Transcript Highlights:

• The governor originally proposed a 2% cap on inflation in this area.
• What we know is that they're going to impact consumers' bottom line.
• Big economic impact. They're important to all of us.
• This proposal will have deep and lasting impacts.
• As an indigenous person, I believe that what we do here impacts.

Transcript Highlights:

• </c> 2018 pension bill showed inflation 2018 pension bill showed inflation causes<00:19:22.799><c> a<
• </c><00:19:46.720><c> between</c> the annual rate of inflation between the annual rate of inflation between
• So, starting with the examples of member impact, this is how two different members would be impacted
• members would be impacted two different members would be impacted by<00:53:37.520><c> this</c><00:53
• </c> implex impacts with this law change. implex impacts with this law change.

Transcript Highlights:

• And now if you have a county board that's setting a maximum legal rental amount, how does that impact
• and low inflation; we rarely have deflation—but in a circumstance where a rent guidelines board were
• this change, and whether or not it will impact their tax bases at a local level?
• Again, in the 40 or something... ...and whether or not it will impact their tax bases on a local level
• If you don't mind, Chairman, how does this impact New York City?

Committee: Senate Housing, Construction, and Community Development

Summary: The Senate Committee on Housing, Construction, and Community Development met on March 31, 2026, with a quorum present and noted that the Legislature was in budget negotiations and approaching a scheduled break. The committee took up several housing-related bills, with most being reported to Finance after discussion. The first bill, S.3742A, would require information to be provided in new and renewal leases for certain housing accommodations, and it was reported without opposition. S.4659B, the Rental Emergency Stabilization for Tenants Act, generated the longest debate; supporters said it would give local governments outside New York City a more flexible way to determine a housing emergency and opt into rent stabilization, while opponents argued it lacked a clear vacancy-rate standard, could discourage development, and would benefit higher-income tenants. The bill was ultimately reported, with some negative votes and one or more votes without recommendation. The committee then discussed S.8168, which would create a deconstruction and salvage framework for building materials, including local options, technical assistance, grants, and related code updates. Supporters said it could reduce landfill use, lower disposal costs, and encourage reuse markets, while opponents questioned costs, market demand, and whether the program would raise housing and demolition expenses. The bill was reported, again with some negative or without-recommendation votes. S.8595, dealing with how certain valuations and amounts due are calculated in foreclosure actions, was also reported. S.8672, the Employer-Assisted Housing Matching Grant Act, would provide a state match for employer housing assistance for certain nonprofit human services employers; members raised concerns about scope, possible double-dipping, and whether the program should be expanded to other workers, but the bill was reported with some negative and without-recommendation votes. The final bill, S.94A, made a minor amendment to the Housing Access Voucher Pilot Program regarding priority applicants and unit inspections, and it was reported as well. Throughout the meeting, members repeatedly emphasized that several proposals were optional for local governments or employers rather than mandates, and many of the exchanges focused on affordability, housing supply, local control, and the fiscal effects of the bills. No floor votes were taken; the committee’s actions were limited to reporting the bills to Finance, with some reported favorably and others reported with negative or without-recommendation votes.

Transcript Highlights:

• Wouldn't that also continue to rise already in relation to inflation? Thank you for the question.
• But I see your point as inflation goes, but the inflation is not enough to keep up with the overhead
• We talk about the safe harbor and that these don't impact. We have this on..."
• "We've talked about the safe harbor and that these don't impact.
• Will this impact precincts, decreasing the number of precinct voting locations available?

Bills: HB1739 , HB1784 , HB1889 , HB2116 , HB2206 , HB3625 , HB2939 , HB3028 , HB3265 , HB3313 , HB3413 , HB3414 , HB3415 , HB3416 , HB3417 , HB3418 , HB3420 , HB3588 , HB3748 , HB3721 , HB3852 , HB4132 , HB4263 , HB4303 , HB4311 , HB4428 , HB4429 , HB4434

Committee: House Government Oversight

Summary: The committee opened with prayer, laid over House Bill 1784 as dead, and then heard a long series of measures, many related to pensions, retirement systems, elections, and state procurement/reporting. Early bills included HB 3588 on debtor-creditor law updates, HB 3748 on county partnerships with four-year institutions, HB 4303 extending the municipal ordinance publication deadline from 15 to 30 days, HB 4311 increasing the treasurer’s share of the unclaimed property administration fee from 4% to 6%, and HB 3028 allowing CareerTech to charge processing fees. All of these advanced on due pass votes, with some opposition on HB 3588, HB 4311, and HB 3028. A major block of the meeting focused on retirement and pension policy. The committee advanced HB 4428 and HB 4429 on proxy advisor transparency and fiduciary voting standards for retirement systems, with the author arguing they would improve transparency and keep pension decisions focused on financial returns rather than ESG/DEI considerations. Other pension-related bills that passed included HB 4132 creating a cybersecurity safe harbor for local governments, HB 1889 fixing a COLA gap for certain retired police officers and firefighters, HB 3265 defining “mental health specialist” for disability applications, HB 1739 reinstating a half-pay provision in the state law enforcement retirement system, HB 3313 changing the Retirement Freedom Act by raising contribution and match rates and eliminating vesting, HB 2116 expanding eligibility for State Fire Marshal officers, HB 2206 allowing newly hired school resource officers to join OLEERS, HB 3625 expanding school district investment options, and HB 3721 creating a survivor-benefit election for children of certain public safety officers. Most of these passed with little or no debate, though HB 1739 drew questions about actuarial “safe harbor” language and pension funding. The latter part of the meeting centered on a package of government contracting and transparency bills from Representative Strom. HB 3413, HB 3414, HB 3415, HB 3416, HB 3417, HB 3418, and HB 3420 would require more detailed reporting of contracts, subcontractors, consulting services, and post-contract assessments; create public posting and reporting requirements through OMES and Central Purchasing; revise bidding rules for state, county, and municipal entities; require vendor ownership disclosures; allow live-streamed bid openings; and add misdemeanor penalties for violations of Central Purchasing rules. Strom said the package was intended to improve accountability, documentation, and protection of taxpayer dollars. The committee also passed HB 3852 clarifying poll worker list requirements for county election boards, HB 4434 requiring gubernatorial notice when out of state, and HB 2939 removing fax-machine references from statute. Most measures were adopted with policy recommendations and passed on strong votes, and the meeting ended with Chairman West thanking members for their work and adjourned the committee.

Transcript Highlights:

• When it comes to cost and why housing is so expensive, there's obviously high impact fees and we have
• at a rate of double that of inflation since 2019.
• Offsite in Redding or Sola Impact in L.A., are examples of those smaller factories.
• Local impact: we've created 70 new direct jobs. We are a factory.
• There's also a local impact of second-chance employment.

Summary: The Select Committee on Housing Construction Innovation met to examine how industrialized construction, including modular, panelized, manufactured, and 3D-printed building methods, could help lower California’s housing costs and speed delivery. Chair Buffy Wicks opened by describing the committee’s purpose as a cross-cutting effort to address construction costs, drawing on visits to factories in Sweden, Idaho, and Indiana. Members from both the committee and invited participants broadly agreed that California’s housing crisis is driven not only by land use and permitting, but also by high construction costs, labor shortages, and a lack of scalable innovation. Ben Metcalf of UC Berkeley’s Turner Center provided the main policy overview, saying California needs roughly 2.5 million additional homes by 2030 and that multifamily construction costs in the state can be far higher than in Texas or Colorado. He said factory-built housing can reduce hard costs and timelines under the right conditions, but barriers remain in financing, local code and design review, uncertain demand pipelines, and fragmented research and data. In response to committee questions, he discussed possible state actions such as pro-housing incentives, state-backed purchasing or subsidies, more standardized approvals, and better research infrastructure. Members also raised the need to involve labor and building trades in the process. A panel of developers and builders then described projects and cost savings from factory-built and related methods. Caleb Rupp of Pacific Companies said modular construction can save about 20% on average and cited a project where modular delivery reduced the need for public subsidy by $18 million; he suggested incentives such as tax exemptions, state-owned sites, third-party inspections, and limits on local code variation. Lois Kim of Mutual Housing California described a pipeline of more than 660 units across six jurisdictions, saying a predictable factory pipeline can reduce construction time by about 40% and total development costs by at least 10%. Danny Haber of O’WOW said standardized design, componentized construction, and mass timber can cut costs substantially, while also criticizing outdated codes, utility hookup fees, and financing costs. Donna Jamian of Emergent Construction described California’s first code-approved 3D concrete printing projects, including homes in Redding and work on a commercial building and fire-recovery projects in Altadena. She said current codes have not caught up to the technology and asked for participation in local self-certification programs. Committee members asked about the role of state incentives, code alignment, financing support, and how to build developer confidence after failures like Katerra. No votes were taken; the hearing was informational and ended with plans for further hearings and a forthcoming white paper with policy recommendations.

Transcript Highlights:

• What is coming around is a chart which compares increasing the provider inflation by 2% one year, 2%
• the second year, to providing inflation of 2% one year and 1% the second year.
• Any direct correlations, but I think all of the testimony that we heard indicated that the inflation
• So I chose one that I think had the broadest impact for the people that serve our citizens.
• It impacts the cost of the bill.

Committee: Senate Appropriations

Summary: The committee first took up House Bill 1012, the Department of Health and Human Services budget. Senator Dever walked through the amended budget, highlighting a roughly $5.85 billion all-funds total, major one-time items for IT, child care, housing, behavioral health, juvenile justice, rural EMS, and supportive housing, along with funding for Medicaid expansion, CCBHCs, opioid settlement uses, and several studies and reporting requirements. Members discussed the provider inflation increase, with Senator Mathern urging a 2%/2% rate instead of 2%/1.5%, but the committee adopted the subcommittee amendment and then passed the amended bill 15-0 with a do-pass recommendation. Senator Dever was named as carrier. The committee then considered House Bill 1540, a school choice/education savings account-style bill. Senator Shibley explained the subcommittee amendments, including clarifying the Bank of North Dakota as administrator, adding a means test at 400% of the federal poverty guideline, and adjusting the fiscal note to about $21.7 million for the second year. In debate, members raised concerns about the bank being assigned duties outside its normal role, the lack of DPI involvement, and whether the means test should be tiered rather than a hard cutoff. The committee rejected a do-not-pass motion 5-10-1, then approved a do-pass motion on the amended bill 9-6-1, with Senator Wobama noted as the likely carrier. The meeting ended with the chair announcing the committee would adjourn and reconvene the next morning.

Transcript Highlights:

• Which doesn't really have any impact on the removals credits.
• Which doesn't really have any impact on the removals credits.
• Which doesn't really have any impact on the removals credits.
• Which doesn't really have any impact on the removals credits.
• Which doesn't really have any impact on the removals credits.

Summary: The meeting began with introductions, approval of the March 6 minutes as amended to add an attendee list, and a brief overview of the day’s agenda. The committee heard two presentations from carbon project developers, with the first from Dylan Jenkins of Finite Carbon. He described Finite Carbon’s work in improved forest management projects, its role in developing carbon methodologies and protocols, and its experience with projects in New England, Appalachia, Alaska, and Canada. He also outlined the difference between compliance and voluntary carbon markets, the role of registries and intermediaries, and the types of buyers in the market, including large corporate buyers and long-term off-take partners. A major focus of the presentation was how forest carbon projects are structured and how credits are monetized. Jenkins distinguished between removals and reductions, explaining that removals come from new forest growth while reductions are tied more closely to baseline assumptions and standing stock. He said improved forest management projects can generate both types of credits, and that removals generally command higher prices because they are easier for buyers to understand and verify. He also emphasized that carbon project commercialization can occur before, during, or after credit issuance, and that landowners may be paid through a variety of structures, including leases, advance fees, per-unit payments, or off-take agreements. Jenkins then addressed the committee’s tax-related questions, saying House Bill 123 appeared intended to treat carbon credit sales similarly to timber sales for local tax purposes. He argued that carbon credits are a forest product and that taxing them can be reasonable in principle, but he stressed that lawmakers should distinguish between commoditization and commercialization when deciding what event to tax. He noted that credits may be created but never sold, and that in some programs landowners retain timber and carbon rights while in others the developer has deeper control over those rights. In response to questions, he said the industry uses protocols, verification, and third-party oversight to address baseline and quality concerns, but acknowledged that baseline setting remains a major point of debate in the market.

Transcript Highlights:

• is at 419%, and so it is a very small drop in the bucket, and so it would have a very negligible impact
• The division and the board recognized, though, that these fees would impact the board's financials and
• to licensure and an impact to the board's potential fiscal situation.
• The division also has impact and influence over that.
• Lastly, I do want to emphasize that this new license type and fee would have no impact on the state's

Committee: House Health and Welfare

Transcript Highlights:

• We want to find out what the impact of this income tax is having.
• Speaker, that, nope, doesn't have an impact.
• I'm thinking primarily of inflation.
• Few folks would be potentially impacted by this income tax.
• Every decision impacts someone, and often many people.

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, juice grapes, agriculture, commerce, state regulation, market access, fire safety, insurance incentives, best practices, community protection, voluntary measures, mortgage modification

Transcript Highlights:

• impact in these spaces. >> Absolutely. >> So you call it the collapse of the coal industry.
• </c><00:53:53.040><c> Uh,</c> uh, impact from the great recession.
• Uh, uh, impact from the great recession.
• </c><00:58:13.680><c> And</c> inflation and those types of things.
• And inflation and those types of things.

Summary: The committee first approved the minutes and heard a brief member introduction before taking up an overview of major tax provisions in HR1, referred to by the presenters as the One Big Beautiful Bill Act. Representatives from the Kentucky Society of CPAs explained new federal deductions for tips, overtime, and car loan interest; a new tax-favored “Trump account” for children; expanded bonus depreciation and Section 179 expensing for businesses; changes to R&D expensing; and a new limit on wagering loss deductions. Members asked several clarifying questions about the duration of the provisions, W-2 and 1099 reporting changes, and how overtime deductions would work. The presenters emphasized that tips and overtime remain subject to payroll taxes and that many of the business provisions are permanent, while the individual deductions are temporary through 2028 or otherwise phased in over time. The discussion then shifted to individual and nonprofit provisions, including the increase in the state and local tax itemized deduction cap from $10,000 to $40,000 with income-based phaseouts, the temporary senior deduction, and a new deduction for car loan interest with income limits and vehicle qualifications. On charitable giving, the presenters described a permanent nonitemizer deduction, new floors for individual and corporate charitable deductions, and a new scholarship-granting organization credit that would allow donors to receive a dollar-for-dollar federal credit up to $1,700, beginning in 2027. Members focused heavily on the SGO provision, asking about state implementation, oversight, whether churches would qualify, and whether the credit could support both public and private education. The presenters said the state would need to establish the mechanism and that additional federal guidance is still pending. After the tax presentation, the committee heard from the Kentucky Chamber of Commerce on workforce issues, with a focus on child care and housing as barriers to labor force participation. Chamber representatives said they were not proposing large new government programs, but rather targeted policy recommendations for the 2026 session. They described Kentucky’s long-term decline in workforce participation since 2000, attributing much of it to demographic change, an aging population, and fewer younger workers entering the labor force. The presentation continued into a broader discussion of workforce trends and the need for practical policy responses, but no votes or formal actions were taken on these informational items.

Transcript Highlights:

• For some increases in the recognition that fees might need to go up to account for inflation.
• , then they can continue to have these measured increases to account for inflation.
• Those prices... ...that led to significant inflation. Those prices now are still with us.
• They have the ability to pass on rising costs due to inflation.
• not exceeded that rate of inflation over the last four years.

Summary: The House opened with prayer, the Pledge of Allegiance, attendance, and a series of guest introductions and recognitions, including Doctor of the Day Dr. Eric Osowski, State Farm visitors, Donate Life Day participants, and representatives from Ganado and Chinle Unified School Districts. The chamber also read proclamations honoring Ganado Unified for the ASBA Golden Bell Promise Program Award and Chinle Unified for multiple academic and cultural achievements, including national recognition for Chinle Elementary School and district leadership. The body then moved through committee and floor business, including consent for the Senate to adjourn, first and second readings of several bills, and a motion to reconsider HB 2429. In Committee of the Whole, HB 2093 was amended to restore mental health instruction while removing social emotional learning, HB 2229 advanced after debate over reproductive health and abortion-related provisions, HB 2429 and HB 2950 were amended and recommended do pass, and HB 4136 also advanced as amended. The House adopted the Committee of the Whole report and referred the measures to engrossing. The chamber then considered HB 4001, a bill regulating alternative nicotine products, with amendments and debate focused on licensing, enforcement, youth access, and whether to add a tax or education provisions; the bill was recommended do pass as amended. It also debated HB 4030 and the related HCR 2052, both aimed at limiting municipal tax and fee increases and allowing increases tied to inflation or new water-source costs. Amendments offered by Democrats to redirect the measures toward affordability, housing, and health insurance claims were ruled out of order or defeated on roll-call votes, while the Olson substitute amendments prevailed. The House ultimately adopted the Committee of the Whole report, sending HB 4001, HB 4030, and HCR 2052 forward as amended.

Transcript Highlights:

• I just went to the CPI inflation calculator on the Bureau of Labor and Standards website.
• which is when the first payment of these $25,000 planning commissions would have been received, inflated
• Inflated to today, July of 2025, when the last payment would have been made, would result in $183,000
• Just curious if CPI goes negative, does that impact you, or is this just a one-direction escalator?

Committee: House Local Government, Elections and Pensions

Summary: The Committee on Local Government met in executive session and voted on three bills. House Bill 1906, at the sponsor’s request, was first approved do pass and then approved do pass by consent, both by 16-0 votes. House Bill 3003 was described as a bill worked on with the building trades and was approved do pass by a 15-1 vote. House Bill 2898, referred to as the “Lamb Bank” bill and noted as having previously passed the House before being struck down on a procedural issue, was approved do pass by a 16-1 vote. The committee then held a public hearing on House Bill 2096, sponsored by Representative Farnan, which would increase state matching-fund caps for Missouri regional planning commissions and update the list of eligible commissions. Farnan said the bill would raise the larger commissions’ cap from $65,000 to $130,000 and the smaller commissions’ cap from $25,000 to $50,000, subject to appropriations, and that the funds are matching dollars tied to local contributions. Members asked about the source of local funds, the CPI indexing language, and whether the bill could be amended to protect against reductions if CPI is flat or negative. Testimony in support came from Jeremy Tans of the Southeast Missouri Regional Planning Commission and immediate past president of MAKOG, who said the cap has not changed for years and the commissions provide coordination for infrastructure, transportation, broadband, and economic development across jurisdictions. Laura Holloway of the Missouri Municipal League also supported the bill, saying municipalities work closely with the commissions. No opposition testimony was offered, and the hearing on House Bill 2096 was closed before adjournment.

Transcript Highlights:

• doesn't impact utilization.
• </c> cost but it doesn't impact utilization. cost but it doesn't impact utilization.
• </c> that the safety and health has impacted that the safety and health has impacted the<00:17:54.080
• </c> could be impact to the lump sum sector. could be impact to the lump sum sector.
• <c> has</c> and inflation does what inflation has and inflation does what inflation has done<01:22:55.040

Committee: House Labor, Industrial and Rehabilitative Services

Transcript Highlights:

• He worked on hundreds of bills and was instrumental in legislation that has left a lasting impact on
• He worked on hundreds of bills and was instrumental in legislation that has left a lasting impact on
• Why were those economic impacts not taken into account as we adjusted the BSA?
• And this is a budget that doesn’t even anticipate what some of those impacts might be.
• What happens to just the students impacted by this?

Summary: The House convened with prayer, a moment of silence for former Senator Donnell C. Childers, the Pledge of Allegiance, and recognition of Officer Antonio Richardson as law enforcement officer of the day. A quorum was announced, the journal was approved, and the Speaker said the chamber would take up 11 budget conference reports, with debate and final votes on each report. The first report considered was HB 7031E, the tax package, followed by HB 501E, the state budget appropriations bill. On HB 7031E, Chair Duggan explained that the conference report included a range of tax reductions and tax-related changes, including sales tax holidays, property tax and homestead-related provisions, reductions in certain taxes and fees, and new exemptions or administrative clarifications. He said the package also added items such as sales tax relief for certain university construction projects, a tennis admissions exemption, and changes to agricultural property tax treatment, and that the amendment reduced state and local tax revenues by $272.2 million. Members questioned the bill about the child care tax credit reduction from three years to one, the homestead exemption provision for certain diplomats and foreign service personnel, the absence of gas tax relief and combined reporting, and the inclusion of firearm accessories and tennis tickets in sales tax holidays. After structured debate, the House adopted the conference report and passed HB 7031E by a vote of 88-11. The House then began the conference report on HB 501E, the $114.5 billion budget for fiscal year 2026-2027, which was described as below the prior year’s spending level and leaving more than $14 billion in reserves. Subcommittee chairs outlined major allocations across education, higher education, IT, health care, transportation and economic development, justice, state administration, and agriculture/natural resources. Highlights included increased FEFP funding and veteran teacher raises, full funding for Bright Futures, major IT modernization projects, Medicaid and behavioral health funding, transportation and local infrastructure spending, correctional and law enforcement investments, fire station and emergency response funding, and large environmental and water-quality appropriations. Members asked detailed questions about school voucher fraud oversight, scholarship funding, teacher raises, preeminence funding, ADAP changes, SNAP data tools and error rates, Medicaid rate changes, prison wastewater monitoring, and other budget items, but the transcript ends during the budget questions before final action on HB 501E is shown.

Transcript Highlights:

• My district's reach out and has concerns about this and its negative impact in my area.
• It impacts students. It impacts teachers. It impacts programs.
• I think the impact of this bill on that district would be enormous.
• I mean, we've only been giving Plan 1 retirees a 3% for years and years and years when the inflation
• These are significant powers that directly impact property owners and local communities, Mr.

Bills: HB2720 , HB2073 , SB5816 , SB5919 , SB5831 , SB6244 , SB6044 , SB5109 , SB5877 , SB6258

Summary: The House first took up Substitute Senate Bill 6225, a transportation bond measure. Supporters said it was needed to fund preservation and maintenance of Washington’s transportation system, including road upkeep and emergency repairs, while opponents argued the state had already addressed current needs through a recent unanimous budget and existing bond authority. The bill passed final passage 59-38, meeting the required three-fifths vote. The House then considered Gross Substitute Senate Bill 6260, an education budget-related bill with many floor amendments focused on transition to kindergarten, alternative learning experience (ALE) funding, local effort assistance (LEA), educational service district reserves, superintendent pay, MSOC funding, and collective bargaining limits. Most proposed amendments were rejected, though Amendment 2654 on TK priorities was adopted. After the committee amendment as amended was adopted, the bill advanced to third reading and then passed 50-47. Supporters described it as a necessary budget reduction and risk-management measure; opponents argued it cut K-12 funding too deeply, especially in rural and property-poor districts, and would worsen inequities and invite litigation. The House also concurred in Senate amendments and passed several other bills. House Bill 1796, about school construction financing and capital levy use, passed 95-2. Second Substitute House Bill 2105, dealing with immigrant worker protections, passed 58-38. Engrossed House Bill 2211, on food sourcing for a health-related program, passed unanimously. Engrossed Substitute House Bill 2225, regulating companion chatbots and child safety, passed 74-21. Engrossed Substitute House Bill 2247, related to animal care, passed unanimously. Engrossed Second Substitute House Bill 2418, streamlining permitting timelines to support housing affordability, also passed unanimously. The House then moved on to additional Senate-concurred bills, beginning with Second Substitute House Bill 1906.

Transcript Highlights:

• ... ...to us today because it directly impacts them.
• It's crucial that we understand where these funds are going and how they will impact the stability of
• SB93 also impacts our across 13 states.
• SB93 also impacts our plan design as it prohibits us from promoting one pharmacy over another.
• I understand that drug costs have gone up; inflation is a problem for all of us. inflation is a problem

Committee: Senate Banking and Insurance

Transcript Highlights:

• All these things were impacted.
• Our community was directly impacted by the recent flood event.
• The revenue impact of the bill is indeterminate.
• inflation and the growth of public subsidies.
• Costs are outpacing inflation and the growth of public subsidies.

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:

• </c> a lot of inflation in the medical area. a lot of inflation in the medical area.
• </c> keeping up with the inflation increases. keeping up with the inflation increases.
• </c><02:55:55.520><c> on</c> not going to touch these, the impact on not going to touch these, the impact
• </c> economic impact economic impact and<03:18:51.359><c> the</c><03:18:51.680><c> 88</c><03:18:52.160
• :19:04.960><c> than</c><03:19:05.200><c> revenue</c> impact is way different than revenue impact is way

Transcript Highlights:

• 00:04:12.200><c> of</c> to cap property taxes at the rate of to cap property taxes at the rate of inflation
• inflation inflation plus<00:04:13.840><c> 50%</c><00:04:14.760><c> of</c><00:04:14.920><c> population
• Like my colleagues said here today, Minnesotans are really feeling the impact of high costs and high
• </c><00:15:30.520><c> They</c><00:15:30.640><c> can</c> the rate of inflation plus 50%.
• They can the rate of inflation plus 50%.

Summary: Minnesota Senate Republicans held a press conference unveiling a package of affordability and tax-relief bills aimed at property taxes, taxes on tips and overtime, and vehicle registration costs. Leader Mark Johnson said the proposals were meant to counter rising costs for wages, homeownership, and driving, and argued that Democrats’ policies had made life more expensive. Several senators echoed that theme, saying Minnesotans need immediate relief and that the state has room to act because of a reported surplus. Senator Michael Kunesh described a property-tax cap bill that would limit increases for cities and counties to inflation plus 50% of population growth, with higher increases requiring voter approval. He said constituents, including seniors, a disabled veteran, and young people, are seeing unsustainable property-tax hikes, and he argued that state and federal mandates have driven local costs. In response to a question about added county workload from federal SNAP and Medicaid changes, he said the solution is both to pause new mandates and to cap property-tax growth. Senator Karin Housley outlined a proposal to end state taxes on tips and overtime, with deductions up to $25,000 for tips and $12,500 for overtime, phased out at $150,000 for individuals and $300,000 for families. She said the measure would help workers keep more of what they earn and would not cost small businesses directly. Senator John Jasinski proposed rolling back vehicle registration tab fees to pre-2023 levels, saying Minnesota’s fees are far higher than neighboring states and that the change would save drivers money over time. Senator Julia Coleman also supported the package, saying the bills would provide practical relief for families facing high housing, driving, and work-related costs. No votes were taken; the event ended with questions from reporters about fiscal impacts, offsets, and whether the proposals would worsen the state’s structural budget imbalance.

Transcript Highlights:

• There has been an update to the numbers, so we're taking that back and looking at what the true impact
• That's the 2021-2022 inflation surge, where purchasing power dropped from about 90% to 82% in just two
• At just 3%, 48 out of 50 states fully beat inflation.
• At just 3%, 48 out of 50 states, fully beat inflation.
• Green, bold means the state beat inflation at that allocation level.

Summary: The Assembly Banking and Finance Committee held an informational hearing on digital asset innovation, with opening remarks framing cryptocurrencies, blockchain, stablecoins, tokenization, and decentralized finance as a growing part of the financial system. Dennis Porter of Satoshi Action Fund presented on the market size, institutional adoption, use cases such as remittances and small-business payments, and policy developments at the federal and state levels. He also discussed risks including volatility, cybersecurity, and illicit use, while arguing that clear regulation can support innovation and consumer protection. State Controller Malia Cohen then updated the committee on implementation of SB 822, California’s unclaimed digital asset law. She explained that the law applies to custodial accounts, not self-custodied wallets, and requires holders to conduct outreach before dormant digital assets are transferred to the state in native form. Committee discussion focused on how abandonment is determined, what counts as account activity, the expected timeline for notices and custodian procurement, and the administrative costs and staffing needed to run the program. Controller staff said the state is still building procedures, working with Oregon, and expects a significant increase in claims once the program is operational. Porter returned with a proposal for a California digital asset reserve fund built on unclaimed digital assets under SB 822. He argued the fund could be cost-neutral, use only high-quality digital assets, and include guardrails such as an advisory board, audits, and public reporting. Committee members expressed interest in diversification and consumer protection, but also raised concerns about volatility, documentation, and market downturns. The hearing ended after public comment from industry and advocacy representatives, including support from the California Blockchain Advocacy Coalition, the Crypto Council for Innovation, and Coinbase, all urging clear, technology-neutral policy to keep innovation and jobs in California.