Transcript Highlights:

• And when you're inside those discussions, those capital dollars, it's a competitive market.
• So it does not matter how much they're capitalized; that business model is not sustainable.
• resource areas, specific sites, or other areas with critical infrastructure or assets.
• acquire these wells from less-capitalized companies.
• So when you devalue a company's assets, it makes them less healthy, restricts access to capital, and

Summary: The committee heard a long series of bills, beginning with AB 2026 on groundwater recharge. The author and supporters said the bill would streamline permitting for recharge projects, codify long-standing CEQA exemptions for flood diversions to recharge, and add tribal consultation and other guardrails. Water agencies and local districts supported the measure as a way to capture high-flow water and reduce groundwater subsidence, while environmental groups and some irrigation districts opposed it, warning that the bill’s exemptions and broader diversion authority could harm rivers, Delta resources, and public trust values. The bill was discussed but not voted on because the committee lacked a quorum at that point. The committee then took up AB 1577 on data center energy accountability, which would require monthly reporting of energy-use data and permit-related estimates of energy and water demand. The author and the Little Hoover Commission argued the bill would improve transparency, help protect ratepayers, and give regulators better information for grid planning. Data center industry representatives opposed it as duplicative, burdensome, and uniquely targeted, while local governments, environmental groups, and some utilities supported it or supported it if amended. The bill was later reported out with a due pass recommendation once a quorum was established. Members also heard AB 2245 on a producer responsibility program for lubricant products and containers, AB 2170 on CEQA language-access and environmental review protections for overburdened communities, AB 2059 on rural transportation and VMT mitigation, AB 1808 on Western Joshua tree permitting and fee relief, AB 2182 on industrial energy efficiency program changes, and AB 2231 on streamlining two hospital projects. Testimony was mixed on most of these bills: supporters emphasized affordability, local control, environmental justice, or project urgency, while opponents raised concerns about CEQA scope, regulatory duplication, costs, and environmental impacts. Several measures received due pass recommendations and roll-call votes, including AB 2170, AB 2059, AB 1808, AB 2182, and AB 2231, with some members voting no or not voting and some bills left open for absent members.

Transcript Highlights:

• Members, I'm Stan Barnes, Carver State Consulting Group, here representing Water Asset Management.
• Chairman, it's Water Asset Management. They're an investment firm. They raise capital.
• So technically, let's talk about the asset that they purchased was originally in the bill, was originally
• It is the private sector that is willing to risk the capital to raise that money and risk that money
• The current system uses a capitalization rate designed specifically for agricultural land based on real

Committee: Senate Senate Natural Resources Committee of Reference

Summary: The committee first heard an informational presentation on transportation fuel supply in Arizona from Gordon Shemp of Nemecu Analytics. He described Arizona’s dependence on pipeline deliveries, limited terminal inventories, and the resulting vulnerability to outages and price spikes. He also discussed recent refinery closures in California, increased imports from overseas, and a proposed Kinder Morgan project that could add east-to-west capacity into Phoenix. Committee members asked about fuel formulations and how many fuel types move through the system; Shemp said the project would not change destination fuel specifications and that multiple fuel products already move through the pipelines. The committee then took up House Bill 2758, which would allow groundwater transport from the McMullen Valley basin to an initial AMA and related uses, with provisions for eligible entities, transportation fees, and water improvement programs. Supporters, including Stan Barnes, Jim Downing, and Barry Arons, argued the bill follows the 1991 transfer-basin framework, provides needed water augmentation for urban Arizona, and includes local benefits and guardrails. Opponents, including La Paz County Supervisor Holly Irwin, Devonna Sater, and Ed Curry, said the bill would worsen groundwater decline, subsidence, and well failures in Salome and Wenden and favored rural communities being used to solve urban water shortages. The committee approved HB 2758 on a 4-3 vote. The committee also considered HB 2078, which clarifies that certain aggregate mining reclamation notice requirements apply only to new reclamation plans and new aggregate operations, not existing mines. The sponsor said the bill fixes confusion from prior legislation, and the committee passed it 5-0. HB 2031, extending the deadline for applying for a certificate of grandfathered right in the Wilcox AMA from 15 to 27 months, also passed after some members argued the extension was needed for affected applicants while others said it would delay needed protections. HB 2102, allowing county improvement districts in certain basins to use eminent domain for a well and standpipe site and to operate domestic water delivery systems, and HB 2103, allowing gifts and fee revenues to support water hauling and local water improvement programs, both passed 4-3 despite opposition that they were only partial fixes. Later, HB 2117, which increases the annual distribution cap for conservation district education centers and shifts Environmental Special Plate Fund disbursements to the Natural Resource Conservation Board, passed 5-2 after supporters called it a technical cleanup and one member objected to changing the administering entity. HB 2261, revising agricultural property tax valuation terminology and requiring income-based valuation for agricultural real property, passed 4-3 after assessors and county representatives warned it would remove agricultural improvements from the tax rolls and shift costs to homeowners, while farm groups said it would clarify and stabilize agricultural taxation. Finally, HB 2262, transferring the Resource Analysis Division from the State Land Department to the Arizona Geological Survey and changing related geospatial advisory duties, was presented with State Land Department concerns that the bill left several duties and funding questions unclear; the transcript ends before any final action on HB 2262.

Transcript Highlights:

• The current number, 47 billion of state estimates. assistance, 81 total capital costs, a billion.
• If you want to keep your assets, you get to keep your assets but still take advantage of the PUA. want
• to transfer your assets to the PUA, go ahead.
• Another entity that wants to join under the same umbrella may We want to retain their assets, retain
• The bank received a capital infusion that puts us in a better position to continue. new funding projects

Bills: HB 1089 , HB 1163 , HB 1177 , HB 1238 , HB1318 , HB1400 , HB1407 , HB1532 , HJR7 , HJR7

Committee: House Natural Resources

Keywords: coastal protection, environmental management, Gulf Coast, storm risk management, funding, Texas General Land Office, healthcare, insurance reform, patient access, insurance regulation, affordable care, health insurance, consumer rights, coverage transparency, claims process, insurance regulations, aggregate production, environmental impact, financial responsibility, reclamation

Transcript Highlights:

• </c><00:39:27.480><c> base</c><00:39:27.760><c> as</c> the asset base as the asset base as well<00:39
• That's a pretty high asset limit.
• That's a pretty high asset limit.
• The median asset limit is $63,000. The average asset limit is $91,600.
• </c> is 35,000 to 500,000 the median asset is 35,000 to 500,000 the median asset limit<04:55:19.840><

Committee: House Municipal and County Government

Transcript Highlights:

• It's what transfers asset to asset.
• </c><01:10:16.320><c> It</c> see it is digital only assets. It see it is digital only assets.
• It's what transfers<01:10:55.040><c> asset</c><01:10:55.440><c> to</c><01:10:55.679><c> asset.
• Um so this transfers asset to asset.
• </c> what I would call it or digital asset. what I would call it or digital asset.

Committee: Senate Elections

Transcript Highlights:

• and the commercial interest in specific assets.
• Near-term opportunity for commercial interest to protect assets.
• by asset.
• Reactive means we hear a specific asset closure, and we respond by incentivizing that specific asset
• We have to not react, so we should put less focus on bucket one by reacting to asset by asset.

Summary: The Assembly Committee on Utilities and Energy held a hearing on the impact of the Iran conflict and global oil supply disruption on California fuel markets. Committee members and administration witnesses from the California Energy Commission and the Division of Petroleum Market Oversight described California’s heavy reliance on imported crude and refined products, the state’s shrinking refining base, current inventory levels, and how global supply tightness is affecting gasoline, diesel, and jet fuel prices. CEC officials said near-term supply looked adequate for roughly the next six weeks, but warned that continued disruption would likely raise prices further and increase competition for imports. DPMO said the conflict is a real supply shock, but also emphasized a separate, longstanding problem of unusually high California retail gasoline prices, especially among major branded stations. Witnesses and members debated the causes of high prices and the state’s longer-term fuel strategy. Professor Severin Borenstein argued that much of the price gap beyond taxes and environmental costs comes from a “mystery gasoline surcharge” downstream of refineries, while also noting that California’s shrinking number of refineries creates market-power and supply-resilience concerns. Western States Petroleum Association CEO Jody Mueller argued that state policies have weakened California’s refining system and made it more vulnerable to global shocks, urging the state to protect remaining refining capacity and improve infrastructure for imports. United Steelworkers Local 675 Vice President Norman Rogers stressed the need for safe, reliable refinery operations and adequate staffing. Several members pressed witnesses on whether California should rely more on imports, how to manage inventories and port/storage capacity, and whether the state needs clearer authority and better data collection to coordinate fuel policy. Discussion also covered branded versus unbranded gasoline pricing, the role of California fuel specifications, and whether a floating gas tax or other policy tools could buffer consumers from global price spikes. No formal votes or committee actions were taken during the hearing.

Transcript Highlights:

• Brooks talk about our capital outlay. Thank you, Madam Chair and committee.
• Oftentimes with schools, capital can only be used for capital, and operational funds are essentially
• Capital Outlay Council?
• Is that something you'd want to invest in, or something we could give capital outlay to?
• And if you—so you can get capital outlay from us, right? Correct?

Committee: House Science, Technology & Telecommunications Committee

Transcript Highlights:

• areas, with many of those centers located near transit, services, schools, and other really important assets
• And I believe our legislature wants to emphasize long-term value and leverage private and nonprofit capital
• And I believe our legislature wants to emphasize long-term value and leverage private and nonprofit capital
• But it's very challenging to raise the capital funds needed to build this housing.
• in the Central District, where so many of the churches are, as we noted earlier, property rich or asset

Bills: HB1717 , HB1859

Committee: House Finance

Keywords: affordable housing, sales tax, housing programs, tax incentives, economic development, religious organizations, development, housing opportunities, land use

Transcript Highlights:

• areas, with many of those centers located near transit, services, schools, and other really important assets
• And I believe our legislature wants to emphasize long-term value and leverage private and nonprofit capital
• But it's very challenging to raise the capital funds needed to build this housing.
• in the Central District, where so many of the churches are, as we noted earlier, property rich or asset
• what happens... ...to the religious organization when all of a sudden you're losing the property, the asset

Summary: House Finance heard testimony on two affordable housing bills. House Bill 1859 would expand an existing density bonus for housing on religious organization property by lowering the affordability threshold from 100% to at least 50% affordable units, requiring local policies to implement the bonus upon request, and creating a new state and local sales and use tax exemption for qualifying projects with at least 50% affordable units maintained for 10 years. The sponsor and supporters said the bill would help projects on church-owned land pencil out amid high construction and financing costs, while a county association raised concern that the bill would create an unfunded mandate for local planning departments. Several witnesses also asked that homeownership projects be explicitly included, and staff confirmed the exemption would be administered through an exemption certificate. The committee then moved to House Bill 1717, which would authorize cities and counties to create a local sales and use tax remittance program for affordable housing developments. Staff said the remittance would cover 100% of local taxes paid after project completion, with a 50% affordable housing threshold and 40-year affordability requirement, and the sponsor and local government and housing advocates supported it as a flexible tool to reduce development costs. Testifiers generally backed both bills, with some asking for more flexibility on income targeting and clarification on county-city interactions under HB 1717. No votes were taken; both public hearings were closed and the committee adjourned after a separate work session on the Working Families Tax Credit, where advocates urged broader eligibility, higher benefit amounts, and easier access, and a California researcher described data-linking methods used to improve tax credit take-up.

Transcript Highlights:

• We did test appropriation laws surrounding one-time funding and capital building funds and made sure
• We have three main coverages: liability, public assets, and auto.
• They are assets in that position only. They have no debt. So other jurisdictions within, uh...
• initiatives, loans, collateral support, and capital access programs.
• And then underneath the capital program, you have what's called the direct investment program.

Committee: Joint Legislative Audit and Fiscal Review Committee

Transcript Highlights:

• Effective January 1, 2026, the bill reinstates the Medi-Cal asset limit at $130,000 for an individual
• It also includes an appropriation for Caltrans to begin up to $20 million in Olympics-related capital
• The work to change the asset test to ensure that people are not kicked off Medi-Cal because they have
• Ambulance bases are reconsidering their position on their assets because it's been almost two years with
• Moving forward, we rely on about 15% of that funding to support our operators, both on the capital side

Committee: House Budget

Transcript Highlights:

• complex, uh DFA will move of the capital complex, uh DFA will move that<00:03:09.120><c> agency</c><
• We did not other state assets that we do.
• We've got billions of dollars of that and assets, and it's very eye opening to what we have.
• We did not other state assets that we do.
• We've got billions of dollars of that and assets, and it's very eye opening to what we have.

Committee: Joint Public Property

Transcript Highlights:

• However, it's very important that we take an asset, like I said last week, and you elevate that asset
• But the universities are in control because you want to elevate the asset.
• But the universities are in control because you want to elevate the asset.
• This is elevating an asset for the benefit of the state.
• This is elevating an asset for the benefit of the state. This is a hot asset. Let's make it grow.

Bills: SB524 , SR108 , SR109 , SCR56 , SCR57 , SCR12 , HB227 , HB398 , HB689 , HB897 , HB1029 , HB1107 , HB1217 , HB221 , HCR58 , HB136 , SB162 , SB382 , SCR33 , SCR30 , SB112 , SB194 , SB307 , SB341 , SB346 , SB363 , SB495 , SB503 , SB507 , SB509 , SB513 , SB408 , SB131 , SB145 , SB333 , SB464 , SB466 , SB500 , SB283 , SB338 , SB488 , SB35 , SB65 , SB215 , SB228 , SB246 , SB249 , SB268 , SB269 , SB282 , SB296 , SB312 , SB319 , SB323 , SB369 , SB431 , SB474 , SB484 , SB490 , SB492 , SB501 , HCR14 , HB537 , HB652 , HB653 , HB661 , HB726 , HB756 , HB851 , HB964 , HB966 , HB34 , HB35 , HB48 , HB474 , HB553 , HB758 , HB852 , HB10 , HB16 , HB36 , HB44 , HB46 , HB52 , HB61 , HB78 , HB98 , HB102 , HB124 , HB126 , HB131 , HB135 , HB141 , HB142 , HB164 , HB170 , HB171 , HB179 , HB194 , HB231 , HB245 , HB280 , HB292 , HB294 , HB297 , HB305 , HB336 , HB337 , HB351 , HB436 , HB594 , HB789 , HB956 , HB957 , HB995 , HB1040 , HB50 , HB117 , HB120 , HB122 , HB139 , HB148 , HB149 , HB185 , HB199 , HB247 , HB271 , HB286 , HB301 , HB358 , HB359 , HB384 , HB413 , HB428 , HB450 , HB462 , HB547 , HB613 , HB631 , HB657 , HB669 , HB675 , HB680 , HB691 , HB712 , HB716 , HB720 , HB723 , HB727 , HB728 , HB735 , HB747 , HB759 , HB825 , HB842 , HB845 , HB846 , HB903 , HB904 , HB907 , HB923 , HB929 , HB941 , HB962 , HB965 , HB1036 , HB287 , HB370 , HB515 , HB521 , HB570 , HB1200 , HB29 , HB39 , HB58 , HB67 , HB73 , HB76 , HB77 , HB82 , HB112 , HB121 , HB125 , HB132 , HB134 , HB151 , HB154 , HB155 , HB161 , HB166 , HB187 , HB191 , HB207 , HB211 , HB224 , HB238 , HB241 , HB242 , HB250 , HB260 , HB265 , HB275 , HB300 , HB320 , HB338 , HB339 , HB349 , HB379 , HB399 , HB427 , HB463 , HB464 , HB468 , HB545 , HB550 , HB551 , HB565 , HB588 , HB639 , HB725 , HB782 , HB805 , HB808 , HB834 , HB847 , HB853 , HB858 , HB861 , HB883 , HB916 , HB937 , HB977 , HB1012 , HB1027 , HB1044 , HB1054 , HB1071 , HB1091 , HB1117 , HB119 , HB129 , HB677 , HB850 , SB68 , SB149

Keywords: Jump Start, career and technical education, CTE, career diploma, career pathways, workforce development, high school diploma, career major, individual career and academic plan, ICAP, individual graduation plan, IGP, work-based learning, apprenticeship, internship, dual enrollment, articulation agreement, transfer credit, rural schools, rural LEA

Transcript Highlights:

• It's going to have that heart to capitalize the eye. And I'll tell you what it came to sell.
• It's going to have that heart to capitalize the eye. And I'll tell you what it came to sell.
• Members, House Bill 3372 creates a revolving loan fund program for charter school capital expenditures
• When we use bond funds locally, when we use redbed funds on our public school districts, those assets
• When we use bond funds locally, when we use redbud funds on our public school districts, those assets

Bills: HB3327 , HB3711 , HB4104 , HJR1077 , HB3329 , HB4322 , HB4202 , HB4203 , HB4457 , HB3983 , HB3660 , HB3802 , HB2933 , HB2955 , HB2956 , HB3781 , HB3521 , HB3794 , HB3796 , HB3800 , HB3183 , HB4316 , HB4484 , HB3469 , HB3464 , HB3173 , HB3989 , HB3016 , HB2979 , HB2988 , HB2288 , HB3062 , HB3315 , HB3372 , HB3530 , HB3622 , HB3755 , HB4266

Summary: The Senate convened with a quorum, opened with prayer, and recognized several guests and groups, including the nurse of the day, Donna Reynolds; the Tuttle High School wrestling team; auctioneer and ringman honorees; the Bristow Chamber of Commerce; Deer Creek cross country; Guthrie High School AP U.S. government students; and family members of Senator Reinhardt. The chamber also held a live auction demonstration on the floor, with Brandon Mendoza and Logan Snyder participating, and the winning bid was announced as $675. The Senate later recognized Millwood High School boys basketball and Isaiah Wilkes, the Gatorade Oklahoma Boys Basketball Player of the Year. The body then considered and passed several House bills. HB 3016 created a two-year pilot vision screening program for kindergarten through third grade to identify convergence insufficiency disorders; it passed 34-10 and was declared an emergency. HB 2979 authorized the Department of Transportation to establish school zones on portions of state highways at local request and passed 41-0. HB 2288, a teacher return-to-work bill removing the earnings cap and allowing return after six months, passed 45-0 as an emergency. HB 2988 expanded the definition of harmful woody species and broadened the Terry Peach Water Restoration Act statewide; it passed 43-1. HB 362, defining retired municipal judges for firearm-carry authority, passed 40-4. HB 3315 directed the state regents to study whether some graduate programs could be 90 credit hours and report to the governor; it passed 38-6 as an emergency. Additional bills passed included HB 3372, creating a $5 million revolving loan fund for charter school capital expenditures, after extended debate over public funds being used for improvements to privately owned facilities; it passed 39-6. HB 3530 required ABLE Commission records to be provided within 10 days when requested and passed 44-0. HB 3622 created a U.S. decennial census revolving fund in the Department of Commerce and passed 32-11. HB 3755 established a financial mechanism for juvenile detention centers to provide medication to youth in their care and passed 43-0. HB 4266, the omnibus specialty license plate bill, passed 25-19 after questions about out-of-state university plates. The Senate then made announcements about upcoming committee meetings, birthdays, and schedule changes, and adjourned until Monday, April 27 at 1:30 p.m.

Transcript Highlights:

• One thing that they've been working on for a long time is the public school capital outlay amendments
• Time is the public school capital outlay amendments.
• We currently have paid for assets out of federal funds the last couple of years to launch the network
• And I think I might have missed some of these questions. but I'm wondering the Public School Capital
• For many years I served on the Public School Capital Outlay Task Force as a what we call it the impact

Committee: House House Appropriations & Finance

Transcript Highlights:

• So asset start planning solutions.
• Um, spatially map all of your assets.
• </c> do our school and state capital do our school and state capital construction<00:20:19.440><c> stuff
• :24:03.919><c> plans</c> already develop asset management plans already develop asset management plans
• </c> would agree that having these asset would agree that having these asset management<00:24:18.559>

Bills: SF0069 , SF0070 , SF0016 , HB0078 , HJ0002 , HB0085 , HB0086

Committee: Senate Agriculture, State and Public Lands & Water Resources

Transcript Highlights:

• And about a $138 billion national venture capital fund has been developed to accelerate commercialization
• That's a lot of money from venture capital, a lot of risk, very high risk, right?
• They just closed today a Series A round of venture capital.
• Using our assets, you know, we've been ranked number one, number two in astronomy and astrophysics for
• Using our assets, you know, we've been ranked number one, number two in astronomy and astrophysics for

Committee: House House Science & Technology Committee of Reference

Summary: The Committee on Science and Technology met with a full audience and began with brief introductions, including an intern from Arizona State University. The committee heard two presentations before taking up its only bill. The University of Arizona’s Thomas Diaz de la Rubia spoke about fusion energy, describing it as a potential clean, safe, baseload power source and arguing Arizona should build the talent, supply chains, and research infrastructure to commercialize fusion. Members asked about timelines, regulation, competition with China, and the relationship to small modular reactors; he said fusion could be commercially relevant in roughly 12 to 15 years if public and private investment continues, and that the U.S. should avoid losing manufacturing and supply chains as it did in other technologies. He also discussed the university’s broader space and national security work. XRDNA CEO Charles Ableman then presented a spatial addressing and coordination system called EVA, describing it as a way to align data about where and when physical objects exist across systems, with a security layer called a sphere of influence. He said the company is testing with space and logistics partners, uses AI provenance tools, and sees its near-term use case in space operations and interoperability. The committee then considered HB 2809, which would require state agencies handling sensitive or protected data to implement post-quantum encryption meeting or exceeding CMMC 2.0 standards, using a U.S.-based vendor and U.S.-developed or maintained components. The bill would place the master encryption key with the Auditor General and set procedures involving the Auditor General and Attorney General. Sponsor Rep. Gillette explained that the bill was simplified from a prior version after concerns that agencies would have to connect offline systems to the internet; the amendment clarified that encryption can be installed without internet connectivity and without requiring other systems to be online. He argued the measure is needed to modernize weak legacy systems and protect data after prior breaches and failed IT projects. Members generally supported the concept but raised questions about implementation, costs, vendor neutrality, and the Auditor General’s role; the Secretary of State’s office was described as neutral and still evaluating implementation. The committee adopted the Pingarelli amendment and then passed HB 2809 as amended on a 9-0 vote, with several members explaining that they supported the bill but wanted continued stakeholder input and careful attention to execution.

Transcript Highlights:

• Do this in 2025 with $191 million annual operating budget and a $276 million capital program.
• Personally, as a state and as state drinking water administrators, we've got to do a better job with asset
• We've got to do a better job. of making sure that our systems use proper asset management to make sure
• So as I said, we've worked with them since the 1990s and they've evolved every year looking at our capital
• plan, looking at the capital plan of other communities like Columbus.

Committee: Senate Environment and Public Works Committee

Keywords: Infrastructure Investment and Jobs Act, water infrastructure, lead service lines, federal reauthorization, sustainability, cybersecurity

Summary: The meeting primarily focused on discussions surrounding the Infrastructure Investment and Jobs Act (IIJA) and its implications for local water systems. Various witnesses highlighted the transformative impact of the bipartisan infrastructure law, which has provided an unprecedented amount of funding to help address long-standing issues in drinking water infrastructure, particularly concerning lead service line replacements and sustainability in water management. The discussions emphasized the urgent need for federal reauthorization to continue supporting these initiatives, as many rural and disadvantaged communities still face substantial barriers in upgrading their water systems. Additionally, cybersecurity risks were noted, raising concerns over the vulnerability of water systems across the nation.

Transcript Highlights:

• In Australia, PSP acquired major water assets during drought conditions and became a dominant player
• In Australia, PSP acquired major<00:27:19.679><c> water</c><00:27:20.240><c> assets</c><00:27:20.720>
• <c> during</c><00:27:21.039><c> drought</c> major water assets during drought major water assets during
• </c><00:32:59.279><c> Um</c> state capital conference room 224.
• Um state capital conference room 224.

Bills: HCR31

Committee: Senate Water, Land, Culture and the Arts

Summary: The joint committees on Water, Land, Culture, and the Arts and Housing first heard HCR 85, which urges the Department of Land and Natural Resources to transfer parcels in the East Oahu area. DLNR, OPSD, HHFDC, and HCDA testified, and the chairs noted an intent to keep revenues from the lands with DLNR while agencies collaborate until parcels are ready for substantive transfer. Both committees then voted to pass the measure as is, with the recommendation adopted. The committees also heard HCR 101 and HCR 166. HCR 101 was recommended to pass unamended and was adopted by both the Hawaiian Affairs and Water, Land, Culture, and the Arts committees. HCR 166, which asks DLNR to identify state lands in East Oahu suitable for planting native Hawaiian trees, received no opposition in testimony and was also recommended and adopted unamended by both committees. Later, the Water, Land, Culture, and the Arts committee took up several resolutions. HCR 36, establishing a sister-state relationship with Okayama, Japan, drew support from DBED, which highlighted educational, agricultural, and airport-related opportunities, and the committee moved it forward. HCR 19, designating March as March for Water Month, was supported by the Board of Water Supply. HCR 162, creating an arts data mapping task force, received support from DBED and arts advocates, including the Hawaii Youth Symphony. HCR 61, urging investment in reforestation policies, workforce, and nursery capacity, drew broad support from DLNR and multiple community testifiers emphasizing climate resilience, native forests, and storm recovery. The committee also heard HCR 106 on designating Waikīkī as a world surfing reserve, with support from the University of Hawaii, and HCR 14 on a perpetual non-exclusive easement for existing drainage improvements at Waikīkī, which DLNR said had already been approved by the board and only needed legislative passage to execute. HCR 178, concerning a county set-aside for East Maui public trust water resources, drew testimony from the East Maui Water Authority and others supporting local control and public stewardship, while HCR 179, directing the Aamoku Advisory Committee to follow its rules and comply with Sunshine Law, drew testimony both in support and urging amendments to preserve Aamoku’s independent, semi-autonomous role. Because quorum was not available, decision-making on the later measures was deferred to the end of the 3 p.m. agenda.

Transcript Highlights:

• And then they also offer us some capital funding. We have to match those funds.
• And depending on what you're getting it for, capital is an 80-20 match, sometimes 85-15.
• They've done several state capitals around the nation, including the U.S. Capitol.
• State capitals around the nation, including the U.S. Capitol.
• The assessments are also based on asset size for the credit unions.

Summary: The committee began with roll call, introductions of a new fiscal analyst and a new member, and approval of the March 19 minutes. The first major presentation was from the Office of Management and Budget on the state’s general fund and special fund status through May. OMB reported general fund revenues were running below the legislative forecast by about $76 million, driven largely by weaker individual income tax and sales tax collections, though the projected ending balance remained positive and above the budgeted level. The budget stabilization fund was above its cap and would transfer excess earnings to the general fund, and the legacy fund balance continued to grow. Members also asked about federal funding uncertainty and mineral leasing revenue variability. The committee then reviewed compliance reports and trust fund analyses, followed by discussion of a bill draft for the fixed-route city transportation network study. The draft would create a $15 million general fund grant program with a formula-based distribution to eligible fixed-route transit cities, intended to support operating and capital needs and help match federal transit funds. Transit officials from Minot and Fargo testified in support, explaining local fare and match structures and the difficulty of replacing aging buses and securing federal matching dollars. Several members questioned whether the program should be limited to the current four cities or broadened to future eligible urban areas, and whether local funding sources should be explored further. The committee did not finalize the bill draft at that point and planned to continue discussion at a later meeting. The committee also approved a bill draft repealing obsolete language related to approval of a bi-state authority with South Dakota, after staff explained that no agreements had ever been implemented and the provision appeared outdated. A roll call vote was taken and the motion carried. Later, the Department of Commerce and the Northern Plains UAS Test Site presented updates on uncrewed aircraft systems initiatives, including the Vantis radar data enclave, the drone replacement program, and efforts to build a revenue model for Vantis. Test site officials said FAA approval had been secured for the radar data program, replacement of noncompliant drones was underway, and future revenue could come from state and external users once pricing and intellectual property arrangements are finalized. Members asked about Chinese-made drones, supply chain issues, automation, and how the system would manage beyond-visual-line-of-sight operations. The Department of Corrections and Rehabilitation then presented on the design of a new minimum-security prison and a reentry housing study. Officials said the proposed facility would relocate the minimum-security prison to the penitentiary campus, reduce costs from an earlier estimate, and provide more beds and programming space, with construction potentially beginning in 2027 and opening around 2031. They also described staffing needs, the planned move of women to the New England facility, and possible expansion of men’s housing there. The parole and probation chief described a reentry housing task force studying housing needs for people leaving incarceration, with a goal of developing data-driven recommendations for subsidies and support services; a representative from Protection and Advocacy closed by expressing general support for fixed-route and paratransit funding.