Transcript Highlights:

• He said the other thing he just heard is that it is possible this trail may cross some state-owned surplus
• :07.798> cross<04:42:08.600> some<04:42:09.000> state-owned<04:42:09.840> Surplus
• Trail may cross some state-owned Surplus Trail may cross some state-owned Surplus land land land

Keywords: 928, house, all

Summary: The committee heard testimony on HB 332, a bill to add protection and remediation of surface waters as a new authorized purpose for New Hampshire village districts. Prime sponsor Rep. Rosemary Rung said the bill is intended to give local voters in lake communities a voluntary tool to address cyanobacteria blooms and other water-quality problems through village districts, including the ability to raise revenue, adopt ordinances, and pursue treatments or watershed management measures. She emphasized that the proposal is meant to complement, not replace, state law and that any district action would still need to comply with existing permitting and environmental requirements. Supporters, including Andrea Laro of New Hampshire Lakes and Elizabeth Harper of the Lake Sunapee Protective Association, said the bill would help municipalities collaborate on lake protection when state resources are limited. They argued that local districts could bring subject-matter expertise, access grants and technical assistance, and respond more quickly to problems such as septic impacts, runoff, culvert repairs, and in-lake treatments. They also suggested clarifying the bill’s wording around “protection and remediation” to better define the scope of authorized activities. Opponents, including Steve Wolf and Chris Norwood of the New Hampshire Association of Realtors, argued that village districts can already be overly broad and sometimes expand beyond their original purposes. Wolf said existing town and state agencies already handle shoreline protection and warned that village districts can impose ongoing taxes and create governance problems. Norwood urged a study bill instead, citing concerns about the scope of village districts and examples where some districts have taken on planning and zoning powers beyond their original mission. No vote or final action on HB 332 was taken in the excerpt.

Transcript Highlights:

• something resets so that you're<00:19:59.480> back<00:19:59.679> to<00:19:59.880> Surplus
• in<00:20:00.760> 2027<00:20:01.720> what<00:20:01.840> is you're back to Surplus
• in 2027 what is you're back to Surplus in 2027 what is that<00:20:02.280> thing<00:20:02.520>

Keywords: 1183, house

Transcript Highlights:

• We also strategically held back on spending all of the surplus, which...
• We also strategically held back on spending all of the surplus, which leaves us with another sizable
• The legislature increased juror pay last session, and really leading up to this point, those surplus

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee held its first hearing of the 89th regular session, adopted nearly identical committee rules from the previous legislature by a 15-0 vote, and began review of Senate Bill 1, the state budget for fiscal years 2026-27. Chair Huffman outlined the budget framework, emphasizing conservative spending, a $332.9 billion all-funds budget, and major priorities including property tax relief, public education, border security, health and human services, transportation, energy, and water infrastructure. She also introduced committee and leadership staff and described the hearing schedule and public testimony procedures. Comptroller Glenn Hager presented the biennial revenue estimate, saying the state has $194.6 billion available for general-purpose spending, including a $23.8 billion ending balance, but warned that revenue growth is returning to more normal levels and that lawmakers should avoid using temporary spikes for ongoing commitments. Senators questioned him extensively about the Economic Stabilization Fund cap, sales tax trends, inflation, and whether the state should consider raising the cap or using severance-tax revenues differently. Hager said the Rainy Day Fund is expected to hit its cap, which would leave more severance-tax revenue in general revenue, and he stressed that infrastructure needs remain significant. The Legislative Budget Board then gave a detailed overview of SB 1 and the budget’s major components. LBB staff explained that the bill includes continued funding for the Foundation School Program, $850 million for the Texas State Technical College endowment, $1.3 billion for the Texas University Fund, $6.5 billion for border security, salary increases for correctional officers and state troopers, $3 billion for dementia research, higher community attendant wages, expanded community-based care, $5 billion for the Texas Energy Fund, and funding to clear volunteer fire department grant backlogs. They also outlined supplemental priorities such as water infrastructure, retirement legacy payments, rail grade separations, wildfire aircraft, and emergency facilities, and said the current controlling budget limit is the tax spending limit. A major portion of the hearing focused on property tax relief. LBB explained that prior-session relief grew from an expected $18 billion to $22.7 billion because of higher-than-anticipated property values and interactions among hold-harmless provisions, and that SB 1 continues and expands relief with $51 billion in total property tax relief, including $3 billion more for compression, $3 billion to raise the homestead exemption from $100,000 to $140,000, and a $500 million placeholder for business tax relief. Senators discussed the automatic nature of some of these costs, the effect of the non-homestead circuit breaker, the role of federal COVID funds, and the need to maintain school finance commitments if the state continues to compress school tax rates.

Transcript Highlights:

• We also strategically held back on spending all of the surplus, which...
• We also strategically held back on spending all of the surplus, which leaves us with another sizable
• There is the legislature increased juror pay last session, and really leading up to this point, those surplus

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

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

Keywords: 1189, house, all

Transcript Highlights:

• President, we sit on, as was said before by a number of others, including myself, we sit on a budget surplus

Keywords: Scheduler, 972, senate, all

Transcript Highlights:

• AB 1947, Taa, surplus land report, do pass. That's out on an A roll call.

Summary: The Assembly Appropriations Committee held a suspense-file hearing on May 14, 2026, reviewing hundreds of Assembly bills and a few committee bills. The chair opened by explaining the committee’s budget constraints and the factors used in suspense decisions, including fiscal impact, return on investment, effects on constituents, and protection of the state’s social safety net. The agenda was organized alphabetically by author, and the committee noted that results would be posted later that day online. The committee then acted on a very large number of measures, sending many bills to the Assembly floor on do pass or do pass as amended motions, while holding many others in committee. Topics covered a broad range of policy areas, including housing, health care, education, labor, public safety, wildfire mitigation, water, energy, transportation, cannabis, immigration, and state governance. Many bills were amended to narrow scope, make implementation contingent on appropriations or existing resources, remove provisions, or clarify agency responsibilities; several bills were held without further action. Among the notable actions, the committee advanced bills on items such as Medi-Cal services, child care, wildfire-related programs, housing financing, school and college issues, public safety and criminal justice, environmental and energy policy, and various consumer and business regulations. Some measures were sent out on A or B roll calls, with Republicans often not voting on amended bills. The hearing concluded after the committee reported that a large number of bills had been moved to the Assembly floor, either as do pass or do pass with amendments, and the committee adjourned.

Transcript Highlights:

• Now, unfortunately, when the Democrats spent the $18 billion budget surplus, raised tax by $10 billion

Keywords: 918, senate, all

Summary: Senate Republicans discussed the governor’s supplemental budget and criticized proposed cuts to nursing homes, disability services, and counties, arguing the changes would hurt vulnerable Minnesotans and that the tax package would amount to roughly an $868 million increase. They said they were open to some family-focused tax provisions, such as an expanded child care or dependent credit, but opposed broader tax increases and several previously rejected ideas, including sales tax changes and a social media tax. A major topic was fraud prevention and the Office of Legislative Auditor report on kickbacks. Republicans said the report reinforced their push for a statewide independent Office of Inspector General with a law enforcement division and a broader fraud definition, and they argued the office would have handled the cases more effectively. They also said they support the concept of an OIG bill but want only modest amendments, while criticizing House Democrats for resisting the law enforcement division and for raising constitutional objections they called a drafting issue. The lawmakers also reacted skeptically to the governor’s proposed AI-related job development fund and $10 million in forgivable loans for businesses affected by Operation Metro Search, saying the aid would mainly benefit downtown Minneapolis and St. Paul rather than the broader state. They closed with broader comments that the session felt relatively normal and less intense than past years, noted ongoing work on a bonding bill, and joked about campaign politics, possible candidates, and even the idea of a Senate dog.

Transcript Highlights:

• The amendment then increases a civil contingency surplus fund from $15 million to $25 million.

Keywords: 994, senate, all

Summary: The Senate considered and passed House Bill 4245, the Department of Revenue rules bundle covering 27 rules from six agencies. Members withdrew the committee amendment, adopted a floor amendment making changes to two lottery rules and one tax rule related to pre-need cemetery companies, then passed the bill 30-1. The Senate also adopted a title amendment and made the bill effective from passage by a 31-0 vote. Later, when the House rejected the Senate’s amendments, the Senate receded from its amendments and again passed the bill, making it effective from passage. The chamber also adopted several concurrent resolutions from the Rules Committee, including studies on school finance transparency, divorce grounds, the Southern West Virginia water crisis, athletic trainer access in public secondary schools, the eastern gray fox population, upland game bird stamp purchases, and the Public Service Commission. Senate Concurrent Resolution 50, calling for a study of the PSC, was also adopted. In addition, the Senate passed House Bill 5381, which expands the Office of Energy’s role to develop a comprehensive energy policy and grid stabilization plan, and House Bill 5412, the Future Ready Education Act, after amending it to require annual vocational and agriculture offerings unless not viable and to set science-of-reading training requirements for K-5 literacy teachers by 2028-29. The Senate passed House Bill 845, a supplemental appropriation to the Governor’s Office Civil Contingent Fund, after concurring in a House amendment that reappropriated federal match grant funds and increased the civil contingency surplus fund from $15 million to $25 million; it was made effective from passage. The chamber also concurred in House amendments to House Bill 4106 on constitutional carry for 18- to 20-year-olds, House Bill 4004 creating the Recharge West Virginia training reimbursement program, House Bill 5453 revising the school aid funding formula for special education weighting, and other measures including House Bill 4009 on portable benefits, Senate Bill 164 on substitute teacher definitions, and House Bill 4606 on pretrial release for certain felonies. A lengthy debate centered on House Bill 4198, the E-Verify Safe Harbor Act. The Judiciary Committee amendment would have required public and certain private employers to use E-Verify, while a further amendment from the Senator from Randolph would have limited the mandate to public employers and made E-Verify optional for private employers with liability protections for good-faith use. After extensive discussion about small business impacts, federal-state conflicts, and enforcement, the Senate adopted the Randolph amendment and then passed the bill 31-3, with a title amendment also adopted. The Senate later refused to concur in House amendments to House Bill 4010, concurred in House amendments to House Bill 5438, receded from amendments to House Bill 4765, and adjourned sine die.

Transcript Highlights:

• actually guarantee that each cell within the company will be shielded not only from sharing capital and surplus

Summary: The Senate Committee on Banking and Insurance met with a quorum present and heard a full agenda of bills, most of which were reported favorably. Early in the meeting, SB 1000 on trust fund interest for attorney trust accounts was explained as setting a floor and ceiling tied to the Wall Street Journal prime rate and passed without objection after supportive testimony from banking and credit union groups. The committee then took up CS/SB 1082 on a statewide provider and health plan claim dispute resolution program; the sponsor described it as a way to move emergency out-of-network payment disputes away from costly litigation and into an independent dispute resolution process modeled on the federal No Surprises Act. A proposed amendment drew significant questions from senators and concerns from the Florida Insurance Council about confusion over state versus federal eligibility and possible effects on contracted rates, and the sponsor ultimately withdrew the amendment. The underlying bill was then supported by health care and insurance stakeholders and reported favorably. SB 684 on electronic signatures for total loss vehicles and vessels also passed, with Progressive Insurance waiving in support. The committee next approved CS/SB 158 on pet insurance, which requires continuing education for agents, clearer consumer disclosures, and annual reporting to OIR; the amendment was technical and adopted. SB 1494 on breast cancer screening coverage was presented as expanding required coverage for mammograms and supplemental screenings for certain insurance products, and it passed with support from cancer and radiology groups. CS/SB 314 on digital asset issuers was amended to create a Florida framework for payment stablecoin issuers consistent with the federal GENIUS Act, allowing state-level regulation as an alternative to federal supervision, and was reported favorably. SB 1500 on uncontested probate proceedings, including higher small-estate thresholds and clearer authority for personal representatives, also passed after a banking-related amendment requiring letters of administration for safe deposit box access was adopted. Later, the committee approved CS/SB 618 on workers’ compensation insurance, which raises the consent-to-rate cap for workers’ comp policies from 10% to 20% and adjusts the Florida Workers’ Compensation Guarantee Association board membership; a carrier representative testified that the change would help keep more high-risk accounts in the voluntary market. CS/SB 1568 on a Florida Stable Coin Pilot Program was amended to remove authority for DFS to create a Florida coin, limit the pilot to existing stablecoins with at least $1 billion market capitalization, and require qualified public deposit handling; it then passed. CS/SB 838 on electronic payments for retail installment contracts clarified that convenience fees for electronic payments are permissible while preserving a fee-free option, and it was reported favorably after questions about consumer access to free payment methods. SB 1452, the Department of Financial Services agency bill, made a wide range of administrative changes affecting My Safe Florida Home, unclaimed property, licensing, bail bonds, and other DFS functions; a late-filed amendment on title insurer appointments was adopted, and the bill passed. The committee also approved SB 1706 on the My Safe Florida Condominium Pilot Program, targeting condo hardening assistance to owner-occupied units meeting income and occupancy criteria, and SB 990 on protected cell captive insurance companies, which the sponsor and industry witnesses said would modernize Florida law and promote insurance competition and economic activity. The meeting ended with all bills on the agenda reported favorably and the committee adjourning without objection.

Transcript Highlights:

• chairman mentioned, back in 2023, you all provided the department with $4 billion of general revenue surplus

Summary: The Committee on Transportation received a presentation from the Department of Highway Safety and Motor Vehicles on Florida’s camera-based traffic enforcement programs: red light cameras, school bus stop-arm cameras, and school zone speed cameras. The department explained how the programs work, including human review of recorded violations, issuance of civil notices to vehicle owners, and escalation to uniform traffic citations if unpaid or uncontested. Officials also outlined the fee structure and reported preliminary data showing 42 red light camera jurisdictions, 496 red light cameras, and more than 923,000 notices of violation in fiscal year 2024-2025, along with growth in school zone and school bus programs. Senators asked about camera placement, signage, review procedures, and whether reviewers or vendors receive revenue from citations; several questions were left for follow-up because the witness did not have all statutory or operational details. The committee then heard an update from FDOT Secretary Jared Perdue on the Moving Florida Forward Infrastructure Initiative, funded by a $4 billion general revenue investment leveraged into a $7 billion program for 20 major projects. He said the initiative is advancing high-priority congestion relief projects across the state, with 80% of the plan expected to be underway by the end of 2026 and the remaining projects in 2027. Perdue highlighted new delivery methods such as modified phased design-build, voluntary acceleration, and structured acceleration, along with workforce and supply-chain efforts, including regional hiring events and aggregate planning. He cited projects such as I-4 congestion relief lanes, Golden Glades, I-95 at US-1, I-75 auxiliary lanes, and I-275 improvements as examples of the program’s progress. Members questioned FDOT about traffic management during construction, subcontracting opportunities for small businesses, public transit planning, contractor safety and fatalities, bridge strikes, logistics access near ports and airports, aggregate supply, local government coordination, and federal funding uncertainty. Perdue said FDOT continuously reevaluates traffic control plans, works with local governments and industry partners, uses small business participation targets, and requires contractors to be in good standing with OSHA and to implement corrective action plans after incidents. He also said Florida’s transportation revenues are flat, the state remains largely state-funded, and additional resources are the main need for future transportation delivery. The committee adjourned after the chair requested FDOT staff provide senators with district-specific project information.

Transcript Highlights:

• establishes clear definitions and conditions for permitted groups, and it sets explicit standards for surplus

Summary: The Senate Committee on Business and Commerce met with a quorum and took up a long list of pending House bills, most of them on motions by Senator King or Senator Campbell. The committee adopted committee substitutes and favorably reported numerous bills, including HB 252, HB 700, HB 1500, HB 1545, HB 1562, HB 1732, HB 267, HB 2213, HB 2221, HB 2520, HB 2818, HB 3016, HB 3214, HB 3250, HB 3512, HB 3623, HB 3689, HB 3833, HB 4063, HB 4395, HB 4690, HB 4751, HB 5331, HB 3824, HB 4464, HB 4468, and HB 5247. Most of these were sent to the local and uncontested calendar, while some, including sunset and other significant measures, were reported to the full Senate. HB 146 was the only bill reported out on a divided vote, passing 6 ayes to 4 nays. Several bills received brief explanation of committee substitute changes. HB 3016, dealing with rental car collision damage waivers and stolen vehicles, was amended to change a cooperation standard from “fully cooperate” to simply “cooperate.” HB 3689, a major ESF/TWA financing bill, was described as making technical changes to align terminology with the Comptroller’s authority and to avoid creating state debt or new liability. HB 5247, a capital cost recovery bill for transmission in the Permian Basin, was revised to clarify how the new mechanism fits with existing Utilities Code provisions and to add a 2035 expiration date. HB 3824, the battery fire safety bill, also received technical changes to align terminology with industry usage. The committee heard public testimony on several pending measures. HB 3069, which would direct the PUC to develop supplemental multi-decade planning criteria for transmission certificates in ERCOT, drew support from industry, environmental, and manufacturing witnesses who said it would help address congestion costs while balancing consumer protections; the bill was left pending. HB 5196, requiring state agencies to adopt and post telework policies and use written telework agreements, received both support and concern: supporters said it would preserve productivity and retention, while a senator raised concerns about notice and family logistics; it was left pending after testimony. HB 3112, allowing closed deliberations on cybersecurity policy details, was laid out and left pending after brief discussion. HCR 102, supporting federal nuclear tax credits, drew testimony from nuclear industry and energy advocates, who argued the credits are essential for existing plants, new nuclear development, grid reliability, and U.S. competitiveness; the resolution was left pending, with discussion about whether the language should focus more exclusively on nuclear. HB 705, creating a cosmetology licensure compact, was supported by industry, employers, and compact experts as a mobility tool that preserves state authority; HB 3516, expanding a public information exemption for Railroad Commission administrative law judges and technical examiners, and HB 3388, authorizing group property and casualty coverage for personal lines, were also heard and left pending. At the end of the meeting, the committee recessed subject to the call of the chair.

Transcript Highlights:

• Is it surplus? Right, but I guess do y'all know the sources, the origins of how we get the ESF?

Bills: HB104

Keywords: property tax, ad valorem tax, tax rate election, voter-approval tax rate, no-new-revenue tax rate, de minimis rate, local government, special district, tax increase, tax notice, public hearing, tax code, Health and Safety Code, Texas property taxes, taxing unit, election threshold, two-thirds vote, majority vote, budget approval

Transcript Highlights:

• Nations like Brazil, Netherlands, Australia, and others, where we have a trade surplus, where we don't

Keywords: Senator Flinstone, HB22, SB4, amendments, public testimony, legislation, environmental impact, economic implications

Summary: The meeting featured a thorough examination of various bills, including substantial discussions on HB22 and SB4. Key points included amendments proposed by committee members, particularly from Senator Flinstone, who emphasized the need for clarifications on certain provisions. The committee actively engaged with several witnesses providing public testimony, some in favor of the proposed legislation while others highlighted concerns and potential implications. The discussions were vibrant, showcasing different perspectives, especially on the environmental and economic impacts of the bills in question. The meeting concluded with a consensus to reconvene after a recess to further address the outstanding issues related to the bills.

Transcript Highlights:

• In 2022, we had a million-dollar surplus, which is great. Now we have a major deficit.

Summary: The Assembly Transportation Committee heard several transportation and climate-related bills. AB 954 would create a Caltrans pilot program for bike highways in two metropolitan areas and require a report to the Legislature; supporters said it would expand protected regional bike networks and help climate and equity goals, while some members objected that it would divert gas-tax-funded transportation dollars away from road repairs and rural needs. The bill passed on a 7-3 vote, with the roll held open for later additions. AB 289 would authorize automated speed enforcement in active highway construction zones to protect workers. The author and labor and contractor witnesses described repeated work-zone crashes and fatalities and argued the cameras would supplement, not replace, CHP enforcement. Some members raised concerns about civil penalties and enforcement policy, but the bill advanced on a 9-? initial vote and later was approved 15-1 after the roll was completed. AB 674 would update the Clean Cars for All program to prioritize pre-2004 high-polluting vehicles in disadvantaged and low-income communities and improve reporting and incentive rules. Supporters said older vehicles produce a disproportionate share of emissions and that the program has already retired thousands of cars; the committee approved the bill unanimously on the floor vote and sent it to the Committee on Natural Resources. AB 1237 would let LA Metro and VTA add a $5 fee to primary ticket sales for 2026 FIFA World Cup and NCAA championship events to fund transit service, with ticket holders able to use transit on event day. Supporters said the fee would help manage congestion and security needs, while the Howard Jarvis Taxpayers Association argued it was an unconstitutional tax requiring voter approval. The bill passed and was re-referred to the Committee on Arts, Entertainment, Sports, and Tourism. AB 891 would create a Caltrans quick-build pilot for temporary safety improvements on state highways for pedestrians and bicyclists; supporters emphasized rapid, low-cost safety fixes, while opponents said the program could divert gas-tax funds and was not appropriate for rural areas. It passed 11-4 and was sent to Appropriations. The committee also approved a six-bill consent calendar.

Transcript Highlights:

• after two years of being completely shut out of discussions as the Democrats spent $19 billion of surplus

Keywords: 1187, senate, all

Transcript Highlights:

• THEY HAVE 32 MILLION IN SURPLUS. THEY ARE BUYING REINSURANCE THROUGH THE FUND.

Keywords: 999, senate, all

Transcript Highlights:

• And the remainder of that is called surplus, unassigned funds.
• that<00:50:53.760> is<00:50:54.400> is So they're unassigned funds, and that's the surplus
• You know, their insurance regulations, their surplus premiums have to be, uh, they have to do something
• regulations, you know, their insurance regulations, you<00:57:05.440> their<00:57:05.599> surplus
• premiums have to be uh you their surplus premiums have to be uh they<00:57:08.319> have<00:57

Keywords: 1136, house, all

Transcript Highlights:

• So this, you know, almost a $100 million drop that will eat up any surplus that's remaining in the Education
• It would drain the potential surplus that was in the Education Trust Fund.
• So, as was mentioned to the committee in 2023, when you looked at the surplus statement that we had at
• /c><04:31:27.279> looked<04:31:27.520> at<04:31:27.640> the<04:31:27.880> Surplus
• 2023 when you looked at the Surplus 2023 when you looked at the Surplus statement<04:31:28.720><

Keywords: 928, house, all

Summary: The committee opened a public hearing on HB 402, a bill dealing with whether Education Freedom Account (EFA) payments should be described in state law as not constituting taxable income. The bill sponsor argued that the current statute is misleading because New Hampshire should not imply a federal tax result, and said the bill would remove that language and could also be amended to clarify that families should consult tax advisors. He emphasized that the measure was not intended to impose a state tax on EFAs, but to avoid giving inaccurate advice about possible federal tax liability. Testimony was divided. A retired representative and a tax preparer both opposed the bill, saying EFA payments are already treated consistently with IRS rules and that the bill would create confusion, administrative burden, and possible tax consequences for low- and moderate-income families. They argued the bill is a solution in search of a problem and warned that requiring 1099s could add costs for the scholarship organization and recipients. A tax attorney supported the bill’s repeal of the state language, saying New Hampshire should not put tax advice into statute and that the current wording is inaccurate because federal law, not state law, controls taxability. He cited IRS Section 117 and Publication 970, explaining that only some scholarship-like payments are tax-free and that many EFA-eligible expenses may not qualify for federal exemption. Members asked questions about what would be misleading, whether the bill was trying to tax EFAs, and the cost of issuing 1099s. The sponsor and witnesses repeatedly said the bill was not a state tax on voucher payments, but a clarification about federal tax treatment. No vote or final committee action was taken in the portion provided.

Transcript Highlights:

• So this, you know, almost a $100 million drop that will eat up any surplus that's remaining in the Education
• It would drain the potential surplus that was in the Education Trust Fund.
• As was mentioned to the committee in 2023, when you looked at the surplus statement that we had at that
• /c><04:31:27.279> looked<04:31:27.520> at<04:31:27.640> the<04:31:27.880> Surplus
• 2023 when you looked at the Surplus 2023 when you looked at the Surplus statement<04:31:28.720><

Keywords: 928, house, all

Summary: The committee held a public hearing on HB 402, a bill to repeal a provision in RSA 194-F:2 stating that Education Freedom Account (EFA) funds “shall not constitute taxable income” to the parent or student. The bill sponsor argued the current language is misleading because the state cannot determine federal tax liability, and said the bill would simply remove inaccurate tax advice from state law. He cited IRS guidance and prior federal legislation, including a Ted Cruz proposal, to suggest some EFA uses may be taxable under federal law, while others may not, and said the bill could be amended if needed to avoid confusion. Testimony was sharply divided. Py Campbell opposed the bill, arguing it would unfairly single out EFA students and could amount to a tax on education funds, including for self-employed families, and recommended it be voted inexpedient to legislate. Stephen Matthew French, a tax preparer, also opposed the bill, saying IRS Publication 970 already makes clear that scholarship-type payments used for tuition and related expenses are not taxable, and that the bill addresses a problem that does not exist. He warned that adding tax reporting requirements could create administrative costs for families and the program administrator. Bill Ardinger, a tax attorney, supported the repeal of the statutory language, saying the state should not place potentially incorrect tax advice into law. He explained that under federal tax law, only certain scholarship-like uses are exempt, while many EFA-eligible expenses may not be, especially for families using the program for homeschooling or other nontraditional expenses. He said the current statute could mislead families into thinking all EFA payments are tax-free and could expose the state to future legal problems. The hearing ended after questions from committee members; no vote or final action was taken in the transcript.