Video & Transcript Research : 'NAICS'

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MN

Minnesota 2025-2026 Regular Session

Committee on Commerce and Consumer Protection - 01/23/25

Commerce and Consumer Protection

Transcript Highlights:
  • member<00:37:05.800> uh<00:37:06.119> of<00:37:06.560> the<00:37:06.720> NAIC
  • <00:37:07.560> as<00:37:07.680> the we're the member uh of the NAIC as the we're the
  • member uh of the NAIC as the insurance<00:37:08.240> regulator<00:37:08.839> but<00:37
Keywords: 1187, senate, all
AZ

Arizona 2026 Regular Session

03/16/2026 - Senate Finance

Finance

Transcript Highlights:
  • domesticated insurers couldn't qualify under the statute, so we clean that up so that it reflects the NAIC
Summary: The committee first approved the March 9, 2026 minutes and held House Bills 29 and 2939 at the sponsor’s request. It then took up House Bill 2016, which would eliminate the late-filing penalty for taxpayers with zero income tax liability; after discussion about whether taxpayers still need to file to establish that they owe nothing, the committee adopted an amendment narrowing the bill to income tax filers and passed the bill 4-3. The Department of Revenue said it was neutral on the bill but supported the amendment. The committee next heard House Bill 2289, which updates the property-value examples used in bond/override election pamphlets and truth-in-taxation notices from older low values to $300,000. Supporters said the figures are outdated and should better reflect current home values; opponents questioned whether $300,000 was the best benchmark and whether adding another example would confuse voters. The bill passed 4-3. The committee also approved House Bill 4103, which bars school districts from calling bond elections if enrollment is below 50% of capacity. Supporters argued districts should use or monetize excess space before asking taxpayers for more debt, while school administrators and others said the measure would block needed maintenance, safety upgrades, and local decision-making. It passed 4-3. Two related agricultural property bills, House Bills 2104 and 2105, were both amended and passed 4-3. HB 2104 creates a four-year period after a successful agricultural property tax appeal during which assessors generally may not reclassify or reinspect the property absent changes in use, ownership, splits, or improvements. HB 2105 requires advance notice of inspections and inspection reports and provides a three-year inspection exemption after the most recent inspection, with similar exceptions. Farm and ranch groups said the bills provide fairness and certainty after successful appeals; county assessors opposed them as limiting oversight and creating unequal treatment. The committee also passed House Bill 2256 unanimously, which sets notice and title procedures for salvage auction dealers when insurance claims are denied or unpaid, and House Bill 2979 unanimously, which updates credit union regulatory timelines and procedures. Later, the committee passed House Bill 2996 unanimously, clarifying that certificates of insurance are informational only and cannot expand coverage or rights, with penalties for misrepresentations. It also heard House Bill 2174, which renames and updates regulation of insurance modeling and data organizations, requires model filings, and revises related reinsurance provisions; the discussion focused on how DIFI would regulate models versus the companies that create them, but no vote was taken in the portion provided. Finally, House Bill 2477 was introduced to conform Arizona’s 529 plan to federal law by increasing the K-12 withdrawal limit to $20,000, adding post-secondary credentialing expenses, and allowing rollovers to ABLE accounts and Roth IRAs if requirements are met; the sponsor and Treasurer’s Office supported it as a cleanup/conformity measure, and discussion began on how the new rollover options would work.
NH

New Hampshire 2025 Regular Session

House Ways and Means (01/27/2025)

Transcript Highlights:
  • independent and do things our own way that best work for our state and our constituents, but again, the NAIC
  • <03:17:35.319> but<03:17:35.520> again<03:17:35.920> the<03:17:36.080> NAIC
  • and our constituents but again the NAIC and our constituents but again the NAIC helps<03:17:36.960
Keywords: 1189, house, all
Summary: The meeting featured presentations from the Department of Administrative Services and the Treasury Department on state revenue reporting and unclaimed property. State Comptroller Dana Call explained DAS’s role in compiling statewide revenue reports, including the annual revenue plan set through the budget process and the monthly revenue focus reports that track cash receipts. She noted that unrestricted general fund revenue is about $2 billion annually, while miscellaneous other revenue is a much smaller and less predictable category, averaging roughly $30 million to $32 million a year. She also described two more material internal revenue lines: statewide indirect cost recoveries and post-retirement benefit recoveries, which are billed to agencies and often tied to federal reimbursement rules. Members asked about the interest line in the revenue charts and about how the figures were presented, and Call clarified that the totals were in millions and that the interest item would be explained by the Treasurer. She also explained that the indirect cost and post-retirement recoveries are internal cost allocations that flow back into the unrestricted revenue pool and are reflected in agency budgets as interagency costs. Treasurer Monica Meissner then outlined Treasury Department functions, including bank deposits, statewide disbursements, banking relationships, investments, debt management, compliance, the FONA College Savings Program, the ABLE Plan, scholarship programs, and the abandoned property program. In discussing unclaimed property, she said holders report property after a five-year dormancy period, the state uses automated systems and outreach to locate owners, and claim activity has increased. In fiscal year 2024, the state returned about $12.2 million to citizens through roughly 12,000 claims; over the last 10 years, about $72.6 million has been returned. She also said the state escheated $19.9 million to the general fund and $1.8 million to counties last year, and explained that securities-related proceeds are harder to estimate because they depend on market conditions. No votes or formal actions were taken.
NM

New Mexico 2025 Regular Session

House - Judiciary Mar 19th, 2025

House Judiciary

Transcript Highlights:
  • That are recommended by the NAIC.
MA

Massachusetts 2025-2026 Regular Session

Joint Committee on Financial Services Jun 21st, 2026 at 10:30 am

Joint Committee on Financial Services

Transcript Highlights:
  • It's based on a model from the NAIC.
Keywords: 995, all
Summary: The Joint Committee on Financial Services held a public hearing with about 43 witnesses and a 1:00 p.m. hard stop, and the chair repeatedly asked speakers to keep testimony to three minutes. Much of the hearing focused on S. 747/H. 1336, which would extend paid family and medical leave and unemployment insurance to graduate student workers. Supporters included legislators, union leaders, graduate workers from MIT, Harvard, BU, WPI, UMass Lowell, and others, and legal advocates. They argued graduate workers perform full-time teaching and research work, pay taxes, and should not be excluded from basic safety-net benefits; several witnesses described personal hardships involving childbirth, serious illness, mental health crises, funding cuts, or fear of losing income. Testifiers also said the change would be revenue-neutral or revenue-generating and would not create major administrative burdens for universities, which already provide similar benefits to other employees. The committee also heard testimony on insurance-related bills. Christopher Stock of the Massachusetts Insurance Federation supported H. 1113 on public adjusters and H. 1345/S. 753 on flood-zone notifications for homebuyers, but opposed H. 4112, which would add a $2 surcharge on home insurance policies to fund fire cistern programs. The Metropolitan Area Planning Council strongly supported H. 1345, saying flood disclosure is needed because Massachusetts lacks statewide flood-notification requirements and flooding risks are increasing. Karen Alvarado supported H. 4352 on travel insurance, and John Fielding supported H. 1186 on pet insurance; both said the bills would create uniform regulatory frameworks and consumer protections. Rep. LeBoeuf testified for H. 4061 on workers’ compensation premium fraud, describing the bill as a transparency measure to combat fraud in construction by creating a public certificate-of-insurance database and QR-code verification system. Joe Bright of the carpenters’ union also supported H. 4061, citing fraud, misclassification, and the harm to injured workers. The hearing also included testimony on H. 4112, a bill to create a statewide fire suppression water resource fund and cistern program. Rep. Hogan and a Stowe fire chief described drought, brush fires, and the need for dedicated cisterns in communities without municipal water systems, saying the tanks provide reliable water for firefighting and are relatively low-tech once installed. Committee members asked questions about tank capacity, siting, maintenance, and funding. No votes or formal actions were taken during the hearing.
NM

New Mexico 2025 Regular Session

IC - Courts, Corrections and Justice Nov 7th, 2025

Courts, Corrections & Justice Committee

Transcript Highlights:
  • This is less than the average, according to the NAIC, which makes sense when you think about it.
DE

Delaware 2025-2026 Regular Session

Senate Environment, Energy & Transportation Committee Meeting Jun 23rd, 2026

Environment, Energy & Transportation

Transcript Highlights:
  • the Senate amendment fixes it by including facilities that use 30 megawatts or greater, meeting the NAICS
Summary: The committee heard several bills focused on energy, public safety, and environmental cleanup. House Bill 455 would create a historic preservation license plate to raise funds and awareness for Delaware preservation efforts, and House Bill 471 would tighten rules and penalties for off-highway vehicles on shared private roads, with golf carts excluded. House Substitute No. 1 for House Bill 439, the Truth in E-Bike Marketing Act, would require clearer disclosures when selling electric mopeds and electric motorcycles so consumers understand classification, power, and licensing/insurance requirements. House Substitute No. 1 for House Bill 407, related to the Hazardous Substance Cleanup Act and brownfields, would shift funding for brownfield cleanup from the original realty transfer tax approach to a dedicated share of the hazardous substance cleanup fund and raise civil penalties for fraudulent acts. The committee also approved the June 18, 2026 minutes once quorum was reached. Most of the meeting centered on House Substitute No. 1 for House Bill 233, as amended, a large-load/data center bill intended to protect ratepayers from costs tied to massive new electricity users. The sponsor and Public Advocate said PJM’s warnings about a coming reliability backstop auction made it urgent to establish a Delaware framework now, requiring large energy users to sign utility agreements, cover their share of transmission, distribution, and capacity costs, and comply with curtailment and other protections. Supporters from environmental groups and some labor and business voices said the bill was needed to prevent cost shifts to households and small businesses, while opponents argued it was being rushed, could deter investment, and might unintentionally affect other industries; several asked for more time and clearer definitions. No vote was taken in the portion provided. The committee also took up House Bill 470, which would authorize Delmarva Power, with PSC approval, to build and operate utility-owned battery storage and spread costs across the customer base. The sponsor and Delmarva said the bill would improve reliability quickly and help avoid outages, while the chair expressed concern that the state had not yet fully studied whether utility-owned or competitively procured storage is the best model, noting a recent SEU storage study and broader policy questions. Supporters said utility storage could be deployed faster and help with peak shaving, while others urged a competitive process; the transcript cuts off before any final action on HB 470.
VT

Vermont 2025-2026 Regular Session

House Session - 2026-01-15 - 3:00PM

Vermont House Floor Meeting

Transcript Highlights:
  • proposed amendment instead requires risk retention groups to file annual and quarterly statements in the NAIC
Keywords: 926, house, all
Summary: The House opened with devotional remarks from Representative Greer focused on perspective, kindness, and the idea that people “earn” respect and love through shared humanity. After that, the chamber suspended rules to introduce 17 House bills by number only, and adopted JRS 3 in concurrence, setting a joint assembly for Tuesday, January 20, 2026 at 1:00 p.m. to receive the governor’s budget message. Several announcements followed, including birthday wishes, a note about the new federal whole milk for schools law, guest introductions, and caucus notices. The House also approved committee transfers for H.393, an act relating to the prohibition of requiring face masks in schools, moving it from Education to Healthcare, and H.334, an act relating to limiting employer restrictions on individuals separating from employment, moving it from General and Housing to Commerce and Economic Development. The chamber then took up H.649 on captive insurance companies. The Commerce and Economic Development Committee explained that the bill, based on Department of Financial Regulation proposals, would prohibit risk retention groups from lending to or investing in members or affiliates, require annual and quarterly filings in NAIC form with a jurat page and actuarial certificate, and create new filing requirements for sponsored captive protected cells. The committee reported unanimous support, and the House amended the bill and ordered third reading. The House next considered S.60, establishing a Farm Security Special Fund. The Agriculture, Food Resiliency, and Forestry Committee and Appropriations described the bill as a response to repeated weather-related losses affecting farms and forestry operations, including flooding, freezes, drought, and other extreme events. The House version adds forestry and changes assistance from grants to payments to make aid faster and less cumbersome. The program would be administered by the Agency of Agriculture, Food and Markets, with a review board and payments of up to 50% of uncovered losses, capped at 5% of annual appropriations and $150,000 per application. The committee testimony emphasized the need for a permanent, predictable state relief mechanism, and the bill was advanced with strong support.
TX

Texas 89th Regular

Business and Commerce May 15th, 2025

Business & Commerce

Transcript Highlights:
  • We've updated it even more, and then in 2021, NAIC updated their model legislation to try to encourage
Summary: The committee first handled pending business, including reconsidering SB 715 and then voting out several measures. The committee substitute for SB 1978 was reported favorably, and HB 431, HB 1522, HB 1922, HB 3228, HB 3229, HB 3803, HB 3804, HB 3805, HB 3806, HB 4219, HB 4238, HB 434, HB 1584, and HB 4739 were all reported favorably, many with objections sent to the local and uncontested calendar. HB 1522 and HB 4238 were adopted as committee substitutes before passage. The committee then moved into public testimony on HB 2963, a right-to-repair bill for consumer electronics. Supporters argued it would reduce waste, lower costs, and help independent repair shops by requiring manufacturers to provide parts, tools, and information on fair terms, while opponents said the bill was too broad and the automotive MOU exemption was problematic. The bill was left pending after testimony. The committee also heard HB 2467, which would align State Fire Marshal Office investigators’ pay with other commissioned peace officers at TDI; testimony was strongly supportive, emphasizing the office’s arson-investigation role, and the bill was left pending. HB 252, a bill allowing certain state agencies flexibility to pay Schedule A employees twice monthly, was laid out and left pending after limited testimony. HB 2468, dealing with public improvement district notice in real estate transactions, would let buyers terminate within seven days if required PID notice was not provided before contract execution; it drew no public testimony and was left pending. HB 4386, an annuity exchange and surrender process bill, was presented as a consumer-protection measure with deadlines and penalties for insurer delays; it received support from industry witnesses and was left pending. The committee then heard HB 4751, creating the Texas Quantum Initiative within the Governor’s Office to coordinate quantum research, workforce, industry partnerships, and possible future grant funding. Witnesses from universities and industry supported the bill, while several senators questioned whether a new state structure was necessary; the bill was left pending. HJR 175 proposed a constitutional amendment protecting Texans’ right to use mutually agreed forms of exchange, including cash, bullion, digital currency, or private script, and was discussed at length in the context of central bank digital currency and barter; it was left pending after testimony. HB 2221, updating insurance anti-rebating laws to allow wellness and value-added services, drew supportive testimony from the insurance industry and discussion about incentives versus monitoring; it was also left pending. Finally, the committee heard a series of utility wildfire and infrastructure bills: HB 106, requiring oil and gas operators to maintain certain electrical infrastructure near well sites; HB 144, requiring electric utilities to submit pole inspection and management plans to the PUC; and HB 145, requiring wildfire mitigation plans and allowing self-insurance under certain conditions. Utility, insurance, and cooperative witnesses generally supported the wildfire-related bills while asking for clarifications and less burdensome reporting, and the bills were left pending.
TX

Texas 89th 2nd C.S.

Business and Commerce May 15th, 2025

Business & Commerce

Transcript Highlights:
  • We've updated it even more, and then in 2021, NAIC updated their model legislation to try to encourage
Summary: The committee first handled pending business, including reconsidering a failed vote on SB 715 and then reporting several measures favorably. SB 1978 was reported from committee on a committee substitute, and a series of House bills — including HB 431, HB 1522, HB 1922, HB 3228, HB 3229, HB 3803, HB 3804, HB 3805, HB 3806, HB 4219, HB 4238, HB 434, HB 1584, and HB 4739 — were moved out of committee, most to the local and uncontested calendar. The votes on these items were overwhelmingly or unanimously in favor, with committee substitutes adopted where applicable. The committee then heard HB 2963, a right-to-repair bill for consumer electronics. The author said the bill would require manufacturers to provide parts, tools, and documentation on fair and reasonable terms while preserving trade secrets and excluding certain categories such as medical devices, motor vehicles covered by an MOU, critical infrastructure, and commercial-only transactions. Supporters from the Texas Public Policy Foundation and Environment Texas argued it would strengthen property rights, help small businesses, and reduce e-waste. Opponents, including representatives of SafeLight Auto Glass and LKQ, said they supported right-to-repair in principle but objected to the bill’s automotive MOU exemption and broader scope, warning it could create uncertainty and leave some manufacturers and repair shops outside the framework. The bill was left pending after testimony. Members also heard HB 2467 on salary parity for State Fire Marshal investigators, HB 252 on allowing some state agencies to pay certain employees twice monthly, HB 2468 on public improvement district notice and a buyer’s right to terminate, HB 4386 on annuity contract exchanges and surrender timelines, HB 4751 creating a Texas Quantum Initiative and related fund, and HJR 175 proposing a constitutional amendment protecting Texans’ ability to use mutually agreed-upon mediums of exchange, including cash, bullion, and digital currency. Testimony on HB 4751 was largely supportive but included questions about whether the state needs a new coordinating structure and funding mechanism for quantum research and commercialization. HJR 175 drew discussion about barter, taxes, and concerns over central bank digital currency. Each of these items was left pending after hearing testimony. The committee also heard HB 2221, which would update insurance anti-rebating laws to allow more wellness and value-added services in life and health insurance, with supporters saying it would encourage healthier behavior without requiring data monitoring. Finally, the committee took up a package of utility and wildfire-related bills from Chairman King’s portfolio: HB 106, requiring oil and gas operators to maintain certain overhead electrical lines; HB 144, requiring utilities to submit pole inspection and management plans to the PUC; and HB 145, requiring wildfire mitigation plans and allowing utilities to self-insure under certain conditions. Utility, co-op, and insurance representatives generally supported the safety and resiliency goals of HB 144, while asking for clarifications and less frequent reporting; HB 145 was introduced as a broader wildfire-risk and liability measure. These bills were also left pending after testimony.
ND

North Dakota 2026 1st Special Session

Health Care Committee Feb 12th, 2026 at 09:30 am

Transcript Highlights:
  • There is an NAIC model law that you could use to ensure that.
Keywords: 908, all
Summary: The committee met to review the history and current treatment of North Dakota health insurance mandates, with presentations from Blue Cross Blue Shield of North Dakota, Sanford Health Plan, the Public Employees Retirement System (PERS), and the Insurance Department. The discussion focused on how mandates apply differently to fully insured, self-funded, ACA, Medicaid, and PERS plans; how the state’s benchmark plan and federal essential health benefits affect coverage; and how the existing process requires cost-benefit analysis and, for certain measures, a PERS pilot period before broader application. Presenters also reviewed the long list of existing state mandates, including provider, beneficiary, and coverage requirements, and noted that many were enacted decades ago and have not been revisited despite changes in medical evidence and treatment options. Witnesses from the carriers argued that mandates should be reviewed periodically because some are outdated, can create unintended costs, and may not align with current medical guidance. Examples cited included PSA screening, off-label drug coverage, prior authorization rules, step therapy, and cost-sharing provisions for mental health and substance use treatment. They emphasized that carriers often cover services without a mandate when supported by clinical evidence, and that mandates can shift costs to employers and employees, especially in the fully insured small-group market. They also suggested possible policy improvements such as clearer mandate definitions, better transparency around cost-benefit analyses, a regular 10-year review of mandates, and more timely submission of proposals through the interim process. PERS and the Insurance Department highlighted a recurring tension over what counts as a mandate and when a measure triggers the state’s defrayal obligation under federal law. PERS described its interim committee process, the April 1 deadline for fiscal-impact proposals, and the limited pilot program used for certain measures, noting that only a few bills have gone through the full pilot process. The Insurance Department explained that it views new benefit mandates through the lens of the ACA benchmark plan and essential health benefits, distinguishing true new benefits, such as infertility coverage, from changes to existing benefits, such as telehealth or insulin cost-sharing caps. No votes were taken on policy changes; the meeting was informational, with members asking questions about costs, applicability, transparency, and whether a periodic mandate review should be established.
MA

Massachusetts 2025-2026 Regular Session

Joint Committee on Economic Development and Emerging Technologies Jun 21st, 2026 at 12:30 pm

Joint Committee on Economic Development and Emerging Technologies

Transcript Highlights:
  • But when you pull NAICS codes, the data showed we lost about 1,000 jobs last year and about 800 year
Keywords: 995, all
Summary: The committee on Economic Development held a hearing on the DRIVE Act, a proposal to invest $400 million in Massachusetts research and innovation without new taxes. Governor Healey and administration officials said the bill would direct $200 million to public higher education research and regional partnerships and $200 million to a research funding pool for hospitals, universities, and other institutions, with the goal of retaining talent, leveraging private and philanthropic dollars, and offsetting major federal R&D cuts. They argued that research is a core economic engine for the state, supporting jobs across labs, construction, services, and surrounding businesses, and said the bill would help protect the Commonwealth’s tax base and competitiveness during a period of federal uncertainty and cuts to SNAP, Medicaid, and other programs. Committee members raised concerns about whether Fair Share surtax dollars should instead be used for K-12 and other community needs, whether the proposal is enough given the scale of lost federal grants, and how the money would be allocated. The governor responded that the funds are one-time surplus dollars, that most surtax revenue already supports education, and that the bill is meant as a bridge to stabilize public higher education and research. She also said the legislation includes a review board and could support a revolving or matched-fund approach in some cases. Several members pressed for more detail on selection criteria, future funding, and whether private companies and large endowments should contribute more. University of Massachusetts leaders and researchers testified that federal grant cancellations and delays are already causing layoffs, furloughs, rescinded admissions, and lost research capacity. UMass officials said the bill would help preserve faculty, postdocs, graduate students, and research programs in medicine, climate science, marine science, Braille instruction, and AI decision-making. They emphasized that the funding should be merit-based and that the state needs to act quickly to prevent talent from leaving Massachusetts. Business, labor, and industry groups, including MassBio, the Massachusetts Taxpayers Foundation, AIM, the AFL-CIO, and Building Trades, supported the bill, saying it would protect jobs, sustain the innovation ecosystem, and reinforce Massachusetts’ national leadership in research and life sciences. No vote was taken in the hearing.
HI

Hawaii 2026 Regular Session

CPN-HHS Public Hearing 03-20-2026

Commerce and Consumer Protection

Transcript Highlights:
  • They've brought it up with the NAIC, it's on their national agenda for meetings, and the Western Zone
Summary: The committee heard testimony on HB 1573, which would create state enforcement authority over unauthorized e-cigarette products and related tobacco enforcement. Supporters including SHPDA, the Department of Health, the Attorney General’s office, Hawaii Public Health Institute, and others said the bill would help protect youth from unauthorized vaping products, give the state tools to enforce an FDA-authorized product list, and add penalties and inspection authority. A committee member asked whether enforcement staff were available and what penalties would apply; the response was that existing tobacco investigators would take on the work, and the bill includes civil penalties, seizure authority, and possible license revocation referrals. The measure drew both support and opposition testimony, but no vote was taken in the portion provided. The committee then took up HB 1645, relating to liability for child welfare service providers. The Insurance Division said it was aware of the insurance-cost problem, had raised the issue with the NAIC, and was exploring a captive insurance option, while suggesting the legislature consider additional appropriations to DHS to cover higher contract costs. Supporters, including Parents and Children Together and Hawaii Insurance Council, argued the bill would help child welfare providers obtain insurance and continue critical services. Opponents, including the Hawaii Association for Justice, warned that removing joint and several liability could leave victims undercompensated and might not actually lower premiums. The insurance commissioner said other states have done tort reform in this area, but the committee was told it is not clear the bill would reduce insurance costs. Finally, the committee heard extensive testimony on HB 1875, which would protect access to gender-affirming care in Hawaii and shield patients and providers from out-of-state legal actions. Support came from the Hawaii State Youth Commission, LGBTQ+ and public health groups, medical professionals, ACLU Hawaii, Planned Parenthood, and others, who said gender-affirming care is evidence-based, medically necessary, and important for patient privacy, provider stability, and continuity of care. Several witnesses asked for amendments to the bill’s definition language. Opposition testimony came from individuals and groups including Hawaii Christian Coalition, Leeward Republican Women’s Club, and others, who argued the bill could expose children to irreversible decisions and that more research is needed. The chair noted roughly 176 supporters and about 40 opponents testified. No final action or vote was reported in the excerpt.
TX

Texas 89th 2nd C.S.

Natural Resources Jun 23rd, 2026

Natural Resources

Transcript Highlights:
  • I'd have to look by NAICS code for sure. I don't have sector-specific use for you. Okay. Thank you.
  • Look by NAICS code for sure. I don't have sector-specific use for you. Okay. Thank you.
Keywords: 1184, house, all
MN

Minnesota 2025 1st Special Session

Committee on Commerce and Consumer Protection - 02/13/25

Commerce and Consumer Protection

Transcript Highlights:
  • Our work with NAIC in particular has been really robust.
  • It would also adopt, um, NAIC standards on long-term care insurance and allow the department to issue
Keywords: 1187, senate, all
MN

Minnesota 2025-2026 Regular Session

Committee on Judiciary and Public Safety - Part 1 - 04/04/25

Judiciary and Public Safety

Transcript Highlights:
  • The National Association of Insurance Commissioners, or NAIC, created this model legislation, where it
  • legislation must pass the Department of Commerce, the legislature, to maintain our accreditation from the NAIC
Keywords: 1187, senate, all
CA
Transcript Highlights:
  • They have data by industry, so we looked at their taxable sales data by the 5132 NAICS code, which is
Keywords: 988, house, all
Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.