Transcript Highlights:

• c> excluded</c><00:41:16.960><c> from</c> Um, these payments were excluded from Um, these payments were
• And these employer payments inflation.
• The new payment threshold will increase to $2,000 for both forms of payments. 1099 KS.
• The new the recipient of the payments.
• ><00:50:01.119><c> to</c> payment threshold will increase to payment threshold will increase to $2,000

Committee: Senate Taxes

Transcript Highlights:

• commence in order for the loan payment to either be paid in full to the state or forgiven based upon
• The actual annual payments are set to begin March of 2027.
• </c> payments are set to begin March of 2027. payments are set to begin March of 2027.
• And you also see the payment requirements each year escalate.
• And you also see the payment requirements each year escalate.

Summary: The committee met with a quorum to hear a recap of the 2021 special session legislation, Senate Bill 5, and then receive testimony from the Secretary of Economic Development on the Blue Oval SK project and related economic development issues. Staff explained that Senate Bill 5 appropriated five amounts from the budget reserve trust fund for a project tied to a minimum $2 billion investment: $350 million for forgivable loans through the Kentucky Economic Development Finance Authority, $10,639,600 to pay off a Hardin County loan tied to 47 tracts of property, $20 million for Bluegrass State Skills Corporation training grants, $5 million for KCTCS training grants, and $25 million for a KCTCS on-site training center. Staff also noted there were no job-related requirements in the bill itself. The secretary said the Blue Oval SK incentive was structured as a $250 million forgivable loan rather than the state’s usual pay-as-you-go incentives, with clawback provisions tied to jobs, wages, investment, and changes in ownership or operations. He said the project had already exceeded the $2 billion investment threshold, that corporate guarantees were required from SK On and Ford, and that the agreement’s compliance period begins in December 2026 with payments starting in March 2027 and running through 2038. He said the state’s goal after the joint venture dissolution was to protect taxpayers, support affected workers, and preserve future job creation, while also ensuring the money would be repaid if performance targets are not met. Members asked about the workforce impact, the training programs, and whether the jobs targets would be revised. The secretary said the project had about 1,850 workers at the site, with both production and salaried employees affected, and described state-led job fairs, a job portal, and other rapid-response efforts to help displaced workers find new jobs or training. He said Ford had agreed to continue discussions, invest an additional $2 billion in the site for energy storage solutions, and pursue roughly 2,100 new jobs, while the state sought to keep the company accountable for the full repayment obligation if jobs are not created. One senator raised broader concerns about mega-projects displacing small businesses and creating infrastructure burdens in surrounding communities.

Transcript Highlights:

• </c> There's no cash payments ever made to households, and payments are made directly to vendors and/
• </c> with needed energy payment assistance. with needed energy payment assistance.
• One of those is payment into that in lieu fee fund.
• One of those is payment into that in lieu fee fund.
• One of those is payment into that in lieu fee fund.

Summary: The committee first took up a public hearing and presentation on the Low Income Home Energy Assistance Program (LIHEAP). Shannon Hall of the Department for Community Based Services and Rick Baker of Community Action Kentucky explained that LIHEAP is a 100% federally funded block grant that helps low-income households pay heating and cooling bills, avoid utility disconnects, and support weatherization. They outlined the program’s components, eligibility limits, seasonal application periods, and recent participation figures, including tens of thousands of households served through the summer cooling, fall subsidy, winter crisis, and spring subsidy components. They also described weatherization priorities, the partnership with Kentucky Housing Corporation, and the role of Community Action agencies in administering the program statewide. Members asked about Assurance 16, the balance between need and available funding, summer cooling assistance, weatherization measurement, renter versus homeowner participation, and whether federal changes could affect LIHEAP. Hall and Baker said Assurance 16 supports energy-burden reduction through education, case management, and conservation strategies; that funding has generally been sufficient in recent years but crisis funds have sometimes been exhausted quickly in the past; and that summer assistance is primarily electric utility support. They also said weatherization uses return-on-investment testing and that Kentucky still has a large backlog of homes needing service. On federal funding, they said the recently passed federal bill did not directly cut LIHEAP, but future appropriations could still affect it, and any major reduction could leave a gap the state might need to consider filling. The committee approved the minutes and later approved the LIHEAP finding of fact; no members of the public signed up to testify. After concluding LIHEAP, the committee heard a presentation from Heather Jeff of The Nature Conservancy on conservation opportunities in Kentucky. She described the organization’s voluntary land-protection work and highlighted the Cumberland Forest project, a conservation easement on about 55,000 acres in Bell, Knox, and Leslie counties supported in part by a $3.875 million state appropriation. She also reported on mine-land reforestation, elk habitat work, and the rapid allocation of a $2 million appropriation for the Kentucky Heritage Land Conservation Fund. Jeff emphasized the economic value of conservation for tourism, hunting and fishing, agriculture, forestry, bourbon, and flood protection, and said the group is finalizing a Kentucky conservation needs assessment and related feasibility research.

Transcript Highlights:

• This slide is for payments.
• So Uh the next this is total payments.
• So you can This slide is for payments.
• And Senator Douglas, I spoke payments.
• </c> between authorizations and payments. between authorizations and payments.

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• So, who's going the insurance payment.
• So, the tails on draw down payments.
• </c> and assistance and down payment and assistance and down payment assistance<00:48:21.119><c> uh</
• And like that is like lack of payment.
• </c><01:35:58.159><c> of</c> vial appropriations after payments of vial appropriations after payments

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• </c> the required payments the section three. the required payments the section three.
• </c> Representative Doset, in regards to payment is what that was. Mr.
• ><c> talks</c><00:40:37.359><c> about</c> payments.
• Subsection 8 talks about payments.
• We expanded payment, commercial market.

Committee: House Health Finance and Policy

Transcript Highlights:

• </c> their ability to make their payments their ability to make their payments with<00:08:18.680><c>
• The payment goes directly to the patient, and then they can make that portion of the payment to their
• The payment goes directly to the patient, and then they can make that portion of the payment to their
• The payment goes directly to the patient, and then they can make that portion of the payment to their
• </c><00:26:55.159><c> goes</c> so the process is the payment goes so the process is the payment goes

Bills: HF2228 , HF46 , HF856 , HF2149 , HF2215

Committee: House Commerce Finance and Policy

Transcript Highlights:

• </c> and payment schedule of that security. and payment schedule of that security.
• And this payment is from the payment.
• And the the payment electric company.
• </c> um, the energy payment um, the energy payment um, um, um, there<02:18:04.120><c> this</c><02:18:
• </c> the alternative uh, compliance payment the alternative uh, compliance payment rate,<02:18:24.040

Transcript Highlights:

• It includes strategies and barriers that may be present in reducing the payment error rate.
• It includes strategies and barriers that may be present in reducing the payment error rate.
• And in lieu of paying property taxes, you're going to pay us a lease payment.
• And the lease payment will be less than what you would have otherwise paid in property taxes.
• , just one lease payment to the school district.

Summary: The meeting covered a long series of House bills across health, commerce, education, elections, government, and veterans issues, with many measures described as consent-calendar items. In health and human services, members discussed updates to radiology technology standards, a tribal Medicaid waiver bill, an emergency medicine study committee, fetal death certificate and remains-transfer requirements, a physician assistant licensure compact, dementia care telemonitoring funding, and SNAP error-rate reduction and eligibility oversight. Sponsors generally framed these bills as technical updates, workforce or access improvements, cost savings, or support for families and vulnerable populations, while some bills drew brief questions about implementation or opposition. In commerce and finance, the committee heard bills on mobile food vendor licensing, earned wage access services, CPA certification, cash acceptance by retail businesses, unmanned aircraft regulation, timeshare salesperson licensing, social credit score restrictions for lending, and a ban on state assistance to the International Criminal Court. Sponsors emphasized reduced regulation, consumer protections, transparency, and state sovereignty. The committee also considered tax and retirement-related measures, including conformity with the Internal Revenue Code, ASRS technical changes, and a 529 plan update that also addressed Roth IRA rollovers. Education and school governance bills focused heavily on school district oversight and transparency. Members discussed patriotic youth group presentations in schools, school board term limits and mandatory training, bond-advisor requirements, restrictions on school districts buying operating charter or private schools to affect funding formulas, conflicts of interest on the School Facilities Oversight Board, public meeting and travel disclosure rules, limits on long-term school property leases, job-order contracting caps, and a computer science proficiency seal. Sponsors repeatedly argued these bills would improve accountability, prevent misuse of public funds, and increase public access to school board decisions. The meeting also included elections, veterans, government, and other administrative measures. These included changes to sample-ballot mailing deadlines, a requirement that courts ask about veteran status at first appearance, a veterans awareness study, broader military leave protections, SAVE database verification for voter registration and licensing, U.S.-sourced election equipment requirements, Electoral College affirmation, justice court due-process protections, library trustee reporting deadlines, adult protective services reporting cleanup, and procurement transparency. No final floor votes were taken in the excerpt, and most items were presented for questions or moved through consent with brief sponsor explanations and occasional opposition noted in committee testimony.

Transcript Highlights:

• I am an attorney and I worked on payments policy for about 18 years for U.S.
• amount, and the bill would only apply to 10% of the financial marketplace in California, will the payment
• Right now, the U.S. has about 25% of the payment card volume worldwide, but we have about 40% of the
• It is not a part of the payment processing system at all.
• That data does not go through the payment networks.

Committee: House Banking and Finance

Transcript Highlights:

• We use that rate to discount future benefit payments. It's also...
• We use that rate to discount future benefit payments.
• So it's like you think one-fifth, two-fifths, getting all the way to the payment.
• Way to the payment.
• The retirees receive their payments as set when they retire, and it's based on their benefit formula,

Transcript Highlights:

• HB 19 by Meyer relating to the issue in three payment of the debt by local governments, including the
• Utility district for the committee on land and resource management HB 2472 by Simmons relating to the payment
• comptroller public accounts for the committee on ways and means HB 2554 by Allen relating to the payment
• Committee on Public Education, HB 2556 by Frank, lending a certain health care transaction fees and payment
• claim. and inclusions of natural provider identifier on the payment claim or providing an administrative

Transcript Highlights:

• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.

Summary: The committee met in a special-called session of the Interim Joint Committee on Banking and Insurance and first took up three Department of Insurance regulations tied to House Bill 256, the Strengthen Kentucky Homes program: 806 KAR 22:00, 22:10, and 22:20. Commissioner Sharon Clark said the program would provide $5 million in grants to help homeowners strengthen roofs, with regulations covering eligibility and operations, contractors and evaluators, and reinspections in cases of suspected fraud. A committee substitute to 806 KAR 22:10 was explained as a technical correction to conform to the statutory preference for in-state contractors and evaluators. Representative Hampton moved and Representative Rudy seconded approval of the substitute, and it was adopted by voice vote; the amended regulations were then reviewed. Clark also said the grant money would be distributed statewide rather than targeted to storm-prone areas. The committee then heard an update from Commissioner Clark on mental health parity in response to questions from Representative Pollock. Clark said the department reviews insurer filings and conducts market conduct examinations, but does not have authority over provider reimbursement rates or to require providers to join insurer networks. She said complaints are investigated and, when needed, teams review claims and data on site to check compliance with parity requirements. No action was taken on that discussion. After approving the November 4 meeting minutes, the committee heard testimony on a proposed PIP reform package from Representative Josh Bray, the Kentucky Hospital Association, the Kentucky Justice Association, and State Farm. Supporters said the bill would apply the workers’ compensation fee schedule to most PIP medical claims, keep the $10,000 PIP limit in place while stretching benefits further, reduce balance billing, modernize benefit amounts, and address fraud and delayed billing. They noted hospitals would be exempt from the fee schedule, while hospital-based physical therapy would be included, and said the compromise reflected negotiations among stakeholders. Some members questioned whether exempting hospitals undercut the bill’s purpose and asked about possible rate effects; proponents said they had not done a rate analysis and that the bill could lead to more treatments within the existing PIP limit. No vote was taken on the PIP proposal during this meeting.

Transcript Highlights:

• KCNA has not rendered payment for the KCNA has not rendered payment for the huts<00:04:43.440><c> despite
• KCA claims to have mailed another payment, but we have not received that payment either, nor are we aware
• </c> how the the process for payment went. how the the process for payment went.
• Um, but for the $450 per month, or we had the right to issue a payment in full, and the payment in full
• Which is what you did with this check. payment in full, and the payment in full payment in full, and

Summary: The meeting began with routine business, including welcoming new committee member Senator Reginald Thomas, approving the minutes, and receiving a correspondence report on several information items. Those items included University of Kentucky research equipment funding, UK capital project funding using federal/private funds, debt issues from McGoffin County and Owen County school districts, lease modifications by the Division of Real Properties, asset preservation project revisions at Eastern Kentucky University and Northern Kentucky University, and Kentucky Communications Network Authority (KCNA) information on Kentucky Wired critical infrastructure. The main discussion focused on a dispute over the Kentucky Wired communication shelters, or “huts,” and related payments under KCNA’s agreement with Asellicom/Excel. Brad Kilby of Asellicom testified that KCNA had not paid for the huts, that Asellicom had not received the alleged $8 million or any later payment, and that Asellicom remained the legal owner. Committee members pressed him on whether payment had been received, whether anyone else might have received it, and whether the lawsuit or dispute resolution process clarified the issue. Kilby said no payment had been received and that the matter was part of ongoing litigation. KCNA Executive Director Doug Hendricks and General Counsel Adam Atkins then testified. They said a certified check for $8.5 million was mailed in July, based on the Finance and Administration Cabinet secretary’s determination that $8.5 million was due under the model procurement code, even though KCNA had initially requested about $12 million to cover a worst-case estimate. They said the contract allowed payment in full or in tranches, that the huts were completed and operational, and that KCNA had not received documentation supporting Asellicom’s higher $10.1 million claim. Members expressed frustration over the missing check and the broader implications for Kentucky Wired, and one member requested that the committee obtain all agency requests related to KCNA/Kentucky Wired since inception; the co-chairs said they would look into making that information available. No formal vote was taken on the dispute during the portion provided.

Transcript Highlights:

• Sir, it'll be a return payment like you'll issue out a letter.
• The second is post-payment review.
• We go back and recoup those payments. It was asked how we do that.
• Sometimes a certain amount comes out of their future payments.
• I'm curious about your idea of delaying payment.

Committee: House Human Services

Transcript Highlights:

• Under H.R. 1, the state's payment error rate will determine whether the state shares in that cost of
• And these payments are critical and integral to ensuring that we're closer to covering our cost.
• We continue to serve them, but we lose the payment for reimbursement for these services.
• We didn't always give this payment. So this, it's PPS for the UIS population.
• Okay, so for about 10 years, they've had this payment.

Summary: The Budget Subcommittee on Health and Human Services heard an overview of the expected California budget and program impacts from H.R. 1, including changes to Medi-Cal and CalFresh eligibility, redeterminations, work requirements, immigration-related coverage rules, retroactive coverage limits, and reductions in federal matching for certain services and provider financing mechanisms. DHCS and CDSS described implementation plans focused on automation, data matching, clearer communications, county training, and outreach, while noting that many federal details are still pending. The Legislative Analyst’s Office also reviewed how H.R. 1 could increase pressure on county indigent care systems, explaining the history of county responsibility under Section 17000, 1991 realignment, and AB 85, and warning that counties may face large increases in uninsured residents seeking care without corresponding funding flexibility. An independent policy expert urged consideration of a more standardized statewide approach to indigent care and raised questions about governance, benefits, and financing. Department witnesses estimated substantial coverage losses and fiscal effects: DHCS projected major Medi-Cal disenrollment tied to work requirements, six-month renewals, narrowed immigrant eligibility, and reduced retroactive coverage, while CDSS estimated large CalFresh benefit losses and a significant increase in administrative workload and payment accuracy pressure. Members questioned how exemptions would work for older adults, people experiencing homelessness, undocumented residents, and cash workers, and asked about the effect on the CalFresh Minimum Nutrition Benefit Pilot and on county administrative funding. Officials said they would use available data and self-attestation where possible, but acknowledged that many cases would require manual screening and that the county workload estimates remain in dispute. They also said the state is still evaluating the impact of H.R. 1 on provider taxes and state-directed payments, which could create additional budget pressure. County representatives from Los Angeles, Santa Clara, Tulare, and San Bernardino described major local consequences if H.R. 1 is implemented as written. They warned of higher uninsured rates, more strain on emergency rooms and public hospitals, increased homelessness and food insecurity, and a likely need to rebuild or expand county indigent care programs that were largely scaled back after the ACA. Counties said they are already freezing hiring, cutting positions, reducing overtime, deferring spending, and launching outreach and coordination efforts with managed care plans and community partners, but argued that these steps are not enough without additional state support. Several counties backed the California County Welfare Directors Association’s request for $373 million in General Fund support for eligibility work and asked for a CalFresh match waiver to soften the new county share of administrative costs; Los Angeles and Santa Clara also emphasized that their local revenue measures would not close the projected gaps. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• Number one is, as I alluded to, the discount was put in place to incentivize a payment.
• When the payment is received, it is triggered by that February 15th or earlier date.
• When the payment is received, a discount is calculated, and that is then taken off.
• It's not built in up front in the program; it's calculated when the payment is received.
• to us in May. ...takes the time it takes for them to get the payment to us in May.

Summary: The subcommittee met with a quorum, approved the prior minutes, and focused primarily on property tax statement issues tied to the primary residence credit and the 5% early-payment discount. North Dakota Association of Counties representatives said the current special-session language creates problems because the discount is being applied even when no taxes are ultimately owed, and because the discount is calculated before the PRC funds are actually received. They recommended reverting to the prior law so the discount is applied after the PRC, and noted that all four programmers said they could revert the software to the earlier version if needed. The committee also reviewed a bill draft to remove the legislative tax relief line item from the required contents of the property tax statement. Members agreed the current line item is not especially accurate or useful on the statement, and several members said the committee should go further by adding clearer taxpayer education, such as a pie chart or other supplemental breakdown of where property taxes go. County officials said some counties already provide supplemental charts or explanatory material, but others would need help with printing, mailing, or formatting. To support that idea, staff presented a second bill draft creating a grant program, administered through the Association of Counties with OMB as a pass-through, to reimburse counties for supplemental property tax statement information and related administration. After discussion, the committee voted unanimously to combine the two bill drafts into one recommendation and forward it to the full Tax Reform and Relief Advisory Committee. The subcommittee then voted to adjourn after directing staff to prepare its summary and recommended bill draft for the interim report.

Transcript Highlights:

• the 2025 Budget Act, the Governor's budget maintains and defers the one-time fourth-year compact payment
• The payment deferrals as soon as one-time funding becomes available.
• Doing so would return UC's payments to their original schedule.
• Some include out-year payments, and some of those are reflected in 2027-28 and 2028-29, as some of the
• payments to the UC retirement program.

Transcript Highlights:

• We're, I think, curious to know how behavior in corporate tax payments might change.
• And they've made some shifts in how corporations are remitting their tax payments that are also going
• But we are watching corporate tax payments.
• to fully fund. payments will not decrease enough for them to be able to fully fund that stipend.
• . ...in our payment terminal.

Committee: House Ways & Means

Transcript Highlights:

• We have direct payments to individuals and the states such as Social Security.
• Been historically seen as direct payments to beneficiaries.
• On the state's payment error rate. Our current payment error rate is at 14.4%.
• That's if we could get our payment error rate down. To about 5%.
• To match for hospital supplemental payments and so there's, there's certain Medicaid payments that go

Committee: House Federal Funding Stabilization Subcommittee