Transcript Highlights:

• Cook, Fuchs, Hovis, Irwin, Jones, Phelps, Price, Seitz, Taylor, Violet, West, Williams.
• Price: Aye. Taylor. Violet: Aye. West. Williams: Aye. Bosley.
• And Price. Thank you, Mr. Chairman, to inquire. Please proceed.
• State Representative Tiffany Price, District 26, South Kansas City.
• State Representative Tiffany Price, District 26, South Kansas City.

Committee: House Crime and Public Safety

Transcript Highlights:

• But very close to forecast based on that price and production data through March in terms of the price
• Price and production data through March in terms of the price, and just a little bit above in terms of
• Price, of course, is the real wild card. We had seen prices slipping a little bit below forecast.
• You know, we had assumed a price in April and May of a North Dakota price of around $80.
• It's a price that we get from the actual tax. a market, a price that we get from a market.

Summary: The Budget Section approved the March 18 minutes and received an OMB update showing the general fund is still ahead of the budgeted starting point, but revenues through May are now about $76 million below the legislative forecast, driven mainly by individual income tax and sales tax shortfalls. OMB also reported the budget stabilization fund is above its cap, meaning a transfer to the general fund is expected, and reviewed oil price/production assumptions, noting continued volatility. Members asked about the income tax netting process, the sales tax decline, oil price discounts/premiums, natural gas taxation, and when the executive branch would present its revenue forecast. The committee then acted on several Emergency Commission requests. It approved, as a group, requests for federal mine reclamation funds for the Public Service Commission, an additional criminal investigator FTE and funding for the Attorney General’s office, and a DPI transfer for bridge software costs. It separately approved DPI request 2164 for $500,000 to support the food vendor program after debate over whether the program’s savings were known and whether the money was simply a pass-through. OMB also reported on federal grants, fiscal irregularities, tobacco settlement proceeds, budget guidelines for agencies, FTE pool usage, vacancy savings, and the DAPL settlement, noting the settlement funds had been deposited and that a deficiency appropriation may be needed later to cover remaining accrued interest. Tax Commissioner Brian Kroshus presented on the primary residence credit program, saying participation has grown sharply and that the current biennium will likely need about $431 million, roughly $22 million above the appropriation. He explained how the credit interacts with homestead and disabled veteran benefits, how the 3% property tax cap works, and why county valuations and mill rates vary. The committee also received a Legacy Fund/Budget Stabilization Fund report showing strong returns, and DOT Director Ron Henke received approval for two Flex Fund highway projects on ND 49 and ND 31. Henke also explained remaining Highway 85 funding and said the department is exploring uses for leftover state dollars. Finally, the Department of Mineral Resources reported on abandoned well plugging and site restoration, noting North Dakota remains in relatively strong shape compared with other states, and DPI began a presentation on gap funding tied to the 3% levy cap, reporting 24 districts received $1.8 million in the first year and projecting higher future needs.

Transcript Highlights:

• This is the pricing and volume forecast.
• The dotted line on there is the oil price revenue forecast.
• This is current WTI crude pricing, so right at $100.
• I thought, what's been the average oil price since 2000?
• or by the price of crude on the board?

Summary: The committee met as the Budget Section’s Regulatory Division and first reviewed base budget materials for the North Dakota Housing Finance Agency and the Department of Mineral Resources. Legislative Council explained the blue-sheet budget summaries and historical funding trends. The Housing Finance Agency then reported on its ongoing homeownership, housing incentive, and homelessness programs, noting that its new FTEs are being filled, loan servicing remains above benchmark, and the agency is operating largely on special and federal funds rather than general fund dollars. Housing Finance officials said the Housing Incentive Fund continues to be heavily oversubscribed, with requests far exceeding available dollars, and described how funds are being used for multifamily gap financing, rural single-family development, community land trusts, and homeless prevention/rapid rehousing. Members asked about performance measures, the number of people served, and the relationship between housing costs, wages, and homelessness. The agency said it uses scoring criteria tied to performance and outcomes, and requested that the Legislature maintain or increase funding for HIF, single-family housing, and homeless grants. Committee members also discussed the need to coordinate housing finance efforts with Commerce and broader site-preparation and workforce issues. The Department of Mineral Resources reported that it is on track with its budget, has filled most of its newly authorized reclamation positions, and is moving ahead on several initiatives, including IT modernization through Project North Star, organizational succession planning, and rulemaking for critical minerals and oil and gas programs. The director gave an extensive update on oil and gas activity, explaining that longer laterals and operational efficiencies are keeping production relatively flat even as rig counts decline, and that gas capture remains around 95 percent. Members asked about oil prices, hedging, spacing units, and the effects of geopolitical events on markets and state revenues. The committee also received an update on the enhanced oil recovery grant program and the Pipeline Authority. The EOR program’s $25 million appropriation was fully allocated to six projects, with additional oil and gas research funds also committed, and officials said the projects will require public status reports and final reports. The Pipeline Authority described major natural gas transmission projects, including the upcoming Bakken Express line and the proposed Bakken East project, which recently completed a binding open season after the Industrial Commission selected WBI Energy’s proposal to move forward.

Transcript Highlights:

• But very close to forecast based on that price and production data through March in terms of the price
• Price, of course, is the real wild card. We had seen prices slipping a little bit below forecast.
• price, North Dakota price, the first year, $57 the second.
• You know, we had assumed a price in April and May of a North Dakota price of around $80.
• It's a price that we get from the actual tax. a market price that we get from a market.

Committee: Joint Budget Section

Transcript Highlights:

• This is the pricing and volume forecast.
• This is current WTI crude pricing, so right at $100.
• I thought, what's been the average oil price since 2000?
• or by the price of crude on the board?
• It's the price that they're able to sell it for in North Dakota.

Summary: The committee met as the Regulatory Division budget section and first reviewed the North Dakota Housing Finance Agency’s budget and program update. Legislative Council outlined the agency’s base budget and historical funding, and Housing Finance staff reported on homeownership lending, housing incentive fund (HIF) awards, and homeless grant spending. Agency officials said the five new FTEs approved last session are mostly filled, with one homeless program manager still open. They described strong demand for HIF, noting that September 2025 multifamily requests exceeded $73 million while only $25 million was available, and that single-family and homeless programs are also heavily subscribed. Members discussed the agency’s local loan servicing workload, interest-rate benefits, down payment assistance, and the need to coordinate housing discussions with Commerce and site-preparation efforts. The agency asked that HIF, single-family, and homeless funding be maintained or increased, and committee members emphasized accountability and statewide access for homeless prevention and rapid rehousing funds. The Department of Mineral Resources then presented its budget and agency initiatives. Staff reported that the department is on track financially, that most of the five new reclamation-related FTEs are hired, and that litigation costs tied to oil and gas matters are expected to continue appearing late in the biennium. The director reviewed ongoing modernization and organizational efforts, including the North Star IT project, succession planning, training, and rulemaking for oil and gas and critical minerals. Members asked about longer laterals, spacing, and production trends; the department said operators are increasingly drilling three-, four-, and even an initial five-mile lateral, which is helping keep North Dakota oil production relatively flat even as rig counts ease. The director also discussed oil price volatility tied to Middle East conflict, hedging practices among producers, gas capture remaining around 95%, and the likelihood that current production levels will stay near flat unless prices or geopolitical conditions change significantly. An update on the enhanced oil recovery grant program followed. The Industrial Commission’s grant administrator said the full $25 million appropriation was allocated in the fall to six projects, and because the oil and gas research fund also had carryover and biennial tax revenue, total awards reached about $45.1 million. The projects are expected to run two to four years, with meaningful results not likely until mid-2026 or later. Members questioned whether the public would have access to the research findings and how accountability would be maintained; staff said the grants are reimbursement-based, require regular status reports, and will culminate in public final reports. The committee also heard from the North Dakota Pipeline Authority, which updated members on natural gas transmission projects, especially WBI Energy’s proposed Bakken East pipeline. The authority said the project has advanced through a nonbinding and then binding open season, with WBI now securing survey permissions and moving through regulatory and landowner processes, while other related gas transmission projects near Minot and Epping are also in development.

Transcript Highlights:

• As such, there is some volatility in account 5155 revenues. prices and the overall revenues in the fund
• The data collected under this program would be available online and to the public.
• Now, as we move through the process, we're looking at given land prices, and we all see what land prices
• They're using Sporting Goods sales tax that will be coming online.
• I mean, I think y'all were the only buyers and you're running up the price all over.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• Phelps, Price, Seitz, Taylor, Violet, West, Williams.
• Price. Seitz? Aye. Phelps? Aye. Price? Seitz? Aye. Taylor? Aye. Violet? West? Aye. Williams?
• Price. Seitz. Aye. Taylor. Violet. West. Aye. Williams. Aye. Aye. West? Aye. Williams.
• If you haven't done so online, please make sure you fill out a witness form. Hi there.
• Clair, and I submitted my form online. I'm Kimberly St. Clair, and I submitted my form online.

Committee: House Crime and Public Safety

Transcript Highlights:

• That risk has to be included in their pricing for the project.
• There have been six amendments to that, and the new price is $293.5 million.
• Their pricing is not competitive.
• Or other administrative challenges related to price books for, say, a job order contract.
• WTP Vision 2050 included creating this new interactive and online version of the plan.

Committees: Joint Transportation , Joint Joint Transportation Committee

Summary: The committee first heard from WSDOT on capital program estimating, risk management, and cash flow. WSDOT explained the differences between design-bid-build and design-build delivery, how estimates are built from base cost, risk, inflation, and unknowns, and how risk reviews scale up by project size. Staff said design-bid-build estimates are generally accurate within about 1% across the program, while design-build projects have much wider uncertainty and are better communicated as ranges; WSDOT cited a P85 budget approach for legislative funding and a lower P45 management target. Members asked about the large cost growth on the I-5 Columbia River Bridge project and about value engineering; WSDOT said the project is unusually complex and that cost containment is limited by project requirements and policy mandates. Troy Swing also discussed the idea of a risk pool, saying it would not reduce overall program risk and would still require appropriation, while emphasizing the need for more realistic early budgeting and cash flow assumptions. The committee then received the final presentation in the WSDOT Project Delivery and Innovative Practices study from HKA Global. The consultant said WSDOT already uses a robust estimating process, but recommended improving transparency by presenting budget authorizations as ranges or estimate classes, better tracking award growth and cost growth over time, and monitoring market conditions and letting schedules to improve competition. The report also discussed surety bonding, recommending that the legislature consider restoring authority for reduced bonding on select large design-build projects or allowing phased or alternative securities, and reviewed indefinite delivery/indefinite quantity contracting, including job order contracts and multiple-award task order contracts. The consultant said these tools could help with smaller work packages and competition, but current Washington law is restrictive and would need changes for broader use. Next, the committee heard a follow-up report on transit-oriented development policy from the Urban Institute. The consultant said Washington’s HB 1491 is nationally notable, but warned that housing construction has slowed sharply, especially in the Puget Sound, due to high construction costs, financing costs, and other market pressures. The report recommended filling the infrastructure-funding gap created by reduced impact fees, revisiting MFTE affordability requirements so they better match local market conditions, considering minimum rather than averaged density requirements near transit, expanding public land and public development options, and creating a state system to track TOD outcomes such as affordability, gentrification, and transit access. Members questioned the study’s developer interviews, the role of rent stabilization, property tax assumptions, and parking needs; the consultant said only five private developers were interviewed and offered to provide the question framework and additional follow-up materials. Finally, the committee began a study on regulating emissions from ocean-going vessels at berth. Staff and consultants explained how shore power lets ships plug into the electrical grid and shut off auxiliary diesel engines, reducing emissions of nitrogen oxides, particulate matter, reactive organic compounds, and greenhouse gases near ports. The presentation reviewed California’s at-berth regulation, which Washington could only mirror if it acts under federal preemption limits, and outlined the study’s phases on vessel traffic, emissions reductions, implementation costs, and competitiveness impacts. No votes were taken during the meeting.

Transcript Highlights:

• Foss, who is online, here. Foss, who is online. Here. Cynard, here. Mitskog and Porter, here.
• You can Google a story, which will give you the full story online.
• We'll talk about the pricing.
• It has the year it came online. It has its total rated capacity.
• So you're insulated from a lot of fuel price volatility.

Summary: The Energy Development and Transmission Committee met in interim session and approved the November 6 minutes. Chair Novak outlined the committee’s study agenda, including large energy users such as data centers, geothermal, landowner relations, wind and solar, and other energy topics across the state. The meeting was framed as informational only, with no bills or formal legislative action taken beyond the minutes approval. Testimony focused first on landowner relations. Oliver County Commissioner Dave Berger described the county’s energy history and local support for coal and related development. North Dakota Farmers Union President Matt Perdue emphasized proactive, face-to-face communication with landowners, respect for property rights, and the need for developers to be transparent about tradeoffs; he also discussed insurance and liability concerns tied to easements. Committee members asked about eminent domain, local versus state authority, and how communities can better understand the revenue and infrastructure implications of energy development. Department of Agriculture Deputy Commissioner Tom Bodine then described the department’s ombudsman programs for pipeline restoration and reclamation, wind restoration, and royalty oversight. He said the programs provide confidential, third-party assistance on reclamation and royalty disputes, but do not provide legal advice. Senators raised concerns about post-production deductions in royalty leases and whether the ombudsman can explain them; Bodine said the program can clarify statements and deductions but cannot resolve legal disputes. He also said the department has not received requests related to fiber lines. Representatives from Grid United and One Oak described their project development and landowner engagement practices. Grid United’s Brent Johnson discussed the North Plains Connector transmission project, its route selection process, voluntary acquisition approach, and efforts to avoid eminent domain by working closely with regulators, counties, townships, and landowners. One Oak’s Danette Welsh and Tom Giltner described the company’s midstream operations, extensive North Dakota footprint, and emphasis on direct landowner communication, consistent local regulation, careful construction practices, and post-construction reclamation. Members asked about setbacks, zoning consistency, invasive species prevention, outside advocacy groups, and eminent domain use; One Oak said it has not used eminent domain on its North Dakota projects, largely because most gathering lines are negotiated easements.

Transcript Highlights:

• Taking that argument. >> Mhm. retail price at that point and um uh retail price at that point and um
• their base price to maintain their<00:22:02.320><c> sales</c><00:22:02.720><c> price</c><00:22:03.600
• </c> migration to online and illicit markets. migration to online and illicit markets.
• </c><01:01:45.680><c> um</c> Um people will find lower prices um Um people will find lower prices um
• </c> houses years and years ago when prices houses years and years ago when prices were<02:05:01.119>

Committee: House Ways and Means

Transcript Highlights:

• Price. Aye. Bruce. Does anyone wish to change his or her vote?
• Furness, Petsky, Manwaring, Mitchell, Price, Bruce, Bruce, Harris, Green.
• Petsky, Manwaring, Mitchell, Price, Bruce, Bruce, Harris, Green.
• Price. Does anybody wish to change his or her vote?
• So, and tungsten as well, we have those coming online.

Summary: The joint Senate Finance and House Appropriations committee heard a series of budget presentations and acted on several FY 2026 and FY 2027 items. Noah Peterson reviewed the General Fund Daily Update, noting large FY 2026 supplemental actions for Medicaid and Corrections that reduced the estimated ending balance, and a FY 2027 outlook that still had room for remaining work. He also flagged several policy bills with fiscal impacts, including county jail per diem changes, a state police bill, and a health and welfare board/position bill. Janet Jessup then walked the committee through Department of Environmental Quality and Soil and Water Conservation actions. The committee approved adding four FTP for DEQ’s solid waste regulatory program and adopted related language transferring $400,000 from the hazardous waste emergency fund to support the new solid waste regulatory fund. It also approved a CREP supplemental for the Soil and Water Conservation Commission and then voted to move the commission from the Department of Agriculture to the Department of Water Resources, including a corresponding reduction in Agriculture and an addition in Water Resources. The committee adopted language to align the new budget structure and approved a one-time $390,000 restoration in the Department of Water Resources to avoid reducing stream-gauging and water-monitoring services. The committee next considered the consolidation of the Office of Species Conservation and the Office of Energy and Mineral Resources into a new Office of Species, Mineral, and Energy Coordination. It approved reductions to the two existing offices and then debated competing motions for the new office. The substitute motion to cut four FTP and reduce spending more deeply failed, while the original motion to reduce two FTP and preserve more staffing for nuclear and mining coordination passed. Members and the agency administrator argued that Idaho needs a stronger “one-stop shop” for nuclear and mining projects, while others emphasized following the policy bill moving through the legislature and capturing consolidation savings. The committee also approved a DOPL budget item for replacement vehicles and IT hardware. Most motions passed with do-pass recommendations, and the committee announced it would meet again the next day; Senate Finance was noted as on hold, while House Appropriations would continue after adjournment.

Transcript Highlights:

• I don't know if he's online yet.
• Oh, she's online in the committee. So now we have a panel. It's got Senator Villis, Rep.
• Is Leslie Scantz Hodgson online, or Annie Murphy, or Lynn Simmons?
• Is Leslie online yet? Okay.
• Seeing none, anybody online? Go right ahead.

Committee: Joint Joint Committee on Public Service

Summary: The committee heard testimony on a range of public retirement and municipal health insurance bills. Mass Retirees and the American Federation of Teachers supported House 2890/Senate 1848 on transparency in municipal health insurance, arguing that broker and consultant roles should be clearly defined, commissions disclosed, and dual roles prohibited to reduce conflicts of interest and costs. They also supported House 2799/Senate 1848 on protecting municipal retirees from future premium contribution increases, House 2854 on voting rights for surviving spouses in retirement board elections, and Senate 1917 on updating the definition of veteran for retirement purposes. Committee members discussed whether the veteran definition should simply conform to the federal definition going forward. Educators testified in support of House 2769/Senate 1921, which would allow teachers with at least 20 years of service to buy back creditable service for periods when they worked part-time while raising children. Multiple teachers described the financial and retirement penalties they experienced after stepping down to part-time work for child care, calling the current system inequitable and a “mom tax.” Sponsors and supporters said the bill is intended to correct that disparity and help retain teachers, while one committee member noted it appeared neutral on an actuarial basis. The committee also heard strong support for Senate 1908, which would raise the cap on outside income for public pension recipients, from retired State Police troopers who said the current limit is outdated and unfair to those forced into disability retirement after line-of-duty injuries. Another State Police representative supported House 2910 on state police pensions, citing recruitment and retention problems under current pension rules. In contrast, Hampden County Regional Retirement System officials and the Massachusetts Association of Contributory Retirement Systems opposed House 2745, a bill to restructure the Hampden County system’s governance, arguing it would weaken PERAC oversight and create an unworkable local system. They instead supported House 2813, which would extend the time to fill a vacant fifth member seat on retirement boards. At the end of the hearing, the committee voted to adjourn the hearing.

Transcript Highlights:

• Full capacity while there's such price pressure due to overproduction.
• This imbalance creates relentless downward pressure on wholesale prices.
• When wholesale prices collapse, the fiscal impact doesn't stop at the farm.
• Thank you. ...the price of cannabis, the more youth are using the product.
• I do not believe that Erin Wilson is online. If they're in person... No? Okay.

Bills: SB6196 , SB6204 , SB6195 , SB5882 , SB6134

Committee: Senate Labor & Commerce

Keywords: kratom, taxation, regulated substances, health safety, state revenue, cannabis, marijuana, home grow, home cultivation, personal cultivation, adult use cannabis, recreational marijuana, 21 and older, controlled substances, RCW 69.50, Liquor and Cannabis Board, LCB, plant limits, cannabis possession, cannabis concentrates

Transcript Highlights:

• Once we post the agenda online and on the door, that's how the agenda will stay.
• Online. Okay, online, there's. One, in support of the Water Project Fund Appropriation.
• So since we have some opposition, let's hear from the opposition first online.
• Okay, given that, why don't we have, like, yeah, online, that's right, thank you. Nobody online?
• Price. How many in the audience are here to support this bill?

Committee: Senate Senate Conservation

Transcript Highlights:

• That principle is especially important during a housing affordability crisis marked by high prices, high
• firm in the state, especially in the Seattle area, where we have about 25% market share across all price
• buyers are denied material information, namely the full range of available options and true market pricing
• Many of us, including you all, are working so hard to get housing online, and our efforts are futile
• Many of us, including you all, are working so hard to get housing online, and our efforts are futile

Bills: SB5831 , SB6178

Committee: House Consumer Protection & Business

Keywords: mortgage modification, uniform regulations, homeowners, financial stability, foreclosure prevention, SB6178, property insurance, insurance claims, assignment of benefits, AOB, post-loss assignment, post-loss benefits, homeowners insurance, policyholder, insured, restoration contractor, mitigation contractor, public adjuster, insurance commissioner, claims handling

Transcript Highlights:

• Glenn Howie, State Broadband Director: For us, we don't want to go in and set a price cap or look at
• So do you have a price tag that goes with how many pieces of legislation you have not processed the rules
• I don't have an exact price tag.
• Okay, well, sooner than later, when you know the price tag...
• Okay, well, sooner than later, when you know the price tag on those things. Thank you.

Committee: All ALC-PEER

Summary: The committee considered several appropriation and transfer requests, beginning with a $273,000 temporary appropriation for the Department of Labor and Licensing to cover administrative costs for its enterprise licensing platform, funded by license and application fees. It then reviewed two large Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation for the final quarter of the fiscal year, and $195 million for the State Broadband Office to support the Arkansas BEAD broadband grant program, including an extra help position and grants to internet service providers. The broadband item drew extensive questions about awardees, contract amendments, accountability, build-out timelines, backup plans if providers default, the definition of broadband serviceable locations, and the cost per location. The State Broadband Director said no providers had requested amendments, the program would use milestone-based disbursements and a four-year build-out period, and the first tranche would serve 51,566 homes and businesses with $126.1 million in grants. Both Section B and Section C items were approved. In Section D, the committee approved a $458,000 transfer within the Department of Correction from the female work release program to the Tucker Unit water treatment plant, a $25 million transfer within the Department of Education to cover declining enrollment, teacher incentive, school recognition, and Easter Seals funding, and a $229,000 transfer for the Department of Shared Administrative Services to support two project management office positions. The education transfer prompted questions about how declining enrollment funding is calculated, how many districts receive it, and how long districts can continue to receive it; agency staff said 152 districts were on the preliminary list and the formula is based on the prior two-year average ADM compared with the previous year. The committee also gave favorable advice on a proposed $4.7 million loan for the Office of State Technology to implement ServiceNow and related IT modernization tools; agency officials said the loan would be repaid through cost recovery rates over five years and would replace an existing loan that is ending, with expected savings from consolidating applications but no precise savings estimate yet. The committee then reviewed cash fund and federal grant requests, including $200,000 for wage and hour claimant payments, $15 million for unclaimed property claims, $8,000 for a heritage program grant, and $1.1 million for a College and Career Coaches grant to expand services in rural districts. It also reviewed pay plan and budget manual items without objection. The most extensive report discussion focused on the Medicaid trust fund, where DHS and DFA officials said the balance has been declining and that the state may need to add capital back into the fund. Senators and representatives asked about the current balance, the projected year-end level, the role of the $100 million set-aside, the impact of outstanding Medicaid rules from the prior session, and whether future federal funding could help reduce long-term Medicaid costs. Officials said they are still working through more than 10 outstanding rules with CMS and do not yet have a final price tag for those changes. The meeting ended after the reports were reviewed and the committee adjourned.

Transcript Highlights:

• Online and on the screens at your desk is an almost 200-page report that shows colored maps of the provisionally
• For us, we don’t want to go in and set a price cap or look at those things.
• the rules for yet are still lingering out there, and have you calculated what the price tag is that
• I don't have an exact price tag. We have over 10— Those. I don't have an exact price tag.
• Well, just sooner than later, when you know the price tag on those things. Thank you.

Committee: All ALC-PEER

Summary: The committee met with a quorum, opened with a prayer recognizing the death of Reverend Jesse Jackson, and then worked through a series of appropriation and transfer requests. In Section B, it approved a $273,000 temporary appropriation for the Department of Labor and Licensing. In Section C, it approved two Infrastructure Investment and Jobs Act requests: $280 million for the Department of Transportation and $195 million for the State Broadband Office to support Arkansas BEAD broadband grants, including an extra help position. Members questioned the broadband awards, provider amendments, buildout timelines, accountability, and the status of unawarded locations; the broadband director said no provider had requested speed changes, awards would be monitored with milestone-based payments, and remaining locations would be addressed later as federal guidance is received. The committee also approved transfers in Section D, including $458,000 for the Department of Correction, $25 million for Department of Education programs such as declining enrollment and teacher incentive funding, and $229,000 for Shared Administrative Services project management support. In Section E, the committee considered a $4.7 million budget stabilization trust fund loan for the Office of State Technology to implement ServiceNow and related IT modernization, cybersecurity, and governance tools. Members pressed agency officials on repayment, cost savings, and whether the loan would simply roll over existing costs; officials said repayment would come through agency rates over a five-year period and that the new payment would be lower than the current loan being retired. The committee voted to give favorable advice to the Governor on the loan request. In Section F, the committee reviewed cash fund requests for wage and hour claims, unclaimed property, and a heritage grant; in Section G, it reviewed a $1.1 million federal grant to expand college and career coaching in rural districts; in Section H, it reviewed pay plan and performance fund requests totaling millions across multiple agencies; and in Section I, it reviewed budget manual formatting changes. The latter part of the meeting focused on reports, especially the Medicaid trust fund. DHS and DFA officials reported the fund balance had declined from prior years and was down to about $394 million after seven months, with further decline expected by year-end. Senators and representatives asked about the appropriate reserve level, the impact of pending Medicaid rules and legislation, FMAP changes, and whether additional funding would be needed in the upcoming budget. Officials said projections are updated regularly, more than 10 rule packages remain pending with CMS, and the governor and legislative leaders will discuss additional capital needs during budget development. Members also discussed the importance of balancing Medicaid spending with new federal funding and maintaining flexibility for critical areas such as labor and delivery. The committee then adjourned without further action on the reports.

Transcript Highlights:

• During the pandemic, while sheltering in place, we organized an online forum with speakers on various
• During the pandemic, while sheltering in place, we organized an online forum with speakers on various
• The sky-high subsidies will only increase the price because if you continue to throw good money after
• The sky-high subsidies will only increase the price because if you continue to throw good money after
• Why should we be price gouging through your regulations, your mandates, Californians to pay four times

Transcript Highlights:

• Best practices can include checklists or online submissions, where permit applicants pay a reasonable
• And what was happening is you had these radically different prices from one jurisdiction to the next.
• That's still okay with the bill because there's that flexibility as part of the price cap.
• Thank you, sir. still okay with the bill because there's that flexibility as part of the price cap.
• More homes help ease price pressure.

Summary: The committee heard several local government-related bills, with testimony focused on permitting, transportation funding, EV infrastructure, and commercial revitalization. AB 1578 by Assembly Member Jackson would require elected local and state officials to take anti-hate speech training through existing sexual harassment training. Supporters said elected officials should understand the impact of their words on hate and democracy; opponents argued the bill lacked a definition of hate speech and could chill protected speech, especially around sex-based issues. AB 2083, also by Jackson, would authorize a regional child care special district serving Moreno Valley and Paris to expand child care facilities and programs for five years. The California Association of Local Agency Formation Commissions opposed the bill’s mechanism but said it was working with the author. AB 1693 by Assembly Member Suber would streamline retail tenant improvement permits by extending a process similar to a prior restaurant permitting law, with qualified professional certification and tighter local review timelines. It drew broad support from retail, business, and property groups and no opposition. Assembly Member Gonzalez presented AB 1679, which would create a temporary commercial activation permit for pop-up businesses to operate in vacant storefronts for up to 120 days. Supporters said it would help fill vacancies and lower barriers for small businesses; there was no opposition, and the bill advanced. Gonzalez also presented AB 2418, which would set timelines for nonresidential plan checks and inspections and allow private plan checkers after excessive delay. Business groups supported it as a way to reduce costly delays, while local government groups had no position but continued discussions with the author; the bill advanced with amendments. Assembly Member Shevlin presented AB 1820, which would cap local permit fees for EV charging installations and create a statewide fee schedule. Supporters said fees vary too widely and can deter charger deployment, while cities and counties argued existing law already requires reasonable cost recovery and that the bill could undercut local budgets and public safety review. Assembly Member DeMaio presented AB 1783, which would prohibit state and local mileage taxes or road user charges. Supporters framed it as a defense against a new tax burden, while opponents said studying road user charges is necessary to address declining gas tax revenue and future transportation funding needs. AB 1693, AB 1679, and AB 2418 were moved forward with motions and roll calls; AB 1783 was taken up with a motion and roll call left open, and AB 1820 remained under discussion at the end of the excerpt.

Transcript Highlights:

• Best practices can include checklists or online submissions, where permit applicants pay a reasonable
• What was happening is you had these radically different prices from one jurisdiction to the next.
• That's still okay with the bill because there's that flexibility as part of the price cap.
• Thank you, sir. still okay with the bill because there's that flexibility as part of the price cap.
• More homes help ease price pressure.

Committee: House Local Government