Transcript Highlights:

• We have a crime package that we passed, a behavioral health package, etc.
• What about the crime package?
• So it's fully funding the actual package.
• We could not tie the roads to the bond package.
• We found out that DOT sold a bond package—not this secretary, but a prior secretary—sold a bond package

Transcript Highlights:

• In total, the budget package appropriates approximately $17,960 million from the general fund in fiscal
• Because now it has allowed the Republicans to put together a package that we believe will help Arizonans
• Okay, the next bill starts on page 14 of your caucus package, and this is staff 4139.
• So the next one is 4140 on page 15 of your package. Staff, Representative Livingston.
• We're just matching that. Effectively, that's all we're doing. It's really that simple.

Keywords: 1182, all

Transcript Highlights:

• Well, with this bonding package, he will.
• I just want to speak up in support of this bonding package.
• There's enough fees generated in this package to pay these bonds.
• $145 million match from the feds.
• Restriction with respect to maturity levels in this bonding package?

Keywords: 996, all

Transcript Highlights:

• Then we've got $171 million of federal formula match dollars.
• This bill, the amendments, make sure that DOT can completely match all federal match, 75/25, and also
• has enough money to match grants.
• They need $115 million just to match the grants.
• match and also have the matching for the grants.

Keywords: 908, all

Summary: The committee met to consider Senate Bill 2012, the Department of Transportation budget, with Representative Brandenburg presenting a detailed House amendment package and Speaker Robin Weisz explaining the overall funding strategy. The discussion focused on restructuring transportation funding streams, including moving Prairie Dog money into a flexible transportation fund, adjusting gas tax distributions, increasing the legacy earnings transfer from 7% to 8%, and authorizing a $155 million bond for Highway 85. Members also discussed DOT operations, bridge funding, rest areas, electronic titling, and the use of funds for grants to counties, cities, and townships. A separate provision would let the DOT consider whether local ordinances or policies unreasonably restrict permitted agriculture or energy projects when scoring grant applications, which drew significant debate about local control and whether the language was punitive. Testimony from Brandenburg and Weisz emphasized that the plan was intended to provide more predictable funding, preserve the ability to match federal dollars, and direct money where needs are greatest through a grant process. Weisz said the package was designed to simplify multiple revenue buckets, ensure DOT can meet federal match requirements, and free up money for the general fund while still supporting transportation needs. Several members raised concerns about whether cities, counties, and townships would receive as much as under the prior Prairie Dog structure, whether the bridge allocation was correctly reflected in the bill, and whether the local-policy language would penalize subdivisions that oppose energy projects. Supporters argued the state needed to protect revenue tied to energy development and that local governments would still receive distributions plus additional grant opportunities. The committee adopted the House amendment to SB 2012 by a vote of 19-1-3, then rejected an amendment to remove the local-policy language on a 5-15-3 vote. The committee then passed SB 2012 as amended on a 20-0-3 vote, with Representative Brandenburg designated as the carrier. The chair announced that Senate Bill 2014 would not be taken up at that time and the committee recessed until called back.

Transcript Highlights:

• So there are two pots in the Legislature's package.
• So there are two pots in the legislature's package.
• That is, well, every state has a specified federal match.
• So we support AB 109 and the entire package. Thank you. ...asset limit.
• Thank you for your HR1 mitigation package for counties.

Keywords: 987, senate, all

Summary: The Senate Budget and Fiscal Review Committee heard AB 109, the Budget Act of 2026, and related discussion of the legislative budget agreement. Committee staff and the Department of Finance described a two-year balanced plan with about $253 billion in General Fund spending, roughly $5.5 billion in higher assumed revenues than the May Revision, and about $36.5 billion in combined reserves. They said the package preserves or expands funding for schools and community colleges, child care, IHSS, Medi-Cal-related county administration, housing and homelessness programs, public hospitals, courthouse construction, and some criminal justice and prison-closure savings, while delaying or modifying several prior health care reductions and some Medi-Cal changes. Much of the member discussion focused on Medi-Cal, H.R. 1, and the impact on low-income and immigrant Californians. Several Democrats argued the budget protects vulnerable residents by delaying some cuts, funding county eligibility work, indigent care, public hospitals, and food banks, and rejecting the Governor’s IHSS cuts and asset-limit proposal. Republicans criticized the budget for assuming future revenues, relying on new taxes, and not doing enough to address the structural deficit or improve accountability. Members also raised concerns and support around homelessness funding, Prop. 36, judgeships and courthouse funding, transit and GGRF allocations, local journalism, Caltrans fleet spending, and a proposed “fair share” revenue measure that was not yet before the committee. Public testimony was largely supportive of the budget’s health and human services provisions, especially the rejection of IHSS cuts and the asset-limit proposal, and the inclusion of funding for child care, sickle cell centers, domestic violence services, trauma recovery centers, distressed hospitals, county eligibility work, and transit programs. Some witnesses representing hospitals and health plans cautioned about the effects of moving certain Medi-Cal populations to fee-for-service and about proposed tax changes affecting health care providers. The chair said revenue trailer bills were still being finalized and would likely come back later in the week; the committee then moved to public comment, with the chair limiting speakers to about one minute each.

Transcript Highlights:

• We have put together now packages on gun violence prevention and in response to Metro Surge.
• The Metro Surge package will take up when we come back after the break.
• There are, I think, 11 bills packaged together, many that were heard in multiple committees, masks, and
• Uh the Metro Surge package Metro Surge.
• So, we've got an uneven path in terms of just how we're matching things up.

Keywords: 918, senate, all

Summary: Senate leadership said members were working through a fast-paced, intense session before a break, with many committee hearings still scheduled and about 27 bills expected to be heard that day. The leader highlighted several priorities for when lawmakers return, including an independent Inspector General proposal, additional anti-fraud measures, and packages on gun violence prevention and the Metro Surge response. The Metro Surge package was described as roughly 11 bills dealing with masks in essential spaces, aid obligations for federal agents, civil-rights/Bivens issues, and BCA participation in investigations; the broader gun violence package includes school safety, mental health, an assault-weapons ban, and a ban on high-capacity magazines, though it still awaited Finance Committee action. The leader also said bonding remains a high priority and that the Senate plans to continue moving policy quickly after the break. On budget matters, the leader said supplemental funding is needed for Capitol and Senate building security, largely because of increased personnel and overtime costs. He also said HCMC needs a short-term financing step because it is under financial pressure, but that the issue points to broader instability in Minnesota’s hospital system, especially as other hospitals may face difficulties related to HR1. Other budget-related items mentioned included housing support, rental and heating assistance, energy assistance, small business aid, health care, and food support, with some governor-proposed tax and spending ideas possibly left out because they are not affordable. The leader said the Senate is still working on fraud legislation, including the Inspector General proposal and related enforcement and oversight measures, and expects House differences to be worked out in conference committee. He described the House as a question mark and said the two chambers are moving at different paces, but he hopes to resolve differences and send bills to the governor. He also noted a rough end to the Senate Jobs Committee, said Senator Champion is considering next steps, and said Senator Mohamed and other DFL members had sent the Attorney General’s anti-fraud bill through a different committee path. He added that legislator safety is a growing concern because members from both parties are receiving threats, and he is working with counsel on possible responses. On guns in the Capitol, he said the issue reflects broader divisions and that current law allows permitted carry after screening, though he is frustrated by those using the issue to provoke emotion.

Transcript Highlights:

• And they will say, NCIS let us know that there was a match. They often tell us how many matches.
• So, for instance, they could say there were three other matches.
• I mean, he's matched. For the perpetrator, then? I mean, he's matched, and obviously.
• Right, so depending on the perpetrator and the other matches, if none of the other matches chose to go
• But the match program or the CATCH program allows individuals to know that someone was matched and, knowing

Keywords: 970, all

Transcript Highlights:

• It doesn’t seem like the timeline is going to match. It’s going to be close, Mr. Chair. Mr.
• It may still be needed as part of your economic development package.
• Chairman, line 242 is one that's funding the medical school as part of the medical school package.
• If that comes as part of the ongoing package, but most of it is building out the IT systems.
• Package, but most of it is building out the IT systems. Senator Steinborn. Thanks, Mr. Chairman.

Bills: SB152, SB145, SB190, HB247

Keywords: telecommunications, low-income assistance, lifeline, broadband, rural broadband, universal service fund, public regulation commission, PRC, 911 surcharge, telecommunications relay service, VoIP, mobile service, internet affordability, digital equity, digital inclusion, rural internet, broadband infrastructure, eligible telecommunications carrier, ETC, tribal consent

Transcript Highlights:

• These spaces provide those opportunity. benefits agreements and matching with regional partners these
• That's the plastics pollution prevention and packaging producer responsibility program. Thank you.
• Packaging producer responsibility program. Okay, we'll let you begin.
• SB 54 represents the most ambitious reform of plastics and packaging management in state history.
• So, SB 54 represents the most ambitious reform of plastics and packaging management in state history.

Summary: The subcommittee heard presentations on the administration’s Proposition 4 spending plans for extreme heat mitigation and outdoor access, then took up SB 54 implementation, SB 707 textile producer responsibility, and recovery needs related to the Los Angeles fires at state parks. For the extreme heat chapter, agencies described funding for the Extreme Heat and Community Resilience Program, urban greening, urban forestry, fairground upgrades, and technical assistance for community-based climate programs. Witnesses emphasized that these are existing programs with strong demand, that technical assistance is important for reaching disadvantaged and tribal communities, and that the proposed funding would expand outreach and implementation capacity. Members asked for more detail on where funds have gone geographically, examples of successful projects, tree-planting totals, and how fairgrounds could better support fire staging and emergency preparedness. The LAO said the timing of the administration’s proposed funding generally made sense because the programs are already established, and no votes were taken. For outdoor access, State Parks, Fish and Wildlife, and Natural Resources described funding for new parks in underserved communities, deferred maintenance, state lands access, and several new or pending programs. State Parks said the park development program would fund roughly 48 projects and that deferred maintenance funding would address high-priority health, safety, and access needs. Fish and Wildlife said its lands program would improve visitor amenities and access on properties that often lack basic facilities. The Natural Resources Agency also outlined three newer outdoor-access proposals: expanding recreation in disadvantaged communities, enhancing natural resource values and trail access, and a nature/climate/education facilities grant program. The LAO distinguished between existing programs, which are ready to move forward, and the newer proposals, where the Legislature may want more input before funds are allocated. Members also raised concerns about park police vacancies, the need to track outcomes for accessibility investments, and whether Prop. 4 could help with wildfire-related recovery at state parks. CalRecycle then presented on SB 54, the plastics and packaging producer responsibility law, and members pressed hard on the delay in regulations. CalRecycle said it has held workshops, formed an advisory committee, selected the producer responsibility organization, and completed required baseline and covered-material reports, but needs more time to address complex comments and novel features such as source reduction and eco-modulated fees. Members expressed frustration that a statutory deadline was missed and asked for a concrete timeline; CalRecycle said it expects regulations in place by 2026, ahead of the PRO’s January 1, 2027 plan deadline. Finance said the Beverage Container Recycling Fund is currently healthy enough to support short-term loans for implementation. The committee also reviewed SB 707, the textile EPR law, which would create the nation’s first textile producer responsibility program; staff said the proposal would add positions and loan authority, and members noted the statutory deadlines for PRO approval, needs assessment, and later regulations. The hearing ended with discussion of the January Los Angeles fires’ damage to Topanga State Park and Will Rogers State Historic Park, where State Parks described extensive losses, emergency response work, and ongoing damage assessment. Members asked about FEMA eligibility, state funding sources, and community engagement in rebuilding, and the department said it is still assessing costs and will work with the public on reimagining the parks.

Transcript Highlights:

• And so that was the first-year match, and then they'll come back next year for the following year match
• So the general fund that is appropriated there is for the match.
• But they're telling us they don't get enough money there to match.
• That we are going to be rewarded greatly with a lot of matching dollars.
• And if there's a way to match money, they're gonna go in that direction.

Keywords: 996, all

Transcript Highlights:

• We talk about this doesn't match what we like. It doesn't match our heritage.
• It doesn't doesn't match what we like.
• made the area that sells the package made the area that sells the package liquor<02:12:31.119>
• allow it in the package liquor store. allow it in the package liquor store.
• going to be allowed within a packaged going to be allowed within a packaged liquor<02:17:19.439>

Keywords: 916, all

Transcript Highlights:

• And I just felt so grateful that it wasn't in our tax package. And so...
• And I just felt so grateful that it wasn't in our tax package.
• And I just felt so grateful that it wasn't in our tax package. And so.
• And I just felt so grateful that it wasn't in our tax package.
• So thank you so much for all the work on the tax package.

Summary: The House convened on the final day of session, observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, and for Representative Rosenwald’s father, then swore in and seated new members Boyles and Hodgers. The Speaker also outlined the chamber’s end-of-session priorities, including action on the budget and related conforming bills. The House then took up H.J.R. 5019, a constitutional amendment to expand Florida’s budget stabilization fund by raising the cap, requiring annual transfers, and allowing withdrawals for critical state needs. After sponsor explanations and questions about what would qualify as a critical need and how the fund might respond to possible federal funding cuts, the House adopted an amendment that added more flexibility for suspending transfers and withdrawals. The joint resolution then passed on final passage. Members next considered HB 7031, the tax package conference report. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or extends several sales tax exemptions and holidays, and makes changes affecting property taxes, local taxes, pari-mutuel taxes, and revenue distributions. Debate focused heavily on the new permanent exemption for ammunition and hunting-related items, the elimination of recurring housing trust fund and transit-related distributions, and the shift of some funding from recurring to nonrecurring status. Supporters argued the package provides tax relief and preserves annual budget flexibility, while opponents criticized the ammunition exemption and the reductions in recurring housing and transit support. The conference report was adopted and the bill passed. The House then passed HB 5017, which creates a debt reduction program funded by a recurring transfer from general revenue to retire state bonds early, and HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment. Finally, the chamber began explanation and questions on the General Appropriations Act conference report for fiscal year 2025-26, described as a $115.1 billion budget that is down from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major budget areas, including K-12 education, health care, transportation and economic development, agriculture and natural resources, higher education, state administration, justice, and information technology, highlighting funding for school choice, Medicaid, housing, transportation infrastructure, Everglades restoration, workforce programs, cybersecurity, and technology modernization.

Transcript Highlights:

• <00:26:27.279> to were able to have that matched to were able to have that matched to projects
• It's rare the total financing package.
• So for state match recommendations, since we're not needing to match the Infrastructure Investment and
• So for state match, recommendations.
• to match the since we're not needing to match the infrastructure<01:18:27.040> investment<01:

Keywords: 1183, house

Transcript Highlights:

• to operate an industrial hemp program on a national level, and CDFA harmonized our regulations to match
• The package includes a couple components and includes trailer bill language that I'll briefly walk you
• Last year alone, CalFresh and Market Match represented over $25 million of income to farmers.
• Last year alone, CalFresh and Market Match represented over $25 million of income to farmers.
• But I'm actually here today to discuss CNIP, or Market Match.

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.

Transcript Highlights:

• , that we have included in our package as well, such as... ...package that we have included in our package
• So that was the point of the extra worksheet with the middle class tax cut package.
• So what's in the governor's package is just full conformity.
• I'm sorry, you said in the governor's package—not that, excuse me, not in the package what our forms
• So what's in the governor's package is just full conformity.

Keywords: 1182, all

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

Transcript Highlights:

• There used to be an option that you could check that somebody holding a packaging retail permit could
• <00:15:48.320> retail somebody holding a packaging retail somebody holding a packaging retail
• So, um, I just want everybody to have full understanding: these retail packaging stores, they don't sell
• stores, they don't sell packaging stores, they don't sell multiple<00:18:58.960> products.
• and we're conforming the law to match and we're conforming the law to match what<00:21:09.840>

Keywords: Finance - Room 216, 29 January, 2026; 1:30 PM, 925, all

Summary: The committee took up a series of economic development, tax, retirement, alcohol, and property tax bills, with several members explaining that some measures were being extended through repealers or prepared as omnibus vehicles for later floor amendments. Early in the meeting, members discussed a bill extending the Healthcare Industry Zone Act repealer to 2028, noting MDA had requested additional language for a floor amendment and citing roughly $715 million in expected new investment and more than 3,000 jobs since 2012. The committee also passed SB 2832, extending the Mississippi Shoreline Tax Credit program to 2029 with an $8 million annual cap, and SB 2849, extending the SMART business research program repealer to 2028. SB 2843, changing eligible expenses for MDA site development and utility infrastructure readiness, SB 2847, rounding state and local cash charges to the nearest nickel, and SB 2865, a gaming-related tax credit for non-gaming capital projects at casino properties, were also explained and passed without opposition. The committee then considered SB 2882, which prohibits counties from requiring homestead exemption applicants to provide closing statements or disclosures, citing privacy concerns; it was passed. SB 2912, a PERS-requested bill allowing Roth contributions in the state deferred compensation plan and removing an earlier qualified domestic order provision, also passed. The committee next took up SB 2834 and SB 2838 as omnibus vehicles: SB 2834 was described as the Senate omnibus tag bill, and SB 2838 as the qualified resort status bill, which included an addition for a community college campus and golf course in western Mississippi. Both bills received reverse repealers and were reported out. A lengthy discussion centered on SB 2915, which makes technical changes to Mississippi’s native wine laws, removes a repealer, expands tasting room options, and addresses ABC pickup and delivery timing. Senator McMahon offered an amendment to strike the pickup language after consulting with the Commissioner of Revenue, saying the current warehouse setup did not support the option yet; the amendment passed. Senator Sparks raised concerns about ABC delivery delays, the impact on small retailers, and whether the bill could raise commerce clause issues by favoring in-state wineries, but the author said the language conforms to existing distillery provisions. After no further questions, the committee passed the committee substitute and then rose and reported, with the chair noting another meeting would likely be held the following week.

Transcript Highlights:

• There was another major reform to the tax... ...get a tax package.
• And I just felt so grateful that it wasn't in our tax package.
• And I just felt so grateful that it wasn't in our tax package. And so.
• And I just felt so grateful that it wasn't in our tax package.
• Thank you so much for all the work on the tax package.

Summary: The House met on the final day of session, swore in Representatives Boyles and Hodgers, and observed a moment of silence for the Minnesota House Speaker Melissa Hortman and her husband, as well as for Representative Rosenwald’s father. The chamber then moved into final budget work, with leaders outlining the plan to take up H.J.R. 5019, HB 7031, HB 5017, HB 5015, and then the general appropriations act once the Senate transmitted it. H.J.R. 5019, a proposed constitutional amendment to expand the budget stabilization fund, was explained and amended to raise the rainy day fund cap, require annual deposits, and allow withdrawals for critical state needs by a two-thirds vote; it passed 100-1. The House then adopted the conference report on HB 7031, the tax package. The bill repeals the business rent tax and aviation fuel tax, delays the natural gas fuel tax, creates or expands several sales tax holidays and exemptions, including permanent exemptions for disaster-preparedness items, hunting/fishing/camping items, and ammunition and firearms-related purchases, and makes changes to property, corporate income, local tax, and economic development provisions. Members debated the removal of recurring housing trust fund and transit-related revenue streams, the new ammunition exemption, and the data center tax changes; supporters argued the package reduces taxes and preserves annual budget flexibility, while opponents raised concerns about housing, transportation, and gun violence. The conference report passed 93-7. HB 5017, creating a debt reduction program funded by a recurring transfer to retire state bonds early, passed unanimously. HB 5015, the state group insurance conforming bill, which directs DMS to develop a formulary management plan and codifies the administrative health insurance assessment, also passed. The House then began explanation and questions on the fiscal year 2025-26 general appropriations act, described as a $115.1 billion budget that is down $3.8 billion from the current year and includes more than $12 billion in reserves. Subcommittee chairs summarized major spending areas, including pre-K-12 funding increases, health care funding for Medicaid, KidCare, nursing homes, opioid treatment, and mental health, transportation and economic development funding, environmental and water projects, higher education, state administration, justice, and information technology. Questions focused on school vouchers, inflationary pressures on school districts, and the adequacy of funding for housing, transportation, and other priorities.

Transcript Highlights:

• The tax forms as are currently out, do they match full conformity right now?”
• “The tax forms as are currently out, do they match full conformity right now?” “Mr.
• The bill that we're discussing right now, does that match full conformity and thus match the current
• I support the governor's middle-class tax cut package that will be good for people of Arizona.
• Chairman, I'm going to be proudly voting for this tax conformity package.

Bills: HB2011, HB2089, HB2090, HB2092, HB2477, HB2785

Keywords: individual income tax, subtraction, Arizona Revised Statutes, retirement benefits, adoption costs, charitable contributions, health insurance, premium payment, Arizona State Retirement System, contingent annuitant, long-term disability, benefits limitations, disability compensation, social security, retirement system, elected officials, ASRS, eligibility waiver, age 65, education savings

Summary: The committee first heard House Bill 2785, a tax conformity measure that would update Arizona statutes to conform to the Internal Revenue Code as of January 1, 2026, including retroactive provisions for tax year 2025. The sponsor and supporters said the bill would align state law with tax forms already issued by the Department of Revenue, provide certainty to filers, and deliver about $440 million in tax relief through provisions such as no tax on tips and overtime, a larger standard deduction, and a $6,000 senior deduction. Opponents argued the bill would significantly reduce state revenue, disproportionately benefit higher-income taxpayers, and should be considered alongside a broader budget plan. After debate and an amendment addressing retroactivity and foreign dividends, the committee approved HB 2785 on a 5-4 vote. The committee then took up several Arizona State Retirement System and education savings bills. HB 2089 clarified the health insurance premium benefit subsidy for retirees and passed unanimously. HB 2090 changed the disability determination period for long-term disability benefits from 24 months within a five-year period to a straight 24-month period and passed 8-1. HB 2092 allowed employees over age 65 to waive ARS participation within 30 days of becoming eligible and also passed 8-1. HB 2477 conformed Arizona’s 529 education savings plan to federal law, including expanded uses and a permanent rollover to ABLE accounts and Roth IRAs; testimony supported the cleanup and simplification, but some members raised concerns about the Roth rollover and possible use of transferred ESA funds. HB 2477 passed 5-3 with one present vote, and the committee then adjourned.

Transcript Highlights:

• This was a decision package because we couldn't fit it in our base.
• But we're just asking as a decision package for separate money for this.
• What was the governor's recommendation in the decision package?
• It's kind of like a match for the program.
• Is that the match?

Keywords: 908, all

Summary: The HR division continued work on the behavioral health budget, with members revisiting several funding items and generally agreeing to hold provider inflation increases until the full division picture is clearer. They tentatively supported additional funding for Community Connect and Free Through Recovery, as well as increases for the drug court program and peer support, while clarifying that some items were already in the House version and others were one-time or grant-related expenditures. The committee spent considerable time on a proposed $2 million behavioral health services program for nursing homes and basic care facilities. Senator Mathern brought revised language to describe a capitated payment model for training, consultation, and direct patient care for residents with medically based behavioral disorders and disruptive behaviors. Some members remained skeptical and wanted to see the amendment before deciding, but the discussion centered on whether the funding would help nursing homes accept patients who otherwise end up in state hospitals or acute care settings. Members also discussed several one-time funding items, including electronic health record and legacy system upgrades, network redundancy for the state hospital, partial hospitalization/intensive day treatment expansion, and a bathroom remodel at the Southeast Human Service Center. The committee restored the bathroom project to the original $972,000 estimate after concerns that the House reduction would not cover the needed ADA and plumbing work. They also debated a $12.96 million behavioral health facility grant for Altru in Grand Forks, with some members opposing it and others supporting it as a regional service expansion, but ultimately set it aside for later consideration. The meeting ended with staff flagging other sections of the bill, including the opioid settlement advisory language, the state hospital steering committee, behavioral health education grants, and the system of care grant. The chair announced that medical services would be taken up the next day, and members agreed to adjourn after planning to revisit unresolved behavioral health items and vote on the held bill later.

Transcript Highlights:

• Um so is it's basically going to be based on packaging. So um packaging.
• Um so is it's basically going to be based on packaging. So um packaging.
• Um so is it's basically going to be based on packaging. So um packaging.
• Um so is it's basically going to be based on packaging. So um packaging.
• match up the numbers. match up the numbers.

Keywords: 1189, house, all