Transcript Highlights:

• They are now on their own salary schedule, which allows us to compete with the private sector.
• </c> Hawaii they are now on their own salary Hawaii they are now on their own salary schedule<00:13:12.399
• </c> we've made with the with the new salary we've made with the with the new salary schedule<00:15:50.639
• </c> that's going to be a budget adjustment that's going to be a budget adjustment to<01:28:40.239><c
• </c> advantage of what is that in a salary advantage of what is that in a salary number<01:59:11.079>

Summary: The joint Ways and Means and Government Operations committees received a biennium budget preview from Keith Regan, Comptroller and Director of the Department of Accounting and General Services (DAGS), who introduced department leadership and described DAGS’ broad responsibilities across accounting, public works, procurement, elections, archives, risk management, and other attached agencies. He emphasized that DAGS supports nearly every state department and cited ongoing workforce challenges, while noting progress in reducing the department-wide vacancy rate from 21% in 2023 to 17.7% in 2024. He also highlighted recruitment efforts, including new salary schedules for engineers and architects, job fairs, internships, and outreach to retiring federal employees. A major focus was modernization of the state’s aging financial systems, especially the 55-year-old FAMIS platform and the Enterprise Financial System (EFS) project. DAGS said it expects to release the RFP for the FAMIS replacement by the end of January and is seeking a second tranche of CIP funding, including $35 million, plus position augmentation and creation of a Business Transformation Office to manage EFS and future modernization work. The department also described major capital projects such as the Aloha Stadium Entertainment District, Wahiawā Civic Center, Kauaʻi Civic Center, and Ahuimanu Community Correctional Center, and reported that Public Works is managing 455 projects statewide valued at more than $2.5 billion. Other budget requests discussed included funding for cemetery operations, with DAGS asking for two positions and $1 million in operating funds to support maintenance of eight cemeteries; a $200 million ceiling increase tied to anticipated insurance proceeds for West Maui fire-related recovery and rebuilding; and several staffing and operating items for district offices and facilities. These included full-year funding for positions in West Hawaiʻi and East Hawaiʻi, support for a small business coordinator at the State Procurement Office, funding for cloud hosting and PeopleSoft licensing, six positions and staff augmentation for the EFS project, electricity costs, and security-related funding. DAGS also noted that two requested reductions totaled $7.9 million, including transferring the security contract to the Department of Law Enforcement and reducing nonrecurring expenses; members discussed whether some security funding should remain with or be moved to DLE, and DAGS said it would not object to that transfer. No votes were taken in the portion provided.

Transcript Highlights:

• Um, the first recommendation is for our agency operating adjustment, and this is to help cover growing
• Um, the first recommendation is for our agency operating adjustment, and this is to help cover growing
• </c><00:21:46.159><c> and</c> for our agency operating adjustment and for our agency operating adjustment
• Next up, File 2902, Senator Abler. adjustments as we go along.
• Appreciate adjustments as we go along.

Committee: Senate State and Local Government

Transcript Highlights:

• Subdivision 11, which is assignment adjustments, just requires hospitals to assign staff consistent with
• Under this bill, there is no flexibility to adjust with existing staffing and no ability for leaders
• As in the prior examples, this bill makes common-sense adjustments for those situations illegal, and
• According to several sources, Minnesota's nurse salaries are the highest in the country when adjusted
• for highest in the country when adjusted for cost<00:31:52.399><c> of</c><00:31:52.559><c> living,</

Committee: Senate Labor

Transcript Highlights:

• And as we develop the bill, we'll go ahead and make some adjustments, what we have to in reference to
• probably be smaller because it can't absorb the entire window for the merchant, so everything will be adjusted
• 1309 asked the state to pay Cal Fire rank-and-file firefighters within 15 percent of the average salary
• 1309, asked the state to pay Cal Fire, rank, and file firefighters within 15 percent of the average salary

Committee: Senate Revenue and Taxation

Summary: The committee heard several bills focused on public health, wildfire recovery, local government finance, transportation, and rural health care. SB 1124 by Senator Archuleta would require the California Department of Public Health to create and post lung cancer screening eligibility signage at tobacco retail locations. The author and a physician witness argued the bill would raise awareness of a highly underused screening that can save lives, while retailers and fuel/convenience groups raised implementation concerns about signage size, notice, and penalties. The bill passed to the Health Committee on a 4-0 vote after the committee later took up the on-call item. SB 1352 by Senator Valadao and Senator Allen would clarify that wildfire victims can rebuild homes up to 110% of the original size without triggering reassessment, so long as the property was destroyed in a governor-declared disaster. Supporters, including the L.A. County Assessor, the California Assessors Association, Realtors, and taxpayers groups, said the bill would reduce uncertainty and help families rebuild without higher property taxes. It passed to Appropriations on a 5-0 vote. SB 1343, presented by Senator Allen on behalf of Senator Dodd, would provide a $4,000 income tax credit for sales tax paid on furniture and appliances purchased to furnish a primary residence after a disaster; it drew one opposition witness from the California Teachers Association but otherwise had no public opposition and passed 5-0 to Appropriations. SB 1172 by Senator Hurtado would place caps and transparency requirements on consultant compensation in local tax-sharing agreements, responding to cases in Shafter and Dinuba where revenue was allegedly diverted to consultants. Local government and business groups supported the measure as a guardrail, while some members expressed concern about Sacramento limiting local control; it passed 4-0 to Appropriations. SB 1408 by Senator Arreguín would authorize the Contra Costa Transportation Authority to place a countywide sales tax measure of up to 1% on the ballot to continue transportation funding; transit agencies and local officials supported it, while taxpayer groups opposed it, and it passed 4-1. SB 1404 by Senator Stern would restore a fee on property owners in state responsibility areas to fund Cal Fire wildfire prevention and suppression, with supporters arguing the fee would broaden funding and opponents calling it an unfair tax on rural and wildfire-prone residents; it passed 4-1 to Appropriations. Finally, SB 1102 by Senator Dodd would create a $2,000 tax credit for frontline nurses working in rural hospitals; supporters said it would help recruit and retain nurses in underserved areas, and the bill passed 5-0 as amended to Appropriations.

Transcript Highlights:

• And as we develop the bill, we'll go ahead and make some adjustments, what we have to in reference to
• probably be smaller because it can't absorb the entire window for the merchant, so everything will be adjusted
• Assembly Bill 1309 asked the state to pay Cal Fire rank-and-file firefighters within 15% of the average salary
• 1309, asked the state to pay Cal Fire, rank, and file firefighters within 15 percent of the average salary

Summary: The committee heard several bills focused on public health, wildfire recovery, local finance, transportation, and rural health care. SB 1124 by Senator Archuleta would require the California Department of Public Health to create and post signage at tobacco retail locations about lung cancer screening eligibility. The author and a UC San Diego thoracic surgery resident testified that lung cancer screening is underused because many Californians do not know it exists, while retailers and convenience store groups raised implementation concerns about sign size, store space, and notice before penalties. Members discussed penalties and screening access, and the author said he was willing to reduce the penalty in later amendments. The bill passed 4-0 and was sent to the Committee on Health. The committee also considered several disaster-related tax measures. SB 1352 by Senator Valadao and Senator Allen would clarify that wildfire victims can rebuild homes up to 110% of the original size without losing their Proposition 13 base-year value, and it received support from the Los Angeles County Assessor, the California Association of Realtors, and the Howard Jarvis Taxpayers Association. SB 1343, presented by Senator Allen on behalf of Senator Dahle, would create a $4,000 income tax credit for sales tax paid on furniture and appliances purchased after a disaster for a primary residence; the chair raised concerns about administration and benefits flowing to higher-income households, and CTA opposed. Both bills were approved and sent to Appropriations, with SB 1352 passing 5-0 and SB 1343 passing 5-0 after committee amendments were accepted. SB 1172 by Senator Hurtado would place limits and transparency requirements on consultant compensation in local tax-sharing agreements, responding to examples from Shafter and Dinuba where local revenue was allegedly diverted to consultants. The city of Shafter, League of California Cities, and California Retailers Association supported the bill, while some members worried it could infringe on local control; the author and sponsor argued it would protect local tax dollars without eliminating local discretion. The bill passed 4-0 and went to Appropriations. SB 1408 by Senator Arreguín would authorize Contra Costa Transportation Authority to place a countywide sales tax measure of up to 1% on the ballot to continue transportation funding; supporters included transit agencies and county officials, while Howard Jarvis and the Contra Costa Taxpayers Association opposed. The committee emphasized that the measure only lets voters decide, and the bill passed 4-1. The committee also took up SB 1404 by Senator Stern, which would restore a fee on property owners in state responsibility areas to help fund Cal Fire wildfire prevention and suppression, with the author saying he wanted to reduce administrative costs and work on hardship protections. NRDC and PG&E supported the concept, while rural county representatives, Howard Jarvis, and Butte County opposed, arguing the fee would unfairly burden rural and fixed-income residents and function like a tax. Members split over affordability and local impacts, but the bill passed 4-1. Finally, SB 1102 by Senator Dodd would create a $2,000 tax credit for frontline nurses working in rural hospitals; supporters said it would help retention and access to care in underserved areas, and the bill passed 5-0 after committee amendments were accepted. The consent calendar and other listed bills were also approved on unanimous or near-unanimous votes.

Transcript Highlights:

• And as we develop the bill, we'll go ahead and make some adjustments, what we have to in reference to
• probably be smaller because it can't absorb the entire window for the merchant, so everything will be adjusted
• 1309 asked the state to pay Cal Fire rank-and-file firefighters within 15 percent of the average salary
• 1309, asked the state to pay Cal Fire, rank, and file firefighters within 15 percent of the average salary

Committee: Senate Revenue and Taxation

Transcript Highlights:

• First of all, pretty much, retirement is supposed to be based on salary, not the election you get.
• But it was so specific that it wasn't—it didn't say salary. It says overtime doesn't apply.
• they go up by a certain percent, then the amount that is calculated over 15 years is proportionally adjusted
• The amount calculated over 15 years is proportionally adjusted so that the municipality is only paying

Committee: House Retirement

Transcript Highlights:

• certain eligibility requirements. ...and have a household income at or below 60% state median income, adjusted
• The PERS 1 and TRS 1 were created without regular cost-of-living adjustments, and while there was an
• largely due to the early... ...retirement ages and more generous formula for calculating average final salary
• as gain-sharing, were stripped away from us, and our retirement pensions are based on much lower salaries

Summary: The House Appropriations Committee held a public hearing on a series of bills, beginning with House Bill 2689 on Working Connections Child Care. Staff explained that the proposed substitute would keep eligibility at 60% of state median income, eliminate scheduled expansions to 75% and 85%, reduce future subsidy rates from the 85th to the 75th percentile of market, end enhanced regional rates, and change reimbursement rules from prospective enrollment-based payments back to attendance-based payments with a reduced monthly payment after 11 absent days. Child care advocates thanked the committee for removing the proposed cap on the program but opposed the cuts to provider rates and eligibility expansions, warning of harm to families and providers. The committee then heard Engrossed Substitute Senate Bill 5124 on Medicaid network adequacy for post-acute care, with staff noting administrative costs and indeterminate fiscal effects; hospitals supported the bill as a way to reduce discharge delays and reliance on single-case agreements. Senate Bill 5832, which would raise the new motor vehicle arbitration fee from $3 to $6 to support the Lemon Law arbitration program, drew support from the Attorney General’s Office and auto dealers, who said the fee had not been updated since 1995 and the program was underfunded. The committee also heard Substitute Senate Bill 5862, providing a one-time 3% COLA for certain PERS 1 and TRS 1 retirees, with retirees testifying in favor and local government representatives warning about added employer costs. The committee next heard Senate Bill 5922, allowing school districts to transfer money from the Transportation Vehicle Fund to other funds if they reduce their fleet and receive OSPI approval; staff said the bill would mainly add administrative work for OSPI, and no one testified. Substitute Senate Bill 5923 would allow a hospital on an island in Skagit County to qualify as a critical access hospital if federally certified; Island Health testified that the designation would help sustain rural services, and a committee member asked about bed count and Medicaid/charity-care pressures. Senate Bill 5944 would require language access providers to bargain over compensation for missed or canceled appointments and clarify that statutes prevail over conflicting contract terms; WFSE supported the bill, saying it would equalize bargaining rights across agencies. Substitute Senate Bill 5972 would extend interest arbitration rights to correctional employees in city and county jails regardless of population size; labor supported the bill as a retention tool, while cities and counties opposed it, arguing it would raise costs and should include ability-to-pay protections. The committee also heard Senate Bill 5988, authorizing the Department of Health to continue accrediting opioid treatment programs and charge accreditation fees, which DOH said was needed to avoid winding down the program. Later, the committee heard Senate Bill 6151, which would move Ecology fee revenues for landfill methane emissions and laboratory accreditation into dedicated accounts; Ecology supported the bill as improving transparency and reinvesting fees into the programs, and staff said the lab fee shift would be offset by a related budget action. Engrossed Substitute Senate Bill 6194 would pay a rural hospital on a federally recognized Indian reservation, specifically Astria Toppenish, at 150% of the Medicaid fee-for-service rate beginning in 2027; hospital leaders and community members testified that the hospital serves a high-Medicaid, rural, and tribal population and faces persistent losses. Finally, Engrossed Substitute Senate Bill 6302 would direct L&I to investigate possible misclassification of independent contractors on public works projects involving multiple workers doing the same finishing work; labor and business representatives both described it as a negotiated compromise to address underground economy abuses. The committee took no final votes during the hearing and ended by reiterating amendment deadlines for bills scheduled for executive session.

Transcript Highlights:

• for the example, just economically, if it is a veteran that's retired, he's getting half his base salary
• He's getting half his base salary. He's getting 100% disabled.
• So it requires a county vote and allows the counties to adjust or rescind the program.
• Allows the counties to adjust or rescind the program.

Committee: House Special Committee on Tax Reform

Summary: The Special Committee on Tax Reform heard three measures focused on property tax relief and tax administration. House Bill 2869, sponsored by Rep. Mike Jones, would authorize counties to offer up to a 100% property tax credit on the primary residence of 100% permanently and totally disabled veterans, with a $500,000 value cap, surviving-spouse carryover, no stacking with other credits, and protections for bonded indebtedness. Jones and supporting witnesses from Missouri veterans organizations said the bill is a practical, county-option approach that recognizes veterans’ service and could help keep federal retirement and disability income in Missouri. The Department of Revenue noted the bill could reduce eligibility for the existing property tax credit and urged timely fiscal-note review. No opposition testified. The committee also heard H.J.R. 115, sponsored by Rep. Dave Griffith, which would place a constitutional amendment before voters to exempt 100% disabled veterans from personal property tax and homestead-related taxes, with surviving-spouse protections. Griffith said the measure has been pursued for years, would affect a relatively small number of veterans, and should be treated as a common-sense benefit for service-connected disabilities. Veterans’ groups strongly supported the resolution, describing it as overdue relief for veterans on fixed incomes and urging the committee to move it forward. Several members discussed whether the policy should be in the Constitution or statute, but all testimony was in favor. Finally, the committee heard HB 3303 from Rep. Cecily Williams, a cleanup bill to clarify that state and local sales or use taxes are exempt when the General Assembly purchases goods or lodging for official business and is reimbursed with public funds. Williams said the current statute lists outdated tax categories and leaves some local taxes on reimbursable expenses, causing the state to pay unnecessary taxes. Members generally supported the concept, and the Department of Revenue testified only on the need for timely fiscal-note requests and said the fiscal impact appeared minimal. No one testified in opposition to any of the three bills, and the committee concluded its hearing without taking final action or votes in the transcript provided.

Transcript Highlights:

• You know, 85% of expenditures that schools use goes to salaries and benefits.
• Those go to salaries and benefits. We are dealing with the teacher shortage.
• I'm just trying to make adjustments to the laws as it's written.
• I know it's a smaller amount, and I appreciate the sponsor adjusting this from last year, but I think

Committee: House Ways and Means

Transcript Highlights:

• an act relating to labor, increasing the minimum wage for certain employees, providing an annual adjustment
• violations of the Oil and Gas Act, increasing certain application fees in the Oil and Gas Act and adjusting
• Caballero (member_12219), an act relating to state employees, providing for a future increased minimum salary
• Salary, annual leave accrual rates, and paid parental leave, providing for state employee recruitment

Transcript Highlights:

• So that plays right into that staff salary request.
• Yes, in our unified budget, we have the request for the staff salaries.
• To make it somewhat easier, we could try to adjust some of the glitches and barriers.
• So there is some avenue to maybe try to adjust a little bit.

Committee: House House Judiciary

Transcript Highlights:

• Senate requires the university to submit a report about for-profit funds used to pay for faculty salaries
• Senate requires the university to submit a report about for-profit funds used to pay for faculty salaries
• I just want to clarify there were a few adjustments that I had been in conversation with OHE and the
• Um, my look at the used budget over the years has seen a lot of growth in administration and salaries
• and I think administration and salaries and I think um<01:04:16.000><c> putting</c><01:04:16.640><c>

Summary: The conference committee received a nonpartisan walkthrough of the House and Senate side-by-side for higher education-related legislation, with staff identifying Senate-only, House-only, identical, and technical-difference provisions. Topics included paid blood donation leave for Minnesota State employees, a revised higher education attainment goal, athletic fee restrictions, developmental course disclosures, American Indian Scholars Program eligibility, protections and definitions for pregnant and parenting students, online program management contracts, student aid reporting, work-study and dual training grants, private and out-of-state postsecondary education regulation, private career school licensing and data privacy, college savings plan changes, and several University of Minnesota-related provisions. House-only items also included an unemployment insurance aid adjustment, a $1.5 million ongoing appropriation for an identity verification system to combat enrollment fraud, and $5,000 for Bemidji State University reforestation; Senate-only items included Board of Regents appointment language, limits on for-profit control of medical school curriculum, and reporting on for-profit funding in medical education. After the walkthrough, the committee moved to adopt the same and similar provisions and direct staff to make technical corrections. A senator asked about proposed adjustments to the pregnant and parenting student language, and the chair said amendments would be considered after adopting the same and similar provisions. The motion to adopt prevailed. During public testimony, Sydney Spre of the Minnesota Association of Professional Employees supported the Senate’s paid blood donation leave language, saying it would create parity for Minnesota State employees and encourage blood and plasma donation. Commissioner Dennis Olsen of the Office of Higher Education thanked the committee for adopting most of the agency’s proposed language and said he was available to help clarify remaining differences. In response to questions, he explained the Senate’s higher education attainment goal proposal, saying it would extend and broaden the existing goal, raise the target from 70% to 75%, expand the age range, and use additional metrics and partner agencies; he also said the overall attainment rate had been 63.5 under the prior goal. The transcript ends as the commissioner was being asked whether the proposal would require additional appropriations.

Transcript Highlights:

• adjusted? adjusted?
• But those salary the judge's salaries are set in statute.
• But those salary the judge's salaries are set in statute. >> But they do the SPB does this 13 state evaluation
• of judicial salaries in other states.
• ><c> salaries</c><05:30:52.400><c> are</c> those salary the judge's salaries are those salary the judge's

Transcript Highlights:

• . >> Senate Bill 2, an act relating to salaries of school administrators. Senator Rocky Adams.
• Clerk, please report. salaries of school administrators. salaries of school administrators.
• it all year because it's a great bill, but I still think there were some things that needed to be adjusted
• /c><00:21:49.840><c> needed</c><00:21:50.080><c> to</c><00:21:50.159><c> be</c><00:21:50.320><c> adjusted
• </c> some things that needed to be adjusted. some things that needed to be adjusted.

Transcript Highlights:

• What category they fell into and what that salary is.
• I have to say from my previous state experience that attorney salaries were not very high.
• And if we could bump that employee salary, maybe, I mean, and.
• On the other hand, FMLA would be not adjusting the environment at all and telling that worker once they
• So if you could just hang on so we can make that adjustment. It's real... Ms.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• hospital systems, some of our health care providers, have just arbitrarily said, okay, if you want a salary
• hospital systems, some of our health care providers, have just arbitrarily said, okay, if you want a salary
• These include adjustable-rate mortgages, second mortgages, and down payment assistance.
• These include adjustable-rate mortgages, second mortgages, and down payment assistance.
• This structural adjustment promotes smoother governance and can prevent delays caused by deadlock votes

Committee: House Higher Education

Summary: The Assembly Higher Education Committee heard several measures focused on access, affordability, workforce development, and campus operations. AB 662, by Assembly Member Alvarez, would create a South County Higher Education Task Force to explore a mixed-use intersegmental higher education institution in Chula Vista to address the lack of nearby public university access in South San Diego County. Supporters, including Southwestern College and the City of Chula Vista, described the region as a “college desert” and said the bill would help coordinate UC, CSU, and community college partners. The committee approved the bill on a due pass as amended motion. Members also heard AB 885, which would establish a College Access for All Fund to help address college affordability and student debt, and AB 730, which would provide funding to support development of a medical school in the Central Valley to address physician shortages. Both measures drew support from higher education and labor groups, and both were advanced to Appropriations. AB 1400 proposed a pilot allowing up to 15 community college districts to offer a bachelor’s degree in nursing; supporters said it would expand affordable BSN access and help meet the nursing shortage, while CSU and nursing education groups opposed it, arguing existing ADN-to-BSN pathways and clinical/faculty limits made the proposal unnecessary or harmful. The committee still moved AB 1400 forward on a due pass vote. The committee also considered AB 1235, requiring CSU design-build projects to use a skilled and trained workforce, which supporters said would improve safety, training, and local job opportunities; it passed on a due pass vote. AB 1247, aimed at limiting contracting out of classified school and community college jobs and requiring stronger training and retirement protections, drew support from labor groups but opposition from school and community college organizations concerned about flexibility, costs, and implementation; it advanced on a divided vote. Finally, the committee heard AB 1470, which would allow student housing loan funds to be used in downtown and commercial districts, and ACA 3, which would require UC to offer limited down payment loans to eligible support staff; both drew support from labor and housing advocates, while UC opposed ACA 3 as inconsistent with its mission and financially burdensome. The transcript ends during discussion of ACA 3, with no final action shown for that item.

Transcript Highlights:

• It's set up to process the claims, and so they would have to adjust those.
• And so they would have to adjust those.
• So half the states in the union have now banned co-pay accumulator adjustment plans.
• Seven have accumulator adjuster language in them. They're in the red box on your handout.
• In your handout, seven of those have accumulator adjuster language in them.

Committee: House Health and Mental Health

Summary: The committee first heard House Bills 2365, 2490, and 2249, a bipartisan version of Elijah’s Law, which would require child care facilities to receive training and guidance on recognizing and responding to food allergies and anaphylaxis. Sponsors described the bill as a response to the death of Elijah, whose daycare did not administer epinephrine quickly enough after a food exposure. Witnesses in support, including a parent and food allergy advocate, said the measure would improve preparedness and save lives. Committee members asked about whether the bill should use broader epinephrine terminology, whether the requirements could also be handled through child care licensing rules, and whether the bill was already included in a larger measure. No opposition was presented, and the hearing on those bills was closed. The committee then heard House Bill 1965, which would require insurers to reimburse athletic trainers for covered services and add athletic trainers to the practitioner definition for billing purposes. The sponsor and athletic training witnesses said the bill would recognize athletic trainers as licensed health care providers, improve access in rural and underserved areas, and allow reimbursement when trainers work in clinics, hospitals, or other non-school settings. Committee members raised repeated questions about the difference between athletic trainers and physical therapists, whether school-based services were already paid through contracts, whether the bill would increase costs or create double payment, and how diagnosis and billing would work under the current scope of practice. Opponents from Blue Cross and Blue Shield of Kansas City and the Missouri Insurance Coalition argued the bill would create a mandate, increase costs, and expand billing before clarifying the underlying scope of practice. No vote was taken in public hearing. The committee then moved into executive session and voted several bills do pass. A substitute was adopted for House Bill 1826 and the committee substitute for House Bills 1826, 2560, 2349, and 2194 passed 17-0. House Bill 1783 also passed 17-0. House Bill 2372, which incorporated multiple related provisions including changes to epinephrine terminology and other committee items, passed 17-1 after a substitute and amendment were adopted. House Bill 1827, the occupational therapy bill related to disabled placards and license plates, passed 18-0. The committee then returned to public hearing and heard House Bills 1941 and 2279, which would prohibit copay accumulator programs for fully insured plans so that third-party assistance counts toward a patient’s deductible and out-of-pocket maximum. Sponsors and a rheumatologist testified that the bills would prevent patients with serious illnesses from being forced to pay the same deductible twice and said similar laws have been enacted in many other states. Opponents from America’s Health Insurance Plans argued the measure would affect only a minority of plans, raise costs in the individual and small-group market, and could worsen affordability for remaining enrollees. The hearing ended without a vote on those bills.

Transcript Highlights:

• I've been going to House and Senate committees talking about proposals that fund teacher salaries, DOE
• ,</c><00:01:55.280><c> DOE,</c> teacher salaries, DOE, teacher salaries, DOE, all<00:01:57.160><c> of
• As you can see salary schedule as well.
• </c><00:11:03.760><c> schedule</c> here, this is what our salary schedule here, this is what our salary
• ><c> the</c><02:05:18.520><c> options</c> until the system adjusts, the options until the system adjusts

Bills: HB1890 , HB1888 , HB1676

Committee: Senate Education

Summary: The committees heard three measures, beginning with HB 1890 HD3, which would provide automatic step increases and a COVID-era retention bonus for teachers. Supporters included HSTA, the Democratic Party’s Education Caucus, and a student who said higher pay and predictable salary growth would help retain teachers in Hawaii. The Department of Education supported the intent but asked that the bill be expanded to cover all department employees. The Attorney General’s office said the draft needed clarification to avoid conflict with Chapter 89 and to make clear any funding was subject to legislative appropriation. The Office of the Public Defender and B&F testified in opposition, and committee members questioned whether the step increases were already in the current contract and whether the bill was needed. HSTA said the current contract includes automatic step increases subject to funding, but argued the bill was still needed because funding is not guaranteed and the measure would codify the policy. HSTA also said the COVID bonus would apply only to active teachers who worked during the pandemic and estimated the total cost at roughly $150 million to $200 million over four years. No vote was taken in the portion provided. The committee then took up HB 1888 HD3, which would require DOE and charter schools to report harassment incidents and strengthen penalties for harassment of educational workers from a petty misdemeanor to a misdemeanor. DOE supported the bill and suggested narrowing language about assisting workers with temporary restraining orders, saying that function would be better handled through the Attorney General’s pilot program. The Office of the Public Defender opposed the bill, arguing the harassment language was overly broad, vague, and potentially unconstitutional, and that existing assault and terroristic threatening statutes already protect educational workers. HSTA, the State Commission on the Status of Women, and several individual testifiers supported the measure, describing increased intimidation and harassment of teachers and other school staff, especially since COVID. The Special Education Advisory Council opposed the bill’s language on “disrupting and interfering” with school functions, saying it could chill parents of students with IEPs from advocating for their children. Testimony was split, with the chair noting 20 in support and 16 in opposition in the portion shown. A final witness, Michelle Pestana, testified in opposition based on her family’s experience with special education services, describing alleged seclusion and restraint of her daughter and expressing concern that DOE testimony in prior hearings had targeted special education parents. Her remarks were cut off as time expired. The transcript ends before any committee action or vote on HB 1888 was taken.

Transcript Highlights:

• There's an inflation adjustment; that $3,000 is adjusted for inflation annually because we know that
• </c> have an inflation adjustment. have an inflation adjustment.
• </c> salary out of um your public service. salary out of um your public service.
• So, uh, do you have any guidelines as to how they'll be paid, like salary or per diem expenses?
• It's not salary. Compensation can take different shape or form.

Committee: House Commerce and Consumer Affairs

Summary: The subcommittee focused primarily on a bill concerning long-term care insurance rate increases and consumer notice. Members and staff discussed replacing or supplementing a proposed public hearing requirement with annual reporting, website updates, and consumer-facing disclosures about approved rate increases, carriers writing the products, and how the products work. Several participants emphasized that long-term care policies are long-term products, that rate increases can be spread over many years for actuarial reasons, and that consumers need better information about trends and the impact of increases. A major point of disagreement was whether the bill should try to cap premium increases. One member argued the real problem is unexpected increases of 15% to 20% and urged a statutory cap to protect consumers. Insurance department representatives and others responded that hard caps had been struck down in prior case law, that the department’s core responsibility is solvency, and that carriers need sufficient premium to pay future claims. They also said the market is struggling because many carriers stopped selling the product, leaving in-force policies to bear the cost, and that overly restrictive caps could cause insurers to withdraw from the state. The discussion then shifted toward a compromise requiring carriers to notify policyholders before a rate increase is approved and allowing a 60-day comment period. Participants debated whether the notice should come from the carrier, how confidentiality rules would apply before approval, and what the department should do with public comments. The department said it already reviews filings carefully and that submitted rates are often adjusted before approval; lawmakers noted that prior commissioners had pushed back on increases in some cases, including a seven-year moratorium. No final vote was taken in the excerpt, and the chair repeatedly tried to move the subcommittee along to other bills.