Transcript Highlights:

• This fall, there were a lot of states where their tax commissions or commerce commissions, or whoever
• I guess at the bottom part here, taxes shall be computed on the base of the total sales price before
• But so I guess just to follow up with the tax collection, where the sales tax is going to go up, isn't
• Chairman, Senator Harris, I don't think sales tax will change at all, because you...
• amount of the invoice total and then the sales tax is on that amount.

Committee: Senate State Affairs

Transcript Highlights:

• he needed to somehow deposit $25,000 into a cryptocurrency machine so that he could then get his refund
• They found, on average, that multifamily developments can generate up to $7,000 in net tax revenue per
• sewer pipe, and police and fire coverage as a single-family home, but provides more than double the tax
• or property tax rates on our struggling families.
• Look what Eagle has done: large lot sizes, larger homes, greater tax revenue.

Committee: House Business

Transcript Highlights:

• There can also be liens and civil judgments against obligors, tax refund intercepts, and criminal charges
• 27.119><c> and</c> civil judgments against and civil judgments against and obligor<00:43:28.839><c> tax
• </c><00:43:29.160><c> refund</c><00:43:29.680><c> intercepts</c><00:43:30.599><c> and</c><00:43:30.920
• ><c> uh</c> obligor tax refund intercepts and uh obligor tax refund intercepts and uh criminal criminal

Committee: House Children and Families Finance and Policy

Transcript Highlights:

• Payroll taxes were not always paid to the IRS by the due date.
• Payroll taxes were not always paid to the IRS by the due date.
• We have Treasurer-Tax Collector Melanie Coel here today.
• We have Treasurer-Tax Collector Melanie Coel here today.
• Melanie Coel, Johnson County Treasurer-Tax Collector.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Summary: The committee approved the February 12 minutes and then received updates on delinquent municipal water and sewer reports, noting substantial progress in bringing cities back into compliance. Several items were deferred at the request of local officials, including Fargo’s municipal accounting code report, Jericho’s misuse of street funds matter, Biggers, Holly Grove, Gilmore, and several private water and sewer reports lacking proper responses. The committee also filed a number of reports with no questions or with resolved findings. A lengthy portion of the meeting focused on repeat audit findings and management responses. The City of Strong’s mayor described corrective steps on undeposited funds, improper use of solid waste funds, unsupported spending, IRS payroll tax issues, accounting controls, restricted fund transfers, and budget overruns; the committee commended the city’s efforts and filed the report. Calhoun County’s report, involving improper county spending for an appreciation banquet and altered receipts in the collector’s office, was also filed after discussion about educating local officials on constitutional spending limits. Other reports filed included Salem, Briarcliffe, Compton Water Association, and Montgomery County Regional Public Water Authority, while several private water reports were deferred or referred to prosecutors and the Attorney General. The committee reviewed a major regional solid waste management districts report, with significant findings for Pulaski County and Faulkner County involving unapproved payroll items, missing documentation, vehicle and cell phone use, lack of competitive bids, and weak internal controls; Benton County had fewer issues, and several districts had no findings. On motion, the Pulaski County report was deferred so district representatives could answer questions. The committee also heard from Nevada County, where unauthorized withdrawals and interlocal landfill agreement problems were discussed; the county judge said the issues were being corrected, and the report was filed. Later, the committee heard from the City of Grubbs about long-standing IRS debt and from Cross County Rural Water System about overdue audit posting and water quality problems; both witnesses described corrective efforts and ongoing funding or infrastructure projects, and the committee filed the reports after extensive discussion.

Transcript Highlights:

• on the back end if they met the benchmarks they set for themselves, including an ROI and projected tax
• </c><00:14:16.880><c> revenue</c> projecting this amount of tax revenue projecting this amount of tax
• would increase state costs as well as administrative costs for DHR, and it would also increase the tax
• would increase state costs as well as administrative costs for DHR, and it would also increase the tax
• </c><00:20:32.640><c> burden</c><00:20:32.960><c> on</c> it would also increase the tax burden on it

Bills: HB179 , HB354 , SB57 , SB137 , HB431 , HB179 , HB354 , SB57 , SB137 , HB431

Committee: House Ways and Means General Fund

Keywords: campus chaplain, chaplain, school chaplain, volunteer chaplain, public schools, public K-12 education, public charter schools, local control, teacher support, student support services, religious volunteer, faith-based support, church-state separation, background check, sex offender registry, school volunteer, education policy, district attorney, compensation, constitutional amendment

Transcript Highlights:

• This just allows us to continue to use the pump tax for the next three years.
• , the taxes placed on farmers in the service... ...taxes placed on farmers in the service territory using
• the water, and so they're taxing themselves.
• But you cannot get designated and purchase that water without having a tax base.
• And the only way to build that tax base is certificates and replenishment water.

Bills: HB2026 , HB2027 , HB2028 , HB2031 , HB2078 , HB2094 , HB2095 , HB2101 , HB2102 , HB2103 , HB2260 , HB2278 , HB2827 , HB2932 , HB2933 , HB2934 , HB2986 , HCM2009 , HCR2038

Committees: House Natural Resources, Energy & Water , House House Natural Resources, Energy & Water Committee of Reference

Keywords: assured water supply, groundwater, commingling, commingled water, water supply, Arizona Department of Water Resources, ADWR, active management area, AMA, subdivision plat, development approval, water rights, municipal provider, private water company, certificate of assured water supply, written commitment of water service, groundwater savings credits, gray water reuse, replenishment district, Central Arizona Project

Transcript Highlights:

• that undocumented people in this country and in this state have paid more than 100 billion dollars in taxes
• And because they are unfortunately undocumented, they do not get to get a return on some of their taxes
• The tax, what's happening, and the weight that the health care system is feeling right now is immense
• And when I specifically think about that, I know the taxing nature of SMI and what that looks like and

Bills: SB1051 , SB1114 , SB1115 , SB1122 , SB1132 , SB1162 , SB1169 , SB1171 , SB1172 , SB1173 , SB1174 , SB1175 , SB1179 , SB1188 , SB1233 , SB1236 , SB1242 , SB1316 , SB1368

Committees: Senate Health and Human Services , Senate Senate Health and Human Services COR

Keywords: SB1051, Arizona hospitals, immigration status, patient intake, admission forms, registration forms, health care reporting, uncompensated care, emergency department, lawfully present, undocumented immigrants, noncitizen patients, hospital funding, Arizona Department of Health Services, ADHS, border security, health care institutions, patient privacy, medical access, immigration policy

Transcript Highlights:

• multiple efforts in our government, including executive orders that require state agencies to issue refunds
• I very much look forward to building our projects, building bridges, pouring concrete. to issue refunds
• And I think, frankly, that's a missed opportunity for us, for jobs in our communities, to get sales tax

Summary: The committee began with a work session on the Washington State Transportation Commission’s route jurisdiction transfer study. Commissioners and staff said the current state highway system is generally well connected and that wholesale realignment is not needed, but they recommended clarifying statutory criteria, improving the transfer process, increasing interagency coordination, and making data analysis more transparent. Members asked about why transfers occur, who pays for maintenance after a transfer, how often transfers happen, and how the Legislature’s role should be understood. Staff said there have been only 16 RJT transfers since 1991, with a net transfer of about 10 miles of state highway to cities, while DOT abandonments happen more often but are not tracked as consistently. The committee then held a public hearing on House Bill 2172, which would fold longer abandonments and bridge-related abandonments into the RJT process, require pre-request conferences, expand legislative review of costs and risks, and update highway criteria. Tacoma officials, the Transportation Commission, counties, cities, and the Transportation Improvement Board testified in support, citing transparency, local input, and the need to address large bridge and corridor transfers; the bill sponsor said a substitute would allow agreed transfers to proceed without final legislative approval, but send disputed cases to the Legislature. The bill was also described as having an indeterminate fiscal impact, with WSDOT estimating possible added maintenance costs if transfers are delayed. The committee next heard House Bill 1367, which would allow motorcycles to use the right shoulder of limited-access highways under specific congestion conditions. The bill and a proposed substitute would limit shoulder use to wide shoulders, require hazard lights, cap speed at 10 mph over adjacent traffic, and bar passing other vehicles on the shoulder; the fiscal note projected costs for driver education and possible maintenance and signage impacts. The sponsor argued the bill would reduce rider fatigue, heat stress, and rear-end risk in stop-and-go traffic, while opponents from law enforcement and WSDOT said shoulders are intended for emergencies, debris and visibility create safety risks, and the proposal could increase maintenance and enforcement burdens. Several motorcyclists and advocates supported the bill as a safer alternative to lane splitting, while a student and some agencies said it would give riders a more predictable option; the committee then closed the hearing. The committee also heard House Bill 2174, which would create “crash prevention zones” in areas with repeated serious collisions or fatalities. The bill would allow cities, counties, towns, or WSDOT to designate zones after a public hearing, require engineering and traffic studies, increase enforcement, and impose a $73 penalty for certain infractions within signed zones, with revenue dedicated to safety work in the zone. The sponsor pointed to dangerous stretches of Highway 395 and Highway 12 in eastern Washington and said the bill is intended as a temporary safety tool until long-term fixes are completed. Counties and cities supported the concept and asked for liability protections and language from a Senate companion bill; the committee then moved to House Bill 2718, a transportation permitting and project-delivery bill. Staff said HB 2718 would impose timelines and deemed-approval rules for certain state and federal permits, require early outreach to affected governments and tribes, create a public contractor-rating website, and direct WSDOT to report on permit-streamlining options by December 1, 2027. The sponsor said the bill is meant to reduce delays and costs in transportation projects by improving accountability, coordination, and permitting efficiency.

Transcript Highlights:

• initiative and constitutional amendments campaigns are critically important and can impact everything from taxes
• an agency too much over the course of the year, at the end of the year we do a reconciliation and refund
• We do a reconciliation and refund money back to the agency so that our cash balance at the end of the

Bills: SB1285 , SB1289 , SB1326 , SB1328 , SB1329 , SB1330 , SB1392 , SB1402 , SB1425 , SCR1013 , SCR1014

Committee: Senate Judiciary and Elections

Keywords: sentencing, correctional facilities, multiple sentences, death penalty, aggravating circumstances, juvenile offenses, class 2 felony, foreign donations, election administration, certification, Arizona Revised Statutes, transparency, public disclosure, victims' rights, attorney fees, government accountability, right to counsel, legal representation, parents' rights, family law

Transcript Highlights:

• To include Midland to receive a state sales tax and hotel occupancy tax incentive program.
• Severance taxes.
• I'm not a tax expert.
• dollar tax credit on your income taxes.
• , state hotel occupancy taxes, and state mixed beverage taxes for 30 years.

Bills: HB249 , HB 1186 , HB2313 , HB2408 , HB2508 , HB2730 , HB2974 , HB3045 , HB3232 , HB3336 , HB3710 , HB4044 , HB4236 , HJR133 , HB249

Committee: House Ways & Means

Transcript Highlights:

• on collection and use of lodging tax.
• To audit tax filing.
• The legislative auditor recommends continuing the public utility tax and natural gas use tax exemption
• Pay a reduced B&O tax rate of 0.9%.
• The preference refunds up to $2,500 of state sales tax on use and materials incorporated into housing

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

• But we also do like fish business inspections, tax it or other inspections, internet being probably our
• the founder of Women for Wolves, and I stand here on behalf of over 138,000 supporters in favor of refunding
• And that is why we need to refund coexistence. We work with guardian dog rescues.
• I'm the co-founder of Women for Wolves, and I am here today to urge you guys to refund California's Wildlife

Summary: The hearing focused on human-wildlife conflict in California, especially predator management involving bears, mountain lions, coyotes, and wolves. The chair and Assemblymember Hadwick framed the issue as a balance between protecting people, livestock, and property while preserving wildlife and biodiversity, citing habitat loss, development, drought, wildfire, and climate change as drivers of conflict. Department of Fish and Wildlife officials described their conflict-response work, including public education, depredation permits, wildlife incident reporting, and coordination with sheriffs, counties, and other agencies. They also noted that wildlife sightings and conflicts are increasingly common in both rural and urban areas, including recent mountain lion activity in San Francisco and ongoing bear conflicts in places like Tahoe and Sierra Madre. CDFW staff outlined the department’s human-wildlife conflict program, including the WEIR reporting system, a public toolkit, limited-term staff, and regional response efforts. They said the program grew out of drought-related incidents and later state funding, but that one-time money has expired, creating service gaps. Officials also discussed specific management approaches such as Tahoe’s trap-tag-haze bear program, DNA-based incident tracking, and the use of nonlethal deterrents before lethal action. For wolves, they explained that the species is protected and managed differently from bears and lions, that there is no general depredation-kill process for wolves, and that the department is working on data-sharing agreements, county liaisons, compensation programs, and improved coordination with ranchers and local law enforcement. Members pressed the department on underreporting, trust in state agencies, the need for sheriffs to participate in investigations, and whether more authority should be given for public-safety removals or hazing. Assemblymember Gonzalez also raised wildlife trafficking and border enforcement issues in Southern California. The panel repeatedly emphasized that more resources, technology, and local partnerships are needed. Officials gave budget context, saying roughly $17 million in one-time funding over several years supported conflict response and wolf compensation efforts, but that staffing and program capacity remain limited. The chair concluded by noting interest in further work on technology, funding, and institutionalizing collaboration, and the hearing then moved to a second panel of university researchers who presented on wolf and mountain lion conflict, habitat planning, trust, and the need for flexible, science-based, locally tailored mitigation strategies.

Transcript Highlights:

• the bonds or be used to like refund the bonds or something<00:19:01.400><c> like</c><00:19:01.679><c
• </c> to do at the highway user tax to do at the highway user tax distribution<00:54:44.640><c> level<
• some help from the state on a taxes some help from the state on a one-off<01:02:48.520><c> basis</c>
• It's all debt on the governmental side, so paid out of the general fund or through dedicated taxes.
• </c> come from a a dedicated um dedicated tax come from a a dedicated um dedicated tax source um<01:33

Committee: Senate Capital Investment

Transcript Highlights:

• the property tax.
• taxes, gas taxes, and property taxes in the nation.
• Our taxes are too high. Our retail taxes are too high.
• of their taxes.
• Of a donor receiving a tax credit for $1,700 on their taxes.

Bills: HB2720 , HB2073 , HB2681 , SB5467 , SB5820 , SB5863 , SB5892 , SCR8406 , HB2487 , HB2711 , SB5816 , SB5919 , SB5995 , SB6278

Summary: The House convened, established a quorum, approved the prior day’s minutes, and then moved through caucuses and a series of transportation, elections, energy, historical records, cannabis, abortion-access, and fiscal bills. Members repeatedly emphasized that several measures were supplemental or technical updates to existing law, while others involved larger policy disputes over taxes, fees, clean energy, election security, and reproductive health. The chamber also received Senate messages on other bills and briefly recessed for caucus during the day. The most prominent action was final passage of Engrossed Substitute Senate Bill 6005, the supplemental transportation budget, after adopting a technical amendment and a larger striker amendment. Supporters highlighted preservation and maintenance funding, rail investments, ferry maintenance, road safety, and continued work on major projects statewide; opponents largely reserved comments or noted concerns about future needs. The House passed the bill 93-0 with five excused. The House also passed Engrossed Substitute House Bill 2711 on transportation resources, after adopting a technical amendment that removed the aircraft tax and delayed an RV-related tax change; supporters said it protected businesses and jobs, while opponents objected to trade-in treatment and other tax changes. That bill passed 83-10. On elections, the House considered Senate Bill 5892 to protect the voter registration database. An amendment to reduce penalties from a felony to a civil infraction and remove the emergency clause failed, while the committee amendment passed 50-34. Supporters said the bill was needed to safeguard sensitive voter data and clarify access; opponents argued it created conflicts with federal law and imposed excessive penalties on local election officials. The bill then passed 57-36. On energy, Substitute Senate Bill 5982 updating consumer-owned utility provisions drew debate over carbon capture, resource adequacy, data centers, and clean energy policy. Amendments on carbon capture and blackout-triggered termination failed, while an amendment preserving cogeneration exceptions passed; the bill then passed 57-37. The House also passed Senate Bill 5863 on preservation and inspection of state historical records, after rejecting an amendment to require longer retention but adopting the committee amendment; supporters stressed preserving the history of residential habilitation centers and the value to families seeking records. Substitute Senate Bill 5874, allowing the Employment Security Department to waive penalties for minor employer reporting errors, passed unanimously. Engrossed House Bill 2681, raising cannabis license fees while removing an escalator, passed 52-42. Finally, Substitute Senate Bill 5917 on access to abortion medications saw several failed amendments from opponents seeking to narrow, reframe, or add fiscal limits to the bill; supporters said it preserved flexibility to ensure access and avoid waste, and the bill passed 57-36.

Transcript Highlights:

• Members, by way of background, HB 2120, property tax exemption disability determination.
• Come find me or our property tax assessing expert with Cruz if you have any questions.
• It's nice to have a property tax expert in our caucus.
• Madam Chair and members, HB 2792, property tax exemption veterans, makes clarification to property tax
• It requires them to return or refund any prohibited contribution within 10 days.

Summary: The caucus reviewed a long list of bills and resolutions, with members frequently asking to pull measures from consent and noting party-line or unanimous votes. Topics included medical and vaccination restrictions (HB 2248, HB 2086), state investment and conflict-of-interest rules for the treasurer (HB 2303), budget and reporting requirements (HB 2688, HB 2015), procurement limits involving China-linked companies (HB 2170, HB 2134), homelessness administration (HB 2533), traffic and transportation measures (HB 2109, HB 2574, HB 2210), school testing and education policy (HB 2032, HB 2033, HB 2075, HB 2266, HB 2395, HCR 2003), and several health-care bills involving lactation services, gender-transition care for minors, abortion-related restrictions, and hospital immigration-status reporting (HB 2072, HB 2085, HB 2364, HB 2689, HB 2796). Members also discussed water policy, including desalination, groundwater transport, and water-use limits (HB 2052, HB 2056, HB 2098, HB 2758, HB 2328), as well as food and agriculture measures such as SNAP restrictions, cultivated-cell food labeling and bans, and the Beef Council extension (HB 2396, HB 2762, HB 2791, HB 2155). Several members criticized bills as unconstitutional, costly, or harmful to affordability, while sponsors described them as clarifications, consumer protections, or administrative fixes. The caucus also considered a number of bills affecting labor, property, and consumer issues, including unemployment eligibility changes, mobile home park submetering fees, appraisal management company rules, digital goods seller requirements, property tax clarifications, and protections for minors in online content creation (HB 2690, HB 2459, HB 2501, HB 2010, HB 2120, HB 2192, HB 2261, HB 2279). Other measures addressed sexual extortion penalties, name-change procedures for sex offenders, and restrictions on abortion-inducing drugs and gender-transition procedures for minors (HB 2666, HB 2223, HB 2364, HB 2085). Members repeatedly raised concerns about federal preemption, constitutional issues, implementation costs, and unintended consequences, and several sponsors or members indicated they were working on amendments or stakeholder discussions. At the end of the meeting, the caucus also heard memorials and resolutions, including a proposal to limit voting centers and precinct voting, and memorials urging withdrawal from the United Nations and defunding the IMF (HCR 2016, HM 2001, HM 2004). The meeting concluded with caucus announcements, including an affordability-themed award recognizing Rep. Betty Villegas, a Black History Month sign-up request, and reminders about upcoming affordability and Latino Caucus events. No final floor votes were taken in the transcript, but multiple bills were pulled from consent or noted for opposition.

Transcript Highlights:

• In addition, we utilize tax increment financing and tax abatement as development tools.
• In addition, we utilize tax increment financing and tax abatement as development tools.
• In addition, we utilize tax increment financing and tax abatement as development tools.
• In addition, we utilize tax increment financing and tax abatement as development tools.
• In addition, we utilize tax increment financing and tax abatement as development tools.

Transcript Highlights:

• And are they taxed on the natural gas production side or are they taxed on the oil side? Mr.
• It's tax relief, and it's water projects.
• Just a little refresher here on the tax rates for individual income tax for North Dakota.
• And so when they file their tax return with these new deductions, they're likely in a refund situation
• years and tax return years.

Summary: The Budget Section Leadership Division met with a quorum present and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity, which described North Dakota production as holding steady around 1.1 to 1.2 million barrels per day despite lower prices and market volatility. The presentation emphasized that efficiency gains, longer laterals, and improved completion technology are allowing operators to sustain output while activity shifts north in the Bakken. Members asked about gas taxation, natural gas liquids, flaring, and enhanced oil recovery; the witness said gas is taxed by volume, most liquids are handled through oil lines or gas processing, and the state’s EOR pilot projects and new gas infrastructure are intended to help hold production flat and expand future recovery. The committee then received a presentation from the Tax Department on the federal “big beautiful bill” and its effect on North Dakota income tax collections. The department explained that most of the federal changes were extensions of existing Tax Cuts and Jobs Act provisions, but several items — including the larger standard deduction, senior deduction, tip and overtime exclusions, auto loan interest deduction, and business expensing changes — affect state collections. Revised estimates showed a smaller-than-expected impact on individual income tax, with the department suggesting a net cash effect in the range of roughly $30 million to $35 million when business and individual effects are combined, plus a possible one-time distortion from large oil-field transactions in fiscal year 2025. Members asked which provisions apply to standard versus itemized returns, and the department clarified that most of the individual provisions apply broadly, while the SALT-related item is itemizer-specific. OMB then reported on major capital projects and facility funding. Updates included Capitol grounds improvements such as 18th-floor renovations, wayfinding, augmented reality displays for the Rough Rider Hall of Fame, tree management and lighting studies, and restroom and parking reconfiguration in the tower. OMB also described security upgrades at the governor’s residence, where human remains were discovered on site and are being handled with historical and legal review. The state hospital project in Jamestown remains on schedule for substantial completion in winter 2027 and opening in spring 2028, with costs currently estimated a little over $292 million and a line of credit expected to be drawn in April 2027. The North Central State Office Building in Minot is under construction, with a $5.6 million line of credit already accessed. OMB also reported on the State Facility Maintenance Fund, noting about $1.1 million spent so far on projects such as the Liberty Memorial Building roof and foundation work, Capitol window replacement, boiler replacement, and kitchen remodeling. Finally, Legislative Council staff reviewed the interim compliance report on legislative intent and state trust funds. The report highlighted the status of multiple lines of credit, including those for the state hospital and Minot office building, and noted that the executive budget will likely need to include repayment planning for about $350 million of expected outstanding balances. Other updates included the Bank of North Dakota profit transfer schedule, litigation pool spending, the new Office of Guardianship and Conservatorship, the Missouri River Correctional Center planning effort, HHS items such as FMAP and child care assistance, Job Service’s unemployment insurance modernization project, and DPI school aid turnback estimates. No formal votes were taken beyond approval of the minutes.

Transcript Highlights:

• And are they taxed on the natural gas production side, or are they taxed on the oil side? Mr.
• It's tax relief, and it's water projects. ...you know, rural North Dakota, it's education, it's tax relief
• Just a little refresher here on the tax rates for individual income tax for North Dakota.
• And so when they file their tax return with these new deductions, they're likely in a refund situation
• years and tax return years.

Summary: The Budget Section Leadership Division met with a quorum and approved the March 18 minutes. The committee first heard an update from the Petroleum Council on oil and gas activity in North Dakota. Ron Ness said production is expected to remain relatively flat at just under 1.2 million barrels per day, with efficiency gains and longer laterals helping offset lower rig counts. He discussed oil and gas prices, gas taxation, flaring concerns, northward movement of drilling activity, and the importance of new infrastructure and enhanced oil recovery (EOR) pilots. Members asked about gas taxation, natural gas liquids, pipeline impacts, and the outlook for Continental and other operators. Ness said the industry is likely to remain steady rather than see a major ramp-up or decline. Matt Pearl of the State Tax Department then explained the federal “big beautiful bill” and its effect on North Dakota income tax collections. He said the law extends or makes permanent several federal provisions and creates temporary deductions for seniors, tips, overtime, and auto loan interest, with the biggest state impact coming from the standard deduction increase and business tax changes. He revised earlier estimates downward, saying the net cash impact on state collections is likely in the $30 million to $35 million range after accounting for business prepayments and one-time FY25 oilfield transaction effects. Committee members asked which provisions apply to standard versus itemized returns. OMB staff gave a detailed update on major capital projects and facility funding. Topics included Capitol grounds improvements such as 18th-floor renovations, wayfinding, seating, lighting, tree management, and restroom and lobby upgrades; security work at the governor’s residence, which has been delayed by the discovery of human remains; and space reconfiguration efforts in Bismarck-Mandan to reduce leases and create shared offices and conference rooms. They also reported on the State Facility Maintenance Fund, including roof, window, boiler, and kitchen projects at state facilities, and on the state hospital project in Jamestown, which remains on budget and on schedule for substantial completion in winter 2027 and opening in spring 2028. OMB also updated the committee on the Minot North Central State Office Building, the use of federal State Fiscal Recovery Funds, and the status of legislative intent and trust fund reports, including school aid turnback, the school construction loan program, the Foundation Aid Stabilization Fund, the Legacy Fund, and the Strategic Investment and Improvements Fund. The committee ended by discussing future agenda items, including government efficiency, cash management, Bank of North Dakota lines of credit, and the rural health transformation program, and then adjourned.

Transcript Highlights:

• But claimant refused to accept the shoes and filed this claim instead to request a refund for a new pair
• instead<00:54:29.400><c> to</c><00:54:29.520><c> request</c><00:54:30.000><c> a</c><00:54:30.040><c> refund
• /c><00:54:31.400><c> for</c><00:54:31.560><c> a</c><00:54:31.600><c> new</c> instead to request a refund
• of for a new instead to request a refund of for a new pair<00:54:32.040><c> of</c><00:54:32.160><c>

Summary: The Joint House and Senate Subcommittee on Claims convened on April 30, first without quorum and then with quorum, at which point the committee corrected and approved the prior minutes. Members then reviewed several claims held over for informational purposes, including injury claims for Fraser, Larson, Schmidt, Stuart, and Washington, and property claims for Lidberg, Robecky, and Young, with no action taken on those items. The committee dismissed a claim by Ms. Prevally seeking reimbursement for funds liquidated from irrevocable trusts after hearing that the matter had already been litigated in court and that subcommittee rules bar claims for public assistance compensation. The panel then approved two exoneration claims: James Jovan Davis, whose murder conviction was vacated after postconviction proceedings and who settled for $250,000, and Clayton Douglas Groves, whose sexual-conduct convictions were vacated after evidence of prior false accusations was admitted and who settled for $350,000. Testimony from counsel for both claimants emphasized wrongful conviction, the length of incarceration, and negotiated settlement amounts, with members asking about the basis for the compensation and attorney-fee allocations. The final exoneration claim, Marvin Haynes, was also approved. The committee heard that Haynes was convicted as a teenager, later exonerated after new evidence showed false evidence and suggestive eyewitness identification, and that the state and claimant had reached a $4.5 million settlement. The committee then turned to Department of Corrections injury claims, denying Arnold Baker’s claim for lack of evidence of a compensable permanent injury, and approving Mark Carroll’s claim for a $4,570.40 award after he suffered a compensable ankle fracture while working. In property claims, the committee discussed Anthony Edwards’s claim for food, a JPay tablet, and shoes. After testimony from Department of Corrections counsel about property inventory procedures and the lack of a current replacement tablet program, members agreed to compensate Edwards $70 for the missing shoes, deny the food claim, and deny the tablet claim because the tablet had been returned and any malfunction was reported outside the department’s reporting window.

Transcript Highlights:

• And even if they win, a refund does not make them whole. A concert is not a toaster.
• And even if they win, a refund does not make them whole. A concert is not a toaster.
• Symmetrical rounding will only be applied to the total transaction price after the application of taxes
• Symmetrical rounding will only be applied to the total transaction price after the application of taxes

Committee: Senate Business, Professions and Economic Development