Transcript Highlights:

• The Senate Committee on Finance will come to order. Well, the green light's on. Okay.
• It's great to be back on the Senate Finance Committee.
• It's great to be back on the Senate Finance Committee.
• TIDC is financed by GR and GRD funds.
• Item 1, the method of finance swap.

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee convened for its first hearing of the 89th regular session, confirmed a quorum, adopted committee rules by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the committee’s organization, introduced staff, and described the budget as conservative and focused on one-time investments. She highlighted major SB 1 priorities including property tax relief, full funding for public education formulas, teacher pay, school safety, border security, Medicaid growth, dementia research, energy and water infrastructure, transportation, wildfire suppression, and other capital and public safety needs. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending in 2026-27, with a projected $23.8 billion ending balance from the current biennium. He cautioned that revenue growth is returning to more normal levels and that lawmakers should avoid committing short-term surpluses to ongoing expenses. He also explained that the Economic Stabilization Fund is projected to hit its constitutional cap, meaning an estimated $5.6 billion in severance tax and related revenue would remain in general revenue in the upcoming biennium rather than flow into the fund. Senators discussed whether to raise or rename the fund and the implications of keeping more severance-tax revenue in general revenue. The Legislative Budget Board then gave an overview of SB 1 and the budget’s major funding changes. LBB staff explained that the bill is essentially flat at $332.9 billion in all funds, but includes large method-of-finance shifts and major property tax relief. They detailed how prior property tax relief enacted in the 88th Legislature grew from an estimated $18 billion to $22.7 billion because of higher property values and hold-harmless provisions, and said SB 1 continues that relief with a total of $51 billion in ongoing and new property tax support. Members asked extensive questions about the automatic growth in school tax compression, the constitutional homestead exemption, COVID-era federal funding, Medicaid assumptions, and the sunset of the non-homestead circuit breaker. No additional votes or final budget actions were taken beyond adoption of the committee rules.

Transcript Highlights:

• industry partners, such as computer information systems, cybersecurity, social work, health sciences, finance
• We're proud to be a part of helping to fill this gap and have a successful track record of developing
• This section shows the biennial difference from the 24, 25 base broken out by method of finance.
• Community colleges play a vital role in closing this gap by providing affordable, accessible pathways
• We currently have a skills gap, uh, due to low postsecondary attainment that's putting a strain on our

Transcript Highlights:

• Agency to operate as the financing tool.
• gap in not having enough treatment beds and detox, and then there's a gap at the end of where do people
• This fills in that gap.
• the financing startup costs to developing this.
• the financing startup costs to developing this.

Summary: The committee first heard AB 1157, the Affordable Rent Act, which would lower California’s annual rent cap, remove the single-family home exemption, and eliminate the sunset on existing tenant protections. The author and supporters argued that renters are facing severe affordability pressures, especially in single-family rentals, and that stronger statewide rent stabilization is needed to prevent displacement and homelessness. Opponents, including apartment, building, and property-owner groups, said the bill would discourage housing production, harm small landlords, and override a deal they said was intended to be temporary while the state focused on building more housing. Public testimony on AB 1157 was extensive, with many renters, tenant advocates, labor groups, and community organizations speaking in support, while many landlords, business groups, and property-owner representatives spoke in opposition. Committee members were split: some praised the bill as a necessary response to the rent crisis, while others warned it could reduce investment and worsen the housing shortage. The committee ultimately voted 7-5 to pass AB 1157 to the Assembly Judiciary Committee. The committee then approved the consent calendar, including AB 413, AB 1152, and AB 1275, on a 9-0 vote. It also heard ACA 3, which would require the University of California to make available a limited number of down payment loans for eligible long-term support staff who are first-time homebuyers. Supporters said the measure would help lower-wage UC workers afford homeownership and improve retention, while UC and other opponents argued the proposal was duplicative of existing state programs, unnecessary, and potentially harmful to UC finances. The discussion focused on financing mechanics and the relationship to CalHFA, but no final vote on ACA 3 was included in the portion provided.

Transcript Highlights:

• Brennan Cassina, Department of Finance.
• Brennan Cassina, Department of Finance.
• Tamara Weber, Department of Finance.
• So Sabrina Adams, Department of Finance... Sure, so Sabrina Adams, Department of Finance.
• Lisboskosio with Department of Finance.

Keywords: 987, senate, all

Summary: The subcommittee first heard May Revision items for child support, child care, and related human services. The Department of Child Support Services described two technical adjustments, which the LAO said raised no concerns. The Department of Social Services then walked through child care proposals, including a shift in how federal and Proposition 64 funding reductions would be absorbed, a 2.01% COLA, disaster-related child care infrastructure grants, an increase in in-contract administrative support costs for alternative payment agencies, reversion of prospective-pay implementation funding after a federal rule change, a one-time allocation to cover the first quarter of Cost of Care Plus payments in the next fiscal year, reappropriation for existing infrastructure grant closeout work, and estimates of unspent child care funds. The department also outlined trailer bill language on a single rate structure, site safety and emergency procedures, CalWORKs child care data sharing, and child care oversight. The LAO recommended that the Legislature seek more justification for shifting reductions from General Child Care to the Alternative Payment Program, noting that CAP reductions affect more slots and that General Child Care has had significant unspent funds. It supported removing prospective-pay funding, but recommended rejecting the administrative cost shift to a percentage-based rate because it could create future General Fund pressure. It also suggested the Legislature review alignment between the disaster grants and the child care infrastructure program. Senators and members pressed the administration on why the budget would reduce child care slots and COLA percentages while the state still has waitlists and unspent funds, and questioned the need for early funding of Cost of Care Plus payments and the move from a flat administrative amount to a percentage. Public commenters, including providers, advocates, county offices, and infrastructure partners, urged full COLA funding, preservation of child care slots, support for prospective pay, and continued investment in child care access and facilities. After a short recess, the committee moved to Part B on health and heard the Department of State Hospitals. DSH presented a May Revision budget of $3.2 billion and described proposals for a central utility plant replacement at Metropolitan State Hospital, an electronic health record implementation, reduced county bed billing authority due to phased-in LPS bed capacity, limited contract exemption authority for online clinical subscriptions, reversion of prior-year unspent operating funds, and a workforce development proposal shifting some costs to Behavioral Health Services Act funds, including support for an additional psychiatric training cohort at Napa. The department also outlined IST-related savings and a trailer bill to remove the sunset on the independent placement panel program.

Transcript Highlights:

• Um and we are fills that service gaps.
• <00:08:34.719> So,<00:08:34.880> the clear on the finance side of it.
• So, the clear on the finance side of it.
• <00:10:07.600> that find is that there's always a gap that find is that there's always a gap
• And so what this would to fill that gap.

Keywords: 1183, house

Transcript Highlights:

• Listen to the Committee on Finance.
• So I appreciate the Finance get.
• recommended by the committee on finance. recommended by the committee on finance.
• proposed by the committee on finance. proposed by the committee on finance.
• ,<01:01:33.480> elevating will look to identify gaps, elevating will look to identify gaps

Keywords: 927, senate, all

Transcript Highlights:

• Carly Malone, with the Legislative Finance Committee.
• I work at the Legislative Finance Committee.
• The gap is $2 million right now.
• And for whatever reason, the company doesn't get financed.
• And for whatever reason, the company doesn't get financed.

Keywords: 996, all

Transcript Highlights:

• Um, and they'll let the veteran, um, finance that fee, too, which is just encourageable to me.
• <00:04:15.280> that<00:04:15.519> fee, let the veteran um, finance that fee, let the
• veteran um, finance that fee, too,<00:04:16.079> which<00:04:16.239> is<00:04:16.400><
• that were created by the federal in gaps that were created by the federal government.<00:08:51.680><
• Ours has already been through finance and well received.

Keywords: 1187, senate, all

Transcript Highlights:

• <00:15:38.440> of We also want to look at the financing of We also want to look at the financing
• . gaps. gaps.
• But Thrive bridges that gap.
• With the transitions from treatment to the community, there is a gap. Thrive fills that gap.
• Thrive the community, there is a gap. Thrive fills<02:05:46.000> that<02:05:46.240> gap.

Keywords: 1187, senate, all

Transcript Highlights:

• I call the meeting of the House Human Services Finance and Policy Committee to order.
• that you're talking about I safety Gap that you're talking about I know<00:53:06.400> the<00:
• within 60 days or there's like a gap within 60 days or there's like a gap there<01:25:45.440>
• <01:26:23.960> in adequately um has some stop gaps in adequately um has some stop gaps in
• How are we going to close that gap and be able to manage the rate exceptions within DHS?

Keywords: 1183, house

Transcript Highlights:

• I think there's like a little gap there, um, but you know, hopefully more and more people will start
• So, um, that gap, right, there's about maybe a couple hundred 30,000 more people we can help.
• So um I think there's like<00:03:35.840> a<00:03:36.000> little<00:03:36.159> gap
• there um but you know like a little gap there um but you know hopefully<00:03:38.239> more<00
• > there's<00:03:44.319> there's that that gap, right, there's there's that that gap, right

Keywords: 1183, house

Summary: The committee heard House File 2499, as amended by the DE1, which would expand Minnesota’s renters’ credit by nearly doubling the income cutoff and increasing the maximum credit, with the bill laid over for possible inclusion in the tax bill. Representative Lee explained that the DE1 updated tax years and amounts after a new forecast, and argued the bill would bring the renters’ credit closer to parity with the homestead credit. She cited Department of Revenue data showing that recent changes to the renters’ credit increased participation and average refunds, and said the proposal would help more renters, including middle-income households and more seniors and people with disabilities. Testifiers Michael Dah of Homeline and Nan Madden of the Minnesota Budget Project supported the bill. Dah said renters face rising housing costs and a shortage of affordable homes, and described how renters use the credit for basic needs like school supplies, clothing, eyeglasses, dental care, groceries, and car repairs. Madden said the credit refunds property taxes paid through rent, helps workers, families, seniors, and people with disabilities, and noted that more than 310,000 households received the credit in 2023 across every part of the state. She also said recent filing changes made the credit easier to claim and increased participation. Members broadly discussed the fairness of treating renters and homeowners similarly, the role of property taxes in housing costs, and whether the bill should be viewed as helping low-income or more middle-income households. Representative Abeler, Smith, Howard, and Huitt expressed support, while Representative Roach argued the broader problem is rising property taxes driven by mandates on counties and said the bill is only a temporary fix. Representative Anderson questioned extending the credit to higher-income renters and said policy should prioritize homeownership, while Representative Lee responded that many renters are middle-class, that renters often cannot save for a down payment, and that the bill would help them stabilize financially. The bill was then laid over as amended.

Transcript Highlights:

• Will the Senate Committee on Finance come to order? Will the clerk please call the roll?
• These numbers are calculated by the Texas Public Finance Authority.
• This is a financing tool offered by the TPP. **K.J.
• The campaign finance laws do apply to political committees, and also I...
• It's campaign finance, it's the lobby law, and it's the...

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• co-chairs um Yua on the finance co-chairs um Yua on the finance committee<00:09:09.920> and
• We were able to pass a bill unanimously out of education finance.
• We were able to pass a bill unanimously out of education finance.
• We need to address that issue, finance.
• We talk about opportunity gaps that we're attempting to close in K-12.

Keywords: 919, house, all

Summary: House File 3900 proposed a Minnesota constitutional amendment to increase the share of permanent school trust fund earnings distributed to school districts, with the stated goal of providing more per-pupil funding without raising income or property taxes. Representative Igo, the bill’s author, described the history of the school trust lands and said the change would raise the payout from about 2.5% to 4.5%, producing additional unrestricted money for schools at no cost to taxpayers. He also read the proposed ballot question into the record, which would ask voters whether to amend the constitution to increase funding from the permanent school fund effective July 1, 2027. The House adopted amendment A7, offered by Representative Long, which he said was a technical change to align the bill with Senate language and provide administrative funding for the State Board of Investment. Representative Igo agreed it was a good technical fix. After the amendment was adopted, the bill was given third reading and debated on the floor. Several members spoke in support, including Representatives O’Driscoll, Scraba, Mueller, Bennett, Jordan, and Bakeberg. Supporters emphasized that the proposal would send more money to schools on a per-pupil basis, provide flexible local funding, and help districts facing budget pressures, staffing cuts, and other mandates. Some speakers also highlighted the historical purpose of school trust lands, the role of the State Board of Investment, and the need for better stewardship and government-to-government relationships with tribal nations where trust lands are located. The transcript ends during floor debate and does not include a final vote on passage.

Transcript Highlights:

• Manufactured homes are a low-cost but underutilized form of housing, but finding affordable financing
• have interest rates typically ranging currently between 8% and 12%, while conventional mortgage financing
• Thousands of families are still navigating insurance disputes, rising construction costs, and financing
• Given the insurance challenges, many providers have expressed interest in alternative risk financing
• options to increase the availability and affordability of insurance. ...financing options to increase

Keywords: 988, house, all

Transcript Highlights:

• Look to states to try to close that gap.
• The state has an of close that gap.
• We're trying to close that gap.
• We're trying to close that<01:34:16.639> gap.
• I mean, for us to actually that gap.

Keywords: 912, senate, all

Summary: The committees first took up SB 3322 relating to law enforcement. Chairs recommended adopting amendments from the Department of Law Enforcement that would exempt plainclothes officers from identification requirements, limit conspicuous agency markings to vehicles used in immigration enforcement operations, and allow a plainclothes officer to wear a mask when within eyesight of an unmasked officer from the same agency while performing official duties. Although there was an initial quorum issue, both committees ultimately voted to adopt the chair’s recommendation and advance the bill as amended. The next major item was SB 3333 relating to property tax treatment for certain housing. Testimony was strongly supportive, including from a Maui County real property tax board member and a representative of Nali Maui, who described homeowners in affordable housing being taxed at much higher rates when exemptions were missed or when resale restrictions kept values below market. The committees recommended passing the bill with amendments, including a deferred effective date of April 19, 2042, and the recommendation was adopted. The committees also heard SB 2422 on a pro housing score program for counties, SB 2981 on eliminating minimum off-street parking requirements in urban districts, SB 2007 on county land use boundary amendments, SB 3028 on restructuring the conveyance tax to a marginal rate system, SB 3033 on public petitions for review of beach structures, and SB 2434 on electric vehicle infrastructure. SB 2422 drew support with a request for flexibility and an appeals process for counties facing extraordinary circumstances; the chair’s recommendation was to pass it with amendments and note a $200,000 implementation study request, which was adopted. SB 2981 received strong support from housing and transportation advocates and was advanced unamended, while SB 2007 drew opposition from the Sierra Club and discussion about the Land Use Commission’s limited enforcement tools and the number of approved but unbuilt units. SB 3028 received mixed testimony, with support for the marginal-rate change but concerns about earmarking and blanks in the bill, and SB 3033 was supported as an early-warning mechanism for erosion-threatened coastal structures, though OPSD said it should not be the regulatory decision-maker. SB 2434 prompted concern about whether utility capacity can support EV infrastructure goals, with the chair citing a recent report suggesting transmission and distribution constraints.

Transcript Highlights:

• for very recently having collaborated with us with the governor's office in OFM to address that SNAP gap
• This would include conservation easements again, but also creative financing models for that farmland
• There's some gaps that we've seen left with the sunsetting of this program, including services through
• If you have capacity to tell us, like, in that desert, is there also a transportation gap, et cetera,
• If you have capacity to tell us, like, in that desert, is there also a transportation gap, et cetera,

Summary: The House Agriculture and Natural Resources Committee held a work session on food systems and food security, with no public testimony. The first panel focused on household food security and data. Marie Spiker of the University of Washington explained what food insecurity means, its health impacts, and the importance of reliable measurement, warning that the federal Census food security data is being terminated and that there is no true replacement. She described Washington’s WaFOOD surveys as a useful complement, not a substitute, and noted that they show food insecurity affects households at a range of income levels. Katie Raines of WSDA described the state’s food systems work, the need for shared data and dashboards, and the role of agriculture in both food production and the hunger safety net. Committee members asked about the $2.2 million state food assistance allocation, the scale of the SNAP gap, and how household size, housing costs, and other factors intersect with food insecurity. The committee then heard from Tracy Roof of the University of Richmond on the history of SNAP and its relationship to agriculture. She traced the program from Depression-era commodity distribution through the modern farm bill, emphasizing that food assistance has long functioned both as anti-hunger policy and as an agricultural and economic stabilizer. She highlighted how SNAP expands during recessions, supports retailers and farmers, and has become more important since the Great Recession because participation stayed high even as the economy recovered. Roof also noted that Washington has relatively high SNAP participation and low payment error rates, but that recent federal changes could reduce eligibility and shift more costs to states. Members asked how Washington compares to other states and why the program is structured as it is. A later panel featured the Washington State Food Policy Forum and a joint systems presentation from the Washington Farm Bureau, Washington Retail Association, and Washington Food Industry Association. The Food Policy Forum described its consensus-based recommendations on food insecurity, climate and water, regional food infrastructure, farmland protection, and farm viability, including more support for producer purchasing, water planning, and farmland conservation. The industry groups presented a systems map showing how agriculture, processing, retail, and transportation are interconnected, and argued that rising costs, regulations, labor and fuel expenses, retail theft, and thin margins make it harder to keep farms and stores viable. They said food security depends on store viability and local agricultural profitability, and promised to provide a more detailed list of policy recommendations. The final panel included state agency staff from DSHS, DOH, and WSDA. Bryce Montgomery said the Basic Food program serves about 920,000 Washingtonians monthly and warned that H.R. 1 could require Washington to pay up to 15% of SNAP benefits, broaden work requirements, and restrict immigrant eligibility. Karen Mullen described DOH nutrition programs, including WIC, farmers market nutrition benefits, fruit and vegetable incentives, and a fruit-and-vegetable prescription program, while noting funding instability and the end of SNAP-Ed. WSDA’s Katie Raines began describing ongoing food assistance and farmer support challenges, including farmer mental health and the need to address food insecurity across both producers and consumers.

Transcript Highlights:

• I have a $30 million gap for personnel that we did when we did the budget. Right.
• for personnel that we did million uh gap for personnel that we did when<00:35:22.800> we<00:35
• committees or fiscal and stuff, finance committees or fiscal and stuff, there's<00:40:54.320> two
• I think in this space, we're closing the gap.
• space, we're we're closing the gap. space, we're we're closing the gap.

Keywords: 1189, house, all

Summary: The committee met on January 23, 2026, to approve prior minutes and receive an update from the Department of Health and Human Services. The main presentation focused on “Project Compass,” an internal cross-department effort to prepare for changes to Medicaid and SNAP eligibility. Department staff said the goal is to maintain continuous coverage for eligible people, align policy, operations, communications, legal, finance, and eligibility work, and use the new integrated New HEIGHTS system to streamline implementation. They emphasized outreach to beneficiaries, providers, managed care organizations, and other partners, and said temporary manual workarounds had already been used to stay in compliance with fast-moving SNAP changes. Members questioned how the department would avoid repeating the costly outreach effort used in a prior Medicaid work-requirement rollout. Department officials said they are focusing on ex parte processes, sharing eligibility information across programs, and using community partners to reduce duplicate contacts and paperwork. They also said the department is monitoring the SNAP error rate closely, expects automation and a planned system contract amendment to help reduce it, and noted that current error rates are trending downward and remain below the national average. Questions were also raised about possible future SNAP restrictions on certain foods; the department said it can implement whatever the legislature directs, but that defining and administering such restrictions would be complex. The commissioner and CFO then outlined the department’s budget reduction plan. They said the department has begun implementing required “back of the budget” reductions for fiscal year 2026, using contract savings and not cutting existing services where possible. Examples included dental and home-visitation contracts, where spending was adjusted based on utilization and projected need. Officials said they had already written down a little over $15 million in prior-year encumbrances, but that this one-time source will not be available next year, making fiscal year 2027 more difficult. They also explained the difference between legally required back-of-budget cuts and lapse, and said staffing remains a major challenge because vacancies have increased and customer-facing service levels are strained. Dr. Jonathan Ballard then began an update on opioid overdose fatalities, presenting the latest medical examiner data and describing the long-term rise in deaths after fentanyl entered the illicit drug supply, with a peak in 2017 and a later increase in 2022. The transcript cuts off before his full presentation and any further committee action beyond discussion of the minutes and receipt of the department updates.

Transcript Highlights:

• For every dollar that a man earns, a woman earns 81 cents, with larger gaps for women of color.
• For every dollar that a man earns, a woman earns 81 cents, with larger gaps for women of color.
• Filling in the regulatory gaps, which is what SB 925 will do, and developing a statewide roadmap for
• Manufactured homes are a low-cost but underutilized form of housing, but finding affordable financing
• SB 1374 would close that gap by permitting the higher... ...education institution to seek a temporary

Keywords: 987, senate, all

Summary: The Senate convened with a quorum, approved the journals, and confirmed three gubernatorial appointments: Doreen Diyamo to the State Water Resources Control Board, Dr. Anne Maria de Mars to the State Athletic Commission, and Ronald Fiore to the State Athletic Commission. The chamber then took up a series of floor items, including SB 73 on election security, SB 929 on annual reporting by the California Energy Commission, SB 1370 on wildfire-related oversight testimony, SB 983 on Port of San Diego contracting authority, SB 1367 on restricting new detention-facility land use approvals, SB 1257 on annual reporting of immigration enforcement incidents, SB 1103 on retailer reporting related to immigration enforcement, SB 1399 on continuing DOJ reviews of immigration detention facilities, SB 873 on limiting ICE arrests near courthouses, SB 1292 on pilot camera/sensor enforcement for curb management, SB 878 on insurance prompt-payment penalties, SB 958 on CEQA clarification for building-height impacts, SB 924 on low-income energy assistance, SB 1057 on certification changes for nurse assistants and home health aides, SB 1092 on resident bid opportunities for mobile home park sales, SB 1123 on considering consumer benefits in regulatory analysis, SB 1233 on utility rate transparency, SB 1237 on pay equity reporting enforcement, SB 886 on data-center cost allocation, SB 905 on utility executive incentives and ratepayer protections, SB 909 on public works wage enforcement, and SB 925 on a statewide fusion-energy roadmap. Most of the debate centered on election security, immigration enforcement, utility rates, housing and land use, and environmental/CEQA policy. SB 73 drew sharp support and opposition over ballot custody and law-enforcement access at voting locations, with supporters framing it as a response to election interference and opponents arguing it would hinder legitimate investigations and raise constitutional concerns; the urgency clause and the measure both passed. Immigration-related bills were defended as protections for vulnerable communities and court access, while opponents argued they would obstruct enforcement and public safety. Energy and utility bills were presented as ratepayer protections and transparency measures, with supporters emphasizing affordability and accountability and opponents warning about regulatory burdens and impacts on business and utility operations. SB 954 generated extensive discussion over whether it appropriately refined last year’s CEQA exemptions for advanced manufacturing or improperly rolled back housing-related reforms; supporters said it added needed guardrails and labor/environmental protections, while opponents said it would add bureaucracy and uncertainty. Several measures passed on recorded votes, including SB 73, SB 929, SB 1370, SB 983, SB 1367, SB 1257, SB 1103, SB 1399, SB 873, SB 1292, SB 878, SB 958, SB 924, SB 1057, SB 1092, SB 1123, SB 1233, SB 1237, SB 886, SB 905, SB 909, and SB 925. SB 958 passed unanimously without objection, and SB 925 also passed unanimously. The transcript ends during continued debate on SB 954, with supporters and opponents still discussing the bill’s CEQA, housing, labor, and manufacturing provisions.

Transcript Highlights:

• We do include some information on Public Finance Authority bonding authorization.
• The Bank of North Dakota, the Department of Mineral Resources, the Housing Finance Agency, the Public
• Finance Authority, and the North Dakota Mill and Elevator.
• But then the gap net income reported is $231 over $200.
• So, I mean, that probably filled that gap. I'm thinking, but, but we, yeah, we got a problem.

Keywords: 908, all

Summary: The committee received a compliance and status update on Industrial Commission programs and the Bank of North Dakota. Staff reviewed appropriations and spending for several Industrial Commission funds and grant programs, including lignite research, oil and gas research, clean sustainable energy, grid resiliency, salt cavern analysis, and the new NDSU research and technology park grant. Members discussed the timing of reimbursements, uncommitted balances, and the structure of the pipeline capacity and enhanced oil recovery funding. The Industrial Commission also reported on its administrative budget, grant management system project, and recent leadership transitions across several agencies. Karen Tyler of the Industrial Commission described active grant rounds and the status of major projects. She said the Clean Sustainable Energy Authority approved three projects in its sixth round, with remaining uncommitted cash and loan capacity still available, though no new funding was appropriated this session. She also said the Oil and Gas Research Council approved six enhanced oil recovery projects and expects additional funding after a federal Department of Energy award replaces one project’s state funding. For grid resiliency grants, she said some projects have been funded, some commitments were returned or reallocated, and some DOE funds remain pending. She also updated the committee on the salt cavern business case study, which replaced an earlier larger development proposal, and on the NDSU research park grant, where the nonmatching portion was paid and the matching portion has moved slowly because the match must be in cash. Ron Ness then gave an extended presentation on enhanced oil recovery and North Dakota oil and gas trends. He said production remains steady, but future growth depends on infrastructure, especially gas takeaway and projects like the Bakken East pipeline. He argued that enhanced oil recovery using CO2, natural gas, surfactants, and other methods could extend Bakken production for decades, but that the state needs more CO2 supply, better storage, and updated tax and regulatory incentives. Members asked about lateral lengths, CO2 availability, pipeline impacts, and the role of the Strategic Petroleum Reserve, and Ness emphasized that the projects are intended to share technical learning across operators and attract follow-on investment. The Bank of North Dakota then presented its compliance report and strategic update. President Don Morgan said the bank’s mission remains to support North Dakota agriculture, commerce, and industry while cooperating with the state’s financial sector. He reviewed the bank’s main business lines: participation lending with community institutions, student loans, disaster lending, mission-based programs, and a new fintech-focused effort. Morgan said deposits are flattening, so the bank is managing balance sheet growth carefully, while still reporting improved net income and strong efficiency. He also introduced Rough Rider Coin as a bank-to-bank payment rail, not a public cryptocurrency, intended to speed and modernize payments within North Dakota’s banking and credit union system. Committee members asked about student loan eligibility, disaster program use, and how credit lines and liquidity would be affected if deposits shrink.

Transcript Highlights:

• We had an insurance industry workstream, and we had a catastrophe financing workstream.
• Protection gap enterprises are generally, in my business, how they're referred to, where there is a gap
• What are the different structural options that are available to the state to fill that gap?
• The CEA report also makes a fundamental point that wildfire risk harms utility finances.
• can be financed, and victims are protected.

Summary: The Assembly Committee on Utilities and Energy held a hearing on the California Earthquake Authority’s SB 254 report and broader options for reforming California’s utility wildfire recovery system. The chair framed the discussion around the Palisades and Eaton fires, the scale of wildfire-related costs on utility bills, and the need to weigh trade-offs among survivors, ratepayers, utilities, insurers, and taxpayers. The first panel featured wildfire survivors William Abrams and Joy Chen, who described long delays in compensation, housing insecurity, and what they viewed as a system that protects utility shareholders more than victims. They urged greater transparency, clearer accountability for utility spending and safety performance, faster and fuller compensation for survivors, and reforms such as independent audits and better alignment of utility incentives with wildfire prevention and restitution. The second panel began with Tom Welsh of the California Earthquake Authority, who explained that the SB 254 report was intended as a broad inventory of policy pathways rather than recommendations. He described the report’s process, including stakeholder submissions, workstreams, and a convergence process, and outlined the current wildfire fund structure: utilities remain liable, the fund reimburses eligible claims after a covered wildfire, and the CPUC later determines prudency and possible reimbursement back to the fund. RAND’s Lloyd Dixon summarized compensation data, saying utilities paid about $38 billion between 2017 and 2024, with major shares going to injured parties, insurers, and public entities, while litigation costs and survivors’ own losses remain substantial. He noted that legal fees and delays reduce the amount survivors ultimately receive. Utility and public-interest witnesses offered differing views on the report’s pathways. PG&E’s Tyson Smith said the report shows inaction is the worst outcome and argued for community wildfire risk reduction, equitable allocation of catastrophe costs, and state-led resilience tools. LADWP’s Fernando Valero emphasized the vulnerability of municipal utilities and cities, and supported inverse condemnation reform, a state-sponsored liability insurance framework, damages and subrogation limits, and stronger insurance access. Consumer Attorneys of California’s John Fisk argued that IOU-caused fires are not natural disasters but the result of negligence and sometimes criminal conduct, and opposed reducing utility liability while supporting stronger oversight and audits. The Public Advocates Office’s Nathaniel Skinner focused on affordability, saying ratepayers already bear large and growing wildfire costs and warning against shifting more costs onto bills without measurable risk reduction and tighter accountability. Committee members then began questioning witnesses about what counts as measurable mitigation, how to define full and fair compensation, and how any fast-pay process should work.