Transcript Highlights:

• There is not a penalty if we're at 5% or 4%. Our goal is to get to 3%.
• There is not a penalty if we're at 5% or 4%. Our goal is to get to 3%.
• The federal goal is 6%; over 6%, you pay a penalty. But in between 3 and 6%, there's not a penalty.
• The federal goal is 6%; over 6%, you pay a penalty. But in between 3 and 6%, there's not a penalty.
• The federal goal is 6%; over 6%, you pay a penalty. But in between 3 and 6%, there's not a penalty.

Bills: HB4138, HB4139, HB4140, HB4141, HB4142, HB4143, HB4144, HB4145, HB4146, HB4147, HB4148, HB4149, HB4150, HB4151, HB4152, HB4153, SB1831, SB1832, SB1833, SB1834, SB1835, SB1836, SB1837, SB1838, SB1839, SB1840, SB1841, SB1842, SB1843, SB1844, SB1845, SB1846

Keywords: appropriations, education funding, health care, general fund, state budget, local funding, gaming, pari-mutuel, horse racing, regulatory assessment, first-time starters, budget implementation, federal funds, government services, budget stabilization, financial reporting, capital outlay, infrastructure, veterans services, highway construction

Summary: The committee met in a special joint appropriations session to review the FY 2027 budget package, including House Bill 4138 and Senate Bill 1831, the general appropriations or “feed” bills. Staff described the budget as including a one-time transfer of state funds, a 5% lump-sum reduction to most agencies’ discretionary general-fund budgets, continued funding for the state health insurance plan and school facilities, and various one-time restorations or reversions of prior appropriations. Members spent much of the meeting clarifying how the 5% reductions would work, noting that formula and mandatory funding such as K-12 basic aid are excluded, while the governor’s executive branch would decide how to implement the cuts within agencies. The chair repeatedly emphasized that the committee was not specifying line-item cuts and that agencies would have discretion over implementation. A large portion of the discussion focused on the practical effects of the budget on universities, public safety, health care, rural programs, and fund sweeps. Arizona Board of Regents and university representatives said the proposed reductions would amount to more than $85 million statewide and could affect programs such as the Arizona Promise Program, Teachers Academy, and tuition freezes, though no specific program cuts were written into the bill. Other testimony raised concerns about fund sweeps from encumbered balances, including university research funds, housing trust funds, utility regulation funds, and ADOT-related accounts, with some members warning about possible impacts on rural infrastructure and federal matching dollars. The committee also discussed the state employee health plan, including a $228 million general-fund infusion and proposed employee premium increases over three years, as well as questions about corrections, forestry and fire management, and rural critical access hospitals. Public testimony was largely opposed to the budget. Speakers from Opportunity Arizona, the Arizona Board of Regents, health care, and local government argued that the package would reduce support for education, housing, SNAP, health care access, and rural communities while preserving tax benefits for data centers and wealthy taxpayers. A mayor from Globe described severe flood damage and asked for state help for a flood relief fund, while a motorcycle safety advocate questioned a proposed transfer from the motorcycle safety fund. Committee members debated whether the budget’s effects should be described as speculative or as likely consequences of the broad cuts, and several exchanges became contentious over comparisons to the Great Recession and references to federal tax policy. The meeting ended with continued public testimony and no final vote taken in the portion provided, though leadership had earlier said the committee planned a mass roll-call vote on all the bills at the end.

Transcript Highlights:

• of our staff were to move to another agency, we also pull down a 32% federal match for all of our admin
• down a 32% Federal match for all<00:35:34.680> of<00:35:34.839> our<00:35:35.280> admin
• so<00:35:37.160> if<00:35:37.400> staff<00:35:37.680> were all of our admin
• um and so if staff were all of our admin um and so if staff were to<00:35:38.040> move<00:35:
• Turns out that the grants management office really just does more admin grants and sets, you know, writes

Bills: HF1, HF98

Keywords: Office of Inspector General, inspector general, legislative audit, fraud prevention, waste and abuse, public funds, grant oversight, state grants, grant management, whistleblower protection, retaliation, subpoena power, data practices, government transparency, accountability, law enforcement referrals, sanctions, debarment, payment withholding, public assistance fraud

Transcript Highlights:

• Representative Quam said, this bill is rather large, and so, which I understand because we'll have an admin
• which I understand because we'll<00:08:55.920> have<00:08:56.040> an<00:08:56.200> admin
• > too<00:08:57.680> um<00:08:58.320> but<00:08:58.440> I we'll have an admin
• Bill too um but I we'll have an admin Bill too um but I think<00:08:58.760> overall think overall
• Sections 11 and 12, I think, we also will cover in our admin bill.

Keywords: 1183, house

Transcript Highlights:

• We also recommended that the legislature direct Admin to develop recommendations for improving access
• :40.880> is<00:48:41.680> um<00:48:42.240> they<00:48:42.480> actually admin
• has said is um they actually admin has said is um they actually believe<00:48:43.480> that<00
• Um, and members, so, um, yes: the legislature in '23 did empower, um, admin really through the Office
• really through the office of admin really through the office of Grants<01:02:25.520> management

Keywords: 1183, house

Summary: The committee heard a presentation from State Auditor Judy Randall and Deputy Legislative Auditor Jody Mason Rodriguez on the Office of the Legislative Auditor’s 2023 report, “Oversight of State-Funded Grants to Nonprofit Organizations.” Randall explained that the report takes a broad look at how Minnesota manages grants, building on earlier work that helped lead to the Office of Grants Management (OGM) in 2007. She emphasized that the new recommendation-tracking booklet in members’ packets is meant to help the legislature see which audit recommendations have been implemented, partially implemented, or not implemented, and to support oversight rather than assign blame. Rodriguez summarized the report’s findings: Minnesota’s grants management policies contain many important practices, but they often lack enough detail for agencies to implement them consistently. The office found pervasive noncompliance in recent years and identified weak statutory enforcement as a major reason. She reviewed how grants flow from the legislature to agencies and then to nonprofit grantees and subgrantees, and noted that state agencies spent an average of about $514 million annually on nonprofit grants from fiscal years 2018 through 2022, awarding grants to about 2,400 nonprofits. The report found OGM policies partially reflected 17 of 24 recommended grant-management practices, but examples of missing detail included no required risk-based monitoring, no minimum standards for progress reports, telephone-only monitoring visits allowed, and no deadline for closeout reviews. The auditors said some recommendations have been acted on since the report, including 2023 statutory changes that led OGM to revise its pre-award financial review policy and set a timeline for closeout reviews, though other recommendations remain only partially implemented. They also discussed repeat compliance problems across agencies, including conflict-of-interest documentation, and said agencies are beginning to improve by automating checklists and disclosure processes. In response to member questions, the auditors said training is important and should likely be required for grants staff, though not necessarily with highly specific statutory language; they also said grant managers vary widely across agencies, making baseline training especially useful. No votes or formal committee actions were taken during the presentation, and the chair noted that OGM would be invited for a future presentation.

Transcript Highlights:

• .98, subdivision 14, which is a section that the finance committee is well aware of, that sets the admin
• <00:49:34.240> that<00:49:34.480> sets<00:49:34.800> the<00:49:35.200> admin
• <00:49:35.680> costs well aware of, that sets the admin costs well aware of, that sets the
• admin costs for<00:49:36.160> the<00:49:36.400> different<00:49:36.559> grant<00
• Um, so the bill itself, the A31 amendment, does set different admin percentages, most times lower

Keywords: 1187, senate, all

Transcript Highlights:

• This measure establishes uniform provisions for the assessment of administrative penalties under the
• under the state administrative penalties under the state ethics<00:27:10.679> code<00:27:11.320
• 00:34:19.520> kcoy members of the committee Bonnie kcoy members of the committee Bonnie kcoy admin
• administrator<00:34:20.960> for<00:34:21.079> the<00:34:21.159> state admin
• administrator for the state admin administrator for the state procurement<00:34:21.879> office

Keywords: 910, house, all

Summary: The House Committee on Judiciary and Hawaiian Affairs held its first hearing of the 33rd Legislature and heard several measures, beginning with HB 131, which would allow agencies to disclose government records to researchers for certain purposes and direct the Office of Information Practices to adopt uniform rules. OIP supported the bill, saying it would help researchers access government records, while DLNR questioned whether the bill was necessary, raised concerns about costs and exemptions, and suggested a definition change regarding media. The Public First Law Center and other supporters said the bill would not remove existing exemptions or create new disclosure requirements, but would simply authorize rulemaking to create a clearer process for research access. Common Cause Hawaiʻi raised concern about including news media in the measure. The chair emphasized that the rulemaking process would allow agencies and the public to work through details, and the committee moved on without a recorded vote in the transcript. The committee then heard HB 411, which would create uniform administrative penalty procedures under the state ethics code and lobbyist law, and HB 412, which would expand lobbying definitions to cover certain communications with high-level executive officials about procurement and make some contracts voidable if awarded through unethical lobbying. The Ethics Commission supported HB 411 as an efficiency measure that would streamline the charge process without changing substantive rights, while HB 412 was described as a narrow transparency measure modeled on other states. The State Procurement Office warned that voiding contracts could cause delays, warranty issues, third-party complications, and higher reprocurement costs. The Ethics Commission responded that any contract revocation would be at the Attorney General’s discretion and likely reserved for egregious cases, and that the threat of voiding a contract would help deter noncompliance. The committee also heard HB 413, which clarifies that lobbyist campaign contribution prohibitions apply during periods when both houses of the Legislature are in session; the Ethics Commission and Campaign Spending Commission both supported the bill and the Ethics Commission requested amendments to clarify jurisdiction between state and county lobbyist enforcement. Finally, the committee took up HB 149, which would require domestic and foreign corporations to report independent expenditures and political contributions to shareholders. The only testimony noted in the transcript was written comments from Matson, which said the requirement would be expensive and cumbersome and that the information is already publicly available through existing campaign finance reporting websites. No votes or final committee actions on the bills were recorded in the provided transcript.

Transcript Highlights:

• question, $90,000 of it will be used for regranting, and the rest of it, 5%, goes to the state for admin
• , 5% goes to CAL for admin, and the rest of it goes to pay for our interpreters as well as our financial
• <00:13:59.560> 5% it 5% goes to the state um for admin 5% it 5% goes to the state um for admin
• <00:14:02.880> and<00:14:03.000> the goes to the uh to Cal for admin and the goes to
• the uh to Cal for admin and the rest<00:14:03.320> of<00:14:03.399> it<00:14:03.560>

Keywords: 1187, senate, all

Transcript Highlights:

• So these are some admin funds that are available from the federal government to help defray the cost
• So these are some admin funds that are available from the federal government to help defray the cost
• So these are some admin funds that are available from the federal government to help defray the cost
• So these are some admin funds that are available from the federal government to help defray the cost
• So these are some admin funds that are available from the federal government to help defray the cost

Keywords: 928, house, all

Summary: The House Finance Division 3 work session opened with routine announcements, including new and absent members, a tribute to former chair Rep. Jess Edwards, and an explanation that Division 3 is advisory and will make recommendations to full Finance. Chair Mooney also distributed a self-created index to the budget binder and reviewed the committee’s options under House Rule 45. Members discussed scheduling a future visit to the Veterans Home in Tilton, with several October dates unavailable, and the chair said she would circulate possible dates. The committee also reviewed the second-year budget context and sources of funding, including surplus monies, existing and new revenue streams, grants, reappropriations, and the rainy day fund. The committee then took up several retained bills and repeatedly heard that their substance had already been addressed in the budget. House Bill 519, funding the Waypoint Youth and Young Adult Shelter, was moved ITL and passed 10-0. House Bill 547, county reimbursement funds, was also moved ITL and passed 10-0 after members noted the reimbursement had been included in HB 2. House Bill 570, repealing the prescription drug affordability board, was moved ITL and passed 10-0, with minority members saying they still believed the board had value but acknowledging the repeal had already occurred in HB 2. House Bill 704, concerning caregiver respite and senior volunteer programs, received the most discussion. Mr. Ripple explained that most items were already funded or suspended in the budget, leaving only the senior volunteer grant program unfunded. Chair Mooney offered amendment 2963H to fund the RSVP program at $180,000 for one year, contingent on surplus funds, and DHHS witnesses explained that RSVP is a federally funded AmeriCorps program that would be added to existing state licensing structures. The amendment was adopted unanimously, and the bill was reported ought to pass as amended on a 10-0 vote. The committee then heard House Bill 751, which would require licensure of outpatient substance use disorder treatment facilities and create an ombudsman-related complaint process. DHHS witnesses said the bill had been narrowed substantially from an earlier certification model with multiple positions and IT costs to a licensing model using existing department infrastructure, reducing the fiscal note to $211,000 for one position. They also said the ombudsman section was no longer needed because licensed facilities would fall under existing oversight. Members questioned how many facilities exist and whether licensing fees would cover costs; DHHS said it did not know the full provider landscape and that licensing revenue across the board does not cover the department’s costs. Rep. Daniels then proposed amendment 2964H to form a study committee because of the remaining questions and lack of a clear revenue stream, and the committee was still discussing that amendment when the transcript ended.

Transcript Highlights:

• group made up of the key state agencies, legislators, and stakeholders, including the Department of Admin
• stakeholders, including the<00:00:56.320> Department<00:00:56.800> of<00:00:56.920> Admin
• ,<00:00:57.360> Department<00:00:57.800> of the Department of Admin, Department of
• the Department of Admin, Department of Natural<00:00:58.240> Resources,<00:00:59.040> Historical

Keywords: 1187, senate, all

Transcript Highlights:

• the different pilots and programs is share with each other how we're figuring out ways to lower that admin
• So again, these are ways that we can address this new way of funding transportation and lower those admin
• So again, these are ways that we can address this new way of funding transportation and lower those admin
• One of the challenges for a RUC program is keeping the admin costs low.

Summary: The Assembly Transportation Committee first took up three highway naming resolutions on its consent calendar: ACR 109, SCR 78, and SCR 90. The committee approved the consent calendar with 11 aye votes and no no votes, then adjourned the bill-hearing portion. Members also recognized committee science fellow AJ Mendeola for his service, noting his contributions to bill analysis and staff support. The committee then held an informational hearing on alternatives to the gas tax, focused on the projected decline in fuel-tax revenue and the need for a more sustainable transportation funding model. The chair and invited experts described how inflation, improved fuel efficiency, and growth in electric and other alternative-fuel vehicles are eroding gas-tax revenues. Presenters from the National Conference of State Legislatures and the University of California discussed state options such as higher or indexed gas taxes, EV registration fees, road usage charges, delivery fees, public EV charging fees, transportation network company fees, and managed lanes, emphasizing tradeoffs among revenue adequacy, fairness, administrative cost, and public acceptance. Committee members raised concerns that mileage-based fees or EV fees could function as new taxes on commuters and lower-income drivers, especially if the gas tax is not repealed. Presenters responded that road usage charges are generally intended as replacements for the gas tax, not additions, and argued that mileage-based systems better preserve the user-pays principle while being less tied to vehicle fuel efficiency. They also noted that flat EV registration fees are easy to administer but can be less equitable because they are not linked to actual road use. Officials from Hawaii, Utah, and Oregon described their state programs and policy choices. Hawaii said its new road usage charge began July 1, 2025, for EVs, offers a choice between a per-mile charge and a flat annual fee through 2028, and will transition to mandatory EV participation before expanding to all light-duty vehicles by 2033. Utah described its voluntary EV road usage charge program, quarterly reporting, privacy protections, and legislative scenarios for removing the cap or making participation mandatory. Oregon outlined its constitutional cost-responsibility framework and broader transportation funding challenges, including reliance on user fees and limited use of general-fund support.

Transcript Highlights:

• Is there a penalty for that violation?
• something, and this doesn't include any of those penalties.
• And this doesn't include any of those penalties.
• I could do this, but this might be the penalty.
• penalty.

Keywords: 908, all

Transcript Highlights:

• It's also going to prioritize those dollars so that if any interest gains are made, it goes to the admin
• It's also going to prioritize those dollars so that if any interest gains are made, it goes to the admin
• made, it<00:27:14.799> goes<00:27:15.120> to<00:27:15.279> the<00:27:15.440> admin
• fees<00:27:16.240> of<00:27:16.480> the<00:27:16.640> agency it goes to the admin
• fees of the agency it goes to the admin fees of the agency uh<00:27:18.159> before<00:27:18.960

Keywords: 919, house, all

Summary: The House took up House File 1141, the Minnesota Housing Finance Agency supplemental budget bill. Representative Howard described it as a bipartisan housing package aimed at addressing Minnesota’s housing shortage by funding housing infrastructure bonds, Greater Minnesota workforce housing, homeowner education, a senior housing pilot, and family homelessness assistance and prevention. He said the bill is budget-neutral, using unspent interest earnings and other redirected funds, and includes transparency and accountability reforms for MHFA. Several members spoke in support, emphasizing housing supply, affordability, and the need for more homes across the state. The main floor debate centered on the Norris A6 amendment and the Igo A1 amendment to it. Norris proposed changing rent-increase limits in low-income housing tax credit properties from area median income to the lower of area median income or the consumer price index, arguing that seniors on fixed incomes were being priced out as rents rose faster than Social Security COLAs. Igo’s A1 amendment instead would have preempted cities, counties, and townships from adopting or renewing rent control ordinances statewide, with supporters arguing rent control harms development and affordability. Opponents said the proposal had not been fully vetted in committee and that public subsidies justify rent limits. Both the A1 amendment to the amendment and the underlying A6 amendment failed on tied 67-67 votes. After the amendments were defeated, the bill received its third reading and further discussion. Howard and other supporters reiterated that the bill would help produce an estimated 2,000 to 2,200 housing units, with HIB-funded projects historically spread across the metro and Greater Minnesota. Members also highlighted the bill’s support for first-time homebuyers, manufactured housing, senior housing, and homelessness prevention. No final passage vote is shown in the transcript excerpt.

Transcript Highlights:

• written informed consent prior to treatment, provides disciplinary authority, and establishes criminal penalties
• We also establish performance standards for managed care plans, introducing penalties for when those
• All the blue is their profit that they kept after expenses and after admin fees.

Summary: The committee first heard Senate Bill 1414 by Sen. Polsky on congenital cytomegalovirus (CMV) education. The bill would require the Department of Health, working with medical experts, to create and distribute CMV educational materials to expectant and new parents or caregivers through hospitals, birth centers, and OB/GYN practices. An amendment removed a section that would have required instruction for medical professionals, and the amended bill was reported favorably as a committee substitute. The committee then took up a block of confirmations. Appointees on tabs 2 through 7 were recommended favorably in one vote, and Chavon Harris was separately confirmed as Secretary of the Agency for Health Care Administration after extensive questioning. Senators praised her leadership and experience, while others raised concerns about Medicaid redeterminations, the state’s CORE modernization project, Hope Florida, and a DCF anti-marijuana ad campaign; Harris said she would follow up on some issues and defended the agency’s work on transparency, managed care oversight, and access to care. Her confirmation was recommended favorably, with Sen. Berman noting opposition. Several health-related bills were then heard and advanced. SB 186 by Sen. Garcia expanded epilepsy training requirements for school personnel, including charter school bus drivers, and was reported favorably. SB 902 by Sen. Garcia, after amendments narrowing dental workforce provisions and allowing certain seizure rescue medication delegation to family home health aides, was reported favorably; testimony focused on medical marijuana regulation, practitioner accountability, and concerns about park and child-care proximity restrictions. SB 196 by Sen. Sharif created a uterine fibroid research database with privacy protections and was reported favorably after emotional testimony from a patient and supporters. SB 688 by Sen. Rodriguez would reestablish licensure of naturopathic doctors; it drew both support and skepticism about diagnosis and treatment boundaries, but was reported favorably. SB 1574, Maddie’s Law, would add biliary atresia screening to newborn screening and was strongly supported by parents describing a delayed diagnosis; it was reported favorably. SB 878 on clinical laboratory personnel, SB 1092 on podiatric medicine and certain cellular/tissue-based products, and SB 1032 on medical marijuana registry timelines and veteran fee waivers were also reported favorably, while SB 1032 drew debate over longer renewal/supply periods. The committee then began SB 1760 on Medicaid oversight and program transparency, with the sponsor describing the bill’s creation of a joint legislative oversight committee and a legislative actuary.

Transcript Highlights:

• What we will do is make a motion for any of the options that we have for the penalty phase, and then
• um and a recommendation for the penalty um and a recommendation for the penalty and<00:22:33.360
• <00:28:44.559> Our<00:28:45.039> uh penalties in New Hampshire.
• Our uh penalties in New Hampshire.
• Admin. This is the wrong place.

Keywords: 1189, house, all

Transcript Highlights:

• 56.240> our change um and uh it also appears in our change um and uh it also appears in our admin
• 19:56.919> bill<00:19:57.760> um<00:19:58.039> we<00:19:58.360> really admin
• bill um we really admin bill um we really uh<00:19:59.880> do<00:20:00.159> want<00:20
• says, you know, that subdivision 7 of that statute says use of intoxicating liquor, prohibition, penalty
• says, you know, that subdivision 7 of that statute says use of intoxicating liquor, prohibition, penalty

Keywords: 1183, house

Transcript Highlights:

• One thing was, yeah, on that slide, if you go back, in parentheses, it says, including admins.
• So one of the things about the piece... ...says, including admins.

Keywords: 995, all

Summary: The subcommittee met with MassHealth LTSS Chief Leslie Darcy to review the Personal Care Attendant (PCA) program and the legislative work group focused on its long-term sustainability and cost containment. Darcy and Charlie described the work group’s five meetings and three consensus recommendations: enforce the 66-hour overtime cap, address fraudulent activity in the PCA program, and eliminate MassHealth handling of PCA paperwork/administrative work for members without a live-in exemption because those members are subject to EVV. They explained EVV as an electronic visit verification system replacing paper timesheets, and noted the rollout is expected to be completed this fall. The group estimated about $7 million in savings from the consensus recommendations and agreed to continue meeting through June to consider additional ideas. Darcy presented data showing the PCA program served about 56,000 members in state fiscal year 2024 and has grown from $1.2 billion in FY20 to $1.6 billion in FY24, with projections near $2 billion by 2027. She said much of the growth is driven by wage increases and older adults using more services, and compared PCA costs with other LTSS programs. The discussion also covered overtime spending, the role of federal financial participation, and how Massachusetts’ PCA program differs from other states because it has no hard caps on hours or activities. Several members emphasized the program’s value for independent living and community participation, while also acknowledging the need to control growth without undermining services. Members asked about undocumented immigrants and MassHealth funding, and Darcy explained that some eligibility categories are state-funded only and do not receive federal matching funds. Another member asked about workforce recruitment and wage pressures; Darcy said recent collective bargaining agreements raised PCA wages, with some workers eventually reaching $25 per hour and the entry wage reaching $20. The group also discussed whether IADL hours are disproportionately high compared with ADL needs, and reviewed data suggesting potential savings if IADL hours were limited relative to ADL hours, though no consensus recommendation was made on that point. The meeting ended with approval of the prior minutes by roll call vote, an update that the next health equity informational hearing is scheduled for May 19, and a motion to adjourn carried unanimously.

Transcript Highlights:

• And so with mine, day-to-day is I still have to handle the admin side, excuse me, the admin side.

Keywords: 1204, all

Transcript Highlights:

• Number one, we have 5% that's going to go off the top for central services and admin expenses. get this
• This is one of DO's admin bills, so it is in our package.
• Another admin bill as well.
• Another<01:05:36.880> admin<01:05:37.359> bill<01:05:37.680> as<01:05:37.920>
• <01:05:38.400> This Another admin bill as well. This Another admin bill as well.

Bills: HB1709, HB2195, HB2023, HB2031, HB2033, HB1937, HB2586, HB2575, HB2038, HB2030

Keywords: water carriers, transportation, public utility, Department of Transportation, liability, agricultural rates, certificates of convenience, cruise ship, passenger head fee, harbor, capital improvement, funding, environmental impact, active intelligent speed assistance, intelligent speed assistance, speed limiter, speed limiting device, speed governor, vehicle telematics, traffic safety

Summary: The joint committees on Transportation, Labor and Technology, and later Transportation and Economic Development and Tourism, heard several bills. SB 2573 would allow administrative driver’s license revocation hearings to be held by interactive conference technology such as Zoom and permit electronic exchange of evidence. The chief adjudicator for the ADLRO supported it as a non-mandatory option that has worked well since 2021, improving attendance and saving time and money; DOT also supported it. The committees voted to pass SB 2573 with technical, non-substantive amendments. SB 3215 would make permanent the requirement that securing mooring lines at commercial docks be performed by labor subject to collective bargaining by repealing the sunset date in existing harbor safety law. DOT did not submit testimony, and the chair noted support from longshore labor. The committees voted to pass SB 3215 unamended. The committees also heard SB 2693, which authorizes $15 million in general obligation bonds for planning, design, and construction of a 50,000-square-foot aerospace hangar and related facilities at Hilo International Airport. A Phoenix Space executive testified in support, saying Hawaii and Hilo have geographic advantages and that the project could support aerospace investment and jobs; several other organizations and individuals submitted supportive testimony. Committee members questioned whether federal matching funds or airport capacity existed, and DOT said it had no assurance of federal participation and would need to check on capacity and potential users. The hearing then moved to SB 2698, which would create a cruise ship special fund and impose a per-passenger head fee on cruise ships docking in state commercial harbors while repealing the existing cruise ship TAT framework effective January 1, 2026. DOT supported the bill but requested amendments to clarify that the new fee is in addition to existing passenger, port entry, and dockage fees and to raise the fee from $6.50 to $10; DOT said the higher amount would better fund harbor improvements such as shore power. Norwegian Cruise Line Holdings testified in support but said the added fee would significantly increase costs, while a local ship supply business supported the cruise industry and opposed the TAT approach, saying cruise activity benefits local farmers and jobs. No final vote on SB 2698 was taken in the excerpt provided.

Transcript Highlights:

• Just remind you previous slide was a Just remind you that<00:10:36.120> was<00:10:36.400> admin
• <00:10:37.720> This<00:10:37.960> is that was admin and benefits.
• This is that was admin and benefits.
• So, there will be an expense on the admin side. So, I just wanted you to be aware of that.

Keywords: 958, all

Summary: The Budget Review Subcommittee for Health and Family Services met for its first meeting, established quorum, and heard a presentation from Department for Medicaid Services Commissioner Lisa Lee and CFO Steve Becktold. The department reviewed its compliance with House Bill 695, which requires legislative approval before certain Medicaid eligibility, service, benefit, or waiver changes, along with fiscal impact reporting to the Legislative Research Commission. They described current waivers, including home and community-based waivers, managed care and transportation waivers, and the 1115 re-entry waiver, and said the community engagement waiver is in public comment and on track for submission to CMS. They also said required reports and other HB 695 tasks, including a pharmacy rebate fund, budget analyses, expenditure reports, and a behavioral health scorecard, are underway or completed as required. The CFO outlined Medicaid’s budget, saying the department has two appropriation units and projecting near-full use of state funds while leaving some federal funds unspent because of matching-rate differences. They reported roughly 211 filled positions and 11 vacancies. Members asked about the vacancy makeup, the behavioral health scorecard, and whether a provider involved in quality metrics could have a conflict if used in the scorecard process; the department said it would follow up. Members also asked about the community engagement waiver and its interaction with federal policy, and the department said CMS guidance is still pending and that it will proceed under HB 695. A substantial portion of the discussion focused on federal Medicaid policy changes under a reconciliation bill, including possible limits on provider taxes, directed payments, cost-sharing, and community engagement requirements. Department officials said the final federal impact is still uncertain because the Senate bill is not finalized, but they have modeled several scenarios and warned that any reduction in federal support or benefits would be harmful, especially for hospitals and rural hospitals. They estimated Medicaid benefits are funded about 80% federal and 20% state overall, with expansion populations closer to 90% federal funding, and said administrative costs would also rise if federal requirements change. Members also asked about work requirements and eligibility. The department said the community engagement waiver would mainly affect the expansion population, which they estimated at about 450,000 people out of roughly 1.5 million total Medicaid enrollees, and that many groups are exempt, including children, the aged, blind, disabled, and people in substance use disorder treatment. Officials said they can provide data on how many enrollees are working or work-ready and explained that their eligibility system is designed to prevent duplication by automatically placing people in the correct category and correcting errors quickly. They also noted a federal proposal to require expansion eligibility reviews every six months, compared with current annual renewals.

Transcript Highlights:

• I want to say that we have a couple of admin staff that are in the mid-forties.
• So we have a couple of admin staff that are mid-forties, burdened without doing this review.
• Our former HR person was kind of low-level admin, shuffling papers, and we used, omemeS, HSM.

Keywords: 914, all