Transcript Highlights:

• That's an example of a metric that we use very heavily in our contracts, as far as assessing liquidated

Summary: The committee convened an informational Division 3 Finance hearing focused on DHHS programmatic issues rather than budget line items. The chair emphasized that members should avoid questions requiring dollar figures and noted that the coming budget cycle would likely be difficult because revenues are expected to be tighter. Commissioner Lori Weaver said the department wanted to use the session to explain its functions at a high level, with more detailed presentations to follow, and to collect questions for later responses. Weaver outlined DHHS’s mission of supporting optimal health for state residents and described the department’s three main responsibilities: protection and prevention, client service delivery, and regulatory oversight. She said DHHS has eight divisions, a $3.6 billion total budget, about $1.217 billion in general funds, roughly a quarter of state positions, and personnel costs that are less than 11% of the budget. She also noted a recent hiring freeze, explained that the department did not request new positions except where required by law, and said vacancy rates had improved from 22% to 14% over the last two years but could rise again because of attrition and the hiring freeze. Weaver and CFO Nathan White then discussed why the DHHS budget is complex, explaining that it is built from multiple funding sources and is shaped by assumptions made months before the fiscal year begins, actual service demand, and cost allocation rules used to draw down federal funds. White highlighted maintenance-of-effort requirements, including TANF, where state spending is needed to secure federal matching funds and shortfalls can trigger penalties. At the committee’s request, DHHS agreed to provide a simplified historical accounting of TANF contributions to show how the match is assembled across positions, contracts, and other factors. The department also reviewed its roadmap, which Weaver described as a framework developed with staff and stakeholders around three themes: culture, community, and customer service. She highlighted priorities such as Mission Zero to end emergency department boarding, expanding access to community-based and residential behavioral health services, reducing reliance on institutional care, improving contract management with nonprofit and provider partners, using data dashboards to guide decisions, and investing in workforce stability and culture. No votes were taken; the main action was DHHS’s commitment to provide additional follow-up materials, including the TANF contribution breakdown.

Transcript Highlights:

• and that you approved to invest the ESF in a prudent way that maintains its purchasing power and liquidity

Bills: SB 1 , SB 1

Committee: Senate Finance

Summary: The Senate Finance Committee convened for its first hearing of the 89th regular session, confirmed a quorum, adopted committee rules by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the committee’s organization, introduced staff, and described the budget as conservative and focused on one-time investments. She highlighted major SB 1 priorities including property tax relief, full funding for public education formulas, teacher pay, school safety, border security, Medicaid growth, dementia research, energy and water infrastructure, transportation, wildfire suppression, and other capital and public safety needs. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending in 2026-27, with a projected $23.8 billion ending balance from the current biennium. He cautioned that revenue growth is returning to more normal levels and that lawmakers should avoid committing short-term surpluses to ongoing expenses. He also explained that the Economic Stabilization Fund is projected to hit its constitutional cap, meaning an estimated $5.6 billion in severance tax and related revenue would remain in general revenue in the upcoming biennium rather than flow into the fund. Senators discussed whether to raise or rename the fund and the implications of keeping more severance-tax revenue in general revenue. The Legislative Budget Board then gave an overview of SB 1 and the budget’s major funding changes. LBB staff explained that the bill is essentially flat at $332.9 billion in all funds, but includes large method-of-finance shifts and major property tax relief. They detailed how prior property tax relief enacted in the 88th Legislature grew from an estimated $18 billion to $22.7 billion because of higher property values and hold-harmless provisions, and said SB 1 continues that relief with a total of $51 billion in ongoing and new property tax support. Members asked extensive questions about the automatic growth in school tax compression, the constitutional homestead exemption, COVID-era federal funding, Medicaid assumptions, and the sunset of the non-homestead circuit breaker. No additional votes or final budget actions were taken beyond adoption of the committee rules.

Transcript Highlights:

• Um, I stopped drinking liquids in the morning to avoid having to use the restroom after that.
• Um, I stopped drinking liquids<00:39:43.440><c> in</c><00:39:43.599><c> the</c><00:39:43.760><c> morning
• </c><00:39:43.920><c> to</c><00:39:44.160><c> avoid</c><00:39:44.400><c> having</c> liquids in the morning
• to avoid having liquids in the morning to avoid having to<00:39:44.720><c> use</c><00:39:44.880><c>

Committee: House Judiciary

Transcript Highlights:

• And the powder version, which I know they use the liquid version the vets use, is unbelievable.
• And the powder version, which I know they use the liquid version the vets use, is unbelievable.

Committee: House Environment and Agriculture

Transcript Highlights:

• There's some malleability, some liquidity in those definitions.

Summary: The Senate Finance Committee met to hear interim charges on higher education transparency and on preventing fraud, waste, and abuse in state government. The chair emphasized accountability for taxpayer dollars and asked witnesses to address financial reporting, audit practices, and whether more frequent or comprehensive audits would improve oversight. Legislative Budget Board staff described how public university systems and most community colleges respond to requests about internal audit practices, noting that university systems generally follow a similar annual audit timeline and that community colleges use a more varied mix of internal and external audit arrangements. Members focused on gaps in reporting, especially Texas Southern University’s missing submissions for several years and Collin County Community College’s nonresponse to the LBB survey. The State Auditor’s Office then outlined its higher education audit work, including mandatory statewide single audits, DEI compliance audits, HUB and State Use Program audits, benefits proportional audits, and discretionary audits based on risk. The auditor said the office has released 43 higher-ed audit reports since fiscal year 2021 and has two audits in progress, and explained that internal audit reports from institutions help guide future audit selection. Senators pressed the office on the lack of enforcement authority, the value of internal auditors at each institution, and whether community colleges should have more standardized reporting and audit requirements. The auditor and general counsel said the SAO can refer suspected fraud to law enforcement but cannot itself enforce findings, while several senators suggested stronger clawback authority and more robust internal audit structures. The Texas Higher Education Coordinating Board explained that it collects annual financial reports, sources-and-uses data, and community college finance reports, and uses them for funding formulas and other reporting. It also trains governing board members and said it has limited regulatory authority, though community colleges must certify compliance annually and can lose eligibility for state funds if they do not. Members questioned the reliability of self-attested data, the adequacy of board training, and whether a single reporting structure would be more efficient. During public testimony, a ScholarShot representative argued for clearer, student-facing financial transparency so students can see total cost of attendance and the gap they must cover before enrolling.

Transcript Highlights:

• anti-desal message, and one of the candidates used a video of a rusty pipe issuing some kind of black liquid

Committee: Senate Water, Agriculture and Rural Affairs

Transcript Highlights:

• in the property to be able to finance those fees, because some investors want to retain as much liquidity

Committee: Senate Commerce and Consumer Protection

Transcript Highlights:

• necessary coordinates the rehabilitation of financially troubled companies and the takeover and liquidation

Committee: Joint Joint Committee on Ways and Means

Summary: The hearing in Barnstable opened with remarks from the House and Senate co-chairs about the importance of holding Ways and Means budget hearings on the Cape, especially given the region’s seasonal economy and infrastructure needs. The committee then heard testimony from Labor and Workforce Development Secretary Lauren Jones on the governor’s FY27 budget proposal. She highlighted funding for workforce programs including the Workforce Competitiveness Trust Fund, Career Technical Initiative, registered apprenticeship, YouthWorks, reentry workforce programs, and services for young adults with disabilities. She also discussed MassHire career centers, the MassHire Innovation Project, and the Department of Unemployment Assistance modernization effort, noting improved call wait times and claims processing, but acknowledging continued challenges and federal funding uncertainty. Members asked about job-seeker barriers such as child care, housing, and transportation; domestic outmigration of young workers; youth work permits; unemployment insurance costs and the COVID assessment on employers; and the state’s unemployment rate and UI trust fund solvency. Jones and Undersecretary Josh Cutler explained the difference between workforce training funds and the unemployment trust fund, described the statewide trigger that extends unemployment benefits from 26 to 30 weeks when regional unemployment averages 5.2 percent, and said the administration is reviewing the trust fund with labor and business stakeholders. They also said the administration is trying to preserve front-line DUA staffing while shifting resources to customer service and adjudication, including a Friday adjudication pilot and seasonal hires. Senators and representatives also pressed the administration on regional equity in workforce funding, especially for Hampshire Franklin MassHire, which was described as serving a large rural area with fewer resources than other regions. Administration officials said they are reviewing MassHire funding formulas and modernizing the system with a policy committee and state workforce board input, but did not offer an immediate fix. The committee also heard that early childhood education apprenticeships are expanding quickly, with state funding leveraged to secure federal grants and support new Grow Awards. The hearing then moved to the Executive Office of Economic Development, where Secretary Eric Paley outlined House 2 proposals for economic development, including support for the Community One Stop for Growth, rural economic development, workforce partnerships, life sciences, advanced manufacturing, AI, small business assistance, tourism, and tax incentives. Undersecretary Leila D’Amilia followed with testimony on consumer affairs and business regulation, describing funding for consumer protection, banking oversight, occupational licensure, and public safety inspections.

Transcript Highlights:

• necessary, coordinates the rehabilitation of financially troubled companies and the takeover and liquidation

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• Our business primarily involves working closely with insurance companies to liquidate vehicles that have

Bills: HB1984 , HB1593 , HB2423 , HB1691 , HB2283 , HB2386 , HB1824 , HB1697 , HB2164 , HB2165

Committee: House Consumer Protection & Commerce

Summary: The committee heard testimony on HB 1984 HD2, which would require government entities issuing building permits to create a self-certification process for certain behind-the-meter rooftop solar and energy storage systems, allowing approved applicants to proceed without waiting for standard permit review. The Public Utilities Commission and DLNR offered comments, and the Hawaii Solar Energy Association, Holoholo Energy, Photon Works Engineering, Malama Solar, RevoluSun, and others testified in strong support. Supporters said the bill would reduce permitting delays, lower costs, and help meet Hawaii’s renewable energy goals while still relying on licensed engineers, electricians, and county inspections for safety. Committee members asked about risk, existing county pilot programs, and whether self-certification had been used before; witnesses said the professional liability remains with licensed signers and that current automated review systems often flag minor issues that slow projects. The committee also noted 16 additional written testimonies in support. The committee then took up HB 1593 HD1, which would require HHFDC-financed affordable rental housing projects to allow residents to own or keep common household pets. The Hawaiian Humane Society testified that the bill is a top priority because housing restrictions are a major reason pets are surrendered and because many unhoused residents with pets avoid housing that does not allow animals. In response to questions, the Humane Society said concerns about pet-related damage are overstated, suggested pet behavior screening as a safeguard, and said it would be willing to work on broader private-market pet-friendly housing policies. Members raised concerns about whether allowing pets in public housing could create problems for residents who later transition to the private market, and the witness said California has a similar law and no major negative effects had been identified. Finally, the committee heard HB 2423 HD2, which would require that by January 1, 2028, diesel fuel sold in Hawaii for on-highway vehicles contain at least 5% biodiesel by volume. The Hawaii State Energy Office offered comments, and Hawaii Transportation Association and Pacific Biodiesel Technologies testified in support. Pacific Biodiesel argued the mandate would improve energy security, stabilize fuel prices amid global supply disruptions, and support local clean-fuel production. In response to questions, the company said its nameplate capacity is 5.5 million gallons per year and it has produced over 6 million gallons annually, but much of its output is tied up in standby generator contracts that can fluctuate. Witnesses said the mandate would provide a stable market signal and could support future investment in expanded local biodiesel production, including agricultural feedstock development and a possible second refinery. No votes or final actions were taken during the portion of the meeting provided.

Transcript Highlights:

• And the ability to liquidate that into cash should not be restricted."

Bills: HB0098 , HB0075 , HB0041 , HB0101

Committee: House Revenue

Transcript Highlights:

• Uh, it's through gas chromatography or liquid chromatography, depending on the matrix, right?

Summary: This joint informational briefing of Senate and House committees focused on restricted use pesticides in Hawaiʻi, with opening remarks framing the issue as one of health, environmental impact, and state-level regulation. The briefing reviewed the history of pesticide disclosure efforts, including prior county actions, a 2016 court ruling that shifted responsibility to the state, and Act 45, which enabled disclosure of restricted use pesticide data. Speakers highlighted 2019 reporting data showing concentrated use in parts of Oʻahu and Kauaʻi, especially near schools and communities, and identified fumigants such as 1,3-dichloropropene and metam sodium as among the heaviest-used products. Concerns were raised about potential links to cancer, respiratory illness, reproductive harms, Parkinson’s disease, and developmental effects, as well as the lack of long-term mixture studies and the need for better buffer zones, reporting, and farmer transition support. The Department of Agriculture’s pesticides program manager described the state’s regulatory framework, explaining the distinction between general use and restricted use pesticides and the department’s role under FIFRA and Hawaiʻi law. He outlined the branch’s enforcement, education/certification, registration, and laboratory functions, including inspections, complaint response, market surveillance, applicator certification, product review, groundwater protection modeling, and special registrations. He also noted staffing and resource limitations, including the absence of an in-house toxicologist and long-term monitoring capacity, and compared Hawaiʻi’s resources to California’s much larger pesticide regulatory program. He said the department supports Act 231, which was passed the previous year and is moving forward this session. A pediatrician speaking for the Hawaiʻi chapter of the American Academy of Pediatrics emphasized concerns about chronic low-level pesticide exposure in children, citing AAP policy statements and technical reports that associate exposure with cancer, leukemia, birth defects, neurobehavioral issues, and asthma. Drawing on work with the Kauaʻi Joint Fact Finding Task Force, the speaker said the group found the west side of the island to be an unhealthy community but could not prove causation because of missing drift, geospatial, and biomarker data. The testimony pointed to elevated cancer mortality, pneumonia admissions, obesity, dialysis, and developmental delay indicators, and described concerns about pesticide drift near schools and homes, including reports of children becoming ill after nearby spraying and low levels of chlorpyrifos detected in dust samples. An environmental health scientist from the University of Hawaiʻi described a pilot project using restricted use pesticide data in a public health context. She said the project began after seeing maps of Central Oʻahu pesticide use and aimed to pair GIS data with health and ethnicity data, while also conducting community focus groups. Preliminary focus group themes included calls to action, voting and policymaker awareness, concern about pesticide use near homes and fields, lack of community consent, and a desire to stay engaged. No votes or formal committee actions were taken during the briefing.

Transcript Highlights:

• what I'd call asset-rich, cash-poor businesses, like farms and ranches, they will probably have to liquidate

Committee: Senate Judiciary

Summary: The Judiciary Committee heard several bills on January 30. SB 286 and SB 287 both concerned supplemental funding for the Honolulu Department of the Prosecuting Attorney: SB 286 for the career criminal prosecution unit and SB 287 for the victim witness assistance program. Testimony from the department explained that these bills are filed each year because the Attorney General’s core budget allocation may not be sufficient, though the department said the core had recently been increased and the supplemental request might no longer be necessary. For SB 287, the department also warned of a possible federal Victims of Crime Act funding freeze that could cut about $1.88 million and severely harm victim services. Both bills drew support from county and community witnesses, and members asked about prior-year funding and why the requests were limited to fiscal 2025-26; no votes were taken in the excerpt. SB 289, from the State Ethics Commission, would create a more uniform administrative fine process under the ethics code and lobbyist law. The commission said the measure would not change substantive enforcement but would let it issue a notice and order of fine first, with the respondent able to request a hearing within 20 days, which would speed up cases that are not factually disputed. Members questioned whether the bill would deny due process or function like an automatic parking ticket, and the commission responded that respondents could still challenge the fine and that the process would apply to violations with fines under $1,000. The committee also heard SB 304, which would add 11 positions for the First Circuit Adult Client Services Branch; Judiciary testimony said probation caseloads are high, with an average of 116 cases per officer, and the added staff would help meet national supervision standards and better serve higher-risk clients. Members asked whether the positions were already in the budget and about current staffing ratios; the witness said the positions were not already funded and that the Judiciary supported the bill with amendments. The committee then heard SB 311, a proposed constitutional amendment to exclude spending money to influence elections from protected free speech. Testimony was strongly divided: supporters argued that Citizens United has distorted elections and empowered special interests, while opponents warned the language was too broad and could affect nonprofit advocacy and grassroots groups. Finally, SB 313 would impose a 1% wealth asset tax on individuals with $20 million or more in assets. The Department of Taxation said it had concerns about the bill’s ambiguity and administration and noted it would require annual valuation and likely additional resources; opponents, including family business representatives and the Tax Foundation of Hawaii, argued the tax would be difficult and costly to administer, would require sensitive business disclosures, and could force family businesses to pay from company cash. Supporters said wealthy residents should pay a fair share. The committee heard testimony and questions on these bills, but the excerpt does not show final committee votes or actions.

Transcript Highlights:

• Once they get that allocation, to your point, the cottage industry is now you've basically created liquid
• It creates a lot of liquidity. ...and optionality in the market. But that's typically how it works.

Summary: The Senate Business and Commerce Committee held its third interim hearing on Texas electric grid reliability and 765 kV transmission lines/private property rights. Chair Schwertner opened by noting record ERCOT summer demand of 91,089 MW and emphasized the committee’s focus on managing rapid load growth, ensuring adequate generation, and protecting homeowners, businesses, landowners, and ratepayers. The committee also adopted strict two-minute limits for public testimony and planned to hear invited witnesses first, then public testimony. PUC Chairman Thomas Gleeson, ERCOT CEO Pablo Vegas, and OPUC Chief Counsel Benjamin Barclay testified on Senate Bill 6 implementation, large-load interconnection, transmission cost allocation, and market design. Gleeson said the PUC has adopted or is finalizing rules on net metering/co-location, large load interconnection standards, and a transmission cost recovery rule that would move from 4CP to 12CP, lengthen the interval to 30 minutes, and add a minimum demand charge to better allocate costs to large loads. Vegas explained ERCOT’s new batch process for large loads, saying it provides year-by-year capacity allocations, clearer financial obligations, and a transmission plan; he reported 205 GW eligible for Batch Zero, with 65 GW classified as baseload, 25 GW in an intermediate category, and 114 GW as allocated load. Barclay supported the changes as better protection for residential and small commercial customers, while warning that the minimum demand charge may need an exit-fee concept to address stranded costs if large loads leave. Members pressed witnesses on whether additional market changes are needed to attract dispatchable thermal generation and whether DRS/DRRS Plus could become a capacity-market substitute. Gleeson and Vegas said the current market still favors solar, batteries, and other low-variable-cost resources, and that more incentives may be needed for gas and other thermal generation; Gleeson said the commission’s reliability standard assessment will begin this year and conclude next year with a 2029 outlook. They described DRS as an ancillary service for intraday reliability and DRS Plus as a proposed real-time revenue mechanism for thermal resources during scarcity, not a forward capacity market. Senators also questioned whether 12CP could still be gamed, whether curtailment authority under SB 6 should be expanded from EEA 2 to earlier stages, and whether the batch process should be bifurcated so traditional industrial loads are handled differently from data centers. Witnesses said the batch process is intended to prevent speculative projects from driving transmission costs, that most large-load projects are data centers, and that future rules may need to better distinguish among types of large loads.

Transcript Highlights:

• bill modernizes the treatment of reciprocal deposits to help small banks and midsize banks improve liquidity
• bill modernizes the treatment of reciprocal deposits to help small banks and midsize banks improve liquidity

Transcript Highlights:

• If over time there is no remedy, there are financial actions we can take, such as liquidated damages,

Committee: Senate Health & Human Services

Transcript Highlights:

• said, "No, we might have to intubate her, but you can breastfeed her because breast milk is a clear liquid

Transcript Highlights:

• It liquidated. words mean nothing. Um, words mean nothing.

Bills: HF3718

Committee: House Agriculture Finance and Policy

Transcript Highlights:

• 54.480><c> it</c><01:38:54.639><c> on</c><01:38:54.800><c> a</c> Their inventory and sell it on a liquidated

Bills: SF1750 , HF704 , HF3479

Committee: House Commerce Finance and Policy

Transcript Highlights:

• The HPIA board has had to liquidate a portion of its investment portfolio, um, between two and five million