Transcript Highlights:

• We have Ansel um budget staff member.
• </c> Similar to last year, the CIP budget Similar to last year, the CIP budget contains<00:51:47.440>
• . reservations. reservations.
• I rise in support with reservations for House Bill 1800 House Draft 1 relating to the state budget.
• The state budget is where policy budget.

Bills: HR203 , SB2802 , SB3081 , SB2902 , SB2005 , SB3252 , SB2096 , SB2095 , SB2046 , SB2999 , SB3103 , SB83 , SB2041 , SB3234 , SB3156 , SB3154 , SB2146 , SB2053 , SB2010 , SB2009 , SB2667 , SB3215 , SB2698 , SB2363 , SB2372 , SB2673 , SB2948 , SB2277 , SB2057 , SB3085 , SB3025 , SB2761

Transcript Highlights:

• Get these reserves in line.
• General Fund in the 2025 Budget Act.
• in 2026-27, the current budget year.
• They'll turn to reserves to try and use those reserves to sustain the staffing levels that they have,
• And we are as the budget committee.

Transcript Highlights:

• They'll be counted in the reserves.
• We sent over our definition of reserves, and what you all came back with, with your definition of reserves
• I mean, reserves, 2.5 million of the reserves, 25% of the reserves are in what we used to call the stabilization
• tax stabilization reserve.
• Is it accounted for the same way as what we do for budgeting? Or is it outside the budget?

Summary: The committee first heard Senate Bill 152, which would create a low-income telecommunications assistance program and continue support for rural broadband operations and maintenance through the State Rural Universal Service Fund. Senator Padilla and Office of Broadband Access and Expansion Director Jeff Lopez said the bill responds to the loss of federal affordability support and would help low-income households pay for broadband, while also preserving funding for rural carriers and maintenance. Supporters included the Greater Albuquerque Chamber of Commerce, the New Mexico Exchange Carrier Group, tribal telecom representatives, and several rural providers, who said affordability is the main barrier to service and that the bill would help families, students, and rural communities. A few witnesses opposed parts of the bill, arguing that the ARS funding should be redirected entirely to broadband affordability and that legacy POTS-line support should sunset. Committee members asked about ETC requirements, satellite and wireless options, rural density, and the sunset provision; the sponsor said the sunset on ARS would be removed and that stakeholder discussions would continue in the interim. The committee voted due pass on the Senate Finance Committee substitute for SB 152. The committee then took up Senate Rules Committee substitute for Senate Bill 132, which would add software planning and replacement to the state’s equipment replacement fund. The sponsor and expert said state agencies now rely heavily on software for core services and that planning for software alongside hardware would improve efficiency, security, and long-term sustainability. There was no opposition, and the committee voted due pass on the substitute. The meeting then shifted to a lengthy discussion of Senate changes to House Bill 2, the budget bill. Senate Finance staff described roughly 300 changes, including additional funding for fire response, early childhood, housing, health care, quantum initiatives, public safety, courts, transportation, education, and several social service programs. Members questioned cuts or reallocations affecting state employee pay, public school capital outlay, the state fair redevelopment, CARA, personal care services, the Office of Child Advocate, and other items. The presenters repeatedly defended the Senate’s use of funds as a way to preserve reserves while prioritizing health care, housing, education, and other recurring needs, and said reserves would remain above the target level even with the changes discussed.

Transcript Highlights:

• So when you take the budget necessary plus the reserves and then— Megan Gordon, Legislative Council:
• So when you take the budget necessary plus the reserves and then minus all, you know, the whole budgeting
• So when you take the budget necessary plus the reserves and then Thank you.
• So when you take the budget necessary plus the reserves and then minus all, you know, the whole budgeting
• So if the dollar amount budgeted for the interim fund or cash reserve would cause the fund to be in excess

Committee: Joint Legislative Audit and Fiscal Review Committee

Summary: The committee convened, approved the prior meeting minutes, and received a memo summarizing major audit items. The State Auditor’s office and outside auditors then presented a series of audits, many of which were clean with unmodified opinions and no findings, including the Bank of North Dakota, the Guaranteed Student Loan Program, the Office of the Governor, the State Treasurer, the Office of Management and Budget, the Department of Transportation, the Department of Environmental Quality, Lake Region State College, and the Office of the Governor. The North Dakota Stockmen’s Association audit was also clean overall, but it repeated findings about limited segregation of duties and auditor assistance in preparing financial statements, which the auditor said were expected to continue because of the organization’s small size. Committee members asked about out-of-state board addresses, and the association explained those members were North Dakota residents using South Dakota mailing addresses. Several audits did include findings. The Council on the Arts audit identified two issues: payroll charged to federal awards without supporting time records, and $12,825 in Cultural Endowment Fund spending that was not allowable under state law, including staff training, retreats, and executive director candidate travel. The Department of Public Instruction audit found unsupported scholarship applications in the paraprofessional-to-teacher program, but additional testing confirmed the funds were credited properly and students completed required school district work, so no improper payments were identified. The University of North Dakota audit found a lack of documentation and transparency in School of Law admissions decisions; the auditor said the law school used a holistic process but did not keep notes or evaluation tools to show why applicants were admitted, waitlisted, or denied. UND leadership said the school is in good standing with the American Bar Association and agreed better documentation is needed, and the auditor said the issue was the missing documentation, not ABA accreditation itself. The most extensive discussion centered on the North Dakota Racing Commission audit, which found four findings: overspending the promotion fund’s 25% operating cap, grant conditions not being met, improper breeder fund awards, and improper procurement. The auditor said promotion fund spending exceeded the cap by $327,447 and the fund balance dropped sharply over the audit period. Racing Commission director Bruce Johnson said the agency had become complacent, that grant requests were treated as routine, and that controls and documentation need to be tightened. He also explained that the breeder fund overpayments involved two horses whose ownership transfers were not properly documented before racing, and that the procurement issue stemmed from an advertising contract that proceeded without proper written procurement procedures after a misunderstanding with the State Procurement Office. The auditor said the Racing Commission will now be audited every two years because of the findings. The committee also received updates on Dakota College at Bottineau’s bank reconciliations, which Minot State University said had been brought current after an 18-month backlog, with only one account still needing cleanup; members asked for a written report on the corrective actions. The North Dakota Fair Foundation was reported to have dissolved, with remaining funds transferred to another nonprofit account for continued support of the state fair. Finally, the Department of Public Instruction provided an update on school meal debt, revising the earlier estimate to about $1.1 million based on incomplete district survey responses, and said the Anti-Lunch Shaming law likely increased meal debt because schools must feed students regardless of account balance. Members discussed the need for a more accurate year-end debt figure and possible future reporting at a later committee meeting.

Transcript Highlights:

• . ...of the Congressional Budget Office.
• To the Legislative Budget Board, I was just curious as to why.
• directly through the budgeting process in a transparent manner into the reserve.
• Relative to our $300-plus billion budget, all funds in, it's not a pronouncement.
• Could it somehow through budget execution...

Bills: SB 21 , SB21 , SB72 , SB140 , SB262 , SB370 , SB372 , SB495 , SB627 , SB703 , SB764 , SB842

Committee: Senate Business & Commerce

Transcript Highlights:

• We have very strong reserves.
• of reserves.
• We won't be in budget cuts.
• At the same time that the Budget Reconciliation Act—the federal Budget Reconciliation Act—is incentivizing
• We completed it on time and under budget.

Transcript Highlights:

• We kind of focused the Budget in Brief this year on, obviously, as Senator Lanier noted, the state budget
• That executive budget leaves reserves at 3.4 billion or 30%.
• fund for agency budgets.
• This is a budget, and the executive recognizes that this is a budget that we will have control over for
• The 45 million is In the budget for the SNAP overhead costs. Yes, it's in both budgets.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• In your briefing, I believe you said Army Reserves.
• Would this apply to all reserves of branches of service, correct, or is it just Army Reserve?
• Just the Army Reserve. Very well, thank you. Don't see any other questions.
• Forces Reserve.
• The reserve components, which include the Army, Air Force, Navy, Marine, and Coast Guard Reserves and

Summary: The Postsecondary Education & Workforce Committee held courtesy hearings on three bills before moving to executive session. House Bill 2443 would create an Armed Forces Reserve post-secondary education grant for members of the Armed Forces Reserve and their spouses or dependents, with repayment required unless the reservist serves one year for each year of benefit received. The prime sponsor said the bill is intended to extend educational support similar to what Washington National Guard members already receive. Testimony was generally supportive, emphasizing military readiness, recruitment, and fairness to reservists; one clarification was made that the bill applies to Armed Forces Reserve members broadly, not just the Army Reserve. House Bill 2567 would restore Washington College Grant and College Bound Scholarship award amounts for students attending four-year private, not-for-profit institutions. The sponsor and many students, school leaders, and private college representatives argued the 2025 cuts were inequitable, harmed low-income and first-generation students, and limited student choice. Supporters said the state’s dedicated financial aid account has grown and that the cuts disproportionately affected students at private institutions. Opponents, including representatives from public universities, argued state dollars should prioritize public institutions and questioned whether aid should be shifted away from state schools. Testimony was mixed but heavily pro, with sign-ins reported at 1,584 total, including 1,572 in support. House Bill 2498 would change nursing education oversight by limiting the Board of Nursing’s authority where programs are nationally accredited and by expediting approval for new programs. The sponsor and several community college leaders said the bill would reduce unnecessary barriers, speed program expansion, and help address the nursing shortage, especially in rural areas. The Board of Nursing, nursing educators, employers, and professional associations opposed the bill, arguing that state oversight is needed for public safety, Washington-specific workforce needs, and consistent standards, and that the board is already revising its rules through an open process. The committee then took executive action on two other bills: it passed Second Substitute House Bill 2363, allowing supervised music therapy practice for up to six months while exam results are verified, with an amendment delaying implementation to January 1, 2028; and it passed Substitute House Bill 2422, shifting private security guard license fees from applicants to employers and delaying implementation to November 1, 2026, by a 9-7 vote.

Transcript Highlights:

• Hold an unrestricted financial reserve over 50% of its annual operating budget unless three goals are
• reflect reserves.
• Reserves. So unrestricted versus the reserve funding that we have in our school.
• Reserves. So unrestricted versus the reserve funding that we have in our school.
• because this is a reserve, a percentage of your annual operating budget.

Summary: The committee heard several education-related bills. SB 1154 would let community college districts use best-value procurement for public works over $1 million. The author and community college supporters argued it would improve project quality and reduce delays and change orders, while contractor groups opposed it, saying the bill’s skilled-and-trained workforce and safety provisions would narrow competition and add subjectivity. The bill passed the committee on a 4-2 vote and was placed on call. SB 1347, a cleanup bill clarifying that stock albuterol may be kept in all public schools, including preschool programs, drew support from school nurses, respiratory care advocates, and a physician who said it would help schools respond to asthma emergencies. With no opposition, it passed unanimously and was placed on call. SB 1222 would create a pilot program designating a lead county office to help regions improve career technical education implementation; supporters said it would expand access and build regional capacity, while Senator Cabaldon questioned the need for another pilot and urged more direct funding instead. The bill passed and was placed on call. The committee also considered SB 1378, which would create a California Excellence in Service Learning designation for schools and districts. Supporters said it would recognize and encourage service-learning programs without mandating curriculum changes, while some members raised concerns about adding more state designations and administrative work. It passed and was placed on call. SB 1048 would create a Seal of Climate Literacy for high school students; supporters said it would recognize climate-related learning and connect students to green careers, while members cautioned against using seals to influence curriculum and noted equity and implementation concerns. It also passed and was placed on call. Finally, SB 1101 would require higher education institutions to notify students, faculty, and staff when their personal information is shared with federal agencies in OCR-related investigations or subpoenas. Supporters framed it as a privacy and free-speech protection in response to recent federal requests for campus information, while the author said the bill would not block lawful subpoenas but would require notice and limit voluntary disclosures. The committee discussed legal and constitutional issues, but no vote was taken in the portion provided.

Transcript Highlights:

• Any reservations? Any no consent? Any reservations? Any no reservations?
• Any reservations? Reservations.
• </c><01:26:22.560><c> Senator</c> Any reservations? Reservations. Senator Any reservations?
• </c><01:32:50.560><c> Senator</c> Any reservations? Reservations. Senator Any reservations?
• Reservations. Senator reservations? Reservations.

Transcript Highlights:

• in the budget, trailer bills, budget change proposals, and the like.
• How much of our budget, Cal Fire's budget, is allocated towards fuel mitigation, defensible space clearance
• Whether living on reservation lands, ancestral homelands, or in off-reservation communities, these trends
• and on the reservation.
• Certainly our reservation, many reservations, are on fault lines—lands that were not chosen, lands that

Summary: The Select Committee on Native American Affairs met on Barona tribal land to examine rising homeowners insurance costs affecting tribal communities, with opening remarks from tribal leaders and Assembly members emphasizing tribal sovereignty, the history of forced settlement in high-risk areas, and the need for the state to recognize mitigation work already being done on tribal lands. The committee heard that wildfire, drought, and other climate-driven disasters have sharply increased insurance premiums and reduced coverage options, especially for tribes located in rural or mountainous areas that were not chosen by the tribes themselves. Cal Fire Deputy Director Frank Bigelow described the state’s wildfire response and tribal engagement efforts, including tribal liaisons on incident management teams, a Southern Region Tribal Affairs Deputy Chief, cultural burning agreements, and more than $30 million in tribal wildfire resilience grants over the last three years. Members questioned why tribal communities receive only a small share of grants, whether Cal Fire should do more outreach and budget proposals for tribes, and whether mitigation work is being recognized by insurers. Bigelow said Cal Fire is working with insurers and the Insurance Institute for Business and Home Safety on mitigation standards, but acknowledged that more tribal outreach and participation are needed. Tribal chairpersons and fire chiefs testified that their communities are already investing heavily in fire protection through dedicated fire departments, fuel reduction, defensible space, prescribed burns, firebreaks, and home-hardening efforts, yet premiums remain high or coverage is denied. Barona leaders said premiums can range from $6,000 to $18,000 and urged insurers to assess properties individually rather than by broad high-risk zones. Soboba, Hamu, and Pechanga representatives described similar efforts and said grant rules, environmental review, and insurer practices can make it difficult to translate mitigation into lower rates. Several members suggested short-term state assistance or a tribal insurance mitigation fund, and the committee discussed the possibility of requiring insurers to better account for tribal mitigation and sovereignty in risk assessments.

Transcript Highlights:

• </c><03:35:20.960><c> The</c> reserve. Gentleman reserves. The reserve. Gentleman reserves.
• </c><03:51:24.399><c> Uh,</c> reserve. The gentleman reserves. Uh, reserve. The gentleman reserves.
• The gentleman<03:55:50.199><c> reserves.</c> gentleman reserves. gentleman reserves.
• </c><04:16:52.640><c> I</c><04:16:52.880><c> reserve.</c> Kentucky reserves his time. I reserve.
• Kentucky reserves his time. I reserve.

Bills: HB1804 , HB1642 , HB1621 , HB1634 , HR789 , HR787 , HB1816 , HB3490 , SB160

Keywords: 7(a) loan program, Small Business Administration, SBA, small business lending, loan brokers, loan consultants, referral agents, loan intermediaries, fraud oversight, transparency, reporting requirements, loan fees, referral fees, interest rates, business financing, small business loans, lender oversight, application assistance, Congressional reporting, small business

Transcript Highlights:

• The budget does that by leaving a positive SFEU balance of $4.5 billion in budget year 2026-27 and $2.1
• Conservancy's budget.
• Second, rather than withdrawing and failing to deposit into the Budget Stabilization Account, our reserve
• We think, in lieu of that, it would make more sense to put it into our traditional budget reserve so
• budget window.

Summary: The subcommittee heard an overview of the May Revision from the Department of Finance and the Legislative Analyst’s Office, focused on resources, environmental protection, energy, and related budget issues. Finance said the May Revision keeps the budget balanced in 2026-27 and 2027-28, narrows the structural deficit, and proposes major investments in natural resources, including Proposition 4 bond funding for the Golden Gate Fields acquisition, wildlife refuge and wetland projects, Fort Ord Dunes campground operations, Healthy Rivers and Landscapes, wildfire-human coexistence, and beverage container recycling. The LAO praised stronger-than-expected revenues but argued the state still has a structural deficit and is relying too heavily on reserves, recommending more reserve deposits and fewer new discretionary expenditures. Members questioned several proposals, especially the Golden Gate Fields purchase and the Healthy Rivers and Landscapes Program. Agency officials said the Golden Gate Fields site is a time-limited opportunity, would be remediated by the current owner, transferred to East Bay Regional Park District after closing, and restricted to park/open-space uses rather than commercial development. On Healthy Rivers and Landscapes, Finance and the Natural Resources Agency said the $25 million request would help launch year one of the program, support scientific monitoring, and maintain commitments to environmental flows and habitat restoration; the LAO said the request was premature because the Bay-Delta plan has not yet been formally adopted and the state’s total funding commitment remains unclear. Officials also discussed water storage, subsidence, and the need for ongoing investments in aquifer recharge, aqueduct repairs, and recycling. The committee also reviewed a proposed $1 million shift for the Coexisting with Wildlife Initiative. Fish and Wildlife and the Cattlemen’s Association said the money would support limited-term staffing, deterrence tools, and livestock-loss compensation, while acknowledging the amount is modest compared with the need. Members emphasized the growing human-wildlife conflict problem and the importance of nonlethal deterrence and public education. The discussion then turned to greenhouse gas reduction fund revenues and transit; members warned that lower auction revenues and possible CARB rule changes could leave little or nothing for Tier 3 programs such as transit, clean water, and air-quality programs. Finance and the LAO said the Legislature should plan for multiple revenue scenarios and consider whether the existing cap-and-invest spending framework still matches current revenue expectations and priorities.

Transcript Highlights:

• Any reservations?
• Any reservations? Recommendations to pass with amendments. Any reservations? Reservation for Rep.
• Any reservations? Reservation for Rep. Alost? Any other reservations?
• Any reservations? Any reservations? Reservation for Rep. Alos? Any other reservations?
• Okay, Vice Chair, for the vote. reservations reservations for rep alos reservations reservations for

Committee: House Finance

Transcript Highlights:

• A district may hold an unrestricted financial reserve over 50% of its annual operating budget unless
• reflect reserves.
• Reserves. So unrestricted versus the reserve funding that we have in our school.
• Reserves. So unrestricted versus the reserve funding that we have in our school.
• because this is a reserve, a percentage of your annual operating budget.

Committee: Senate Education

Summary: The committee heard several education-related bills. SB 1154 would allow community college districts to use best-value procurement for public works projects over $1 million. The author and community college supporters argued it would give colleges flexibility similar to K-12, UC, and CSU and help avoid delays and costly change orders. Contractors and electrical subcontractors opposed the bill, saying its skilled-and-trained workforce requirement and safety provisions would narrow competition and disadvantage small and nonunion firms. The bill passed the committee on a due-pass vote and was placed on call. SB 1347 would clarify that stock albuterol may be stocked in all public schools, including preschool programs. The author and a physician testified that the bill would remove confusion in existing law and improve access to emergency asthma medication for students. School nurses, respiratory care advocates, and small school districts supported the measure, and there was no opposition. The bill passed unanimously on a due-pass to the floor vote and was placed on call. SB 1222 would create a pilot program to designate a lead county office to help regions struggling with career technical education implementation. Supporters said many students remain disconnected from school and work and that the bill would spread proven regional CTE practices. Some committee members questioned whether another pilot was needed, arguing existing CTE programs need more funding and fewer new structures, while the author and sponsor said the bill would build regional capacity and share successful models. The bill passed to Senate Appropriations and was placed on call. SB 1378 would create a California Excellence in Service Learning Designation Program to recognize schools and districts with strong service-learning programs. Supporters said it would validate existing work and encourage civic engagement, while one member raised concerns about adding more designations and workload for schools. The bill passed as amended to Senate Appropriations and was placed on call. SB 1048 would create a Seal of Climate Literacy for high school students demonstrating climate science knowledge through coursework and hands-on learning. Supporters, including the Department of Education and climate education groups, said it would align students with growing clean-energy careers; some members cautioned against adding more curriculum-related seals and noted equity and implementation concerns. The bill passed to Senate Appropriations and was placed on call. Later, SB 1101, the Higher Education Data Sharing Transparency Act, was presented. It would require CSU, community colleges, independent colleges, and request UC to notify students, faculty, and staff when their personal information is shared with federal agencies such as the Office for Civil Rights, and to limit disclosure to what is legally required. Supporters said recent federal investigations and subpoenas have created fear and a lack of transparency on campuses. Committee discussion focused on subpoena authority, constitutional limits, and whether notice should be required; one member said she would abstain because of legal concerns, while another said the bill would continue to be examined in the next committee. The transcript ends during discussion of SB 1101 before a final vote is recorded.

Transcript Highlights:

• In the three-year budget window, the Governor's budget shows an increase of about $7.5 billion.
• to rebuilding the reserve.
• the 2025-26 budget.
• budget.
• At the same time, cash reserves, which are a component of total reserves.

Transcript Highlights:

• Our budget reserve now stands at $3.4 billion.
• Our<00:02:52.720><c> budget</c><00:02:53.040><c> reserve</c><00:02:53.440><c> now</c><00:02:53.680><c
• Our budget reserve now stands at $3.4 billion.<00:02:56.080><c> The</c><00:02:56.319><c> reserve</c><
• reserve, bringing total cash flow and budget reserves to $3.8 billion.
• </c> its cash balances, including the budget its cash balances, including the budget reserve.<00:17:40.799

Summary: Minnesota Management and Budget Commissioner Aaron Campbell, State Economist Dr. Tony Becker, and State Budget Director Anna Mingi presented the November 2025 budget and economic forecast. Campbell said the state now projects a nearly $2.5 billion surplus at the end of the 2026-27 biennium, about $575 million better than the end-of-session estimate, but also a projected negative balance of about $2.9 billion in FY 2028-29, reflecting a worsening structural imbalance. He said the budget reserve stands at $3.4 billion, with cash flow and budget reserves totaling $3.8 billion after a $244 million addition, and emphasized that Minnesota’s AAA bond rating and reserve policy remain strengths even as future sessions will need to address the long-term gap. Becker said the national economic outlook has changed only modestly since February, but growth remains below trend through the forecast horizon. He cited slower consumer spending, weak private investment, continued tariff uncertainty, lower projected immigration, and modest inflation that stays near 3% through 2026 before easing. Revenue forecasts for the next biennium were revised up to $66.3 billion, driven mainly by higher individual income tax receipts and other revenue, partly offset by lower sales and corporate tax forecasts. He also noted risks from federal policy changes, the recent shutdown’s effect on data availability, and possible equity market volatility. Mingi said general fund spending is projected to rise sharply, with current biennium spending up $3.4 billion from end-of-session estimates and planning-year spending up $1.9 billion. She attributed much of the increase to carryforward from prior one-time appropriations, discretionary inflation, and especially Medical Assistance. MA costs are projected to be about $2.5 billion higher over 2025-29, largely because managed care rates rose more than expected due to higher utilization and higher-cost services, including pharmacy costs, while long-term care and disability waiver costs also increased. In response to questions, officials said the federal reconciliation bill had only a relatively small effect on the health care changes, and that the carryforward amounts reflect unspent prior appropriations that now show up in later years rather than new spending.

Transcript Highlights:

• I actually was in support with reservations.
• I actually was in support with reservations.
• I actually was in support with reservations.
• better disclosures, better understanding of reserves.
• </c> change necessary to get better reserve change necessary to get better reserve funding<00:46:56.920

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.

Transcript Highlights:

• We clarify that if a step-in agreement terminates, all money remaining in the reserve fund from the reserve
• Are there any reservations or no votes?
• </c><01:30:13.320><c> and</c> duties of Department of budget and duties of Department of budget and finance
• remaining in the reserve fund from the<01:31:07.520><c> reserve</c><01:31:08.000><c> fees</c><01:31:
• </c> reserve fee requirement and the reserve reserve fee requirement and the reserve fund<01:31:52.920

Committee: House Energy & Environmental Protection

Summary: The Energy and Environmental Protection Committee met on February 13, 2025, after a brief recess for a concurrent hearing. The committee heard testimony on several measures, including HB 332 on recycling and lithium-ion batteries, HB 256 on environmental protection and federal air standards, HB 348 on single-use plastics in lodging establishments, HB 810 on noise pollution and helicopter-related civil actions, HB 505 on Red Hill coordination, HB 975 on carbon sequestration incentives, and HB 974 on utility financing and step-in agreements. Testimony was generally supportive on HB 256, HB 348, HB 505, HB 975, and HB 974, while HB 332 drew both support and opposition, including concerns from the Consumer Technology Association about battery recycling policy. On HB 975, OPSD supported the program but urged language to prevent use for carbon offsets, and the committee discussed how the program would be monitored and reimbursed. On HB 974, the chair summarized extensive amendments addressing reserve fees, revenue definitions, trust funds, default procedures, and customer credits, while noting the Consumer Advocate’s changed view that a reserve fee may not be constitutionally required. In decision making, the committee adopted amendments and recommended passage for HB 332, converting it into a working group to study recycling of small- and medium-format lithium-ion batteries, with members from state agencies and industry and a note that an appropriation may be needed. HB 256 was passed with amendments to clarify compliance with federal law unless standards become more stringent. HB 348, HB 810, and HB 505 were each passed as is. HB 975 was passed with amendments, including language to prevent use of the program for carbon offsets and a note that dollar amounts would be blanked out and addressed in the committee report. HB 974 was also passed with amendments after the committee reviewed the proposed changes and discussed the reserve fee issue. The committee additionally noted that HB 1476 had previously been deferred and would remain deferred, and the meeting concluded with adjournment.

Transcript Highlights:

• Representative Garcia said she had reservations. Representative Pick said reservations.
• Representative Matoto said reservations. So ordered. Representative Reyes Oda said reservations.
• Representative Matoto said reservations. So ordered. Representative Reyes Oda said reservations.
• Representative Martin said, I rise with reservations. Representative Kila said reservations.
• Reservations, please. So ordered. Representative Kila said reservations. So ordered.