Transcript Highlights:

• President, Senator, wouldn't it be accurate to say, however, that bonus depreciation, accelerated depreciation
• , However, that bonus depreciation, accelerated depreciation, has been available at the federal level
• President, bonus depreciation is allowing 100% depreciation in the first year as opposed to spreading
• or bonus schedules.
• Instead of 100% bonus depreciation in the very first year, this continues the practice of depreciation

Summary: The Senate convened with a quorum, opened with prayer and the Pledge, and agreed by unanimous consent to allow cameras on the floor and gallery, excuse several senators, and move to announcements and miscellaneous business. The chamber then adopted a ceremonial resolution honoring Lieutenant Governor Howie Morales for his years of service as Senate president and lieutenant governor, followed by extensive remarks from senators and Governor Michelle Lujan Grisham praising his leadership, fairness, education advocacy, and personal kindness. Morales briefly responded, thanking members, the governor, and his family, and noting he would offer fuller remarks on his final day. After messages from the House were read, the Senate adopted several committee reports. These included favorable action on Senate Memorial 31; House Judiciary Committee substitute for House Bill 70; House Bill 124, referred to Finance; Senate Joint Resolution 6, referred to Judiciary; Senate Joint Resolution 7; House Bills 103, 154, 165, and 285 as amended; and the Finance Committee’s amended report on House Appropriations and Finance Committee substitute for House Bills 2 and 3. The Judiciary Committee also reported Senate Bill 104 as duly enrolled and engrossed, and the body noted that SB 104 had been signed in open session. During personal privilege, Majority Floor Leader Peter Wirth discussed a State Ethics Commission advisory opinion on whether legislators who are attorneys may vote on medical malpractice cap legislation, arguing the issue is governed by Senate rules rather than the Governmental Conduct Act. He said he would continue to disclose his interests and vote under Rule 7-5, and also rejected a newspaper suggestion that he had a conflict in sponsoring a judgeship bill for the First Judicial District Court. The Senate then moved into third reading, beginning with Senate Rules Committee substitute for Senate Bill 264, which Senator Duhigg explained as an election-security measure responding to concerns about federal interference, intimidation, and emergency election disruptions; Senator Nava then spoke in support as a co-sponsor.

Transcript Highlights:

• AB 2377 accelerates California's schedule of tax deductions for the depreciation of new manufacturing
• equipment, allowing 50% first-year depreciation statewide and 100% first-year depreciation for equipment
• deductions, California generally requires businesses to depreciate equipment over many more years.
• California generally requires businesses to depreciate equipment over many more years.
• By allowing full first year depreciation within high need areas, By allowing full first year depreciation

Keywords: 988, house, all

Transcript Highlights:

• C and State Fire Marshal's Office Schedule B.
• The bill requires that the utilities have 300 percent capital spend versus the depreciation.
• So, it's comparing your capital expenditures annually to your depreciation.
• and others where their assets are depreciating more than they're building typically.
• Depreciation doesn't get counted until your next rate case, and it reduces your risk of assets, which

Bills: HB106, HB144, HB145, HB252, HB1732, HB2221, HB2467, HB2468, HB2517, HB2518, HB2963, HB3016, HB3689, HB3960, HB4386, HB4490, HB4751, HB5247, HJR175, HB2213, HB106, HB144, HB145, HB252

Keywords: HB 106, oil and gas, Railroad Commission of Texas, overhead electrical lines, electrical distribution system, power line maintenance, administrative penalty, Natural Resources Code, oil and gas lease, well operator, energy safety, utility infrastructure, regulatory compliance, cleanup fund, oil and gas regulation and cleanup fund, production safety, leasehold operations, electric utility, distribution poles, inspection

Transcript Highlights:

• depreciation deduction.
• I see that they're going to have 100% bonus depreciation.
• Do they accept that as a depreciate? Excuse me, can they get that depreciation?
• We're going to take the depreciation. Let me read it first.
• The depreciation and the deferential machinery and so forth is a short term depreciation.

Transcript Highlights:

• AB 2377 accelerates California's schedule of tax deductions for the depreciation of new manufacturing
• equipment, allowing 50% first-year depreciation statewide and 100% first-year depreciation for equipment
• deductions, California generally requires businesses to depreciate equipment over many more years.
• California generally requires businesses to depreciate equipment over many more years.
• By allowing full first-year depreciation within high-need areas, By allowing full first-year depreciation

Summary: The Assembly Revenue and Taxation Committee heard a series of bills focused on nonprofit tax status, housing, tribal land return, tax relief, economic development, journalism, reparations, manufacturing investment, and pawned property sales tax. The chair explained the committee’s suspense file process and noted that only AB 2270 and AB 2641 were eligible for immediate votes; other measures were referred to suspense after presentation. AB 2084 (Bauer-Kahan) would give the Franchise Tax Board discretion to delay or review revocation of state nonprofit tax-exempt status when federal status is revoked, and AB 2167 (Macedo) would clarify that tribally chartered corporations are eligible for existing tribal conservation land return tax exemptions. Both drew support from nonprofit and tribal representatives and were sent to suspense. AB 2270 (Arambula) sought to improve farmworker housing access to low-income housing tax credits by adjusting scoring criteria to reflect rural agricultural realities. Supporters said current amenity-based scoring disadvantages projects near farmland; the bill passed the committee 4-1 and was sent to Housing and Community Development. AB 2336 proposed excluding the first $25,000 of overtime pay and pension income from taxation; supporters framed it as affordability relief, while an opponent warned of major General Fund losses and a member raised the lack of an income cap. AB 2205 would reinstate the New Employment Credit to encourage hiring in high-unemployment areas, and AB 2222 would create refundable tax credits for local news organizations hiring journalists; both received strong support from business, labor, and media advocates and were referred to suspense. The committee also heard AB 2186, which would exclude future reparations payments from state income tax, with supporters arguing reparations should not be reduced by taxation; it was sent to suspense. AB 2377 would accelerate depreciation deductions for manufacturing equipment, with a larger benefit in high-need areas, and AB 2641 would extend the sales tax exemption for people repurchasing their own property from pawnbrokers, with the author agreeing to a five-year sunset amendment. AB 2641 passed 4-0 and was sent to Appropriations. After taking up the remaining roll calls for absent members, the committee adjourned.

Transcript Highlights:

• </c><01:25:39.440><c> coming</c> depreciation schedule that is now coming depreciation schedule that
• </c> depreciation schedule that the tab bill. depreciation schedule that the tab bill.
• </c><01:32:07.840><c> it</c> depreciation schedule back to what it depreciation schedule back to what
• So thank you for showing that depreciation schedule.
• So thank you for showing that depreciation schedule.

Bills: HF3694, HF3844, HF4006, HF3785, HF3849, HF4102, HF3441, HF3507, HF3562

Keywords: transportation, tow trucks, variable message signs, road safety, emergency service, optometrist, window glazing, motor vehicle regulations, medical prescriptions, transportation safety, infrastructure, construction, appropriation, state project, motorized bicycles, motorcycles, electric vehicles, transportation regulations, safety standards, dealer license

Transcript Highlights:

• And me not knowing what the other schedules look like in terms of when they are holding their referendums
• The more significant changes include accelerating depreciation of assets, allowing immediate expensing
• For depreciation of qualified production property and the incremental change to Section 179 property,
• The provisions in this bill that allowed depreciation over seven years may have some effect on that.
• I think just the bonus depreciation part retrospective on the one big beautiful bill would have impacted

Keywords: 999, senate, all

Transcript Highlights:

• schedule.
• <01:19:25.400><c> schedule.
• </c> depreciation schedule. depreciation schedule.
• :07.000><c> according</c> The average car depreciation according The average car depreciation according
• And so the combination of the higher rates and the slower depreciation schedule has shot tab prices through

Keywords: 1183, house

Transcript Highlights:

• We have three bills scheduled for public hearing.
• basic education and are provided in whole or part independently from a regular classroom setting or schedule
• And I think that would be an example, right, that we were looking at and likely having a depreciated
• If the bill passes as it's currently written, it is eligible to be granted or sold at the depreciated
• With the passage of this bill, devices can be sold at a depreciated value.

Bills: HB2142, HB2369, HB2432

Keywords: remote learning, hybrid learning, education reform, alternative education, student engagement, local food, public schools, nutrition, sustainability, agriculture, technology access, educational resources, surplus hardware, student support, 904, all

Summary: The House Education Committee held public hearings on three bills. HB 2142 would replace statutory references to “alternative learning experience” with “remote and hybrid learning.” Staff explained that ALE programs currently include online, remote, and site-based courses, and the bill would change terminology across multiple statutes. The prime sponsor and a retired principal testified that the change is intended to reduce stigma and more accurately describe programs like River Home Link, while committee members raised concerns that the new wording could unintentionally capture fully in-person programs. Testimony was largely supportive, and the public hearing closed with 52 in favor, 4 opposed, and 0 other. The committee then heard HB 2369, which would create the Washington Local Food for Schools program within OSPI to expand procurement and distribution of Washington-grown foods to schools using the USDA food distribution system. Staff and the sponsor said the bill would codify and expand existing farm-to-school efforts, reduce logistical barriers for districts and local producers, and support local agriculture. Testifiers included OSPI, food hubs, farm-to-school advocates, school district leaders, farmers, and students, all speaking in support and describing benefits such as fresher meals, stronger local economies, and educational connections to agriculture. The hearing closed with 455 in favor, 64 opposed, and 1 other. Finally, the committee heard HB 2432, which would allow school districts and ESDs to sell or grant surplus technology hardware, such as laptops and tablets, directly to public school students and recent graduates at depreciated cost, with priority for students with the greatest need. The sponsor said the bill would help students access devices for jobs, college, and postsecondary transitions, while staff noted existing law already addresses assistive devices for students with disabilities. Testimony from district technology and finance officials supported the bill as a practical way to extend the life of equipment and improve student access at home. The hearing closed with 57 in favor, 5 opposed, and 0 other. The chair then announced amendment deadlines for upcoming bills and adjourned the committee.

Transcript Highlights:

• The biggest one is bonus depreciation.
• It's another depreciation deduction for real property.
• But this allows you to take 30% of earnings before interest, taxes, depreciation, and amortization.
• There were bonus depreciation provisions in the Tax Cuts and Jobs Act that we decoupled from.
• So we decoupled from bonus depreciation, and Florida did a straight seven-year depreciation schedule.

Summary: The committee took up three tax-related bills and a staff presentation on the state revenue forecast and the federal One Big Beautiful Bill Act. SB 856, by Senator DeSigley, would require online real estate listing platforms to display estimated property taxes using state-prescribed methods rather than the current owner’s taxes. Supporters from county, city, and property appraiser groups said the bill would improve transparency for homebuyers, especially first-time buyers and those facing large tax increases after a homestead cap reset. Senators discussed ensuring the estimate appears directly on listing platforms. The bill was reported favorably. The committee then considered SB 110, by Senator Arrington, which clarifies that people holding 98-year-or-longer residential leases remain eligible for the homestead exemption even if the lease ends upon death, aligning such leases with life estates for estate-planning purposes. An amendment was adopted to clarify that leases terminating at the lessee’s death are valid under current law. The Florida Bar’s Real Property, Probate, and Trust Law Section supported the bill, and Senator Gates noted its importance for long-term leaseholders on barrier islands. The amended bill was reported favorably. SB 434, by Senator Leak, would prevent property tax assessments from increasing because of improvements made to harden homes against wind damage, such as stronger roof attachments, shutters, and secondary water barriers. The sponsor said homeowners should not be penalized for resilience upgrades, and the bill was also reported favorably. Staff director Mr. Khan then reviewed the latest general revenue forecast, noting collections were running about $230 million above prior estimates through November and that the new forecast added roughly $500 million in the first budget year, with a smaller increase in the second year. He said corporate income tax was the main weakness in the forecast, due to softer collections and uncertainty around tariffs, while other sources were generally stronger. In the second half of the presentation, he explained that the federal One Big Beautiful Bill Act would significantly affect Florida’s corporate income tax base if fully conformed to, with an estimated $3.5 billion general revenue impact in fiscal year 2026-27, largely because of retroactive provisions such as bonus depreciation and research expensing. Senators and the appropriations chair discussed the budget implications, including possible ways to limit the impact through decoupling or prospective treatment. No votes were taken on the forecast presentation, and the committee adjourned after members requested to be recorded as voting in favor on SB 856 and SB 110.

Transcript Highlights:

• The biggest one is bonus depreciation.
• It's another depreciation deduction for real property.
• But this allows you to take 30% of earnings before interest, taxes, depreciation, and amortization.
• There were bonus depreciation provisions in the Tax Cuts and Jobs Act that we decoupled from.
• So we decoupled from bonus depreciation, and Florida did a straight seven-year depreciation schedule.

Keywords: 999, senate, all

Summary: The committee met with a quorum present and took up three bills plus a staff presentation. Senate Bill 856, by Senator DeSigley, would require online real estate listing platforms to display estimated property taxes for residential properties using Department of Revenue formulas rather than the current owner’s taxes. Supporters from county, city, and property appraiser groups said the bill would improve transparency and help buyers understand likely tax bills, especially after Save Our Homes cap resets. The bill was reported favorably after a roll call vote. The committee then considered Senate Bill 110, by Senator Arrington, which clarifies that people holding 98-year-or-longer residential leases remain eligible for the homestead exemption even if the lease ends upon death. An amendment was adopted to clarify that leases terminating at the lessee’s death are valid under current law. The bill drew support from the Florida Bar’s Real Property, Probate, and Trust Law Section and from Vice Chair Gates, who said it would help resolve long-running disputes involving long-term leases on barrier islands. The amended bill was reported favorably. Senate Bill 434, by Senator Leak, would prevent increases in assessed value from being attributed to wind-hardening improvements such as roof reinforcements, shutters, and secondary water barriers. The sponsor said homeowners should not be penalized with higher taxes for making their homes more resilient. With no opposition or debate, the bill was reported favorably. The final agenda item was a staff presentation by Mr. Khan on the general revenue forecast and the federal One Big Beautiful Bill Act. He said the new forecast added about $500 million in the first budget year but reduced corporate income tax expectations by about $401 million, largely due to weaker collections and uncertainty around tariffs. He then explained that the federal bill could reduce Florida general revenue by about $3.5 billion in fiscal year 2026-27, mainly because of retroactive corporate tax provisions such as bonus depreciation, research expensing, and business interest deductions. Senators and the appropriations chair discussed the budget implications, including possible Medicaid cost increases and the need to adjust spending plans. The committee took no action on the forecast presentation and adjourned after members requested recorded favorable votes on SB 856 and SB 110.

Transcript Highlights:

• </c> first step will be to have I'll schedule first step will be to have I'll schedule public<00:38:39.319
• We have meetings scheduled now on the 13th and 14th, Monday and Tuesday of next week.
• I believe I don't have it scheduled yet, but most likely we'll meet the following week.
• </c><03:26:58.920><c> C</c> personal income tax return is Schedule C personal income tax return is Schedule
• One of the primary ones that almost all businesses see is adjustments for depreciation items.

Keywords: 928, house, all

Summary: The meeting was an introductory Ways and Means Committee orientation led by Chair John Janigian. Members went around the room introducing themselves, with several returning legislators and several freshmen describing their backgrounds in business, education, public service, finance, transportation, journalism, military service, and nonprofit work. Janigian explained his own legislative history and professional background, and other members, including Bill Bolton, Fred Doucette, Mary Ford, Jim Tierney, Scott Brier, Thomas Oppel, Mary Murphy, Representative Spar, Susan Elberger, Dennis Malloy, Jordan Ulery, and Julius Soti, briefly described their prior experience and reasons for serving on the committee. The chair then outlined the committee’s role. He said Ways and Means is responsible for revenue estimates that Finance will use to determine how much the state can spend over the next biennium, and that the committee would spend the next five to six weeks developing its best revenue estimate, due around February 15. He also explained that the committee hears from state agencies and departments about how taxes are created, collected, and performing against expectations, and that it reviews bills affecting state revenue, including tax increases, tax decreases, tax removals, and fee-related measures. Janigian noted that the committee had five bills at the time of the meeting and expected more to be referred. He explained that most would be first-committee bills, though some second-committee bills could come over if they involved taxes or fees after passing policy committees. He used marijuana-related legislation as an example of a bill that might first go to another committee and later reach Ways and Means if it had fiscal implications. No votes were taken; the meeting was informational, and members were told how to participate in hearings and follow-up questions during regular committee work.

Transcript Highlights:

• C, and State Fire Marshal's Office, Salary Schedule B.
• By adjusting the salary schedule of State Fire Marshal Office investigators, House Bill 2467 ensures
• They're behind in building out infrastructure, and it's causing these very high CAPEX-to-depreciation
• So it's comparing your capital expenditures annually to your depreciation.
• Depreciation doesn't get counted until your next rate case, and it reduces the value of your assets,

Bills: HB 106, HB144, HB145, HB252, HB1732, HB2221, HB2467, HB2468, HB2517, HB2518, HB2963, HB3016, HB3689, HB3960, HB4386, HB4490, HB4751, HB5247, HJR175, HB2213

Keywords: HB 106, oil and gas, Railroad Commission of Texas, overhead electrical lines, electrical distribution system, power line maintenance, administrative penalty, Natural Resources Code, oil and gas lease, well operator, energy safety, utility infrastructure, regulatory compliance, cleanup fund, oil and gas regulation and cleanup fund, production safety, leasehold operations, electric utility, distribution poles, inspection

Summary: The committee first handled pending business, including reconsidering a failed vote on SB 715 and then reporting several measures favorably. SB 1978 was reported from committee on a committee substitute, and a series of House bills — including HB 431, HB 1522, HB 1922, HB 3228, HB 3229, HB 3803, HB 3804, HB 3805, HB 3806, HB 4219, HB 4238, HB 434, HB 1584, and HB 4739 — were moved out of committee, most to the local and uncontested calendar. The votes on these items were overwhelmingly or unanimously in favor, with committee substitutes adopted where applicable. The committee then heard HB 2963, a right-to-repair bill for consumer electronics. The author said the bill would require manufacturers to provide parts, tools, and documentation on fair and reasonable terms while preserving trade secrets and excluding certain categories such as medical devices, motor vehicles covered by an MOU, critical infrastructure, and commercial-only transactions. Supporters from the Texas Public Policy Foundation and Environment Texas argued it would strengthen property rights, help small businesses, and reduce e-waste. Opponents, including representatives of SafeLight Auto Glass and LKQ, said they supported right-to-repair in principle but objected to the bill’s automotive MOU exemption and broader scope, warning it could create uncertainty and leave some manufacturers and repair shops outside the framework. The bill was left pending after testimony. Members also heard HB 2467 on salary parity for State Fire Marshal investigators, HB 252 on allowing some state agencies to pay certain employees twice monthly, HB 2468 on public improvement district notice and a buyer’s right to terminate, HB 4386 on annuity contract exchanges and surrender timelines, HB 4751 creating a Texas Quantum Initiative and related fund, and HJR 175 proposing a constitutional amendment protecting Texans’ ability to use mutually agreed-upon mediums of exchange, including cash, bullion, and digital currency. Testimony on HB 4751 was largely supportive but included questions about whether the state needs a new coordinating structure and funding mechanism for quantum research and commercialization. HJR 175 drew discussion about barter, taxes, and concerns over central bank digital currency. Each of these items was left pending after hearing testimony. The committee also heard HB 2221, which would update insurance anti-rebating laws to allow more wellness and value-added services in life and health insurance, with supporters saying it would encourage healthier behavior without requiring data monitoring. Finally, the committee took up a package of utility and wildfire-related bills from Chairman King’s portfolio: HB 106, requiring oil and gas operators to maintain certain overhead electrical lines; HB 144, requiring utilities to submit pole inspection and management plans to the PUC; and HB 145, requiring wildfire mitigation plans and allowing utilities to self-insure under certain conditions. Utility, co-op, and insurance representatives generally supported the safety and resiliency goals of HB 144, while asking for clarifications and less frequent reporting; HB 145 was introduced as a broader wildfire-risk and liability measure. These bills were also left pending after testimony.

Transcript Highlights:

• We want to make sure that students that are in need have access to this equipment at the depreciation
• We want to make sure that students that are in need have access to this equipment at the depreciated
• Over time, we know that computers and laptops, they depreciate in value, and if the value is zero, then
• will let you get to your busy schedule.
• We also have an executive session scheduled for Tuesday at 4 o'clock. I think it's at 4 o'clock.

Summary: The House Education Committee heard several bills focused on school district operations, student access, and special education. Substitute Senate Bill 6222 would allow school districts and educational service districts to sell or grant surplus technology hardware, such as laptops and tablets, directly to public school students, with priority for low-income students and documentation of the transfer. Testimony from the sponsor, district staff, and advocates emphasized helping students keep familiar devices, reducing waste, and extending the public investment in technology. The committee also heard Second Substitute Senate Bill 5969, which would better integrate IEP transition plans with the statewide online IEP system and the universal high school and beyond plan platform to reduce duplication; staff noted a fiscal note had been requested, and there were no public testifiers on the bill. The committee spent substantial time on Engrossed Substitute Senate Bill 6247, a school district financial management bill. The bill would require additional ESD oversight and support for districts showing signs of financial distress, create mandatory school director training on funding and finance, strengthen penalties for knowing violations of budget expenditure limits, and require disclosure authorizations before hiring certain budget or accounting personnel. Senator Dozier said the bill was prompted by district financial problems, declining enrollment, failed levies, and reserve fund declines. ESD, WSSDA, WASA, WOSBO, and OSPI testified in support overall, though some witnesses raised concerns about mandatory training, funding for implementation, and whether training should extend beyond school directors. Committee members asked about the bill’s scope, the undefined term “significantly,” the $750,000 reimbursement cap, and how it compared with House Bill 2593. The committee also heard Substitute Senate Bill 622, which would exempt school districts and ESDs from certain surplus-property notice requirements when selling or granting surplus technology hardware to students at depreciated cost or no cost to low-income students. Senator Hunt said the bill came from constituent concerns about unused laptops and tablets and would help students transition to work, college, or technical school. Zero Waste Washington and an Issaquah School District official supported the measure, citing environmental benefits and practical student access to technology. The committee closed public hearings on the bills, noted sign-in counts for pro and con positions, and announced amendment deadlines and upcoming executive sessions.

Transcript Highlights:

• So when we schedule our basin-hosted meetings, we do it per basin.
• We're also providing, for your awareness, a schedule of our basin-hosted meetings.
• Some systems adopt an escalated type of depreciation approach.
• So essentially measuring depreciation.
• So 1% would be depreciating over 100 years.

Keywords: 908, all

Transcript Highlights:

• The biggest one is bonus depreciation.
• It's another depreciation deduction for real property.
• But this allows you to take 30% of earnings before interest, taxes, depreciation, and amortization.
• There were bonus depreciation provisions in the Tax Cuts and Jobs Act that we decoupled from.
• So we decoupled from bonus depreciation, and Florida did a straight seven-year depreciation schedule.

Bills: S0110, S0434, S0856

Keywords: property assessment, wind damage, home improvements, real estate, tax exemption, Florida statutes, ad valorem taxes, property listings, tax estimation, disclosure, Florida, residential property

Summary: The committee heard and passed three bills before moving to a staff presentation on the state revenue forecast and the federal One Big Beautiful Bill Act. SB 856, by Senator DeSantis? [sic], would require online real estate listing platforms to display estimated property taxes for residential properties using prescribed methods and DOR-developed formulas rather than the current owner’s tax bill. Supporters from county, city, and property appraiser groups said the bill would improve transparency and help homebuyers avoid surprise tax and escrow increases. The bill was reported favorably after debate about making sure the estimate appears on realtor and platform sites for first-time buyers. SB 110, by Senator Arrington, was amended and then reported favorably. The bill clarifies that people holding 98-year-or-longer residential leases remain eligible for the homestead tax exemption even if the lease ends upon the tenant’s death, aligning those leaseholds with life estates for estate-planning purposes. The amendment, supported by the Florida Bar’s real property, probate and trust law section, clarified that lease provisions terminating at death are valid under current law. SB 434, by Senator Leak, was also reported favorably; it would prevent property tax assessments from reflecting increased just value attributable to wind-hardening improvements such as stronger roof attachments, shutters, and roof-to-wall reinforcements. The committee then received an update from staff director Azar Khan on the new general revenue forecast. He said collections had been running slightly above estimate overall, but the Revenue Estimating Conference reduced corporate income tax projections because of weaker recent collections and uncertainty around tariffs, while increasing some other revenue sources. Members then discussed the federal One Big Beautiful Bill Act, which staff said would significantly reduce Florida corporate income tax revenue, with a large first-year impact driven by retroactive provisions such as bonus depreciation, research expensing, and business interest deductions. Senators and the appropriations chair said the forecast and federal changes would affect budget planning, and the committee adjourned after noting the bills had been favorably reported and the meeting was complete.

Transcript Highlights:

• IT IS EASY TO FIND THE SCHEDULE AND SIGN UP AT THE NEW WEBSITE THAT WE WILL BE DISCUSSING TOWARDS THE
• IT HAS AGAIN, SCHEDULING A PRESENTATION OR COURSES ARE AVAILABLE FILING A COMPLAINT, ETC. ETC.
• IF YOU LOOK AT CITIZENS, CITIZEN HAS A SCHEDULE AS TO HOW LONG THE ROOF SHOULD LAST.
• PUT A DEPRECIATION SCHEDULE IN THE ROOF. YEAR 15 UNTIL THE NEXT 10 YEARS. IT DOES TWO THINGS.
• PUT A DEPRECIATION SCHEDULE ON IT. IF IT'S AN ANNUAL INSPECTION OR ETC.

Keywords: 999, senate, all

Transcript Highlights:

• So when we schedule our basin-hosted meetings, we do it per basin.
• We're also providing, for your awareness, a schedule of our basin-hosted meetings.
• Some systems adopt an escalated type of depreciation approach.
• So essentially measuring depreciation.
• So 1% would be depreciating over 100 years.

Summary: The Water Topics Overview Committee met to review several interim studies and receive updates from the Department of Water Resources. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and welcomed Representative Hansen to the committee. Staff then reported that the watershed management study and the stormwater/wastewater study had both satisfied the presentation requirements in their study directives, with no further required testimony unless members wanted additional information. The department’s main presentation focused on major water projects and agency operations. Reese Haas and staff updated members on the NAWS project, the Southwest Pipeline Project, Devils Lake outlet operations, low-head dam safety work, floodplain management repository implementation, data center water use, and the 2027 Water Development Plan. Members asked detailed questions about NAWS funding sources, remaining project costs, capacity concerns for All Seasons and other users, and whether current construction is being designed for future demand. The department said NAWS remains on track for substantial completion by October, that remaining NAWS funding will come from a mix of federal, state, and local sources, and that current construction is designed for ultimate capacity while some future components will be adjusted for increased demand. A large portion of the meeting was devoted to the department’s cash management, Resources Trust Fund revenues, carryover balances, and the State Water Commission’s cost-share program. The department reported $340.6 million in carryover remaining, explained that much of it is already obligated to long-term projects, and noted that oil price forecasts and stripper-well exemptions will affect future revenues. Members raised concerns about large carryovers, affordability for local sponsors, and whether the state should continue obligating money multiple bienniums ahead. The department said it is working with the commission on a revised prioritization framework, including high/moderate/low project categories and a two-tier pre-construction/construction approach, to better manage obligations and affordability. The committee also reviewed Deloitte’s finalized studies on regional governance/finance and cost-share policy. Deloitte presented options for Southwest, NAWS, and Red River governance, with stakeholders generally favoring keeping NAWS largely as is, using the current Southwest model with improvements, and pursuing a more structured governance option for Red River. On cost share, the department said Deloitte’s recommended package would cover projected needs through the 2030s, but would require policy changes such as lower percentages for some project types, a 25% replacement-project rate with a cap, and possible bonding or delayed reimbursement strategies. No votes were taken on these policy questions, and the chair indicated the committee would continue the discussion at future basin meetings and the September Water Topics meeting.

Transcript Highlights:

• We're also providing, for your awareness, a schedule of our basin-hosted meetings.
• Some systems adopt an escalated type of depreciation approach.
• So essentially measuring depreciation.
• So 1 percent would be depreciating over 100 years.
• Depreciation, Revenue. In this case, they're showing net operating of $10,000.

Summary: The Water Topics Overview Committee met to receive interim status updates on several water-related studies and Department of Water Resources projects. The committee approved the March 26, 2026 minutes, observed a moment of silence for the late Representative Conmy, and then heard updates on the watershed management study and the stormwater/wastewater study. Staff reported that the committee had already received the testimony contemplated in the study plans, including input from state agencies, local governments, and out-of-state entities, and that any further action would be at the committee’s discretion. The Department of Water Resources then provided project and budget updates on NAWS and the Southwest Pipeline Project. Reese reported NAWS is expected to serve about 81,000 users, with a total projected cost of about $571 million and about $96 million remaining, while the Southwest Pipeline Project is estimated at $1.06 billion total with about $409 million remaining. Members asked about funding sources, capacity needs, and whether current and future construction is being designed for increased demand; department staff said current work is designed for ultimate capacity, but some future components may need redesign based on new requests. The committee also discussed local cost shares, Minot’s role in NAWS funding, and whether the system is adequate for peak demand. A major portion of the meeting focused on the department’s cash management, carryover, and long-term water funding outlook. The department said Resources Trust Fund revenues are tied to oil extraction taxes and are affected by stripper well exemptions and future oil price declines. Members expressed concern about large carryover balances and whether the state is obligating more money than can realistically be spent in a biennium. The department reported about $340.6 million in remaining carryover and said it is trying to reduce that through a two-tier pre-construction/construction process and closer project vetting. The department also summarized the Deloitte studies on regional governance and finance and on cost-share policy. Stakeholders generally favored keeping the current governance structures for NAWS and Southwest with improvements, while Red River stakeholders leaned toward a different option; the department said it will bring an implementation plan back in September. On cost share, Deloitte’s recommendations would reduce some percentages, prioritize projects differently, and use other measures to close a projected long-term funding gap. Members debated affordability, local burden, deferred maintenance, and whether statutory changes may be needed to allow the commission more flexibility in prioritizing and funding projects. No formal votes or final actions were taken beyond approving the minutes and receiving the updates.

Transcript Highlights:

• 00:19:14.640><c> to</c><00:19:14.960><c> account</c><00:19:15.280><c> for</c><00:19:15.520><c> depreciation
• We do look at the amount of depreciation they have.
• Um, but we do not include depreciation in the calculation of their cash flow. the their financial position
• </c> analysis of their depreciation? analysis of their depreciation?
• </c><00:20:47.840><c> in</c><00:20:48.159><c> the</c><00:20:48.320><c> system</c> accommodate depreciation

Keywords: November 20, 2025 00:12 Call to Order and Roll Call 00:58 Information Items 06:50 Finance and Administration Cabinet 09:10 KY Infrastructure Authority 21:20 Office of Financial Management 29:14 Meeting Recessed 44:58 Reconvened 45:07 Approval of Minutes 46:35 Next Meeting Date 47:05 Adjournment, 958, all

Summary: The committee met without a quorum for much of the meeting, so several agenda items were initially heard only for information. Early updates included six informational reports, such as an Auditor of Public Accounts compliance examination with no findings, university equipment and allocation reports, school district bond issuances, Western Kentucky University’s planned public-private partnership housing redevelopment, and quarterly Kentucky Communications Network Authority reports. Members then questioned WKU officials about the P3 housing project, including the number of RFQ responses, property tax responsibility, ownership of the student life foundation, and the status of repairs to residence halls. WKU said the foundation has owned the property since 2000, one hall would be razed or demolished at the end of the academic year, and repairs to the other two were expected to be completed by fall 2027. The committee also heard a Department of Fish and Wildlife Resources acquisition project for Mount River Farms in Wayne County and a Department of Corrections roof replacement project at Luther Luckett Correctional Complex, but no votes were taken until a quorum was later established. The Kentucky Infrastructure Authority then presented six loans and four grant reallocations, including loan increases for Adair County Water District and the City of Harlan, new loans for Litchfield, Louisa, Southeastern Water Association, and Flatwoods, and grant reallocations under the Cleaner Water Program. Members asked about Harlan’s 30-year term and special condition requiring a revenue increase; KIA explained the longer term is reserved for disadvantaged communities and that the condition was meant to reinforce standard debt coverage requirements, while depreciation is reviewed but not included in cash-flow calculations. After a recess, Senator Thomas arrived and a quorum was reached. The committee approved the prior minutes and then took a consolidated vote on the action items, which passed. The final items included a Kentucky Economic Development Authority revenue bond refunding for CommonSpirit Health, several Kentucky Housing Corporation conduit and single-family bond issuances, a Western Kentucky University bond issuance, and SFCC debt issues. Members discussed the housing transactions, noting they are developer-financed and not subject to a traditional bidding process, and expressed concern about whether the process could produce more units for the same amount of money. The meeting adjourned after all information items were approved and the next meeting date was announced.