Transcript Highlights:

• Currently, today, more than 1.6 million people in California rely upon digital payment platforms for
• We recognize that these wallets operate differently from centralized platforms and do not present the
• protects personal financial information, and keeps pace with the growing use of digital payment platforms
• about us dictating this sort of detail with regard to anything, but scams and organized abuse on the Internet

Committee: Senate Banking and Financial Institutions

Summary: The Senate Committee on Banking and Financial Institutions met to hear two-year bills that had not advanced the prior spring. The committee first adopted the consent calendar, which included SB 546 and SB 700, on a roll call vote. The committee then heard SB 505 from Senator Richardson, a consumer protection bill aimed at digital wallets and money transmitters. SB 505 would require digital wallet providers and money transmitters operating in California to use two-factor or multi-factor authentication at login, with a delayed operative date of January 1, 2028. The author said the bill was narrowly focused on authentication, not transactions, fees, or data collection, and noted ongoing discussions with stakeholders about self-hosted crypto wallets and possible definitional amendments. Support came from Rise Economy, while representatives from the California Blockchain Advocacy Coalition, Andreessen Horowitz, and TechNet described themselves as neutral or “tweener,” citing appreciation for the author’s work and the revised language. Committee members generally supported the bill while raising concerns about fraud, phishing, and the possibility that technology could change over time. Vice Chair Niello said he had some trepidation about mandating a specific technology but supported the bill as a practical anti-fraud measure. The chair also noted the bill’s narrow scope and the need for continued conversation. SB 505 was given a do pass and re-refer recommendation to Appropriations and passed the committee on a 5-0 vote; the consent calendar also passed with five votes. The committee then adjourned.

Transcript Highlights:

• Currently, today, more than 1.6 million people in California rely upon digital payment platforms for
• We recognize that these wallets operate differently from centralized platforms and do not present the
• protects personal financial information, and keeps pace with the growing use of digital payment platforms
• about us dictating this sort of detail with regard to anything, but scams and organized abuse on the Internet

Committee: Senate Banking and Financial Institutions

Transcript Highlights:

• gallery in the Business and Insurance committee, you're more than welcome to see the videos on the internet

Bills: HB4322 , HB4202 , HB4203 , HB4457 , HB3983 , HB3660 , HB3802 , HB2933 , HB2955 , HB2956 , HB3781 , HB3521 , HB3794 , HB3796 , HB3800

Committee: Senate Business and Insurance

Keywords: funeral services licensing, funeral director, embalmer, funeral director in charge, dual licensure, mortuary science, Oklahoma Funeral Board, funeral establishment, commercial embalming establishment, crematory, cremation, alkaline hydrolysis, apprenticeship, licensing requirements, professional regulation, undertaker, mortician, burial services, death care industry, workers' compensation

Bills: SB1636 , SB1772 , SB1221 , SB1932 , SB1687 , SB1213 , SB843 , SB1410 , SB1317 , SB1338 , SB1976 , SB1314 , SB1191 , SB1613 , SB1246 , SB1439 , SB1930 , HR1044

Keywords: cold case, unsolved homicide, violent crime, case file review, law enforcement, police records, victim family, immediate family member, designated person, forensic testing, witness reinterview, investigative leads, cold case unit, unsolved murder, public safety, Title 21, Oklahoma statutes, motor vehicle safety, headlamps, headlights

Transcript Highlights:

• The bill also prohibits electronic health record platforms from collecting information pertaining to
• On that platform, when you look under registration identification, it still...
• Association, which upheld a federal law requiring internet filters in libraries to block obscene or harmful

Bills: HB45 , HB45 , HB755 , HB 1232 , HB1555 , HB2460 , HB2702 , HB2973 , HB3120 , HB3225 , HB3314 , HB3356 , HB3371 , HB3634 , HB3638 , HB4247 , HB4283 , HB4290 , HB4302 , HB4503 , HB4511 , HB4565 , HB4581 , HB4627 , HB4632 , HB4660 , HB4668 , HB4960 , HB5042

Committee: House State Affairs

Keywords: flooding, disaster response, emergency preparedness, state guidance, public safety, housing, affordable housing, rent control, landlord-tenant laws, housing rights, lobbying, public entities, expenditures, government code, transparency, Texas Ethics Commission, government regulation, lobbying restrictions, government accountability, taxpayer money

Transcript Highlights:

• Requirements include registration, maintaining liability insurance, and providing proper documentation
• That you're willing to waive liability, that you're out there, and they put out a notice, "Hey, this
• I think the question of personal liability, if an individual, whether it's the county commissioner's
• However, it opens those landowners up to significant liability in some cases. ...down the road, which
• So, Chairman, are you seeking to sort of limit the liability that the landowner would have?

Bills: HB45 , HB755 , HB 1232 , HB1555 , HB2460 , HB2702 , HB2973 , HB3120 , HB3225 , HB3314 , HB3356 , HB3371 , HB3634 , HB3638 , HB4247 , HB4283 , HB4290 , HB4302 , HB4503 , HB4511 , HB4565 , HB4581 , HB4627 , HB4632 , HB4660 , HB4668 , HB4960 , HB5042 , HB45

Committee: House State Affairs

Keywords: housing, affordable housing, rent control, landlord-tenant laws, housing rights, lobbying, public entities, expenditures, government code, transparency, Texas Ethics Commission, government regulation, lobbying restrictions, government accountability, taxpayer money, HB 1232, whistleblower, whistleblower protection, public employee, retaliation

Transcript Highlights:

• Please note the House is not responsible for bad internet connections on the testifier end.
• motorcycle insurance is generally not near what an auto policy runs because of the exposures on liability
• Lyft is committed to maintaining a platform that is accessible and welcoming to all riders, including
• L Lyft is deactivation from our platform L Lyft is committed<00:45:50.960><c> to</c><00:45:51.079><c
• to maintaining a platform that committed to maintaining a platform that is<00:45:52.319><c> accessible

Summary: The House Committee on Transportation met on January 28, 2025, and heard testimony on a series of bills dealing with vehicle titles, motor vehicle taxes, window tinting, license plates, electric bicycles, insurance penalties, vehicle inspection fines, and transportation discrimination. For HB 532, which shortens the time to forward a transferred vehicle title from 30 days to 14 days and allows a letter of attestation to serve as an endorsement certificate, testimony was listed in support from Councilmember U. Hajin and the City and County of Honolulu Department of Customer Services, and in opposition from Maui Mayor Richard Bisson and Sylvie Madison. HB 655 would require payment of unpaid motor vehicle taxes, fees, and penalties for the most recent five consecutive years of delinquency; the Tax Foundation of Hawaiʻi stood on written comments, with Tim Rymer and Robert Souza providing comments/support. HB 368, which would exempt certain medically sensitive drivers from sunscreen-device tint limits, drew opposition from the Department of Transportation and support from several individuals. HB 226, lowering allowed windshield tint from 35% to 20%, drew opposition from the Department of Transportation and support from TNT Tinting Specialists; members asked about federal preemption, and DOT said federal guidance applies to manufacturers while states retain authority over aftermarket tinting. The committee also heard HB 543, prohibiting license plate flipping devices and imposing a $2,000 fine, and HB 228, authorizing counties to adopt rules for electronic license plates, repealing flipping devices, and setting a minimum fine for obscuring plates; both measures had DOT support, comments from the Honolulu Department of Customer Services, and opposition from Sylvie Madison. HB 70 would require insurance for electric bicycles and create a regulatory framework effective January 1, 2026. The Office of the Public Defender opposed it, arguing the bill improperly distinguishes e-bikes from mopeds; PeopleForBikes and the Hawaiʻi Bicycling League opposed it as costly and unnecessary, while the Insurance Division said the bill could conflict with existing no-fault definitions and might fit better in the motor scooter/moped insurance framework. HB 231, increasing the fine for violating motor vehicle insurance requirements from $500 to $1,500, was opposed by the Office of the Public Defender, which argued it would burden low-income residents and add to court congestion; members debated whether higher fines would improve compliance. Later, HB 227 would add fines for operating a vehicle without a current inspection certificate and had DOT support. HB 184 would require operators of low-speed electric bicycles to have a driver’s license, instruction permit, or provisional license; Kawaii Path, PeopleForBikes, and Get Fit Kauaʻi opposed it as a barrier to low-cost transportation and noted concerns for riders with disabilities, while DOT later said it would support the measure and was asked to research whether other states have similar licensing requirements. The final major measure discussed was HB 468, which would require the Civil Rights Commission to investigate discrimination complaints involving transportation network company drivers and riders with service animals and allow DOT to issue penalties to the companies. The National Federation of the Blind of Hawaiʻi, the Disability Rights Center, and individual riders supported the bill, saying current protections lack enforcement and that denials still occur; Uber and Lyft opposed it, saying they already prohibit discrimination, train drivers, investigate complaints quickly, and that the bill would duplicate existing law and create unnecessary penalties. No votes or final committee actions were taken in the portion of the hearing provided.

Transcript Highlights:

• to minors, my concern is that, with limiting it to minors, this bill becomes a Trojan horse for internet
• If once you have digital ID on the internet, you now have eliminated privacy for everyone.
• If once you have digital ID on the internet, you now have eliminated privacy for everyone.
• , to saying that we're now going to identify all of your usage of the internet and identify our social
• , or expansion of identity Transition. would be that would support mobile drivers license platforms or

Summary: The committee approved the minutes from March 10, 2026, and then heard several House bills, mostly on appropriations, fees, water, food assistance, technology, and licensing. HB 2056, which would appropriate $100,000 for an Arizona Department of Water Resources feasibility study on brackish groundwater desalination, passed 6-3 despite concerns raised in opposition about increased groundwater pumping, subsidence, and impacts to tribal lands and conservation efforts. HB 2057, reducing the Arizona Centennial Special Plate renewal fee from $25 to $20, also passed 7-2 after one senator objected that the plate’s purpose and discount were not well justified. HB 2224, appropriating $1 million annually to DES for the produce incentive program, drew supportive testimony from food access groups who said the program helps families, farmers, and local markets; members noted the amount was below the prior $2 million funding level and could force site closures, but the bill passed 9-0. The committee also advanced HB 2257, which changes the distribution of watercraft registration and fee revenue, shifting more money to lake improvement and boating safety funds and less to the watercraft licensing fund. It passed 6-3 amid criticism that the bill moved money away from Game and Fish and concern that the boating safety fund increase could support immigration enforcement. HB 2265, which bars courts from charging criminal defendants for public defender services and certain other criminal-case fees and assessments, passed 7-1 after extensive testimony from advocates who argued the fees burden indigent defendants and cost more to collect than they raise; opponents called it a cost shift to counties and other local governments and said more fiscal data was needed. HB 2311, regulating publicly available conversational AI services with disclosure, anti-gamification, sexual-content restrictions, parental tools, and self-harm protocols, passed 7-2 after the sponsor and supporters framed it as child protection, while opponents warned about privacy, surveillance, and overbroad definitions; an Epstein amendment broadening the bill was rejected. The committee then considered HB 2752, which would subject Arizona Commerce Authority trade offices to legislative appropriation and require annual reporting. The ACA said it was neutral but supported the concept of data-driven decisions; the sponsor said the Legislature should approve trade offices and that the bill reflected his prior trade-office initiatives. An Epstein amendment requiring objective research for trade-office appropriations was rejected, and the bill passed 6-3. Finally, the committee heard HB 2957, which would preserve non-Real ID driver’s licenses, prohibit mandatory participation in enhanced ID programs, restrict biometric collection and document retention, and bar government entities from requiring digital or mobile IDs. The sponsor and several supporters argued it protects privacy, state sovereignty, and informed consent, while opponents from ADOT and the trucking industry warned it could conflict with federal Real ID and CDL requirements and jeopardize federal compliance and funding. The discussion was still ongoing at the end of the transcript, with witnesses and members debating whether the bill would change current practice or create federal conflicts.

Transcript Highlights:

• </c><00:13:31.360><c> uh</c> value value across the internet uh value value across the internet uh across
• And you're using this crypto platform as the way to do it, right.
• </c> investor I used to own internet investor I used to own internet companies<00:57:13.039><c> and</
• </c> beginning like it's 1994 in the internet beginning like it's 1994 in the internet age<00:59:37.720
• </c> investments just like the internet investments just like the internet stocks<01:33:11.119><c> were

Summary: The House Commerce Committee opened a public hearing on House Bill 310, sponsored by Representative Keith Ammon, which would create a study commission to develop a legal framework for stable tokens and tokenized real-world assets. Ammon described stable tokens as blockchain-based digital tokens backed by U.S. dollars or treasuries, and tokenized real-world assets as representations of ownership in items such as gold, real estate, or artwork. He said the bill is intended to help New Hampshire get ahead of emerging financial markets while waiting to see how federal legislation develops. Committee members asked about the purpose of the bill, the difference between this proposal and Bitcoin, whether state regulation could be preempted by federal law, and whether the commission could be balanced and avoid becoming a vehicle for fraud or money laundering. Ammon said the proposal is blockchain-agnostic, could apply to multiple networks, and is meant to regulate asset-backed tokens rather than create a state-issued coin. He emphasized that the state would not be guaranteeing the underlying assets, but would set rules requiring audits, proof of reserves, and honest representation of backing, with the Secretary of State’s securities office involved in oversight. Several members raised concerns about the risks of stablecoins, including money laundering, tax evasion, and possible harm to the dollar or confusion about whether the state was endorsing a new currency. Ammon responded that the bill would not undermine the dollar and argued that tokenization could actually expand demand for U.S. currency by making it easier to use globally. He also said the state would not be in the business of weighing assets or directly valuing them, only ensuring a valid audit trail and one-to-one backing. The discussion ended with general agreement that the subject is complex and that a commission could help develop future legislation, but no vote or final action was taken in the hearing.

Transcript Highlights:

• by the Internet Coalition, to express express express to<01:08:03.640><c> express</c><01:08:04.040><
• It risks violating the permanent<01:09:55.720><c> Internet</c><01:09:56.080><c> Tax</c><01:09:56.320>
• such as Facebook or Google, in platforms such as Facebook or Google, in addition<01:13:59.280><c> in
• Tax Freedom Act regarding the Internet Tax Freedom Act and<01:36:18.680><c> how</c><01:36:19.280><c>
• </c><01:37:59.480><c> Tax</c> ...sales tax would affect the Internet Tax Freedom Act.

Bills: HF1669 , HF4709 , HF3531 , HF4048

Committee: Senate Taxes

Keywords: tax credits, sustainable aviation fuel, environmental policy, corporate franchise, Minnesota taxation, electricity generation, property tax exemption, renewable energy, incentives, economic development, fuel delivery, tax exemption, retail transactions, diesel exhaust fluid, fuel lubricants, healthcare tax, gross receipts tax, hospitals, chiropractors, healthcare providers

Transcript Highlights:

• Appropriations or a subcommittee of the Committee on Appropriations is made available to the public on the internet
• of the Committee on Appropriations or a subcommittee must be made available to the public on the internet
• single formal meeting of this committee be audio recorded, be video recorded, and be put on the internet
• We could have done a live stream via countless digital platforms, and I had my staff check, and countless

Summary: The House Appropriations Subcommittee on Articles 14 and 5 met first and adopted its report on budget recommendations by a 4-0 vote, with three members absent. The chair said the report finalized prior decisions and could not be changed at that stage. Notable additions discussed included increased appropriations for the Office of the Attorney General, DPS driver’s license offices in Hays and Montgomery County, TJJD facilities and programs, Texas Facilities Commission funding for SCIF projects in Lubbock and San Antonio, THC funding for the Juneteenth Museum, an alcohol tourism study, and a TDCJ statewide reentry services pilot program. Members thanked staff and the meeting adjourned after the vote. The Article 3 subcommittee then presented its report for the committee substitute for Senate Bill 1, describing it as a procedural step that incorporated prior discussions, member writers, and changes made with Chairman Bonin. The chair noted that most items had been moved to Article 11 and that rejected riders were duplicates or conflicted with general law. The report was adopted unanimously, 6-0, and the subcommittee adjourned. The Articles 6, 7, and 8 subcommittee followed with its report for Senate Bill 1. During consideration, a member raised a point of order arguing the subcommittee had violated House rules requiring audio and video recording of formal meetings and public availability online. The chair rejected the point of order and proceeded to a roll call vote. After extended debate over the recording issue and the chair’s handling of the point of order, the report was adopted, with the transcript reflecting 6 ayes, 1 nay, and 1 absent. The subcommittee then adjourned.

Transcript Highlights:

• The program has yet to connect a single American to high-speed Internet after 1,241 days.
• I also learned the value of a simple internet connection.
• If confirmed, I will work with Congress and the administration to expand access to high-speed Internet
• Thanks to the E-rate, thousands of schools in the United States now have high-speed internet access.
• I want to understand whether you think the FCC should re-examine. and negotiate with online platforms

Committee: Senate Commerce, Science, and Transportation Committee

Keywords: state policy, governance, legislative processes, public concerns, policy improvement

Summary: During the committee meeting, various issues surrounding state policy and governance were deliberated. Although the specifics of bills under discussion were not highlighted, comments from several committee members indicated a focus on improving legislative processes and addressing public concerns. The chairman facilitated discussions that included several points of critique as well as suggestions for enhancement of existing laws. The atmosphere remained constructive despite the complexity of the topics at hand.

Transcript Highlights:

• Today, that pervasive data collection, once associated only with the internet, permeates our physical
• sold, and they were able to determine the internal layout of this facility due to these jogging platforms
• we are not in the best position to effectively navigate our privacy because we have to do so on platforms
• Schools likewise require students to use devices loaded with ed tech, educational technology platforms
• Once this data is shared with a third party, whether a platform, a school vendor, or through a data broker

Summary: The Assembly Privacy and Consumer Protection Committee held an informational hearing on California privacy in the age of mass surveillance, with members framing the issue as urgent in light of AI, data brokers, workplace monitoring, and government access to commercially collected data. Opening remarks emphasized California’s long-standing privacy tradition and concern for impacts on Latino, immigrant, LGBTQ+, and other vulnerable communities. The committee heard from experts from UC Law San Francisco, UC Berkeley, UC Irvine, UC Davis, and a worker-organizer from Amazon, followed by a journalist from 404 Media. Nicole Ozer reviewed the history of California’s constitutional right to privacy, tracing it to the 1972 ballot measure and arguing that lawmakers should use that right more fully to operationalize stronger protections against surveillance. Deirdre Mulligan described how surveillance capitalism has expanded through physical-world instrumentation, biometrics, connected devices, and AI, and argued that notice-and-consent models are inadequate because people cannot meaningfully understand or control how data is collected, inferred, shared, and used. Ari Waldman focused on disparate harms to marginalized communities, including queer people, survivors of domestic violence, and people seeking reproductive care, and called for stronger regulation, limits on data collection and sharing, and greater accountability for companies and government access to data. Josh Black testified about Amazon’s workplace surveillance, including handheld devices, time-off-task monitoring, hidden cameras, and driver-facing AI cameras, saying the system pressures workers to skip breaks, rush safety training, and discourages organizing. He said the surveillance is used to increase productivity and suppress union activity. Committee members asked about data retention, injury reporting, cash as a privacy-protective payment option, and whether workers truly consent to surveillance as a condition of employment. Jason Kebler described how police departments adopt commercial surveillance tools through pilot programs and vendor relationships, often without public debate, citing license plate readers and networked camera systems that can spread data across jurisdictions. No votes were taken; the hearing was informational and ended with discussion of the need for clearer definitions, stronger enforcement, and continued legislative action.

Transcript Highlights:

• to our friends, but military platforms to our friends, but what<04:22:39.040><c> has</c><04:22:39.359
• A review of and controlled PRC internet.
• with internet traffic being rerouted<04:51:46.958><c> through</c><04:51:47.200><c> China.
• Communication systems and access to the internet are highly dependent on undersea cables.
• </c><07:58:02.160><c> and</c> lowering their overall tax liability and lowering their overall tax liability

Bills: HR539 , HR747 , HB4216 , HB2635 , HB4233 , HB4490 , HB2503 , HB2643 , HB4215

Keywords: LaMonica McIver, censure, House of Representatives discipline, Homeland Security Committee, removal from committee, Newark, Delaney Hall, immigration detention facility, federal officers, assault on federal officer, resisting arrest, interfering with federal officers, ICE, Homeland Security Investigations, HSI, congressional ethics, House resolution, disciplinary resolution, 18 U.S.C. 111, immigration enforcement

Transcript Highlights:

• are sold on their platforms and someone is injured as a result.
• SB 378 addresses this urgent problem by establishing strict liability for online platforms and websites
• SB 378 addresses this urgent problem by establishing strict liability for online platforms and websites
• So, I mean, that's the—and having liability for doing that and having accountability for these platforms
• And then this is a more, this is an enforcement mechanism for the online platforms. Dr.

Summary: The Assembly Business and Professions Committee heard several measures, including SB 402 by Senator Valadares, which would move existing qualification requirements for qualified autism service providers and related professionals from the Health and Safety Code and Insurance Code into the Business and Professions Code without changing the standards. Supporters said it was a technical cleanup that would improve consistency and legislative oversight, while an opponent argued the bill was unnecessary and could create access issues; another witness urged inclusion of the QABA credentialing board. The committee approved SB 402 on a due pass motion to the Committee on Health. The committee also heard SB 378 by Senator Wiener, aimed at online platforms that facilitate sales of illicit cannabis and intoxicating hemp products. Supporters, including labor, local government, and cannabis industry representatives, said the bill would help protect consumers, minors, legal businesses, and tax revenue by creating accountability for online marketplaces. Opponents from the hemp industry and TechNet argued the bill was overly broad, could sweep in legitimate platforms and payment services, and should better distinguish bad actors from compliant hemp businesses; members discussed implementation, enforcement through a private right of action, and coordination with AB 8. The committee passed SB 378 to the Committee on Privacy and Consumer Protection. Senator Arreguín presented SB 779, which would establish minimum enforcement fines for Contractors State License Board citations where minimums are currently very low or absent, and would raise the board’s reserve cap from six months to 12 months. The sponsor said the changes would better match penalties to violations and help support consumer protection and board operations during economic downturns. There was no opposition, and the committee approved SB 779 as amended to the Committee on Appropriations. The committee also approved the consent calendar, which included SB 344 and AB 652, both sent to Appropriations. SB 508 was not heard because it had been pulled by the author.

Transcript Highlights:

• ADDITIONALLY 702 DEFINITION OF SOCIAL MEDIA PLATFORM IS OVERLY BROAD.
• COULD INCLUDE PLATFORMS THAT LACK THE TECHNICAL ABILITY TO COMPLY.
• WITHOUT CLEAR GUIDELINES, PLATFORMS MAY STRUGGLE WITH COMPLIANCE AND LEGAL UNCERTAINTY.
• THIS AMBIGUOUS TERM LACKS CLEAR STANDARDS WITH GRAY AREA VERSUS PLATFORMS TO GAS AT COMPLIANCE.
• INCONSISTENT BILLING ACROSS PLATFORMS.

Transcript Highlights:

• And then we were able to do a unified indexing system with a scanning platform.
• Then if there's a liability aspect, you have to try that part of it.
• But y'all don't get Internet in St. Lena, so you don't do that. But y'all don't get internet in St.
• And so they do mention that's LaCray, and it says that the filing platform for the appellate courts with
• I can pull it up on my computer when I have Internet and see what's been filed.

Committee: House Judiciary

Summary: The committee met with a quorum and took up House Bill 911 by Rep. McMakin, which proposes a major restructuring of Orleans Parish courts into a single judicial district with one clerk of court and a consolidated system, while keeping current judges in place through the end of the year and allowing them to run in scheduled elections. The committee first adopted a three-minute debate rule, then later rejected a motion to suspend it. The bill was then amended with a large set of mostly technical changes, and the amendments were adopted without objection. Supporters argued the bill would modernize Orleans’ court structure, reduce duplication, and align Orleans with other judicial districts. They cited Supreme Court data, prior studies, declining population and caseloads, and the state’s direct funding of Orleans criminal court as reasons to consolidate and reduce judgeships. Opponents, including local legislators and attorneys, said Orleans is not comparable to other parishes because of complex litigation, multiple-defendant criminal cases, jury-trial volume, tourism-related cases, and the need for specialized dockets. They also criticized the process as rushed and said local judges, legislators, and practitioners were not adequately involved. Testimony from ACLU and defense-side witnesses emphasized that case counts are not uniform across parishes and that Orleans has a high number of jury trials and a large workload per judge. They warned that eliminating judgeships could increase delays and create transition costs, while supporters countered that other districts manage similar or heavier work with fewer judges. White-card witnesses from Orleans Civil District Court, including Judge Kernan Reese, Judge Sidney Cates, and Clerk Chelsea Richard Napoleon, testified that Orleans handles complex and time-sensitive matters, that the clerk’s office relies on self-generated funds, and that the bill’s funding and office references contain inaccuracies. No final vote on the bill was taken in the portion of the transcript provided.

Transcript Highlights:

• The internet is taking just a minute here. Okay, the report isn't coming up.
• I think I may have just had an internet problem here. Am I back? Yes, you are back. Yes.
• We have three main coverages: liability, public assets, and auto.
• Who's that fault, that liability?
• It's a county that has a statement of net position that has zero liabilities.

Summary: The committee was called to order, the Pledge of Allegiance and prayer were offered, and the minutes from the previous meeting were approved. Members then received a memo summarizing major audit items and began hearing audit presentations from the State Auditor’s Office and private auditors on a range of state agencies and organizations. Several audits were reported as clean, including the Bank of North Dakota, the North Dakota Guaranteed Student Loan Program, the Office of the Governor, the Office of the State Treasurer, the Office of Management and Budget, the Department of Transportation’s flexible transportation fund, Lake Region State College, and the Department of Environmental Quality. The North Dakota Stockmen’s Association also received an unmodified opinion, though repeat findings were noted for limited segregation of duties and financial statement preparation due to its small staff. The Council on the Arts audit found two findings: payroll charged to federal awards without adequate timekeeping records, and unallowable expenditures from a restricted cultural endowment fund. The Department of Public Instruction audit identified unsupported scholarship applications in the paraprofessional-to-teacher program, though additional testing showed the funds were used for their intended purpose. The most extensive discussion centered on the North Dakota Racing Commission audit, which identified four findings: overspending the promotion fund’s 25% operating limit, grant conditions not being met, improper Breeders Fund awards, and improper procurement for advertising services. Racing Commission director Bruce Johnson acknowledged complacency and weak controls, said the agency would tighten procedures, and explained that the commission had since worked with procurement and would follow the rules more closely. Auditors also explained that the commission would now be audited every two years because of the findings. Another major discussion involved the University of North Dakota School of Law, where auditors found a lack of documentation supporting admissions decisions for post-baccalaureate programs. UND officials said they remain in good standing with the American Bar Association but agreed better documentation and tools are needed; the committee pressed for more transparency and follow-up on admissions criteria. The committee also received an update on Dakota College at Bottineau, where Minot State University reported that bank reconciliations had been brought current after a significant backlog and would now be maintained through shared services. Members requested a written follow-up report on the issues and corrective actions. Finally, the North Dakota Fair Association explained that its foundation has been dissolved and remaining funds were transferred to another nonprofit for continued support of the state fair, and the Department of Public Instruction provided an update on school meal debt, saying the reported amount was about $1.1 million from a partial district survey and that debt remains a local issue, though it could be revisited if school meal funding changes.

Transcript Highlights:

• A couple others are the Commerce Clause and the Internet Tax Freedom Act.
• people to get online and conduct business online, and it prohibits taxing internet access and prohibits
• to a use tax liability.
• to a use tax liability.
• That converts the sales tax liability to a use tax liability.

Summary: The committee first received a presentation from Dr. Reich on the Economic and Revenue Forecast Council (ERFC), including how the council’s joint executive-legislative forecasting process works, the main state revenue sources, and recent economic conditions. He said Washington’s economy is slowing, with weak employment growth, softer taxable sales, and uncertainty from tariffs, federal spending, and the federal shutdown. He also noted that the September forecast was reduced, mainly because of lower sales tax and real estate excise tax collections, and that the state still expects modest growth rather than a recession. Members asked about whether Washington tends to lag national downturns and how forecast information should affect budgeting; Dr. Reich said the forecast is a revenue tool, not a budgeting decision, and that spending choices remain with elected officials. The Department of Revenue then presented on Washington’s sales and use tax structure and the implementation of Senate Bill 5814, which expands retail sales tax to several services effective October 1, 2025. Steve Ewing explained how sales and use tax are sourced, how reseller permits and the multiple points of use exemption work, and how the new law applies to live presentations, temporary staffing, investigations and security services, IT services, custom website development, advertising services, and custom software. He said DOR held listening sessions, issued interim guidance, and set up a centralized landing page and outreach efforts to help taxpayers understand the changes. He also described a six-month grace period for certain pre-existing contracts through March 31, 2026, but said penalties and interest still apply under the statute. Committee members raised concerns about how businesses and individuals will know when a service is taxable, who is responsible for collecting and remitting tax, and how sourcing will work for services delivered across multiple locations or online. DOR staff walked through examples involving accounting services, live lectures, virtual events, advertising campaigns, and search engine marketing, including the use of reasonable allocation and pool codes when exact sourcing data is unavailable. Members also questioned the administrative burden on small businesses and professionals newly subject to tax, and whether additional legislative fixes or relief from penalties and interest may be needed. No votes or formal actions were taken in the work session.

Transcript Highlights:

• They also have increases for property and general liability insurance.
• They also have increases for property and general liability insurance.
• , including technology, facilities, and other kinds of budgetary liabilities.
• Significant increases in liability insurance premiums and special assessments related to liability coverage
• respect to, all liabilities end up at the new.

Summary: The Assembly Budget Subcommittee on Education Finance met for its annual Proposition 98 overview, with Chair Alvarez outlining the committee’s focus on K-12 funding, student outcomes, and use of one-time funds. Superintendent Tony Thurmond gave an update on education issues, including wildfire recovery support for affected school communities, ongoing concerns about federal threats to education funding and immigration enforcement, progress on literacy and math, dual-language immersion, educator housing, and support for dual enrollment. Members broadly expressed support for these priorities, while also raising concerns about implementation, funding stability, and the need for schools to remain safe places for students. The committee then reviewed the Governor’s Proposition 98 proposal. The Department of Finance said the 2025-26 Proposition 98 guarantee is projected at $118.9 billion, with higher revenues and TK-related rebenching driving the increase. The LAO said the budget adds about $7.5 billion over two years and discussed the volatility of the guarantee, especially in 2024-25, when changes in revenue could have an outsized effect on school funding. Members questioned the proposed $1.6 billion delayed settle-up payment, the legal basis for delaying it, and the impact of possible federal funding freezes. The LAO presented alternatives such as a reserve deposit or delayed disbursement, while Finance said the proposal is intended to manage uncertainty. Members also raised concerns that ethnic studies implementation was not funded in the January budget, and Finance said the administration was not proposing funding for it. The committee next heard on the Proposition 98 rainy day fund and education deferrals. Finance said the reserve would receive a mandatory deposit of about $1.2 billion in 2024-25 and a discretionary deposit of $376 million in 2025-26, leaving a balance of about $1.5 billion. The LAO supported rebuilding the reserve as a way to manage volatility. On deferrals, Finance described the Governor’s plan to eliminate remaining deferrals by 2025-26, and the LAO said paying them off improves cash flow and budget resilience. Members generally supported eliminating deferrals and rebuilding reserves, though some asked about acting earlier if revenues allow. The committee also reviewed the proposed $1.8 billion student support and professional development block grant; Finance said it would fund professional development, recruitment and retention, and dual enrollment, while the LAO recommended clearer language on local discretion and use for one-time costs. Members were divided, with some supporting flexibility and others warning that one-time block grants can create instability and confusion for districts.