Transcript Highlights:

• It addresses the cost of readiness within the operational costs, and it provides reporting back to the
• </c> cost of Readiness within the operational cost of Readiness within the operational costs<00:05:07.680
• </c> for Stanford ambulance we operate for Stanford ambulance we operate ambulances<00:08:03.159><c>
• We know that EMS providers struggle with rising operating costs, staffing shortages, and insufficient
• ><c> and</c> operation costs Staffing shortages and operation costs Staffing shortages and insufficient

Summary: The committee took up House File 337, a bill addressing long-term funding for rural and Greater Minnesota EMS and ambulance services. The author offered the A2 amendment, moved to divide it, and the committee adopted lines 1.2 to 1.19 of the amendment. The bill, as amended, was described as creating a policy framework for identifying ambulance services with operating deficits, requiring financial audits, and setting up a future grant program, with the author emphasizing that the proposal was still being developed and was intended to be a long-term solution rather than a short-term fix. Testimony was largely supportive. Eric Simonson of the Coalition of Greater Minnesota Cities said the bill builds on last session’s one-time aid and would target grant dollars using state data, clarify eligible uses, allow audits, address uncompensated care and readiness costs, and require reporting back to the legislature. Mike Warner of the Red Wing Fire Department said his city’s ambulance service operates with a heavy government-funded payer mix and a persistent operating shortfall. Tim Meyer of Sanford Ambulance said low-volume rural services face widening revenue gaps, staffing pressures, and the loss of the volunteer model. Nathan Zacharias of the Association of Minnesota Counties and Kevin Lee of North Memorial Health also supported the bill, citing rising costs, staffing shortages, stagnant reimbursement, and the need for a sustainable statewide funding model. Members raised concerns about how the bill would work in practice, especially around communities that straddle metro and non-metro boundaries and around local control over grant dollars. Representative Pel asked how the eligibility language would apply to places like Northfield and New Prague; the author and a testifier said eligibility would depend on whether a service area is mostly outside the metro area, but acknowledged more review was needed. Representative Huitt argued the bill should give more local control and should address EMS as a statewide issue, not only a Greater Minnesota issue. Representative Ryer asked whether the bill would eventually include revenue recapture or another funding source, and the author said the proposal was still at an early stage and all options were being considered. The committee laid HF 337, as amended, over for possible inclusion in the omnibus bill.

Transcript Highlights:

• Are you suggesting that if there are costs and delays and you have to bear the cost, everyone in the
• So how much could a delay cost the state? The same it would cost the contractor.
• Second, the bill imposes potentially unrecoverable costs on existing assets and increases customer costs
• It's actually cheap, cheaper, costing one-fourth of the cost of a non-hardened system. system by using
• And to have somebody talking so that the cost of shutdowns and repairs done during day-to-day operations

Bills: SB75 , SB715 , SB776 , SB1299 , SB1405 , SB1968 , SB2021 , SB2077 , SB2148 , SB2321 , SB2330 , SB2411

Committee: Senate Business & Commerce

Transcript Highlights:

• And could you also explain other operating costs?
• /c><01:23:08.560><c> have</c><01:23:08.719><c> any</c> operating costs and you don't have any operating
• Yes, we have funds that are invested to offset operating costs as well as look at long-term liabilities
• /c><01:24:47.360><c> look</c> offset um operating cost as well as look offset um operating cost as well
• ><04:05:04.920><c> significant</c> operating costs will not be significant operating costs will not be

Summary: The committee heard a presentation from the University System of New Hampshire chancellor on the system’s budget, enrollment, finances, workforce role, and response to federal policy changes. The chancellor said the governor’s recommended budget would reduce university system funding by about $16.5 million over the biennium, or roughly 8.3%, and asked that state funding be held at the governor’s level. She described planned cost reductions already underway, including lower headcount, reduced benefits and retirement contributions, property sales, and lease reductions, and said the system expects to remove about $20 million from its cost structure in fiscal year 2026. A large portion of the discussion focused on enrollment and finances. The chancellor said fall 2024 enrollment was about 23,000, with New Hampshire enrollment increasing for the first time since 2013, and noted that the system remains a major workforce pipeline, with about 3,000 graduates entering the state workforce each year. She explained that net tuition has fallen over time because of declining enrollment and increased financial aid, while research grants and contracts have grown significantly. She also walked through endowment funding, explaining that payouts are based on a 12-quarter rolling average and are intentionally smoothed to reduce volatility; members asked for follow-up information on payout comparisons, administrative salaries, headcounts, and compensation per student. Members questioned the university about the relationship between state support, tuition, endowments, and research spending. The chancellor said the system has used state capital support to leverage major investments, including the UNH Life Sciences building, Plymouth’s Hyde Hall, and the Olson Advanced Manufacturing Center, and described partnerships with businesses such as Lonza and regional manufacturers. She also explained a long-running New Hampshire 529-related revenue stream that has built endowment support for scholarships, and said the system’s endowment now totals about $988 million. In response to questions about possible cuts, she said the system is considering academic program sharing, consolidation of specialties, online delivery, AI-assisted administrative efficiencies, and footprint reductions, but declined to name specific programs. The committee also discussed DEI-related issues and federal grants. The chancellor said the system is reviewing executive orders and a U.S. Department of Education Dear Colleague letter, and that general counsel is working through websites, programs, and more than 1,200 federal grants to ensure compliance. She said the system spends about $3 million on what it calls DEI-related offices and services, but emphasized that these services include disability support, veteran support, Title IX, ADA, and employment-law compliance, and that the system does not have race-based programs, separate housing, or separate graduation ceremonies. She reported that the system had received stop-work orders on four federal grants totaling about $700,000 and warned that reductions in federal direct or indirect costs could affect research, jobs, and innovation.

Transcript Highlights:

• This board has been operating since 2019. This board has been operating since 2019.
• But where the operating budget was paying for higher education, WEA funds were used because the operating
• Utilities, materials, travel—all cost more.
• bill, let alone the cost of... ...costs of our Puget Sound Energy bill, let alone the cost of the COLA
• Our operating cost, our electric bill, has gone up double digits the last three years.

Summary: The committee began with a work session on the Workforce Education Investment Act (WEA) Oversight Board, hearing from board co-chair Jane Broome and Joel Anderson of WASAC. They described the account’s origins as a public-private partnership intended to supplement, not replace, existing higher education funding, and emphasized the board’s role in oversight and outcomes. Members discussed the need for better data, especially outcome-based data, and concerns that recent budget actions have used WEA funds to supplant general fund support for higher education, particularly at the University of Washington. The presenters said WASAC staffing has improved transparency, but they urged the committee to preserve the original “do not supplant” intent and to keep WEA focused on high-demand programs, financial aid, and student success. The committee then held public hearings on three bills. SB 6251 would require public medical schools to use letter grades or a tiered grading system; the sponsor said the bill was meant to standardize grading, while both Washington State University and UW Medicine testified in opposition, arguing that pass-fail and competency-based systems better support collaboration, student mental health, and residency competitiveness. SB 6259 would make students ineligible for state aid and require repayment of aid if they are found by a court to have caused major damage to a public institution; the sponsor framed it as accountability for serious vandalism, while the lone testifier from WSU student government supported free speech but opposed the bill’s penalties as inequitable for lower-income students. SB 6235 would address the higher education “fund split” by requiring state funding of compensation and central services to return to 2023-25 levels over time and directing a study on essential student services; nearly all testimony from university, faculty, and community college leaders supported the bill, saying the current approach shifts costs to tuition, creates instability, and forces cuts to classes, staffing, and student services. In executive session, the committee advanced several bills. It adopted proposed substitutes and gave do-pass recommendations to SB 5978, SB 6209, SB 6217, and SB 6227, sending them to the Ways and Means Committee. The committee did not take action on SB 6235 in executive session. The meeting then adjourned.

Transcript Highlights:

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

Transcript Highlights:

• And that's where my mind was going: if the cost is a factor, the cost of continuing to confine them and
• That's where my mind was going: if the cost is a factor, the cost of continuing to confine them and keep
• That we're reducing costs? No, no, no, no.
• That we're reducing costs? No, no, no, no.
• I understand that there's going to be other costs.

Summary: The subcommittee heard May Revision presentations for the Office of Emergency Services, Judicial Branch, CDCR, and the Department of Justice, with the LAO offering comments and recommendations throughout. For Cal OES, the administration outlined funding for relocating the Red Mountain communications site, increased FEMA reimbursement authority, cybersecurity grants, next-generation 911 support, and a reduction to the Flexible Cash Assistance for Survivors of Crime program. Members raised concerns about VOCA backfill and disaster reimbursement, while the LAO recommended approving the 911 request with reporting, adding contingency planning for cybersecurity grants, clarifying the FEMA reimbursement language, and increasing reporting on emergency spending. For the Judicial Branch, the May Revision included funding for implementation of the Trial Nations Access to Justice Act, reductions tied to court facilities and employee benefits, and General Fund solutions such as a reduction to the pretrial release program, a reversion from the Trial Court Trust Fund, and elimination of the jury duty pilot program. The LAO cautioned that the pretrial reduction could affect detention and release decisions and recommended tighter legislative oversight over the trust fund transfer and reallocation language. Members questioned the impact of the pretrial cut, the lack of Prop. 36 court funding, and the rationale for the jury pilot elimination; the Judicial Branch said it was generally supportive of the budget as proposed. CDCR presented requests for roof repairs, fire alarm replacements, CalAIM-related costs, and trailer bill changes on incarcerated college students, mental health hiring, and tuberculosis testing, along with a planned prison closure by October 2026. The department also proposed reducing or delaying several items, including radio replacement, ADA improvements, COVID mitigation, and some facility upgrades, while adding a $125 million placeholder for consultant-driven operational savings. The LAO recommended rejecting or reducing several San Quentin-related proposals, questioned the staffing and contract medical requests, and urged more transparency on the consultant savings plan; members expressed concern about the realism of the savings targets and the potential legal or operational risks from delaying ADA and radio projects. For DOJ, the May Revision proposed ongoing funding and 44 positions to defend against federal actions, IT and accounting system upgrades, implementation funding for AB 1877, and a special fund loan. The LAO supported the KLETS connection but asked for a contingency plan if the new DMV link is delayed, noted that AB 1877 would not be fully implemented without additional funding, and recommended limiting and reporting on the federal accountability workload. Members questioned the size and permanence of the DOJ request, the use of the earlier $25 million special session appropriation, and the pace of federal litigation; DOJ said the new request would support ongoing litigation, expert assistance, and coordination across multiple cases and states.

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:

• Our insurance costs are going up, and this is affecting the cost of the entire system.
• It does not increase the cost of doing business for refinery operators and owners.
• They also say it's nearly impossible to estimate cleanup costs while a refinery is still in operation
• How much will it cost, and who will pay for it?
• And they're operating at a scale that the amount of money it would cost to have a higher consultant to

Summary: The Assembly Environmental Safety and Toxic Materials Committee heard three main bills after initially lacking a quorum and deferring the consent calendar. SB 501 by Senator Allen would expand California’s battery extended producer responsibility program to include medium-format batteries, such as those used in e-bikes, lawn equipment, and portable power systems. Supporters from local governments, recycling groups, environmental organizations, and battery stewardship interests said the bill would reduce fire risks, improve collection and recycling, and close a gap in existing law. One industry witness sought clarification about off-highway vehicles and a battery association requested guardrails for mixed battery formats; the California Retailers Association moved from opposition to neutral after discussions with the author. SB 1125 by Senator Menjivar would create a statewide, state-funded low-income drinking water rate assistance program administered by the State Water Resources Control Board, contingent on funding. The author and supporters said many Californians face water debt and that the bill would help address affordability while working around Proposition 218 limits on local ratepayer-funded assistance. Water districts, local governments, environmental justice groups, and conservation organizations testified in support, and there was no opposition. SB 1259 by Senator Blakespear, as amended, would require refineries to provide advance information on closure, cleanup costs, and timelines to help communities plan for refinery transitions and remediation. Supporters, including the City of Benicia, environmental justice groups, and advocacy organizations, argued that communities need transparency before closures occur and that other energy sectors already provide similar planning information. Opponents from labor, petroleum, and business groups argued the bill was unnecessary, burdensome, and could discourage refinery investment or signal premature decline of the industry. After extensive debate, the committee voted to pass SB 1259 as amended to the Assembly Utilities and Energy Committee, and also approved SB 501 and SB 1125; the consent calendar items SB 1253 and SJR 13 were adopted.

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.

Summary: The hearing focused on the impact of the federal rescission of Corporation for Public Broadcasting funding on California public media, with Assemblymember Chris Ward and Senator Akilah Weber Pierson framing public media as essential civic infrastructure for education, local news, arts, emergency alerts, and underserved communities. Local officials from San Diego and La Mesa voiced support, emphasizing public media’s role in trusted information, children’s programming, and community arts access. Panelists from PBS SoCal, KCRW, Rebuild Local News, NPR, KPBS, Radio Bilingüe, and KVPR described significant budget losses, layoffs, reduced programming, and threats to rural and specialized services. They highlighted impacts on children’s educational content, local journalism, arts coverage, science and documentary production, and emergency alert systems. Several speakers noted that smaller stations in rural or low-broadband areas are especially vulnerable, while larger stations are also cutting staff and delaying projects. They also discussed possible responses such as shared services, cost reductions, philanthropy, and state support, while warning that one-time bridge funding is not a long-term fix. Committee members asked about operational changes, alternative revenue sources, the role of state programs, and whether public pressure could restore federal funding. Witnesses said the loss is already being felt, that restoration appears unlikely in the near term, and that any state support should be structured to protect editorial independence and provide stable, timely funding. The hearing concluded with a shift to labor and production testimony and then to station-specific testimony from KPBS, Radio Bilingüe, and KVPR, followed by public comment.

Transcript Highlights:

• Burden if that would shift some cost away.
• And that's just operational costs and personnel.
• The new operating rooms will be operative when at in the first quarter of calendar year 2028 So, another
• So, managed care in general is to Drive costs down and maintain costs and keep them in there.
• But what we've seen initially on some Cost savings, cost diversions, buy-in from providers.

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:

• And what's the shortage on the operating cost? I guess that's an operating cost for just utilities.
• However, our operational standard operating procedures dictate that we fly for safety measures with a
• They pay the utilities and the operational costs. Okay. Let's go to your capital list real quick.
• It should be the same cost.
• And do you know what the increased cost is to NMSIA? Yes, there will be no increased cost.

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Transcript Highlights:

• This is our operating budget.
• The cost of the time, the opinion came out in August.
• So, there's a variable with the agreement and the cost.
• The current operating budget is not fully spent.
• What, you know, the costs, the evaluation criteria.

Committee: House Public School Capital Outlay Oversight Task Force

Transcript Highlights:

• Establishing a farm operation is capital-intensive.
• Inflation and operating costs have skyrocketed since COVID, affecting all of our inputs and supplies
• operation.
• So we have a very high cost structure to produce milk.
• FDOT funds up to 100% of the project costs for those... ...funds up to 100% of the project costs for

Committee: Senate Agriculture

Summary: The Committee on Agriculture convened, took roll, and heard Senate Bill 58 by Senator Harrow, which would create regulation for companion animal cremation. Harrow described a case involving mishandled pet remains and said the bill would require written service descriptions, prohibit false or misleading statements, require certification with returned remains, authorize Department of Agriculture and Consumer Services rulemaking, and impose civil penalties for violations. With no questions or public opposition, the committee voted the bill favorably. The committee then heard presentations on robotics in agriculture and aquaculture. Dr. Nathan Boyd of UF/IFAS discussed the rapid growth of agricultural robotics, including AI-driven weed detection, targeted spraying, autonomous tractors, and harvesting technology, emphasizing reduced pesticide use, lower input costs, and labor-saving automation. Dr. Nicole Kirchoff of Live Advantage Bait and Adrian Johnson of the Florida Shellfish Aquaculture Association highlighted aquaculture’s economic and environmental value, Florida’s strong position in the industry, and challenges including hurricane losses, lack of insurance, land-use instability, capital access, and water quality. They urged support for working waterfronts, risk mitigation, and policies to help the sector commercialize and expand. The committee also heard from dairy producers Kevin Lusher and Jacob Larson. Lusher described his family’s dairy and artisan cheese business, noting reliance on USDA grants, rising costs, labor shortages, and regulatory burdens, and asked for more grant support, marketing for Fresh From Florida products, and permanent funding for Farmers Feeding Florida. Larson discussed the broader dairy market, declining herd sizes due to efficiency gains, high production costs in Florida, and competition from out-of-state processing, suggesting incentives for local processing and supply management. Finally, FDOT Chief Planner Wayway Schen presented on arterial and local road funding programs, including ART, ARTW, SCOP, SCRAP, CIGP, and TRIP, and said rural road needs remain significant, with more than $16 billion in unfunded or partially funded project needs. The committee adjourned after brief discussion and thanks to the presenters.

Transcript Highlights:

• their profits, but also operational cost.
• The costs added in terms of the refinery margin account for their profits but also operational costs,
• The operational costs are still, benefits are still there, but they’ll be cheaper to purchase.
• The operational costs are still, benefits are still there, but they'll be cheaper to purchase.
• Since the capacity credit Funds for installation and operation and maintenance costs.

Summary: The hearing was a select committee discussion on the transportation costs and impacts of California’s Low Carbon Fuel Standard (LCFS), with opening remarks from the co-chairs and members emphasizing affordability, climate goals, and the need to explain the program’s benefits to the public. The first panel from CARB and the California Energy Commission described how LCFS works as a market-based, declining carbon-intensity program that rewards lower-carbon fuels, supports zero-emission vehicle infrastructure, and is intended to reduce greenhouse gases and local air pollution. They argued the program has driven billions in private investment, increased alternative fuel use, and that LCFS credit prices are not the main driver of retail gasoline prices, which they said are dominated by crude oil, refining, and distribution costs. Members questioned the panel on the gap between the regulatory target and actual carbon-intensity performance, the role of credit banking, which fuels are generating the most credits, how the 2025 amendments affected the program, and whether LCFS credits are truly additional. CARB explained that banking helps cost-effectiveness and investment certainty, that ethanol, renewable diesel, and biodiesel currently provide the largest volumes while electricity is expected to grow, and that the updated targets were informed by the state’s 2045 carbon-neutrality goals and the 2030 scoping plan. The Energy Commission said its data show environmental programs add some cost to gasoline but do not drive price volatility, which is mainly tied to crude oil and refinery margins. The second panel, featuring academic and research experts, focused on program design, out-of-state credit generation, and broader economic effects. Speakers said LCFS is successful because it ties incentives to emissions benefit, uses life-cycle analysis, and allows flexible compliance that lowers costs compared with more direct regulation. They also said the program’s benefits generally outweigh costs, that it can reduce air pollution disparities and support equity, but that some issues—especially indirect land use change, additionality, and older program assumptions—need more research and may warrant future rulemaking. One researcher noted that while LCFS likely raises gasoline prices somewhat, the effect is uncertain by design and usually smaller than normal market fluctuations, and another warned that limiting credit generation too narrowly could create legal and efficiency problems.

Transcript Highlights:

• We operate the state-operated psychiatric hospitals throughout the state.
• We also operate the state-operated habilitation centers and some state-operated community programming
• What is the cost? Do you know the cost?
• It costs a lot of people.
• “So what does it cost? This has been asked. What does it cost?”

Summary: The Budget Committee heard the Department of Mental Health’s FY 2027 budget presentation, with Director Valerie Hoon outlining a $4.4 billion department budget, including $1.7 billion in general revenue, and describing the department’s roles in substance use, behavioral health, and developmental disabilities services. Early questioning focused on marijuana-related mental health impacts, but the main discussion centered on the department’s new decision items, funding sources, and expected wait lists. The director explained several increases tied to Medicaid growth, mental health youth services, outpatient competency restoration, crisis residential services, developmental disability waivers, and provider tax adjustments, along with offsets such as reduced wraparound funding at the Kansas City Assessment and Triage Center and cuts to some youth and self-directed DD services. A major portion of the hearing focused on competency restoration for people found unfit to stand trial and currently held in county jails. Members pressed the department on the cost, effectiveness, and legal implications of keeping people in jail while awaiting services, noting a reported wait list of roughly 524 to 538 individuals and average holds of about 14 months. The department said it currently has eight outpatient competency restoration beds in the community, is seeking funding for 50 additional outpatient slots, and also operates jail-based restoration for about 40 people at a time. Members repeatedly asked for breakdowns of violent versus nonviolent cases, success rates, cost per person, and the split between state and federal funding, while the department explained that Medicaid can cover only the treatment portion, not residential housing or other non-billable costs. The committee also discussed broader capacity constraints in state hospitals and developmental disability services. Hoon said Fulton, Center for Behavioral Medicine, and FTC North are full, with 183 vacancies across the department, and that the department is working on a new Kansas City hospital that would add 150 beds, though completion is now expected closer to 2029 or 2030. In the developmental disabilities section, the department warned that the governor’s recommendation would create wait lists for in-home waiver services and crisis residential services, and members questioned proposed reductions to self-directed services rates and other provider payments. No votes were taken, and the committee recessed before finishing the presentation.

Transcript Highlights:

• They anticipate no ongoing costs after fiscal year 2028.
• cost on the business itself.
• This is a no-cost, no-mandate policy.
• We operate the duplex now as a short-term rental.
• We operate the duplex now as a short-term rental.

Summary: The House Finance Committee heard briefings and public testimony on several bills related to local tax authority and exemptions. HB 2559 would let cities and counties impose an additional 4% lodging/short-term rental excise tax starting in 2027, with revenues dedicated to affordable housing programs and up to 15% for administration. Staff explained existing lodging tax limits and estimated substantial local collections, while the prime sponsor and supporters argued it would give local governments a needed tool to address housing shortages caused in part by short-term rentals. Opponents, including short-term rental owners and hosts, said the tax would hurt tourism communities, reduce supplemental income for owners, and should not single out one lodging segment. The hearing on HB 2559 was suspended and later reopened for additional testimony; no vote was taken. The committee also heard HB 2133, which would make permanent the property tax exemption for multipurpose nonprofit senior citizen centers. Staff said the exemption is currently set to expire in 2028 and that the bill would remove it from the automatic 10-year sunset. The sponsor and a veteran/senior center perspective emphasized that the exemption helps keep senior centers open and supports isolated older adults. A question was raised about whether a broader nonprofit community center with senior-focused space would qualify, and staff said they would follow up. The hearing on HB 2133 was then closed. HB 2135 would increase and extend the adaptive housing sales and use tax remittance for disabled veterans, raising the individual lifetime cap from $2,500 to $5,000, increasing the statewide annual cap, and extending the program’s expiration to 2038. Staff said the fiscal impact would be minimal because use is low, and a veterans coalition representative supported the bill as a way to ensure more federal grant dollars go toward home modifications. The hearing on HB 2135 was closed. The committee spent the most time on HB 2442, an eight-part local government tax and fund-flexibility bill. It would expand uses of existing REET revenues, allow cities to adopt an affordable-housing REET under certain conditions, authorize county public utility taxes with a low-income assistance set-aside, create a new local sales tax for children and family services, broaden housing-related sales tax uses, restructure mental health and veterans property tax levies, extend levy lid lift periods, and allow rental car tax revenues to be used for criminal justice purposes. Supporters from counties, cities, housing groups, and some local officials said the bill would provide needed fiscal flexibility and new tools to address housing, public safety, and service demands. Opponents from utilities, realtors, water and sewer districts, wireless carriers, auto dealers, and tax critics argued the bill would raise regressive costs, especially on housing and utility customers, and that some provisions lacked a sufficient nexus to the original taxes. The hearing on HB 2442 was closed after extensive testimony.

Transcript Highlights:

• As we looked at other states, the costs vary across the board, but the minimum estimated cost is $1 million
• As we looked at other states, the costs vary across the board, but the minimum estimated cost is $1 million
• As we looked at other states, the costs vary across the board, but the minimum estimated cost is $1 million
• </c> next committees look into the cost next committees look into the cost associated<00:12:10.519><c
• </c><00:16:04.079><c> us</c> database in actuality that cost us database in actuality that cost us 30,000

Committee: Senate Government Operations

Summary: The committee met on February 4, 2025, for decision making on previously heard measures, then later held hearings on additional bills. Early action focused on several measures that were amended and advanced, including SB 161 on state project exemptions from county permitting, which was heavily revised to allow programmatic or project-specific agreements with counties, require public reporting of exempted projects, and create a working group to study broader permitting and construction coordination issues. The committee also advanced SB 635 on energy efficiency with changes shifting survey leadership to the Hawaii State Energy Office, SB 700 on resilience hubs after narrowing it to focus on emergency-service-capable hubs and removing distributed energy language, SB 869 on community outreach boards with a technical amendment, SB 1081 on a legislative budget office by converting it to a feasibility study, SB 711 on gubernatorial appointments with a salary threshold change, SB 405 on neighborhood board agendas with a committee-report note about OIP concerns, SB 381 with privacy issues deferred to Judiciary, SB 2 as a two-year pilot for fruit tree planting in selected districts, SB 239 on disaster preparedness with sheltering revisions, and SB 998 as introduced with a cost estimate for site selection work. Several measures were deferred or not advanced, including SB 615, which was deferred indefinitely, SB 1132, which the chair said would be set aside in favor of another childcare bill, and SB 111, which was not taken up further because of confusion during an earlier hearing. During the later hearing portion, SB 1175 on procurement drew testimony from the State Procurement Office, which supported the bill but corrected its estimated database revision cost from $7,500 to $30,000; the Department of Transportation also appeared, while the General Contractors Association submitted opposition. Committee members questioned whether the past-performance database should include more detailed quality information and whether a one-year post-completion review would be useful, but no amendment was adopted at that time. SB 1587 on retainage received written support from the Subcontractors Association of Hawaii and no opposition in the room. SB 1543 on government accountability, which would require justification for outside consultants and cap consultant spending, drew opposition from the American Council of Engineering Companies of Hawaii, which argued it could slow procurement, reduce flexibility, and worsen delays given existing vacancies and limited in-house expertise. The Public First Law Center supported the related transparency bill discussed in the hearing, arguing it would close a loophole by making contractor-created records used in government functions subject to disclosure under UIPA, while the Attorney General’s office opposed it. The transcript ends with that testimony still underway, and no final vote is shown for the later hearing bills.

Transcript Highlights:

• I'm Nucleon's Chief Operating Officer.
• Some states have adopted specialized cost recovery mechanisms intended to address unique costs associated
• It's the cost causer is the cost payer.
• It's the cost causer is the cost payer.
• In fact, we've had the lowest cost. In fact, we're decreasing in cost.

Committee: Joint Advanced Nuclear Energy Committee

Transcript Highlights:

• But we'll operate as we did last session.
• They cited high energy costs. They didn't name their compliance costs.
• They cited high energy costs.
• The statutory cost cap is not functioning as intended...
• The statutory cost cap is not functioning as intended.

Summary: The committee began with member and staff introductions, then held a work session on emissions-intensive trade-exposed facilities (EITEs) under Washington’s Climate Commitment Act. Ecology staff reviewed how cap-and-invest works, explained EITE no-cost allowance allocations, and summarized a new report to the Legislature on policy options for 2035-2050. Ecology recommended continuing no-cost allocations but adjusting them to fit the cap, considering a consignment approach that would require EITEs to invest part of the value of free allowances in decarbonization, and studying additional benchmarking and leakage-mitigation refinements. Quebec officials described their cap-and-trade system, including a consignment model that withholds part of free allocations, holds the value in trust for facilities, and requires technical studies and investment in mitigation projects; they said it has encouraged industrial investment and no business closures. Members asked about facility closures, compliance costs, eligible uses of consigned funds, and adaptation spending. The work session then closed. The committee then heard House Bill 2296, which would expand distributed energy resources by allowing portable plug-in solar devices and meter-mounted devices. The prime sponsor said the bill is intended to lower barriers and startup costs for renters and homeowners who want to electrify or add solar. Supporters, including a nonprofit promoting plug-in solar and a physician group, said the devices could broaden access to clean energy and reduce greenhouse gas and health harms. Utilities, labor, and industry groups opposed the bill as written, citing safety concerns, lack of national electrical code standards, possible backfeeding and fire risks, utility-worker hazards, unclear interconnection rules, and concerns about multifamily housing and small-utility review burdens. Some witnesses said they were open to continued work on the proposal. Next, the committee heard House Bill 2285, which would allow natural gas generation paired with carbon capture, utilization, storage, or mineralization to count toward Clean Energy Transformation Act compliance. The sponsor and supporters argued the bill would provide a “bridge” for firm power, help address reliability and transmission constraints, and support jobs while reducing emissions compared with conventional gas. Opponents said the bill would weaken CETA’s 100% clean electricity target by allowing resources that still emit carbon to qualify, and they questioned whether 75% capture is sufficient. Other testimony raised cost concerns and warned that carbon capture could increase ratepayer costs. The hearing on HB 2285 was later suspended and reopened briefly for additional testimony from Ecology, which said the bill would permanently weaken CETA standards and likely reduce emissions reductions. The committee also briefly received a staff briefing on House Bill 2272, a ski-area terminology bill, and then suspended that hearing to take it up later.