Transcript Highlights:

• We're already under significant financial pressure due to rising costs as well as some unavoidable operating
• So to highlight this point, in 2017-2018, special fund revenue covered about 43% of operating costs for
• But as of 2023-2024, For special fund revenue, it will only cover 13% of the operating cost of the law
• So there's now a much smaller portion of the law library's operating costs being covered by special fund
• Of costs of the law library operating?

Transcript Highlights:

• It's the operational bucket that is more of a challenge, and it's just a fraction of the cost of the
• It's the operational bucket that is more of a challenge, and it's just a fraction of the cost of the
• Rising operational costs are affecting our operations.
• Rising operational costs are affecting our operations.
• would call real cost rate.

Summary: The joint Senate and Assembly Select Committee hearing focused on the nonprofit sector’s mounting challenges in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance in California, the impact of federal funding disruptions and new federal tax policy, and the need for stronger public-private coordination, especially during disasters. Witnesses and members repeatedly pointed to nonprofits as essential providers of food, housing, health, education, environmental, and emergency services, while warning that sudden funding losses are forcing layoffs, service cuts, and operational instability. Testimony from community foundations and food bank leaders described how federal cuts, delayed reimbursements, and disaster-related demand are straining nonprofits. Monica White of Food Share Ventura County said H.R. 1 and USDA food cancellations are worsening hunger needs, while immigration enforcement fears are keeping some families from seeking help. Abby Browning of Cal OES outlined how the state coordinates with nonprofits, philanthropy, and businesses through VOADs and long-term recovery groups in wildfire response. Bruce Yerman of the Camp Fire Collaborative said recovery groups are effective but lack dedicated funding, and urged flexible spending, sustainable support, and streamlined partnerships. The second half of the hearing focused on institutional reforms, including a proposed Office of Nonprofit Empowerment, advance payments, prompt payment, and higher indirect cost coverage. Jeff Green of CalNonprofits argued for a central state office to coordinate policy, technical assistance, and interagency alignment. Annie Chang of Nonprofit Finance Fund cited survey data showing widespread late payments, low cash reserves, and indirect cost rates below federal guidance. Alfredo Cruz Jr. of Community Resource Project described how reimbursement-only contracts, delayed payments, and underfunded overhead create cash-flow crises and staffing problems. Members discussed possible interim steps, including expanding advance pay, improving payment timeliness, modeling best practices, and using state leadership to spotlight nonprofit needs. The hearing ended with public comment from nonprofit, labor, and advocacy representatives, and no votes or formal actions were taken.

Transcript Highlights:

• If you have a customer leave, they're paying as part of their fixed costs or their operational costs,
• their usage costs; they're contributing to fixed costs.
• It costs a certain amount.
• It refers to safe and reliable operation of the system costs that are necessary for that purpose.
• It refers to safe and reliable operation of the system costs that are necessary for that purpose.

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on clean energy, electrification, and grid planning. AB 1813 (Ward) would revise California’s community renewable energy program to better support community solar and storage, especially for renters and low-income customers, by tying credits to avoided costs and requiring at least 51% low-income participation. Supporters said the current CPUC program is unworkable and has stalled development; utilities raised concerns about cost shifts, CCA impacts, and the bill’s late substantive amendments. The bill was discussed but no vote was recorded in the excerpt. AB 2313 (Berman) would create a gas service line replacement alternative program allowing customers facing planned gas line replacement to instead choose electrification and receive an incentive. Supporters argued it would reduce long-term gas infrastructure costs and give customers more choice, while opponents warned it could divert money from safety-related gas replacement work, create affordability issues, and conflict with the recently approved SB 1221 pilot. Committee members pressed the author on safety, funding sources, and renter impacts; the author said the bill includes emergency replacement exemptions and is intended to lower costs for remaining ratepayers. AB 1975 (Schultz) would require the CPUC to develop a grid utilization metric and consider expanded grid management programs to better use existing distribution infrastructure and reduce the need for costly upgrades. Supporters said better utilization could save ratepayers billions and help integrate batteries and flexible load; utilities generally opposed rigid utilization targets but were open to further discussion. The committee passed AB 1975 on a 7-0 vote to Appropriations. AB 2612, on plug-in photovoltaic systems, passed 9-0 to Appropriations after supporters said it would expand access to low-cost solar and utilities requested clarification that they would participate in the standards process. AB 1849 (Pappin) would direct CARB to study the need for decarbonized gaseous fuels in hard-to-electrify sectors and for grid reliability. Supporters framed it as a technology-neutral assessment for sectors like industrial heat and backup power; opponents argued it was biased toward a preferred fuel pathway and duplicated existing state studies. After a lengthy exchange over the lack of a statutory definition for “decarbonized gaseous fuels,” the bill passed 10-0 to Appropriations. AB 2088 (Pappin) would authorize investor-owned utilities to own and operate thermal energy networks, with safeguards for safety, workforce, and ratepayers. Supporters described TENs as efficient, low-emission heating and cooling systems that can use geothermal energy or waste heat; the bill passed 9-0 to Appropriations.

Transcript Highlights:

• opt out of OPERS.
• OPERS is just eating them alive, and they're such. Their OPERS is just eating them alive.
• be moving them instead of into OPERS.
• any more than what it's going to cost.
• any more than what it's going to cost.

Bills: SB134 , SB1356 , SB1407 , SB1611 , SB1639 , SB169 , SB1722 , SB182 , SB1870 , SB2039 , SB432 , SB609 , SB715 , SB716

Committee: Senate Retirement and Government Resources

Summary: The Senate Committee on Retirement and Government Resources considered a series of retirement, pension, and state employee bills. Senate Bill 1870 would let small municipalities in OPERS with populations of 2,000 or less opt out for new employees; members questioned the fiscal impact and the bill passed 8-0 after the chair struck the title to get a clearer actuarial analysis. Senate Bill 1722 passed 9-0 and would require OMES construction contract fees to be based only on construction costs, not interior design and furnishings, with members discussing how to define those terms and whether historical or specialized projects could still be accommodated. Senate Bill 1639 passed 9-0 after an amendment removed provisions affecting the Indian Education Act commission, leaving a bill to repeal several dormant boards and commissions. The committee also passed Senate Bills 715 and 716, which would increase municipal contributions to firefighter and police pensions, respectively; members raised concerns about city budgets, and the sponsor said he was open to phasing in the increases. Senate Bill 182 passed 5-2 to add certain DHS Inspector General officers and OJA residential care specialists to hazardous duty retirement, and Senate Bill 609 passed 7-0 to allow police recruits to buy up to five years of prior out-of-state service credit as a recruitment tool. The committee then passed Senate Bill 169 5-2 to increase state employee longevity pay by 50%, with supporters citing high turnover and opponents warning about budget pressure and the need for broader raises. Senate Bill 134 passed 7-0 to shorten the waiting period for county employees to return to work from one year to six months. Senate Bill 432 passed 6-0 to raise volunteer firefighter pension benefits, and because it was double-assigned it would next go to Appropriations. Senate Bill 1407 passed 7-0 after an amendment requiring OMES to provide the Commission on the Status of Women an itemized accounting of funds; the bill generally clarifies staffing and financial reporting authority for the commission. Finally, Senate Bill 2039 passed 8-0 after an amendment narrowing the bill to military personnel who are also teachers and defining salary for buyback purposes; the sponsor said the measure would help service members return to teaching and buy back up to five years of credit. The committee also passed Senate Bill 1356 7-0, a broader OMES cleanup bill moving certain functions elsewhere, though members flagged concerns about relocating the state use program and the pay-for-success fund and suggested further study on those sections.

Transcript Highlights:

• Do you want to talk about cost? How much did Hacienda cost this state?
• Community college operations rest on three legs: property taxes, tuition, and state operating aid.
• Unemployment Insurance Operating Fund for the Administrative Cost of the Unemployment Insurance Program
• Well, that 20% doesn't necessarily have to be all operating costs or anything.
• The debt service, the other, and operating costs are paid first. Correct? Mr.

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.

Transcript Highlights:

• Our motives today are to operate as a business. We're trying to run a lean operation.
• ><c> a</c> motives today are to operate as a motives today are to operate as a business<00:24:58.760>
• So each one of these steps increases costs.
• </c><00:40:33.640><c> you</c> one of these steps increases costs you one of these steps increases costs
• </c><00:44:50.680><c> is</c> thing for us because when the cost is thing for us because when the cost

Summary: The work session focused on HB 54, which would allow New Hampshire’s alternative treatment centers to operate for profit. Chair David Nagel opened by identifying the main concerns: whether members agreed with the bill conceptually, whether the proposal could be shaped to avoid a gubernatorial veto, and whether it could lead to “big cannabis” taking over. He also emphasized that the bill would not change the existing oversight structure, which remained under RSA 126-X. Representative Wendy Thomas said the governor’s objections in past sessions appeared to center on the state’s preference for a state-run model and broader policy concerns, but no one present knew the current governor’s position. Several speakers argued the bill was primarily about financing and access, not expanding the number of dispensaries. Matt Simon of Granite Leaf Cannabis said the current nonprofit structure makes it difficult to raise capital, pay down debt, and open additional access points, and that the bill would be a corporate restructuring rather than a change in day-to-day regulation. Brandon Pollock of TASCAL Wellness said medical cannabis programs in most other states are for-profit, and that New Hampshire’s nonprofit requirement has left ATCs burdened with high-interest debt and higher prices that push patients to Maine, Vermont, or the street market. He said converting to for-profit status could allow conventional financing, lower prices, and help keep patients in the regulated program. Members also discussed whether for-profit ownership would invite outside corporate control. Witnesses said the bill would not open the market to new operators, would not change advertising rules, and would include restrictions on ownership transfers for a period of time; “foreign corporation” was explained as an out-of-state entity. One speaker noted that the bill is similar to earlier versions that passed both chambers with strong support but never became law. No vote was taken during the work session; the discussion was informational and aimed at addressing concerns before the bill moved forward.

Transcript Highlights:

• costs due to cost-of-living adjustments.
• These funds are mission-critical to state government operations and directly address the cost of delivering
• We’re not only going over the costs, but the methodology or the metric we’re proposing on how to cost
• This outcome reflects significant internal cost controls and operational discipline across the agency
• That's just our operating dollars.

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a public FY27 budget hearing at Barnstable Town Hall, with opening remarks emphasizing the Cape and Islands’ seasonal infrastructure, housing, transportation, workforce, and digital needs. The hearing began with testimony from the Executive Office of Labor and Workforce Development, which outlined the Healey-Driscoll administration’s budget priorities for job training, apprenticeship, youth employment, reentry programs, and unemployment insurance modernization. The secretary highlighted proposed funding for the Workforce Competitiveness Trust Fund, Career Technical Initiative, YouthWorks, reentry workforce development, and services for young adults with disabilities, along with a proposal to streamline youth work permits. Members also discussed the unemployment trust fund, the COVID assessment on employers, rising unemployment, and the need to improve DUA customer service and claims processing. Committee members asked about job seeker barriers such as child care, housing, transportation, and out-migration of young workers, as well as how to keep Cape Cod graduates and seasonal workers in the region. The administration said its strategy is to pair training with broader affordability investments and to expose students to career pathways earlier, including through middle school, early childhood STEM, YouthWorks, pre-apprenticeships, and Building Pathways. Senators and representatives also raised concerns about regional funding disparities, especially for Hampshire Franklin MassHire, and the administration said it is reviewing MassHire funding and service equity through a policy committee and statewide workforce board. On unemployment assistance, officials reported major improvements in wait times and claims processing, but said they are still working through backlogs and staffing challenges while maintaining program integrity. The committee then heard testimony from the Executive Office of Economic Development. The secretary described House 2 as a fiscally restrained budget with no new taxes or fees, while preserving core programs and using the Mass Leads Act tools to support competitiveness. EOED’s proposal included funding for the Community One Stop for Growth, rural economic development, social enterprise operating grants, regional economic development organizations, the Workforce Investment Trust Fund, Community Workforce Partnerships, Pathmaker, advanced manufacturing training, life sciences, innovation vouchers, AI initiatives, small business assistance, and tourism and live theater support. The Office of Consumer Affairs and Business Regulation also testified on its FY27 request, focusing on consumer protection, licensing, banking, insurance, and public safety regulation. No votes were taken during the hearing.

Transcript Highlights:

• Assuming an average cost of $31,000 per lane mile per biennium in maintenance costs, this would result
• But maintenance costs vary across the state, so it's hard to pin down the actual costs that will result
• It mandates that a motorcycle operator assume liability when operating on the right shoulder of a roadway
• It mandates that a motorcycle operator assume liability when operating on the right shoulder of a roadway
• It's just one-time costs. So could you—I'm curious.

Bills: HB1367 , HB2172 , HB2718 , HB2139 , HB2192 , HB2307 , HB2379 , HB2467 , HB2495 , HB2604

Committee: House Transportation

Keywords: motorcycle safety, right shoulder, shoulder riding, limited access roadway, freeway, expressway, highway congestion, lane splitting, traffic safety, RCW, Washington traffic law, roadside assistance, emergency vehicles, tow truck, congested traffic, motorcyclist, route jurisdiction, abandonment, transportation, local governance

Transcript Highlights:

• That directly goes to the cost of operating the centers. So lodger rents are the number one source.
• But it used to be 18% of our operating costs, and now it's 11%.
• So even though every one of the growers participates in the operating costs, they don't get any preference
• This requires our operating costs to be leaner, and the need for subsidy sources to be far greater.
• costs since 2019.

Committee: House Housing and Community Development

Transcript Highlights:

• That 100% there's no cost share.
• That's by and large what you'll see mostly in here in terms of our operating costs.
• For operating costs, yes.
• Anything above that operating cost that we're asking for has been outlined.
• So there will be additional costs.

Transcript Highlights:

• The House 2 operating budget supports MassDOT operations at $645 million.
• The operating budget supports MassDOT operations at $645 million.
• The budget also proposes a $36 million increase for core operations to cover collective bargaining cost-of-living
• The budget also proposes a $36 million increase for core operations to cover collective bargaining cost-of-living
• I'll just make one really quick other plug to that: I think reducing the operational costs of these vehicles

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a hearing at UMass Amherst on Governor Healey’s fiscal year 2027 budget proposal, focusing on energy/environment-related transportation issues and the Massachusetts Department of Transportation. The hearing opened with welcomes from the co-chairs and local legislators, followed by remarks from UMass Amherst Chancellor Javier Reyes, who highlighted the university’s research, sustainability, transportation, and workforce contributions and thanked the administration and legislature for support of public higher education. MassDOT Secretary and MBTA General Manager Phil Eng, along with agency leaders, presented the administration’s transportation budget package. They described a combined funding plan through House 2, a Fair Share supplemental budget, and a Chapter 90 bill, emphasizing investments in MassDOT operations, snow and ice response, regional transit authorities, the MBTA, bridge and pavement repair, housing-related transportation improvements, sustainable aviation fuel, microtransit, and local road programs. Officials also highlighted record highway construction activity, safety initiatives such as work zone speed cameras and pedestrian protections, RMV service and equity improvements, airport and drone technology programs, and MBTA gains in reliability, accessibility, ridership, and service expansion. Committee members asked about Western Massachusetts priorities, especially Chapter 90 funding for rural road mileage, bridge repairs, and the Compass Rail/West-East Rail program. MassDOT officials said pending federal grants were moving forward, with some awards recently obligated and others expected as federal processes advance, and they said Palmer Station remains part of the long-term rail plan. Members also raised the Cape Cod bridges and the need for multi-year Chapter 90 funding. Officials said the Sagamore Bridge procurement would begin soon, with construction targeted for 2027, and reiterated that transportation investments support jobs, local economies, and municipal infrastructure statewide.

Transcript Highlights:

• Meanwhile, the demolition costs and remediation that we need to do, those costs are only continuing to
• We're moving now into operations.
• operational... ...to make sure that as the network is operated, it's operated to the state standards
• Do you operate the broader network?
• But they also operate networks in Texas... ...but they also operate networks in Texas, Florida, I believe

Summary: The hearing began with a vote-only agenda and then focused first on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding. County officials, city leaders, labor representatives, nonprofits, and public safety advocates argued that the loss of roughly $157 million would force major cuts to homelessness services, housing assistance, mental health programs, libraries, parks, fire and police staffing, and other local services. They described the current formula as outdated and unfair, tied to school funding and basic-aid dynamics that no longer work for San Mateo County, and urged both an immediate budget restoration and a permanent legislative fix. The Department of Finance said the payments are discretionary, not statutorily required, and noted the administration does not view the expenditure as sustainable in the current fiscal climate. Committee members expressed sympathy, questioned the formula, and said they would keep the issue under consideration; the committee later voted to move the two vote-only items on the agenda. The committee then received an update from the Department of General Services on state property redevelopment, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not currently an active project, while the Fell Street project shifted from an integrated DMV-housing plan to a more feasible relocation of the DMV into leased commercial space, with a budget change proposal pending. Members pressed DGS on the slow pace of redevelopment, the potential for housing on state sites, and the costs and feasibility of adaptive reuse. DGS said many state buildings are aging and that adaptive reuse depends heavily on building design, floorplate depth, light, and risk from unknown conditions behind walls. The Government Operations portion then turned to the California Education Learning Lab, which supports intersegmental higher education innovation grants. The Lab asked for permanent restoration of $4 million in ongoing funding and a move of its home agency from the Office of Land Use and Climate Innovation to GovOps, along with technical trailer bill changes. Supporters said the program has funded more than 120 projects reaching thousands of faculty and hundreds of thousands of students, including work on generative AI in higher education. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the wind-down, citing the state’s projected deficit and suggesting the California Education Interagency Council could pursue non-state-funded grant opportunities instead. The committee held the item open. Finally, GovOps presented the new California Education Interagency Council staffing request, seeking four ongoing positions to support the council, with funding already included in last year’s budget. The department said the governor has appointed Debbie Cochran as executive officer and that the remaining positions are being recruited. Finance and LAO had no objections, and the committee began questions about how the council will be staffed and organized.

Transcript Highlights:

• They are sophisticated in their operations.
• at limited risk and limited cost.
• fee increase on operators.
• fee increase on operators.
• The board currently operates with an IT budget of only $497,000, which is insufficient to meet its operational

Summary: The Assembly Budget Subcommittee on State Administration heard several CalVet budget updates first. CalVet reported progress on the Southern California Veterans Cemetery at Gypsum Canyon, explaining that DGS is revising the earlier feasibility study to reflect a smaller footprint and lower grading costs, with updated numbers expected by the end of April. Members and public commenters emphasized the project’s importance and asked whether additional budget authority or trailer bill language was needed; CalVet said it may need more spending authority but wanted to return after the revised study is complete. The committee also reviewed the Yountville skilled nursing facility replacement project, where CalVet said construction is nearing completion, a certificate of occupancy was received, and the new 240-bed facility will replace Holderman Hospital while older buildings will be repurposed for lower levels of care. CalVet also defended eliminating about 178 vacant positions at Yountville and West Los Angeles as a fiscal and staffing efficiency measure, saying current care levels can still be met and that retention and hiring efforts are improving. The committee then took up the Department of Cannabis Control’s enforcement and legal affairs proposal. DCC described the size of the illicit cannabis market, said enforcement alone cannot solve the problem, and asked for additional sworn staff, a new Redding-area field office, and more analysts to focus on distribution networks, organized crime, environmental harms, and high-priority public safety cases. Finance supported the proposal as a targeted investment, while the LAO had no additional comment. Members asked about funding impacts and local co-location options, and DCC said the request would be funded from cannabis excise tax revenues and could help shift sales into the legal market. Public testimony from the cannabis industry strongly supported more enforcement against illicit retail and said it would help legal operators compete. DCC also presented its hemp enforcement and regulation proposal tied to AB 8. The department said the law closes loopholes around intoxicating hemp products, strengthens enforcement across agencies, and prepares for hemp to enter the cannabis regulatory framework in 2028. DCC requested staff for a civil enforcement unit, field-testing equipment, lab capacity to detect synthetic cannabinoids, a track-and-trace specialist, and a policy specialist. Members asked about enforcement in informal retail settings and consumer confusion, and DCC said the biggest problems have been smoke shops and online sales. Public commenters from the legal cannabis industry supported the proposal, saying intoxicating hemp has harmed the regulated market and created public safety risks. The Cannabis Control Appeals Panel then requested ongoing funding of $3.4 million to support 12 positions and its quasi-judicial appeals function. The panel said that with provisional licenses largely phased out, more annual licensees now have appeal rights and the workload is beginning to increase, with two cases currently on the docket. The LAO recommended limiting funding to three years and requiring a workload and comparative analysis before making the funding permanent, while Finance supported ongoing funding as consistent with the panel’s permanent statutory role. Members questioned the panel’s compensation and workload, noting that the five-member body is paid at a high statutory rate despite historically meeting only quarterly, though panel staff said the work now includes substantial case preparation and monthly hearings. Finally, the Department of Consumer Affairs introduced two proposals: $2 million ongoing for the Contractors State License Board’s IT needs and $251,000 plus one limited-term position for the Board of Pharmacy to implement Proposition 34-related licensing policy and reduce barriers to licensure.

Transcript Highlights:

• 00:19:02.039><c> the</c><00:19:02.159><c> Bureau</c><00:19:02.440><c> of</c> operating uh uh costs for
• the Bureau of operating uh uh costs for the Bureau of Aeronautics<00:19:03.360><c> with</c><00:19:03.559
• They provide about 50% of that operating cost as part of the sponsorship on the vehicle itself.
• Again, just the cost of operating and maintaining those facilities and see the position changes there
• of living, and higher operating costs.

Summary: The committee met with New Hampshire DOT Commissioner Bill Cass and Finance Director Danielle Shandra to review the agency’s FY 2026 budget. Cass gave a high-level overview of DOT’s mission, organization, funding structure, and staffing trends, noting the agency has about 650 employees across five divisions. He said the Governor’s recommended FY 2026 budget totals $95.99 million, essentially flat from FY 2025, with funding primarily from Turnpike funds, Highway funds, federal sources, and a small General Fund share for non-highway units. Members asked about how Turnpike and Highway funds are treated in state accounting, and DOT explained that while they are enterprise funds restricted to their purposes, they are considered unrestricted from the statewide perspective and are appropriated through the budget process. A major topic was staffing and budget targets. DOT said its full-time staffing level has remained relatively flat since 2014 even as vehicle miles traveled increased and vacancies rose. To meet budget targets, the department unfunded seven permanent positions and nine temporary full-time positions, and later noted additional reductions in Finance, including the elimination of two full-time positions, reduced print shop equipment purchases, and deeper cuts to overtime, temporary help, equipment, and supplies in FY 2027. DOT also explained that it shifted funding for one unmanned aerial system position from General Funds to Highway Funds, saying the change was workable because the position supports highway-related work and federal-aid-eligible activities. Members asked for clarification on the state transit operating match, and DOT explained that the Legislature had previously provided about $1.8 million annually in General Funds to help local transit agencies meet federal match requirements, but that funding was not included in this budget. DOT said that could reduce the ability to draw down some federal transit funds, though the impact may not be immediate because those funds can be used over several years. The department also described its unmanned aerial system program, saying it has been used for about five years for mapping, survey work, construction oversight, and storm damage assessment, and that it now has about five drones and two full-time positions supporting the program. DOT said it is expanding cross-training so more employees can operate drones without adding positions. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• This cost cap addresses only the non-mandatory category.
• how they operate is essential.
• cost cap.
• The DCA is concerned about the cost cap portion of this bill.
• However, as a public utility operating in Delaware, Chesapeake is opposed to the spending cost cap for

Bills: SB287

Committee: House Natural Resources & Energy

Summary: The House Natural Resources and Energy Committee met and considered three Senate bills. SB 287 with Senate Amendment 2, a DNREC cleanup bill on recycling, would tighten recycling collection rules for haulers and commercial generators, require multifamily recycling education, repurpose the Delaware Recycling Fund, and add annual reporting; after brief questions and no public comment, the committee motion to release did not initially receive enough votes, so the bill was circulated for signatures. SB 346, which would speed Environmental Appeals Board hearing and decision timelines so DNREC secretary decisions become final if deadlines are missed, drew support from the Nature Conservancy and also failed to get enough votes at the meeting, so it too was circulated for signatures. The committee then took up SB 326, a major utility-regulation bill sponsored by Senator Hanson and Representative Heffernan that would cap certain non-mandatory utility spending, limit interim rates, increase oversight and transparency, and streamline rate-setting. SB 326 generated extensive testimony and debate. Supporters, including the Public Advocate, Sierra Club, PSC staff, and some legislators, argued that Delmarva Power’s spending on non-mandatory infrastructure has risen far faster than inflation, that the company is a regulated monopoly, and that the bill would help restrain future delivery-rate increases without harming reliability because mandatory reliability, storm response, and vegetation management spending would remain allowed. Opponents, including Delmarva Power, business groups, contractors, labor representatives, and the Delaware Contractors Association, argued the cap would delay needed reliability and capacity projects, hurt economic development, reduce jobs, and interfere with utility planning; they also said supply costs, not distribution spending, are the main driver of recent bill increases. After public comment and additional questioning, the committee voted to release SB 326 on a split roll call, but because several members were absent the bill was also walked for additional signatures. The committee then adjourned.

Transcript Highlights:

• Housing cost burden means that you're paying more than 30% of your income toward your housing costs.
• , you know, the state costs go up proportionately. ...put them in an institution, and then our costs,
• I visited 12 different operating companies, almost all the largest operating companies in the state,
• And that is the lateral lengths and the operational efficiencies that operators are gaining.
• And that is the lateral links and the operational efficiencies that operators are gaining.

Summary: The committee met as the Budget Section’s Regulatory Division and first reviewed base budget materials for the North Dakota Housing Finance Agency and the Department of Mineral Resources. Legislative Council explained the blue-sheet budget summaries and historical funding trends. The Housing Finance Agency then reported on its ongoing homeownership, housing incentive, and homelessness programs, noting that its new FTEs are being filled, loan servicing remains above benchmark, and the agency is operating largely on special and federal funds rather than general fund dollars. Housing Finance officials said the Housing Incentive Fund continues to be heavily oversubscribed, with requests far exceeding available dollars, and described how funds are being used for multifamily gap financing, rural single-family development, community land trusts, and homeless prevention/rapid rehousing. Members asked about performance measures, the number of people served, and the relationship between housing costs, wages, and homelessness. The agency said it uses scoring criteria tied to performance and outcomes, and requested that the Legislature maintain or increase funding for HIF, single-family housing, and homeless grants. Committee members also discussed the need to coordinate housing finance efforts with Commerce and broader site-preparation and workforce issues. The Department of Mineral Resources reported that it is on track with its budget, has filled most of its newly authorized reclamation positions, and is moving ahead on several initiatives, including IT modernization through Project North Star, organizational succession planning, and rulemaking for critical minerals and oil and gas programs. The director gave an extensive update on oil and gas activity, explaining that longer laterals and operational efficiencies are keeping production relatively flat even as rig counts decline, and that gas capture remains around 95 percent. Members asked about oil prices, hedging, spacing units, and the effects of geopolitical events on markets and state revenues. The committee also received an update on the enhanced oil recovery grant program and the Pipeline Authority. The EOR program’s $25 million appropriation was fully allocated to six projects, with additional oil and gas research funds also committed, and officials said the projects will require public status reports and final reports. The Pipeline Authority described major natural gas transmission projects, including the upcoming Bakken Express line and the proposed Bakken East project, which recently completed a binding open season after the Industrial Commission selected WBI Energy’s proposal to move forward.

Transcript Highlights:

• City's word against the operator, or whoever.
• Again the cost will be bared by the by the applicant.
• Why are these operators abandoning these sites?
• . or state government operations and sorting that out.
• So having a... permanent dredging operation that operates continually out there to keep Removing the

Bills: HB 1089 , HB 1163 , HB 1177 , HB 1238 , HB1318 , HB1400 , HB1407 , HB1532 , HJR7 , HJR7

Committee: House Natural Resources

Keywords: coastal protection, environmental management, Gulf Coast, storm risk management, funding, Texas General Land Office, healthcare, insurance reform, patient access, insurance regulation, affordable care, health insurance, consumer rights, coverage transparency, claims process, insurance regulations, aggregate production, environmental impact, financial responsibility, reclamation

Transcript Highlights:

• They also caused the operators at the federal dams to suspend spill protection operations; fish that
• any standard cost.
• Cost causers pay.
• is those who create costs should bear those costs.
• is those who create costs should bear those costs.

Bills: SB6171 , SB5965 , SB5982 , SB6004 , SB6010 , SB5941 , SB6050

Committee: Senate Environment, Energy & Technology

Keywords: energy facilities, large energy consumers, regulation, environment, sustainability, retail bags, pollution, customer impact, consumer-owned utilities, clean energy, port districts, market customers, energy transformation, renewable energy, public entities, electric generation, contracting, SB 6010, Washington energy siting, EFSEC

Transcript Highlights:

• We should all want state programs to operate and function as intended and within expected costs.
• We should all want state programs to operate and function as intended and within expected costs.
• </c><00:07:29.840><c> UI</c> within expected costs just look at UI within expected costs just look at
• </c> enjoy these businesses operate enjoy these businesses operate differently<00:22:15.640><c> than<
• employees far outweighs the cost.

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• costs, 6%.
• Not expanding services necessarily results in higher operating costs that would not have occurred otherwise
• Certainly, the budget of the airport, taking into account its debt service and its operating costs, is
• Investment itself would be prevented by the cap, and the ongoing operational costs—hiring firefighters
• The operational cost to operate that facility will exceed our budget limits.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs