Transcript Highlights:

• I think that was FEMA disaster match.
• That is, I'll say, match Medicare rates.
• And so there's a cost savings associated with that, with the assumption being some lower enrollments
• Then that's going to be the kind of today's starting point for the phasing down of payments to match
• And so there's a cost savings<00:30:51.120><c> associated</c><00:30:51.520><c> with</c><00:30:51.679>

Summary: The committee first established a quorum, approved the July minutes, and recognized Jennifer Hayes of the Department of State Budget Director for her retirement and long service. Secretary Hicks then presented a review of fiscal year 2025 closeout for the general fund and road fund, explaining that the general fund ended with a $313 million surplus and the road fund with a $61 million surplus. He attributed the general fund result to strong corporate income and LLC tax receipts, investment income, and lower-than-budgeted spending, while noting that individual income tax and sales tax underperformed estimates. He also described how the general fund surplus was allocated, with $62 million used for necessary government expenses and $251 million deposited into the budget reserve trust fund, which remained at historically strong levels. For the road fund, he said the surplus would be deposited into the Department of Highways construction account, and he highlighted record motor vehicle usage tax receipts despite lower motor fuels tax revenue due to a rate decline. Members asked questions about the pass-through entity tax, delayed filing deadlines, THC beverage sales, and income tax collection from undocumented workers. Hicks said the pass-through entity tax remains difficult to model because of timing issues and the first year’s unusual filing pattern, and that staff are still working with the Department of Revenue and other states to improve forecasting. He said the delayed filing deadline likely would not require a major restatement and that any related receipts would still be counted in fiscal 2026. On THC beverages, he said the issue would be considered in the next forecasting cycle. On the undocumented-worker question, he said withholding may capture some of the revenue but referred broader collection efforts to the Department of Revenue. The committee then shifted to an overview of the federal reconciliation act’s potential impact on the next biennial budget, with Hicks and Commissioner Lisa Dennis focusing on Medicaid and SNAP. Hicks said the Congressional Budget Office estimated roughly $900 billion in federal savings over 10 years, driven in part by work or community engagement requirements for the Medicaid expansion population and limits on state-directed payments. He emphasized that CMS still must issue regulations to define how the state-directed payment reductions will be calculated, making the exact fiscal impact uncertain. He referred members to a prior Medicaid Oversight Advisory Board presentation for more detail, and the discussion remained informational with no votes or formal actions taken on the federal changes.

Transcript Highlights:

• Again, it's a very eco-friendly way, and we're saving our river as well.
• I'm grateful that it lowers the matching percentage from 100% to 50%.
• They can be handled over the phone, and in that case, perhaps save people money and time. from their
• Sure, could it have been saved if it had been seen? I have no idea.
• The organization has saved the lives of thousands of animals throughout South Texas.

Bills: HB43 , HB3364 , HB3469 , HB3479 , HB43

Committee: House Agriculture & Livestock

Keywords: agriculture, finance, young farmers, financial assistance, pest control, veterinarian, veterinary medicine, veterinary telemedicine, telehealth, telemedicine, veterinarian-client-patient relationship, VCPR, animal health, livestock, pets, remote care, electronic means, telephone consultation, controlled substances, prescription drugs

Summary: The second bill, House Bill 3469, was introduced to address pest control regulations concerning nuisance birds. Representative Campos explained how the bill proposes non-lethal methods to deter these birds, such as the use of laser lights and sounds, which avoids conflict with both state and federal regulations. The committee heard impassioned testimonies from members of the public who shared firsthand experiences regarding the adverse effects of these birds on property and public health. The meeting concluded with both bills being left pending, reflecting a desire for further deliberation among the committee members.

Transcript Highlights:

• The SAVE Act hasn't been enacted. So post-SAVE Act, remind me again of how the process will change.
• “The SAVE Act is, the purpose of the SAVE Act is to prevent non-U.S. citizens from voting in our elections
• The SAVE Act this year is not exactly identical to the SAVE Act as last year.
• nothing in the SAVE Act that says states cannot have all elections under the requirements of the SAVE
• There's nothing in the SAVE Act prohibiting a state from There's nothing in the SAVE Act prohibiting

Committee: House Special Committee on Redistricting

Summary: The Special Committee on Redistricting held a public hearing on House Concurrent Resolution 48, which urges support for the federal SAVE Act. Representative Michael Davis presented the resolution, explaining that the bill would require documentary proof of U.S. citizenship to register for federal elections, photo identification to vote, and additional procedures for absentee voting and name-change issues. He argued the measure would protect election integrity and prevent non-citizens from voting, while noting that the resolution simply expresses support for the federal legislation already passed by the U.S. House. Committee members from both parties questioned Davis extensively. Supporters said the proposal would add a needed citizenship verification layer and cited examples of non-citizen voting or mistaken registration. Opponents argued that Missouri already requires voter ID, that non-citizen voting is rare, and that the SAVE Act would create burdens, costs, and potential disenfranchisement for married women, students, rural residents, elderly voters, disabled voters, military families, and others who may lack easy access to birth certificates, passports, or other documents. Several members also raised concerns about federalism, the cost to election officials, and whether the resolution belonged in a redistricting committee. The committee then heard public testimony. Witnesses opposed to HCR 48, including representatives of the League of Women Voters and several individual voters, said the measure would make voting harder and could require duplicate or repeated documentation, affidavits, or separate systems for different election types. One witness testified in favor, saying proof of citizenship is easy to provide and would help ensure fair and honest elections. After all testimony and questions, the chair closed the hearing; no vote or other action was taken in the transcript.

Transcript Highlights:

• It gives us an opportunity, once again, to expand more property tax savings for local folks.
• And that would be universal, and then everybody saves. Answers. Thank you.
• So it would be a significant savings.
• Helping Texans save water is crucial.
• Remind you of one other thing: they say the energy we save is cheaper than any energy we can buy.

Bills: HB485 , HB1367 , HB1370 , HB1827 , HB1879 , HB2032 , HB2133 , HB2357 , HB3581 , HB3830 , HB4060 , HB4085 , HB4270 , HB4979 , HB5217 , HB5268 , HB5478 , HJR96 , HJR97 , HJR119 , HJR195 , HJR209 , SB4 , SB23 , SJR2 , SJR85 , SB 4 , SB 23 , SJR 2

Committee: House Ways & Means

Keywords: healthcare, insurance, access, affordability, public health, emergency services district, sales tax, gas and electricity, residential use, tax exemption, emergency services, gas, electricity, HB 485, ESD, use tax, residential utilities, utility tax, local option tax, Texas Health and Safety Code

Transcript Highlights:

• Contributions into the assumed income match their actual defined contribution account, but there is an
• Contributions into the assumed income match their actual defined contribution account, but there is an
• Stepping into the next slide, in terms of estimated budget impacts, we provide the estimated savings
• The results are rounded to the nearest $5 million, and we estimate a general fund savings...
• for the 2027–2029 biennium and a total employer savings of almost $500 million.

Committee: Joint Pension Funding Council

Summary: The Pension Funding Council met on June 23, 2026, for a work session that began with an overview of the Higher Education Supplemental Retirement Plan (SRP) and a 2025 accounting valuation of that plan. Staff explained that the SRP is a closed defined benefit supplement for higher education employees hired before the 2011 closure, with employer contributions currently pre-funding benefits in institution-specific trusts while institutions still pay benefits on a pay-as-you-go basis. The State Actuary’s office reported that the plan’s accounting position has improved, with combined market assets of about $245 million against $377 million in accrued liability, and that strong market performance since 2022 has increased the asset-to-liability ratio. The office emphasized that this was an educational accounting valuation, not a funding valuation for rate-setting. The council then received the 2025 actuarial valuation report for the state retirement systems. Actuaries reviewed the recent demographic experience study, noting updated assumptions for mortality, retirement, termination, and salary growth, and said the net impact on most plans was small. They reported that most plans’ funded ratios improved, with all plans at least 94% funded and several at or above 100%, and that contribution rates for the 2027–2029 biennium are generally lower than current rates. They also noted that future rates could be affected by market volatility as deferred gains are recognized over the next few years. During public comment, a representative of the Association of Washington Cities urged the council to consider rate reductions to help local governments facing budget pressures. In executive session, the council first approved a motion directing the Office of the State Actuary to perform an actuarial evaluation and analysis of each institution’s Higher Education Supplemental Retirement Plan, including institution-specific contribution rates, asset sufficiency, and funding policy options, due by July 1, 2028. The council then adopted the 2027–2029 pension contribution rates based on the 2025 actuarial valuation report. Both motions passed 5-0, with one member excused. The meeting concluded with no further business.

Transcript Highlights:

• The Legislature has found previously that funding wildfire preparedness activities can save the state
• However, a Department of Revenue review found that 65% of the taxpayer savings resulting from that tax
• However, a Department of Revenue review found that 65% of the taxpayer savings resulting from that tax
• data can be provided by the DOR review that took place in 2024 that showed that 65% of the taxpayer savings
• resulting from the tax preference... ...that 65% of the taxpayer savings resulting from the tax preference

Bills: HB1960 , HB2194 , HB2089

Committee: House Finance

Keywords: HB1960, renewable energy, clean energy, solar, wind, battery storage, energy storage, excise tax, property tax exemption, local investment, county revenue sharing, local taxing districts, school districts, Department of Revenue, Department of Commerce, model ordinance, siting, permitting, tribal consultation, tribal capacity grants

Transcript Highlights:

• The SAVE Act is just about American citizens. So the SAVE Act wouldn't have prevented..."
• “It’s important that we adopt the SAVE Act or to encourage the federal government to adopt the SAVE Act
• The SAVE Act this year is not exactly identical to the SAVE Act as last year.
• We would have to do it the way the SAVE Act says.” “Now, even if we...” “The way the SAVE Act says.
• of the SAVE Act.

Committee: House Special Committee on Redistricting

Transcript Highlights:

• Additionally,... dollars are being matched.
• It's going to save lives and keep commerce in Texas moving.
• TxDOT now has the tools, and the feds have the funds to make this match.
• First, safety standards should match the level of risk.
• Integrity at the counter must be matched by enforcement on the road.

Committee: Senate Transportation

Summary: The committee first heard opening remarks on its interim charges: rail grade crossing safety, autonomous vehicle deployment, and commercial driver’s license oversight. Members emphasized transportation’s importance to safety, mobility, and the economy, and the chair outlined the plan to take invited testimony first on each charge, followed by public testimony. For the rail grade crossing charge, TxDOT’s Don Franks described implementation of SB 1555, the Texas Off-System Rail Grade Separation Program, including rules, applications, and awards. He said 36 local governments submitted 57 applications requesting about $2.3 billion against the $250 million state program, and TxDOT awarded $160.4 million to five projects in four districts. He also explained that the state set aside remaining funds as federal match, helping Texas secure nearly $756 million in federal FRA funding for 12 projects, bringing the total value of the rail crossing projects to more than $1.2 billion. French Thompson of the Texas Railroad Association supported continuing the program, said the demand far exceeded available funding, and recommended maintaining the $250 million investment while also considering other mitigation tools such as siding relocations and digital traffic-routing solutions. Members asked about how projects were selected, how success should be measured, blocked crossings, maintenance responsibilities, and whether railroads should share costs. Franks said projects were chosen based on safety, economic development, mobility, readiness, community support, and match leverage, and said future success should be measured by reduced crashes and fatalities at treated crossings and by getting projects to construction within about three years. Thompson distinguished between occupied and blocked crossings and said railroads are working on capacity, communication, and alternative solutions. He and Franks explained that railroads maintain crossing equipment, while the public can report malfunctions using the blue ENS sign. Public testimony on rail grade separations included support from the North Houston Association, Bay Area Houston Transportation Partnership, and Texas Rail Advocates for continued and expanded funding, while Rhonda Ward argued taxpayers should not subsidize railroad infrastructure and said railroads should bear more of the cost. The committee then closed testimony on the rail charge. The committee next took up autonomous vehicle deployment under SB 2807. Clint Thompson and Corey Thompson of the Texas Department of Motor Vehicles explained the new authorization system for Level 4 and Level 5 automated motor vehicles used in commercial passenger or freight operations. Clint Thompson described the differences between SAE levels, the requirement for an authorization in addition to title, registration, insurance, and other credentials, and the need for a first responder interaction plan filed with DPS. He said DMV adopted rules, built a web-based application system, and began accepting applications in April, with enforcement beginning after the statutory rulemaking timeline. He reported 16 companies currently hold authorizations, including both passenger and freight operators, and said the department uses existing staff and its motor carrier credentialing system to administer the program. Corey Thompson then showed how law enforcement and the public can verify AV authorizations through the DMV’s truck stop database, which displays company status, vehicle information, and related motor carrier credentials where applicable.

Transcript Highlights:

• And so the 300—so we're $60 million that we've saved overall, and then $16 million in the general fund
• So, again, we're down to—we saved less than one-half of one percent of the total budget.
• If we're doing a one-to-one, I can save you $13 million on the SIF account.
• Alternatively, I suggested a 50-50 match, but that would still put the...
• A 50-50 match, but that would still put the dollars out there, whether they do it or not. Okay.

Bills: SB2015

Committee: Senate Appropriations - Human Resources Division

Summary: The committee met to review revised long sheets and section-by-section language for a human services/health budget bill, with much of the discussion focused on how to present block grant funding and full-time equivalent (FTE) positions for behavioral health clinics and CCBHCs. Members debated whether to keep FTE counts in the budget at all, ultimately leaning toward removing or zeroing out the FTE references while keeping the dollar authority, and reducing the salaries-and-wages block grant by about $4.75 million. They also discussed public health federal authority, agreeing to remove about $60 million in unused federal spending authority tied to COVID-era funds, and clarified that if federal money later becomes available it could be requested through the Emergency Commission. A major topic was the provider inflation increase. The House version had 2% and 2%, while members debated alternatives and appeared to settle, at least for further work, on 2% in the first year and 1.5% in the second year, with staff asked to recalculate the fiscal impact. The committee also reviewed FMAP changes, noting a revised 2027 FMAP estimate and its effect on general fund and other funds, and discussed whether to adjust public health and other line items accordingly. Several members emphasized that many of these numbers are still tentative and will be refined before final action. The committee also touched on several policy items and capital-related provisions, including behavioral health services, Medicaid expansion, the moratorium on new ICF beds, and a proposed amendment for a medical homes/fourplex-related item that would show a $400,000 legislative investment with repayment from a developer. There was extended discussion of the All True hospital/facility proposal, with some members favoring leaving it in with a smaller initial commitment and others preferring to remove it and revisit later in conference committee. The meeting ended with staff asked to continue updating the bill language and members instructed to review remaining sections before the next meeting; no final votes were taken in the portion provided.

Transcript Highlights:

• They talked about it as this is an issue that is literally forcing them to tap into their savings.
• And so when your findings, we talked about saving lives.
• How many lives did it save by prescribing GLP-1s to people with high BMI?
• It's long-term downrange health, so it's savings to Medicare.
• None of those are savings that the insurance company receives.

Committee: House Insurance

Transcript Highlights:

• I understand, Chair, you're saving questions for the end, so I'll pass it on to Eric.
• And the other one is actually our available match, county match, to fund grant projects.
• It was 100% funding and moved our matches from being 13.5% or 15% to zero.
• It really saved the transportation program over the last... 13.5% or 15% to zero.
• It really saved the transportation program over the last couple of years and made a giant difference

Committee: Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and Jacobs described the study’s phases, including current work on geology, infrastructure risk, and a total logistics cost model. They explained that the study is examining how freight now moved by barge—especially wheat, fertilizer, and wood—could shift to rail and roads, and they outlined several scenarios ranging from no-dam future conditions to new unit-train terminals, short-line rail options, and a combined “many solutions” scenario. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could estimate transportation effects if grain volumes decline. The presenters said the study assumes current production levels continue, does not model irrigation changes or broader farm-economics impacts, but does account for transloading costs and can estimate transportation impacts under different volume assumptions. WSU’s independent review team said the model has improved substantially but still needed refinement, especially in routing, road data, and spatial detail, and that stakeholder engagement had been strong though delayed by model development. No votes were taken. The committee then received a presentation on the alternative sidewalk funding study. Staff and consultants said the study is exploring ways local governments could sustainably fund sidewalk maintenance, repair, and new construction, using a statewide survey, interviews, national research, and case studies in eight jurisdictions. They noted sidewalks are important for pedestrian safety and connectivity, but there is no dedicated funding source in Washington, and existing grants and local revenue tools are highly competitive or limited. The consultants highlighted sidewalk fees or utility-style charges as the most promising option to study, while a parcel tax was largely set aside because of state property-tax uniformity concerns. Members asked whether the study would duplicate existing funding or add to current taxes, and how a sidewalk fee would be collected; the consultants said the goal is to expand local options, not mandate adoption, and that fees would likely be billed through utilities rather than property taxes. A preliminary draft report is due December 15, with a final report due in mid-June. Next, staff gave a brief update on the ocean-going vessels study, which is examining shore power and emissions rules for vessels at berth. The presenter explained that federal Clean Air Act rules and California waiver authority create legal limits on how far Washington can go if it wants to adopt similar standards, and that deviations from California’s approach can increase litigation risk. The report will summarize stakeholder outreach and will be presented in draft form at the next JTC meeting. Finally, county engineers from Chelan and Douglas counties began a presentation on county transportation challenges, with the association’s director emphasizing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs. The county presentation was only beginning when the transcript ended, and no committee action or votes were recorded.

Transcript Highlights:

• </c> other company their savings are so big. other company their savings are so big.
• </c><01:37:00.159><c> taxpayers</c> EFA program has already saved taxpayers EFA program has already saved
• </c> businesses, and municipalities save businesses, and municipalities save money<02:27:29.359><c> on
• </c> use our energy data to plan and save use our energy data to plan and save would<02:27:58.000><c>
• </c> justify prioritizing marginal savings justify prioritizing marginal savings over<04:29:35.600><c

Transcript Highlights:

• Forgiving SUNY hospital debt service costs, saving the hospitals $80 million.
• capital plan, and providing $40 million for an additional round of the Higher Education Capital Matching
• FOR FORGIVING SUNY HOSPITAL DEBT SERVICE COST SAVING THE HOSPITALS $80 MILLION.
• FIVE-YEAR CAPITAL PLAN AND PROVIDING 40 MILLION FOR AN ADDITIONAL ROUND OF HIGHER EDUCATION CAPITAL MATCHING

Summary: The Higher Education Conference Committee met to discuss budget priorities for SUNY, CUNY, community colleges, TAP, student aid, and capital funding. Chair Toby Ann Stavisky emphasized the need for increased operating and capital support, protection against enrollment-based funding losses, no tuition increases, a review of TAP because it has not kept pace with living costs, and action on student loan access and research funding cuts. Assembly Chair Alicia Hyndman outlined the Assembly’s higher education proposal, including $475.7 million to expand TAP eligibility, raising income thresholds for TAP and the Excelsior Scholarship, creating a graduate tuition assistance program, adding community college operating aid, expanding the Opportunity Promise Scholarship, forgiving SUNY hospital debt service, increasing CUNY operating support, restoring opportunity program funding, creating a $110 million student loan support program called New York Rises, and funding five-year capital plans for SUNY and CUNY plus additional ECAP grants. Members broadly supported making higher education more affordable and accessible, while highlighting district-specific needs. Senator May praised SUNY Reconnect, community college workforce programs, hospital debt service relief, and a five-year SUNY capital plan. Senator Gonzalez framed the budget as an investment in economic mobility. Senator Griffo supported affordability, operating and capital aid, and additional support for medical schools and hospitals. Assembly Members Walker, Colton, and Fall backed TAP expansion, opportunity programs, disability supports, SUNY Downstate’s transformation, and capital needs at CUNY and SUNY campuses. Assembly Member Smullen, speaking for the minority conference, urged a five-way budget process, said TAP has not kept pace with inflation, and called for a more stable long-term funding model for community colleges. He also stressed aligning higher education with workforce needs. Assembly Member Pirozzolo pointed to the College of Staten Island as an example of the benefits of investment and warned that employers recruiting students directly from high school could weaken higher education unless colleges continue strengthening trade and career training. The meeting ended with no vote on the budget items, and the chairs adjourned the conference committee after concluding remarks.

Transcript Highlights:

• They're trying to save lives. They're trying to help mothers.
• We want to save lives for mommies and babies.
• Which saves us money. Well, exactly.
• Just catching one can save a life. No, ma’am, we’re on closing, so we can’t speak.
• So they didn't match, but they're still practicing to try and get to that matching spot.

Bills: HB611 , HB897 , HB902 , HB931 , HB1030 , HB1092 , HB1100 , HB1118 , HB1138 , HB1143 , HB1160 , HB1185 , HB1216

Committee: House Health and Welfare

Keywords: pregnancy help centers, healthcare services, licensure, Department of Health, medical services, counseling, regulatory compliance, public health, healthcare data, privacy, pregnancy services, confidentiality, client rights, Louisiana Pregnancy and Baby Care Initiative, trauma-informed, child education, mental health, training program, adverse childhood events, religious instruction

Transcript Highlights:

• No, not in quite the same way as if they're going to increase the match rate on you.
• They slow traffic, change driving behaviors, and save lives.
• Our sole mission is to save lives in Arizona. This is not a money deal.
• It is a proven tool for saving lives.
• And if the radar camera can enforce it, then by golly, let's save some lives.

Bills: SB1024 , SB1032 , SB1059 , SB1062 , SB1064 , SB1097 , SCM1001 , SCR1004

Committee: Senate Appropriations, Transportation and Technology

Keywords: roadable aircraft, registration, vehicle title, license plates, aviation safety, corrections oversight, funding, state budget, criminal justice, reform, appropriation, Department of Transportation, right turn lane, traffic improvement, infrastructure funding, transportation funding, authorization, road improvements, intersection safety, transportation

Transcript Highlights:

• Your comment that the timing doesn't match up between the state's budget timeline, the state budget process
• The timing is not matching up to what we need in our budget.
• Programs, and create the true one-stop shop that will save us hundreds of millions of dollars.
• If we can see that this may allow us to save dollars in the coming years, I think that people would be
• And again, it will only end up saving money and allowing the legislature to make decisions in a more

Transcript Highlights:

• We offered an amendment to save Medi-Cal for poor people in our state and you unanimously rejected that
• The second is to provide pass through savings to clinics when they dispense discount medication.
• And as we know, the power of the courts is one of the last barriers we have to save the civil rights
• As the saying goes, seconds saves lives.
• This isn't just about saving money, it's about protecting our most vulnerable residents who can least

Transcript Highlights:

• So you have the chance to save more money.
• They did pay it back early, saving $16 million in interest.
• I guess I'm trying to understand how the cost savings come about.
• Match? Yeah, I mean, those rules would have to be developed.
• be, you know, how much money it'll save the carriers at the end of the day.

Bills: HB778 , HB 1266 , HB1576 , HB2213 , HB2517 , HB2518 , HB2841 , HB3306 , HB3320 , HB3388 , HB3508 , HB3520 , HB3689

Committee: House Insurance

Keywords: credentialing, healthcare, physician assistants, advanced practice nurses, managed care, hurricane, windstorm, loss mitigation, grants, insurance discounts, property retrofitting, insurance, Texas Windstorm Insurance Association, board composition, coastal counties, property insurance, taxation, Texas FAIR Plan Association, premium taxes, maintenance taxes

Transcript Highlights:

• And saving taxpayer dollars.
• Our state's investment in Magnus will save lives and fully heal our warrior families for years to come
• Magnus literally saved my life. I now continue my journey with Magnus, helping my fellow veterans.
• Coordinating the infrastructure improvements described here will result in significant cost savings.
• and significant cost savings.

Bills: HF568 , HF433 , HF1689 , HF3135 , HF3137 , HF3145 , HF2887 , HF2819 , HF2802 , HF2664 , HF2267 , HF799 , HF800 , HF3049 , HF296 , HF580 , HF1438 , HF1237

Committee: House Capital Investment

Transcript Highlights:

• The Legislature has found previously that funding wildfire preparedness activities can save the state
• However, a Department of Revenue review found that 65% of the taxpayer savings resulting from that tax
• data can be provided by the DOR review that took place in 2024 that showed that 65% of the taxpayer savings
• Happy to answer any questions you might have. that 65% of the taxpayer savings resulting from the tax
• new language, as you mentioned, because it is very complicated to make sure the words on the page match

Summary: House Finance met on Friday, January 23rd, and heard three bills. On House Bill 2194, staff explained that the bill would allow a county and a city within that county to both impose the cultural access sales and use tax at the same time, with the county providing a credit for the city tax. Representative Parsley said the change would let more jurisdictions support cultural, arts, science, and school-related programs. Olympia and Thurston County officials testified in support, describing grant funding for cultural organizations, free programming, and school access benefits; a committee member raised a question about how the change could affect county bond obligations. The committee then heard House Bill 2089, which would narrow a B&O tax preference for first mortgage interest by removing the requirement that a financial institution be located in 10 or more states, and direct the resulting revenue to the wildfire response, forest restoration, and community resilience account. Staff said the bill would raise significant revenue and have implementation costs for the Department of Revenue. Representative Scott said the bill was intended to restore wildfire funding and limit the preference to community banks, while opponents from the Washington Bankers Association and Community Bankers of Washington warned the bill could harm community banks and mortgage lending if not drafted carefully. The Department of Natural Resources and a public employee representative supported restoring wildfire preparedness funding. Finally, the committee heard a proposed third substitute for House Bill 1960, which would replace property taxation for new or repowered large renewable energy facilities and battery storage systems with a state and local excise tax structure, while also creating a local investment distribution account and a tribal capacity grant program. Staff and the sponsor described the bill as a way to reduce property tax shifts onto nearby taxpayers and provide more stable, predictable revenue for local governments and tribes. County officials, assessors, treasurers, and some clean energy and conservation groups supported the concept but asked for clearer definitions, payment timing, and rate adjustments; utilities and renewable developers said they supported the goal but opposed the bill as drafted because of concerns about the rates and the treatment of centrally assessed utilities. No votes were taken, and the committee adjourned after closing the hearings on all three bills.