Video & Transcript : 'checkless payments' :
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HI
Hawaii 2025 Regular Session
CPC Public Hearing - Wed Mar 12, 2025 @ 2:00 PM HST
Consumer Protection & Commerce
Transcript Highlights:
- </c> charge $5 for debit card payments charge $5 for debit card payments correct<00:24:58.960><c> uh<
- If they did a normal payment or send a check in and the check bounces, the consumer would be hit with
- I would imagine a normal loan payment might be 100 bucks.
- plan, and our kupuna and those who are financially not able to come up with those payments are either
- plan and our kapuna and those payment plan and our kapuna and those who<00:35:14.400><c> are</c><00:
Committee:
House Consumer Protection & Commerce
Summary:
The Committee on Consumer Protection and Commerce met on March 12, 2025, and heard testimony on several bills, with most measures drawing support from state boards, agencies, and industry groups. SB 102 (restaurants) had one supportive testifier and no questions. SB 1367 SD1 (installment loans) drew support from DCCA and other boards, but the chair raised concerns about a proposed $5 debit-card convenience fee, saying it seemed high and suggesting it might be amended downward; DCCA said it would check with industry on the likely impact. SB 1373 SD2 (administrative licensure action against sex offenders) received broad support from DCCA and multiple professional licensing boards, including psychology, physical therapy, naturopathic medicine, chiropractic, dentistry, massage therapy, nursing, optometry, barbering and cosmetology, the Hawaii Medical Board, and HPD.
The committee then heard SB 1142 SD1 (insurance proceeds), which was supported by DCCA, the Council for Native Hawaiian Advancement, AARP, Hawaiʻi Realtors, and the Hawaiʻi Insurers Council, while State Farm offered comments and the Hawaii Bankers Association opposed. Testimony focused on insurance access after the Lahaina wildfires and the need to address underinsured homeowners. The committee also discussed SB 144 SD2 (stabilization of property insurance), with support from the Hawaii Green Infrastructure Authority, AARP, Hawaiʻi Realtors, and the Hawaiʻi Insurers Council, and comments from the Attorney General and DCCA Insurance Division about revising the financing structure and correcting bill language. Opponents and reservationed supporters argued the bill may not help if applicants can still obtain coverage at very high prices, while supporters said it would expand market capacity and provide a safety net as climate-related losses continue.
Finally, SB 253 SD2 (condominium reserves) received support from Hawaiʻi Realtors, CI, and several individual testifiers. Supporters said it would enforce existing disclosure requirements under Act 199 and improve reserve funding transparency, while one individual argued stronger enforcement and an ombudsman-style office would be more effective. The chair reminded testifiers to stay on the bill at hand. No votes or final committee actions were taken during the portion of the meeting reflected in the transcript.
NH
Transcript Highlights:
- Thank you for your what the payment is.
- Each employee shall be given payment.
- </c> are due where the mechanism of payment are due where the mechanism of payment is<00:46:12.160><c
- That's payment method to get rid of me?
- But if the manner of payment is.
Committee:
Senate Commerce
AR
Transcript Highlights:
- So this relates to payments that are made related to incarcerated...
- Uh, payments that are made related to incarcerated juveniles.
- So if they don't get the cases updated timely, I believe 99% of these payments are capitated payments
- is that there was a payment that was made...
- Authorization or approval for payment was not indicated on all invoices.”
Committee:
All LEGISLATIVE JOINT AUDITING
Summary:
The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports.
The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes.
Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return.
The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.
AR
Transcript Highlights:
- These changes. for uncollectable accounts related to unemployment benefit payments.
- So this relates to payments that are made related to incarcerated juveniles.
- If they don't get the cases updated timely, I believe 99% of these payments are capitated payments, so
- is that there was a payment that was made after the incarceration date.
- Authorization or approval for payment was not indicated on all invoices.
Committee:
All LEGISLATIVE JOINT AUDITING
ID
Transcript Highlights:
- Within a few seconds, get your payment to you.
- It's just a new way to make payments.
- So it's simply just adding another payment option to the mix.
- It's not forcing her or anybody else to use this payment method.
- I'm not saying our current payment methods don't work.
MN
Minnesota 2025-2026 Regular Session
Increasing renter’s credit eligibility, amounts 3/10/26
Minnesota House Floor Meeting
Transcript Highlights:
- </c> Like if you don't have the down payment Like if you don't have the down payment um<00:19:01.360>
- </c> the whole package, not just the payment the whole package, not just the payment interest,<00:19:
- c> sense</c> first-time down payment that makes sense first-time down payment that makes sense but<00
- And so getting to better down payment.
- </c><00:21:34.080><c> And</c> ...get a down payment to buy a home.
WA
Washington 2025-2026 Regular Session
House Health Care & Wellness Jan 14th, 2026
Transcript Highlights:
- While we've received cost-based payment under Medicare and Medicaid, our financial viability depends
- on receiving adequate payment from commercial insurers.
- One example for you is Premera had to initiate a payment policy that banned the provider practice of
- Thank you. to ensure our payment methodologies are fair, reflect current market conditions, and most
- One example for you is Pramara had to initiate a payment policy that banned the provider practice of
Summary:
The committee heard public hearings on several health-related bills. House Bill 1904 would prohibit cat declawing except for therapeutic purposes, with staff explaining definitions, fines, recordkeeping, and reporting requirements. The prime sponsor and animal welfare advocates described declawing as cruel and linked it to pain and behavior problems, while the Washington State Veterinary Medical Association supported the substance of the bill but asked to remove the added reporting and disciplinary provisions as redundant and burdensome. House Bill 2211 would provide guidance for medically tailored meals under existing Medicaid-related nutrition supports, including standards for Washington-based nonprofit providers where possible, menu review, and nutrition requirements. The sponsor said it would clarify implementation without expanding the program, and supporters from meal providers, food distributors, and local farms said it would improve health outcomes, keep dollars local, and support Washington jobs and agriculture.
House Bill 2329 would allow licensed midwives to delegate certain tasks to medical assistants and to supervise medical assistants, with the sponsor and birth center operators saying it would fix an omission in current law and help rural and under-resourced birth centers operate more efficiently. Supporters said it would improve staffing and financial stability, while the sponsor indicated the lactation consultant language would likely be removed because those consultants are not regulated by the Department of Health. The committee then returned to House Bill 1904 for additional testimony from humane organizations, veterinarians, shelter leaders, and local officials, all supporting a ban on declawing and emphasizing animal pain, shelter impacts, and available alternatives.
House Bill 2247 would expand and clarify veterinary telehealth and veterinarian-client-patient relationship rules, allowing a VCPR to be established in certain telehealth circumstances and setting guardrails for consent, practice standards, and when in-person exams are still required. Supporters from shelters, animal welfare groups, mobile clinics, and veterinarians said telehealth would improve access in rural and underserved areas, reduce shelter intake, and help animals receive care sooner; the veterinary association supported the bill with amendments to clarify recordkeeping and access-to-care findings. House Bill 2339 would update nursing license terminology and processes for advanced registered nurse practitioners, including title changes, controlled substance rules for CRNAs, transcript submission, and interim permits. Nursing board and ARNP representatives supported the technical updates, while the hospital association and medical association raised concerns about title language for clinical nurse specialists and the deletion of a reference to the medical profession.
Finally, House Bill 2106 would require health carriers to give 90 days’ notice of significant mid-contract payer modifications and provide the actual modification language, with the sponsor and hospital and provider representatives saying insurers are increasingly making unilateral changes that affect payment, services, and patient access. UW Medicine and a rural hospital district described examples where insurers changed imaging or preventive service coverage mid-contract, causing financial losses and forcing difficult choices about network participation. Carriers were noted as opposing the bill, while providers and facilities argued it would improve transparency and prevent one-sided contract changes that disrupt care.
MN
Minnesota 2025-2026 Regular Session
Working Group on Omnibus Health and Human Services Bill - 06/08/25
Minnesota Senate Floor Meeting
Transcript Highlights:
- </c> page 10, line 431, there is a payment page 10, line 431, there is a payment modification<00:10:41.440
- I'm also pleased that the hospital direct payment program bill is included.
- </c> application for a directed payment application for a directed payment program<00:56:24.640><c> that
- </c> direct payment program bill is included. direct payment program bill is included.
- </c><00:57:33.280><c> program</c> to include the directed payment program to include the directed payment
TX
Texas 89th Regular
Pensions, Investments & Financial Services Mar 3rd, 2025
Pensions, Investments & Financial Services
Transcript Highlights:
- . $130,000 annuitants, and the payments for that come from basically three. primary resource sources.
- And the legislature put that on a payment plan with a legacy payment, which is $5 billion.
- There was the legacy payment last session, the legislature maintained that $510 million.
- Trust Fund provides annuity payments for approximately half a million retirees.
- So they will get a full year's worth of those payments also in a lump sum. in April.
OK
Oklahoma 2026 Regular Session
Senate Legislative Session Feb 24th, 2026 at 01:30 pm
Oklahoma Senate Floor Meeting
Transcript Highlights:
- This is payments for FY25 for bills that they currently have that we have not paid.
- I think you're talking about pended payments. If I could clarify the question, Mr.
- And in this supplemental, those payments will be made. Follow, Senator Kirt. Thank you, Mr.
- My understanding was it was around 4 million dollars in those payments that we did not pay.
- Will these payments impact our growing Waitlist for the consent decree?
Bills:
SB1636 , SB1584 , SB1730 , SB1255 , SB1627 , SB137 , SB2062 , SB1470 , SB1284 , SB1632 , SB1594 , SB2045 , SB1251 , SB1884 , SB1250 , SB1630 , SB1262 , SB1374 , SB1292 , SB1432 , SB1199 , SB1790 , SB1481 , SB1614 , SB1734 , SB1437 , SB1489 , SB1718 , SB1778 , SB1327 , SB1372 , SB1403 , SB1937 , SB277 , SB2131 , SB1749 , SB1348 , SB1469 , SB2018 , SB1931 , SB1530 , SB2155 , SB2030 , SB1926 , SB2170 , SB2151 , SB2166 , SB1213 , SB1381 , SB1824 , SB1876 , SB1728 , SB1582 , SB1286 , SB1386 , SB1708 , SB1618 , SB2106 , SB1471 , SB2139 , SB2154 , SB1619 , SCR15 , HB2786 , HB2787 , SB1525 , SB2011 , SB2159
Keywords:
cold case, unsolved homicide, violent crime, case file review, law enforcement, police records, victim family, immediate family member, designated person, forensic testing, witness reinterview, investigative leads, cold case unit, unsolved murder, public safety, Title 21, Oklahoma statutes, sexual assault, evidence kits, DNA testing
MN
Transcript Highlights:
- And that data shows that in 2025, that monthly payment was now up to over $2600 a month.
- </c><00:04:17.920><c> on</c> interest, taxes and insurance payment on interest, taxes and insurance payment
- was now up to over $2600 monthly payment was now up to over $2600 a<00:04:26.960><c> month.
- </c><00:04:46.120><c> and</c> Saving money for a down payment and Saving money for a down payment and
- </c> reserves between receipt of payments. reserves between receipt of payments.
Committee:
House Taxes
Keywords:
HF2715, homestead credit refund, property tax refund, property tax relief, homeowner tax relief, homestead credit, co-pay reduction, Minnesota property taxes, tax rebate, state refund, income thresholds, inflation adjustment, property tax circuit breaker, housing affordability, elderly homeowners, fixed income, taxation, Minnesota Statutes 290A.04, renters credit, income tax
MN
Minnesota 2025-2026 Regular Session
House Fraud Prevention and State Agency Oversight Policy Committee 2/23/26
Fraud Prevention and State Agency Oversight Policy
Transcript Highlights:
- </c> and the OIG has 28 active payment and the OIG has 28 active payment withholds<00:04:10.760><c> in
- </c><00:15:54.320><c> related</c> payment suspensions on EIDBI related payment suspensions on EIDBI related
- hold</c> fraudulent payments stopped and hold fraudulent payments stopped and hold accountable<01:26
- </c> reduce or suspend payments. reduce or suspend payments.
- </c> provider, we suspend payments. provider, we suspend payments.
Bills:
HF3542
CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 6 on Public Safety Mar 2nd, 2026
Transcript Highlights:
- Lump sum payments.
- We call this the lump sum payments.
- Cynthia Mendoza: Historically, these payments were funded through salary savings from vacant positions
- One example of these costs are these lump sum payments for leave cashouts. They're called.
- With a lump sum payment, we have like $91 million that we're talking about.
Summary:
The Assembly Budget Subcommittee No. 6 on Public Safety heard updates on CDCR’s population projections and the preliminary fiscal impacts of Proposition 36. CDCR said its fall 2025 projections show continued declines in the institution and parole populations through June 2030, while noting Prop. 36 admissions are increasing but remain uncertain. The LAO said the administration’s Prop. 36 estimates may be somewhat low because they were based on only six months of implementation data, and the Department of Finance agreed the methodology is still developing. Committee members asked about the offenses driving admissions and the sentence-length impacts, and CDCR identified the main qualifying offenses and enhancements it is tracking. No votes were taken.
The committee then discussed CDCR’s request for $91 million ongoing for lump-sum leave cashouts for correctional officers and nurses. CDCR said vacancy reductions and prison closures have reduced the salary savings historically used to cover these costs. The LAO supported the funding only on a limited-term basis and urged more oversight and reporting on CDCR’s structural shortfall, while the Department of Finance argued ongoing funding is needed because leave liabilities are mandatory and salary savings are less stable. Members raised concerns about transparency, asked about leave buyback practices and accrued leave balances, and requested more information before the May Revision.
Members also heard CDCR’s proposals for $10 million for the final two statewide video surveillance projects and $15.2 million for Fire Watch coverage and related fire alarm work. The LAO supported the Fire Watch request as a one-time health and safety cost, while CDCR explained the aging prison infrastructure and the need for interim safety measures while longer-term replacement planning is developed. The committee then reviewed CDCR’s proposal to close the California Rehabilitation Center, which would produce a net General Fund reduction of $99.6 million in 2026-27 and ongoing savings of more than $150 million starting in 2027-28. CDCR said the closure is driven by sustained population declines and will include retention and realignment funding; the LAO recommended approval. Public comment focused on county funding for Prop. 36 implementation, opposition to using Prop. 36 as a reason to keep prisons open, and support for community-based rehabilitation programs. The hearing adjourned without any votes.
ID
Transcript Highlights:
- This really is about state payments and how we're going to handle some state payments and innovation
- in state payments going forward into the future and whether we're going to use some newer payment tools
- The point is to make payments work faster, with less fees, and to have a more efficient payment system
- Stablecoin is purely supposed to be used as a payment.
- It is not intended to replace a dollar; it is intended to make payments work better.
Committee:
House Business
CA
California 2025-2026 Regular Session
Assembly Budget Subcommittee No. 7 on Accountability and Oversight Aug 20th, 2025
Transcript Highlights:
- It caps the total state-directed payment amounts for inpatient hospital and nursing facility services
- at 100% of Medicare payment rates.
- For one year, it prohibits the payment of Medicaid funds to health care providers that are nonprofit
- It simplifies the payment plans by and large.
- payment error rate.
Summary:
The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time.
The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase.
During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer.
Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.
NH
Transcript Highlights:
- , starting effective July 1, 2025, that the payments paid to the attorneys will match the same payment
- , starting effective July 1, 2025, that the payments paid to the attorneys will match the same payment
- , starting effective July 1, 2025, that the payments paid to the attorneys will match the same payment
- , starting effective July 1, 2025, that the payments paid to the attorneys will match the same payment
- , starting effective July 1, 2025, that the payments paid to the attorneys will match the same payment
Committee:
Senate Finance
VT
Transcript Highlights:
- </c><00:57:48.160><c> in</c> um years between the rollover payment in um years between the rollover payment
- So different payment models.
- So different payment care providers.
- </c> would then be available, that payment would then be available, that payment per<01:26:16.920><c>
- </c> January 1st, '27 on changes to payment January 1st, '27 on changes to payment amounts<01:27:44.600
CA
California 2025-2026 Regular Session
Senate Budget and Fiscal Review Subcommittee No. 1 on Education May 20th, 2026
Transcript Highlights:
- And also, share with me about this advanced payment tools that you would use.
- normally give schools and colleges 12 payments at the end of each month.
- , so 13 payments in 2026-27.
- When we need savings, you only give districts 11 payments to get the savings.
- We give them 13 payments.
Summary:
The committee heard presentations on the Governor’s May Revision TK-12 education proposals, beginning with Proposition 98. The Department of Finance explained that the minimum guarantee rises by about $6.4 billion relative to the January budget across the three-year window, with a total of $124.9 billion in 2024-25, $125.1 billion in 2025-26, and $127.1 billion in 2026-27. Finance also described revised settle-up and reserve actions, including maintaining a $3.9 billion settle-up balance, increasing discretionary deposits into the Prop. 98 reserve, and ending with a projected reserve balance of about $10.3 billion. The Legislative Analyst’s Office said the overall estimates were reasonable but urged the state to fully fund the guarantee and use other budget actions or reserves to manage volatility rather than delay settle-up payments. Members questioned the rationale for leaving the $3.9 billion unsettled, and Finance said the amount reflects revenue uncertainty and the risk of overappropriating Prop. 98 if revenues later fall.
The committee then reviewed the Department of Education portion of the May Revision. Finance said the budget adds positions and state operations funding for CDE and includes trailer bill changes affecting community schools, preschool, literacy, special education, charter accountability, and other programs. The LAO highlighted concerns and recommendations on several proposals, including the size and structure of the LCFF increase, the special education base-rate increase, additional one-time community schools funding, literacy coach and math professional development augmentations, the multilingual screener, inclusive college grants, homelessness grants, and the proposed paid pregnancy disability leave mandate. CDE supported the special education increase, paid pregnancy leave, community schools, homelessness funding, literacy and math investments, and preschool parity, while urging more support for county offices of education and clearer definitions and implementation details for some programs. Finance said the paid pregnancy leave proposal would cost an estimated $218 million annually and is intended as a recruitment and retention measure.
In the Commission on Teacher Credentialing item, Finance proposed funding for legal staffing tied to SB 848 and educator misconduct cases, plus funding and fee changes to support a statewide transcript review platform for subject matter competency and additional support for the residency technical assistance center. The LAO said it had no concerns with the staffing for misconduct and SB 848, recommended the transcript review platform and related fee increase if the platform moves forward, and recommended rejecting the residency technical assistance center expansion because current funding lasts through 2029. CTC said the misconduct workload has grown over the last five to six years and that AI would be used only as a backstop to human review in the transcript system. Public commenters were split, with unions and education groups supporting special education, paid pregnancy leave, community schools, homelessness funding, and literacy investments, while opposing the $3.9 billion settle-up delay and the reduction to preschool COLA.
ID
Transcript Highlights:
- The average Social Security payment is approximately $48,000 per year per couple, or $2,000 per month
- Mark Wynn said the $60 million payment would essentially provide an interest-free loan to the state of
- He said pass-through businesses adjusted their payments in December to reflect the implications of the
- Wynn to help him understand the $60 million payment back to the state, which he assumed would be some
- He added that companies that adjusted their December payments would have lowered their payments because
Committee:
House Revenue and Taxation
NH
New Hampshire 2025 Regular Session
House Ways and Means (02/12/2025)
Transcript Highlights:
- </c> do is it has the state funding payments do is it has the state funding payments oh<00:29:04.760>
- </c> homeschooling that you receive a payment homeschooling that you receive a payment for<00:33:15.519
- </c> income taxation as a scholarship payment income taxation as a scholarship payment um<00:33:21.399
- </c> questions about whether those payments questions about whether those payments would<00:34:46.119
- </c> receives the benefit of the EFA payment receives the benefit of the EFA payment can<00:42:53.559
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.