Transcript Highlights:

• And what you'll note is, if you go back to that top operator slide, these are the top operators, not
• And a potential cost for a plan there.
• would cost.
• Within the total cost, the construction costs, which are being provided by Mortensen, NDIT costs, which
• And they would be under the soft cost then, state and soft costs? That $50 million? Mr.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes before hearing a series of informational updates. The Petroleum Council reported that North Dakota oil production is expected to remain relatively flat at just under 1.2 million barrels per day, with activity shifting northward in the Bakken as technology improves and three- and four-mile laterals boost well performance. The presentation also discussed oil and gas prices, gas taxation, flaring concerns, the importance of pipelines and other linear infrastructure, and enhanced oil recovery pilot projects supported by state and federal funding. Members asked questions about gas production taxes, natural gas liquids, and the outlook for drilling rigs and future production. The Office of State Tax Commissioner then reviewed the federal “big beautiful bill” and its estimated effect on North Dakota individual and business income tax collections. Staff explained that most of the individual income tax impact comes from the permanent increase in the standard deduction, while temporary provisions such as senior deductions, tip and overtime exclusions, and auto loan interest deductions have smaller or limited-term effects. They also noted that business tax changes, especially depreciation and expensing provisions, create a larger near-term cash impact, and that some FY25 collections likely reflected one-time oil field transactions that may have inflated the baseline used in earlier estimates. OMB provided updates on major capital projects and facility funding. For Capitol grounds improvements, officials described plans for 18th-floor renovations, wayfinding upgrades, public seating, lighting, tree management, and possible restroom and lobby reconfiguration, while also noting the governor’s residence security project and the discovery of human remains on the Capitol grounds. OMB and its consultants also reported on the state facility maintenance fund, including window replacement, boiler work, roof and foundation repairs, and a new facility conditions assessment covering more state buildings. Updates were also given on the new state hospital in Jamestown, the Minot state office building, and the use of federal state fiscal recovery funds, including possible future reallocations to the Department of Corrections. Finally, Legislative Council staff summarized the interim compliance report on legislative intent and trust fund activity, highlighting the status of lines of credit, Bank of North Dakota profit transfers, the statewide litigation pool, the new Office of Guardianship and Conservatorship, corrections planning, HHS program updates, and a likely future general fund request for the unemployment insurance modernization project. No formal votes were taken beyond approval of the minutes; the meeting was primarily informational, with members asking clarifying questions throughout.

Transcript Highlights:

• costs.
• At the same time, the bill ignores operational risks, ignores the cost differences between rural and
• At the same time, the bill ignores operational risks, ignores the cost differences between rural and
• At the same time, the bill ignores operational risks, ignores the cost differences between rural and
• At the same time, the bill ignores operational risks, ignores the cost differences between rural and

Bills: SB6178 , SB5831

Committee: House Consumer Protection & Business

Keywords: SB6178, property insurance, insurance claims, assignment of benefits, AOB, post-loss assignment, post-loss benefits, homeowners insurance, policyholder, insured, restoration contractor, mitigation contractor, public adjuster, insurance commissioner, claims handling, consumer protection, void and unenforceable, Washington insurance code, chapter 48 RCW, civil penalty

Transcript Highlights:

• Now, KDLA pays nearly $671,000 annually, and that does not include the operational cost for utilities
• </c><00:34:10.960><c> cost</c><00:34:11.200><c> for</c> include the operational cost for include the
• operational cost for utilities<00:34:11.839><c> and</c><00:34:12.079><c> janitorial</c><00:34:12.919>
• </c> cost us more the long run. All right. cost us more the long run. All right.
• If you look at the project cost, the total forecasted cost is $151 million.

Summary: The meeting was the first of the year for the Capital Planning Advisory Board. Members were called, a quorum was confirmed, new co-chairs and members were welcomed, and the board approved the prior year’s meeting minutes. The chair also reviewed the capital planning timeline, packet organization, and the list of agencies that submitted plans but would not testify. The Cabinet for Health and Family Services presented first, outlining priorities centered on public safety, protecting existing infrastructure, preventive maintenance, and improving service delivery. Its major requests included a $21 million maintenance pool for 14 campuses and 175 buildings, phase 2 construction funding for a new public health laboratory, an 18-bed psychiatric hospital for children and adolescents with severe mental health needs, and several projects at Western State Hospital, Western State Nursing Facility, Hazlewood, and Oakwood. Members asked about the youth facility’s relationship to a separate DJJ project, vacant buildings, the high per-bed cost of the children’s hospital, and how the cabinet determined the need for the youth facility. CHFS said the youth project would be a separate facility serving high-acuity youth, the cost reflected the specialized nature of the unit and an 18-bed cap, and the broader youth plan also includes prevention, in-home services, and coordination across agencies. The Kentucky Department of Education then described projects for its three state-operated facilities: the Kentucky School for the Deaf, the Kentucky School for the Blind, and the FFA leadership training center. It requested additional funding for the FFA classroom and activity building after bids came in higher than expected, plus funding for a new education finance application system to support SEEK budgeting. Other priorities included a maintenance pool, FFA pool renovation, electrical upgrades, campus education enhancements, lighting improvements, safety and security work, door and window replacements, and HVAC maintenance. Members asked about student outcomes, the size of the FFA pool, and construction cost assumptions; the department said it tracks students through the schools and short-course programs, the pool size figure may have been a typo, and current construction estimates are being adjusted upward because of inflation and supply-chain pressures. The Education and Labor Cabinet began its presentation with 12 priority projects, including a state labor exchange system to connect job seekers and employers, renovation of the McDow Vocational Rehabilitation Center, and a new adult education and family literacy management information system. The cabinet said the labor exchange would help match workers with employers at no cost, while the McDow renovation was needed because the 30-year-old facility has safety and code concerns. The adult education system was described as outdated and lacking adequate case-management and tracking capabilities.

Transcript Highlights:

• Securitization would decrease the cost of owning and operating Mitchell by nearly $34 million a year.
• </c> customers cost. customers cost.
• </c> cost of that ELG. cost of that ELG.
• </c> keeping that plant operating. keeping that plant operating.
• And the quicker that we can begin this process, the lower cost Mitchell becomes so that it operates more

Summary: The committee met for an initial natural resources hearing with a quorum present and introductory housekeeping, including prayer, roll call, and recognition of guests. Chair Smith outlined ground rules for questions and then invited Kentucky Power and American Electric Power representatives to the table to discuss a proposed plan involving the Mitchell Power Plant and future generation needs in Eastern Kentucky. Witnesses Cindy Wiseman, Alex Vaughn, and AEP CEO Bill Fehrman said the company’s goals are to stabilize and lower rates, reduce rate volatility, and expand generation in the Commonwealth. They explained that Kentucky Power seeks legislative authority to securitize its 50% interest in the Mitchell coal plant, describing securitization as a refinancing mechanism that would lower annual plant costs by about $34 million and help offset roughly one-third of the expected cost of adding new generation in Kentucky. They emphasized that the proposal is not intended to close Mitchell, and said Kentucky Power currently has no plan to divest its interest; the company still needs the plant to serve customers while it pursues additional dispatchable generation in Kentucky. Members pressed the witnesses on the plant’s book value versus fair market value, whether the Mitchell interest had ever been assigned a nominal value, how any divestiture proceeds would be handled, whether Kentucky Power owns Wheeling Power, and how long Mitchell can continue operating. The company said it values Mitchell at net book value for accounting purposes, not fair market value, and explained that Wheeling Power is a separate AEP affiliate and that West Virginia affiliates have already proposed securitization of their share. Witnesses said Kentucky Power’s interest cannot technically operate past 2028 without additional environmental control investment, while the West Virginia side is depreciating through 2040. They also described the financing timeline, saying securitization would require enactment of legislation, a PSC financing order, bond issuance, and then parallel work to acquire or build new generation, with any reinvestment terms to be addressed through the regulatory process.

Transcript Highlights:

• and maintenance costs of newly constructed affordable housing, or to acquire... ...to fund the operations
• Senate Bill 6027 adds funding for operations and maintenance costs of existing units of affordable housing
• The exemption applies if the charge for the housing does not exceed the actual cost of operating and
• and maintenance costs or grants to support building operations, maintenance, and supportive services
• Operating costs for permanent supportive housing have increased due to inflation and rising costs, outpacing

Summary: House Finance met on February 26 and heard several tax and housing-related bills. Substitute Senate Bill 6343 would extend the deadline to apply for a property tax exemption for improvements to single-family homes damaged by natural disasters, with sponsors citing recent flooding and the need to help displaced homeowners in multiple counties. Local officials from Kent and Algona testified in support, describing flood damage and ongoing recovery needs. The bill was heard but no vote was taken. Senate Bill 6347 would roll back the higher estate tax rates enacted in 2025, while leaving the higher exemption amount in place. Committee staff said the bill would reduce revenue to the Education Legacy Trust account by about $44.8 million starting in fiscal year 2027 and about $389.9 million over the 2027-29 biennium. Supporters argued the higher rates could harm family businesses and encourage wealthy residents to leave; opponents said the bill would mainly benefit very large estates and would worsen budget pressures by reducing funds for education and child care. Public testimony was mixed, and the bill was heard without action. The committee also heard Senate Bill 6244, which would extend a hazardous substance tax exemption for agricultural crop protection products stored in Washington for out-of-state sale until 2038. The sponsor and a logistics witness said the exemption helps farmers get products faster, supports regional distribution, and improves competitiveness; staff said the revenue impact would be small. Finally, Senate Bill 6114 would define “fixture” and “affixed” for real estate excise tax purposes to make tax treatment of attached property clearer, and Senate Bill 6027 would broaden allowable uses of several local affordable housing funding sources, including rehabilitation and operations of existing housing, rental assistance in some counties, and expanded uses for Affordable Housing for All grants. Both of those bills drew support from state and local housing officials and advocates, and the committee adjourned after the hearings with no recorded votes.

Transcript Highlights:

• high cost of living.
• Energy costs are also rising rapidly.
• , energy costs, insurance costs.
• local economy in which we operate.
• But I'm also looking at the increased costs of benefits. Right now.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue-related bills. SB 1277, by Senator Grove, proposed a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide direct relief to low- and middle-income Californians facing high housing, fuel, and utility costs. Supporters argued it would help families struggling with affordability, while opponents, including the California Tax Reform Association and CTA members, said California’s tax system already provides relief and that the bill would reduce General Fund revenue and harm schools. After extended debate, the bill was put on call and later failed on a 1-4 vote, though reconsideration was granted. SB 1287, by Senator Retado, would create a performance-based tax credit for short-line rail investments; supporters said it would improve freight efficiency, safety, emissions, and rural access, while opponents preferred direct grants. The bill was placed on call and later passed 5-0 to Transportation. SB 1407, by Senator Archuleta, would exempt military retirement pay and survivor benefits from state taxes; the author, State Treasurer Fiona Ma, and veterans’ groups said it would help retain veterans and their economic contributions in California, while CTA and CTRA opposed on General Fund grounds. The bill passed 5-0 to Military and Veterans Affairs. SB 1349, by Senator Gonzalez, would direct the LAO to review major tax expenditures for effectiveness and impacts on schools and the budget; CTA and CTRA supported it as a way to increase accountability, and it passed 4-1 to Governmental Organization. SB 1120, by Senator McNerney, would extend the California Competes Tax Credit through 2035 and make credits refundable for certain strategic industries; business and industry witnesses said this would help startups and manufacturers monetize credits and attract investment, and it passed 5-0 to Appropriations. SB 1275, also by Senator McNerney, proposed converting the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden; the LAO provided technical testimony, and the bill passed 4-0 to Transportation. The committee also heard SB 1078, by Senator Laird, to let Santa Cruz County voters consider a temporary local tax increase for health and safety-net services, but it was put on call. Later, the committee returned to SB 1314, by Senator Min, addressing youth tobacco and illicit smoke shop sales, but the transcript cuts off before final action on that bill.

Transcript Highlights:

• a state-run operation.
• That was way before my time, but I assume then it would have been operated kind of like we operate our
• Cost around $3,500.
• So the judicial branch appropriations fund the personnel program and operating costs of the Supreme Court
• I first asked what the cost was, and the cost was too much, so I didn't put the driveway in.

Committee: Joint Legislative Task Force on Government Efficiency

Summary: The task force met with a quorum and first reviewed a memorandum summarizing a survey of state agencies on possible statute revisions. Levi reported that 20 agencies submitted 70 proposals, with about 33 potentially becoming agency pre-file bills. Common themes included procurement, concessions, architect/engineering services, liability limits, and IT-related efficiencies. Members asked about sharing the survey results more broadly and about cross-agency coordination, especially with higher education and ITD-related issues. OMB then presented three topics from its survey responses: concessions, pre-qualification of architects/engineers/construction managers/land surveyors, and publication of legal notices. OMB said the current concessions law is too rigid because it requires award to the highest responsible bidder and does not fit newer concession models, and it suggested a best-value approach, a higher threshold, and standardized templates. On architect/engineering pre-qualification, OMB said the law is fragmented across several statutes and should be consolidated and expanded for broader use. On legal notices, OMB described the current rate-setting and publication process, noted rising costs and shrinking newspaper availability, and proposed a collaborative effort to modernize notice delivery, improve accessibility, and explore online options. The task force discussed how to move these ideas forward, and a motion passed directing OMB to implement its suggestions and report back at the next meeting. The University of North Dakota then presented several proposed revisions focused on public buildings and procurement. UND recommended raising the threshold for treating routine maintenance and one-for-one replacements as construction, arguing that the current $250,000 threshold forces unnecessary architect/engineer involvement and adds cost. It also proposed changes to bid advertisement language to reflect electronic bidding, revisions to construction manager-at-risk selection criteria, changes to architect/engineer procurement criteria, a higher direct-hire threshold for design services, and an increase in the legislative approval threshold for privately funded projects. Members discussed the need for data, risk and complexity considerations, and collaboration with counsel and industry groups. A motion passed directing Levi and counsel to work with UND on bill drafts based on its proposals for a future meeting. DPI followed with a shorter presentation on credentialing and statutory cleanup. It suggested reviewing the department’s 23 credential categories for relevance, and said DPI and the Education Standards and Practices Board have discussed transferring some credentialing authority to ESPB. DPI also recommended removing outdated school safety patrol language, cleaning up waiver provisions, and updating dyslexia screening reporting requirements so districts are not burdened by obsolete reporting mandates. Members agreed the screening itself should remain in place, while the reporting requirement could be reconsidered. The committee then recessed until the afternoon session.

Transcript Highlights:

• But it is still operating. It is still functioning. It hasn't failed.
• How the facility is operated either as it exists or... ...going forward, how the facility is operated
• It also tends to carry a cost.
• Now, the plan costs a lot of money, and I understand that.
• I'm wondering if we've done any sort of cost studies or review of what it would cost us to house or send

Summary: The Special Commission on Correctional Consolidation and Collaboration met on October 17 with members attending in person and virtually. The commission approved the September 15 minutes and then heard a detailed presentation from DCAM Commissioner Adam Bakey on the correctional facilities portfolio, including the age and condition of DOC and sheriff facilities, deferred maintenance, ADA compliance, decarbonization mandates, and how capital funding is allocated. Bakey said the correctional portfolio includes 36 facilities, with average ages over 50 years, and described how older, rapidly built facilities from the tough-on-crime era now face significant maintenance and replacement needs. He also explained the distinction between catch-up deferred maintenance and ongoing keep-up needs, and noted that construction costs and code thresholds have made projects more expensive. Commissioners and sheriffs asked about ADA requirements, aging and overcrowded facilities, hazardous materials, parts availability for obsolete systems, plumbing and health risks, and whether a newer, more modern correctional facility should be considered. Bakey said many projects trigger broader code upgrades, that some dormant facilities remain in the portfolio, and that health-care and correctional construction are among the most expensive building types. He outlined current funding, including annual deferred maintenance allocations for DOC and formula-based five-year commitments for sheriffs, plus a new competitive capital program for larger sheriff projects. He also explained the Designer Selection Board and “house doctor” process used to procure architects and engineers. The commission then shifted to planning its next steps, focusing on public input. Members agreed the next meeting should likely be a public hearing or include public testimony, with possible input from people with lived experience and consideration of facility tours, especially of women’s facilities such as Framingham. Members emphasized the need to define the commission’s scope clearly so testimony stays focused on structural and consolidation issues rather than all correctional policy topics. The meeting ended with plans for the co-chairs to coordinate the public process and a motion to adjourn, which passed without opposition.

Transcript Highlights:

• cost-effective approaches.
• here in California operating.
• How does that affect administrative costs?
• Because right now, the cost of ZEVs has come down quite dramatically, but they still—the upfront cost
• The governor's budget maintains the 2025 Budget Act agreement to support Cal Fire operation costs with

Transcript Highlights:

• cost of it?
• ><c> operations.
• cost.
• Now, if we diesel cost and labor cost.
• operation operations gone into a poultry operation or<01:01:38.079><c> something.

Committee: Joint Agriculture

Transcript Highlights:

• So the operators<03:59:28.319><c> are</c><03:59:28.560><c> existing</c> operators are existing operators
• </c><04:21:44.560><c> operate</c> The the number of the operators operate The the number of the operators
• </c><04:25:15.600><c> the</c><04:25:15.840><c> operators</c> for the HRMS which cost the operators for
• the HRMS which cost the operators fair<04:25:16.880><c> amount</c><04:25:17.040><c> of</c><04:25:17.199
• </c><05:27:35.440><c> like</c> cost to our costs, not their costs. like cost to our costs, not their

Summary: The committee first took up SB 63, which concerns funding for the division of travel and tourism and its relationship to the meals-and-rooms tax calculation. Members asked for confirmation that the bill would not affect municipal distributions under RSA 78-A:26. Jennifer Ramsey of the Department of Revenue Administration explained that the amendment does not change meals-and-rooms distributions, but instead corrects the calculation for the travel and tourism appropriation by adding back the municipal fund transfer before applying the 3.15% floor. Chris Shay of the Office of the Attorney General agreed with that explanation. The committee also discussed the complexity of the meals-and-rooms statutes and the possibility of a future cleanup effort. The committee then voted 19-0 to recommend SB 63 ought to pass; it will not go on consent because it has a fiscal note. The committee next considered SB 60, relative to advanced deposit account wagering. Rep. Murphy moved ought to pass, explaining that the bill would regulate advanced deposit wagering on horse racing and impose a 1.25% revenue share on wagers from New Hampshire residents, generating roughly a quarter-million dollars in new lottery revenue in the first year. The motion passed 19-0, and the bill will not go on consent because of its fiscal note. The committee then voted 19-0 to recommend SB 147 ITL, with members noting that live racing facilities are in decline and the market is shrinking. SB 160, which updates raffle ticket pricing and prize limits for bingo-related gaming, also passed ought to pass 19-0 and will not go on consent. The committee then took up SB 73, which revises coverall bingo rules and increases prize limits. An amendment, 2025-1470H, was offered to raise the total prize amount to $5,000; members supported it as a reasonable compromise, and the amendment was adopted unanimously. The bill as amended then passed ought to pass 19-0, again with a fiscal note preventing consent placement. After those votes, the committee moved into a work session on SB 83, where members began discussing the bill’s video lottery terminal provisions, including the meaning of “maximum wager,” the absence of a cumulative betting cap, and concerns that the bill combines several distinct policy changes—tax treatment, VLT rules, renaming, and a self-exclusion database—into one measure. No vote was taken on SB 83 during the work session, and members indicated they would continue discussion later after reviewing side-by-side materials.

Transcript Highlights:

• Maybe not the oil and gas operator, maybe somebody else; maybe it is the oil and gas operator, but when
• Operations.
• The operator, I'm not aware of any operator who doesn't pay for someone to take away the waste, right
• So we'll use operators then, okay, if I just use operators. that term for them.
• Moreover, a permit may be issued then resold quickly at a higher cost, once again allowing an operator

Bills: HB3619 , HB3652 , HB4572 , HB4891 , HB4941 , HB5103 , HB5105 , HB5106 , HB5224 , HB5600

Committee: House Energy Resources

Keywords: surface estate, well plugging, Railroad Commission, landowner rights, liability, strategic reserve, gas supply, petroleum products, disaster response, Railroad Commission of Texas, energy security, emergency planning, oil and gas waste, environmental regulation, waste management, mining pits, groundwater monitoring, regulation, commercial disposal facilities, environmental standards

Transcript Highlights:

• So the legislature directed us to study our cost share program. Is our cost share policy adequate?
• So the legislature directed us to study our cost share program. Is our cost share policy adequate?
• of cost-share policy.
• Cost share percentages.
• those costs for locals.

Committee: Joint Water Topics Overview Committee

Transcript Highlights:

• AB 1167 was designed and intended by the Legislature to prevent operators from shifting closure costs
• What transaction costs and ongoing maintenance costs would transfer involved, and who would bear them
• What transaction costs and ongoing maintenance costs would transfer involved and who would bear them?
• The cost of adaptation is high, but the costs of failing to adapt are far higher.
• And it's costing us a fortune.

Summary: The committee heard a series of natural resources bills, with several measures accepted on committee amendments and moved forward on party-line or near-unanimous votes. AB 2461 on oil and gas bonding and well-closure financial assurance drew strong support from environmental groups and some legislators, while an industry representative was neutral and warned about unintended consequences and reduced transfers. Senators Laird and Cabaldon supported the bill as a clarification of AB 1167, and the committee voted do pass as amended to Appropriations, with the bill placed on call. The committee also approved a consent calendar of 10 bills, which was moved and held on call. AB 53 by Assemblymember Ramos, as amended, would expand tribal eligibility for conservation grants and loans and express legislative intent to create a process for returning ancestral lands to federally recognized tribes. Tribal and environmental supporters argued the bill recognizes tribal stewardship and helps remove barriers to conservation participation, while county, farm bureau, and habitat league witnesses raised concerns about long-term land management, public accountability, easements, and jurisdiction if lands are transferred. Committee members emphasized the importance of preserving conservation protections and continuing work on the land-return framework; the bill was moved do pass as amended to Appropriations and held on call. AB 2679 on Lake Tahoe corridor safety and access was supported by local officials and the Tahoe Regional Planning Agency, who described dangerous parking, pedestrian conflicts, and a successful shuttle pilot, and the bill was moved do pass as amended to Appropriations. AB 1666, creating biomass innovation parks and other incentives for non-combustion uses of forest and agricultural biomass, received broad support from business, conservation, and local government witnesses, with senators framing it as a way to address wildfire debris and create rural jobs; it also advanced do pass as amended to Appropriations. AB 2494, which would modernize the demonstration state forest system and elevate biodiversity, recreation, carbon storage, and tribal stewardship over maximum sustained production, drew strong support from environmental and tribal advocates but significant opposition from forest industry, county, and research witnesses who warned it could undermine research, sustainable forestry, and local economies; the author said he would continue negotiations, and the bill was moved do pass to Appropriations. The committee also heard AB 2234, which updates the definition of geothermal exploratory projects, and AB 2521, which seeks to use the California Council on Science and Technology for watershed-wide water availability analyses to help identify excess water for groundwater recharge. Both bills had support from sponsors and some stakeholders, while AB 2521 drew concerns from agricultural water interests about agency reliance, public trust considerations, and funding. Both measures were moved do pass as amended to Appropriations. Finally, AB 2410 would extend a CEQA exemption for certain fuels-reduction projects in high fire-risk areas; local government groups supported it as a wildfire-prevention tool, while environmental and other opponents argued the remaining exemption still weakens habitat protections and public review, and one witness sought to remove conventional herbicides from the exemption.

Transcript Highlights:

• On schedule, scope, cost. Thanks for sharing that.
• And they could clearly make a case on why some of these other states might offer lower operational costs
• And they could clearly make a case on why some of these other states might offer lower operational costs
• You can't just provide a cost-benefit analysis.
• You also have to show those logistical costs where California might have some cost benefits.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• So if the costs go up in terms of wages in this area, the companies are constantly looking at their operations
• So if the costs go up in terms of wages in this area, the companies are constantly looking at their operations
• They don't know how they're going to make up this new cost, and then a Large business that operates in
• What about how does that long-term revenue versus long-term operating cost balance out?
• Labor costs account for about 30 to 40 percent of total operating costs.

Committee: House Business

Summary: The committee held a study on the potential effects of living wage or minimum wage laws in Oklahoma, with the chair emphasizing that the discussion was not intended to advocate for or against State Question 832. The first panel focused on economic and workforce impacts. An Oklahoma Department of Commerce representative argued that living wage calculations vary by region and household type, that Oklahoma’s average wages are already near or above many living-wage estimates, and that higher mandated wages could lead employers to cut hours, reduce hiring, automate, or avoid expansion, especially in rural areas where childcare, healthcare, broadband, and infrastructure constraints also affect labor participation. Committee members asked about wage distributions, rural cost differences, training pathways, and whether higher wages might draw workers or businesses out of state; the witness said many low-wage workers move up over time and that Oklahoma has seen net in-migration. A State Chamber Research Foundation witness then testified that a $15 statewide wage floor would raise payroll costs substantially, especially for small rural employers, and cited examples from California and Seattle to argue that higher wages can reduce hours, jobs, and benefits while increasing consumer prices. She suggested alternatives such as expanding the state earned income tax credit and promoting upskilling through existing education and training programs. A Missouri Chamber of Commerce and Industry representative described Missouri’s recent voter-approved minimum wage increase to $13.75, rising to $15, along with paid sick leave provisions. She said the chamber opposed the measure because it would raise business costs, hurt rural communities and youth employment, and force some employers to cut hours, reduce hiring, or close. She cited examples from Missouri businesses facing significant added costs and warned that a future ballot initiative could create a patchwork of local minimum wages. In response to questions, she said Missouri’s law did not distinguish by age or industry, that businesses had raised concerns about union contracts and compliance, and that the chamber viewed the measure as harmful to competitiveness. Peter Hansen of NFIB presented the final major testimony, summarizing an NFIB study projecting that a higher Oklahoma minimum wage would produce some short-term GDP gains but longer-term losses, with GDP turning negative by the early 2030s and job losses growing over time. He said businesses respond to higher wage mandates by raising prices, trimming jobs, converting full-time positions to part-time, reducing benefits, and shifting investment toward automation or other capital. He argued that the burden falls most heavily on vulnerable workers such as young or marginal employees, who are less likely to be hired when labor costs rise. In questioning, he acknowledged that higher wages can improve pay for some workers and may have some short-term positive effects, but maintained that the long-term employment and investment effects are negative. No votes or formal actions were taken in the meeting.

Transcript Highlights:

• There absolutely could be a cost increase, but that would be a minimal cost increase.
• These operations exist entirely outside of consumer safeguards.
• These operations exist entirely outside of consumer safeguards.
• But if you're looking for actual costs, we should be able to bring those costs to you through your utility
• operate, perform, and audit differently than we do in Florida?

Bills: S0468 , S0822 , S1234 , S1260 , S1580 , S1706

Committee: Senate Regulated Industries

Transcript Highlights:

• are contained to the taxpayers and the operation in that budget.
• It costs more. Because the city still has to make up the money. It costs more than the 25%.
• Operations to include their rates, their structure, and their operations on a day-to-day basis, permitting
• and really listening in the time of extreme costs.
• So, High bill costs and really listening in the time of extreme costs.

Summary: The committee met with a quorum and considered several bills, reporting each favorably after hearing sponsor presentations, public testimony, and member questions. SB 578 would allow wine to be sold in recyclable containers, aligning wine with beer container rules; it received support from Americans for Prosperity and passed without debate. SB 606 clarified when guests in public lodging or food service establishments may be removed for nonpayment, updated notice and checkout provisions, and removed a mandatory arrest requirement, with support from hotel and restaurant industry groups; it also passed favorably. Members then heard SB 202, which addresses a municipal water utility surcharge issue affecting Miami Gardens and North Miami Beach by requiring the utility to charge residents where the plant sits the same rate it charges its own residents. The sponsor and supporters described it as a fairness issue, while North Miami Beach argued it would shift costs and threaten utility finances; the bill was reported favorably. SB 570 modernized and clarified the scope of work for swimming pool and spa contractors, and SB 928, as amended, regulated non-approved disposable nicotine devices by restricting advertising and display, increasing inspections and penalties, and adding a school-buffer provision; both were reported favorably. The committee also approved SB 346, which repeals state preemption over local regulation of hoisting equipment and cranes, prompted by concerns after Hurricane Milton and a crane collapse in St. Petersburg. Supporters said local governments need authority to address storm-related crane safety, while industry representatives warned against patchwork regulation and said local oversight already exists in some areas. Finally, the committee took up SB 652, creating Veterinary Professional Associates to perform certain tasks, including limited surgeries under veterinarian supervision; animal welfare groups supported it as a way to expand access, while some veterinarians opposed the surgery provisions. The bill was reported favorably after amendment. The committee then began SB 354, a major overhaul of Public Service Commission oversight, including expanding the commission, adding financial expertise, tightening rate-setting and storm-hardening review, and increasing transparency for nonprofit water and wastewater utilities; the substitute amendment was adopted and public testimony was heard from consumer advocates and utility-related groups, but the transcript ends before final action on the bill.

Transcript Highlights:

• Reduced broadcast operating costs by more than 30%.
• and possibly having to reduce 30% of costs in operations.
• Particularly for the smallest stations, their biggest operating cost really is continuing to broadcast
• keep open, will help bring their total operating costs more to the level that they can afford to remain
• or costs to do financial operations and those kinds of things.

Committee: House Arts, Entertainment, Sports, and Tourism

Summary: Assembly Member Chris Ward and Senator Akela Weber Pearson convened an informational hearing at KPBS and San Diego State University on the impact of the federal rescission of Corporation for Public Broadcasting funding on California public media. Opening remarks emphasized public media’s role in education, local news, arts and culture, emergency alerts, and service to rural and underserved communities, with local officials from San Diego and La Mesa voicing support. Panelists from PBS SoCal, KCRW, and Rebuild Local News described major operational and content impacts from the funding loss, including layoffs, reduced staff and programming, threatened children’s and educational content, and pressure on smaller stations that rely heavily on CPB support. They also discussed public media’s role in disaster response, local arts coverage, and the shrinking local news ecosystem, while noting possible responses such as shared services, philanthropy, corporate partnerships, and state policy support. A second panel focused on labor and production perspectives. NPR veteran Jack Speer and filmmaker Nate Dappen said the cuts threaten journalism jobs, documentary production, and science programming, and warned that fewer resources mean less fact-checking, less on-the-ground reporting, and weaker public understanding of science and technology. They urged continued support for public media as a trusted, noncommercial source of information. The final panel featured KPBS, Radio Bilingüe, and KVPR. KPBS said federal funding made up 12% of its budget and that reserves have only delayed possible future reorganization; Radio Bilingüe reported losses to both CPB and FEMA-related infrastructure funding affecting Spanish- and indigenous-language service; and KVPR said it lost CPB and FEMA grants but offset the loss through an emergency fundraising drive. No formal votes were taken; the hearing was informational and ended with questions about state policy options and future support.

Transcript Highlights:

• I can tell you his per-hour cost: he costs us $25 an hour. Ms.
• The operating margin compares...
• For example, increased salary costs, increased benefit costs, and increased utility costs.
• Arizona continues to rank near the bottom nationally in per-pupil funding, while operational costs increase
• We also reduced our utilities and operational costs.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee first heard a follow-up on the Arizona State Board of Chiropractic Examiners special audit. The Auditor General’s contractor reported that the board has made progress on most of the 28 recommendations from the 2024 audit, with 25 in process and three not yet implemented. Remaining concerns included complaint investigations not being resolved within 180 days, continued open meeting law compliance problems, and failure to consult the Attorney General’s open meeting law experts. The follow-up also identified new issues with posting disciplinary/non-disciplinary actions and maintaining a complete public records request log. Board staff said they had adopted new complaint timelines, subpoena limits, conflict-of-interest procedures, public meeting guidance, training, and a new licensing platform, and they described efforts to professionalize investigations and improve transparency. Members pressed the board on open meeting violations, complaint backlogs, lobbying activity, and the resignation of the board chair, while the executive director said the audit findings were being treated as a roadmap for reform. The committee then received the January 2026 Arizona school district financial risk analysis. The Auditor General’s office said the number of highest-risk districts rose from two to nine, and districts approaching highest risk increased from seven to nine. The report highlighted common risk factors such as declining student counts, budget reserve problems, use of capital funds for operations, and weakening general fund positions. Tucson Unified was used as an example of a highest-risk district, with declining enrollment, reserve declines, and capital funds redirected to operations; Scottsdale Unified was cited as approaching highest risk. The office explained its web-based dashboard, district action plans, and ongoing outreach to affected districts. Sierra Vista Unified School District superintendent Terry Romo then presented the district’s response to its financial risk designation. She said she inherited the problems, quickly developed an action plan, and is working to stabilize enrollment, reduce staffing through attrition, close an elementary school, freeze nonessential spending, tighten purchase controls, and renegotiate or cancel high-cost contracts. She also said the district is redirecting DAA funds, considering sale or lease of property, and improving communication with families through letters, videos, and enrollment outreach. Committee members questioned the district about declining enrollment, school safety, academic performance, and the pace of corrective action, while Romo emphasized that the district is trying to protect both students and finances and avoid returning to the high-risk list.