Transcript Highlights:

• We don't look at any other part of the supply chain in the same light.
• So please continue, but we did look at those and we did ask that in the supply chain.
• You know, there's a lot in a supply chain. PSAOs that Phil testified to a minute ago.
• You know, there's a lot in a supply chain, PSALs that Phil testified to a minute ago.

Committee: Senate Insurance

Summary: The Senate Committee on Insurance met on May 6, 2026, and first reported HB 1241 favorably. That bill, by Chairman Furman, requires insurers to check with DCFS before paying certain insurance settlements to determine whether the recipient owes delinquent child support, and to withhold and remit arrears if found. DCFS explained that Louisiana already has intercepts and other collection tools, but no current mechanism for insurance settlements. Senators raised concerns about notice to obligors and about liability if insurers fail to withhold, but the bill was advanced without objection. The committee then heard HB 870, which would require health insurers and PBMs to cover lower-cost generic or biosimilar drugs when available and to use utilization management no more restrictively on those drugs. Supporters said the bill would improve access and lower patient costs by using wholesale acquisition cost as the comparison point. Opponents, including Louisiana Blue and the AFL-CIO, argued that WAC ignores rebates and net cost, could force plans to cover higher-cost biosimilars first, and could increase premiums and disrupt ERISA and fully insured plan design. The committee adopted a technical amendment set and then a second amendment set that added notice and reporting requirements tied to net cost calculations, and HB 870 was reported favorably as amended. Several other bills were moved with little or no opposition. HB 1176, concerning Medicare Advantage coverage for integrative cancer treatments such as cold cap therapy, cryotherapy, and acupuncture, was amended to change the effective date and then reported favorably. HB 1196, dealing with colorectal cancer screening follow-up colonoscopies, was also amended and reported favorably. HB 1162, a consumer protection bill requiring DOI to verify that a contractor named on a first-party property damage check is licensed in Louisiana, was amended and reported favorably. HB 826, which modernizes insurance referral rules to allow referrals by email or website address, was reported favorably. The committee also heard HB 1151 on insurer investment limits and solvency protections, and HB 1236 on pharmacy reimbursement and copay maximizer programs; both drew substantial testimony and concern, especially over retroactivity, PBM cost allocation, and whether copay maximizers shift costs to patients, but the transcript cuts off before final action on HB 1236.

Transcript Highlights:

• 2023, and 500 tons a year if they newly came into business after that in the state or newly began supplying
• fuel in Washington after that date, or began supplying fuel period.
• So any seller of propane, no matter when they began supplying fuel, would be subject to the 25,000-ton
• such as an actual cost increase for the product; a price change for a seasonal market fluctuation or supply

Bills: HB2104 , HB1903 , HB1909 , HB1982 , HB2034 , HB2105 , HB2210 , HB2215 , HB2271 , HB2345 , HB2355 , HB2384 , HB2389 , HB2397 , HB2418 , HB2429 , HB2442 , HB2479 , HB2481 , HB2681 , HB2688 , HB2714

Committee: House Appropriations

Keywords: aviation, wildland fires, funding, disaster relief, emergency response, energy assistance, low-income, utility costs, state program, energy affordability, court unification, task force, Washington courts, judicial administration, court reform, access to justice, local court rules, uniformity, centralization, rural courts

Transcript Highlights:

• Fund for 20 years and authorizes the legislature to allocate the dedication in favor of new water supply

Bills: HB5560 , HB2 , HB24 , HB3233 , HB1397 , HB2067 , HB3133 , HB5696 , HB5680 , HB2885 , HB3966 , HB3556 , HB3595 , HB144 , HB26 , HB2038 , HB521 , HB4 , HB 1178 , HB42 , HB 1211 , HB783 , HB3963 , HB2240 , HB1690 , HB 1234 , HB3372 , HB27 , HB4211 , HB2243 , HB2853 , HB4638 , HJR7 , HB 100 , HB 126 , HB3783 , HB5138 , HB2512 , HB5616 , HB4751 , SB17 , SB1637 , SB1833 , SB2155 , SB21 , SB2778 , SB260 , SB8 , SB12 , SB37 , SB379 , SB441 , SB1566 , SB2878 , HB4112 , HB3866 , HB4749 , HB2844 , HB150

Keywords: groundwater, civil penalties, water conservation, drought contingency, environmental protection, public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, zoning, public notice, local government, residential development

Bills: HB5560 , HB2 , HB24 , HB3233 , HB1397 , HB2067 , HB3133 , HB5696 , HB5680 , HB2885 , HB3966 , HB3556 , HB3595 , HB144 , HB26 , HB2038 , HB521 , HB4 , HB 1178 , HB42 , HB 1211 , HB783 , HB3963 , HB2240 , HB1690 , HB 1234 , HB3372 , HB27 , HB4211 , HB2243 , HB2853 , HB4638 , HJR7 , HB 100 , HB 126 , HB3783 , HB5138 , HB2512 , HB5616 , HB4751 , SB17 , SB1637 , SB1833 , SB2155 , SB21 , SB2778 , SB260 , SB8 , SB12 , SB37 , SB379 , SB441 , SB1566 , SB2878 , HB4112 , HB3866 , HB4749 , HB2844 , HB150

Keywords: groundwater, civil penalties, water conservation, drought contingency, environmental protection, public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, zoning, public notice, local government, residential development

Transcript Highlights:

• , and so we can cost-effectively supply California with clean energy, and the CPUC also has a role in
• DWR has electricity supply backstop responsibilities, including the electricity strategic reliability
• DWR has electricity supply backstop responsibilities, including the electricity strategic reliability
• chain issues and how fast we could build.
• chain, and permitting.

Summary: The committee first heard AB 1026 by Assembly Member Wilson, which would require investor-owned utilities to provide clearer front-end information and follow more consistent timelines for post-entitlement energization applications tied to housing projects. The author and supporters from the Housing Action Coalition and Mission Housing said utility delays can hold up approved housing, add costs, and create uncertainty, and they argued the bill would align utility processes with recent state efforts to streamline local permitting. PG&E and Southern California Edison opposed the bill, saying existing CPUC timelines and the ongoing energization rulemaking already address the issue, that the bill could be duplicative or premature, and that some proposed timelines were too short. The committee discussed the bill’s relationship to the CPUC’s September 2024 decision, and AB 1026 was ultimately approved on a 15-0 vote, with the consent calendar also passing. The second half of the hearing was the committee’s annual oversight hearing on electric reliability. Representatives from the CPUC, CEC, CAISO, and DWR reviewed lessons from the 2020 and 2022 heat emergencies, emphasizing that California has since added significant resources, improved planning, and created backstop programs such as the strategic reliability reserve. They said the summer 2025 outlook is cautiously optimistic, with no expected shortfalls under traditional planning conditions and a projected surplus, though wildfire and extreme heat remain risks. The agencies also described major changes in planning and operations, including more battery storage, updated resource adequacy rules, expanded transmission planning, and reforms to the interconnection queue. Members asked about data center load, Diablo Canyon’s future, the strategic reliability reserve, demand response, wildfire mitigation costs, affordability, and regional market expansion. Witnesses said data center demand is a major variable but can be managed through better forecasting, flexible service arrangements, and siting in areas with existing capacity; they also said firm clean resources remain valuable while planning continues around Diablo Canyon’s scheduled retirement. On affordability, they said the agencies try to balance reliability with least-cost procurement, and that new resources can lower market prices even as they require upfront investment. CAISO also highlighted the value of the Western Energy Imbalance Market and the planned day-ahead market, saying regional coordination improves both reliability and cost savings.

Transcript Highlights:

• would like to note that due to external forces, many of those international— we are seeing severe supply
• chain disruptions that impact our ability to procure basic equipment and supplies at any sort of reasonable
• would like to note that due to external forces, many of those international, we are seeing severe supply
• chain disruptions that impact our ability to procure, supply chain disruptions that impact our ability
• But to get to your point, there's not enough that would be able to supply employees for all the courts

Summary: The committee heard budget and workload presentations from the Office of the State Public Defender, legal aid organizations, and the Judicial Branch. OSPD requested permanent funding for positions that had been temporarily funded to implement the Racial Justice Act, explaining that the work has become ongoing and now includes additional Supreme Court briefing, habeas proceedings, investigations, expert analysis, and data requests. The State Public Defender also presented the AB 625 public defense workload report, which found statewide staffing shortages, caseloads above recommended standards, and major gaps in investigators and support staff. Senators asked about racial bias claims, the volume of data requests, and the impact of Prop. 36, and OSPD said it would provide additional written information. The legal aid panel asked for a $50 million increase to the Equal Access Fund, $20 million to restart homelessness prevention services, and $10 million for health care access work, while also supporting Access to Justice Commission requests for loan repayment assistance, immigrant family preparedness services, and innovation grants. Witnesses described legal aid as homelessness prevention and cited examples involving eviction defense, domestic violence survivors, and immigration detention cases. Los Angeles Superior Court Presiding Judge Sergio Tapia discussed eviction data, low tenant representation, and court pilots in Compton and at Stanley Mosk that combine mediation, rental assistance, and legal help. Senators asked for service maps, outreach materials, and more detail on funding needs and federal funding losses. For the Judicial Branch overview, the Judicial Council and trial court representatives supported the Governor’s proposed budget, including $70 million for trial court operations, $21.7 million for employee health and retirement costs, and funding for appellate counsel, case processing, and courthouse construction. They said rising costs, staffing retention, and interpreter shortages continue to strain the courts, and described efforts to reallocate interpreter funds and recruit hard-to-find languages such as Mixteco. Senators pressed the branch and the Department of Finance on courthouse facilities, noting that the long-term need is far larger than the current budget proposal; Finance said the branch’s facility needs were estimated at about $22.5 billion over 10 years to start 68 projects and $29.4 billion to complete the remaining projects. The committee requested follow-up information on facilities, judgeships, and interpreter needs.

Transcript Highlights:

• would like to note that, due to external forces, many of those international— we are seeing severe supply
• chain disruptions that impact our ability to procure basic equipment and supplies at any sort of reasonable
• would like to note that due to external forces, many of those international, we are seeing severe supply
• chain disruptions that impact our ability to procure, supply chain disruptions that impact our ability
• But to get to your point, there's not enough that would be able to supply employees for all the courts

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation heard presentations on the Office of the State Public Defender, civil legal aid funding, and Judicial Branch operations. The State Public Defender requested permanent funding for positions that had been temporarily funded to implement the Racial Justice Act, explaining that the workload has grown substantially through retroactive capital-case briefing, habeas proceedings, data requests, and related statistical analysis. She also presented findings from a public defense workload and staffing report showing that California’s county-based public defense system is under-resourced, with too few attorneys, investigators, and support staff, especially in rural counties, and that statewide standards and funding are lacking. Committee members asked about the scope of racial bias claims, the impact of collaborative courts and Prop. 36, and the need for statewide cost estimates and phased funding options. The committee then heard from legal aid advocates and a Los Angeles Superior Court judge in support of increased civil legal aid funding. Witnesses described the Equal Access Fund, homelessness prevention services, health care access, and immigration detention defense as cost-effective ways to prevent evictions, stabilize families, and reduce downstream public costs. They requested a $50 million increase to the Equal Access Fund, $20 million to restart homelessness prevention services, and $10 million for health care access work, along with additional targeted investments from the California Access to Justice Commission. Testimony emphasized the severe shortage of legal aid attorneys, the high demand for immigration representation, and the role of legal aid in domestic violence, housing, and family law matters. Senators asked for more information on service locations, outreach, funding losses, and how the requested amounts were calculated. In the Judicial Branch overview, Judicial Council and trial court representatives supported the Governor’s proposed budget, including a $70 million increase for trial court operations, $21.7 million for employee health and retirement costs, and funding for appellate counsel and case processing. They said the money is needed to offset inflation, supply chain costs, and staffing pressures, and to preserve access to justice. Senators pressed the branch and Department of Finance on interpreter shortages, midyear funding flexibility, courthouse facilities needs, and judgeship needs in inland counties. Finance officials said they were aware of the broader facilities backlog, and the committee requested follow-up information on the full capital and maintenance needs, interpreter funding, and updated judgeship and workload data. No formal votes were taken during the hearing.

Transcript Highlights:

• Equity Trade Network has over 40 members here in California, representing every point of the supply chain
• Each point of the supply chain has, in good faith, entered into becoming licensed operators in hopes
• chain verification, that are not aligned with pharmacy practices.
• Would this limit their supply to a GLP-1 to treat their diabetes?
• Would this limit their supply to a GLP-1 to treat their diabetes?

Summary: The Assembly Business and Professions Committee heard a long agenda of bills, with several cannabis-related measures drawing the most testimony. AB 1598 would extend and standardize licensing timelines for behavioral health professionals, AB 1850 would clarify that real estate wholesalers are subject to licensure and disclosure rules, AB 1794 would allow enteral formula to be shipped directly to patients’ homes, and AB 2402 would update an old cap on fees for multi-service health club studios. The committee also heard AB 1990 on compounded GLP-1 drugs, AB 2249 on cannabis packaging attractive to children, AB 2532 on cannabis beverage serving sizes, AB 2537 on prioritizing cannabis enforcement, and AB 1826 on due process protections for cannabis businesses facing embargoes or recalls. Testimony was generally split between public health or consumer-protection advocates and industry representatives. Supporters of the cannabis bills argued for clearer rules, better consumer safety, and more predictable enforcement, while opponents warned that some proposals could overreach, burden compliant businesses, or restrict legitimate branding and access. On AB 1990, supporters said compounded GLP-1 products need stronger testing and truthful advertising, while pharmacists and compounding advocates said existing law already covers much of the conduct and that the bill could create access problems. On AB 2249 and AB 2532, public health witnesses emphasized risks to children and accidental overconsumption, while industry groups sought narrower language and more implementation time. The committee took several roll-call votes after quorum was established. AB 2249, AB 1826, AB 2402, AB 1794, and AB 2532 were all approved and sent to Appropriations, and AB 1826 was sent to Judiciary. The chair and members repeatedly noted accepted committee amendments and, in several cases, said they were prepared to support the bills with those amendments. Some measures were left open or held pending further action as the hearing continued.

Transcript Highlights:

• Again, this concept of having every log tracked throughout the supply chain is just not practical.
• just</c><04:34:44.000><c> not</c><04:34:44.480><c> just</c> the supply supply chain is just not just
• the supply supply chain is just not just not<04:34:45.119><c> practical.
• Uh, integrity in the wood supply chain and, um, uh, we're all about managing forest sustainably.
• chain and um uh we're all wood supply chain and um uh we're all about<04:39:48.400><c> managing</c><

Committee: House Resources, Recreation and Development

Transcript Highlights:

• Today, the groundwater supplies.
• </c> wells to the city's water supply wells to the city's water supply infrastructure.<00:36:03.040><
• In a competitive supply chain, new costs introduced upstream inevitably move downstream.
• In a competitive supply chain, new costs introduced upstream inevitably move downstream.
• In a competitive supply chain, new costs introduced upstream inevitably move downstream.

Bills: HF3793 , HF3699 , HF793 , HF3322 , HF3426

Committee: House Environment and Natural Resources Finance and Policy

Keywords: groundwater, water use permit, data centers, public health, environmental regulations, municipalities, state park license plate, specialty license plate, Minnesota DNR, Department of Natural Resources, license plate design contest, North Shore, Lake Superior Agate, AI-generated art, artificial intelligence, Minnesota resident, state parks, specialty plates, vehicle registration, contest requirements

Transcript Highlights:

• The state recognizes the vital role that interisland shipping plays in our supply chain and our way of
• </c> island shipping plays in our supply island shipping plays in our supply chain<00:20:36.080><c> and
• chain across the state strong.
• </c><00:22:21.760><c> chain</c><00:22:22.080><c> across</c><00:22:22.480><c> the</c> keeping our supply
• chain across the keeping our supply chain across the street<00:22:23.360><c> state</c><00:22:23.679>

Summary: The committee heard testimony on several transportation-related bills. HB 1688, which would provide a general excise tax exemption for certain aircraft maintenance materials, parts, tools, and facility construction, received comments from the Department of Taxation and support from Alaska Airlines, Hawaiian Airlines, Kohala Coast Resort, the Activities and Attractions Association of Hawaii, and the Tax Foundation of Hawaii. Testimony indicated the measure was intended to clarify an existing exemption rather than create a new one. The bulk of the hearing focused on HB 2386, which would authorize the Public Utilities Commission to establish automatic adjustment mechanisms and a water carrier inflationary cost index. The Department of Transportation said it would change its testimony to support the bill, citing a 2020 working group recommendation, while the PUC and DCCA offered comments. Matson, the Maritime Group, Hawaii Harbors Users Group, and Young Brothers supported the measure, arguing it would modernize regulation, improve predictability, and help maintain reliable interisland shipping. Hawaii Farm Bureau offered comments, while Hawaii Food Industry Association, Maui Brewing Company, Lani Kai Brewing Company, and the Japanese Chamber of Commerce and Industry of Hawaii opposed it, arguing automatic rate increases were not the solution and that underlying costs and efficiencies should be addressed first. The chair noted the bill was essentially the same as one previously considered, and asked questions about how Hawaii’s water carrier regulation compares with other states. The committee also heard HB 1691, which would allow electronic signatures for certain motor vehicle title transfers after total-loss insurance settlements and remove the notary requirement for that narrow transaction. The City and County of Honolulu Department of Customer Services, Hawaii Insurers Council, Copart, American Property Casualty Insurance Association, and one individual supported it, with Copart saying the change would reduce delays and could allow a faster, largely electronic settlement process. Members asked about county impacts, and Copart said counties would only see a different form with no added cost or electronic integration. HB 1680, requiring county finance directors to notify agencies through a centralized system for vehicle transfers, drew opposition from the City and County of Honolulu Department of Customer Services and one individual in support. HB 2516, raising helmet requirements for electric foot scooters and bicycles and requiring helmets for high-speed or Class 3 electric bicycles, received support from DOT, DOH, AAA Hawaii, and the Hawaii Bicycling League. HB 193, allowing deaf vehicle owners to register a deafness designation visible to law enforcement, drew support from the City and County of Honolulu Department of Customer Services, the Hawaii Disabilities Rights Center, and an individual who suggested amendments to broaden the bill to deaf and hard of hearing individuals and adjust the proof standard. HB 2442, increasing required accessible and van-accessible parking spaces in larger parking lots, was supported by the Disability and Communication Access Board, the Council on Developmental Disabilities, and the Disability Rights Center, which said the bill would address shortages of accessible parking and may need technical amendments to align terminology with the ADA.

Transcript Highlights:

• We have two that supply the state with fuels, or that could supply the state via Colonial Pipeline.
• The market establishes the price based on available supply and the demand for that supply.
• And just to give some context to that, the reason for that is ultimately supply chain and logistics because
• chain.
• As a card-carrying member of the ARP, I wish my fellow, Our supply shortage.

Transcript Highlights:

• if you go to the second page of my remarks, you'll see... see that according to state professional supply
• But since 2007, inflation and supply chain issues have really significantly increased prices, and those
• chain challenges.
• However, as has been stated, there are not enough available units to supply those who need it.
• state's current shortage of rental units as an affordability concern, stating that the "shrinking supply

Bills: HB158 , HB714 , HB 1198 , HB1630 , HB1998 , HB3509 , HB3788 , HB3875 , HB3948 , HB3977 , HB4097 , HB4313 , HB4314 , HB4317 , HB158

Committee: House Intergovernmental Affairs

Keywords: housing, veterans, surplus government property, affordable housing, funding sources, housing assistance, homeless prevention, landlord incentives, rural housing, domestic violence, community development, tenant readiness, program participants, financial assistance, homelessness, rental support, Texas Tenant Readiness Program, tenant assistance, housing stability, Texas Department of Housing

Transcript Highlights:

• Chris Tremote on behalf of the California Trucking Association and Supply Chain Federation in opposition
• Christian Moat on behalf of the California Trucking Association and Supply Chain Federation in opposition
• whether large-scale developments have a reliable water supply.
• Water Supply Assessments, or WSA. Over a 20-year period.
• The water supply assessment process focuses on identifying the water supply needed for a large-scale

Committee: Senate Local Government

Summary: The committee heard several bills focused on wildfire resilience, land use, and local government transparency. SB 911 by Senator Becker would require notification to fire enforcement agencies when a home in a high fire severity zone is sold with an agreement for the buyer to bring the property into defensible-space compliance; the California Association of Realtors said it would drop opposition if the bill is amended to use the preliminary change of ownership report, and the bill passed 4-0 to Appropriations. SB 994 by Senator Cabaldon would bar local officials from signing nondisclosure agreements that prevent them from sharing information with the elected decision-makers of their jurisdiction; supporters framed it as a transparency measure, and it also passed 4-0 to Appropriations. SB 1041 by Senator Riggins would expand PACE financing for wildfire home-hardening improvements and add consumer protections, but it drew strong opposition from homeowner advocates, county treasurers, bankers, and others over predatory lending and lien concerns; it passed 3-2 and remained on call. The committee also considered SB 1075 by Senator Reyes, which would require local governments in AB 617 communities to consider air-quality reduction measures in land-use approvals for industrial and commercial projects. Environmental justice groups supported the bill as a way to implement community air plans, while counties, cities, business groups, builders, trucking interests, and others opposed it as duplicative of CEQA and a barrier to investment and jobs. After debate over local control and environmental justice, the bill passed 3-2 and remained on call. SB 958 by Senator Cabaldon would advance the Midway Rising redevelopment project in San Diego, replacing a former arena and parking lots with housing, affordable units, parks, and a new entertainment venue; with no opposition voiced, it passed 3-0 to Appropriations. Another wildfire-related measure, SB 1182 by Senator Allen, would require local governments to consider insurance availability in safety planning for development in high fire hazard areas and direct state technical guidance on the issue. Supporters said insurance access is now a key indicator of risk, while some members questioned whether the bill would add useful information or burden local governments; the bill received a 1-1 vote and remained on call. The committee then began hearing SB 1116 by Senator Caballero, a starter-home/infill housing bill creating a streamlined ministerial path for small projects up to 10 units, but the transcript cuts off before testimony or a vote on that measure.

Transcript Highlights:

• 2021, with the objective of promoting deeper bilateral investment, expanding trade, strengthening supply
• chain resilience, and encouraging the establishment and expansion of operations... ...supply chain resilience

Summary: The House opened with prayer, the Pledge of Allegiance, approval of the journal, and a proclamation recognizing and strengthening Arizona’s relationship with Taiwan. The proclamation highlighted Taiwan’s trade and economic ties to Arizona, bipartisan legislative support for Taiwan over many years, and support for Taiwan’s participation in international organizations. Members also welcomed Taiwanese diplomatic guests and noted plans for a bipartisan Arizona-Taiwan caucus and a future Taiwan consulate in Phoenix. The House then resolved into Committee of the Whole and considered a series of Senate bills. Among the measures advanced were SB 1004, SB 1012, SB 1040, SB 1049, SB 1168, SB 1326, SB 1021, SB 1052, SB 1172, SB 1188, SB 1212, SB 1346, SB 1452, and SB 1494, with several amended. Topics included law enforcement tracking of homeless sex offenders, spousal maintenance, election/government accountability, hyperbaric oxygen therapy in assisted living, re-credentialing timelines, controlled substance scheduling, vaccine-related concerns, Access fraud prevention, transportation fixes, and protections against patient brokering. Some members raised objections to SB 1049, SB 1021, SB 1212, and SB 1346, citing fairness, separation of powers, public health, and budget concerns, but the bills still advanced. After the Committee of the Whole report was adopted, the House moved several bills to third reading and voted on them. SB 1164, SB 1174, SB 1189, and SB 1754 passed overwhelmingly or unanimously, while SB 1413 failed 2-48 after members argued it contained a significant change to moving-violation liability and restitution that had not been clearly reflected in the bill materials. The House later reconsidered the failed vote on SB 1413 and then adjourned until Monday, April 20, 2026.

Transcript Highlights:

• 2021, with the objective of promoting deeper bilateral investment, expanding trade, strengthening supply
• chain resilience, and encouraging the establishment and expansion of operations... ...supply chain resilience

Transcript Highlights:

• Cost of drugs go up, cost of personnel goes up, cost of drugs go up, and supply chain demands.
• Cost of drugs go up, cost of personnel goes up, cost of drugs go up, and supply chain demands.
• Its whole job is to find services, vendors, group purchasing arrangements, organizations, supply chain

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The subcommittee met to review Department of Human Services hospital payments in Arkansas Medicaid, with DHS Secretary Janet Mann and Deputy Secretary Misty Eubanks presenting first, followed by Arkansas Hospital Association Executive Vice President Jody Ann Tritt and a brief comment from Arkansas Children’s. DHS outlined the main hospital payment streams: fee-for-service per diem payments, upper payment limit (UPL) supplemental payments, cost settlements, and smaller payments such as graduate medical education and disproportionate share hospital funds. Members asked for plain-language explanations of cost settlements, why per diem rates vary by hospital type, and why UPL applies to private hospitals. DHS said cost settlements and UPL are mechanisms to help offset Medicaid underpayment, with SFY 2025 hospital payments totaling hundreds of millions of dollars and no general revenue used for supplemental payments beyond the state share funded through hospital assessments and related financing structures. Committee members focused heavily on whether Arkansas hospitals are adequately reimbursed and why rural hospitals struggle. Tritt explained that critical access hospitals, rural emergency hospitals, PPS hospitals, and specialty hospitals operate under different federal and state rules, and said lower per diem rates for some facilities help with cash flow and later cost settlement adjustments. She said Arkansas hospitals are under financial strain, citing a negative patient services margin statewide and noting that Medicaid, Medicare, and commercial payers all contribute to the problem. She also said the association had just authorized a statewide survey of hospital finances and costs, which she expected would take about a year to complete. A major theme was commercial insurance reimbursement. Tritt argued Arkansas hospitals are paid far less than hospitals in neighboring states even though premiums are similar, and said administrative burdens, prior authorizations, and denials add to the problem. She said hospitals receive about 52 to 53 cents on the dollar for Medicaid costs without UPL and about 78 cents with UPL, still below cost. Members also discussed Medicare wage index issues, Medicare Advantage, and whether hospitals could use technology or alternative arrangements to improve finances. No votes were taken on the hospital presentation. At the end of the meeting, DHS provided a brief update on Living Choices and assisted living reimbursement. Officials said one assisted living facility, Pillars of the Community in Crossett, had announced closure, with nine waiver clients being transitioned to other settings. DHS said the current cost reporting period was underway and that a new rate study could be ready for review before the end of the fiscal year if reports were submitted on time. Members also asked about the broader waiver plan, and DHS said the next waiver iteration would likely be brought back to the committee in the summer.

Transcript Highlights:

• With the remaining 1%, pharmacies pay for salary, rent, supplies, and the B&O tax on those same exact
• percent, isn't quite apples to apples and does have an impact on all pharmacies, large corporate... ...chain
• Pharmaceutical wholesalers are a critical part of Washington's health care supply chain, safely delivering
• They will move through the supply chain and could ultimately impact patients.

Committee: House Finance

Transcript Highlights:

• With the remaining 1%, pharmacies pay for salary, rent, supplies, and the B&O tax on those same exact
• percent, isn't quite apples to apples and does have an impact on all pharmacies, large corporate... ...chain
• Pharmaceutical wholesalers are a critical part of Washington's health care supply chain, safely delivering
• They will move through the supply chain and could ultimately impact patients.

Summary: House Finance held public hearings on three Senate bills. SB 6129 would raise cigarette taxes, replace current nicotine/vapor product taxes with a 95% tax on nicotine products, and adjust revenue distributions to the Andy Hill Cancer Research account, the Foundational Public Health Services account, and a youth prevention account; staff and supporters said it would correct an unintended loss of public health funding and reduce youth nicotine use, while opponents argued it would be highly regressive, harm retailers and wholesalers, and push sales into illicit markets. SB 6231 would repeal the data center sales tax exemption for refurbishment and end replacement server equipment eligibility; the sponsor and staff said it would raise roughly $200 million and remove an obsolete preference, while labor, port, business, and data center representatives opposed it, citing lost jobs, reduced investment, and concerns about upsetting existing contracts and rural economic development. SB 6228 would repeal the preferential B&O rate for warehousing and reselling prescription drugs and create a lower preferential rate for critical access pharmacies; the sponsor said it would restore horizontal equity in the tax code and offset impacts on rural pharmacies, but pharmacy groups, wholesalers, retailers, and business organizations warned it would raise medication costs, worsen pharmacy closures, and be passed through to patients. The committee heard extensive public testimony on all three bills. Supporters of SB 6129 included public health, cancer, pediatric, and emergency medicine advocates who emphasized youth prevention, cessation funding, and long-term health savings; opponents included tobacco, vape, retail, and business groups who said the bill would increase black-market activity and burden small businesses. SB 6231 drew opposition from construction trades, ports, local governments, chambers, and data center interests, who argued the tax preference supports ongoing construction, permanent jobs, and local tax bases, while committee questions focused on whether the bill would affect existing refurbishment contracts. SB 6228 was opposed by pharmacy associations, independent pharmacists, wholesalers, grocery retailers, and AWB, who said the tax increase would be passed through and could accelerate pharmacy desert conditions; the sponsor and supporters framed the bill as a correction to an outdated preference and a way to protect critical access pharmacies. No votes were taken; each hearing was closed, and the chair announced amendment requests were due Thursday at 5 p.m. and amendments posted by Friday at 5 p.m.

Transcript Highlights:

• > material supports one of the most material supports one of the most profitable<00:20:16.320><c> supply
• </c><00:20:16.640><c> chains</c><00:20:17.039><c> of</c><00:20:17.200><c> commerce</c> profitable supply
• chains of commerce profitable supply chains of commerce that<00:20:17.840><c> reaches</c><00:20:18.240