Transcript Highlights:

• The third is early dismissal of invalid claims.
• So, you know, most claims that are denied, Most claims that are denied go to a hearing within a year
• Like fraudulent claims, I guess?
• It's usually the first claim out of the shoot, and you have to claim it as a defense right away anyway
• It's usually the first claim out of the shoot, and you have to claim it as a defense right away anyway

Keywords: 959, house, all

Summary: The Insurance Committee met and heard testimony on two bills. House Bill 2375, sponsored by Representative Chris, would revise Missouri workers’ compensation law in several ways: clarifying the “prevailing factor” standard, allowing offsets for benefits paid by other sources, permitting earlier dismissal of invalid claims, and creating an appeal process for temporary awards. Supporters from the Missouri Automobile Dealer Association, Missouri Chamber of Commerce, insurance groups, and Associated Industries said the bill would reduce frivolous or prolonged claims and prevent double recovery. Opponents, including a Springfield workers’ compensation attorney, argued the bill would make it harder for injured workers to obtain medical care, improperly reduce benefits tied to private or public insurance, and add a second prevailing-factor hurdle that could deny legitimate claims. Committee members questioned the effect on first responders and supplemental policies such as AFLAC, and the sponsor said the language was intended as a clarification and had been acceptable to firefighters. House Bill 1789, sponsored by Representative Murphy, addresses insurance coverage for delivery drivers working for app-based services such as DoorDash, Uber Eats, Instacart, and Walmart Spark. Murphy said the bill is meant to close gaps in coverage by requiring proof of insurance during both the delivery period and the period when a driver is logged into the app but has not yet accepted a job, and by requiring periodic re-verification of coverage. Supporters from the Missouri Insurance Coalition, Shelter Insurance, DoorDash, Walmart, APCIA, and NAMIC said the goal is to ensure no gap in coverage and to clarify who is responsible when an accident occurs. Several witnesses and committee members raised concerns about whether the bill’s “independent contractor for all purposes” language is too broad, whether the minimum liability limits are too low, and whether the bill should require the driver or the company to maintain commercial coverage. The sponsor said he would continue working on a committee substitute and expected to have agreed-upon language later in the week. No votes were taken, and both bills were left at the hearing stage before adjournment.

Transcript Highlights:

• Um, on line 31 you can see that what we do to adjust for that is we just subtract the inflation amount
• Um, and then either the claim is denied or it moves along and the assessment's taken and the process
• Representative Burkel: The fence claims and the crop damage that a herd of elk can do in a short time
• </c><00:13:48.720><c> and</c><00:13:48.959><c> and</c> um you know submitting a claim and and um you
• Um once the claim forms are happens.

Bills: HF601

Keywords: agriculture, depredation compensation, livestock, crop damage, elk, wolves, wildlife management, 1183, house

Transcript Highlights:

• adjusting entries to the financial statements during the audit.
• And so in order to make sure that it is, we proposed an audit adjustment.
• adjustment that we made.
• We did adjust the part-time care to 50% of full-time care.
• And we did adjust the percentage of those payments to Step four, and we'd adjust the percentage of those

Summary: The committee met to receive a series of audit presentations, beginning with the statewide Annual Comprehensive Financial Report (ACFR) for fiscal year 2025. The State Auditor’s Office and OMB reported a clean, unmodified opinion for the state, with strong financial results including a $40.6 billion net position, $30.99 billion in assets, $1.81 billion in liabilities, and continued Legacy Fund growth. OMB also explained the new GASB 101 compensated-absences reporting change and discussed pension-liability fluctuations tied to discount-rate assumptions and investment performance. Members asked about how the state compares to others and about the effect of short-term commodity price swings, and OMB said the report reflects actual fiscal-year results rather than forecasts. The committee then heard the University System audit, which also received a clean opinion but included four findings: misreporting of Strategic Investment and Improvements Fund revenue, insufficient monitoring of service organizations at CTS, NDSU, and UND, improper bank reconciliations at Dakota College of Bottineau, Dickinson State, and Williston State, and investment/cash reconciliation problems at Bismarck State College related to bond proceeds. University officials agreed with the findings and said corrective actions were underway, including internal review of bank reconciliations. Members raised questions about NDSU’s use of certificates of deposit, and university staff explained that CDs are used to earn interest on funds being accumulated for future projects. Several other audits were presented, most with clean opinions and no findings, including the State Auditor’s Office, Workforce Safety and Insurance, Housing Finance Agency, Housing Incentive Fund, Job Service North Dakota, the Retirement and Investment Office, PERS, the Center for Distance Education, the Commission on Legal Counsel for Indigents, the Ethics Commission, and the Office of Administrative Hearings. Notable exceptions included a State Fair Association audit with an adverse opinion on the foundation component unit because its financial statements were not available for audit, and a Securities Department performance audit finding that performance-based pay increases and bonuses were issued without required evaluations. The committee also discussed the State Auditor’s future needs, including more staff capacity, data analytics, cybersecurity reviews, possible subpoena authority, independent legal counsel, and whether some audits—such as the Ethics Commission and State Fair—should be handled by independent third parties or under different statutory arrangements.

Transcript Highlights:

• We have inpatient and outpatient claims, which accounts for $688 million.
• We have inpatient and outpatient claims, which accounts for $688 million.
• Just one thing when I was looking over the per diem claims and fees, some exhibits...
• And so we do have a mechanism that if a claim is, Every week.
• But when they do make an adjustment, do they continue to make adjustments, you know, for the haves and

Summary: The subcommittee met to review Arkansas DHS hospital spending and reimbursement methods, with Secretary Janet Mann and Deputy Secretary Misty Eubanks explaining Medicaid hospital payments. They described fee-for-service per diem payments, cost settlements, and the upper payment limit (UPL) program, noting that SFY 2025 hospital payments included $688 million in inpatient/outpatient claims, $473 million in UPL payments, $248 million in cost settlements, and about $47 million in other payments such as graduate medical education and disproportionate share hospital funds. Members asked about why per diem rates vary, how cost settlements work, why UPL applies mainly to private hospitals, and how assessment fees are structured and funded. DHS said the hospital assessment fee is broad-based and uniform, used as the state share to draw federal funds, and that supplemental hospital payments after federal match totaled $548 million with no general revenue used. The Arkansas Hospital Association’s Jody Ann Tritt then gave a broader overview of the hospital landscape, explaining the different hospital types in the state, including critical access hospitals, rural emergency hospitals, PPS hospitals, and specialty hospitals. She said Arkansas hospitals face financial strain, citing a negative 5.18% patient service margin statewide and lower reimbursement than surrounding states. She argued that Arkansas hospitals are paid less than hospitals in neighboring states for similar services, that commercial payer rates and administrative burdens are a major problem, and that Medicaid and Medicare rates remain below cost even with UPL support. She also said hospitals are the backbone of community care, provide emergency and public health functions, and are looking for ways to invest in technology and telehealth but often lack the revenue to do so. Members pressed for clearer data on hospital finances, reimbursement adequacy, and the impact of commercial insurers. Tritt said the association had just authorized a statewide survey to gather updated financial information from hospitals, which she said would take about a year to complete. She also explained that Medicaid pays weekly, Medicare and commercial plans can involve delays and denials, and that hospitals often spend significant resources on revenue cycle work. The discussion ended with a brief update on assisted living reimbursement: DHS said one facility, The Pillars of the Community in Crossett, had announced closure, nine Living Choices waiver clients were being transitioned, and the updated rate study would be available after cost reports are collected, likely before the end of the fiscal year. The meeting then adjourned.

Transcript Highlights:

• That's a loss and loss adjustment sense expense box.
• So the cap as liquid position and its claims paying capacity is is really important because and what
• So those claims may get settle quicker if you're only left with a slab.
• And certainly companies can claim is a trade secret.
• So you're saying that that as a taxpayer, I cannot see if they claim a trade secret.

Transcript Highlights:

• There are many different policy options the legislature could take, such as adjusting who is served in
• Does that mean that 98% of the claims were filed by someone other than the worker? And if so, who?
• Beneficiaries can claim the credits in the year after revenue approves them.
• Between 2019 and 2024, they claimed $19.2 million in credits, and it is likely that they will claim the
• To date, there have been six tenants that have claimed the exemption.

Summary: The committee met on July 15, 2026, but initially lacked a quorum, so it could not adopt prior minutes. Chair Jerry Pollett welcomed new member Senator Victoria Hunt and new JLARC staff, and noted national recognition for recent JLARC reports. The meeting then moved into a series of preliminary audit presentations and an agency strategic management update, with committee members asking questions after each item. JLARC presented a preliminary audit of DCYF’s Juvenile Rehabilitation programs. Staff concluded that crowding, staffing shortages, weak risk assessments, and inconsistent programming combine to create unsafe conditions. The report found that most youth are housed in two large secure facilities operating near or above capacity, incidents rise as population rises, 47% of frontline staff leave within a year, current assessment tools are not valid for the population, and program access depends more on facility than individual need. JLARC made one recommendation to the legislature to address crowding and seven to DCYF, including improving retention, training, incident response procedures, validated assessments, program alignment, and data quality. DCYF Secretary Ross Hunter said the agency agreed overcrowding is a serious problem, described ongoing efforts to improve staffing and safety, and said a detailed response would be provided later. Committee members raised concerns about education access, retaliation against staff or youth who participated in the audit, and whether JR-25 has helped or worsened conditions. JLARC then presented a preliminary audit of Labor and Industries’ enforcement of farm worker labor laws. The audit found that L&I generally meets inspection timelines for health and safety complaints, but not for wage and hour or retaliation complaints, where delays are driven largely by time before assignment to an investigator. Staff said complaint volume exceeds capacity, though the agency has added staff, created screening processes, and reorganized workloads, and 2026 legislation now allows prioritization of complaints and broader investigations. JLARC recommended that L&I report back in December 2026 and December 2027 on backlog reduction and implementation of the new law. An L&I representative said the agency is hiring additional staff and will provide a formal response later. The committee also received a JLARC overview and Department of Health strategic management plan update on hospital data reporting, inspections, complaints, and adverse event reporting. DOH reported measurable progress on inspection compliance, new staffing and licensing systems, translated complaint forms, and plans for future work on language access, adverse event reporting, and financial data dashboards. After lunch, JLARC began its 2026 tax preference performance reviews. The first review covered the Main Street tax credit, which JLARC said has helped increase the number of Main Street communities and businesses, with positive growth near designated districts; JLARC recommended continuing the preference and improving business-count data. The second review covered the equitable access to credit program, which JLARC said appears to support underserved communities by funding loans through CDFIs; JLARC recommended continuing the preference beyond its 2027 expiration. The committee began questions on the program mechanics and the role of the Community Reinvestment Act, and the presentation was still underway when the transcript ended.

Transcript Highlights:

• </c><00:21:28.120><c> in</c> awfully hard for them to pay claims in awfully hard for them to pay claims
• They were adjudicating claims.
• claims.
• c> our</c><01:27:04.960><c> staff</c> claim their continued claims our staff claim their continued claims
• Well, um, there's an adjustment...

Keywords: 928, house, all

Summary: The committee heard testimony from Insurance Commissioner DJ Bettencourt on the New Hampshire Insurance Department budget. He said the department is self-funded through assessments on insurers based on New Hampshire premium volume, with about $8 billion in premiums written in the state and a department budget of roughly $15.5 million. He explained that the department has 88 authorized positions, eight vacancies, and that three full-time positions were unfunded after the governor’s requested 4% reduction exercise. He also said the department is trying to balance staffing needs with not overburdening carriers during a hard insurance market. A major topic was the department’s $2.6 million rebate to industry from the prior fiscal year, which Bettencourt described as a credit against the next assessment rather than a direct cash payment. Members questioned why that credit was not reflected as a reduction in the upcoming budget, and Bettencourt and staff explained that the budget assumes full staffing and full spending, with any year-end surplus returned to insurers. The commissioner said the department had added staff in recent years for succession planning and to preserve institutional expertise, and that the rebate reflects careful budgeting rather than excess spending. Members also asked about staffing changes by division, including positions unfunded in fraud, property and casualty examinations, life and health examinations, and tax. Bettencourt said fraud investigations remain strong and that the department can use outside contractors for examinations, with those costs billed to the company being examined. He also described the department’s examination process, including periodic financial exams and targeted market conduct reviews triggered by consumer complaints or trends. Additional questions covered OIT transfers, the department’s oversight of fully insured health coverage, the insurance premium tax and fines going to the general fund, and the department’s limited role in auto repair reimbursement disputes, where he said complaints have recently declined.

Transcript Highlights:

• <00:31:09.520><c> or</c> claims handling, governance, or claims handling, governance, or increases<00
• </c><00:32:02.399><c> can</c> sound so consumers medical claims can sound so consumers medical claims
• </c><00:32:27.039><c> are</c> reserves because medical claims are reserves because medical claims are
• providers, establishing a fair claims to providers, establishing a fair claims process<00:36:39.920><
• claims are audited.

Keywords: 1183, house

Transcript Highlights:

• In other words, the adjustments essentially offset. Mr. Chairman, Mr.
• Chairman, when we adjust the room again, I have a comment to make.
• The following year, we made up those adjustments. Mr.
• There'll be no adjustment necessary.
• Full conformity—our starting point is federal adjusted gross income.

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical Arizona tax conformity bills, HB 2153 and SB 1106, which would conform state tax law to the federal Internal Revenue Code as of Jan. 1, 2026, with some provisions applied retroactively to tax year 2025. Staff explained that the bills exclude the federal senior deduction for those 65 and older, the higher state and local tax deduction, and the new car loan interest deduction, while including a $6,000 retirement-income deduction for taxpayers 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. The JLBC fiscal note estimated a $441.3 million general fund revenue loss in FY 2026, and members discussed that this was roughly the same as full conformity because the bill’s adjustments offset some of the federal changes. Bill sponsors and supporters argued the measure should be enacted early to give taxpayers and tax preparers certainty before filing season, noting that the Department of Revenue had already issued forms assuming conformity and that delay could force amended returns. They said the bill reflects a negotiated package that preserves most of the federal tax relief while tailoring it for Arizona, especially by lowering the senior deduction age to 60 and replacing the auto loan deduction with family-focused provisions such as the higher child credit and child care deduction. The Arizona Society of CPAs and the Arizona Free Enterprise Club supported the bills, emphasizing the need for early conformity and fewer filing complications. Opponents, including Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, argued the package would reduce state revenue, worsen the structural deficit, and mainly benefit higher-income taxpayers and corporations. Some witnesses criticized the inclusion of federal school-choice-related provisions and warned about uncertainty around future federal guidance, while others said the bill should not move ahead before the budget process. Members also debated whether taxpayers would need to file amended returns if the state later diverged from the Department of Revenue forms, and whether the senior and child care provisions were targeted or equitable. The transcript ends during public testimony, with no final committee vote or action shown.

Transcript Highlights:

• c> uh</c><01:38:07.040><c> to</c><01:38:07.280><c> see</c> claims every individual claim uh to see claims
• </c> their claim argument is. their claim argument is.
• </c> what the claim is.
• And you are claiming what the claim is.
• </c> about claims processing. about claims processing.

Keywords: 1189, house, all

Transcript Highlights:

• So this is just a technical adjustment. You can see it's roughly $30 million.
• Our adjustments are really technical adjustments.
• The first item... is a technical baseline adjustment to our budget.
• In the May revision, we just have a simple technical adjustment that we do every year.
• Can you all adjust the mic, please? Hi, my name is Jolene Crochet.

Keywords: 988, house, all

Transcript Highlights:

• All claims below that threshold or above it are paid entirely by a health plan.
• All claims below that threshold or above it are paid entirely by a health plan.
• </c> Insurers have had to adjust quickly. Insurers have had to adjust quickly.
• Reinsurance payments go directly towards covering high-cost claims.
• . claims. claims.

Keywords: 1183, house

Transcript Highlights:

• This bill adjusts fiscal years 26-27 appropriation for the Department of Human Services, Department of
• This will get us through some of the adjustments that's needed.
• </c> get us through some of the adjustments get us through some of the adjustments that's<00:09:44.480
• ><00:13:01.120><c> and</c><00:13:01.520><c> perhaps</c><00:13:02.200><c> the</c><00:13:02.360><c> claims
• </c> AG's office, and perhaps the claims AG's office, and perhaps the claims bill,<00:13:03.760><c> which

Keywords: 1183, house

Transcript Highlights:

• So you've got pre-pandemic, where all the insurance agencies had there either claims adjusters or its
• And so we're trying to get people to come in and work as claims adjusters for our risk management division
• I'll repeat myself, with the claim adjusters. And then also in law enforcement.
• I'll repeat myself with the claim adjusters. And then also in law enforcement.
• What I failed to mention was we haven't stopped adjusting claims.

Summary: The subcommittee met to review agency vacancy reports and agency-requested budget reductions, with Chair Lopez framing the discussion around stewardship of taxpayer dollars, agency efficiency, and whether long-vacant positions should be cut or repurposed. Members were given vacancy summaries and asked to focus on how agencies are functioning with current staffing, which positions are mission critical, and whether some vacancies reflect market pay issues, re-engineering of work, or true excess capacity. The chair also noted that agency heads had been asked to provide follow-up information on current openings, average vacancy duration, mission-critical roles, and reasons for vacancies. The Department of Revenue was the first major agency reviewed because it had the largest number of vacancies. Its leadership said vacancies had improved from pandemic-era highs due to market pay adjustments, but that some areas—especially general tax and audit—still had long-term openings. The department explained that some positions are intentionally frozen while work is restructured, that it hires above minimum salary in some cases to stay competitive, and that it is using automation and process changes to reduce backlogs. Members raised concerns about vacancies outside Leon County, out-of-state auditor positions, salary compression, and whether the department should provide a list of frozen positions and the salaries actually needed to recruit. The Department of Financial Services said its long vacancies were concentrated in risk management, law enforcement, and the general counsel’s office, where salaries and competition from private employers and other agencies make hiring difficult. DFS said it was using outside vendors in some areas, had reduced vacancies in its general counsel office significantly, and was willing to identify positions that could be cut, including some from treasury and OAT. The Department of Business and Professional Regulation reported progress in lowering vacancies through statewide recruiting, centralized legal hiring, automation in service operations, and leadership changes in alcoholic beverages and tobacco; it said one recommended cut could be achieved by combining two half-time positions. The Florida Lottery reported a low vacancy rate, said all positions were critical, and explained its longer onboarding time due to extensive background checks; members discussed sales reps, incentives, and the agency’s field-office structure. The Office of Financial Regulation said many of its vacancies were already in the hiring pipeline, with recent vacancies tied to promotions, a death, and internal moves, and noted that it often serves as a training ground for federal agencies. The Office of Insurance Regulation, which had a high vacancy rate concentrated in Leon County, said it had been reducing vacancies from a much higher level and was still working through hiring and administrative constraints.

Transcript Highlights:

• and later adjusted, which can lead to a future claim being higher or lower after a credit is applied.
• He added that these are not the result of fraud; they are the result of claims being adjusted over time
• /c><01:09:43.960><c> so</c><01:09:44.199><c> that</c> claims are adjusted um and so that claims are adjusted
• a being more if it's adjusted higher or a future<01:09:50.719><c> claim</c><01:09:51.000><c> being</c
• </c> future claim being less if it's adjusted future claim being less if it's adjusted lower<01:09:53.560

Keywords: 1183, house

Transcript Highlights:

• </c> they would need to make adjustments they would need to make adjustments within<00:25:00.360><c>
• It goes down for a volume adjustment, and that volume adjustment is the volume of sold nationwide.
• There can be reductions in the downward volume adjustment, which means the volume adjustment can then
• And then there's a potentially downward adjustment for something called the NPM adjustment.
• :22.520><c> for</c> called The npm Adjustment npm stands for called The npm Adjustment npm stands for

Keywords: 928, house, all

Summary: The Department of Safety presented an overview of highway fund and unrestricted revenue collections, focusing on the Division of Administration, the Road Toll Bureau, and the Division of Motor Vehicles. Amy Newbery explained that the main unrestricted funding sources are highway funds and general funds, with highway fund revenue of about $263 million in FY 2024 and a FY 2025 projection of $261.2 million. She said revenue growth has been modest and has not kept pace with costs, creating structural deficits that required general fund transfers of $50 million in FY 2022-23 and another $10 million in FY 2024-25 to balance the fund. Jennifer Hall described Road Toll operations, including motor fuel tax collection at the distributor level, compliance enforcement, and licensing for fuel distributors, transporters, IFTA carriers, and oil discharge/pollution control. Members asked about IFTA, dyed-fuel enforcement, the possibility of using the state forensic lab for dyed-fuel testing, and whether audit positions had been filled; the department said it recently hired a part-time fuel enforcement officer, still uses IRS testing, could explore lab testing, and had no audit vacancies. Hall also discussed factors affecting fuel-tax revenue, including gas prices, crude oil forecasts, weather, tourism, GDP, and inflation, and said FY 2024 road toll revenue was $127.5 million, above plan, with FY 2025 projected at $127.71 million. The committee then turned to DMV-related revenues. Newbery said motor vehicle registration revenue was $93.1 million in FY 2024 and is projected at $90.4 million in FY 2025, with the state share going directly to the highway fund. Members asked about the state/town fee split, the five-year registration cycle dip, the distribution of registration revenue by vehicle weight category, and the impact of electric-vehicle surcharges; the department said the five-year dip is still occurring and will fade over time, and it would follow up on the weight-category breakdown. The presentation also noted that driver-license revenues have stabilized, inspection revenues remain steady, plea-by-mail revenue was added to the highway fund in FY 2024, and general fund revenues tied to the department are relatively small and have declined as some functions moved to OPLC. No votes or formal actions were taken.

Transcript Highlights:

• Not because of necessarily high claims or new claims, but because the risk environment just simply keeps
• to come forward as claims bills.
• to require the passage of a claims bill in order to pay out a claim.
• We can pick any adjuster.
• We all voted on that claims bill last year.

Summary: The Civil Justice and Claims Subcommittee considered HB 145, by Rep. McFarland, which would raise Florida’s sovereign immunity caps from $200,000 per person and $300,000 per incident to $500,000 and $1 million, with a future inflation-based increase, extend the time to bring claims, and allow local governments to settle claims above the cap without a claims bill. McFarland argued the bill modernizes an outdated system and helps injured people obtain compensation more fairly and efficiently, while preserving sovereign immunity. Several members spoke in support during debate, saying the bill better balances government accountability and victims’ rights and that current caps have not kept pace with inflation and damages. Public testimony was largely in opposition. Local governments, counties, cities, insurance groups, and school-related organizations warned the bill would significantly increase liability exposure, insurance premiums, and taxpayer costs, especially for small and rural governments and school districts. Opponents also objected to the provision allowing settlements above the cap without legislative action, saying it would weaken the cap and increase litigation and costs. Supporters countered that injured people often wait years for claims bills and that governments should be able to resolve meritorious claims directly. After debate, the committee voted 16-1 to report HB 145 favorably, with Rep. Lopez voting no. The meeting then adjourned.

Transcript Highlights:

• 2012 to 2022, for every dollar collected in premiums, some insurers in California spent $1.13 in claims
• insurance in 2023, according to the NEIC, their most recent profitability study, paid out $1.11 in claims
• The valley fire burned 76,000 acres, nearly 2,000 structures, and claimed four lives.
• Beyond administration of the program, private insurers also handle claims processing. risk assessment
• We also see adjusted for GDP.

Keywords: homeowners insurance, natural disasters, insurance costs, climate change, disaster preparedness, federal policies, bipartisan solutions

Summary: The meeting reviewed critical issues surrounding the rising costs and accessibility of homeowners insurance across the United States, particularly in light of increasing natural disasters linked to climate change. Members engaged in extensive discussions regarding the implications for families and the economy, citing significant increases in premiums and decreasing availability of policies in high-risk areas. Supervisor Peysko highlighted the direct impact of federal policies on local communities, emphasizing the growing burden on homeowners as they face skyrocketing insurance costs amidst a backdrop of environmental challenges and regulatory constraints. The committee expressed a unified call to action for bipartisan solutions, focusing on improving building codes and enhancing disaster preparedness measures.

Transcript Highlights:

• Chairman, when we adjust the room again, I have a comment to make.
• The following year, we made up those adjustments.
• The following year, we made up those adjustments. Mr.
• There'll be no adjustment necessary.
• If we had full conformity with no other adjustments, yes, that...

Keywords: 1182, all

Summary: The joint House Ways and Means and Senate Finance committees met to hear identical conformity bills, HB 2153 and SB 1106, which would align Arizona tax law with the federal Internal Revenue Code as of Jan. 1, 2026, including some retroactive provisions for tax year 2025. Staff explained that the bills would exclude three federal provisions: the higher federal SALT deduction, the new senior deduction as written in H.R. 1, and the deduction for interest on new car loans. They would instead include a $6,000 retirement-income deduction for taxpayers age 60 and older, a $6,000 Roth IRA contribution deduction, a higher dependent tax credit, and a deduction for child and dependent care expenses above the federal credit. JLBC estimated the package would reduce general fund income tax revenue by about $441.3 million in FY 2026. Members also discussed that the Department of Revenue’s forms had been issued assuming full conformity, and staff and supporters argued the bills were needed quickly to avoid confusion and amended returns during filing season. Committee members and sponsors largely framed the bills as tax relief and a way to provide certainty for taxpayers and preparers. Supporters said the package would help families, seniors, and workers, and noted that the Arizona version was negotiated to keep the overall tax relief roughly comparable to full conformity while shifting benefits away from the SALT deduction and toward child credits, retirement income, and child care. The sponsors also criticized the governor’s executive action and urged prompt passage so taxpayers would know how to file. Opponents argued the bills would reduce state revenue, worsen the budget outlook, and disproportionately benefit higher-income taxpayers and corporations. Several witnesses and members also raised concerns about the child care deduction, the retirement-income deduction, and the business expensing provisions, while supporters responded that the bill was designed to help working families and encourage saving and investment. Public testimony was mixed. The Arizona Society of Certified Public Accountants and the Arizona Free Enterprise Club supported the bills, emphasizing early conformity, filing certainty, and reduced confusion for taxpayers and software providers. Opponents included Save Our Schools Arizona, the Arizona Center for Economic Progress, Opportunity Arizona, and several individuals, who argued the package would deepen budget problems and favor the wealthy. One witness objected to a federal school-choice-related provision she said was being tied to the bill, though committee members said the measure before them was a tax conformity bill and not a school finance bill. The hearing included extended debate over the fiscal impact, the governor’s prior requests for some of the same tax changes, and whether taxpayers would need to file amended returns if the legislature later changed course. The transcript ends during testimony from NFIB, with no final committee vote or action shown in the excerpt.

Transcript Highlights:

• </c> there has not been a federal adjustment there has not been a federal adjustment on<00:20:30.360>
• </c> they could use that as a basis to claim they could use that as a basis to claim uh<00:22:05.600>
• There has not been a rule or a statute change or a federal adjustment.
• </c><00:44:15.760><c> for</c> greater area um uh Ami uh adjusted for greater area um uh Ami uh adjusted
• </c> would claim would claim non-resident<00:54:36.359><c> status</c><00:54:37.359><c> and</c><00:54:

Keywords: 1187, senate, all