

Keywords: residential solar, solar retailer, solar salesperson, solar panel sales, solar lease, solar installation, renewable energy, clean energy, consumer protection, deceptive sales, door-to-door solicitation, occupational registration, TDLR, Texas Department of Licensing and Regulation, Texas Commission of Licensing and Regulation, Public Utility Commission, electrical contractor, interconnection, net metering, Truth in Lending Act

Transcript Highlights:

• time as a county supervisor to being a voice for my constituents, generations of families, farmers, cattle

Bills: HB2014, HB2031, HB2078, HB2102, HB2103, HB2117, HB2261, HB2262, HB2264, HB2278, HB2428, HB2494, HB2756, HB2758, HB2762, HB2782, HB2932, HB2933, HB2986

Keywords: air emissions, fuel blends, environmental quality, feasibility study, Arizona Department of Agriculture, water rights, groundwater, Willcox, active management area, certificate of grandfathered rights, Arizona legislature, aggregate mining, reclamation plans, environmental protection, public safety, land use, domestic water, improvement district, water delivery, water hauling

Summary: The committee began with an informational presentation from Gordon Shemp of Nemecu Analytics on Arizona transportation fuel supply and pricing. He explained that Arizona sits at the end of the pipeline system, relies on limited terminal inventories, and can experience only about a seven-day fuel supply if pipelines are disrupted. He attributed recent price spikes to constrained pipeline capacity, Kinder Morgan pressure reductions after PHMSA anomaly reviews, and recovering demand, and he also discussed California refinery closures, increased imports from overseas, and proposed new pipeline capacity into Phoenix from the east. Committee members asked about fuel formulations and pipeline logistics, and Shemp said the proposed project would not change fuel specifications, only transport capacity. The committee then took up House Bill 2758, which would allow eligible entities in La Paz County’s McMullen Valley groundwater basin to transport groundwater to AMAs under specified limits and conditions, with related provisions on fees, districts, and water improvement programs. Supporters, including Stan Barnes, Jim Downing, and Barry Arons, argued the bill follows the Harquahala model, provides needed augmentation for urban Arizona, and includes local benefits and guardrails. Opponents, including La Paz County Supervisor Holly Irwin, Devonna Sater, and Ed Curry, said the bill would worsen groundwater decline, subsidence, and well failures in Salome and Wenden and favored outside investors over rural residents. After debate, the committee approved HB 2758 on a 4-3 vote. The committee also heard and advanced several other water-related bills. HB 2031, extending the deadline to apply for grandfathered groundwater rights in the Wilcox AMA from 15 to 27 months, passed 5-2 after some members said the extension was unnecessary and would delay protections. HB 2102, allowing county improvement districts in subsequent AMAs or groundwater transportation basins to use eminent domain for a well and standpipe site and water hauling, passed 4-3 after Sierra Club testimony called it a limited “band-aid” rather than a real solution. HB 2103, which would let water improvement programs accept gifts and dedicate groundwater transportation fee revenue to local residential water hauling and delivery, also passed 4-3. HB 2117, a technical cleanup bill shifting Environmental Special Plate Fund administration to the Natural Resource Conservation Board and raising education-center distributions from $5,000 to $10,000, passed 5-2 despite concerns about the fund’s administration. The committee then considered HB 2261, which changes agricultural property tax terminology and valuation rules. County assessors and the Arizona Association of Counties opposed it, warning it would effectively exempt many agricultural improvements from taxation and shift costs to residential taxpayers; the Arizona Farm Bureau supported it as a clarification that would provide certainty for agriculture. The bill passed 4-3. Finally, HB 2262, transferring the Resource Analysis Division from the State Land Department to the Arizona Geological Survey and revising geospatial advisory responsibilities, was introduced, with State Land Department staff saying they were neutral but noting the bill would need clearer statutory duties if RAD is removed.

Transcript Highlights:

• Importing live cattle does.
• , these might be Central American cattle, but these are not cattle that are born and raised in Sonora
• So when we talk about a larva crossing on live cattle, larva will not cross on cattle.
• So when we talk about a larva crossing on live cattle, larva will not cross on cattle.
• feedlots in Arizona that would try to acquire Mexican cattle because it's hard for them to find cattle

Keywords: 1182, all

Summary: The House Committee on International Trade held its first meeting of the year, with members introducing themselves and the chair emphasizing Arizona’s role in foreign relations, especially with Mexico. The committee then heard presentations from the Nogales-Santa Cruz County Chamber of Commerce and related local partners about the region’s importance as a trade, tourism, agriculture, logistics, and mining corridor. Chamber representatives described efforts to support small businesses with bilingual resources, digital and procurement assistance, entrepreneurship training, Google certificates, and workforce development tied to the South32 mine and other emerging industries. They also highlighted tourism promotion efforts to counter negative perceptions of Nogales, noting increased online engagement and stronger visitor activity. Members asked about state and federal improvements that could help trade, and witnesses said the top needs were infrastructure upgrades, especially roads and port-of-entry access, along with more pedestrian-friendly crossings and housing to retain workers. The Santa Cruz County Provisional Community College District described its unusual provisional status, its contract with Pima College, and the challenge of limited spending authority despite expected revenue growth from mining. The college said it is expanding workforce training, especially in AI, advanced manufacturing, trades, and ESL support, and is working toward eventual accreditation. The committee also heard from cattle industry representatives from Cattlemex, T4 Ranch, and J.M. Fletcher Cattle Co. They urged the reopening of the U.S.-Mexico border to live cattle imports, arguing that Sonoran cattle are safe, traceable, and vital to Arizona’s economy and the national beef supply. Witnesses said the New World screwworm-related border closure has reduced imports, raised beef prices, hurt feedlots and packing plants, and shifted cattle trade to other states. They asked lawmakers to advocate with USDA for a Sonora-specific reopening and to support Arizona’s livestock infrastructure and grazing lands. No bills were heard and no votes were taken.

Transcript Highlights:

• Additionally, we have our cattle fever tick inspectors who deal with the cattle fever tick eradication
• What does that do to our cattle industry?
• as cattle feeders throughout the country.
• If you look at the numbers of cattle that the Mexican cattle trade equates to, that's essentially the
• If we're quarantined and can't have a weekly sale or move the cattle auction, I mean the cattle... you

Keywords: 1184, house, all

Transcript Highlights:

• Our, uh, cattle fever tick, our inspectors that deal with the cattle fever tick eradication program on
• The protocol that's there really is intended to prevent cattle from cattle from bringing the fly across
• Texas Cattle Feeders Association represents feed yards in Texas, Oklahoma, and New Mexico, and then cattle
• If you look at the numbers of cattle that the Mexican cattle trade equates to, that's essentially the
• Have a weekly sale or move the cattle auction. I mean the cattle, you know, I, I don't know.

Transcript Highlights:

• cattle for infestations.
• Those cattle are, I think the last one, one cattle of a batch of about 83 animals.
• feeder cattle, and raised those cattle under our care and feeding practices to produce an additional
• In conclusion, as cattle feeders, our goal is to grow the cattle and beef industry in the U.S. and to
• In conclusion, as cattle feeders, our goal is to grow the cattle and beef industry in the U.S. and to

Summary: The joint hearing focused on preparedness for the New World screwworm threat and brought together the House Committees on Culture, Recreation, and Tourism and Agriculture and Livestock. USDA officials, Texas Department of Agriculture Commissioner Sid Miller, and Texas Animal Health Commission leadership described the pest as a serious risk to livestock, wildlife, rural economies, and beef prices, and emphasized coordination among federal, state, industry, and Mexican partners. Witnesses repeatedly stressed that Texas is currently seeing no confirmed U.S. detections, but that recent confirmed cases in northern Mexico, including Nuevo León, remain a concern because of their proximity to the border. USDA testimony outlined current surveillance and response efforts, including more than 120 screw worm-specific traps along the Texas border and neighboring states, thousands of additional dual-purpose traps, wildlife inspections, weekly coordination with Mexico’s Senasica, and a new USDA New World Screwworm Directorate. Officials said the existing Panama sterile fly facility is maxed out at about 100 million flies per week, while a dispersal facility in Tampico is helping move flies farther north in Mexico. They also described plans for a retrofitted sterile fly facility in Metapa, Mexico, expected to come online in 2026, and a new domestic production facility at Moore Air Base, with phase one targeted for late 2026 or early 2027 and phase two adding substantially more capacity later. Members pressed USDA on timelines, production capacity, the reliability of Mexican reporting, the risk from wildlife, and whether modular or mobile facilities could be deployed faster. USDA said it is also exploring innovative technologies, including a genetically engineered sterile male fly, but that such tools still require EPA review and field validation. Commissioner Miller highlighted Texas biosecurity efforts, five permanent inspection stations, cooperation with FDA and EPA on treatments such as Exzolt, and other pest issues affecting Texas agriculture. He also noted research into fly bait and private-sector efforts to speed sterile fly production. Texas Animal Health Commission officials described extensive state preparedness work, including weekly coordination calls, field response trainings, outreach to producers and veterinarians, and a Texas Screwworm Response Team. They said Texas has trained more than 100 inspectors and other personnel, with additional trainings planned, and that the state is expanding its cattle fever tick rider program. No votes or formal committee actions were taken during the hearing; the main action was the exchange of testimony and questions about readiness, surveillance, and facility timelines.

Transcript Highlights:

• cattle for, you know, infestations.
• Cattle are, I think the last one was one cattle of a batch of about. 80, 83 animals, and that one animal
• The FDA has approved dormectin for cattle.
• And they're only labeled for cattle.
• For decades, U.S. cattle producers have imported USDA APHIS veterinarian inspected Mexican feeder cattle

Keywords: 1184, house, all

Transcript Highlights:

• Uh, the cattle in Mexico are endemic, uh, with this, and we are trying to, um, keep the naive cattle
• So, um, the tick—this cattle fever tick—spreads this disease to other cattle.
• , uh, more susceptible cattle that have not been exposed to it, uh, and those cattle can become, um,
• We haven't seen the cattle dying from it.
• So is there not, you know, you mentioned, you know, how you treat the cattle ticks and for cattle fever

Summary: The committee met with a quorum present to hear Article VI Natural Resources agency budget recommendations, beginning with the Railroad Commission. LBB staff summarized the commission’s 2026-27 base recommendation at $458.7 million, down from the prior biennium, with an increased FTE cap. The presentation highlighted reduced federal IIJA funding, volatility in oil and gas regulation account 5155, continued support for IT modernization, and rider changes. The commission’s major exceptional items were then presented, including requests for produced water and injection data reporting, an authorized pit registration system, regulatory filing/permitting upgrades, an underground injection well investigation team, site remediation support, and especially $100 million for orphan well plugging. Members asked about biennium-to-biennium comparisons, salary biennialization, the scale of orphan well risks, federal funding delays, bonding, and whether the state should rely more on industry or general revenue for plugging costs. Commission leadership explained that orphan wells can threaten water and public safety, that plugging costs have risen sharply, and that current funding is insufficient to keep up with emergency wells and the backlog; they also said the agency is moving to cloud-based systems with cybersecurity protections and that the proposed performance measure may need adjustment if funding does not increase. The Railroad Commission testimony was followed by LBB and agency testimony for the Texas Animal Health Commission. LBB described a $42 million recommendation for 2026-27, an increase overall, but with a reduced FTE cap due to turnover and salary reallocation. The recommendation maintained funding for cattle fever tick work, chronic wasting disease, lab testing through an MOU with Texas A&M’s veterinary diagnostic lab, and a new $5 million spay-and-neuter pilot program, while deleting a capital budget rider and adjusting riders tied to entry point inspection stations and clinical trials. Agency leadership then outlined the commission’s mission to protect livestock health and the state’s $22 billion animal industry, and described major disease threats including highly pathogenic avian influenza, cattle fever ticks, New World screwworm, and chronic wasting disease. Their exceptional items focused on recruiting and retaining veterinarians, replacing fleet vehicles, creating an ectoparasite identification lab, adding field staff and IT support, improving records and epidemiology reporting, strengthening central administration, supporting secure food supply planning, expanding chronic wasting disease work, and staffing the new spay-and-neuter program. Members asked about field identification of ticks, the use of disinfectants and PPE, fleet management, the scale of cattle fever tick risk, and chronic wasting disease; the agency explained its current inspection and lab-confirmation process, its reliance on field disinfecting and biosecurity, and the need for more staff and better data systems to keep pace with growing workloads and disease threats.

Transcript Highlights:

• You know, in high-priced cattle prices, that's nothing.
• We get 15% of our cattle, our feeder cattle, in from Mexico.
• So we've got to keep those cattle back in Mexico.
• I'm a cattle producer from College Station, Texas.
• Ochre cattle, and then those cattle are sent north.

Keywords: 997, house, all

Transcript Highlights:

• You know, half price cattle prices, that's nothing.
• We, we get 15% of our cattle, our feeder cattle in. From Mexico.
• So we've got to keep those cattle back in Mexico.
• So if a truckload of cattle comes in, uh, they can inspect the cattle, you know, do you have a health
• They, you know, cut down a lot of the forest, turned out stocker cattle and, and then those cattle are

Transcript Highlights:

• in a more to feed out their cattle in a more meaningful<00:10:40.560> way<00:10:40.959> to
• Your feedstock to be able to feed those cattle in an easy fashion.
• most major players in the beef cattle most major players in the beef cattle production<00:15:06.000
• that if we can prove we can feed cattle that if we can prove we can feed cattle here<00:16:00.120
• Around our cattle industry, and any opportunity that we have in farming around our cattle industry, Eastern

Keywords: 958, all

Summary: The committee heard extended testimony from Agriculture Commissioner Jonathan Shell and several senators about using agriculture economic development funds to make Kentucky farms more profitable and attract related businesses. Discussion focused on expanding markets for corn, soybeans, beef, dairy, and other products through biofuels, sustainable aviation fuel, feedlots, processing plants, transportation, and other infrastructure that would keep more value in-state. Members also discussed the profitability pressures on farmers, high land prices, and the need for small-farm support and aggregation programs such as Kentucky Proud, BCAL, KOAP, CAP, food-is-medicine efforts, LFPA, and farm-to-school initiatives. Senators raised specific ideas and concerns, including raw milk and food-freedom innovation, support for 5-acre and other small farms, and the possibility of a beef processing plant in Kentucky. Shell said raw milk testing is not currently a department function but could be explored with legislative direction, and he emphasized that Kentucky must first prove it can feed cattle at scale before a processor is likely to locate here. He also argued that changing conditions in the West and Midwest, including water limits, workforce shortages, and regulatory pressure, could make Kentucky increasingly competitive for beef processing and feedlot operations. Several senators shared personal farming experiences to underscore the difficulty of making a living in agriculture and the need for off-farm income or value-added businesses. They cited examples such as grain storage, dairy products, chicken and hog operations, and restaurant or rental income supporting farm operations. Commissioner Shell said the fund is intended to fill gaps and attract businesses that need Kentucky agricultural products, creating premium markets and more local jobs. After questions concluded, the committee took up the bill, with a motion by Senator Richardson and a second by Senator Nunn. The roll call was taken, and the bill passed unanimously. The committee then moved to adjourn.

Transcript Highlights:

• Our nine-member board of directors is three cattle growers, three cattle feeders, and three dairymen
• These dollars are paid by the seller of the cattle.
• Just for clarification, it's $1 for cattle, correct? That is sold in the market?
• I support our cattle growers, but I... ...that get utilized in the cattle industry.
• Is there insurance for cattle, or are cattle insured? There are different insurance programs.

Bills: HB2155, HB2156, HB2162, HB2762, HB2791

Keywords: Arizona Beef Council, agriculture, market development, beef products, terminating council, livestock, compensation, funding, ranching, game and fish commission, wildlife, appointment, commission membership, Arizona Revised Statutes, food labeling, cultivated cells, cell-cultured products, consumer information, food safety, cell-cultured protein

Summary: The House Committee on Land, Agriculture, and Rural Affairs met for its first session, with members and staff introducing themselves before taking up committee-of-reference business and several bills. The committee first heard a presentation from the Arizona Beef Council, which described its checkoff-funded promotion, education, and research work for Arizona beef producers, including classroom materials, nutrition outreach, and ranch tours. After questions about how the program is funded and whether the state would lose its Arizona-retained share if the council were not continued, the committee voted to recommend continuing the council for eight years, until July 1, 2034. The committee then considered HB 2155, which also continued the Arizona Beef Council for eight years, and advanced it on a 7-1 vote. HB 2156, which appropriates money to the livestock compensation fund for wolf depredation losses, was amended to set the appropriation at $250,000 from the general fund in fiscal year 2027 and then passed 5-2, with supporters emphasizing rancher compensation and opponents questioning use of general funds and noting unused prior funding. HB 2162, which would require at least one Arizona Game and Fish Commission member to be a cattleman or rancher, drew testimony for and against but was ultimately held by the chair after discussion about representation, existing appointment structures, and rural interests. The committee also advanced two cell-cultured protein bills. HB 2762 would require a disclaimer on packaging for food derived from cultivated cells; supporters argued for consumer transparency and opponents said federal labeling rules already apply and state-specific requirements could create confusion. It passed 5-3. HB 2791 would prohibit the sale of cell-cultured protein for human consumption and make violations a felony; supporters raised safety, innovation, and agricultural concerns, while opponents argued it would criminalize federally approved products and restrict consumer choice. That bill also passed 5-3. The committee adjourned after completing its agenda.

Transcript Highlights:

• And so when they find the cattle that's infected, they treat the cattle.
• not limited to the Texas Southwestern Cattle Raisers, the Texas Farm Bureau, the Texas Cattle Feeders
• “So, you know, cattle that are in the systematic zone or have to deal with the cattle fever tick eradication
• cattle rancher.
• A lot of feeder cattle come out of Florida. And goats, yes; for cattle, not so much the case.

Keywords: 1184, house, all

Transcript Highlights:

• The illness in cattle, however, remained a mystery.
• Uh, we feed cattle from every state in the United States, plus cattle from Mexico and Canada.
• All cattle are grass-fed, but the majority of cattle are grain finished.
• cross cattle.
• , um, dairy cattle to dairy cattle through mechanical means.

Bills: HB294

Keywords: energy efficiency, tax exemption, residential properties, sustainability, real estate

Transcript Highlights:

• I think Senator Fischer knows a little bit about cattle. Mr.
• Since 1984. for while feeding his own cattle since 1980.
• Overall, I am pleased to report that the state of the cattle industry is strong.
• Strong cattle prices and beef demand have made the marketing environment for cattle better than virtually
• So will you please elaborate on the burden of the death tax in U.S. cattle operations?

Keywords: agriculture, avian flu, bipartisan farm bill, economic challenges, poultry, dairy, specialty crops

Summary: The committee meeting focused on crucial discussions surrounding the challenges faced by the agriculture sector, particularly concerning avian flu and its impact on poultry and dairy producers. Members provided insights into the economic struggles within the industry, emphasizing the need for a new bipartisan farm bill that addresses the diverse needs of specialty crop and livestock producers. Witnesses from various agricultural sectors spoke about their experiences, illustrating the high costs, regulatory burdens, and emerging diseases that threaten their operations. The meeting underscored a commitment to exploring solutions that will help maintain market stability and ensure food security.

Transcript Highlights:

• I represent Arizona's beef farmers, cattle ranchers, and dairy farmers as the executive director.
• I represent Arizona's beef farmers, cattle ranchers, and dairy farmers as the executive director.
• Our nine-member board of directors of three cattle growers, three cattle feeders, and three dairymen
• These men and women who raise cattle and beef in Arizona develop an annual marketing plan and budget
• in Arizona, and these dollars are paid by the seller of the cattle, referred to as checkoff dollars.

Keywords: 1182, all

Summary: The Senate Natural Resources Committee of Reference met to conduct the sunset review of the Arizona Beef Council. Lauren Mailing, the council’s executive director, testified in support of continuation, describing the council as a state-created, industry-funded organization that promotes, educates, and conducts research for Arizona beef producers. She explained that the council is financed through the federal beef checkoff program, with half of the $1 per-head assessment sent to national programs and half retained in Arizona for promotion, education, and research. She also emphasized that checkoff funds cannot be used for lobbying and highlighted programs such as ranch tours for nutrition professionals, classroom lesson plans, grants, and digital consumer outreach. Committee members asked about whether checkoff dollars are refundable; Mailing said they are not under the federal program and Arizona does not have a separate refundable state checkoff. Members also offered supportive comments recognizing the council’s work and the service of former board member Andrew Grissetta, who had recently passed away. Several senators spoke in favor of the council’s educational efforts and its role in supporting ranchers, feeders, dairy farmers, and youth programs such as FFA and 4-H. The vice chair moved to recommend continuing the Arizona Beef Council for eight years, until July 1, 2034. The motion passed on a 7-0 roll call vote, and the committee adjourned with no further business.

Transcript Highlights:

• It is predicted that it will cost the Texas economy, just with beef cattle, or just with cattle, $1.8
• She's clear-eyed that our cattle system, especially in Texas, She's clear-eyed that our cattle system
• You know, I hope we can fill them up with Texas cattle.
• The cattle that we've been importing is really U.S. cattle because we've sent our genetics over there
• to stop the flow of cattle from south to north.

Keywords: 1185, senate, all

Transcript Highlights:

• You know, I hope we can fill them up with Texas cattle.
• That is the operational environment that cattle.
• We are talking about two different classes of cattle.
• The cattle that we have been importing is really U.S. cattle because.
• that value added that was going into those cattle and...

Summary: During the meeting, legislative members discussed the practice of municipalities diverting water and sewer revenues to their general funds, which impacts infrastructure maintenance and project delays. Vice Chair Sparks proposed limiting public testimony to two minutes, which was adopted without objection. The committee heard from various witnesses, including Perry Fowler from the Texas Water Infrastructure Network, who emphasized that utility revenues should primarily support water services and that transfers should be transparent and justified. He noted that many utilities face financial pressures that could hinder infrastructure projects. Larry French from the Texas Public Policy Foundation highlighted the significant financial impact of water loss and general fund transfers, estimating the annual loss at $1.5 billion. He argued that these transfers can create disincentives for municipalities to address water loss issues. Brian Butcher, Assistant City Manager of Sugar Land, defended the city's cost allocation model for general fund transfers, asserting that they are necessary for equitable service provision and operational efficiency. The committee also discussed the implications of rising construction costs and the need for better procurement processes to ensure effective use of taxpayer dollars. The second part of the meeting focused on the New World Screwworm and the state's preparedness to manage potential infestations. Dudley Hoskins from the USDA outlined the federal response efforts and the importance of collaboration with state agencies. He emphasized the need for ongoing surveillance and the production of sterile flies to combat the pest. Dr. Philip Kaufman from Texas A&M discussed the historical context of the screwworm and the challenges posed by its potential reintroduction, urging proactive management strategies among livestock producers. The committee acknowledged the need for increased resources and research to effectively address the threat of the screwworm.