Transcript Highlights:

• Yeah, yeah, I can, and I'll be upfront in what's published out there: the WAC, or wholesale acquisition
• So that's kind of the wholesale acquisition cost.
• But again, that's on a wholesale-to-wholesale acquisition, right? That doesn't account for...
• But again, that's on a wholesale to wholesale acquisition, right? That doesn't account for...

Summary: The committee first approved the minutes and then heard a detailed annual presentation from Dr. Thomas Arnold, chair of the Maternal Mortality Review Committee, on maternal mortality trends and review findings. He explained the committee’s structure, the de-identified review process, and the distinction between pregnancy-associated and pregnancy-related deaths. He said national maternal mortality has declined from its 2021 peak, but mental health conditions, substance use, overdose, suicide, cardiovascular disease, hemorrhage, infection, and embolism remain major causes. He emphasized that many deaths are preventable, with especially high rates among non-Hispanic Black women and in the American Indian/Alaska Native population, and noted that a large share of deaths occur after 42 days postpartum. Committee members asked about suicide, domestic abuse, pregnancy testing in unexplained deaths, and the role of home births and midwife training. Dr. Arnold said the committee is adding a caseworker, exploring post-mortem pregnancy testing in suspicious cases, and working with coroners and forensic officials; he also said home births and untrained midwifery pose safety concerns and that better public education and facility-based care are important. The committee then heard from State Fire Marshal Dr. Matt Clark on cigarette ignition propensity standards and fire prevention. He recommended updating North Dakota’s cigarette ignition legislation to the current national standard and also considering legislation requiring fast-breakaway oxygen tubing, citing fatal fires involving smoking around home oxygen. He explained that his office verifies manufacturer testing and maintains certification for cigarettes sold in the state, but does not itself conduct the testing. Members asked about implementation, cost, and whether the standards apply in tribal communities; Clark said he would follow up with cost information and additional details, and that he had not seen evidence of a major issue on tribal lands but would look further. Christine Greff of the Department of Health and Human Services presented the North Dakota Stroke System of Care report. She described the statewide network of two comprehensive stroke centers, four primary stroke centers, and 30 acute stroke-ready hospitals, along with the stroke registry and quality-improvement efforts. She reported that most strokes are ischemic, that the median stroke patient age is 71.5, and that common risk factors include hypertension, dyslipidemia, obesity, and diabetes. She highlighted improvements in door-to-CT, thrombolytic treatment times, dysphagia screening, EMS pre-notification, and interfacility transfer performance, and said new priorities include hemorrhagic stroke quality measures and standardized EMS stroke screening tools. Members asked about the VA hospital’s participation, and Greff said she would pursue outreach. After a break, the committee heard testimony from Taha Khan of Vertex Pharmaceuticals as part of the prior authorization study, focused on non-opioid pain treatment. He argued that prior authorization can delay access to acute pain treatment and may push patients toward opioids, especially in the critical 24- to 72-hour post-discharge window. He cited data showing that even short opioid exposure can increase the risk of long-term use and said prior authorization is often a barrier for physicians and patients. Khan recommended open access with a quantity limit rather than prior authorization, suggesting a 14-day limit supported by the product’s data and an episode-of-care approach. Members asked about dental use, payer discussions, and cost; he said the product’s wholesale acquisition cost is about $16.10 per tablet, with patient assistance available, and that he would follow up on payer and comparison-cost questions.

Transcript Highlights:

• He noted that the ask will have multiple components, including system acquisition, an implementation
• He noted that the ask will have multiple components, including system acquisition, an implementation
• He noted that the ask will have multiple components, including system acquisition, an implementation
• He noted that the ask will have multiple components, including system acquisition, an implementation

Summary: The Information Technology Committee approved the March 26 minutes and received a series of reports from NDIT on major IT projects, the annual report, mainframe modernization, and cybersecurity services. The project portfolio was reported at 116 major projects with a baseline cost of $546 million, overall under budget but modestly behind schedule. Several projects that had been in variance status last quarter were said to have closed, including HHS bed management, vital records modernization, and DOT roadway capital planning. New startup reports were mostly HHS efforts tied to refugee data management, technical debt cleanup, and legacy application decommissioning, while closeouts included HHS, OMB, DPI, and DOT projects with mixed budget and schedule results. In the annual report discussion, NDIT described its service-fund financials, peer-state rate comparisons, records management reporting, and customer satisfaction efforts. Members asked about how revenues and grants flow through the service fund, how NDIT charges agencies for services, and whether customer satisfaction or CSAT scores are tracked and could be reported more regularly. NDIT said it does track service-team CSAT and survey data, and committee members encouraged more regular reporting of those metrics. The committee also discussed application portfolio management, statewide IT planning, and whether agencies should slow new system replacements while the state pursues an ERP system. The mainframe update focused on the state’s ongoing effort to retire legacy systems by about 2030. NDIT and HHS said the work is being managed as a tech-debt program, but progress is slowed by data cleanup, integration complexity, staff retirements, vendor capacity, and federal requirements. Members asked whether there is a coordinated commitment and whether additional vendor support or consultants are needed; NDIT said it is working jointly with HHS and is seeking an RFP to help accelerate modernization. The cybersecurity presentation then shifted to statewide maturity assessments and services. NDIT said it provides endpoint protection, vulnerability scanning, security awareness training, threat briefings, and penetration testing, and that assessments are based on CIS controls. Members raised concerns about low participation in the self-assessment process, the lack of mandatory reporting or audit authority, and whether insurance incentives through Enderf or possible State Auditor involvement could improve compliance. No formal votes were taken beyond approval of the minutes.

Transcript Highlights:

• Rural Electric Cooperatives headquarters in Somerset, rendering its supervisory control and data acquisition
• rendering its supervisory control and rendering its supervisory control and data<01:49:28.560><c> acquisition
• </c><01:49:29.280><c> system</c><01:49:29.679><c> and</c><01:49:30.320><c> outage</c> data acquisition
• system and outage data acquisition system and outage management<01:49:31.440><c> systems</c><01:49:31.920

Keywords: 958, all

Transcript Highlights:

• increasing due to increased transfers from OTS and the human services districts, and then the acquisitions
• Interagency transfers are increasing mainly due to adjustments to the personnel services and acquisitions
• Interagency transfers are increasing mainly due to adjustments to the personnel services and acquisitions
• around the country, we've seen, especially in the private equity community, a lot of roll-ups and acquisitions

Summary: The committee first heard a budget presentation on LSU Health Care Services Division and Lallie Kemp Medical Center. Staff reviewed HCSD’s roughly $74.7 million budget, much of it tied to legacy obligations for former LSU hospital systems and support for Lallie Kemp. Committee members asked about prisoner care, risk management costs, declining admissions and emergency visits, and the hospital’s 340B drug program. Lallie Kemp officials explained that prisoner care serves multiple state and local facilities, that lower admissions largely reflect more patients being placed in observation status, and that the in-house 340B program provides major savings to patients and the prison system. Members also asked about care for unhoused patients and the hospital’s discharge practices, and the hospital said social services works to find placement when possible. The committee then moved to the Louisiana Department of Health budget, which was presented as just under $23.5 billion, with Medicaid making up more than 90 percent of the total. The presentation covered the Office of the Secretary, Office of Public Health, Office of Behavioral Health, Office for Citizens with Developmental Disabilities, and Medicaid. Major items included the new Rural Health Transformation Program, the transfer of several functions from DCFS to LDH under the One Door initiative, changes to SNAP administration, and large Medicaid adjustments driven by enrollment, utilization, and federal policy changes. Testimony also highlighted the statewide crisis hub and 988, the commodity food program for seniors, women’s health and maternal outcomes, and the department’s efforts to modernize technology and reorganize services. Members questioned LDH officials on a wide range of budget and policy issues, including the rural health grant, crisis services, Medicaid redeterminations, provider taxes, physician and hospital supplemental payments, nursing home rates, HCBS funding, and the impact of the federal One Big Beautiful Bill Act. LDH said the rural health grant would support workforce, technology, and care-delivery improvements; that the crisis hub and mobile crisis units are being expanded to improve access and reduce emergency room use; and that the department is working to keep the SNAP error rate below 6 percent to avoid a projected state cost increase. Officials also said they expect to return next year with additional funding requests for HCBS and other programs, while emphasizing that current budget changes are largely meant to realign funding with actual expenditures and new federal requirements. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• I've got concerns about the land acquisitions that are going to be done, but, you know, when Minnesotans
• Um I've got concerns about<00:21:09.680><c> the</c><00:21:09.800><c> land</c><00:21:10.720><c> acquisitions
• </c><00:21:11.400><c> that</c><00:21:11.560><c> are</c> about the land acquisitions that are about the
• land acquisitions that are going<00:21:11.760><c> to</c><00:21:11.840><c> be</c><00:21:11.960><c> done

Keywords: 1187, senate, all

Transcript Highlights:

• for routine cases in places that don't look or feel like hospitals but happen to be owned through acquisition
• What this means is basically when they make an acquisition in the middle of a contract, they've got to
• This is not acquisition-driven wealth-seeking. It’s actually the opposite.
• This is not acquisition-driven wealth-seeking. It’s actually the opposite.

Bills: SB500, SB719, SB912, SB1232, SB1467, SB1777, SB1864, SB2023, SB2119, SB2458

Keywords: SB 500, Texas adoption law, Family Code, DFPS, Department of Family and Protective Services, child-placing agency, prospective adoptive parents, adoption records, confidential information, nondisclosure agreement, child history report, health history, social history, educational history, genetic history, termination of parental rights, permanency plan, single source continuum contractor, privacy, redaction

Summary: The committee first took up several pending bills and reported them favorably: SB 968, SB 636 as substituted, SB 1137, and SB 1138 as substituted. Each was advanced by roll call vote, and the committee also recommended the approved bills for the local and uncontested calendar. The chair then moved to the posted agenda and heard SB 719, a mental health bed-capacity study bill by Senator Eckhart, with a committee substitute that refined the data collection to distinguish state and non-state beds, child and adult beds, include two point-in-time counts, and capture jail diversion data. Testimony on SB 719 was largely supportive from Integral Care, NAMI Texas, and the Children’s Hospital Association of Texas, all of whom said Texas needs better data on inpatient psychiatric capacity, workforce needs, and future demand. Several witnesses described long waits for beds, especially for forensic restoration, and argued the study would help target future investments. Senator Perry and others noted the state has already made major investments in new beds and urged the bill to account for beds already coming online; the committee ultimately withdrew the substitute and left SB 719 pending after public testimony closed. The committee then heard SB 1864, which would allow small egg producers to sell ungraded eggs more broadly, including to restaurants and retailers, with the substitute increasing the weekly sales threshold and addressing sanitation and labeling. Supporters said grading is about size, not safety, and that the bill would help small farms reach new markets; opponents from the Texas Poultry Federation argued grading and candling help identify cracks and defects that can affect safety and quality. The committee adopted the substitute and left the bill pending. It also heard SB 1467, requiring DSHS to share death record information with hospitals for record accuracy and quality review, and SB 912, which would modernize continuing education tracking for health licensing agencies; both bills drew supportive testimony and were left pending. Finally, the committee heard SB 2023, which would create an HHSC grant program to help counties pay for indigent burial costs, with county representatives testifying in support.

Transcript Highlights:

• It impacts kind of their acquisition structure somewhere else, but we were given assurances that it would
• uh kind does it impact uh it impacts as uh kind of<00:18:31.240><c> their</c><00:18:31.440><c> acquisitional
• </c><00:18:32.120><c> structure</c><00:18:32.960><c> uh</c> of their acquisitional structure uh of their
• acquisitional structure uh somewhere<00:18:33.360><c> else</c><00:18:33.720><c> but</c><00:18:34.240

Keywords: 958, all

Summary: The committee heard an overview from Department of Juvenile Justice Commissioner Randy White on the state’s juvenile detention network and several facility projects. He identified the currently operating detention centers as Boyd County for females, Breathitt County for low-risk males, Fayette County for high-risk males, Adair County for high-risk youth from Jefferson and surrounding counties, Warren County for high-risk males, and McCracken County for low-risk males. Members asked about capacity and staffing; White said Boyd County houses 33 and is usually near full, Breathitt County is about half full, Fayette County runs about 80-90% full, Campbell County’s operational limit is about 25 due to staffing, Adair County can hold 60 and has hit capacity several times this year, Warren County holds 43 and usually runs near capacity, and McCracken County holds 43 and is not currently full. He said staffing is generally harder in higher-risk facilities and in metropolitan areas because of wages and housing costs. White then updated the committee on the Louisville Detention Center downtown renovation and the Lyon facility project. For the Louisville downtown facility, he said schematic design and design development are complete, construction documents are expected by late February or early March, bids are anticipated in April, and completion is projected for March 2027. He explained the delay is due to extensive renovation work needed to bring the building up to current building, life-safety, ACA, and PREA standards, including security, mechanical, electrical, plumbing, food service, and roof work. The project is designed for 64 beds for high-risk Jefferson County boys, with the facility currently vacant and those youth being housed in Adair County and Campbell County. For the Lyon project, he said the contract was issued November 21, 2024, demolition is underway, completion is expected June 14, 2026, and the facility will have 34 beds in four pods for low-risk offenders; he said the project appears to be on time and on budget within the $4.5 million authorization. The committee also discussed the medical services contract. DJJ officials said they are reviewing whether to continue with the current state contract provider, Wellpath, or pursue an RFP, while retaining current merit staff and continuing oversight through four nurse program administrators. They said DJJ uses a state master agreement to staff nurses, APRNs, and the chief medical officer, and that the current contract is about $20 million per year. Members asked about Wellpath’s bankruptcy filing; officials said they were aware of it, asked questions, and were told it would not affect Kentucky service delivery or contracting, though they could not recall the bankruptcy type and offered to provide more detail later. They also said DJJ is working with the Cabinet for Health and Family Services to become a Medicaid provider, and any future contractual partner will need to be a Medicaid provider. Finally, White described the proposed high-acuity juvenile mental health treatment facility. He said DJJ must accept court-ordered youth even when they have severe mental illness, but detention centers are not equipped to treat those youth and private psychiatric hospitals often refuse them or discharge them early. He argued that a dedicated secure treatment facility is needed for a small number of highly violent, high-need youth who require intensive psychiatric care and are disruptive in detention. The facility would provide behavioral and psychiatric treatment, reduce delays caused by lack of beds or outside placements, and serve youth determined by clinical assessment to need a secure treatment environment. No votes were taken during the discussion.

Transcript Highlights:

• , we could buy down this new acquisition, we could buy down that<03:25:15.640><c> old</c><03:25:15.840
• Mergers and acquisitions continue to play a big role in the oil and gas industry today.
• </c><03:39:44.400><c> of</c><03:39:44.480><c> another</c> the potential of acquisition of another the
• potential of acquisition of another company. company. company.
• :47.560><c> to</c> Mergers and acquisitions continue to Mergers and acquisitions continue to play<03:

Keywords: 916, all

Transcript Highlights:

• building departments and offered free to the public in a way to help build an increase in our housing stock
• As Senator Taves mentioned, we do have Housing stock for local workers.
• addition of that ADU, it just increases their revenue but doesn't help our local workforce housing stock

Keywords: 989, all

Summary: Senate Commerce met with a quorum and first approved the February 10, 2026 minutes. The committee then took up three housing bills from Sen. Taves. SB 1277 would require statewide allowance of accessory dwelling units and limit local restrictions; supporters said it would expand attainable housing and help families, while opponents raised concerns about infrastructure, setbacks, height limits, parking, HOA/covenant issues, and possible lawsuits. After testimony from city officials, housing advocates, and a mayor, Sen. Taves said he was willing to amend the bill to remove the 45-foot height provision, HOA requirements, and private cause of action. The committee voted 5-4 to hold SB 1277 in committee. SB 1279 would promote smaller starter-home subdivisions by limiting minimum lot sizes, allowing higher density, and reducing certain fees and regulatory barriers. Supporters argued it would help entry-level buyers and give builders more flexibility; opponents said it was too broad, could create dense development patterns, and still needed more stakeholder input. The committee first rejected a motion to send it to the amending order and then voted 5-4 to hold SB 1279 in committee. SB 1280 would allow duplexes and twin homes in single-family residential areas. Testimony focused on county infrastructure limits, septic and water concerns, and the need to avoid retroactive impacts on existing covenants. After discussion, the committee again voted 5-4 to hold the bill in committee. The committee then heard SB 1276, which removes the sunset on the PERSI return-to-work program for retired teachers and other retirees. Sen. Zito and PERSI Director Mike Hampton said the program helps fill hard-to-staff positions and does not create additional service-credit liabilities. The committee voted to send SB 1276 to the floor with a do-pass recommendation. At the end of the meeting, the committee also received an informational presentation on PERSI cost-of-living adjustments from retired public employees and former Deputy Attorney General David High, who argued PERSI could support a higher assumed rate of return and better COLAs; no action was taken on that presentation before adjournment.

Transcript Highlights:

• I'm bringing in Under state law, stocking can be charged by a prosecutor as a gross misdemeanor or in
• Under Senate Bill 6249, all individuals who are convicted of stocking would be required to be supervised
• Most, if we all have owned stocks and mutual funds, three to five percent profit per year.

Bills: SB5979, SB6308, SB6319

Keywords: opioids, substance abuse, dependent children, child welfare, caregiver substance use, court orders, shelter care, judicial discretion, family law, early childhood, family services, diversion programs, court-ordered assessments, 904, all

Transcript Highlights:

• So they would not let those buses or that rolling stock deteriorate.
• The school board had to surplus some equipment, and some of the equipment included a stock trailer.
• The school board had a discussion about this to surplus the stock trailer.

Bills: SB6078, SB6089, SB5859, SB5861, SB6065, SB5956, SB5901

Keywords: SB 6078, child care, childcare, daycare, licensed child care provider, Department of Children, Youth, and Families, DCYF, prelicensing, licensing support, resource guide, child care center, family home child care, family home provider, outdoor nature-based child care, school-age child care, early learning, provider application, local permit notice, city permit, county permit

Transcript Highlights:

• This lack of protection threatens existing affordable housing stock that SB 79 seeks to increase.
• you to the author for identifying this at the end of this session, because this part of our housing stock
• This part of our housing stock is almost always overlooked. It's the most fragile, let's be honest.

Keywords: 987, senate, all

Summary: The Senate Committee on Local Government heard six bills. SB 828 by Senator Cabaldon would require fireworks license applicants to prove they have local storage and land-use permits and would require state-local notification when licenses are denied or revoked, prompted by the Asparto fireworks explosion and concerns about illegal fireworks storage. Fire officials, counties, and fireworks industry representatives spoke in support or with limited concerns; there was no opposition, and the bill passed 7-0 to Appropriations. SB 799 by Senator Allen would revise the South Bay Regional Housing Trust’s governing rules, including more flexibility on board leadership and allowing non-elected alternates in some cases. Supporters said the changes would help the new housing trust function more effectively; some members raised accountability concerns about non-elected alternates handling public funds. The bill passed 7-0 to the Senate Floor. SB 762 by Senator Arreguín would authorize Hercules to ask voters about a local sales tax increase of up to 1% to fund services and infrastructure. Supporters said the city needs more revenue, while one senator cautioned about how such measures are presented to voters; the bill passed 4-2 to the Senate Floor. SB 722 by Senator Wahab would add protections for mobile home residents from displacement tied to SB 79-related development, with strong support from residents, housing advocates, and local governments and no opposition. The committee approved it 7-0 to Appropriations. SB 222 by Senator Wiener would streamline permitting for heat pump water heaters and HVAC systems, with supporters arguing it would reduce costs, speed adoption, and help meet climate goals, while cities, counties, and HOA groups objected to state preemption, fee caps, liability, and local control concerns. It passed 4-1 to Appropriations. SB 677, also by Senator Wiener, made technical cleanup changes to SB 79’s transit-oriented development rules; housing groups supported it, but local government and transit agencies warned the definition changes could expand SB 79’s reach and complicate mapping and implementation. The bill passed 5-2 to Appropriations. At the end of the hearing, the chair announced the committee had completed its agenda and adjourned.

Transcript Highlights:

• that now defines the West. 80% of Lake County has since burned, and we've lost 5.5% of our housing stock
• Other counties can follow this framework, leveraging federal and state grants to harden older housing stock
• We have a very old housing stock, so most of the houses were built before 2008 when they had the higher

Keywords: homeowners insurance, natural disasters, insurance costs, climate change, disaster preparedness, federal policies, bipartisan solutions

Summary: The meeting reviewed critical issues surrounding the rising costs and accessibility of homeowners insurance across the United States, particularly in light of increasing natural disasters linked to climate change. Members engaged in extensive discussions regarding the implications for families and the economy, citing significant increases in premiums and decreasing availability of policies in high-risk areas. Supervisor Peysko highlighted the direct impact of federal policies on local communities, emphasizing the growing burden on homeowners as they face skyrocketing insurance costs amidst a backdrop of environmental challenges and regulatory constraints. The committee expressed a unified call to action for bipartisan solutions, focusing on improving building codes and enhancing disaster preparedness measures.

Transcript Highlights:

• Unfortunately, California's current law makes it unclear whether schools can stock these new delivery
• introduced this measure, AB 228, which would clarify California's law to ensure that schools are able to stock
• an incredibly important, future-focused bill, and I believe it's crucial that we allow schools to stock

Keywords: 988, house, all

Transcript Highlights:

• help keep USDA </font> <font color="aaaaaa">funded affordable housing </font> <font color="aaaaaa">stock
• The bill </font> <font color="aaaaaa">funded affordable housing </font> <font color="aaaaaa">stock of
• The bill </font> <font color="aaaaaa">makes a significant investment </font> <font color="aaaaaa">stock

Keywords: 999, senate, all

Transcript Highlights:

• start looking for jobs at other companies that are still where they could keep their residence, the stock
• start looking for jobs at other companies that are still where they could keep their residence, the stock
• </c> the stock market will look at that. the stock market will look at that.
• 02.440><c> the</c> they could uh keep their residence, the they could uh keep their residence, the stock
• market will look at that and say stock market will look at that and say "Your<00:33:04.600><c> company

Keywords: 1187, senate, all

Transcript Highlights:

• He took the bank public on the New York Stock Exchange in 2016.
• on the New York Stock Exchange in 2016.<00:12:08.320><c> Today,</c><00:12:08.720><c> First</c><00:12
• Stock market has taken a hit. shrunk.
• , that they should buy buy Tesla stock, that they should buy Tesla<08:59:52.398><c> stock.
• Uh, again, violating his Tesla stock.

Keywords: U.S. House of Representatives Floor Proceedings on Wednesday, May 7, 2025, 1012, house, all

Transcript Highlights:

• to see what the volumes of collaborative agreements they could sign and they get sent off and get stocked
• And get stocked someplace.

Summary: The General Laws Committee met without a quorum and heard House Bill 2749, sponsored by Rep. Davidson. The bill would allow hospital systems, rather than only individual physicians, to sign and maintain collaborative practice agreements for physician assistants in hospital settings. The sponsor said the measure is intended to reduce administrative burden and paperwork without changing scope of practice, supervision requirements, or liability, and noted it has a $0 fiscal note. Committee members asked about how the bill would work in practice, including what happens when physicians leave a hospital system, whether the collaborating physician relationship would still be meaningful, and whether the bill could affect liability or accountability. Supporters, including a long-time PA with BJC and the Missouri Hospital Association, said large hospital systems already use credentialing and chart-review processes, and that centralizing the paperwork would help hospitals, physicians, and the Board of Healing Arts while freeing physician time for patient care. They emphasized that the bill would not change clinical oversight or reimbursement arrangements. Opposition came from the Missouri State Medical Association and the Missouri Association of Osteopathic Physicians and Surgeons. Their witness argued that collaborative practice agreements are personal physician agreements, not mere paperwork, and warned that shifting them to a hospital-level document could weaken physician accountability and potentially increase liability. The hearing concluded after testimony, with no vote taken.

Transcript Highlights:

• And we know the stock market could, Precariously at what the shifts and changes would could happen.
• And we know the stock market could dramatically drop, especially as we're looking at global war and so

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for about two million members and the importance of pension funding to the state budget, especially amid economic uncertainty, market volatility, federal policy changes, and concerns about future fiscal pressure. Scott Tarando, CalPERS chief actuary and a CAP member, presented on the statutory disclosure requirements in Government Code Section 2029. He explained that CalPERS’ current discount rate is 6.8%, that lower investment returns increase contribution rates and unfunded liabilities, and that the plan uses a 20-year amortization period for new unfunded liabilities. He said CAP has recommended a reasonable amortization range of 15 to 20 years and that CalPERS’ longer smoothing period helps reduce volatility in employer contributions. He also explained the timing of actuarial data: the valuation used for current contribution rates is based on the prior fiscal year’s audited data, with the next year’s rates developed later in the annual cycle. Members asked about the relationship between average employee service life and amortization, whether current market and AI-related changes could justify using more current data, whether pension benefits change when valuations are updated, and how CalPERS’ funded status has changed over time. Tarando said retiree benefits do not change based on annual valuations, that the system’s funded status has improved from roughly the mid-60% range about a decade ago to around 80% or higher more recently, and that CalPERS is monitoring possible long-term workforce effects from AI but sees no immediate need to change assumptions. Michael Cohen of CalPERS said the system complies with information requests and is independently audited annually, but there has been no formal federal review released. In public comment, a representative of county governments praised the improved funded status and PEPRA reforms. The hearing concluded with remarks reaffirming fiduciary responsibility and the importance of protecting CalPERS beneficiaries.

Transcript Highlights:

• And we know the stock market could, Precariously at what the shifts and changes could happen.
• And we know the stock market could dramatically drop, especially as we're looking at global war and so

Summary: The Assembly Committee on Public Employment and Retirement and the Senate Committee on Labor, Public Employment, and Retirement held a joint hearing required by law to receive an independent report from the California Actuarial Advisory Panel on CalPERS. Opening remarks emphasized CalPERS’ role in providing retirement security for roughly two million members and the importance of actuarial assumptions to state budgeting and long-term pension health. Scott Tarando, CalPERS chief actuary and a CAP member, presented the report with Michael Cohen of CalPERS’ investment office available for questions. Tarando explained the statutory disclosure requirements under Government Code Section 2029, including sensitivity analysis around CalPERS’ 6.8% discount rate, and discussed how investment return assumptions and the 20-year amortization period affect contribution rates, unfunded liabilities, and budget volatility. He said shorter amortization periods would raise near-term costs but reduce long-term interest costs, and noted that CalPERS’ current approach is intended to smooth contribution changes over time. He also described the timing of the annual valuation process, explaining that contribution rates for a given fiscal year are based on the most recently audited year-end data and are approved by the board before being used in the budget process. Members asked about the relationship between average employee service life and amortization, whether more current data could be used, the effect of AI and labor-market changes on future assumptions, whether retirees’ benefits change with annual valuations, and CalPERS’ funded status. Tarando said the average expected working lifetime is about 11 to 12 years, while CalPERS uses a 20-year amortization period; he also said retiree benefits are set at retirement and do not change based on later valuations. He estimated CalPERS’ funded status had risen from the mid-60% range about 10 years ago to around 79% at June 30 and above 80% more recently. Cohen said CalPERS had complied with federal information requests and that no formal federal review had been released. During public comment, a county association representative praised the improved funded status and PEPRA reforms. The chairs closed by reiterating fiduciary responsibility and the need to protect CalPERS’ long-term stability, and the meeting adjourned.