Transcript Highlights:

• Our actuaries conducted a rigorous review to ensure the rates are actuarially sound, not unfairly discriminatory
• We would have to wait for the superintendent and our chief actuary. Okay.
• The superintendent is joining via Zoom, and our chief actuary will be here in person.
• Until we get the actuary in here, and then we'll get the superintendent.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• Prior administrations created a term called 'most actuarially sound,' which does not exist in actual
• Something is actuarially sound or it is not.
• There are two concepts there: actuarially sound and financial solvency.
• And as a practical matter, insurance companies can calculate the actuarial risk for accidents and random
• I understand what actuaries do. I understand pricing. I understand that.

Committee: Senate Insurance

Transcript Highlights:

• levies, part two of the state levy, and regular levies on the greater of $50,000 or 35% of assessed valuation
• levies, the second state levy, and regular levies on the greater of $60,000 or 60% of the assessed valuation
• threshold one, they're exempt from regular property taxes on the greater of $80,000 or 80% of the valuation
• income threshold two, they're exempt from all regular levies on the greater of $70,000 or 45% of the valuation

Summary: House Finance met in executive session on Gross Substitute Senate Bill 6346, the proposed “millionaires’ income tax” package. Staff reviewed the bill and a long list of amendments affecting the new income tax, related business tax changes, and several exemptions and implementation provisions. The committee adopted amendments to exempt diapers from sales tax, allow certain tribal income treatment clarifications, create an advisory group to help implement the tax, move up the repeal date for some business tax changes, and require the measure to go to the voters; several other amendments on federal conformity, agricultural income, pass-through entities, and the marriage threshold were rejected or withdrawn. The committee then adopted the striking amendment as amended and advanced the bill on a 9-6 do pass vote, with supporters arguing it would fund education, health care, child care, and tax relief, and opponents warning about competitiveness, capital flight, and the state’s spending growth. The committee then held a public hearing on Senate Bill 6097, which would add federally recognized Indian tribes as eligible entities for county Conservation Futures Program funding. Staff said the bill would not change the tax levy structure and would have no state revenue impact, while tribal witnesses said it would improve voluntary conservation partnerships for habitat, farmland, and open space. Members asked about the bill’s scope, and staff confirmed it applies only to federally recognized tribes. House Finance also heard Senate Bill 6162, a property tax reform measure that would consolidate the state school levy, expand senior and disability property tax exemptions, raise income thresholds, and simplify the application process with a standard deduction. The prime sponsor and county assessors supported the bill as a way to help seniors, disabled persons, and disabled veterans stay in their homes and reduce administrative burden, while several testifiers opposed it as a tax shift that would raise costs for others and potentially strain local revenues. Finally, the committee heard Senate Bill 6113, an administrative and technical tax cleanup bill related to last year’s tax changes; the Department of Revenue supported it and noted a possible clarifying amendment, while nonprofits, schools, libraries, health care groups, workforce training providers, and trade associations asked for additional exemptions for live presentations and related educational activities. The chair announced that Senate Bill 6097 would be added to Monday’s executive session, Senate Bill 6114 was removed, and amendments for Monday’s bills were due by 5 p.m. that day.

Transcript Highlights:

• The current market valuation this morning is about $205 billion.
• Current market valuation of that plan is $19 billion.
• following passage of the law last year, we identified 33 companies in our holdings with a total valuation
• the close of the fourth quarter of 2024, that number has now been reduced to 13 companies, with valuation

Committee: Senate Governmental Oversight and Accountability

Summary: The Committee on Governmental Oversight and Accountability met with a quorum present and took up two bills and one presentation. Senate Bill 108, on administrative procedures, was presented by Senator Burgess on behalf of Senator Grall. The bill would require agencies to systematically review rules over five years old, submit annual regulatory plans and reports, and take action on reviewed rules; it also would speed publication of proposed rules after new rulemaking authority and expand transparency for incorporated materials and rule histories. Americans for Prosperity appeared in support, there was no debate, and the bill was reported favorably on a roll call vote. The committee then heard a presentation from State Board of Administration Executive Director Chris Spencer on implementation of statutory investment restrictions affecting state funds. He reviewed the SBA’s structure and fiduciary duties, said the agency must maximize financial return using only pecuniary factors, and described the Protecting Florida’s Investments Act restrictions involving Northern Ireland, Cuba, Venezuela, Israel, Sudan, Iran, and China. He noted recent changes, including expanded Iran restrictions after the October 7 attacks, the addition of China-related divestment requirements, and the SBA’s move to eliminate China and Hong Kong from its global equity benchmarks; he said the agency is ahead of schedule on required divestment and in compliance with the law. Senate Bill 100, on display of flags by governmental entities, was then presented by Chair Fine. The bill would prohibit political flags on government buildings and allow active-duty service members and veterans to use reasonable force to stop flag desecration. The committee heard extensive public testimony, with supporters arguing government buildings should not display political messages and opponents raising First Amendment, vagueness, and enforcement concerns, especially regarding LGBTQ-related flags and school settings. Senators also questioned the bill’s definitions and the reasonable-force provision. After debate, the committee voted to report SB 100 favorably, with Senators Arrington and Polsky voting no and Senators Brodeur, McClain, Rodriguez, Fine, and Chair DeSiglie voting yes. At the end of the meeting, Senator Rodriguez was recorded as voting yes on SB 108, and the committee adjourned.

Transcript Highlights:

• And if you Google it, the newspaper articles all talk about, you know, $0.05 per $100 valuation, and
• The housing market is creating some strain on the city because the valuations are flat.
• Constitutionally capped, I should mention, at $0.10 per hundred dollars of valuation.
• So, ESDs are already highly regulated and kept under Chapter 775 at just $0.10 per $100 of valuation.
• Right now, they did a tax rate of $0.60 per $100 valuation, representing a 25% increase. ...and people

Bills: HB17 , HB23 , SB 10

Committee: House Ways & Means

Transcript Highlights:

• 00:09:22.000><c> those</c><00:09:22.240><c> those</c><00:09:22.560><c> two</c><00:09:22.800><c> valuations
• </c><00:09:23.200><c> in</c><00:09:23.440><c> more</c> cover those those two valuations in more cover
• those those two valuations in more detail.<00:09:24.080><c> So</c><00:09:24.320><c> just</c><00:09:24.640
• And then as I look at slide 13, I see on the first bullet there, um, the valuation determines that both
• determines that both sales and valuation determines that both sales and use<01:10:35.840><c> tax</c>

Committee: Senate Taxes

Transcript Highlights:

• that was given up to 16 days a year, they can still do that, but they're financially responsible, actuarially
• Responsible, actuarially responsible for those additional three days.
• It is specific to each group, and I did bring the actuarial study.
• Probably best done visually, but the actuarial study we submitted as part of the bill highlights that
• The actuarial study indicates it would not add to the unfunded liability."

Summary: The meeting opened with roll call, a quorum was confirmed, and the minutes were approved. The committee then heard testimony on Senate Bill 9, which concerns TRS sick leave audit requirements and process. Auditor Allison Ball’s staff said the audit is an information-gathering review of how teacher sick leave is accumulated, current balances, how many employers use the sick leave function, and the policies and procedures governing sick leave. Members discussed how unused sick leave affects retirement calculations, the distinction between the state’s financial responsibility and school districts’ responsibility, and whether the audit would also examine related leave categories such as personal leave, annual leave, and leave of absence. Committee members emphasized that Senate Bill 9 was intended to add accountability and standardize reporting, including preventing annual leave from being rolled into sick leave. Several members asked for clarification on how sick leave is factored into retirement benefits. Witnesses and members explained that, under the system described, accumulated sick leave can be converted into retirement credit based on a teacher’s daily rate and then multiplied by a percentage, with the school district often bearing the cost. Members also noted nuances in the law, including different accumulation limits by hire date and tier, and that the audit may help the public better understand why some educators retire relatively young. The auditor’s office said it is still early in the process, has met with TRS leadership, and will report back once the audit progresses. The committee also asked whether maternity leave would be included; the auditor’s office said it was not specifically mandated but could be examined if the body requests it. The committee then received an overview of Senate Bill 10 from KPA representatives Ryan Barrow and Rebecca Atkins. They explained that the bill enhances retiree health insurance benefits for certain CRS members who are non-Medicare participants and meet specified career thresholds, with different rules for hazardous and non-hazardous service. They described the benefit as $40 per month per year of service for non-hazardous service and $50 per month per year for hazardous service, both inflated annually, and clarified that these amounts are not cumulative with prior benefit formulas. Members asked about the interaction between the new amounts and existing benefits, and the presenters explained that the bill also changes current employee health insurance contribution rates effective July 1, 2026, with different impacts by tier and hazardous status. The committee discussed the need for clear communication to affected employees and reviewed example calculations showing how the new contribution structure would work.

Transcript Highlights:

• My name is Annie Tasman Ewing, and I am a senior consulting actuary with Wakely.
• I'm a fellow of the Society of Actuaries and a member of the American Academy of Actuaries.
• Our actuarial analysis found that this transition could reduce MassHealth costs, Our actuarial analysis
• significantly from these estimates, and these remarks should be considered in combination with the full actuarial

Committee: Joint Joint Committee on Public Health

Summary: The committee hearing covered a wide range of public health bills, with much of the testimony focused on two major themes: expanding access to care and stabilizing health-related workforces and services. On House 2364, an act relative to medical health and fitness facilities, representatives from Dedham Health and Athletic Club argued for a pilot program recognizing supervised exercise as medicine, saying it could improve outcomes for chronic disease, fall prevention, and mental health while reducing costs. On House/Senate bills concerning community health workers (H. 359/S. 251), multiple witnesses from MACHW, Health Care for All, MHA, Cambridge Health Alliance, Mass General Brigham, Boston Children’s Hospital, Asian Women for Health, and the City of Somerville described CHWs as essential for navigation, trust-building, language access, and addressing social needs, and urged reimbursement by MassHealth, the GIC, and private insurers, along with workforce development measures. One pediatric neurologist also told the committee that losing grant-funded CHW support led to more avoidable ER visits and threatened clinic operations. The committee also heard extensive testimony on hospital closures and essential services. Witnesses including Dr. Alan Sager, MNA President Katie Murphy, nurses from Brockton Hospital and Providence Behavioral Health, and local officials and legislators from Norwood described the loss of hospitals and service lines, especially maternity, pediatric, and behavioral health care, and argued current closure processes are too weak to protect communities. They supported bills such as H. 2460/S. 1503 and H. 2534/S. 1574, which would require earlier notice, community input, stronger state oversight, possible receivership, and limits on reopening or expanding after closures. Testimony emphasized the impact of Steward’s bankruptcy, the closures of Carney and Neshoba Valley, and the need to preserve access to essential services in underserved areas. Several end-of-life and professional regulation bills were also discussed. On H. 2436, Representative Omar Gomez and funeral industry witnesses supported eliminating Office of the Chief Medical Examiner fees for the removal of a child’s body in cases involving children five and under, describing the bill as a small but important relief for grieving families. On H. 2444 and related Senate bills, cemetery and consumer advocates supported legalizing alkaline hydrolysis and natural organic reduction as environmentally friendly after-death options, while cemetery representatives opposed H. 2360, which would allow funeral establishments to operate crematories, arguing cemeteries should retain that role. The committee also heard support for H. 2382, which would exempt dentists and oral surgeons from a new office-based surgical center framework, and for H. 2461, which would create hospital efficiency standards; employers and retailers backed that bill as a way to address rising health care costs. Finally, the committee heard testimony on autism services and hospital governance. On S. 1414, behavior analysts and school representatives said Massachusetts already licenses assistant-level ABA providers but MassHealth does not reimburse them, causing long waitlists and limiting school and family access; an actuary testified that a three-tier ABA reimbursement model could reduce MassHealth costs by up to 6% per child served. Senator Lovely also testified in support of S. 1572, which would require at least one registered nurse on each acute care hospital governing board, arguing nurses’ frontline perspective would improve quality and retention. No votes were taken in the hearing excerpt, but many witnesses urged favorable reports on their respective bills.

Transcript Highlights:

• I would normally have my chief actuary here, Dr.
• There's a reason for it: they have to put a limit out there in order to actually make it actuarially
• We also recognize the fact that FEMA... ...to actuarially make it sound in some way.
• So they will come in with rates and say this is actuarially justified, as we've been going through the
• You know, they will have actuarially justified rates to make their underwriting profit, and then above

Bills: SB154 , SB187 , SB193 , SM3

Committee: Senate Senate Conservation

Keywords: insurance, wildfire, flood damage, natural disasters, property coverage, water projects, appropriation, New Mexico, finance authority, infrastructure, New Mexico Finance Authority, funding, SB193, acequia, community ditch, irrigation works construction fund, water infrastructure, ditch infrastructure, irrigation, New Mexico water law

Transcript Highlights:

• They are actuarially... but they are not causation, and we believe credit scores have a disparate impact
• I'm the Chief Actuary. at the OSI. Thank you. All righty. Is that the end of your presentation?
• Is that an actuarially sound assumption, Madam Chair? That is not what I'm suggesting.
• Who spoke today, if I could see their actuary, you know, their algorithm, and it's proprietary.
• A and B, credit scores may be actuarially predictive, but the real issue is causation; your driving record

Committee: House House Commerce & Economic Development Committee

Transcript Highlights:

• That includes looking at particular language and using actuarial science to determine whether rates are
• inadequate, excessive, or actuarially sound.
• As a result, the actuarial indicators that we had used in that space to set the rates for consumers were
• Their actuaries worked with ours to actually force those rates down to an actuarially sound level.
• So rating tables and actuarial science around that changed overnight, in a matter of moments, and that

Summary: The State Administration Budget Subcommittee met for an introductory overview of the agencies under its jurisdiction and their current-year budgets. Chair Vicki Lopez welcomed members and staff, and each member briefly introduced themselves and identified areas of interest, with recurring themes including fiscal restraint, insurance regulation, revenue administration, condominium issues, and government efficiency. The chair then outlined the subcommittee’s overall budget, about $3.1 billion, and noted major recent policy areas affecting the budget such as condominium legislation and emergency communications funding. Agency heads then presented high-level summaries of their missions and budgets. The Department of Revenue described property tax oversight, tax administration, and child support enforcement; the Department of Management Services reviewed state purchasing, telecommunications, fleet, state insurance, retirement, and digital services; DBPR highlighted licensing, enforcement, condominiums, and building code work; DFS covered insurance consumer services, risk management, unclaimed property, fire marshal functions, and criminal investigations; the Gaming Control Commission discussed pari-mutuel and tribal gaming oversight and enforcement; OIR explained insurer solvency and rate review; the Lottery emphasized education funding and record sales; OFR described regulation of banking, securities, lending, and money services; DOAH outlined administrative and workers’ compensation adjudication; PSC covered utility rate regulation and consumer complaints; PERC described labor relations and career service appeals; and FCHR summarized discrimination complaint investigations and outreach. Several members asked questions about utility returns, insurance regulation staffing, DMS’s state employee health plan deficit and prescription drug formulary management, agency recommendations for reducing regulatory burden, and state facilities usage. Responses generally emphasized that utility rates and insurer filings are determined through evidentiary and actuarial processes, that OIR has reduced vacancies but still seeks specialized staff and a Tampa office expansion, and that DMS acknowledged rising health plan costs and said the issue likely requires broader budget-level discussion. The chair also pressed multiple presenters to stay focused on agency operations and budgets rather than broader policy issues. No votes or formal actions were taken in the meeting.

Transcript Highlights:

• To urge and request the actuary for the Legislative Auditor, in consultation with actuaries for the two
• To urge and request the actuary for the Legislative Auditor, in consultation with actuaries for the two
• The actuary of the legislative ordinance shall serve as an ex officio and nonvoting member.

Bills: HB410 , HR310 , HR314 , HR316 , HR317 , HR321 , HR275 , HR276 , HR279 , HR282 , HR286 , HR289 , HR292 , HR295 , HR302 , HR319 , HR307 , HR273 , SCR59 , SCR61 , SCR62 , SCR68 , SCR69 , SCR70 , SCR54 , SCR55 , SCR64 , SCR75 , HCR32 , HB776 , HB42 , HB119 , HB159 , HB302 , HB1017 , HB1028 , SB217 , SB283 , HB953 , SB208 , HR74 , HB998 , 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 , SB237 , HB36 , HB74 , HB75 , HB258 , HB259 , HB414 , HB459 , HB784 , HB848 , HB956 , HB1095 , HB1220 , HB1252 , SB469 , SB479

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:

• The employer contribution for Plan C is at the actuarial cost of administering the plan.
• Because any of these bills are going to have some sort of, you know, the potential for some sort of actuarial
• Because any of these bills are going to have some sort of, you know, the potential for some sort of actuarial
• municipality is deemed to have partially dissolved, then the number that is dissolved is calculated by the actuary
• future, partially triggers the partial dissolution statute again, then that is calculated by the actuary

Committee: House Retirement

Transcript Highlights:

• According to the state actuary, there are currently about 98 survivors that could be impacted by these
• And the state actuary indicates that the impact on contribution rates is insufficient on a rounded basis
• According to the state actuary, there are currently about 98 survivors that could be impacted by these
• And the state actuary indicates that, There is a partial fiscal note in your electronic bill book.
• And the state actuary indicates that the impact on contribution rates is insufficient on a rounded basis

Bills: HB1607 , HB2159 , HB2441 , HB2521 , HB2531 , HB2543

Committee: House Appropriations

Keywords: recycling, waste reduction, environmental policy, sustainability, municipal regulations, preK, education funding, childcare, youth development, state budget, HB 2441, line of duty death, survivor benefits, medical insurance premium reimbursement, surviving spouse, domestic partner, dependent children, public employee death benefits, retirement system, Washington State

Transcript Highlights:

• This bill sets a rate of $5 per $1,000 of equalized property valuation.
• This bill sets a rate of $5 per $1,000 of equalized property valuation.
• This bill sets a rate of $5 per $1,000 of equalized property valuation.
• , not on sort of nominal valuation, and I'm not sure that's correct in the bill as is.
• not on sort of nominal valuation not on sort of nominal valuation<03:44:10.279><c> and</c><03:44:10.439

Summary: The committee held a public hearing on HB 402, a bill to repeal a provision in RSA 194-F:2 stating that Education Freedom Account (EFA) funds “shall not constitute taxable income” to the parent or student. The bill sponsor argued the current language is misleading because the state cannot determine federal tax liability, and said the bill would simply remove inaccurate tax advice from state law. He cited IRS guidance and prior federal legislation, including a Ted Cruz proposal, to suggest some EFA uses may be taxable under federal law, while others may not, and said the bill could be amended if needed to avoid confusion. Testimony was sharply divided. Py Campbell opposed the bill, arguing it would unfairly single out EFA students and could amount to a tax on education funds, including for self-employed families, and recommended it be voted inexpedient to legislate. Stephen Matthew French, a tax preparer, also opposed the bill, saying IRS Publication 970 already makes clear that scholarship-type payments used for tuition and related expenses are not taxable, and that the bill addresses a problem that does not exist. He warned that adding tax reporting requirements could create administrative costs for families and the program administrator. Bill Ardinger, a tax attorney, supported the repeal of the statutory language, saying the state should not place potentially incorrect tax advice into law. He explained that under federal tax law, only certain scholarship-like uses are exempt, while many EFA-eligible expenses may not be, especially for families using the program for homeschooling or other nontraditional expenses. He said the current statute could mislead families into thinking all EFA payments are tax-free and could expose the state to future legal problems. The hearing ended after questions from committee members; no vote or final action was taken in the transcript.

Transcript Highlights:

• districts are doing a good job. what is the benchmark you're comparing the appraisal district's valuations
• doesn't set. a property tax and I get if we do it ahead of time by by saying, hey, this is what your valuation
• out of Nueces County where a school district in a city was almost bankrupted. because of a large valuation
• Due to that billion dollar valuation change, and the tax unit simply didn't have that money. refund.
• Furthermore taxing units are not supposed to tell the appraisal district what to do with valuation.

Committee: House S/C on Property Tax Appraisals

Transcript Highlights:

• sound capitated payments um actuarial sound capitated payments um shifting<00:16:02.160><c> the</c><
• They reimburse us on a fixed, actuarially sound capitated rate structure.
• So there is, um, our actuaries.
• Each state has their own actuaries that work with the health plans to develop the rates.
• </c><00:28:23.919><c> their</c><00:28:24.159><c> own</c> actuaries, each state has their own actuaries

Summary: The Committee to Study Long-Term Managed Care met to approve prior minutes and outline its schedule, with meetings set for September 24 and September 29 ahead of an October 1 report deadline. The chair said the committee would use the first two meetings to digest testimony, likely ask follow-up questions of DHS, and then work toward conclusions and a report format. The minutes from the previous meeting were approved unanimously. The main testimony came from Sharon Alexander of Amera Health, who argued in favor of moving from fee-for-service Medicaid long-term services and supports to a managed LTSS model. She described managed LTSS as a capitated, quality-driven system used in about 26 states, and said it can improve care coordination, accountability, access to home- and community-based services, and budget predictability. She cited Amera Health’s experience in Pennsylvania and Delaware, including care coordination, housing and transportation support, caregiver programs, and quality benchmarks tied to state oversight. She also said nursing facilities would remain an important option for people who need that level of care. Committee members asked about how the programs are administered, how rates are set, how care managers work, and how quality is measured. Alexander said states contract with managed care organizations at actuarially sound capitated rates, with annual contracts, reporting, and oversight. She explained that care managers typically conduct quarterly assessments and follow up after trigger events such as hospitalization, and that housing coordinators may assist with transitions to the community. On quality, she said states use CMS-related and HCBS benchmark measures covering service timeliness, care planning, transitions, and other outcomes, and that New Hampshire could build on existing metrics rather than starting from scratch. She also noted that rural areas face workforce and transportation challenges, which managed care plans try to address through technology and self-direction options.

Transcript Highlights:

• Um, so, what happens is EGI program manager will come to me after the actuary looks at our program and
• Unfortunately, now we're sitting out there with the, where, according to the actuaries and according
• I don't like seeing the actuaries being basically ignored, which has been case in point for Which has
• But the point being is they're used to working with actuaries; they're used to working with numbers.
• And I will note that the actuarial independent actuarial report within that insurance department the

Committee: Joint Appropriations

Transcript Highlights:

• We need to, on the fourth point, readdress the wildlife valuation, the tax status for wildlife valuation
• We need to make sure, though, that we don't allow a wildlife valuation to do nothing but load fuel up
• Your number four, your wildlife valuation, can you help me understand that issue just a little better
• I'd like to expand on the valuation, the wildlife valuation. The 1D1 wildlife valuation.
• Justin Pennick talked about a situation and one wildlife valuation.

Committee: Senate Natural Resources

Summary: The committee heard introductory remarks from the new chair and members, who emphasized Texas’ energy leadership and the committee’s focus on natural resources, regulatory certainty, private property rights, and stewardship. The first agency update panel included the Railroad Commission, TCEQ, and the General Land Office. The Railroad Commission reported record oil and gas production, low flaring rates, progress on orphan well plugging, implementation of SB 1150 on inactive wells, new federal primacy for Class VI carbon sequestration permitting, and work on petroleum theft through the STOP theft task force. TCEQ described its broad environmental permitting and enforcement responsibilities, including air, water, waste, emergency response, and implementation of SB 1145 transferring land application permitting for produced water to TCEQ. The GLO discussed management of permanent school fund minerals, lease compliance, orphan well coordination, and emerging opportunities such as lithium extraction from brine and rare earth mining. Members questioned the agencies about orphan wells, bankruptcy as a cause of orphaning, priorities for plugging wells, contested permits, data center oversight, water rights, and the division of authority between the Railroad Commission and TCEQ. A recurring issue was the need for clearer jurisdictional lines, especially for treated produced water and related treatment, discharge, and land application activities. TCEQ said it was using existing TPDES and T-LAP frameworks, conducting rulemaking, and relying on technical staff and consortium data to develop site-specific permits. The Railroad Commission said it wanted clearer legislative guidance on where its authority ends and TCEQ’s begins. The committee then took up monitoring charges for SB 1145 and HB 49 on the treatment and beneficial reuse of produced water. Witnesses from the Railroad Commission, TCEQ, the Texas Independent Produced Water Association, the Texas Produced Water Consortium, and the Permian Basin Petroleum Association testified that produced water volumes are large and disposal capacity is tightening due to seismicity and pressure concerns. They argued that beneficial reuse, land application, and surface discharge could help sustain oil and gas production, but only if Texas creates prompt, predictable permitting pathways and liability certainty. TCEQ said it had received and was reviewing multiple discharge and land application applications, while consortium researchers reported that treated produced water can meet high water-quality standards and may be suitable for irrigation, river augmentation, and industrial use. Members pressed for faster permitting, clearer definitions, stronger standards, and more certainty about future capacity and agency roles.

Transcript Highlights:

• It's also, I think, more substantially borne out during just face-to-face discussions between our actuaries
• and the company's actuaries about what experience they're having.
• A rate filing is about between 1,500 and 2,500 pages long of hard actuarial data.
• We have a team of actuaries that spend every second they can to look at it.
• So someone else, but I do caveat out their actuarial work papers. It's very complicated data.

Summary: The subcommittee held its first meeting on homeowners property insurance, with members from both parties introducing themselves and repeatedly noting that insurance affordability, roof condition, claims handling, and storm recovery are top concerns for their districts. Chair Yeager said the meeting was intended as an educational discussion rather than a legislative debate, and introduced a panel that included Insurance Commissioner Mike Yaworski, consumer Chad Carr, agent Mary Catherine Lawler, insurer executive Melissa Burt DeVries, and policyholder attorney Chip Merlin. The panel and members discussed major cost drivers in Florida homeowners insurance, including inflation, home age, roof age, mitigation features, claims history, litigation costs, reinsurance, and the Florida Hurricane Catastrophe Fund. Commissioner Yaworski said underwriting has become more sophisticated and that litigation costs, reinsurance, and replacement-cost inflation all affect premiums; he also said litigation is down about 30% and average requested rate increases have fallen from about 22.1% in 2022 to 0.8% today. DeVries said age of home, replacement cost, roof age, and coverage choices can materially change premiums, and explained that reinsurance is a major expense passed through to consumers. Merlin emphasized transparency concerns, argued that insurers are increasingly individualizing risk, and said consumers often struggle with coverage limits, deductibles, and claim denials. Members asked about flood coverage, hurricane deductibles, managed repair programs, mitigation credits, new insurer capitalization, and whether savings from reforms are reaching consumers. Yaworski explained that flood is generally excluded from homeowners policies and covered separately, that hurricane deductibles are mandatory in Florida and usually around 5%, and that the office tracks savings from reforms through rate filings and insurer discussions. He said the state is updating mitigation discounts and monitoring new entrants closely for solvency and market conduct. Several members and panelists said recent reforms have helped reduce some abuses and litigation, but many consumers are still seeing higher premiums because replacement costs and reinsurance remain elevated. No votes or formal actions were taken.