Transcript Highlights:

• budget on health care when you include federal funds.
• That's another federal program that pays other portions of it.
• provisions and requirements in any type of congregate programs in order to claim federal funding.
• that obviously maximize federal funding, but also meet the intent of that federal legislation.
• Both of them were NIMH-funded research programs that showed...

Keywords: 996, all

Transcript Highlights:

• If, fiscal year 25, there was approximately $30 million lapse within that federal fund, okay, within
• that we're not even sure the funds can be used for that grant program.
• We set up all of these programs, and we appropriate funds for them for years, and now we're pulling the
• This will help Children's Division pull down some additional federal funding, working with the Office
• I think it's a good program, but it really can't be used in that fund the way it's being used.

Summary: The meeting was a lengthy conference committee review of multiple budget bills, with most of the discussion focused on House Bill 2 and related education funding. Members walked through numerous fund switches and appropriations tied to the foundation formula, blind pension, Capital Commission, Lottery Proceeds, and Classroom Trust funds. Several members urged fully funding the foundation formula or getting as close as possible, while others defended the compromise approach as a way to close the gap with available revenue. The committee also settled a number of education-related items, including child care grants, career ladder, school safety training, assessment pilots, Title I reallocation, parents as teachers language, child care subsidy language, and flex percentages on selected lines. The committee agreed to sign the House Bill 2 conference report after resolving the listed positions and language compromises. The committee then moved through House Bill 3 on higher education, agreeing to most Senate positions and a conference proposal directing the department to develop a new higher education funding model by December 1, 2026. Several members raised concerns about the timeline and whether the model would preserve separate funding buckets for two-year and four-year institutions, but the proposal was retained. House Bill 2004, covering transportation, was also reviewed, with compromises on items such as safety operations, low-volume roads, port funding, and several flex percentages. Members discussed the use of Capital Commission dollars and the status of road and port projects, and the bill was advanced with the agreed positions. House Bill 5, dealing with information technology and administration, generated substantial debate over a new Senate-added language proposal for OA/ITSD. Several members objected that the language was overly prescriptive, resembled a resolution, and could steer the state toward a specific cloud-computing direction or vendor; others said it was intended to create accountability and a plan for better oversight of IT spending. The committee left some items open briefly, then returned with a shorter conference proposal and agreed to distribute it. House Bill 7, House Bill 8, House Bill 9, and House Bill 2010 were also handled, with a mix of Senate, House, and compromise positions on public safety, veterans, agriculture, economic development, and behavioral health items. The committee recessed several times and repeatedly instructed members to sign the conference reports after the agreed changes were read into the record.

Transcript Highlights:

• funding divestment and facing Federal funding divestment and many<00:43:28.599> of<00:43:28.720
• I'm a program officer at Resources Legacy Fund, where I develop and implement strategies and projects
• <00:49:19.359> grant<00:49:19.680> program administer a Federal grant program administer
• > the the federal funding situation and the the federal funding situation and the impact<00:50
• Although I did spend the last two years in Washington, D.C., working on securing federal funds for a

Keywords: 910, house, all

Transcript Highlights:

• financial assistance programs, also known as federal awards or federal programs.
• However, OMB does not require all federal programs to be audited every year.
• In addition to the federal funding provided by the United States Department of Health and Human Services
• This money goes right back into the Medicaid Program Trust Fund. The federal...
• Into the Medicaid Program Trust Fund.

Summary: The Medicaid Subcommittee of the Legislative Joint Auditing Committee met to adopt the November 2018 minutes and receive a primer on the subcommittee’s role and Medicaid oversight in Arkansas. Legislative audit staff reviewed the subcommittee’s history and explained that Medicaid is audited annually through the statewide single audit because it is a high-risk federal program. Staff summarized recent audit findings, including weaknesses in eligibility and data-matching controls, improper use of Medicaid funds for partially non-Medicaid work, issues with incarcerated juveniles’ coverage, the absence of a Medicaid recovery audit contractor program exception request, reporting problems involving MFCU recoveries, and provider eligibility documentation concerns. Staff also noted a DHS departmental audit finding involving employees who improperly received benefits, which was referred for further action. The Department of Human Services gave an overview of Medicaid’s structure, eligibility, delivery systems, and budget. DHS described Arkansas Medicaid as covering about 850,000 people through fee-for-service, managed care, and premium assistance for the expansion population, and outlined major spending categories such as institutional care, long-term services, pharmacy, capitated payments, and supplemental payments. DHS also explained the difference between state plan amendments and waivers, and said it has a beneficiary-fraud unit that refers cases to local prosecutors. The Office of Medicaid Inspector General described its role in detecting and preventing fraud, waste, and abuse, distinguishing between suspensions for credible allegations of fraud and recovery actions for mistakes or overpayments. OMIG said it works with DHS and law enforcement, issues quarterly and annual reports, and has increased recoveries in recent years. The Attorney General’s Medicaid Fraud Control Unit explained that it prosecutes provider fraud criminally and civilly, can also handle long-term care neglect, abuse, and exploitation cases, and works with local prosecutors as special deputies. Committee members asked about court venue, provider suspensions, beneficiary fraud, education of providers, and the status of Medicaid expansion work requirements; DHS said it is preparing to implement community engagement requirements under HR 1 and will begin with a soft launch before full enforcement. No formal votes were taken beyond adoption of the minutes, and the meeting adjourned after questions were answered.

Transcript Highlights:

• federal funds for? federal funds for?
• are we on the federal funding for it?
• Although some of those may be split funded or they may be federally funded, we're only counting what
• Yeah, absolutely. >> Federal funds. >> Yeah, absolutely.
• Yeah, absolutely. >> Federal funds. >> Yeah, absolutely.

Keywords: 912, senate, all

Transcript Highlights:

• fund state revolving programs.
• This program assists states and communities by providing federal funds for cost-effective measures to
• This program assists states and communities by providing federal funds for cost-effective measures to
• federal funding, which is more than 25% of funding available nationwide.
• federal funding, which is more than 25% of funding available nationwide.

Summary: The House Committee on Natural Resources met to focus on flooding issues across Texas, with particular attention to South Texas and the recent catastrophic flooding in Central Texas. Chair Harris and Vice Chair Martinez emphasized that flooding is a statewide problem requiring continued legislative attention. The committee heard invited testimony from Hidalgo County Commissioner David Fuentes and Hidalgo County Drainage District No. 1 General Manager Raul Sassine, who described the March flood event in Hidalgo County, including more than 20 inches of rain, six deaths, over $100 million in local damage, widespread road flooding, and repeated shutdowns of Interstate 2 and its frontage roads. They argued that existing drainage systems are under capacity, that TxDOT projects must account for downstream drainage impacts, and that local governments have already invested heavily in mitigation through bonds and partnerships. Fuentes and Sassine also described the county’s long-term flood mitigation and water-reuse efforts, including the Delta region water management project, which would capture stormwater, runoff, and treated effluent, reduce flooding, and create potable water supply. They said the drainage district manages about 780 miles of channels and 1,100 acres of detention facilities, has used prior Flood Infrastructure Fund and GLO grants, and has ongoing applications for additional state and federal assistance. Members discussed the need for TxDOT coordination, emergency access on frontage roads, local “skin in the game,” and the possibility of combining flood control with aquifer recharge and water supply projects. Texas Water Development Board Executive Administrator Brian McMath then presented an overview of the state’s flood planning and funding framework, including the post-Harvey legislative changes that created the Flood Infrastructure Fund, the Texas Infrastructure Resiliency Fund, and the regional/state flood planning process. He summarized the first state flood plan adopted in 2024, noting that about one in six Texans live or work in known flood hazard areas and that regional plans identified 4,609 flood risk reduction solutions with an estimated cost of $54.5 billion. He also reviewed TWDB programs for flood grants, community assistance, flood insurance compliance, stream gauges, TexMesonet, flood mapping, and the TexasFlood.org viewer. Members asked about drainage fees, technical assistance, gauge placement, the relationship between flood maps and FEMA FIRMs, and whether flood mitigation funds could support aquifer storage and recovery or recharge projects; TWDB staff said such projects can be eligible if they include flood mitigation components, but direct technical assistance cannot be paid from Flood Infrastructure Fund dollars. The committee concluded by expressing interest in further study of combining flood mitigation with aquifer recharge, and then adjourned.

Transcript Highlights:

• And from my tenure already, some of the funding restrictions and loss of funding in our federal funds
• loss of funding in our federal funds coming into the department.
• So with us, we have a panel related to health-related federal funding and an update.
• It requires states to apply for funding. Program at the federal level.
• CMS requires that states fund at least some programs within each of their initiatives, regardless of

Summary: The committee met to hear introductory briefings from the Department of Health and the Health Care Authority on agency priorities, federal changes, and implementation challenges. Secretary of Health Dennis Worsham said his department’s listening tour is focused on strengthening governmental public health, improving health care quality and access, and responding to federal funding disruptions and the shutdown’s effects on programs such as WIC. HCA Director Ryan Moran said the agency is prioritizing coverage preservation, oversight of major contracts, affordability, behavioral health integration, rural health transformation, and internal agency operations. Members asked about licensure delays; Worsham said the backlog had been reduced from about four months to six weeks and should be caught up by January 1, with possible further process changes if needed. A major portion of the meeting focused on H.R. 1 and its Medicaid-related implementation. Governor’s health policy advisor Caitlin Stafford, HCA staff, and interim Medicaid Director Trinity Wilson said the state is working with DSHS, the Health Benefit Exchange, tribes, and other partners to prepare for eligibility changes, work requirements, and six-month redeterminations. They said the state expects up to 30,000 Apple Health enrollees could lose coverage under the law’s non-citizen eligibility changes, and that the work requirement/redetermination provisions could affect about 620,000 adults, with roughly 80,000 also enrolled in SNAP. HCA said it hopes to automate most verification, but about 15% to 20% of cases may require manual review, with technology costs estimated at up to $30 million. Staff also said they are trying to keep H.R. 1 implementation mostly in budget language rather than statute, and that communication and navigator support will be important to minimize confusion and coverage loss. The committee also received an update on the Rural Health Transformation Program created in H.R. 1. HCA said Washington submitted its application to CMS on November 5 after extensive stakeholder engagement, including more than 310 written comments, webinars, and tribal consultation. The application centers on six initiatives: rural hospital innovation, community care and prevention, tribal investments, technology and data, workforce development, and rural behavioral health. HCA said the state is likely to receive less than the full $200 million annual amount assumed in the federal program, and that an advisory committee may be created to help guide spending over the five-year program. Members asked about palliative care, small business impacts, and communication with enrollees; HCA said it expects to share outreach toolkits and that no 2026 statutory changes are currently anticipated, though that could change. The final panels covered organ donation and transplant services. Department of Health staff explained the 2023 “Lights and Sirens” law for organ transport vehicles, including licensing, driver qualifications, insurance requirements, and use of emergency lanes and traffic preemption; the department said one company is currently licensed and there have been no complaints. LifeCenter Northwest described the organ procurement process, the legal framework under the Uniform Anatomical Gift Act, and the rarity and complexity of deceased donation, noting Washington has seen strong growth in donation and transplants over the past decade. University of Washington Medical Center staff then outlined its transplant programs for kidney, liver, heart, lung, pancreas, and multi-organ transplants, describing the multidisciplinary evaluation and waitlist process and the coordination required with donor organizations and hospitals.

Transcript Highlights:

• Federal funds comprise...
• Federal funds comprise 52% of that funding, and there's very little discretion on the use of those funds
• If we do not do that, we are not eligible to earn those federal funds.
• drawdown of those federal funds.
• Our local services programs provide additional funding to expand long-term care alternatives that, again

Summary: The Health Care Budget Subcommittee met to organize the new term, take roll, and hear introductory presentations from the six agencies under its jurisdiction: the Agency for Health Care Administration, Agency for Persons with Disabilities, Department of Children and Families, Department of Elder Affairs, Department of Health, and Department of Veterans’ Affairs. The chair outlined the committee process, including assigning members to review agencies and make budget recommendations. Each agency head gave a high-level overview of their budget, staffing, major programs, and priorities, with recurring themes including Medicaid, long-term care, disability services, child welfare, mental health, aging services, public health, and veterans’ health care. Several agency leaders highlighted recent initiatives and funding priorities. AHCA emphasized Medicaid managed care, provider regulation, Hope Florida, hospital-at-home, and cancer-related efforts; APD discussed iBudget services, Hope Florida, a managed-care pilot, online applications, and forensic care costs; DCF focused on child protection, foster care, adult protective services, food/cash/medical assistance, mental health, and opioid treatment; Elder Affairs highlighted Alzheimer’s services, community-based senior care, guardianship, ombudsman services, and disaster outreach; DOH covered cancer innovation, maternal telehealth, cybersecurity, HIV/hepatitis/syphilis screening, and school nursing; and Veterans Affairs described benefits and health care access for veterans, long-term care, and federal reimbursement. Several speakers also raised concerns about rising costs, provider rates, disaster response, and access to services. The committee heard two public comments from disability advocates about Medicaid redeterminations affecting iBudget waiver recipients and provider payment delays. In response, AHCA and APD said they were coordinating on data sharing, early outreach, escalation processes, and efforts to reduce disenrollments and make recertification smoother. Members then asked questions about provider rates, opioid settlement spending, managed care quality measures, pediatric rare disease grants, group home transparency, senior outreach, ABA services moving into managed care, annual Medicaid recertification, veterans’ service utilization, waiting lists for elder services, and prevention spending. No formal votes were taken during the meeting.

Transcript Highlights:

• It is against, but it's federal law. Federal law, yes. But it's federal law. It's a federal law.
• , such as immigration and federal elections. that Texas taxpayers would ultimately fund. amendment concerns
• In fact, a federal pilot program was conducted by ICE. in starting in 2019 and it revealed that 30 percent
• From a fiscal standpoint, implementing this program would require significant taxpayer funding for a
• This bill would duplicate existing federal efforts and the redundancy would lead... of state funds and

Bills: HB256, HB1308, HB1554, HB1743, HB2308, HB2351, HB2858, HB3676, HB3784, HB4312, HB4552, HB4823, HB4852, HB5007, HB5010, HB5520, HB5524, HCR19, HB256, HCR19

Keywords: E-verify, employment verification, illegal employment, state contracts, government entities, license suspension, immigration compliance, state grant funding, E-Verify, compliance, penalties, immigration, government contracts, employee status, state contractors, E-verify program, legally present, employment practices, legal services, public money

Transcript Highlights:

• fund, restricted funds. >> Federal funds. >> Okay.
• federal fund, restricted funds. funds. funds.
• >> Federal<00:06:39.680> funds. >> Federal funds. >> Federal funds.
• talking about federal funds then? talking about federal funds then?
• federal funds shrink? federal funds shrink?

Keywords: 958, all

Summary: The committee first approved the October 13 minutes and then moved through a large agenda of contracts and agreements, including a deferred list from the September 2025 agenda. Members questioned several agencies about the purpose, cost, and duration of the items before them, with repeated motions to consider the contracts reviewed without objection passing by roll call. The Office of Energy Policy and Energy and Environment Cabinet presented a solar-and-battery program. Members asked about panel and battery lifespan, warranty coverage, who would pay for replacement or disposal, and whether the program made sense in Kentucky. The agency said panels and batteries generally last 25 to 30 years, warranties would cover replacement during the warranty period, EPA guidance would govern disposal, and federal funds would cover program expenses. Officials estimated the program could reduce participating homeowners’ utility bills by about 70%, with a minimum required savings of 20%. The Department for Community Based Services explained a new vendor contract for SSI initial and redetermination work for children in out-of-home care, saying the work is federally required, the department lacks in-house capacity, and the contract replaced a prior vendor after an RFP protest and rebid. The Department of Highways described umbrella traffic engineering contracts for smaller highway safety projects, noting they are used for spot improvements and are nearing full utilization. The Kentucky Historical Society said its contract funded a temporary exhibit tied to 250th anniversary programming, and the Board of Medical Licensure discussed an amended audit contract, explaining that annual audits were adopted after an auditor’s recommendation and that the board is funded by state allocation plus fees and fines. The Department for Natural Resources/Abandoned Mine Lands gave the most extensive presentation, describing a $5 million engineering services contract as part of a much larger workload increase driven by Bipartisan Infrastructure Law funding, with projects prioritized by citizen complaints and safety impacts; the agency said the contract supports design and oversight for community-scale mine reclamation projects that exceed in-house capacity.

Transcript Highlights:

• And the latest that we’re seeing is on government funding from the federal level.
• and what they did to those programs and federal facilities.
• We receive a lot of the funding from the federal government; the PacSurf fund goes to fund CMP projects
• The only source of funding right now comes from PaxSurf, which is federal funding administered through
• recognition of the federal funding cuts.

Summary: The Joint Committee on Fisheries and Aquaculture held its annual State of the Fishery forum, focusing on salmon, Dungeness crab, kelp, ocean conditions, and related aquaculture and committee reports. Opening remarks from committee leadership emphasized climate impacts, reduced federal NOAA support, state investments through Proposition 4, coastal resilience funding, and the importance of fisheries to rural economies and tribal communities. Secretary of Natural Resources Wade Crowfoot described a decade of drought and climate stress, highlighted progress such as Klamath River dam removal, wetland restoration, and the state’s salmon strategy, and warned that federal funding uncertainty and staffing cuts could undermine restoration and fishery recovery efforts. Senator Cortese raised concerns about illegal cannabis cultivation damaging riparian habitat and water flows, and both Crowfoot and Fish and Wildlife Director Bonham said enforcement against illicit grows remains a major environmental priority but is constrained by resources. Director Bonham provided a broad update on California fisheries, reporting encouraging signs for salmon after several difficult years, including improved ocean conditions, stronger returns in some runs, and successful short recreational openings in 2025. He also noted major challenges, including reduced federal hatchery production at Nimbus, ongoing uncertainty around winter-run and spring-run recovery, and the need for continued habitat restoration, monitoring, and hatchery investment. On Dungeness crab, Bonham said the fishery remained valuable but constrained by whale entanglement risk, warming ocean conditions, and domoic acid concerns; he described new marked-line distribution, ropeless and alternative gear trials, and ongoing aerial and vessel monitoring. He also said the department’s unified cannabis enforcement task force had served numerous warrants and seized large amounts of illegal cannabis, but more funding is needed for sustained operations. In the salmon panel, Yurok Tribe fisheries director McCovey said the Klamath still faces low run sizes, climate-driven warming, wildfire impacts, and federal uncertainty, but he pointed to dam removal, restoration work, and AB 263’s river-flow protections as major advances. PCFFA president Bradshaw stressed that the three consecutive salmon closures have devastated coastal communities and argued for major reinvestment in aging Central Valley hatchery infrastructure and better broodstock management at Fall Creek. CalTrout’s Schneider said salmon remain at risk statewide, but cited Prop 4, habitat reconnection, floodplain restoration, improved water management, and monitoring as the main tools for recovery. In the crab panel, CDFW’s Schumann reported that the 2024–25 season produced record prices per pound and about $55 million in value despite delays and trap reductions, but he warned that three confirmed whale entanglements and elevated whale presence could force a conservative opener for 2025–26. PCFFA’s Domrash supported marked line, alternative gear, and a new gear-recovery network, while also criticizing the current ramp system as a response to a problem not fully grounded in science.

Transcript Highlights:

• So, the Partners in Housing Program, underneath the Housing Champions Fund, is in state law and had been
• We did not put an appropriation into the budget to fund the program.
• So, the Partners in Housing Program underneath the Housing Champions Fund is in state law and had been
• We did not put an appropriation into the budget to fund the program.
• funds out of the renewable energy fund. funds out of the renewable energy fund.

Keywords: 928, house, all

Summary: The committee opened a work session on 17 retained bills and moved through several measures, often with motions to ought to pass or inexpedient to legislate. House Bill 54, allowing alternative treatment centers to operate for profit, was supported as a way to improve efficiency and potentially lower costs for medical cannabis users, and it was recommended OTP by a 9-0 vote. House Bill 97, an appropriation for wastewater infrastructure, drew mixed views: supporters said the Senate’s reduced funding still met the bill’s intent, while opponents argued the funding was inadequate for critical infrastructure needs; the committee voted 5-4 to ITL. House Bill 111, extending the Right to Know Ombudsman and exempting certain assistance from unauthorized practice of law, was recommended ITL 9-0. House Bill 197, concerning state payment of a portion of local retirement contributions, was discussed as a recurring issue; members noted an amendment could fund it starting in fiscal 2027, but the committee ultimately voted 5-4 to recommend the bill itself rather than ITL. House Bill 215, requiring landfill permit applicants to submit a harms-and-benefits report, was amended to narrow its scope to future privately owned landfills only; the amendment and the bill as amended both passed 9-0. House Bill 216, on workers’ compensation credit toward retirement service, was ITL’d 9-0 after the sponsor said the proposal was too open-ended and could affect unknown numbers of people.

Transcript Highlights:

• to fund an approved program.
• to fund an approved program.
• Uh, they are federally funded.
• I do have federal funds fedally funded.
• five general funded, 15 federal funded. five general funded, 15 federal funded.

Keywords: 1191, senate, all

Transcript Highlights:

• <00:05:17.000> the<00:05:17.160> SGOs federal program actually allows the SGOs federal
• You now are in that program and you have access to EFA funding.
• > maybe not funding us additional program, maybe not funding us additional program, maybe we<01
• watching out for the federal programs.
• are watching out for the federal are watching out for the federal programs. programs. programs.

Keywords: 1191, senate, all

Transcript Highlights:

• The Continuum of Care program has traditionally been a very stable source of annual federal funding through
• The Continuum of Care program has traditionally been a very stable source of annual federal funding through
• forthcoming if federal funding will be forthcoming if federal funding will be forthcoming for<00:
• > funding,<00:47:38.079> which Federal continuum of care funding, which Federal continuum
• We to jeopardized federal COC funding.

Bills: HF3425, HF3424, HF1385

Keywords: supportive housing, grants, housing assistance, funding, Minnesota Statutes, eviction, rent, nonpayment of rent, landlord-tenant, residential tenant, notice to quit, unlawful detainer, housing, lease violation, late fees, rental assistance, legal aid, tenant rights, Minnesota Statutes 504B.321, pre-eviction notice

Transcript Highlights:

• , and the remaining amount is federal funds.
• and a $6.6 million federal fund investment.
• We have been unable to find federal funding a state responsibility to put these Lead Safe programs, these
• Three of them are from the general funds, and one of them is to accept some federal funds.
• These are federal funds, and we're asking to accept $525,000 in federal funds.

Keywords: 928, house, all

Transcript Highlights:

• funded program, and individuals who participate in that will be authorized a ribbon.
• The Homeland Response Force Ribbon, the HIRF, as it's called, is a mission that's federally funded.
• But I think that's the right way to structure it, and that the GI Bill is designed, the federal program
• You know, we kind of had discussion about it, but it's a dissonance with what the federal program is
• And maybe Ameren even needs that for the federal cyber program.

Keywords: 959, house, all

Transcript Highlights:

• So this program has been fully funded since 1995, and I will start by saying that it will be fully funded
• the federal fully funded from the federal government.<00:03:25.760> Um<00:03:26.800> to
• funded by the<00:03:58.720> federal<00:03:59.040> government.
• But please have the federal government fund the BIA.
• Have the federal government fund the Shoshone tribe for the treaty.

Keywords: 916, all

Transcript Highlights:

• Chair: Do you guys have any federal funds that come down to do enforcement?
• safety do you guys have any federal safety do you guys have any federal funds<00:26:34.760> that
• that is a a fund that research program that is a a fund that also<00:57:48.119> has<00:57:48.319
• funds it's a they are getting federal funds it's a match<00:58:26.960> so<00:58:27.240> every
• some point we can leverage other Federal some point we can leverage other Federal programs<00:58

Keywords: 912, senate, all

Summary: The Senate Committee on Economic Development and Tourism heard testimony on several bills, with much of the discussion focused on Enterprise Zones and related economic development measures. On SB 125, the committee heard support from DBEDT, the Department of Taxation, the Tax Foundation of Hawaiʻi, the Hawaiʻi Farm Bureau, and the Farmers Union. Members questioned how the bill would affect job-creation requirements and learned that existing companies and new companies are treated differently under the program, with existing companies generally subject to a 15% annual employment increase and new companies to a 10% increase, while the bill would extend the program period from seven to nine years. DBEDT also said the program has been effective, citing 1,162 jobs created or maintained at a cost of about $1.2 million, and noted that agriculture, manufacturing, and wholesaling are the main sectors involved. The committee then took up SB 729, also relating to Enterprise Zones, which would expand eligibility to better accommodate local manufacturers and value-added businesses that sell directly to retail rather than only wholesale. Testifiers from the Holua Collaborative and Hawaiʻi Farm Bureau supported the measure, saying it would help small manufacturers and agricultural producers add value and adapt to internet-era sales patterns. A committee discussion clarified that the bill would add value-added processing as an allowable activity within the zones, and DBEDT explained that the current rules were written for a wholesale-dominated market. The Attorney General’s office also testified, raising a supremacy clause concern and recommending language changes to avoid conflict with federal law. On SB 129, relating to labeling requirements for fish, the Attorney General and the Department of Agriculture both raised concerns about federal preemption and enforcement. The AG explained that federal law governs fish labeling but includes an exception for processed fish, and recommended narrowing the bill to processed fish and defining that term to fit the federal carve-out. The Hawaii Longline Association supported the bill but suggested excluding canned tuna while including products such as poke, sashimi, and sushi. The Department of Agriculture said it does not currently enforce this kind of labeling requirement and would need to determine whether another agency should handle enforcement. The committee also heard SB 581, which would establish an aerospace and aeronautics development program within DBEDT. Testimony was generally supportive, but members pressed for a fiscal estimate, and the bill’s sponsor said a prior version of the office had operated on about $400,000 annually with a small staff. No votes or final committee actions were taken during the portion of the hearing provided.

Transcript Highlights:

• So the federal government makes available operating under what we call our 5307 program.
• Over this last year or two, were there any federal funds missed out on?
• So first, we’ll talk about the Vantis Federal Radar Data Enclave Program.
• We secured FAA approval to go live with the federal radar data program.
• the funding structure for this program.

Summary: The committee first received a general fund and revenue update from the Office of Management and Budget. Staff reported that the state started the biennium about $176 million above prior estimates, but year-to-date revenues were now running below legislative forecast, mainly due to lower individual income tax and sales tax collections. The budget stabilization fund was above its cap, the legacy fund continued to grow, and oil revenues were slightly above forecast overall. Members also asked about federal funding uncertainty and mineral leasing variability, and OMB said agencies would be asked to address potential federal reductions case by case during budget preparation. The committee then reviewed compliance reports and trust fund analysis materials, followed by a bill draft for a fixed-route city transportation grant program. Testimony from transit officials in Fargo and Minot supported the proposal, saying state aid would help match federal transit funds and support operations, but members raised questions about the funding source, fare structures, and whether the program should be limited to the current four fixed-route cities or allow future eligible cities. Several members asked for more time to study the formula and possible funding options before moving the bill forward. Next, the committee approved a bill draft repealing obsolete language related to a proposed North Dakota-South Dakota bi-state authority. Staff explained the provision had been unused for about 30 years and that existing law likely already allowed joint powers agreements without the specific language. The committee voted to adopt the repeal bill draft. The Department of Commerce and the Northern Plains UAS Test Site then provided an update on uncrewed aircraft system initiatives, including the Vantis radar data enclave, the drone replacement program, and future revenue models. Officials said North Dakota had received FAA approval to operate the radar data pathfinder, had begun replacing non-compliant drones from restricted foreign sources, and was working on phased procurement and cost-recovery plans. Members asked about deadlines, funding, supply-chain issues, and how the system would be used; staff said the federal restrictions were already in effect and that Vantis was being positioned as infrastructure for future beyond-visual-line-of-sight operations. Finally, the Department of Corrections and Rehabilitation presented on the design of a new minimum-security prison and on a reentry housing task force. The new facility is planned for the penitentiary grounds, with a reduced estimated cost of about $263 million, 600 beds initially, possible expansion to 732 beds, and completion projected around 2031 if funded in 2027. The reentry housing task force described a data-driven effort to identify housing needs for people leaving incarceration, with the goal of reducing homelessness and recidivism through targeted housing support and possible subsidies. Members asked about staffing, site selection, housing duration, and whether employment and transportation needs would be included in the assessment.