Transcript Highlights:

• In education, this bill adjusts funding for special education financial aid programs to better align
• AB 121, Education Finance, is the Education Omnibus Budget Trailer Bill.
• For the film tax credit expansion, it increases the allocation cap under the Film Tax Credit Program
• In addition, I, personally, as an educator for almost 30 years, am very happy, Personally, as an educator
• An employer can take a health care credit. There's no parameters around the health care credit.

Summary: The Assembly Budget Committee held an informational hearing on the final three-party budget agreement and related trailer bills, with the Department of Finance outlining the major budget bill and omnibus measures. Finance described a package built around balancing the state budget amid economic uncertainty, preserving core health and safety-net programs, and making significant ongoing reductions in some state programs. The budget bill included major items such as shifting $1 billion from the General Fund to the Greenhouse Gas Reduction Fund for Cal Fire, funding universal transitional kindergarten, deferring some UC and CSU funding, supporting foster care and homelessness programs, providing Proposition 36 implementation funding, and achieving Medi-Cal savings through changes to benefits and eligibility. The committee also heard that votes on the budget bills were expected later in the week and the following Monday. Finance then walked through the trailer bills, including health, human services, early learning, education, resources, energy, transportation, labor, housing, tax, public safety, courts, general government, cannabis, and energy-related measures. Notable provisions included a Medi-Cal enrollment freeze for certain adults, new premiums and benefit changes for some immigrants, child care COLA changes, education funding for literacy, teacher support, universal meals, and community college student support, as well as resource and climate measures affecting Cal Fire staffing and energy permitting. The housing trailer bill drew the most discussion, with provisions on CEQA streamlining, a vehicle miles traveled mitigation banking program, a renters’ credit trigger, and a six-year moratorium on new residential building standards. Members also discussed a film tax credit expansion, cannabis enforcement funding, a tribal police pilot program, and changes to tax policy, including military retirement income exclusions and wildfire settlement payment exclusions. Committee members largely praised the staff and the budget process, but several raised concerns and asked detailed questions, especially about the housing trailer bill’s new wage standards, tribal consultation provisions, and possible effects on prevailing wage protections. Finance explained that the housing language was intended to set wage floors for market-rate projects receiving CEQA streamlining, with different county-based tiers and a notwithstanding clause preserving existing prevailing wage laws. Members also questioned the size and timing of funding for the Children and Youth Behavioral Health Initiative, Clean Cars for All, Proposition 36, and the film tax credit expansion. Other members highlighted support for public safety, veterans’ tax relief, child care providers, housing production, and higher education, while some expressed concern that the budget’s policy changes were being negotiated too quickly or without enough stakeholder input.

Transcript Highlights:

• We're talking education today, obviously.
• We're talking education today, obviously.
• recovery courses, dual credit, and other incredibly valuable gaps that we have in our public education
• One of the issues for me is required credit versus elective credit.
• One of the issues for me is required credit versus elective credit.

Summary: The Joint Finance-Appropriations Committee first approved a technical correction to the Health and Welfare Division of Licensing and Certification budget, restoring 2 FTP that had been cut in error while leaving funding intact. The committee then adopted language extending the deadline for Medicaid’s state plan amendments and waivers related to the move to comprehensive managed care, after discussion of delays tied to the MMIS procurement and litigation. Both items received do-pass recommendations. The committee next considered Public School Support, beginning with a FY 2026 supplemental for the Division of Student Support to add $7.8 million in federal spending authority so schools can access full federal grant allocations. That supplemental passed. For FY 2027, members debated several competing motions on the Student Support Division budget, including proposals to reduce classified staff funding, add health insurance funding, and cut virtual school-related funding. After multiple failed motions, the committee ultimately approved a motion reducing the general fund by $14,751,600, including a $3 million reduction to virtual school discretionary funding, and adopted related language. Additional language was also approved to require reporting on virtual enrollments, shift English learner funding from central services to direct LEA distribution, modify technology curriculum contract requirements, require special education expenditure reporting, and reduce transportation funding by $7.5 million by undoing a prior statutory change. The committee then turned to the Idaho Digital Learning Academy. After extensive debate over alleged double-funding, rural access, and the absence of a policy bill, members rejected a larger $15 million reduction and then approved a smaller $13,500 reduction tied to the pending policy bill’s fiscal note. They also adopted language restricting PCIF access, requiring compliance reporting on DEI-related courses, and requesting a detailed report on IDLA expenditures, enrollments, and usage, including synchronous versus asynchronous instruction and course-level data by LEA. The meeting ended with notice that the committee would next take up the Secretary of State budget and trailer bills, with an additional 7:30 a.m. meeting before the Monday session.

Transcript Highlights:

• production income tax credit.
• House Bill 62's credit is performance-based.
• The first question I have: the 10 years' worth of credit, or tax credit, is that because at that point
• One of the benefits that I mentioned in the opening was that the credit, there's no credits allowed unless
• It's not a permanent credit.

Committee: House House Energy, Environment & Natural Resources

Transcript Highlights:

• The House Education Committee will come to order.
• and special education.
• educators.
• My hope is that the bill will finally educate the adults entrusted with my child's education so they
• My hope is that the bill will finally educate the adults and trusted with my child's education so they

Bills: HB1295 , HB2007 , HB2262 , HB2636

Committee: House Education

Keywords: reading instruction, structured literacy, early literacy, dyslexia, phonics, phonological awareness, language comprehension, vocabulary, fluency, oral language, orthographic knowledge, multi-tiered system of supports, MTSS, screening assessments, intervention, reading intervention, elementary education, kindergarten, first grade, second grade

Transcript Highlights:

• uses a credit card from sales tax.
• someone uses a credit card from sales tax.
• -12 education...
• That was my ask to the Department of Education.
• Greg Rogers, Department of Education. Courtney Sallis Ford, Department of Education.

Committee: All JBC-SPECIAL LANGUAGE

Transcript Highlights:

• We did make changes to specific tax credits. We did make changes to inventory tax credit.
• Specific tax credits. We did make changes to inventory tax credit.
• But in the tax credit work,... A minute about the specific tax credits that we did change.
• Higher education at 10.8%, health care at 27%, and K-12 education, largely due to the Minimum Foundation
• And that the credit went from around a $30 million credit till when I was elected, it was almost $600

Committee: House Ways & Means

Transcript Highlights:

• So, under current law, Minnesota's dependent care credit is tied to the federal dependent care credit
• Under OB, the federal credit is expanded. So, the credit rate starts at 50%.
• The credit rate starts at 50%.
• Sort of an expansion credits.
• freedom tax credits.

Bills: HR1 , HF387

Committee: House Taxes

Transcript Highlights:

• It references the Department of Education, the State Board of Education, and related correctional education
• of Education, the State Board of Education, and correctional education services.
• From the Department of Education, the education service program, except to the extent necessary to provide
• that the education service education program...
• the education service education program may meet any applicable education requirements.

Bills: LB737 , LB753 , LB788 , LB913 , LB1055 , LB1195 , LB1216 , LB1256 , LB429 , LB721 , LB722 , LB727 , LB743 , LB745 , LB749 , LB778 , LB787 , LB365A , LB823 , LB900 , LB903 , LB940 , LB954 , LB1127 , LB1127A , LB1205 , LB1240 , LR293 , LR296 , LR422 , LR505 , LR507

Transcript Highlights:

• Welcome to the Assembly Budget Subcommittee on Education Finance.
• So the credit moved, but the value didn't.
• credit mobility—credit that not only transfers, but transfers with meaning and applicability.
• There are efforts underway to use competency-based education approaches, to use credit for prior learning
• Use credit for prior learning approaches.

Summary: The committee heard an overview of the California Community Colleges budget proposal, including Proposition 98 funding, a 2.41% COLA for apportionments, enrollment growth funding, repayment of an apportionment deferral, and one-time investments for a student support block grant and deferred maintenance. The Department of Finance described the Governor’s package as providing significant new resources, while the LAO recommended prioritizing COLA and enrollment growth within available funds but raised concerns about some smaller proposals, including making the Healthy School Food Pathways Program ongoing and adding more funding for credit for prior learning before outcomes are known. The Chancellor’s Office supported the COLA, enrollment growth, and one-time investments, and said current projections suggest enrollment growth closer to 3%, with about $85 million to $90 million in ongoing costs if fully funded. Members focused heavily on enrollment growth, the 10% district cap, and whether the state should continue funding growth in the current year and budget year. The Chancellor’s Office said some districts, especially in the Inland Empire and Central Valley, are growing rapidly and that about seven districts are above the cap, with roughly 1,563 FTES and about $30 million in ongoing costs tied to that issue. Members also discussed hold-harmless districts and whether declining campuses should be required to produce turnaround or right-sizing plans. The Chancellor’s Office said districts are already having local conversations and that state funding provides time to adjust, but no formal plan requirement was proposed. The committee then took up common course numbering, where the Chancellor’s Office said all 115 community colleges have implemented the first phase and more than 550,000 students enrolled in the first six commonly numbered courses. The office argued that CCN improves clarity but does not yet guarantee that credits will transfer with full value across UC and CSU, because articulation is still handled campus by campus and can require more than 3,500 separate reviews. Members expressed concern that students can still be forced to retake courses such as calculus or ethnic studies even when they have the same common number, and urged the systems to develop a stronger statewide articulation mechanism tied to outcomes and transparency. The item was left open. Finally, the committee heard the Governor’s proposal to make Calbright College’s funding ongoing at $53.1 million. The LAO recommended instead transitioning Calbright to the student-centered funding formula, with one-time bridge funding in the meantime, arguing the Governor’s proposal lacks a clear enrollment-based rationale and performance expectations. Calbright’s leadership defended the college’s competency-based, flexible model for adult learners, citing more than 6,800 students served, over 2,200 certificates awarded, and wage gains for graduates; they said enrollment is expected to grow from about 7,000 students now to roughly 8,000 to 9,000 next year and around 10,000 over the next couple of years. Members pressed for clearer enrollment and funding data before deciding how Calbright should be funded going forward.

Transcript Highlights:

• <00:26:32.279><c> bills</c><00:26:33.279><c> and</c> educational bills and educational bills and uh<00
• 12-credit threshold.
• credit would be.
• So, she was given not just 11.9, 11.99 credits. There's no such thing as 0.99 credits.
• ,</c> the fiscal note, we have six credits, the fiscal note, we have six credits, uh,<00:48:59.520><c

Committee: Senate Higher Education

Transcript Highlights:

• in the low-income housing tax credit program.
• However, the credit expired at the end of last year.
• In areas that need it most, the credit expired at the end of last year.
• This credit doesn't just encourage hiring.
• This credit doesn't just encourage hiring.

Committee: House Revenue and Taxation

Transcript Highlights:

• I am proud to present the Fair Pay for Educators Act.
• to explore a career technical education.
• opens the door for tax credits for our farmers, for tax credits for different retail industry, for our
• And that tax credit has been on hold for many years to deal with our budget deficits, but that tax credit
• The climate credit gets redistributed. You may continue.

Summary: The Assembly met after a quorum call and first dealt with a procedural dispute over four amendments to AB 1240. The Speaker ruled the amendments out of order as not germane, and the Assembly sustained that ruling on a 49-16 vote. Members then added co-authors to several consent-calendar resolutions, including measures on the National Conference of State Legislators, Suicide Prevention Awareness Month, ALS Awareness Month, and Men’s Mental Health Month, before adopting the consent calendar. The chamber also heard guest introductions, including a welcome for Oakland Mayor Barbara Lee, and took up a motion to bring AB 41 up out of file, which failed 19-48. The bulk of the meeting was floor action on a long series of bills and resolutions, many of which passed with broad bipartisan support. Measures approved included ACR 40 supporting immigrant students and FAFSA privacy; AB 917 on permanent status for certain school employees; AB 985 on anesthesia access; AB 7 and AB 42 on higher education and student services; AB 245 providing property tax relief for wildfire victims; AB 255 allowing funding for drug-free recovery housing; AB 279 updating K-12 library standards; AB 289 creating a pilot for automated speed enforcement in highway construction zones; AB 291 on an educator apprentice program; AB 327 addressing swatting; AB 340 on confidential union communications; AB 341 creating an oral health technical assistance center for people with disabilities; AB 356 on San Diego health care infrastructure; AB 410 on bot disclosure; AB 476 on copper theft enforcement; AB 477 on educator pay targets; AB 485 on stolen wages and business licensing; AB 487, the insurance committee’s technical omnibus bill; AB 573 on tobacco retail license fees; AB 598 on school mapping technology; AB 635 on mobile home law enforcement referrals; AB 651 on remote participation for incarcerated parents in dependency hearings; AB 654 on homelessness hotline assistance in Los Angeles County; AB 662 creating a South County higher education task force; AB 667 on language access in professional licensing; AB 669 limiting early denial of addiction treatment; AB 670 on naturally occurring affordable housing; AB 695 on online continuation of community college for deported students; AB 723 on disclosure for digitally altered real estate images; AB 727 placing Trevor Project information on student IDs; and AB 736, a $10 billion affordable housing bond for the June 2026 ballot, which passed on a 61-11 urgency vote after extensive debate. Debate on AB 736 was the most extensive of the day, with supporters arguing the bond would help address California’s housing crisis and give voters a chance to weigh in, while opponents criticized the state’s bond debt and past spending results. The Assembly then recessed for caucus meetings and later returned to continue the daily file, where additional measures were taken up, including AB 798 adding diapers and wipes to the emergency food bank reserve program, which passed 56-0, and AB 821 on career technical education, which was presented as bipartisan-supported as the transcript continued.

Transcript Highlights:

• It lowers the maximum lifetime credit cap on state grant awards from 180 credits to 120 credits.
• It lowers the maximum lifetime credit cap on state grant awards from 180 credits to 120 credits.
• It lowers the maximum lifetime credit cap on state grant awards from 180 credits to 120 credits.
• It lowers the maximum lifetime credit cap on state grant awards from 180 credits to 120 credits.
• </c><01:13:45.280><c> um</c> credit or credit bureau reporting um credit or credit bureau reporting um

Summary: The committee took up House File 2312 and first adopted the DE1 amendment, after which the amended bill was discussed. Nonpartisan fiscal staff walked through the spreadsheet and explained the bill’s higher education budget changes, including increases for state grants and tribal college assistance, unchanged funding for several existing programs, and reductions or eliminations for items such as state work study, summer academic enrichment, student loan counseling, concurrent enrollment, and the student parent support initiative. Staff also noted transfers to special revenue funds, the cancellation and reappropriation of ALS research funding, and a new licensing/registration revenue item. The committee was told the bill met the committee’s zero target overall, with a net general fund change of zero relative to the February forecast, while also adding some non-general fund expenditures for program licensing and registration. Members asked several questions about the transfers and specific line items, including whether any new special revenue accounts were being created, the foster care wraparound services line, and the treatment of the University of Minnesota and Centric Care partnership. Staff explained that the transfers generally did not create new accounts, that some items were not in the base, and that the U of M/Centric Care partnership was a one-time appropriation in the prior bill but was now being built into the base at a different amount. The University of Minnesota section also included new or continued funding for medical school development, health training restoration, emergency assistance grants, ALS research, and a weather resiliency program, while the Mayo Foundation section eliminated funding for Mayo Medical School and the Mayo family medicine residency program. The policy portion of the DE1 was then introduced. It included a maximum tuition and fee amount for state grants, direct appropriation of emergency assistance grants to Minnesota State, a juvenile justice appropriation for Metropolitan State University, and the ALS research reappropriation to the University of Minnesota. It also contained repealers for unfunded programs, including a delayed repealer for the student parent support initiative. In the higher education policy article, the bill would allow Minnesota State to offer applied doctoral degrees in cybersecurity, make technical changes to hunger-free campus and sexual misconduct procedures, extend pregnant and parenting student protections to private institutions, allow OHE to retain up to 10% of certain competitive grants for administration, consolidate reports, change the state grant formula so negative FAFSA contributions count as zero, and reduce the state grant lifetime credit cap from 180 to 120 credits. The Northstar Promise provisions would limit tuition and fees to resident rates and require MnState, and request the University of Minnesota, to ensure eligible students receive the benefit.

Transcript Highlights:

• costs further along in their education.
• costs further along in their education.
• Incredible Educators so I asked my Incredible Educators so I asked my daughter<00:12:18.480><c> she's
• <00:57:57.200><c> experience</c> educational experience educational experience quality<00:57:59.960><
• </c><01:22:14.800><c> another</c><01:22:15.120><c> credit</c> still earn Civics credit another credit

Committee: Senate Education Finance

Transcript Highlights:

• Only 16% of eligible youth receive this credit in 2024. Better outreach is required.
• This credit is the first and only tax credit in the nation for current and former foster youth.
• They're getting that refund not just from this credit, but from other credits they're eligible for as
• You see, 2023 was the first year the foster youth tax credit became available.
• the California earned income tax credit.

Summary: The Assembly Committee on Human Services met to hear several measures focused on children, foster youth, farmworker families, and disaster assistance. AJR 12, recognizing May 2025 as Head Start Month and urging Congress and the President to protect and increase Head Start funding, was presented by Assemblymember Hadwick on behalf of Assemblymember Arambula. Testimony emphasized Head Start’s role in early education, health, and family support, especially in rural and low-income communities. The resolution passed 6-0. The committee also heard SB 624, which would expand access to the California Foster Youth Tax Credit by requiring counties to mail notices and provide guidance to non-minor foster youth about filing taxes and claiming the credit. Supporters from John Burton Advocates for Youth and former foster youth described the credit as a meaningful poverty-reduction tool that helps with rent, transportation, and other basic needs. Members praised the bill, and it passed 7-0 as amended to the Assembly Appropriations Committee. SB 778 would broaden eligibility for the Migrant Child Care and Development Program by redefining migrant agricultural worker family and allowing self-certification of income eligibility. Support came from the Mexican American Opportunity Foundation, California Citrus Mutual, and First 5 California, with witnesses saying the changes would ease enrollment for farmworker families facing seasonal and verification challenges. The bill passed 7-0 to Appropriations. The committee also approved a consent calendar containing SB 444, SB 471, and SB 792, all on a 7-0 vote. Finally, SB 739 would authorize the Department of Social Services to check whether counties in disaster areas can provide timely CalFresh and Disaster CalFresh services, aimed at improving coordination when local systems are damaged or overwhelmed. Supporters said the bill would help protect access to food benefits after disasters, and members noted its importance in light of recent Los Angeles County emergencies. The bill passed 7-0 to Appropriations, and the meeting adjourned after all items were acted upon.

Transcript Highlights:

• Only 16% of eligible youth receive this credit in 2024. Better outreach is required.
• This credit is the first and only tax credit in the nation for current and former foster youth.
• They're getting that refund not just from this credit, but from other credits that they're eligible for
• the California earned income tax credit.
• and to continue to ensure that young people are able to take advantage of this tax credit.

Committee: House Human Services

Summary: The Assembly Committee on Human Services heard several measures focused on child welfare, early childhood services, and access to public benefits. AJR 12 recognized May 2025 as Head Start Month and urged Congress and the President to protect and increase Head Start funding. Supporters described Head Start’s role in providing education, health, nutrition, and family support services, especially in rural and low-income communities. The resolution passed 6-0, later updated to 7-0 with an add-on vote. SB 624, the Foster Act, would expand access to the California Foster Youth Tax Credit by requiring county child welfare agencies and juvenile probation departments to mail information to non-minor foster youth and by directing CDSS to issue guidance on outreach and filing support. Testimony emphasized that many eligible youth do not claim the credit, while those who do often receive meaningful refunds that help with rent, transportation, debt, and other basic needs. The bill was supported by foster youth advocates and committee members and passed 7-0 to the Assembly Appropriations Committee. SB 778 would broaden eligibility for the Migrant Child Care and Development Program by redefining migrant agricultural worker family and allowing self-certification of income eligibility. Supporters said the change would ease enrollment for farmworker families facing seasonal work, language barriers, and verification challenges. The bill passed 7-0 to Appropriations. The committee also approved the consent calendar, which included SB 444, SB 471, and SB 792, all on a 7-0 vote. Finally, SB 739 would authorize CDSS to check whether counties in federally declared disaster areas can provide timely CalFresh and Disaster CalFresh services, aimed at preventing delays when local systems are damaged or overwhelmed. Supporters said the measure would help ensure families can access food benefits during emergencies. The bill passed 7-0 to Appropriations, and the committee adjourned after all items were processed.

Transcript Highlights:

• </c><02:02:59.520><c> tax</c><02:02:59.920><c> credit</c> recipient of an education tax credit recipient
• The education tax credit was set up back in 2012, and the tax credit allows use of 85% of what you're
• </c><02:08:20.079><c> tax</c><02:08:20.400><c> credit</c> that are in the education tax credit that are
• </c> education tax credit they receive education tax credit they receive $5,959. $5,959. $5,959.
• </c> taking an education tax credit if they taking an education tax credit if they were<02:13:32.239>

Committee: House Education Funding

Transcript Highlights:

• , P1 or P2, that receives a cash line of credit.
• And so it will not receive a line of credit.
• Whenever a project doesn't get a line, a cash line of credit or a non-cash line of credit, it will—it's
• Every Priority 1 in the bill got a line of credit.
• Every Priority 1 in the bill got a line of credit.

Committee: House Ways & Means

Transcript Highlights:

• CTE educators, school nurses must have the same level of professional service.
• and for public education.
• It was in those classrooms that I learned the transformative power of education.
• And that was subject to then Commissioner Jeff Wheeler from the Department of Education.
• We were asking for Group 4... ...classification for correctional educators.

Committee: Joint Joint Committee on Public Service

Summary: The Joint Committee on Public Service held a hearing on a wide range of credible service and retirement-related bills, with testimony largely focused on allowing public employees to buy back prior service time or receive more appropriate retirement classifications. Bills discussed included retirement buyback for Joint Base Cape Cod firefighters (H. 4317), clarification of call firefighter buyback rights (H. 2883/S. 1915), veterans’ buyback (H. 2957), a Bridgewater State University police death-benefit/heart-law issue (filed by Rep. Gallagher), unpaid parental leave buyback for municipal employees (H. 2946), school nurse creditable service (H. 2887/S. 1787), former private/parochial school teacher buyback (S. 1900/H. 2873), Massport police retirement classification (S. 1888), contract employee buyback (H. 2795), Retirement Plus late entry (H. 2792), CVTE/teacher-related buyback issues (H. 2762), Peace Corps/AmeriCorps creditable service (H. 2927), and institutional school teacher retirement fairness (H. 2757). Several speakers also referenced related bills for teachers and nurses that had been heard previously or were filed in parallel in the other branch. Testimony was overwhelmingly in support of the bills. Speakers argued that the measures would correct inequities, recognize prior public service, and help recruit and retain workers in hard-to-fill public jobs. Firefighters described the unique federal-to-state transition at Joint Base Cape Cod and said some members were left out of earlier buyback opportunities. Veterans, teachers, school nurses, correctional educators, and Massport police all described service requirements, administrative gaps, or outdated statutory language that they said unfairly limited retirement credit or placed them in the wrong retirement group. Several witnesses emphasized that the proposals were fiscally responsible because employees would pay the cost of the buybacks, and some noted that similar bills had been filed repeatedly in prior sessions. Committee members asked a few clarifying questions, mostly about why certain employees had been excluded under current law or how the retirement provisions would work. No opposition testimony was presented. The hearing concluded after all scheduled witnesses testified, with the chairs thanking participants for their service and the committee voting to adjourn.

Transcript Highlights:

• Education and Labor Cabinet, Board of Education, Department of Education: 704 KAR 3:315, with a staff-suggested
• It talks about limitations related to credit unions and their deposits, and it says a credit union may
• Credit unions are built a little bit differently. Essentially, they're owners of the credit union.
• be part of that credit union.
• Credit unions can hold non-member deposits for other credit unions, but that's really, again, that's

Summary: The committee met with a quorum, approved the minutes, and then reviewed a long agenda of administrative regulations, most of which were advanced with staff-suggested amendments and no objection. Early items included the Kentucky Public Pension Authority’s 105 KAR 1:451, which updates reporting language and adds the contractor wizard for certain employers, and a large package of Board of Veterinary Examiners regulations that revise fees, facility and AHP registration requirements, continuing education, liability, and practice rules. The Board of Speech-Language Pathology and Audiology’s compact-related regulation and the Board of Licensed Professional Counselors’ complaint and compact rules were also reviewed and approved with amendments, along with fish and wildlife rules affecting elk hunting, youth deer season length, bear-dog approvals, and foxhound enclosure permits. The committee also approved transportation, education, workplace standards, horse racing, and several health and human services regulations, including Medicaid waiver reimbursement updates and a child care regulation that sends certain large claims to the Office of Inspector General for review. Several agencies briefly explained their regulations when members asked questions. Fish and Wildlife said the elk population is strong and the baiting change is intended to support harvest monitoring and fair chase, while the longer youth deer season was meant to give young hunters more opportunity. The Department of Community-Based Services said the $10,000 and $5,000 claim thresholds were meant to clarify rare cases involving possible fraud or unresolved recoupment issues. The Department of Financial Institutions’ 808 KAR 5:305 drew the most discussion: it would allow certain state-chartered credit unions with a low-income designation to participate in federal programs, including limited non-member deposits and supplemental capital, but the regulation was deferred again amid continued discussions. The Kentucky Bankers Association testified against the credit union regulation, arguing that allowing non-member deposits conflicts with existing statute limiting credit union deposits to members and other credit unions, and that an administrative regulation cannot override that statutory restriction. Committee members heard the agency’s explanation that the proposal is intended to help underserved communities and that the non-member deposit authority would be limited, but no final action was taken because the item was deferred. The meeting otherwise concluded with the remaining regulations being called, discussed briefly, and approved or advanced without objection.