Transcript Highlights:

• The banks can just set their own fee rates.
• First off, I would thank you for your endorsement of vendor collection allowance.
• The state picks up that vendor compensation.
• You have sales tax on X and meals at a different rate than you do on a hammer.
• Now, of course, that is different than interest rates.

Summary: The Special Legislative Commission on the Future of Payments and Sales Transactions by Credit Card and the Impacts for Small Businesses held a public hearing chaired by Senator Paul Feeney and Representative Jamie Murphy. The commission reviewed its charge to gather input on payment trends, cashless transactions, credit card fees, mobile payments, buy now/pay later, and related issues affecting small businesses. Representative Sean Garballey testified in support of maintaining the current card system, emphasizing tourism’s importance to Massachusetts and arguing that universal card acceptance and interchange stability are especially important with major upcoming events and visitors. A large portion of the hearing focused on independent restaurants and small businesses arguing that credit card processing fees are burdensome and unfair when applied to sales tax and gratuities that are not business revenue. Testifiers including Jen Ziskin, Kristen Canty, Nancy Cushman, Kerry Colzer, and others described razor-thin margins and said restaurants pay fees on money passed through to the state or employees. Ryan Lotz also urged reforms to chargebacks, including refunding chargeback fees when merchants prevail, requiring consumers to contact businesses first, and making fees proportional. In response, credit union and banking representatives, including Alex Vereen, Brad Popolado, Deb Peters, and Keely McEwen, argued that interchange funds fraud protection, card infrastructure, and consumer protections, and warned that state-specific changes could create compliance burdens, higher costs, or reduced access to services. Several witnesses addressed legal and policy questions. Dan Swanson and David Montero said states have authority to regulate aspects of the payment system, but Montero warned that state-specific rules could create uncertainty and conflict with federal banking law. Julian Morris and other industry witnesses argued that card payments benefit consumers and merchants by reducing cash-handling costs and increasing spending, while critics of reform said changes could shift costs into bank fees or reduced rewards. Commission members questioned whether sales tax could be separated from card transactions, whether surcharging should be considered, and whether vendor compensation or other state-level relief might be more workable. The chairs said they were exploring a narrower, targeted approach rather than a broad overhaul, and announced plans for one additional public hearing to allow further testimony.

Transcript Highlights:

• The state had a tenuous relationship with the key vendor on the contract, and I think in retrospect that
• This month, EDD initiated its vendor contract for the integrated claims management system, which I'm
• The first is that the department decided to shift the shared customer portal vendor contract into, as
• Another thing is the vendor community.
• So you're saying that your response rate and your standards of service, Your response rate and your standards

Keywords: 988, house, all

Transcript Highlights:

• Mission Street vendor, I support. Berta Martinez, Mission Street vendor, I support. Good day.
• Manuel Soltero, I'm a vendor with the Mission Street Vendors, and I support. I'm Sito Pei-San.
• Vendors are being targeted.
• On behalf of all vendors across California, I ask you to please support Senate Bill 635 so vendors can
• It goes back... up, nutrition rates outnumbered the hiring rates because of the ideology that no youth

Summary: The committee heard several public safety measures, with extensive testimony on firearms regulation, disability and sexual assault, mental health diversion, emergency response, and law enforcement masking. SB 704 by Senator Arreguín would require firearm barrels to be purchased through licensed dealers with a background check, as a response to the rise in ghost guns and 3D-printed firearms; supporters said barrels are a key component of untraceable guns, while opponents argued the bill burdens lawful gun owners and does little to stop criminals. SB 258 by Senator Wahab would eliminate the remaining spousal rape exception for victims unable to consent because of disability; supporters called it a needed closure of an archaic loophole, while disability-rights advocates opposed it unless amended, warning it could worsen misunderstandings about capacity to consent and harm disabled people’s autonomy. After debate, SB 258 passed the committee on a due-pass motion to Appropriations, with several members voting aye and the bill held on call. Senator Umberg presented SB 398, which closes a loophole in the law prohibiting paying or offering money or other value to induce someone to vote or register to vote; there was little opposition, and the bill passed on a due-pass motion to Appropriations and was held on call. He also presented SB 27, a CARE Court cleanup measure that would allow certain misdemeanor defendants found incompetent to stand trial to be routed into CARE Court and would expand eligibility to some people with mood disorders with psychotic features. Supporters said it would improve access to treatment and reduce unnecessary incarceration, while county behavioral health directors and disability advocates warned it could blur the line between voluntary civil treatment and coercive criminal proceedings and expand CARE Court beyond its intended scope. SB 27 passed on a due-pass motion as amended to Appropriations. The committee also heard SB 36 from Senator Umberg, a price-gouging measure tied to wildfire-related emergency conditions that also expands search-warrant authority for certain misdemeanor investigations. Public defenders opposed the search-warrant expansion as unnecessary, while a late supporter from the Los Angeles County District Attorney’s Office spoke in favor; the bill was moved on a due-pass motion as amended to Appropriations and held on call. SB 571 by Senator Arreguín would increase penalties for impersonating emergency personnel and related conduct during disasters; supporters cited post-fire looting and impersonation, while opponents argued longer sentences do not deter crime and that existing law is sufficient. The bill passed on a due-pass motion as amended to Appropriations and was held on call. Finally, Senator Wiener presented SB 627, which would prohibit law enforcement from wearing extreme masks except in limited circumstances, aimed largely at masked federal immigration enforcement operations. Supporters said masked, unidentified officers create fear and undermine trust, while law enforcement groups argued the bill wrongly sweeps in local officers, is too broad, and should instead target federal agents or impersonators. Testimony was still underway when the transcript ended, and no final committee action on SB 627 is shown here.

Transcript Highlights:

• A second review found additional failures involving vendor management and financial reporting systems
• Those audits are working, which is the reason why we know about the problems with the vendor system for
• The Active Transportation Plan is not at the The reason why we know about the problems with the vendor
• , which is significantly lower than recidivism rates that we see coming out of CDCR.
• , which is significantly lower than racism rates that we see coming out of CDCR.

Keywords: 987, senate, all

Transcript Highlights:

• Um, as Representative Kosnik shared, yes, we have a 98% success rate, and success rate in our eyes is
• </p> <p>I can speak to success rate.
• </c> this vendor and really all our vendors this vendor and really all our vendors that<01:03:59.200>
• </c> representative um while the premium rate representative um while the premium rate is<01:19:42.040
• </c> then the small employer premium rate then the small employer premium rate would<01:20:11.560><c>

Keywords: 1183, house

Transcript Highlights:

• The banks can just set their own fee rates.
• Merchants actually pay higher rates between...
• The state picks up that vendor compensation.
• You have sales tax on X and meals at a different rate than you do on a hammer.
• Now, of course, that is different than interest rates.

Keywords: 1212, all

Summary: The Special Legislative Commission on the Future of Payments and Sales Transactions by Credit Card and the Impacts for Small Business held a public hearing focused on credit card interchange fees, cashless transactions, chargebacks, fraud, and possible reforms affecting small businesses in Massachusetts. Chair Paul Feeney opened the meeting, outlined the commission’s charge, and noted that the hearing would hear from small business owners, industry representatives, and others on the effects of payment trends and proposed policy changes. Representative Sean Garballey testified first, arguing that universal card acceptance and the current interchange system are important to Massachusetts tourism and should not be disrupted ahead of a busy summer season. A large portion of the hearing featured independent restaurant owners and advocates, who said processing fees are especially burdensome because restaurants operate on very thin margins and are charged fees on sales tax and tips that are not retained as revenue. Testifiers including Jen Ziskin, Kristen Canty, Nancy Cushman, and Kerry Colzer described rising operating costs and gave examples of annual or monthly fee totals, urging relief from fees on tax and gratuity amounts. Ryan Lotz also asked for chargeback reforms, including refunding chargeback fees when merchants prevail, requiring consumers to contact businesses before disputing charges, proportional fees, and safeguards against repeat abuse. Several witnesses, including Dan Swanson, argued that states have authority to regulate aspects of the payment system and cited the Illinois litigation and federal court rulings as support for state action. Opposing testimony came from credit unions, banks, payment industry representatives, and policy groups, who warned that changing interchange rules could create compliance burdens, reduce rewards, raise account fees, and shift costs elsewhere. Witnesses such as Alex Vereen, Brad Popolado, Keely McEwen, David Montero, Hunter Hamburlin, and Luke Bondar emphasized fraud prevention, network security, consumer protections, and the need for a stable, uniform payment system. Some suggested alternatives such as vendor compensation, surcharging, instant payments, or QR pay code standards, while others argued that sales tax and tip amounts cannot easily be separated within current card-network architecture. The chairs said the commission is still exploring options, discussed possible state-level solutions, and announced plans for one more public hearing before moving toward recommendations and a report. The commission then voted to adjourn.

Transcript Highlights:

• This is not about bringing forward vendors to target them out.
• This is not about bringing forward vendors to target them out.
• There are a contracted vendor for the I-Connect platform, yes.
• No vendor wants a system to fail. None.
• We have had some cases that we've worked with our vendor on to solve.

Summary: The subcommittee heard a lengthy presentation on the Agency for Persons with Disabilities’ I-Connect system, based on an ILAB assessment of the platform’s performance and requirements. ILAB said the system provides useful centralized records, reporting, compliance support, and audit trails, but users described it as cumbersome, outdated, and inefficient, with excessive manual entry, weak navigation, limited notifications, no mobile app, poor printing/export options, and performance issues. ILAB also said the original 2013-era requirements were too high-level and that only a portion of the requirements could be verified, with some features de-scoped or never implemented. Their recommendations included better integration with electronic health record systems, improved performance monitoring, electronic signatures, OCR, and more modern export and verification tools. Public testimony from providers and advocates echoed those concerns. A support coordination provider said the system is nicknamed “I Disconnect,” described problems with EVV/GPS sign-ins, lengthy support plans, lack of a phone app, and possible HIPAA concerns. Another advocate said the system should have preserved family access to records and criticized the need for providers to use workarounds and additional software. APD staff said the agency has spent about $19.7 million through FY 2023-24, has regular build updates under the current contract with WellSky, and uses an internal help desk and vendor ticketing process to triage bugs versus enhancement requests. They said some issues are handled case-by-case, critical tickets have SLAs, and the agency is working on interoperability and other requested improvements. Members questioned whether the system should be fixed or replaced, whether the original contract and SaaS arrangement were sufficient, and whether the state received value for the money spent. APD said the system went live in phases and that all functionality was in place by June 2024, while ILAB and members noted significant technical debt and unresolved gaps. The committee also discussed record retention, provider access to records after a consumer changes providers, and whether federal funding or compliance could be affected. The meeting ended with broader budget remarks emphasizing completion over expansion, stronger upfront planning for technology projects, and more accountability before funding new systems or major enhancements.

Transcript Highlights:

• A second review found additional failures involving vendor management and financial reporting systems
• A second review found additional failures involving vendor management and financial reporting systems
• Those audits are working, which is the reason why we know about the problems with the vendor system for
• is significantly lower than recidivism rates that we see coming out of CDCR.
• And seeing none, we will open... out of the cohort two grantees, a 50% decrease in unemployment rates

Summary: The Joint Legislative Audit Committee met to consider new audit requests. The State Auditor reported 10 JALAC audits in progress, with several expected to be published over the coming months, and noted that litigation is delaying the Huntington Beach air show audit. The committee approved a consent calendar of four audit requests covering UC library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. The committee then heard Assembly Member DeMaio’s request for an audit of SANDAG’s road project management and use of transportation funds. DeMaio argued the audit was needed to restore public trust and examine whether restricted funds, voter-approved revenues, and project commitments were properly handled. SANDAG’s CEO and CFO said the agency manages many funding sources, undergoes frequent audits, and has strengthened internal controls; they said the requested review would be duplicative of existing oversight. After debate, the committee voted the request down. Next, Senator Valadares presented an audit of the Board of State and Community Corrections’ Proposition 47 grant administration, focusing on whether grantees and BSCC are accurately reporting outcomes and recidivism data and whether oversight is sufficient. BSCC said the program already has multiple oversight layers, including Controller audits, and cited reported improvements in homelessness, employment, and recidivism outcomes. The committee approved the audit. Finally, Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight was heard, with supporters citing long-standing benefit caps, provider network problems, and retirees’ out-of-pocket costs. CalHR said its network remains strong, that it recently ran an RFP adding MetLife as a second carrier starting in 2027, and that it uses performance guarantees. The committee approved that audit as well, then completed add-on votes approving the earlier consent calendar items before adjourning.

Transcript Highlights:

• Now, we may get one vendor that can scale, right?
• Again, we've been prepping these vendors. They know it's coming. Those vendors respond with a bid.
• Again, we've been prepping these vendors. They know it's coming. Those vendors respond with a bid.
• As we speak, a vendor is... ...that my team and I are working on.
• The zero-rate effects certificates would be required to prioritize rates paid by residential customers

Keywords: 907, all

Summary: The committee held a series of informational briefings on information management and technology issues. It first heard from ACLU representatives on data privacy, who argued that Oregon should strengthen protections against private data brokers, government purchases of personal data, reverse warrants, automatic license plate readers, and local police surveillance. They urged data minimization, limits on data sales and retention, and broader transparency and accountability measures. Members asked about practical uses of license plate readers, state sales of data, and how Oregon’s approach compares with other states; the presenters said similar proposals have been adopted elsewhere, including data minimization in Maryland and a state version of the Fourth Amendment Is Not for Sale Act in Montana. The committee then received a detailed update from the Department of Administrative Services and Enterprise Information Services on licensing system modernization for 14 boards and commissions with the most immediate need. DAS said it is seeking a shared procurement approach through an RFP that would create either one scalable system or two tiers of systems, depending on agency needs and security requirements, with contracts expected by September. Committee members emphasized the need for a more unified, user-friendly statewide login and service experience for businesses and residents, and raised concerns about small agencies “figuring it out on their own” without sufficient cybersecurity or technical expertise. EIS said it is overseeing the investment review, security and architecture review, and future implementation planning, and noted that multiple agency requests may still come back to the legislature in the next session. The committee also discussed a revised cybersecurity incident notification concept. Staff explained that the earlier bill had raised stakeholder concerns, so the co-chairs directed further interim work with the Oregon Cybersecurity Advisory Council and other local government and K-12 stakeholders. The goal is a narrower, voluntary “911-style” notification process that would let public bodies alert peers and potentially receive assistance after cyber incidents; a temporary voluntary process is being tested now, with a work group developing language for possible 2027 consideration. Finally, the committee heard updates from the new state chief data officer on data governance, data sharing, geospatial work, and the state transparency website, followed by a briefing on data centers from NCSL and the Technology Association of Oregon. The data officer described efforts to expand data inventories, data governance plans, data literacy, and interagency sharing, along with statewide aerial imagery, geospatial standards, and the open data portal. The data center discussion focused on national and state trends, including rapid growth in data centers, rising electricity and water demand, and legislative responses such as new rate classes, reporting requirements, and cost-allocation rules to protect ratepayers. No votes were taken; the meeting was informational only.

Transcript Highlights:

• When we started, it was $10 million for the kids, $6 million for the vendor.
• Is there a different approach in looking at premium rate increases versus the hospital cost rate, hospital
• a lot of the contracts were out-of-state vendors.
• 2028, and vendors are required to report beginning February 1, 2028.
• For the past few years, CADS has come before you asking for rate increases through our Raise Our Rates

Keywords: 987, senate, all

Transcript Highlights:

• No, it was vendors.
• There were multiple vendors that participated in order... One vendor?
• How did these monies get appropriated to a vendor and who was responsible? to a vendor.
• there were multiple vendors.
• The vendor wants to be there.

Summary: The Joint Legislative Audit Committee heard presentations on Arizona’s school safety interoperability communication systems, beginning with remarks from Senator Kevin Payne, who described the program as a response to school shootings and 911 overloads, and said the goal is to let schools trigger a panic-button alert that immediately shares video, floor plans, and location information with law enforcement and other responders. Several members echoed support for the concept, while also raising concerns about whether the systems are actually working as intended and whether school resource officers remain necessary or should be supplemented by technology. Auditor General Lindsay Perry summarized the JLAC-directed special audit, explaining that the office reviewed whether fund expenditures were authorized, whether purchased systems met statutory requirements, and whether procurement followed applicable standards. She said the office had tested a sample of systems with vendors, schools, and law enforcement, and that some agencies had not provided requested follow-up information. Members questioned Pinal County’s lack of response and the status of its reports and payments, and committee leaders criticized the county sheriff’s claim that the committee had treated staff unfairly. Representatives from Mutualink, Motorola Solutions, and Navigate 360 then defended their systems and described implementation challenges. Mutualink said its platform connects schools, dispatch, and responders across jurisdictions and claimed it can reduce response times, but acknowledged that implementation depends on training, infrastructure, and cooperation among schools and agencies. Motorola said it had deployed systems in Maricopa and Yuma counties and that some delays stemmed from school participation and procurement issues. Navigate 360 highlighted Cochise County as a success story, saying 60 of 69 schools were implemented and that the company had added maps, emergency management tools, and training support after audit findings. Members repeatedly pressed the vendors on statutory criteria, procurement practices, rural infrastructure, and why some counties or schools were not fully operational; the vendors generally said the biggest barriers were local readiness, training, and interagency coordination rather than the technology itself.

Transcript Highlights:

• Yeah, thank you, vendor was not doing?
• </c> there, I will say the previous vendor there, I will say the previous vendor had<00:05:44.160><c>
• A question was raised about whether the new vendor would be paid broker fees or vendor fees.
• </c> only weigh in exactly what that vendor only weigh in exactly what that vendor proposes.<00:09:33.680
• So, the and this is how they're rated.

Keywords: 958, all

Summary: The committee opened with a moment of silence for Representative McCool, who was absent due to a family death, then approved the April 14 minutes and noted the agenda contained 482 items totaling about $138.6 million. The first deferred item involved the Office of the Controller and a brokerage services contract. Senators questioned why the new contract was roughly $1 million a year when a prior vendor had been paid about $300,000 annually, why the procurement was rebid after years of no-bid arrangements, and why past performance was not heavily weighted. Agency witnesses said the prior vendor had held the work for more than 20 years, the new RFP drew more competition, technical evaluators did not see cost until after technical scoring, and AON received the highest technical score despite being an out-of-state vendor with its closest office in Nashville. After discussion, the committee voted to take no action, and the contract advanced to the Finance Cabinet for final decision. The committee then considered a DCBS memorandum of agreement amendment. Members asked what funding was being redirected to cover an increase of about $265,000. DCBS explained that reduced spending on interpreter services, due to more commonly used forms being translated into other languages, freed up funds to support the contract. The committee approved the item. Next, the committee reviewed an initial contract for the Kentucky Board of Hairdressers and Cosmetologists. The board explained that its small legal staff was handling 11 active cases and needed outside counsel with investigators and additional attorneys because of ongoing litigation and disciplinary changes tied to prior legislation and a recent LOIC report. Members asked whether the contract was a not-to-exceed amount and whether the board could afford it; the board said the $50,000 was a ceiling, not an expected spend, and that the board was fully funded through licensing fees and currently running a surplus. Senator Thomas urged support, citing recent reforms in Senate Bills 14 and 22 and the need to help the board work through corrective action. The committee approved the contract. The Board of Pharmacy item was then deferred at the agency’s request until the June 2025 meeting, and the committee approved that deferral.

Transcript Highlights:

• Unfortunately, we pay the going rate, wholesale rate, for fuel.
• </c> fuel vendor fuel vendor for<00:20:46.520><c> a</c><00:20:46.600><c> period</c><00:20:46.960><c>
• </c> uh wholesale rate for fuel. uh wholesale rate for fuel.
• </c> paying the rate. paying the rate. Thank<00:21:37.720><c> you.</c> Thank you.
• if we just paid the going rate.

Keywords: 1189, house, all

Summary: The Joint Fiscal Committee met on May 15 at 10:00 a.m. and first approved the April 17 minutes. It then took up a consent calendar covering tabs three through seven, with items 089 and 097 removed for separate discussion. The committee approved the remainder of the consent calendar and then adopted item 089, which involved Department of Safety/Homeland Security grant funding for active shooter incident management and school reunification training. Officials said the project is a mandatory Homeland Security grant set-aside, with training for public safety officials and school districts and internal social media used only to promote training schedules; members asked about marketing, outcomes, and how success would be measured. The committee next considered item 097 for the Division of Historical Resources. Agency officials said the request was driven by a decade-long increase in Section 106 and state historic preservation reviews, many tied to disaster-related infrastructure work such as culvert and road repairs, and that the grant would add capacity to handle roughly 1,000 to 1,500 reviews per year. The committee approved the item after brief discussion. Under the regular calendar, the Department of Transportation presented a fuel-related transfer. Members questioned the decline in the highway fund balance, which staff said was being affected by rising expenses, flat-to-moderate revenue, and a rough winter that increased maintenance costs. DOT officials said they were considering toll rate increases and noted the agency pays market wholesale fuel rates; they also discussed prior fuel hedging decisions and said they have authority to hedge again if it makes sense. The committee approved the DOT item, then approved a miscellaneous action item to fill a position at the LBA. Members also asked the chair to remind the Attorney General to appear at a future meeting regarding the YDC claims report. The committee set its next meeting for Friday, June 19 at 11:00 a.m., and adjourned after a brief note of appreciation for recent corrections and changes reported by the liquor commission.

Transcript Highlights:

• TO REDUCE THE CLAIMS RATE, INCREASE YOUR COMPLIANCE RATE AND THE QUALITY OF BUSINESS FUNCTIONS HAVE A
• INSURERS ARE CONTRACTING WITH THIRD-PARTY ENTITIES AND VENDORS. IT IS NOT OURS.
• IT IS THIS OUTSIDE VENDOR.
• ON THE COURSE THE OUTSIDE VENDOR MAY NOT BE DIRECTLY REGULATED BY THE INSURANCE REGULATOR.
• HAS BEEN THE RESPONSE RATE AND SENDING INFORMATION TO COLLABORATE WITH YOU.

Transcript Highlights:

• So it may be just the vendor he's looking at, but he's actually got an estimate that he got.
• I've never met with any of these vendors, so I don't have any direct information.
• And some of the vendors, part of the difference in cost could be the different models.
• Advantage of good short-term investment rates.
• It's a fully insured product that we use a vendor for, and they're able to give us a better... the vendor

Bills: HB205, HB226, HB234

Keywords: sales tax, use tax, exemption, tax conformity, tangible personal property, Alabama Department of Revenue, retail tax, consumer use tax, nonresident, religious publications, church magazines, Bible class materials, Sunday school materials, tax administration, indirect tax, state revenue, HB226, homestead exemption, ad valorem tax, property tax

Transcript Highlights:

• And so what these organizations do is they help a lot of veterans get to that 100% rating.
• I mean, you start getting up into the 90% rating and trying to get to the 100% is nearly impossible.
• We've also included a process for vendor debarment. What does debarment mean?
• It means a vendor can be blocked from submitting a bid to the state.
• And then finally, for transparency, we are looking at any vendors, employees of vendors, or any person

Summary: The House opened with roll call, prayer, the Pledge of Allegiance, and a moment of silence for Nampa Mayor Rick Hogaboam. Members then approved the journal and received a series of messages from the Senate and governor, including enrolled bills and new Senate measures. Standing committee reports moved several bills and resolutions forward, including House Bill 911 and Senate Bill 1258 from State Affairs, and House Concurrent Resolution 36 supporting the Idaho National Guard. The chamber introduced several new bills, including House Bills 933-935, and later took up a number of memorials and resolutions. House Joint Memorial 20, urging Congress to address the fiscal impact of Plyler v. Doe on Idaho schools, passed without objection. House Joint Memorial 19, supporting federal efforts to eliminate the U.S. Department of Education, passed 61-8-1 after debate over whether eliminating the department would shift enforcement costs to the state. House Concurrent Resolution 34, directing feasibility studies on Bear River Basin water development, also passed, 67-2. The House then considered and passed several Senate bills, including SB 1301 on adding a retail location for small breweries, SB 1256 cleaning up outdated reporting requirements for the Commission for the Blind and Visually Impaired, SB 1345 allowing voluntary secure electronic tax commission communications, and a series of water-related bills clarifying ditch easements, water district fees, withdrawal procedures, canal/lateral responsibilities, and irrigation district board eligibility. SB 1286, restricting predatory veteran disability-claims services, also passed after supportive testimony from veterans’ advocates. Later, the House approved a House Business Committee report on administrative rules, then suspended rules to move a large set of appropriation and policy bills, including HB 919 through HB 925 and HB 889 and HB 931, all of which passed with varying vote margins. The day ended with announcements, committee meeting notices, and adjournment until March 20, 2026.

Transcript Highlights:

• When we started, it was $10 million for the kids, $6 million for the vendor.
• Is there a different approach in looking at premium rate increases versus the hospital cost rate, hospital
• Is that 4,000 unique vendors, nonprofits that... ...Is that 4,000 unique vendors, nonprofits that clients
• 2028, and vendors are required to report beginning February 1, 2028.
• For the past few years, CADS has come before you asking for rate increases that raise our rates campaign

Summary: The hearing began with a stakeholder presentation from Let California Kids Hear urging coverage of pediatric hearing aids for children in the large group market. Advocates described the issue as a long-running developmental emergency, argued that existing state efforts have been inefficient, and said the new proposal would cover about 70% to 80% of affected children without new spending by redirecting existing dollars. Public commenters, including parents, audiologists, and children’s advocates, strongly supported the proposal and emphasized the need for timely access to sound. The chair thanked the group and noted hope for a future fix, including continued work on the exchange market. The Department of Finance then gave a broad budget warning about the state’s more than $20 billion structural deficit and said new investments must be weighed against out-year shortfalls. HCAI followed with an overview of its programs, including CalRx insulin and naloxone, reproductive health grants, the Office of Health Care Affordability, seismic hospital compliance, workforce programs, and the Data Exchange Framework. Members asked about geographic targeting of workforce funds, behavioral health pipeline programs, the status of the 21st Century Nursing Initiative, and future CalRx products such as EpiPens and GLP-1s. HCAI also described its enforcement approach for health care spending targets, saying the board would not change the targets in response to H.R. 1, and outlined the diaper access initiative, which will distribute diapers through hospitals in higher-need areas. Several HCAI budget items were discussed and held open, including additional expenditure authority, the transfer of the Data Exchange Framework and Office of the Patient Advocate, long-term care payment transparency staffing, and reporting on health care worker waiting periods. The department also presented its Behavioral Health Services Act workforce initiative and a proposed $100 million General Fund offset, which both the LAO and the chair questioned as unclear and potentially one-time in nature. HCAI said the final workforce plan would be adjusted after stakeholder consultation if the offset proceeds. The department also described the Rural Health Transformation Program, saying California received $233.6 million in federal funds, had to revise its proposal to satisfy CMS, and must obligate the money by October 30; the program will fund rural care models, workforce development, and technology, with grants rolled out on a phased basis. The Department of Managed Health Care then presented its budget and three legislative implementation requests: SB 41 on PBM reform, SB 306 on prior authorization transparency, and AB 1041 on provider credentialing timelines. Finally, the administration outlined a menopause care proposal requiring coverage and education for menopause-related services, provider training, and an outreach campaign, with DMHC requesting staffing and funding to implement and enforce the new requirements. Throughout the hearing, most items were held open for later action, and no final votes were taken in the portion provided.

Transcript Highlights:

• So a positive there, 9.17 is the effective tax rate there. So Mr.
• The food vendor program, where DPI acts as a pass-through for these school districts and pays the vendor
• about half of the mill rate in Fargo or Grand Forks County.
• They don't necessarily have to go up if the mill rate is lowered.
• to projected 2729 rates.

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

Transcript Highlights:

• So a positive there, 9.17 is the effective tax rate there. So Mr.
• The food vendor program, where DPI acts as a pass-through for these school districts and pays the vendor
• about half of the mill rate in Fargo or Grand Forks County.
• They don't necessarily have to go up if the mill rate is lowered.
• rates, and that helps them do their budgeting.

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

Transcript Highlights:

• What was the success rate again?
• multiple contracts and vendors.
• multiple contracts and vendors.
• If a vendor is hired at a certain area for a statewide vendor, then maybe we understand where that's
• The other challenge with a single vendor is what is known as vendor lock-in, which basically means once

Summary: The subcommittee met to hear budget-related updates from the Judicial Branch and the Office of Emergency Services, with no votes taken. The Judicial Council supported the Governor’s proposed budget, highlighting $70 million for increased trial court operating costs, additional funding for court-appointed counsel, Court of Appeal case processing, and courthouse construction and facilities. Trial court representatives emphasized staffing retention problems, especially in counties like San Bernardino, and said stable funding is needed to avoid delays and maintain access to justice. Members also discussed the branch’s remote proceedings program, which has been used in more than 6 million hearings statewide since 2022 and was described as especially important in rural areas and for vulnerable litigants; several members urged making the authority permanent rather than extending it temporarily. A major portion of the hearing focused on Proposition 36 implementation. Finance said the Governor’s budget maintains the $130 million provided in the 2025 Budget Act for court workload and pretrial services, but adds no new Prop. 36 court funding. Judicial Council staff reported nearly 35,000 felony Prop. 36 filings in 2025, with most cases still pending and only a small share of treatment-mandated cases already dismissed after treatment. Witnesses said courts are using the funds for staffing, coordinators, clerks, and treatment-court operations, but that workload varies widely by county and that data collection is limited because courts report aggregate information rather than case-level outcomes. The LAO raised a technical concern about the Department of Finance’s Prop. 47 savings estimate and recommended revising the methodology at May Revision. The committee also reviewed the Orange Central Justice Center facility modification project, where the Judicial Council explained that hidden construction deficiencies and fire-life-safety issues caused costs to rise substantially after demolition began. The LAO said the project itself was supportable but recommended that the Legislature set an ongoing funding level for court facilities, require a long-term facilities plan, and consider more oversight of facility modification projects. Finance said it continues to fund courthouse projects individually and through the State Public Works Board, while acknowledging project delays and cost increases. Finally, Cal OES and advocates discussed victim services funding. Cal OES said it administers about $315 million annually for victim service programs, including VOCA-funded services, but federal VOCA allocations have fluctuated sharply and the state has used one-time General Fund backfills to maintain services. Trauma recovery center advocates warned that an 85% reduction in funding would sharply reduce services for survivors of violent crime, while human trafficking advocates urged reauthorization of the Human Trafficking Victim Assistance Program before funding reverts to pre-pandemic levels in July 2026. Members asked about federal and state funding stability, referral pathways, and the long-term value of these programs in preventing worse outcomes and reducing public costs.