Transcript Highlights:

• We've added one legal position, currently have a vacancy. We've added... Legal position.
• Another example, since you all know my love for tax, is your previous tax attorney.
• You can see we have alcohol tax, coal tax, fuel tax, income tax.
• You can see we have alcohol tax, coal tax, fuel tax, income tax.
• If you're looking at fuel tax, fuel tax, income tax.

Committee: Joint Legislative Procedure and Arrangements Committee

Summary: The Legislative Arrangements and Procedure Committee met with a quorum, approved the prior minutes, and then took up several follow-up items related to legislative security, public records, and the impacts of term limits. The Secretary of State’s office presented draft language to make legislators’ and candidates’ residential addresses confidential in public records, with discussion of who would be covered, how the protection would work, and whether it should expire when a candidate’s term ends. Members raised concerns about unintended consequences, transparency, and whether the public should still be able to see enough information to evaluate residency requirements. Rather than act immediately, the committee set the draft aside for a future meeting and asked for an amendment reflecting the Secretary of State’s suggested changes. The committee also reviewed a security best-practices memo and NCSL materials on capitol security. The memo encouraged legislators to be aware of their surroundings, avoid real-time vacation posting, vary routines, report threats, and follow security alerts. Members discussed a recent incident and the need to improve alert distribution and update contact information so legislators and staff receive notices consistently. The Secretary of State and committee members noted that the alert system may need refinement, including a separate legislative notification channel. The bulk of the meeting was devoted to Garrity Consulting’s final report on how to mitigate the effects of legislative term limits. The consultants summarized interviews, surveys, and focus groups with legislators, the public, and stakeholders, identifying major themes such as loss of institutional knowledge, leadership turnover, staffing pressures, and the need for stronger onboarding and training. Recommendations included considering annual sessions or shifting biennial sessions to even-numbered years, restructuring organizational session, making interim committees more consistent with regular committees, adding office hours, formalizing mentorship and leadership succession planning, expanding staff and professional development resources, creating public-facing educational tools, and improving communication and virtual testimony options. Members generally appreciated the report and its phased implementation roadmap, while also debating the practicality of some recommendations and the tension between making service more demanding and keeping the legislature accessible to new candidates.

Transcript Highlights:

• paid in taxes via tax ID numbers.
• Tax ID numbers is a mechanism through which most immigrants use to pay their taxes to contribute, and
• that does not include the revenue coming from property taxes, sales taxes, rental income.
• They are using tax dollars to defend themselves from our state tax dollars that are suing them.
• , $175 million are contributed to the Commonwealth paid in taxes via tax ID numbers, which is the mechanism

Transcript Highlights:

• Then we have the section on a report on the provider tax and how the provider tax might be utilized effectively
• , but one of the biggest... ...property tax, but one of the biggest drivers of the property tax is health
• penalty, all designed to keep the property tax low.
• That's several cents on the property tax rate.
• This was also added in sections 2 and 9.

Transcript Highlights:

• rate, but lower the taxes.
• rate, but lower the taxes.
• taxes when in fact you would have gotten taxes when in fact you would have gotten that<00:32:01.840><
• </c> you feel like you know whatever adding you feel like you know whatever adding some<00:44:17.280>
• tax portion, right?

Committee: Senate Education Finance

Transcript Highlights:

• keeping the tax dollars local.
• Third is to increase the local tax base by adding property to the tax rolls.
• to the local tax base.
• directs new tax preferences to have a tax preference performance statement, and it also outlines the
• one for that tax preference.

Committee: Joint Citizen Commission for Performance Measurement of Tax Preferences

Summary: The Citizen Commission for Performance Measurement of Tax Preferences met on August 4, 2026, with all five commissioners present. The commission approved the May 26, 2026 minutes, welcomed new commissioner Diane Tabilius, and re-elected Andy Knopfsiger Meadows as chair and Dr. Sharon Keiko as vice chair. JLARC staff also introduced two Evans School interns who are assisting with preliminary research for the 2027 review cycle. JLARC presented preliminary findings on seven tax preference reviews, focusing most heavily on the Main Street communities credit, the Equitable Access to Credit Program, and the urban data center exemption. Staff concluded that the Main Street preference has helped increase the number of communities and businesses and recommended continuing it, while also recommending that DAHP collect more detailed and standardized business-count data. The Equitable Access to Credit Program was found to support underserved communities and was also recommended for continuation. The urban data center exemption was found to have been used only for refurbishment projects, not new construction, and staff recommended letting it expire; commissioners and Representative Paulette discussed the need for better performance measures, cost-per-job analysis, and clearer legislative intent language in tax preference statements. Staff then reviewed airplane modification, landfill biogas, automotive adaptive equipment, and housing for people with developmental disabilities. The airplane modification preference was found to likely support jobs and state tax revenue and was recommended for continuation. The landfill biogas preference was also recommended for continuation, with a suggestion for more detailed reporting on use and renewable natural gas production. The automotive adaptive equipment exemption was found to continue providing relief to disabled veterans and service members and was recommended for continuation, while the housing transfer exemption for adults with developmental disabilities had not been used and was recommended to expire. No public testimony was taken at this meeting, and the commission noted that public testimony would be heard at its September meeting before final comments are adopted in October.

Transcript Highlights:

• tax that tax cap affecting budgets with tax that tax cap and<00:41:52.599><c> calculating</c><00:41:
• </c> impact tax impact why isn't it tax impact tax impact why isn't it tax increase<02:17:06.399><c>
• Not all tax impacts create an increase in tax impact.
• c> it'll impact your taxes um not all tax it'll impact your taxes um not all tax impacts<02:22:18.040
• /c> would go on the tax bill um and tax would go on the tax bill um and tax bills<02:47:48.319><c> are

Committee: House Municipal and County Government

Transcript Highlights:

• and counties can impose a second 2% lodging tax, which is not credited against the state sales tax.
• sales tax.
• voters approve the tax.
• tax.
• State sales tax.

Summary: House Finance heard testimony on several tax and local government bills. HB 2278 would remove the July 1, 2027 expiration on the additional $3-per-room-night tourism promotion area lodging charge; supporters from destination marketing organizations said the revenue has produced strong returns for tourism and events, while questions were raised about how the local ordinances would continue. HB 2583 would lower the population threshold for cities to impose a higher lodging tax and expand authority for public facilities districts; the sponsor and Vancouver supporters said it would help fund a proposed performing arts center and other tourism investments, while hospitality, short-term rental, and some local advocates raised concerns about stakeholder input, equity, and whether the bill was too broad. HB 2224 would change how a city forming a single-city fire protection district handles levy reductions and would exempt part of one levy from the local tax limit; city and firefighter groups supported it as a needed tool for fire and EMS funding, while hospital districts and tax opponents warned about prorationing, governance, and higher taxes. HB 2325 would create a statewide tourism self-supported assessment program funded by participating tourism businesses; supporters from tourism, hospitality, wine, and brewing groups said it would provide a competitive, industry-driven statewide marketing program, while members questioned impacts on specific communities and the need for broader local benefits. HB 2431 would expand from 15 to 50 days the amount of fundraising activity allowed in nonprofit public assembly halls and meeting places, and the Grange supported it as a practical way to keep community halls open. After public testimony, the committee moved into executive session and advanced three bills. HB 2584, a sales and use tax exemption for qualifying farm equipment sold to eligible farmers, passed 14-0 with one excused. HB 2610, which modifies the property tax exemption for nonprofit homeownership development, also passed 14-0 with one excused. HB 2615, which codifies the voluntary disclosure tax program and authorizes temporary tax amnesty, likewise passed 14-0 with one excused. The chair also announced a deadline for amendments on items to be acted on the following day.

Transcript Highlights:

• The state tax rebates that these cities receive are from the state hotel occupancy tax.
• This includes the state hotel occupancy tax and state sales and use taxes from their hotels, restaurants
• , state hotel occupancy tax, and mixed beverage taxes that exceeds the base year.
• These projects typically allow the hotel occupancy tax, sales and use tax, and sometimes the alcohol
• But the dollars we're talking about here are the state dollars for sales tax hotel occupancy tax that

Bills: SB1071 , SB1444 , SB1483 , SB1556 , SB1703 , SB1756 , SB1854 , SB2036 , SB2133 , SB2297 , SB2622 , SB2779 , SB2955 , SB2979

Committee: Senate Economic Development

Transcript Highlights:

• be paying taxes in New Mexico.
• This is addressing, and and... ...a tax bill.
• This is not a tax bill. We are not assuming and changing any tax code.
• The speaker happened through who used to chair the tax committee.
• Take this up with the tax chair and see what's going on.

Summary: The House Health and Human Services Committee first heard House Bill 256, which would require school cardiac emergency response plans to address sudden cardiac arrest at school athletic activities and ensure AEDs are clearly marked and accessible at those events. The sponsor and an American Heart Association representative said the bill builds on last year’s law and is meant to improve implementation, not add new equipment costs. Members asked about funding, were told the AEDs are already in place, and the bill received a due pass with no opposition. The committee then took up House Bill 278 on Medicaid reimbursement for toxicology testing in substance use disorder treatment. The sponsor and Southwest Labs argued that current payer policies limit providers’ clinical judgment, that a new flat-rate code for unlimited analytes would improve care, keep Medicaid dollars in New Mexico, and support local laboratories. Several members raised concerns about whether the bill effectively rewrites bundled G-codes, whether it mainly benefits one company, how it affects MCO contracts, GRT/tax issues, and whether the fiscal estimates were realistic. After extensive questioning and conflicting views, a due-pass motion was made but the vote ended in a tie, so the bill did not advance. Finally, the committee considered House Bill 287 to create a permanent, full-time Health and Human Services Committee with a director and expanded membership, similar to other permanent legislative committees. Supporters from advocacy and policy groups said health care is too large and complex to be handled by a part-time interim committee and that year-round staffing would improve oversight and policymaking. Members discussed committee composition, staffing, subpoena power, and the proposed appropriation, and the sponsor said the bill is a starting point that could be refined later. The committee approved HB 287 on a do-pass motion and then adjourned until Monday morning.

Transcript Highlights:

• , additional sales tax take the sales tax, additional sales tax take the sales tax, additional sales
• So grocery taxes, their sales taxes. So grocery taxes, their sales taxes.
• I struggle every time we do tax cuts, tax exemptions. Can we we do tax cuts, tax exemptions.
• I have I have a I have a master's in tax, but I don't do my tax return in tax, but I don't do my tax
• to make taxes described we're adding to make taxes described we're adding to make taxes lower.

Transcript Highlights:

• , including a preferential B&O tax rate, a B&O tax credit for manufacturing alternative jet fuel, and
• Representative Barra said that when it comes to tax credits, he thinks the tax credits kick in when you
• Is that for the tax incentive? Yes. Uh-huh.
• The underlying bill didn't change the term used in that tax exemption, so now the tax exemption would
• apply to... ...the term used in that tax exemption, so now the tax exemption would apply to both architectural

Bills: HB2436 , HB2322 , HB2343 , HB1420 , HB2426 , HB2271 , HB2215 , HB2421 , HB2301 , HB2296

Committee: House Environment & Energy

Keywords: oil tanker, tank vessel, restricted waters, Puget Sound, San Juan Islands, Rosario Strait, Admiralty Inlet, Discovery Island, New Dungeness, tug escort, pilotage, marine safety, spill prevention, oil transport, petroleum shipment, coast guard authorization, Board of Pilotage Commissioners, articulated tug barge, bunker vessel, refueling vessel

Transcript Highlights:

• income tax code.
• We know what tax...
• Reduce taxes on tips, reduce taxes on overtime, and increase the standard deduction and tax deductions
• A $4.40 million annual tax relief for hardworking Arizonans by passing the no tax on tips, the no tax
• No tax on tips. No tax on overtime.

Transcript Highlights:

• They are taxes on groceries, taxes on school supplies, taxes on building materials in the middle of a
• Let me be clear, tariffs are at the core of taxes. And like any tax, they're being paid."
• tax.
• You're calling this a tax? Wasn't the gas tax a tax? Isn't cap-and-trade a tax?
• Assembly Member Gallagher: "...another tax here in California. Who's the party of taxes?

Summary: The Assembly convened after a delayed quorum call, then moved through routine procedural actions, including unanimous-consent requests on guest seating and committee referrals. A motion by Assembly Member DeMaio to withdraw AB 2624 from committee failed on a roll call vote, 14-44. The chamber also heard multiple guest introductions and held an Armenian Genocide Remembrance ceremony with a prayer, pledge, and moment of silence. The main floor action centered on H.R. 97, commemorating the 111th anniversary of the Armenian Genocide. Assembly Member Schultz and numerous colleagues spoke in support, emphasizing historical recognition, solidarity with Armenian Californians, and opposition to denial. The resolution was adopted by voice vote after 66 co-authors were added. Later, H.R. 99 recognizing California Agriculture Day also drew extensive support from members highlighting the state’s agricultural economy, farmworkers, and the need for continued investment in agriculture; it was adopted by voice vote after 65 co-authors were added. Several bills were also considered and passed: AB 1838 on contractor wage-and-hour disclosure for public works bids, AB 1562 authorizing counties to randomly select poll workers, AB 2297 standardizing restitution rules in diversion programs, AB 1659 improving school re-enrollment support for justice-impacted youth, AB 1974 creating an optional temporary firearm storage program for law enforcement, AB 2402 updating health studio fee rules, and AB 1607 extending the Maddy Emergency Medical Services Fund. AB 1607 drew sharp opposition over fee funding and broader policy concerns, but passed 66-1. The Assembly also adopted ACR 129 establishing a sister-state relationship with Lagos State, Nigeria, and considered a Senate joint resolution on tariffs, with members split over whether tariffs or state policies were the main driver of higher costs; the transcript ends during debate on that resolution.

Transcript Highlights:

• The key provider taxes at issue here are the MCO tax and the fee on private hospitals, which you'll hear
• So, for example, in the MCO tax, it's not so much that HR1 requires a reduction to the MCO tax.
• non-Medicaid tax to $36 million.
• So basically, an HR1-compliant tax with a $36 million cap on non-Medicaid taxes would amount to a total
• tax of less than $100 million per year.

Summary: The Assembly Budget Subcommittee on Health began with a hearing on the impacts of H.R. 1 on California health programs, focusing first on reproductive health state investments. HCAI outlined five state-funded reproductive health programs created after Dobbs, including uncompensated care, practical support, capital and clinical infrastructure, and workforce programs. Essential Access Health and Planned Parenthood testified that these funds have served hundreds of thousands of patients, but warned that the uncompensated care program is fully awarded and needs renewal, and that Title X and Medicaid-related federal uncertainty continues to threaten access. Members questioned who the uncompensated care program serves, why Medi-Cal covers a large share of abortions, and whether Planned Parenthood could expand prenatal services; public commenters urged continued support for reproductive health access. The committee then took up long-term care services and supports, starting with the HCBA and Assisted Living Waiver programs. DHCS reported large wait lists for both programs and said enrollment is limited by workforce and provider capacity, while LAO noted that increasing slots alone may not increase access without additional programmatic changes. Members pressed the department on whether more slots should be added given the lower cost of home- and community-based care compared with skilled nursing facilities, and public testimony argued that the wait lists should be reduced and that staffing concerns do not fully explain unused capacity. The committee also heard testimony on congregate living health facilities, where providers and a patient family described the homes as critical, lower-cost alternatives to nursing facilities for younger, medically complex people. Witnesses requested short-term bridge funding, while DHCS said it is proposing to transition CLFs into a managed care benefit by January 1, 2028, which would remove caps and expand access statewide. The final long-term care topic was PACE. DHCS explained that it has paused new PACE applications and service expansions for at least two years to reassess oversight capacity and develop a statewide strategic growth framework, while existing programs continue operating. CalPACE supported the pause as a planning measure but asked for four additional state nurse positions to reduce delays in level-of-care determinations and speed enrollment for frail older adults. Members shared personal stories about how PACE has helped family members and asked how the state will meet growing demand; DHCS said stakeholder engagement will begin later in the year and that some existing applications already in process will continue. Public commenters broadly supported PACE, HCBA, and CLF funding requests. The hearing then moved to the Department of Health Care Services’ 2026-27 Medi-Cal budget and related trailer bills. DHCS said Medi-Cal spending has grown due to coverage expansions, higher acuity, rising utilization, and especially pharmacy costs, and it described proposals to extend the current skilled nursing facility financing framework for one year while the state develops a new value-based payment strategy. LAO said most recent Medi-Cal spending growth has been driven more by higher per-enrollee costs than by caseload growth, with pharmacy spending growing especially quickly, and recommended better and more timely data to analyze the drivers. Members expressed concern about the rapid rise in Medi-Cal spending and asked for more detail on the largest cost increases.

Transcript Highlights:

• An excise tax is a tax that's imposed on certain goods, services, and activities, and may be imposed
• may serve to reduce or eliminate the excise tax and the time period for which the tax will be imposed
• You can release it from numerous other purposes and reduce a vacancy tax, but it is an excise tax on
• It shouldn't be a tax on the acreage.
• in added cost per home in California.

Summary: The committee opened public hearings on House Bill 2141, concerning building codes, and House Bill 2573, concerning community access to food, medicine, and health services, then later took executive action on several bills. HB 2141 would impose a 10-year pause on new state building and energy code updates after the 2024 codes, limit local amendments until the 2036 codes, then move to a six-year update cycle and remove the current energy-code 70% reduction target. Supporters, including the sponsor, builders, local government groups, and some code officials, argued the bill would reduce regulatory churn, lower housing costs, and give builders and local governments more certainty. Opponents, including environmental groups, architects, fire marshals, and code organizations, said the freeze would raise long-term energy costs, undermine safety and climate goals, and delay adoption of new technologies. No action was taken on HB 2141 during the hearing. HB 2573 would require advance notice before grocery stores or pharmacies close in communities that relied on them for planning under the Growth Management Act, add a health and food access goal and a healthy communities element to the GMA, and authorize cities and counties to use zoning, excise taxes, and nuisance fees to discourage long-term vacancies and preserve access to food and medicine. The sponsor and supporters said the bill responds to recent store closures that created food and pharmacy deserts, especially in overburdened communities, and would give local governments tools to prevent blight and protect access to essential services. Opponents from grocery and retail industry groups argued the bill would punish businesses and property owners, create a chilling effect on investment, and unfairly burden independent landlords. The committee heard testimony on HB 2573 but did not take final action in the portion provided. During executive action, the committee reported several bills out with do-pass recommendations. HB 2517, on permitting tools for high-capacity transit projects, passed 4-3 after one proposed amendment was rejected and another was adopted to require property-owner consent before certain permits on property not owned by the transit authority. HB 2588, expanding county ferry district authority beyond passenger-only ferries, passed 4-3. HB 1529, allowing cities to use county resources for road construction and maintenance, passed 6-1. HB 2223, creating a limited exemption for irrigation district directors’ spouses’ contracts, passed unanimously. HB 2006, extending the deadline for certain rural counties to designate industrial land banks, passed unanimously after adoption of an amendment narrowing eligibility and adjusting timing requirements.

Transcript Highlights:

• So the GRT for medical supplies is no longer in that tax package.
• So the GRT for medical supplies is no longer in that tax package.
• from a tax package to an appropriations bill.
• But when they added the 1% to state employees, But when they added the 1% to state employees pay, I believe
• And I also added, Mr.

Bills: SB241

Keywords: child care, child care assistance, child care subsidy, early childhood education, early childhood care, daycare, preschool, pre-K, Head Start, Early Head Start, Children's Code, early childhood education and care department, ECECD, child care facilities, licensed child care, registered child care, copayments, waitlist, subsidy, federal poverty level

Summary: The Senate began by outlining the day’s agenda, then received several House messages, including the House’s request for concurrence on Senate Bill 151 and notice that the House had concurred in Senate amendments to House Bills 2, 3, and 70. The Senate also received enrolled bills SB 64 and SB 101, and later adopted committee reports on House Bill 120 and SB 64. The chamber then took up concurrence on SB 151, a tax package that the House amended to remove the gross receipts tax provision for medical supplies, add a 1% salary increase for state employees, higher education, and public schools, extend a high-wage job tax credit, and add sunsets. Senator Hamblen supported concurrence as a friendly amendment, while Senator Cervantes argued the House changes transformed the bill into an unconstitutional appropriations measure and urged a conference committee. The Senate nevertheless concurred, 22-14. On third reading, the Senate passed House Bill 61, which increases the penalty for aggravated battery on a peace officer from a third-degree to a second-degree felony to align with other sentencing provisions. Supporters, including Senator Cervantes, cited consistency in the criminal code and noted the Sentencing Commission’s endorsement; the bill passed 37-0. The Senate also passed House Joint Memorial 3, directing the Environment Department to convene stakeholders and report on implementation of the PFAS Protection Act, despite a brief exchange over whether the memorial could be read as expanding authority under the existing PFAS law; it passed 22-13. The chamber then passed several memorials: Senate Memorial 20, amended to include youth and family voices and legislative appointees in a statewide youth violence summit, passed 35-0; Senate Memorial 21, calling for a study of a statewide overdose prevention program, passed 35-0; Senate Memorial 22, which asks the Legislative Finance Committee to convene a working group on domestic violence funding and CYFD-related funding flows, passed; and Senate Memorial 27, urging expansion of the Radiation Exposure Act to compensate New Mexicans affected by atomic testing and uranium mining, passed 34-0. At the end of the session, the Senate received a governor’s message authorizing consideration of SB 74 on cockfighting penalties, followed by a playful Senate response message. The body also agreed to move House Joint Memorial 2 from Rules to the President’s table and then recessed until 8:30 a.m. the next day.

Transcript Highlights:

• Additionally, income tax and corporate income tax wasn't coming in as strong as projected either.
• Now, we added a law that added the expansion plan onto that.
• And so sales tax has always been our tax category that helps pay for those population adjustments in
• And so sales tax has always been our tax category that helps pay for those population adjustments in
• But all told, sales tax projections are getting about 64% of total sales tax.

Committee: Senate State Affairs

Transcript Highlights:

• As you can see from the transient room tax growth graph, the transient room tax growth over the last
• </c><00:07:59.159><c> cre</c><00:07:59.879><c> ad</c> photography videography ad cre ad photography videography
• ad cre ad placement<00:08:00.560><c> Etc</c><00:08:01.240><c> were</c><00:08:01.479><c> paid</c><00:
• </c> direct visitor spending and $4 in tax direct visitor spending and $4 in tax revenues<00:10:16.640
• We know they've seen our ad through GPS tracking, that if they've seen our ad and visited in the last

Summary: The committee met for its second Budget Review on Economic Development, Public Protection, Tourism, and Energy and first approved the minutes from the prior meeting. Members then heard a presentation from the Tourism, Arts, and Heritage Cabinet and the Kentucky Department of Tourism on the 1% tourism marketing fund. Witnesses explained that the fund supports statewide tourism promotion, advertising, research, regional marketing, and matching grants to local tourism commissions, and that it cannot be used for capital construction. They reported that the General Assembly and governor increased appropriations in the 2024 session, adding $3 million in FY25 and $7 million in FY26, and set aside funding for the Kentucky Mountain Regional Recreation Authority, the National Quilt Museum, and the Southern Kentucky Tourism Initiative. Tourism officials emphasized that Kentucky tourism is a major economic driver, citing 2023 figures of $13.8 billion in economic impact, 79.3 million visitors, $9.7 billion in direct spending, more than 95,000 jobs supported, and nearly $1 billion in state and local tax revenue. They said the department now uses targeted digital and over-the-top advertising in selected domestic and international markets, with 62% of media placements digital and 80% of the budget spent out of state. Members asked about market selection, how the department measures return on investment, and what attracts visitors from places such as Dallas, Orlando, Toronto, and Washington, D.C.; officials said research shows a mix of family visits, outdoor recreation, and varied Kentucky offerings, and that 81% of overnight visitors are repeat visitors. They also discussed the potential impact of tariffs and trade tensions on bourbon-related tourism and international visitation, especially from Canada, and officials said they were monitoring the situation with U.S. Travel Association and Brand USA. The committee then heard from Kentucky State Parks officials on capital projects funded through HJR 76, HJR 56, and House Bill 6. They said they are providing quarterly project reports and have been meeting regularly with the Finance Cabinet’s engineering and contract staff. The presentation focused on campground utilities, broadband, and structural upgrades, including $40 million for campground improvements across the park system, with completed bathhouse renovations at Barren River and Nolin Lake and additional projects underway or in planning. Officials said the work is based on camper survey feedback, such as requests for better Wi-Fi, sewer and electric upgrades, frost-free spigots, and improved site layouts, and noted that the My Old Kentucky Home campground project is under construction and expected to be completed by spring 2026.

Transcript Highlights:

• fuels tax indexing.
• Then you see the sales tax on auto parts is unchanged, and the rental tax.
• </c><00:24:26.840><c> these</c> recipient of tax the taxes off of these recipient of tax the taxes off
• in the Tax Committee, but we are talking about taxes on transportation.
• It’s not really a neutral tax; it’s taxing some and not taxing others.

Committee: House Transportation Finance and Policy

Transcript Highlights:

• </c><00:27:33.159><c> which</c> dedication for the property tax which dedication for the property tax
• So, adding that language and dedication is current on its real property tax obligations.
• who are on agricultural land and paying those tax rates, those property taxes, those water rates, um
• who are on agricultural land and paying those tax rates, those property taxes, those water rates, um
• property taxes classified in AEG from my property taxes classified in AEG from my understanding<00:30

Summary: The joint House Agriculture and Food Systems and Tourism hearing focused on HB 189 and HB 966, both dealing with agricultural tourism. HB 189 would require counties to adopt ordinances governing review and permitting of agricultural tourism as secondary uses on working farms, require the principal agricultural use to pre-exist any tourism-related permit, and limit ag tourism to land where productive agriculture is occurring. HB 966 would create statewide uniform standards for agricultural tourism, require county registration of activities, require ag tourism to coexist with agricultural activity on a farming operation, and end the tourism use when agricultural activity ceases. Testimony on HB 189 was mixed. The Department of Agriculture and Kualoa Ranch opposed the bill, arguing that the proposed restrictions and income-based limits could burden bona fide farms and ranches, reduce flexibility for counties, and harm food production, jobs, and diversification efforts. Kualoa Ranch said ag tourism supports its food sales and community market and warned the bill could cost more than 350 jobs. The Hawaiʻi Cattlemen’s Council also opposed the measure for similar reasons. The Hawaiʻi Farmers Union supported the bill with suggested amendments, including clearer language around agricultural dedication. The Hawaiʻi Farm Bureau supported the intent of the bill but urged caution, saying ag tourism should remain tied to actual agricultural production and that counties need flexibility to address abuses without imposing overly rigid standards. Members discussed how to define a bona fide agricultural operation and whether property tax agricultural dedication could serve as a clearer qualifier. They also raised concerns about how counties would enforce revenue thresholds or separate accounting for tourism and farm income, and whether state law should better target clearly non-agricultural uses such as gondolas or other abusive developments. The Department of Agriculture and Farm Bureau said counties already have authority to regulate ag tourism through ordinances, but that any new standards should avoid unintended burdens on true farmers and ranchers. HB 966 was then introduced, and initial testimony again reflected support for the bill’s intent from some agricultural groups and opposition or caution from others. Kualoa Ranch said ag tourism can help educate visitors and support agriculture, the Hawaiʻi Farmers Union supported county flexibility, and the Hawaiʻi Farm Bureau reiterated concerns about the bill’s income comparison provisions and the need to distinguish legitimate agricultural tourism from misuse. No votes were taken during the hearing.