Transcript Highlights:

• And so we calculate our O&M costs.
• It's kind of a sketch-level traffic and revenue study to inform upcoming traffic and revenue work at
• and revenue work for financing and bonding of future toll revenue.
• We will have the Level 3 traffic and revenue net revenue results completed early in the year, and that
• We will have the level three traffic and revenue, net revenue results completed early in the year, and

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The committee met jointly with the Washington-Oregon Legislative Action Committee for an update on the Interstate 5 Bridge Replacement (IBR) program. Members first adopted the proposed committee rules, then received program updates from staff on environmental review, permitting, design, tribal consultation, and public engagement. Staff said the project remains in the supplemental EIS process, with a final supplemental EIS and amended record of decision expected in early 2026, which would allow construction to begin. They also described ongoing work on Coast Guard navigation clearance, Section 106 historic-property coordination, and architectural guidelines for the bridge and five-mile corridor, emphasizing that the visualizations shown were conceptual and that public and partner feedback has already influenced design considerations such as accessibility and shared-use path connections. Members raised concerns about schedule delays, rising costs, and whether the project is being designed to be functional, safe, and economical. Staff acknowledged that the timeline has slipped from earlier expectations and said the delay reflects the complexity of the environmental and federal review process, as well as the need to avoid redoing steps. They said the updated cost estimate is being prepared now that design has advanced to roughly 30 percent, and that it will account for inflation, risk factors, and both fixed-span and movable-span options. Staff estimated a movable span would add more than $400 million and said the first construction work after environmental approval would likely be preliminary freeway and retaining-wall work in late 2026, followed by the bridge procurement. The committee also received funding and tolling updates. Staff reported that major federal grants have been executed, including Mega and Bridge Investment Grant agreements, and that state STIP amendments are advancing to allow access to federal funds. The tolling team described Level 3 traffic-and-revenue work, a bi-state tolling subcommittee process, and possible toll scenarios aimed at supporting either about $1.24 billion or $1.6 billion in toll revenue. Members questioned low-income toll relief timing, truck toll rates, and the effect of tolls on freight users. Staff said low-income discounts are being analyzed for both revenue and operational feasibility, that tribal exemptions and other policy exemptions are under review, and that the commissions expect to move into public outreach on toll rates and policies in 2026, with tolling on the existing bridges currently projected to begin in spring 2027.

Transcript Highlights:

• How would, if it's municipally owned, how would the revenue be calculated? Thank you.
• The penalty amount is either a tenth of one percent of the annual net revenue of the utility for the
• So that's the calculation that is done, but it cannot be more than $25,000 for the penalty per each day
• Yeah, that's how the penalty would be calculated. But what about the municipal revenue?
• How is that calculated? They have to submit annual income statements to the PSC. Okay, thanks.

Committee: Senate Energy And Telecommunications

Summary: The Senate Energy and Telecommunications Committee, chaired by Senator Kevin Parker, met to consider a series of energy, utility, housing, and labor-related bills. The committee discussed Senator Parker’s clean hydrogen bill authorizing NYSERDA to administer programs to fund clean hydrogen projects, with members debating how it would be financed through NYSERDA’s system benefit charge and RGGI funds and whether there should be a fiscal estimate. Despite concerns from some members about cost transparency and the use of ratepayer-supported funds, the bill advanced to the Finance Committee with three without-recommendation votes. The committee also advanced Senator Parker’s bill directing NYSERDA to study hydrogen feasibility, Senator Gonzalez’s Green Affordable Pre-Electrification Program bill, Senator Hinchey’s natural carbon sequestration research program bill, Senator Gineris’s bill increasing penalties for utility annual report failures, Senator Comrie’s EV charging fee transparency bill, and Senator Parker’s battery energy storage workforce and labor standards bill. Senator Comrie’s outage hotline bill moved to third reading, while Senator Parker’s renewable hydrogen center program bill advanced despite a technical objection that a deadline in the bill had already passed, and the battery storage bill was referred to the Labor Committee. Several bills drew specific concerns. On the outage hotline bill, members questioned whether small municipal electric and water systems should be exempted rather than required to petition for an exemption, and one member said they would not support the bill without a carve-out. On the annual report penalty bill, members asked about the lack of documentation for the penalty increase and whether municipal utilities would be affected; the sponsor explained the penalty was updated from a 1900-era statute to reflect inflation and that municipal utilities file with the PSC. On the EV charging transparency bill, a member suggested the bill should also require credit card payment options, not just prohibit mobile-device-only payment. On the battery storage labor bill, members asked whether remote operations would count as on-site work and whether out-of-state remote monitoring would be covered; the sponsor said that was the intent and would follow up with labor counsel on residency questions. The committee concluded by adjourning after moving the listed bills forward.

Transcript Highlights:

• </c><00:20:32.400><c> generated</c> opportunity created by revenue generated opportunity created by revenue
• And significantly outpacing our revenue.
• </c> comes to the city and county revenue comes to the city and county revenue split.<00:29:55.360><c
• We could not do it without the revenue that comes from this.
• We could not do it without the revenue that comes from this.

Summary: The committee received reports on special purpose governmental entities from the Department for Local Government and the Fire Commission. DLG staff described SPGEs as limited-jurisdiction political subdivisions and reviewed the department’s registry, reporting portal, compliance monitoring, and planned system upgrades such as a two-way message center, automated noncompliance notices, and tracking for new entities and board expirations. They reported that, as of October 10, 2025, 69% of SPGEs were active and discussed compliance data by cycle, fiscal year, and district type. The Fire Commission reported that fire department mergers have reduced the number of departments by 16 since last year, largely because of volunteer staffing shortages, while financial disclosure compliance had risen to 94%. The commission also noted 509 compliance reviews, 19 in-house inquiries, seven referrals to outside agencies, and one recent federal prison sentence in a theft case. Members asked whether DLG advises SPGEs on tax rates; staff said it only performs calculations and the entities set their own rates. Questions to the Fire Commission focused on whether department reductions meant station closures; officials explained that most changes were mergers that keep physical buildings in place while combining personnel and finances to meet minimum staffing requirements. They said the trend is spread across the state but is especially pronounced in rural areas. The Kentucky League of Cities then presented its 2026 legislative agenda. Its priorities included modernizing city revenue options, increasing equity in road funding, fixing tax increment financing issues, addressing transient room tax collection from web-based platforms, strengthening emergency response coordination, clarifying massage parlor regulation preemption, correcting unintended consequences of House Bill 606, improving newspaper publication rules, and modernizing procurement statutes. KLC also said it supports allowing all cities to collect restaurant tax revenue, wants cities to receive a larger share of road funds and EV-related revenues, and seeks state collection and remittance of any future local sales tax to comply with the Streamlined Sales and Use Tax Agreement. Members asked about best-value bidding, road-fund equity, Airbnb tax litigation, EV prevalence, and disaster funding applications; KLC said cities currently must accept the lowest bid, the road split should better reflect city street costs, the Airbnb tax case remains pending, EV data by locality has not been studied, and allowing cities to apply directly for disaster funds would reduce reliance on county officials. No votes or formal actions were taken beyond approving the September meeting minutes.

Transcript Highlights:

• We are strongly considering how we can generate additional revenue.
• Last year, we also brought in, I believe, $13.7 million in enforcement revenue.
• Can you provide details on how you calculate assessment fees? Yes.
• There were a lot of questions about how do I calculate my own net proceeds.
• There were a lot of questions about how do I calculate my own net proceeds.

Summary: The subcommittee heard budget proposals for Exposition Park, the California Science Center, the Department of Financial Protection and Innovation (DFPI), the Debt Collection Licensing Act program, and the Board of Registered Nursing. For Exposition Park, the administration requested $96.5 million for utility replacement, site improvements, code compliance, accessibility, and safety upgrades, plus $1.698 million for operational sustainability funded from the park’s improvement fund. The LAO said the proposals had merit but noted the first item could be downscaled if needed because of the state’s budget condition. Members emphasized the park’s deferred maintenance, major upcoming events, and the need to protect a statewide asset; both Exposition Park items were held open. The Science Center requested funding to open and operate the new Air and Space Center, including staffing for the facility that will display the Space Shuttle Endeavour and expand exhibit space. The LAO supported the proposal but suggested the Legislature consider alternative funding sources such as admission fees, parking fees, or private funds. Members discussed the Science Center’s public-private funding model, the importance of keeping access affordable for disadvantaged communities, and the tradeoff between free admission and long-term operating support. The item was also held open. DFPI sought continuation of expenditure authority for the California Consumer Financial Protection Law, debt collection licensing, and broker-dealer/investment adviser workloads, and the LAO recommended limited-term funding with more cumulative reporting before permanent funding is considered. Members pressed the department on whether its workload and spending are tied to measurable outcomes rather than just activity counts, and DFPI cited complaint resolution, enforcement actions, and restitution recovered as examples of impact. The Debt Collection Licensing Act item drew similar LAO comments, but members raised stronger concerns about the financing model, the gap between projected and actual licensee counts, and whether spending levels are justified; that item was held open. The Board of Registered Nursing requested $1.4 million for eight special investigators to address rising complaints, and the board said most complaints are resolved through investigation, referral, probation, or rehabilitation rather than discipline. Members asked about complaint backlogs, viral and potentially automated complaints, bias in care, and the lack of broader inspection authority; the item was also held open.

Transcript Highlights:

• establishes a minimum fund balance and allowable utilization percentage for fiscal year 2026-2027 for the Revenue
• In the Senate amendments, there was $100 million of fees and self-generated revenues to the Office of
• Representative Chasity Martinez provides relative to compensation for intercollegiate athletics and revenue
• House Bill 608 concerns compensation for intercollegiate athletics and revenue sharing, including public

Bills: HR310 , HR314 , HR316 , HR317 , HR321 , HR275 , HR276 , HR279 , HR282 , HR286 , HR289 , HR292 , HR295 , HR302 , HR319 , HCR112 , HR307 , SCR59 , SCR61 , SCR62 , SCR68 , SCR69 , SCR70 , SCR54 , SCR55 , SCR64 , SCR75 , HCR3 , HCR49 , HCR66 , HCR67 , HB1 , HB2 , HB42 , HB45 , HB66 , HB71 , HB79 , HB126 , HB133 , HB145 , HB159 , HB167 , HB213 , HB218 , HB222 , HB289 , HB291 , HB312 , HB313 , HB316 , HB324 , HB352 , HB383 , HB398 , HB403 , HB429 , HB457 , HB459 , HB511 , HB549 , HB571 , HB579 , HB591 , HB608 , HB616 , HB624 , HB766 , HB769 , HB783 , HB799 , HB804 , HB864 , HB874 , HB909 , HB951 , HB971 , HB983 , HB1005 , HB1017 , HB1051 , HB1056 , HB1095 , HB1126 , HB1129 , HB1186 , HB1193 , HB1223 , HB1224 , HB1230 , HB1235 , HB1249 , HB723 , HB36 , HB140 , HB181 , HB198 , HB205 , HB211 , HB226 , HB259 , HB271 , HB302 , HB335 , HB342 , HB487 , HB513 , HB623 , HB682 , HB730 , HB740 , HB761 , HB775 , HB797 , HB812 , HB816 , HB940 , HB968 , HB979 , HB1028 , HB1029 , HB1038 , HB1049 , HB1084 , HB1161 , HB1194 , HB1199 , HB1201 , HB1203 , HB1247 , HB1256 , SB25 , SB132 , SB155 , SB157 , SB202 , SB228 , SB237 , SB250 , SB405 , SB406 , SB414 , SB433 , SB480 , SB513 , SB149 , HB359 , SB29 , SB43 , SB78 , HB210 , HB258 , HB468 , HB784 , HB134 , HB1117 , SB42 , SB274 , SB382 , SB449 , SB300 , HR74 , HB463 , HB715 , HB998 , SB80 , SB268 , SB444 , SB479 , HB901 , HR20 , HCR65 , HCR71 , HCR98 , HB284 , HB306 , HB341 , HB366 , HB393 , HB458 , HB577 , HB603 , HB605 , HB614 , HB625 , HB646 , HB733 , HB752 , HB773 , HB798 , HB911 , HB955 , HB996 , HB1035 , HB1069 , HB1113 , HB1140 , HB1180 , HB1191 , HB1240 , HB1255 , SB82 , SB89 , SB97 , SB123 , HB74 , HB119 , HB368 , HB414 , HB552 , HB732 , HB776 , HB848 , HB870 , HB953 , HB956 , HB1236 , SB208 , SB217 , SB283 , SB387 , SB389 , SB401 , SB408 , SB469

Keywords: oil and gas, orphan wells, inactive wells, shut-in wells, marginal wells, plugging and abandonment, well decommissioning, site remediation, site restoration, Oilfield Site Restoration, OSR program, financial security, bonding, taxpayer liability, public liability, offshore wells, onshore wells, coastal erosion, Department of Conservation and Energy, natural resources

Transcript Highlights:

• State revenue, also GRT. Thank you, Mr. Speaker.
• Outstanding revenue bonds that do not get paid, and that means that those revenue bonds impact credit
• .. ...employment, so all the lost job revenue, so those folks who don't have jobs anymore, that revenue
• Speaker, gentlelady, do you have any concern that reducing the general fund revenue from taking revenue
• And that's a calculated risk. Of course, Mr.

Bills: HM3 , HM11 , HM14 , HM15 , HM21 , HM25 , HB9 , SB2 , SB19

Keywords: nurses, health care workers, healthcare workers, frontline workers, hospital staff, clinicians, allied health professionals, support staff, public health, workforce shortage, nursing shortage, safe staffing, patient safety, rural health care, frontier communities, behavioral health, mental health, substance use disorder, substance abuse, health care memorial

Transcript Highlights:

• A method for calculating the excise tax rate is provided.
• levy growth calculation.
• But the state and local governments do need the tax revenue.
• But the state and local governments do need the tax revenue.
• I just don’t have a calculator handy to do it at various levels, but I will.”

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearm background check fees. Staff explained that the bill would remove the $18 fee cap and allow Washington State Patrol to set fees based on actual program costs, which could be about $33 to $35 per check. Supporters said the change was needed to keep the background check system operating and avoid delays and layoffs; opponents argued it would burden lawful gun owners and amount to an unconstitutional tax or barrier to a constitutional right. No vote was taken in the hearing. Members then heard Substitute House Bill 2475 on language-accessible public programs, which would direct the Office of Equity to develop uniform language-access guidelines, address interpreter and translator shortages, and require agency implementation reporting. Testimony was strongly supportive, emphasizing the need for consistent access for limited-English-proficient residents and the benefits for schools, families, and state services. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery fund to provide partial advance payments to low-wage workers with meritorious unpaid wage claims and adjust wage penalty provisions. Employers, labor advocates, and legal services representatives largely supported the bill as a bipartisan, worker-protection measure funded by penalties rather than the general fund. The committee next took up Engrossed Third Substitute House Bill 1960 on renewable energy tax incentives, which would replace existing property tax and excise tax provisions with a new state and local renewable energy excise tax structure and related grant programs for local governments and tribes. Counties, utilities, developers, and tribal representatives generally supported the bill’s goal of stabilizing tax treatment for renewable projects, though several witnesses said they wanted amendments to address rates, timing, and late-stage project impacts. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the timing and duration of existing tax preferences; supporters said it would provide certainty for emerging sustainable aviation fuel projects, while one refinery sought clarification and a broader county threshold. Later, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, directing the Department of Agriculture to monitor food system performance and develop a statewide food security strategy. Agricultural groups, grocers, anti-hunger advocates, and farmers supported the bill as a coordination effort to improve food access, affordability, and supply chain resilience. The committee then heard Engrossed Second Substitute House Bill 1903, which would create a statewide low-income energy assistance program through the Department of Commerce; supporters said it would address growing unmet need and complement existing utility programs, while opponents said it did not address the root causes of rising energy costs. Finally, the committee heard Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act and Engrossed Second Substitute House Bill 2515 on large energy-use facilities (data centers), both of which drew mixed testimony centered on balancing emissions, ratepayer impacts, reliability, and environmental or tribal concerns. No final votes were taken in the hearing.

Transcript Highlights:

• We removed excused absences from the school of calculation.
• I would have to defer to our revenue department.
• What's the calculated difference in that? We don't have a calculated difference at this time.
• I think it's clear that we need to explore new revenue streams.
• This was done to align the calculation methodologies for the UC and CSU.

Transcript Highlights:

• the transfer to the Department of Revenue.
• </c> to the Department of Revenue. to the Department of Revenue.
• </c> High School League's also calculating High School League's also calculating what<00:07:37.400><c
• </c> we saw the actual collected revenue we saw the actual collected revenue yesterday<00:20:27.160><
• ,</c> HF 3971 is not about reducing revenue, HF 3971 is not about reducing revenue, and<00:42:46.000>

Bills: HF4906 , HF3971 , HF4777 , HF2109 , HF2988

Committee: House Taxes

Transcript Highlights:

• About 88% of total revenue-related funds for 2026-27 is projected to come from tax revenues.
• , and all state funds, which is general revenue, general revenue dedicated, and other funds, and how
• So in the all-state funds category, that's your general revenue, general revenue dedicated, and other
• In the all-state funds category, that's your general revenue, general revenue dedicated, and other funds
• While some general revenue dedicated accounts, which are reliant on court costs and judicial fee revenues

Bills: SB 1 , SB 1

Committee: Senate Finance

Summary: The Senate Finance Committee convened for its first hearing of the 89th regular session, confirmed a quorum, adopted committee rules by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the committee’s organization, introduced staff, and described the budget as conservative and focused on one-time investments. She highlighted major SB 1 priorities including property tax relief, full funding for public education formulas, teacher pay, school safety, border security, Medicaid growth, dementia research, energy and water infrastructure, transportation, wildfire suppression, and other capital and public safety needs. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending in 2026-27, with a projected $23.8 billion ending balance from the current biennium. He cautioned that revenue growth is returning to more normal levels and that lawmakers should avoid committing short-term surpluses to ongoing expenses. He also explained that the Economic Stabilization Fund is projected to hit its constitutional cap, meaning an estimated $5.6 billion in severance tax and related revenue would remain in general revenue in the upcoming biennium rather than flow into the fund. Senators discussed whether to raise or rename the fund and the implications of keeping more severance-tax revenue in general revenue. The Legislative Budget Board then gave an overview of SB 1 and the budget’s major funding changes. LBB staff explained that the bill is essentially flat at $332.9 billion in all funds, but includes large method-of-finance shifts and major property tax relief. They detailed how prior property tax relief enacted in the 88th Legislature grew from an estimated $18 billion to $22.7 billion because of higher property values and hold-harmless provisions, and said SB 1 continues that relief with a total of $51 billion in ongoing and new property tax support. Members asked extensive questions about the automatic growth in school tax compression, the constitutional homestead exemption, COVID-era federal funding, Medicaid assumptions, and the sunset of the non-homestead circuit breaker. No additional votes or final budget actions were taken beyond adoption of the committee rules.

Transcript Highlights:

• Palomino testified that the flat tax decreased revenue, is that correct?
• Our state revenue cannot afford the provisions of this bill.
• Also, Arizona's flat tax locked in permanent revenue losses.
• The governor's Department of Revenue has put out tax forms.
• The governor's Department of Revenue has put out tax forms.

Committee: House House Ways & Means Committee of Reference

Summary: The committee took up House Bill 2785, a major Arizona tax conformity measure that would align state law with the Internal Revenue Code as of January 1, 2026 and apply retroactively to tax year 2025. The sponsor and supporters said the bill would make Department of Revenue tax forms legal, provide certainty to taxpayers already filing under those forms, and deliver about $440 million in tax relief through provisions such as no tax on tips and overtime, a larger standard deduction, a $6,000 senior deduction, and changes to deductions and the SALT cap. Opponents argued the bill would significantly reduce state revenue, disproportionately benefit higher-income taxpayers, and should not move forward without a broader budget plan. After an amendment addressing retroactivity and foreign dividend language was adopted, the committee approved HB 2785 on a 5-4 vote. The committee then heard several Arizona State Retirement System technical cleanup bills. HB 2089, clarifying the health insurance premium benefit subsidy, passed 9-0. HB 2090, changing the disability timeframe for long-term disability benefits, passed 8-1. HB 2092, allowing certain employees over age 65 to waive ASRS participation within 30 days of eligibility, also passed 8-1. These measures were described by staff and the sponsor as simple corrections, with little opposition. Finally, the committee considered HB 2477, which conforms Arizona’s 529 education savings plan to federal law, expands allowable uses, and adds rules for 529-to-Roth IRA rollovers and ABLE transfers. Supporters called it a cleanup bill that would simplify administration for families, while some members raised concerns about the Roth rollover and possible use of funds transferred from ESA accounts. The bill passed 5-3 with one member voting present. The committee then adjourned.

Transcript Highlights:

• how they calculated up that rejection.
• For most cities, it's the major revenue source.
• Revenue. Cape Girardeau County would lose about $750,000 in revenue annually.
• And that's how I calculated the difference in revenue.
• So that's why I say I think the revenue, when you work in all of the calculation into the equation, I

Committee: House Ways and Means

Transcript Highlights:

• levy growth calculation.
• The majority of this is implementation costs for the Department of Revenue and Commerce.
• We're what's called centrally assessed for our property tax by the Department of Revenue.
• So the bill has an indeterminate revenue impact on both state and local levels.
• I just don’t have a calculator handy to do it at various levels, but I will.”

Bills: HB2521 , HB2249 , HB1796

Committee: Senate Ways & Means

Keywords: firearms, background check, gun control, public safety, legislation, HB 2249, Washington Technology Solutions, WaTech, civil service, classified service, exempt employees, state employment, state personnel, network security, cybersecurity, information technology, IT contracting, data center, systems integration, network engineering

Transcript Highlights:

• >> Anybody got a big enough calculator? You know, I don't know if Mr.
• We severely restrict the tools that local governments have to raise their own revenue.
• And I think it was 85% of county revenue, own-source revenue, that they raise themselves from property
• We severely restrict the tools that local governments have to raise their own revenue.
• And I think it was 85% of county revenue, own-source revenue, that they raise themselves from property

Committee: House Ways and Means

Transcript Highlights:

• </c> that Revenue that's one of the revenues that Revenue that's one of the revenues that's<00:15:55.800
• I made education this new revenue to education, so education will get a bump in its revenue.
• I made education this new revenue to education, so education will get a bump in its revenue.
• I made education this new revenue to education, so education will get a bump in its revenue.
• we</c><01:05:19.960><c> would</c> this Revenue to that Revenue we would this Revenue to that Revenue

Committee: Senate Ways and Means

Transcript Highlights:

• is the federal revenue.
• We've calculated that the net patient hospital revenues are about $7.5 billion.
• some clinic revenue, pharmaceutical revenue, etc.
• Separate calculation? Do you know?
• Preliminary estimates would reduce hospital patient revenue by less than 2% annually. revenue by less

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• We'll do new calculations for what the no new revenue rate or the max compressed rate Is my understanding
• It is not true that recapture funds go into general revenue.
• In calculation of some of the spending limits, particularly the consolidated general revenue limit, since
• We must also watch and adjust as revenues fluctuate, as shown in the comptroller's biennial revenue estimate
• General Revenue that went to the Ship Channel Improvement and Revolving Fund.

Committee: House Appropriations

Transcript Highlights:

• This is the hour of our scheduled Revenue and Taxation Committee hearing, and we are called to order.
• What kind of revenue are we talking about? Representative Furman: Thank you, Mr. Chairman.
• That language actually creates a second calculation in the statute.
• That language actually creates a second calculation in the statute.
• I'll tell you, a number of them were laid out as specific revenue allocation areas.

Committee: House Revenue and Taxation

Transcript Highlights:

• These agencies were already underfunded and overly reliant on fare revenue.
• The problem is that veterans must Calculations in housing programs.
• So, in other words, it brings in more money and revenue ultimately than is taxed.
• So in other words, it brings in more money and revenue ultimately than is taxed.
• Code to reflect changes made in the Internal Revenue Service Code since January 1, 2015.

Summary: The Assembly Committee on Revenue and Taxation heard several bills focused on transit funding, veterans’ tax relief, clean energy incentives, housing development costs, and tax conformity. SB 63 would authorize a Bay Area regional sales tax measure for transit agencies facing fiscal shortfalls; supporters said it was needed to avoid major service cuts, while the California Taxpayers Association opposed it on Proposition 13/218 concerns. SB 56 would exclude veterans’ disability compensation from income calculations for the disabled veterans’ property tax exemption, and SB 296 would expand property tax relief for 100% disabled veterans and certain surviving spouses; both drew broad veterans’ support. SB 86 would extend and expand the California Alternative Energy and Advanced Transportation Financing Authority sales and use tax exemption program, including fusion energy, and SB 302 would conform state tax law to federal clean energy credit monetization provisions; both were backed by industry, labor, and clean energy advocates. SB 328 would cap Department of Toxic Substances Control fees on contaminated-soil remediation for infill and master-planned housing projects, with housing groups arguing the current fee structure can make projects infeasible. SB 711 would update California’s tax conformity date to January 1, 2025 to reduce complexity and inconsistencies with federal law, and was supported by tax professionals and business groups. Several bills were held or sent to suspense, while others advanced with amendments. After quorum was established, SB 63 passed the committee 4-2 and SB 86, SB 302, SB 328, and SB 711 were referred to suspense, with SB 86 and SB 302 later approved out of suspense with amendments. SB 56 was held in committee, SB 296 was made a two-year bill, and SB 284 and SB 723 were held. The committee also approved a number of additional suspense-file bills, including SB 293, SB 359, SB 419, SB 587, SB 603, SB 663, SB 710, and SB 785, while SB 591 was approved with amendments and SB 353 was made a two-year bill. The hearing concluded with the committee adjournment after final roll calls and bill actions.

Transcript Highlights:

• Senator Corman, the Senate Revenue and Taxation Committee will come to order.
• Will those funds go back into general revenue if this doesn't extend?
• Real quickly, these types of programs effectively reduce the amount of revenue that's coming into the
• They're now going to have to calculate in that a two-year hold harmless period to reflect the ad valorem
• Also, we have the calculation issue... ...if any time that we're wanting to purchase a prison in the

Bills: HB3044 , HB3465 , HB3625 , HB3704 , HB3759 , HB3920 , HB3972 , HB4191 , HB4311 , HB4426

Committee: Senate Revenue and Taxation

Summary: The Senate Revenue and Taxation Committee considered several House bills dealing with tax credits, fee changes, school funding, and investment authority. House Bill 4426 extended the sunset on the SIDE tax credit to December 31, 2032, and passed 7-2. House Bill 3704 elected Oklahoma into the federal income tax credit for contributions to scholarship-granting organizations and passed 9-2. House Bill 4311 raised the unclaimed property division’s administrative fee from 4% to 6% to cover increased duties and costs; it passed 8-3 after debate over whether the increase was justified. House Bill 3044 reauthorized the veterans income tax checkoff and the associated capital improvement fund, and passed 10-0. House Bill 4191 revised the Smaller Employer Quality Jobs Act by lowering job thresholds, expanding qualifying locations and industries, and changing other eligibility rules; it passed 6-4. House Bill 3465 extended the emission tax credit sunset from July 1, 2027 to July 1, 2029 and passed 6-4, with opponents arguing it subsidized compliance with federal mandates. House Bill 3972, a title-off bill addressing ad valorem reimbursement issues tied to the state purchase of a prison, drew extensive debate over precedent and scope; an amendment to add a sunset failed 5-5, and the bill then passed 8-2 as amended.