Transcript Highlights:

• The effective rate is assumed to increase to 22% in the pessimistic scenario.
• to<00:07:54.960> 22% would increase the tariff rate to 22% would increase the tariff rate
• to be limited to 4% annually. increase in the growth rates uh in the increase in the growth rates uh
• tax rate again over the last five years has increased, with 6% and 7% increases in those assessments
• It's important to know that the rate increased at the end of the year because the gas rate can increase

Keywords: 958, all

Summary: The meeting focused on preliminary fiscal 2026 revenue estimates and the governor’s office request for an official revision to fiscal 2026, with members reminded that any estimate adopted now would not bind the December official estimates. Staff from S&P Global walked through three forecast scenarios—control, optimistic, and pessimistic—based on recent federal tax changes, tariffs, and other policy developments, emphasizing that the outlook remains highly uncertain. Under the control scenario, the presentation projected below-trend real GDP growth of 1.8% in fiscal 2026, slowing to 1.5% by fiscal 2028, with unemployment peaking around 4.5% and the Federal Reserve cutting rates three times to a long-run range of about 2.75% to 3%. The optimistic scenario assumed lower effective tariffs, stronger growth, and better labor and housing outcomes, while the pessimistic scenario assumed a broader trade war, higher effective tariffs, faster deportations, weaker employment and consumer spending, and unemployment rising to about 6.3%. Speakers also noted that the forecast was prepared before later BLS revisions and that recent data on inventories and AI-related investment made the recent quarters look unusually volatile. Members discussed how the current fiscal 2026 outlook compared with earlier assumptions and noted that the eventual revenue revision may be smaller than the spread between the optimistic and pessimistic economic scenarios. The governor’s office and committee members also reviewed sector-specific impacts, including manufacturing, housing, light vehicle production, exports, and consumer sentiment, with particular concern about Kentucky’s auto and housing-related industries. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• Is it the Public Service Commissioner's fault for ratifying these rate increases?
• It will do nothing to stop the rate increases.
• Commissioners, ratifying rate increases. They are not elected officials.
• their rates, because they don't call them, they call you when your rates are being increased.
• increases, they'll see headlines, another rate increase has been approved, so they'll now know that

Keywords: 993, senate, all

Summary: The Senate convened, approved the prior journal, and then took up a series of utility and public service bills and resolutions. A resolution sponsored by Senator Scarcella-Spanton designating April 9, 2026, as Yellow Ribbon Day was adopted after remarks honoring veterans, active-duty service members, and their families. The chamber then moved through several Public Service Law measures focused on utility affordability, consumer protections, and PSC procedures, with some bills laid aside and others advanced. Among the bills passed were measures by Senators Mayer, Cleare, Hinchey, Comrie, and Parker. Debate on the Mayer bill centered on limiting utility expenses and fees recoverable in rate cases; supporters said it was part of a broader package to reform PSC practices, while opponents argued it would not lower current bills and had been softened from earlier versions. The Webb bill creating a residential utility usage monitoring program drew extended debate over whether it would meaningfully reduce costs, who would pay for the program, and whether it could lead to government monitoring of household usage; supporters said it would give consumers more control and transparency, while critics said it would not lower rates. The Gonzalez bill, which would add consumer protections during PSC investigations and delay shutoffs in certain circumstances, also passed after questions about whether it applied to rate cases, with the sponsor saying rate cases were explicitly excluded. Several members explained their votes, with supporters emphasizing affordability, transparency, and consumer protection, and opponents arguing the package would not address immediate rate relief and could burden ratepayers or encourage nonpayment. Senator Tedisco and others criticized PSC appointments and state energy policy, while Democratic sponsors argued the bills were part of a longer-term effort to reform utility regulation and address climate and affordability concerns. The chamber restored multiple bills to the non-controversial calendar before final votes, and the recorded results showed passage of the major utility bills by substantial margins, along with one amendment appeal being ruled nongermane and rejected.

Transcript Highlights:

• They would generate $146 million from increasing the sports betting tax rate from 10 to 45%.
• I will say that on the sports betting, you do run the risk of what is the impact of increasing the rate
• increased.
• government when they want to increase their rates and to what extent they addressed applied behavioral
• I am not comfortable with those supplemental rates and those increases, period, until we have guardrails

Bills: HB2053, HB2116, HB2148

Keywords: stormwater, recharge mapping, water resources, groundwater, appropriation, Arizona, HB2116, Colorado River, litigation fund, water rights, Arizona water law, general fund appropriation, state budget, interstate water compact, Colorado River Compact, water litigation, A.R.S. 45-119, natural resources, water policy, river management

Summary: The committee first considered House Bill 2116, which would appropriate $1 million in fiscal year 2027 from the State General Fund to the Colorado River Litigation Fund. The sponsor said it was a repeat of last year’s request and was intended as a backup if the seven Colorado River basin states cannot reach a new agreement. Arizona Department of Water Resources staff testified in support, explaining the state’s role in ongoing Colorado River negotiations and distinguishing the litigation fund from the executive’s separate Colorado River Protection Fund. The bill received a due pass recommendation on a 17-1 vote. The committee then took up House Bill 2053, which appropriates $100,000 to ADWR for updated stormwater recharge mapping and expands the mapping effort beyond state trust lands to private lands. The committee adopted Chairman Livingston’s amendment, which extended the coordination timeline to one year, broadened the agencies involved, and revised language on site eligibility and the definition of stormwater. The sponsor said the bill would help identify more places to capture stormwater for recharge, while ADWR testified neutral, supporting the mapping work but raising a concern about language tied to appropriable surface water because that is a legal determination for the courts. The amended bill passed 11-7. House Bill 2148 was then heard, proposing to give the legislature authority to appropriate non-custodial federal monies, with requirements for specifying purposes and allowing agencies to spend such funds if the legislature does not act. An amendment excluded university and Board of Regents research grants from the bill’s scope, which the chair said was intended to avoid implementation problems. The sponsor framed the bill as a transparency measure, and members discussed the large amount of federal pass-through funding Arizona receives. The amended bill passed 11-7. After the bills, the committee received a lengthy JLBC presentation comparing the executive budget with the JLBC baseline. Discussion focused on revenue forecasts, the impact of federal tax conformity, state employee health insurance costs, SNAP administrative and error-rate costs under H.R. 1, developmental disabilities and AHCCCS growth, and K-12/ESA funding trends. Members repeatedly criticized the executive budget for funding some ongoing costs on a one-year basis and expressed concern about rising caseloads and supplemental needs. No formal action was taken on the presentation.

Transcript Highlights:

• Things that we're watching impact on mortgage rates, obviously if those rates have increased and they
• Things that we're watching impact on mortgage rates, obviously if those rates have increased and they
• Things that we're watching impact on mortgage rates, obviously if those rates have increased and they
• So what interest rates look like? right? So what interest rates look like?
• in, uh, mortgage rates.

Keywords: 1191, senate, all

Transcript Highlights:

• While our reimbursement rates have increased only 23.7% over more than two decades.
• While our reimbursement rates have increased only 23.7% over more than two decades.
• While our reimbursement rates have increased only 23.7% over more than two decades.
• The other thing that caused the increase in the rate for managed care is on the pharmacy side.
• Uh, so it's going to increase the budget. the waiver rate study being implemented the waiver rate study

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services heard a presentation on Kentucky personal care homes from representatives of the Kentucky Association of Healthcare Facilities, Management Systems of Kentucky, and Elder Care Partners. Witnesses described personal care homes as a lower-cost, 24/7 residential option for adults with serious mental illness who do not qualify for nursing home care but need structured support, medication assistance, meals, housekeeping, transportation, and supervision. They said the homes are regulated by the Cabinet for Health and Family Services, are not Medicaid-funded, and rely on a state supplementation rate of about $50.70 per day, which they argued no longer covers operating costs because of rising food, labor, insurance, and maintenance expenses. The presenters said the sector has shrunk significantly over time, citing a drop from 64 homes in 2002 to 34 today among the homes serving this population, with 30 closures over 23 years and two more closures since August. They argued that the closures have contributed to homelessness, hospital overcrowding, and longer stays in psychiatric hospitals, and they gave examples of residents who had spent many months in hospitals before stabilizing in a personal care home. One provider also described spending more than $800,000 on capital improvements after acquiring Kentucky facilities and said reimbursement is too low to sustain safe operations. They asked for an incremental reimbursement increase over two years and said they have also proposed an assisted-living model for people with mental illness. Members asked about staffing, reimbursement, and the number of people still needing placement. The presenters said there is no requirement for licensed or certified staff in these facilities, though some homes use medication technicians and occasional LPNs. They estimated they are currently serving about 2,000 residents and said they receive roughly 30 referrals for every one person admitted, with many referrals involving people whose needs exceed the personal care home level. Senator Meredith and Representative Fleming said any funding request would need documentation of savings and corresponding budget offsets, while Representative Duval expressed support and asked about possible staffing and program improvements. The witnesses also compared Kentucky’s flat-rate reimbursement to a more individualized reimbursement model in Minnesota, saying a needs-based system would better match staffing and reduce hospitalizations.

Transcript Highlights:

• increases that Delmarva Power can recover in rates from customers, which will control future rate increases
• stronger controls on the drivers of rate increases, along with accountability and transparency measures
• So right now, utilities are allowed to, whatever they apply for in a rate increase, they can put into
• into increased rates, because that's how the spending is paid for, is by increasing the rates on everyone
• If the underlying cause of rate increases is not solved, the cap will just keep moving up over time.

Bills: SB287

Keywords: solid waste, recycling, universal recycling, single-stream recycling, multifamily housing, apartment recycling, commercial recycling, waste diversion, recycling grants, low-interest loans, Delaware Recycling Fund, Delaware Solid Waste Authority, DNREC, waste hauler, curbside recycling, yard waste, source-separated recycling, pay-as-you-throw, extended producer responsibility, waste bans

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:

• And you can see the rates over time have increased for our research institutions and relatively flat
• You've increased it to half the KCTCS rate.
• You've increased it to half the KCTCS rate.
• basically at the rate of increased basically at the rate of inflation<01:04:01.360> according
• annual increase of that resident undergraduate tuition rate over this period has been 2.95%.

Keywords: 958, all

Summary: The Interim Joint Budget Review Subcommittee on Education met for its first summer interim meeting, opened with prayer and the Pledge of Allegiance, and took roll. The first presentation came from Jerry Gels, principal of Ignite Institute in Erlanger, who focused on the rising cost of dual credit. He said dual credit tuition has increased from about $150 to $290 for a three-credit course over roughly five years, which he argued is discouraging participation, especially for working-class and low-income students. He cited Ignite data and broader college outcomes to argue dual credit improves college persistence, shortens time to degree, and reduces student debt, noting that many of his students enter college with substantial credit and that low-income students at Ignite have increasingly participated after targeted efforts and scholarship use. He also said the instructional labor is largely paid by county school systems, so he questioned the size of the tuition increase and said the committee should examine how the costs are being set and whether college tuition should be stabilizing as more students arrive with credits already earned. Members asked about who pays for dual credit, the role of state scholarship support, and whether tuition varies by institution. Gels said students in his district generally pay the dual credit cost themselves, though some districts may cover it, and he noted the dual credit scholarship now covers fewer classes than before. He said the price appears to be set centrally rather than varying by university, and he emphasized that the higher cost is creating barriers even though the courses are taught largely by local teachers on school payrolls. He also described Ignite’s efforts to expand access for free- and reduced-lunch students, saying participation among that group rose from 27% with no dual credit to about 90-92% taking at least one dual credit class. The committee then heard from the Goldwater Institute, represented by Michael Frazier and Dr. Tim Minella by Zoom. They argued Kentucky’s public universities should face stronger accountability and transparency, citing declining public confidence in higher education, rising costs, and what they described as administrative growth and research spending that does not clearly benefit students or the Commonwealth. They proposed requiring a 10-year accounting of staffing growth by category, comparing it to enrollment and low-income Kentucky enrollment, and limiting non-STEM faculty teaching releases for research unless approved under a baseline consent process. They also criticized certain university-funded research projects as examples of misdirected spending and said public reporting should distinguish Kentucky residents from non-residents more clearly, pointing to a reported decline in low-income in-state undergraduate enrollment. No votes or formal actions were taken during the meeting.

Transcript Highlights:

• That's actually going to inflate enrollment, thus causing increased error rates.
• The first is by increasing our error rate.
• Um the first is by increasing our error<00:29:30.880> rate.
• <00:29:43.240> would small increase in that error rate would small increase in that error
• just to increase by less than a percent, it would increase the cost even more because your error rate

Keywords: 958, all

Transcript Highlights:

• or provider rates were increased, that would result in a larger increase for the administrative agencies
• So it would have an increase in the out years depending on whether or not those rates are increased or
• So it would have an increase in the out years depending on whether or not those rates are increased or
• increases compared to rates in 2024.
• We're requesting a 40% rate increase for PDN services.

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:

• The provider gets 150% of the rate and then the employee is not getting the increased pay, the provider
• Chair. increase is coming. So even though the increase is coming.
• ><00:31:55.440> case<00:31:55.679> let's increase the rate in which case let's increase
• If we increased the rate to make sure that people could get what they needed, you should use it for people
• If we increased the rate<00:36:21.440> to<00:36:21.680> make<00:36:21.839> sure<

Keywords: 1183, house

Transcript Highlights:

• So another thing noted in a previous budget act was that the concentration grant rate was increased from
• For example, in this Governor's budget proposal, the increase did not take away from Rate 2.
• It was an increase to support the funds going to the new Rate 1 local education agencies.
• 1 and Rate 2 going back to Rate 2.
• We have, and the poverty rates are increasing, the number of students living in homelessness are increasing

Summary: The committee heard presentations on the Governor’s education budget proposals for the Local Control Funding Formula (LCFF), Learning Recovery Block Grant, and Expanded Learning Opportunities Program (ELOP), followed by testimony from State Board of Education President Linda Darling-Hammond. On LCFF, Finance outlined the proposed 2.43% COLA, repayment of prior deferrals, and a trailer bill penalty for LEAs that fail to adopt Local Control Accountability Plans on time. The LAO said its COLA estimate was slightly lower and raised concerns that the Governor’s proposed TK staffing ratio increase may be more costly than estimated. Members also discussed whether the current COLA formula should better reflect California-specific or district staffing costs, and whether TK should be more clearly separated from the K-3 grade span adjustment to avoid larger K-3 class sizes. The chair asked staff to work with the LAO on both the TK/K-3 issue and alternative COLA calculations. For the Learning Recovery Block Grant, Finance proposed restoring the first of three delayed payments, $378.6 million one-time Proposition 98 General Fund, while the LAO recommended adopting the proposal but extending the expenditure deadline by at least a year. The LAO reported that districts had spent $1.6 billion of the $6.8 billion received through 2023-24 and said most districts were only now shifting from federal COVID relief to block grant spending. Members questioned whether the large state and federal investments were improving outcomes, citing declining reading and math trends, while Finance and the State Board president pointed to some signs of improvement, especially in math, attendance, and gains for some student groups. Darling-Hammond emphasized that student needs have grown, that recovery spending has gone to devices, ventilation, staffing, tutoring, summer school, and community schools, and that targeted interventions appear to be helping some districts recover faster than others. On ELOP, Finance proposed adding $435 million to expand universal access by lowering the Tier 1 threshold from 75% to 55% unduplicated pupils, bringing ongoing funding to $4.4 billion. The LAO said the estimate was reasonable but recommended delaying implementation for a year, aligning ELOP with ASES to reduce overlap, moving toward funding based on participation rather than enrollment, and considering a fixed Tier 2 rate. Members and witnesses discussed staffing challenges, the use of funds for students with disabilities, and uncertainty in Tier 2 funding caused by unspent dollars and opt-outs. Darling-Hammond supported ELOP as part of California’s broader after-school and summer learning strategy, said most districts are now offering full-day TK and expanded learning, and urged the state to reduce fragmentation across categorical programs and build more unified systems for funding, reporting, and support.

Transcript Highlights:

• One example of that that we're watching is attendance rates, but a huge increase in absenteeism during
• Increase, surge in absenteeism during the pandemic, and every year since 21-22, attendance rates have
• For example, in this Governor's budget proposal, the increase did not take away from Rate 2.
• It was an increase to support the funds going to the new Rate 1 local education agencies.
• The poverty rates are increasing, and the number of students living in homelessness is rising.

Keywords: 988, house, all

Transcript Highlights:

• rates all went up.
• <00:08:10.599> and experience rate and a base tax rate and experience rate and a base tax
• An experience rate increase, you know, lags between 18 months and 2 years after the increase in activity
• > an design an experience rate you know an design an experience rate you know an increase<00:14
• ><00:14:24.720> of<00:14:24.800> lags increase in experience rate sort of lags increase

Keywords: 1187, senate, all

Transcript Highlights:

• A lot of the state plan amendments, such as, you know, the nursing home work standards, board rate increase—that's
• Rate increases are now capped at the lesser of 4% or CPI.
• And if there is a delay, once we get approval, the rate... Increase will go back to January 1st.
• However, my understanding is that the requirement for the rate increase to go to the wages is effective
• rate.

Keywords: 1183, house

Transcript Highlights:

• to rate increases down the road, I wouldn't say that was the reason for the rate increases in that case
• to rate increases down the road, I wouldn't say that was the reason for the rate increases in that case
• to rate increases down the road, I wouldn't say that was the reason for the rate increases in that case
• to rate increases down the road, I wouldn't say that was the reason for the rate increases in that case
• > which<02:46:37.760> was monthly rate increase as well, which was monthly rate increase as

Keywords: 1191, senate, all

Transcript Highlights:

• Although the unemployment rate has increased slightly over the past year, this is still a low rate. high
• > increased<00:16:34.959> slightly unemployment rate has increased slightly unemployment rate
• c> case Most disability waiver rates are increased every two years to account for inflation.
• Estimated spending, including inflation, will increase at a faster rate of 4.7% per year.
• Estimated spending, including inflation, will increase at a faster rate of 4.7% per year.

Keywords: 1187, senate, all

Transcript Highlights:

• We see some bottoming out of coal prices and stable to increasing natural gas prices alongside increased
• You see the big increases there.
• The intermediate care and nursing health rates are fine. They're not part of the phased-down rates.
• State rate comparisons: this is averaging the state and local rates together.
• Not a tremendous increase, and nationally payroll employment jobs have increased, but not by a whole

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum present and first approved the minutes from the January 15 morning meeting. The main agenda item was the Department of Revenue’s budget and revenue presentation from Secretary Eric Nelson, Deputy Secretary Peter Shirley, and Deputy Secretary Mark Mucco. Nelson said the state remains double-A rated with a positive outlook, the budget includes a 5% personal income tax reduction, and the 2027 general revenue estimate is $5.493 billion, up $170 million from the prior year. Shirley gave an economic overview, saying West Virginia is forecast to see continued but slowing employment growth, continued wage growth, gains in private education/health services and business services, declines in some sectors, improving labor force participation relative to the nation, and strong recent net in-migration. He also noted continued growth in natural gas production and a modest rebound in coal production, though coal faces longer-term demand pressure. Mucco reviewed revenue trends and said 2025 collections were about $5.5 billion, below the prior year but above estimate, with personal income tax and sales tax driving the surplus. He explained that the forecast incorporates the 5% PIT cut and annual conformity to the federal One Big Beautiful Bill Act, including changes such as Section 179 expensing, bonus depreciation, R&D expensing, business interest deductions, and a new manufacturing facility expensing provision. He also discussed the effects of tax credits, severance tax volatility, declining tobacco revenues, and health care provider tax changes tied to federal Medicaid rules. He said road fund revenues are largely flat absent policy changes, and county commission revenues are growing faster than state revenues. Members asked about when new economic development projects like NewCore would appear in the projections, how much 20,000 new jobs would matter, whether the department had a calculator for job-growth impacts, the status of recent tax cuts, road fund growth, tobacco/vape taxation, and whether migration data could be broken down by county. The witnesses said major projects are not yet in the S&P-based forecast but would likely add jobs, wages, and tax revenue over time; they estimated 20,000 jobs would be a significant increase. They also said the state is unlikely to hit the current personal income tax trigger in the near term. No substantive votes were taken beyond approving the minutes, and the committee adjourned after a motion carried by voice vote.

Transcript Highlights:

• Increased rates will also advance health equity.
• Increased rates will also advance health equity.
• Increased rates will also advance health equity.
• . the benefits of the bills rate increases the benefits of the bills rate increases by<00:24:59.640><
• rate increase um can are covered in this rate increase um can we<00:31:37.039> talk<00:31:37.240

Keywords: 1187, senate, all

Transcript Highlights:

• I went from reporters asking me, why am I allowing for these rate increases?
• And then literally the day before the fire, why are you suppressing rate increases?
• I went from reporters asking me, why am I allowing for these rate increases?
• And then we're going to start seeing the rate increases.
• At me because of what's going on and the rate increases.

Summary: The committee first heard AB 597, a bill to strengthen consumer protections for disaster survivors who use public adjusters. The author and the Department of Insurance said the measure would cap public adjuster fees at 15% for claims tied to declared disasters, require clearer contracts, prohibit solicitation during emergency conditions, and allow consumers to rescind contracts that were solicited during prohibited periods. Insurance industry groups supported the bill, while public adjuster representatives opposed it as written but said they were willing to work on revisions. The committee approved the bill and re-referred it to Appropriations; the roll call was ultimately recorded as 16-0. The committee then held its fourth oversight hearing on the Department of Insurance’s Sustainable Insurance Strategy, with Commissioner Ricardo Lara giving an extensive update on wildfire-related market reforms and consumer protections. He said the recent Southern California wildfires had not derailed the strategy and described actions including advance claim payments, a one-year moratorium on residential non-renewals in affected areas, a new fraud strike team, smoke-damage claim guidance, additional living expense protections, and a consumer claims tracker. He reported more than $12.1 billion in claims paid, over 37,000 claims filed, and more than 7,000 survivors assisted directly. He also discussed related bills and reforms, including AB 597, SB 495, SB 547, SB 429, SB 616, AB 888, and AB 2026. Members questioned the commissioner about the Fair Plan’s growing exposure, the $1 billion assessment, rate increases, non-renewals, underinsurance, and whether the reforms would actually stabilize the market. Lara said the assessment was already approved, that policyholders would not be hit with one large bill because insurers have two years to recover costs, and that the department was pushing insurers to use catastrophe modeling and reinsurance tools in exchange for commitments to write more policies in wildfire-distressed areas. He said the department expects to see market stabilization by 2026, though he emphasized the timeline depends on insurer participation, implementation of the new regulations, and future disaster activity. Members generally expressed support for the goals of the strategy while pressing for clearer expectations for consumers and faster action on mitigation and market reform.

Transcript Highlights:

• , as the property increases in value and enters that second tier, the class rate would increase.
• , as the property increases in value and enters that second tier, the class rate would increase.
• <00:47:10.160> increases<00:47:11.119> and now smaller the tax rate increases and now
• smaller the tax rate increases and that<00:47:11.440> increases<00:47:11.920> the<00:47
• <01:27:07.119> to the increase of the uh tax rate to the increase of the uh tax rate to commercial

Keywords: 1187, senate, all