Transcript Highlights:

• Okay. >> So what is the error rate right now and what are you proposing that the error rate is going
• >> Our error rate is currently at 7.57%. >> Our error rate is currently at 7.57%.
• >> I cannot give projections, but I can speculate it will only increase if our error rate is over 8%.
• costs good error rate and not increase costs good error rate and not increase costs down<01:16:38.640
• increasing adequacy.

Keywords: 1189, house, all

Summary: The meeting covered two committee of conference items. On HB 1260, the House and Senate debated a Senate amendment dealing with sealing certain divorce-related financial records. House members argued the amendment conflicted with the Keane Sentinel decision and would improperly flip the burden of proof on public access to court records, raising constitutional concerns under the state constitution’s open government and privacy provisions. Senate members responded that the privacy amendment and modern conditions support more protection for sensitive financial information, especially in limited uncontested divorces, but several members agreed the issue should be studied in a separate bill with a full hearing next year rather than resolved in conference. The committee ultimately voted unanimously to have the Senate recede and pass HB 1260 in the form originally passed by the House, preserving the underlying bill without the Senate amendment. The committee then took up HB 1574, which extends free and reduced-price breakfast and lunch programs and provides funding for SNAP administrative costs. The main dispute was the Senate’s addition of $4.4 million for SNAP administration. Senator Gray and DHHS officials said federal changes will shift more administrative costs to the state and that underfunding administration could raise the SNAP error rate, which could trigger future federal penalties and larger state costs; DHHS reported a current error rate of 7.57%, below the national average, and said a higher error rate could cost the state roughly $12 million in a partial fiscal year and nearly $16 million in a full year. Representative Papovich said he understood the department’s needs but was reluctant to support the bill as amended, noting the Senate language resembled a prior bill that had already failed in the House. The discussion ended with the committee still considering the Senate amendment, with members weighing the immediate appropriation against possible future costs.

Transcript Highlights:

• seen significant increases.
• cities and a 48% increase in anti-Jewish in 2023.
• Hate crimes in California have increased, and xenophobic rhetoric has increased, and this is affecting
• is only going to increase.
• is only going to increase.

Summary: The Select Committee on Hate, Racism, and Xenophobia met to examine the scope of hate activity in California and hear from state agencies, commissions, and community organizations. The chair opened by framing hate as a persistent crisis affecting many protected groups, and Assembly Member Gonzalez briefly joined the committee. The first panel included the California Department of Justice and the California Commission on the State of Hate, both of which presented recent data and policy recommendations. The Department of Justice reported that in 2024 California saw 2,023 reported hate crime events, 2,568 hate crime offenses, and 2,491 victims, with anti-Black bias remaining the most common category, followed by anti-Jewish and anti-Latino bias. DOJ also said referrals for prosecution increased, and it described its hate-crimes guidance, rapid response protocol, and multilingual resources. The Commission on the State of Hate said hate is undercounted in law enforcement data and cited a survey suggesting about 2.6 million Californians experienced at least one hate act in a year, including more than half a million potentially criminal incidents. It recommended permanent data infrastructure, mandatory law enforcement training, and continued funding for community-based prevention and victim support. The committee then heard testimony from representatives of the NAACP, LULAC, Jewish Public Affairs Committee of California, CHIRLA, Asian Americans Advancing Justice Southern California, CARE, Equality California, and the Racial Equity Commission. Witnesses described systemic racism, anti-immigrant enforcement, antisemitism, Islamophobia, anti-Asian bias, and anti-LGBTQ+ hate, often linking these harms to political rhetoric, social media, and federal actions. They urged the Legislature to fund programs such as California vs. Hate, Stop the Hate, nonprofit security grants, language access, school and mental health supports, and legal assistance, while also protecting civil rights, due process, and free speech. No formal votes or committee actions were taken during the hearing, but members indicated they would request additional recommendations and continue the discussion in future hearings.

Transcript Highlights:

• My bill implements that rate study and uses a health plan assessment to pay for those increases.
• services reimbursement rates should be. services reimbursement rates should be.
• reim or the federal reimbursement rates reim or the federal reimbursement rates for<00:13:38.560
• It's different entities that are gaining increased reimbursement rates in both bills.
• In addition, although the goal of the tax is to raise funds and to increase Medicaid rates, this proposal

Keywords: 1187, senate, all

Transcript Highlights:

• Arizona families feel it through increased tuition and increased property taxes.
• Arizona families feel it through increased tuition and increased property taxes.
• However, I believe that the funding has not been increased for inflation rates.
• Provider rate increases. Through the chair—oh, sorry, Chairman. Thank you, Senator.
• Provider rate increases have definitely been something that has been requested.

Summary: The joint House and Senate Appropriations committees met to hear the FY 2027 budget package, beginning with the General Appropriations Act (HB 4154/SB 1847). Staff outlined the overall budget, including one-time fund transfers, lump-sum reductions, funding for state employee health insurance, school facilities, corrections, flood and wildfire relief, education and child care, and other ongoing and supplemental items. Members briefly discussed the absence of a requested $1.5 million for the oversight office, but the chair said no amendments would be taken in committee and that only limited technical changes were likely later in the process. Public testimony on the feed bill was largely supportive but focused on specific funding concerns. Testimony highlighted school safety funding, Alzheimer’s services, small business tax expensing provisions, disability oversight for group homes, county use of opioid settlement dollars, adult education/community college funding, victim notification funding, and ESA oversight. Several speakers praised the budget for funding DDD and other services, while others opposed or sought changes to items such as the COMIT group home monitoring program, Maricopa Community Colleges’ lack of operating aid, and a possible cut to the victim notification program. The chair repeatedly emphasized that changes to the negotiated budget would be difficult and should be routed through leadership. The committee then moved quickly through the remaining budget reconciliation bills. Staff summarized bills covering amusement and wagering, capital outlay, commerce, criminal justice, environment, health care, higher education, human services, and K-12 education. Notable provisions included continued wagering assessments, highway and building renewal funding, defense innovation and economic development changes, corrections and wrongful conviction provisions, groundwater and water banking measures, health insurance oversight and opioid settlement provisions, higher education funding and ABOR operating caps, SNAP and housing trust fund changes, and a 2% inflation increase for K-12 formula components. The K-12 bill also included a biometric school safety pilot and a child sexual abuse prevention pilot. No votes were taken in the portion provided, and the chair indicated the committee would continue through the remaining bills.

Transcript Highlights:

• rate of 5.3%.
• increasing the increasing CDC childhood increasing the increasing CDC childhood immun<01:49:52.800
• As we continue on that trajectory, we would expect the rate of exemptions to continue increasing, if
• And as we have a higher unvaccinated rate, the risk just continues to increase now, seeing that upward
• rates and exemption rates uh vaccination rates and exemption rates it<04:10:17.080> is<04:10:

Keywords: 910, house, all

Summary: The House Committee on Judiciary and Hawaiian Affairs heard several measures, beginning with HB 194, which would designate May 22 as Maritime Day. Testimony from labor, health, and community groups was in support, and the committee later recommended passage of the bill as is, with several members voting yes and some reserving or being excused. HB 458 would designate April 27 as Brother Joseph Dutton Day; the Department of Accounting and General Services, the Joseph Dutton Guild, and a descendant all supported it, and the committee recommended passage with technical amendments. HB 957 would designate the first Friday in May as Lā‘au Day; support came from the Office of Hawaiian Affairs, the Hawaii Farm Bureau, and many individuals, and the committee recommended passage as is. HB 345 would establish the ʻōpae ula as the state shrimp to promote awareness and protection of anchialine ecosystems; DLNR, Kuaʻāina Ulu ʻAu, and other supporters testified, and the committee recommended passage with technical amendments. The committee also heard HB 901, which would allow public charter schools to appeal directly to the Board of Education on certain operational, governance, or funding matters. The Attorney General and the Public Charter School Commission offered technical comments and suggested amendments, while the commission described its current monitoring and renewal process and said it works closely with schools over the life of a charter contract. Members raised concerns about whether the bill would shift too much work to the Board of Education, and one member voted no when the committee later moved the bill with the Attorney General’s amendments. HB 1066 would add Head Start-related ex officio members to the Early Learning Board; the Early Learning Board and the Executive Office on Early Learning supported it, explaining the changes were needed to align with the federal Head Start Act, and the committee moved it forward without opposition. HB 1069 would add voting members from the Department of Education and Board of Education to the School Facilities Authority Board. DOE and the School Facilities Authority supported the change as a way to strengthen collaboration, though questions from members focused on the current communication process between the agencies. HB 1343 would require the Board of Education to adopt a policy banning student phone and related device use during school hours; the committee noted written testimony in support and then moved to decision-making. At the end of the meeting, the committee adopted recommendations to pass HB 194, HB 458 with technical amendments, HB 957, HB 345 with technical amendments, HB 901 with amendments, HB 1066, HB 1069, and HB 1343.

Transcript Highlights:

• We know that when this no-show fee was implemented, we saw our no-show rates drop.
• We know that when this no-show fee was implemented, we saw our no-show rates drop.
• We know that when this no-show fee was implemented, we saw our no-show rates drop.
• We know that when this no-show fee was implemented, we saw our no-show rates drop.
• We know that when this no-show fee was implemented, we saw our no-show rates drop.

Keywords: 1183, house

Transcript Highlights:

• That's a 1,900% increase.
• , 90% live discharge rates.
• Are you aware of the turnover rate in Texas for home caregiver rates right now?
• rates.
• And for our eligibility error rate, they found an error rate of 1.1%.

Keywords: 1185, senate, all

Transcript Highlights:

• California IOU, investor-owned utility electricity rates, are more than 50% higher than rates charged
• I also want to highlight that PG&E has specifically come even this past year for rate increases specifically
• in electricity rates.
• and electricity rates.
• increases. ...on the folks that result in, you know, rate increases, frankly.

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on utility rates, wildfire safety, carbon capture, methane reduction, large energy users, low-income energy programs, and clean energy supply chains. Early items included SB 613, which would direct state agencies to prioritize reducing methane emissions from imported fossil fuels, and SB 614, which would allow California to move forward with carbon dioxide pipeline safety rules and potentially lift the state’s moratorium on new CO2 pipelines. Both bills drew support from advocates and industry-related witnesses, with no opposition registered at the time they were presented, and the committee indicated it would vote once quorum was established. After quorum was called, the committee took up SB 57, which would require the Public Utilities Commission to establish tariffs for large energy users such as data centers to prevent cost shifts to other ratepayers and address stranded infrastructure costs. Supporters argued the bill would protect affordability and encourage clean energy use, while opponents, including utilities and business groups, warned it could create uncertainty and interfere with existing regulatory processes. The committee also heard SB 256 on wildfire mitigation and emergency response, including undergrounding, PSPS communication, and removal of abandoned lines; supporters emphasized the need for stronger action after recent fires, while utilities raised concerns about duplicative requirements and public disclosure of sensitive infrastructure information. Both SB 57 and SB 256 were approved on roll calls. The committee then heard SB 647, which would expand and standardize oversight of low-income energy savings programs and performance metrics, with strong support from community advocates and some neutral or “tweener” positions from utilities that sought further work on data collection and implementation. SB 787 followed, proposing a state strategy to coordinate supply chains and workforce development for clean energy industries including EVs, building decarbonization, and offshore wind; it received broad support and no opposition. The committee also considered SB 332, a study bill on utility ownership models and affordability reforms, which drew strong support from consumer and climate advocates but opposition from utilities and business groups concerned about bias, investor signals, and executive compensation provisions. The consent calendar was later approved, and several bills were reported out with votes or held open for absent members to add on.

Transcript Highlights:

• The voter approval tax rate for a specific purpose.
• Taxpayers have raised concerns that taxing units repropose bond propositions and tax rate increases following
• There was built into that bill, uh, a what we call an unused increment rate.
• Uh, and that rate allowed a taxing entity that adopted a rate below, uh, the cutoff to be able to bank
• The unused increment rate gives taxing entities the ability to recapture taxing capacity.

Transcript Highlights:

• The agency's total turnover rate has increased from 9.1% in FY 2020 to 15.1% in FY 2023.
• It began increasing again in fiscal year 2023 and is projected to continue increasing through fiscal
• It began increasing again in fiscal year 2023 and is projected to continue increasing through fiscal
• rates, their grievance rates, and looking at all of that firsthand to myself.
• Right now, our daily rate is just a flat daily rate across the board for all youth.

Bills: SB 1

Keywords: campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards

Summary: The Senate Finance Committee heard a presentation from the Legislative Budget Board on the Texas Department of Public Safety’s Article 5 budget. LBB recommended $3.7 billion in all funds for 2026-27, a 5.2 percent decrease from the base, while FTEs would rise by 856.7. Major items included funding for driver license services, DPS facilities, troopers and recruit schools, crime labs, vehicle and aircraft operations, border security, and rider changes. The committee also reviewed DPS exceptional items not included in the recommendation, including additional staffing, technology, and facility requests. Members focused heavily on driver license operations, criticizing long wait times, call abandonment, and repeated staffing increases without clear process improvements. LBB said the agency’s call-answer rate was about 9 percent in fiscal 2024, with average hold times around 34 minutes, later reduced to roughly 22-25 minutes. Senators questioned whether more FTEs alone would solve the problem and urged a broader efficiency study and better use of technology. DPS officials said they were pursuing process changes, including appointment-system upgrades, online pre-population of forms, and remote issuance options, while noting that Real ID requirements and population growth continue to drive demand. DPS leadership then outlined the agency’s priorities: completion of the Williamson County training academy, recruitment and retention of troopers, capital needs for vehicles and aircraft, and expanded responsibilities at the Capitol complex and the Alamo. Officials said the new trooper funding would help address staffing shortages, public safety, and border operations, and that overtime and deployment patterns had been adjusted to reduce burnout and improve flexibility. They also discussed Operation Lone Star, saying DPS spending is largely overtime, travel, and fuel, and that the agency continues to coordinate with federal partners while awaiting clarity on possible federal reimbursement for border security costs. Senators also raised concerns about oilfield theft, cartel activity, high-speed pursuits, bilingual pay, and the Texas Ranger Hall of Fame and Museum, and DPS said it would follow up on some of those issues.

Transcript Highlights:

• <00:18:32.880> increase<00:18:33.520> uh<00:18:33.679> pro that uh a rate increase
• So under the the current rate increase.
• c> type penalties, rate increases or other type penalties, rate increases or other type of<01:10:
• <01:11:32.560> increases<01:11:33.679> um or the prohibition of rate increases um or
• Thank you, Chair. or rate increases that are not based on or rate increases that are not based on sound

Bills: SB2936, SB2850, SB2851, SB2521

Keywords: accessible parking, disability, kupuna, public accommodations, small business exemptions, Hawaii Revised Statutes, parking permit, blind, deaf, accessibility, deafness, traffic safety, law enforcement, vehicle registration, communication, emergency services, commercial driver's license, first responders, public safety, authorized emergency vehicle

Summary: The joint hearing covered House Bill 251, which would require hospitals to report costs associated with Medicare and uninsured patients, and House Bill 1875, which would expand protections for gender-affirming health care services. On HB 251, the Department of Health said it supported the intent but described the bill as complicated and potentially impractical as drafted because the department lacks the expertise to produce the required analyses without outside help. Hawaii Health Systems Corporation echoed those concerns, while the Queen’s Health System said it was willing to work with the department to provide the information. In committee discussion, officials explained that hospital support in Hawaii includes public hospital appropriations and the provider tax program, which uses hospital and nursing home contributions to draw federal matching funds; a department witness estimated the net benefit at about $150 million for hospitals and $20 million for nursing facilities, though exact figures would be provided later. On HB 1875, the Insurance Division testified with concerns that the bill’s language on prohibited actions by malpractice insurers was broad and vague, and that a rate-increase prohibition could conflict with actuarially based insurance pricing. The division also noted it was not the primary enforcement agency for the statute. In contrast, many testifiers strongly supported the bill, including the Hawaii State Commission on the Status of Women, the Hawaii State LGBTQ+ Commission, the Hawaii Public Health Institute, PFLAG Oahu, the ACLU of Hawaii, the Drug Policy Forum of Hawaii, the Hawaii County Democratic Party, and others. Supporters argued that gender-affirming care is medically necessary, evidence-based, and protected by privacy and bodily autonomy principles, and that the bill would protect patients and providers from outside political interference. No votes or final committee actions were taken during the portion of the hearing provided.

Transcript Highlights:

• contracts have is are there any rate contracts have is are there any rate increases<00:28:56.360
• > and for rate increases for residential and for rate increases for residential and that<00:29
• here there's no rate increase written in here there's no rate increase written in here for<00
• We talked about the provider rates and whether there was an increase for the rates, and the rates were
• <05:15:16.920> increase uh in supporting uh a 3% rate increase uh in supporting uh a 3% rate

Keywords: 928, house, all

Summary: The House Finance Committee’s Division 3 held a public work session on the Behavioral Health budget on February 27, 2025. The chair opened by explaining the schedule, materials, and deadlines for the budget process, and noted there would be no motions or votes in the division that day. Division of Behavioral Health Director Ktia Fox and DHHS CFO Nathan White then walked the committee through the division’s mission, structure, and budget materials, describing the division’s four bureaus: Mental Health Services, Children’s Behavioral Health, Drug and Alcohol Services, and Homeless Services, along with the policy unit. They emphasized the division’s role in oversight, technical assistance, quality assurance, contracting, and the continuum of care from prevention and early intervention through crisis and residential services. Much of the discussion focused on major programs and funding lines, including the 988 Lifeline contract with Headrest, a technical assistance contract with UNH, Medicaid pass-through payments to New Hampshire Hospital and Glencliff, crisis response services, cold-weather homeless responses, housing supports, and the children’s system of care. Members asked about the UNH contract, the 988 program, crisis stabilization centers, and the peer certification program; Fox explained that the peer certification is a training-and-credentialing pathway for people with lived experience to enter community-based behavioral health work, not a volunteer program. The committee also discussed the “Choose Love” program, which Fox said was created after the Sandy Hook tragedy to build resilience and strength-based emotional regulation in schools and communities. On the children’s side, Fox described the system of care account as the place where many contracted services are budgeted, including community mental health centers, care management entities, rapid response services, and residential programs. Members asked about temporary staffing, and Fox said roughly $500,000 in temporary staff costs shown in the current year would not be spent next year because the money came from a nonlapsing appropriation in HB 1573 for oversight of children’s residential services. She also said provider rate increases were a prioritized need but were not funded in the governor’s current budget, and that the Children’s Behavioral Health Resource Center was not funded, resulting in about a $1 million reduction. The session ended while the division was still moving through the children’s behavioral health slides, including questions about the Fast Forward high-fidelity wraparound program and medication management.

Transcript Highlights:

• Correct me if I'm wrong, but the rates you have here are your minimal rates that we see for like the
• One position is undergoing review to adjust the hiring rate.
• You have to look at our separation rate. We have a hard time getting below a 10% rate.
• I know last session, I believe we discussed vacancy rates.
• and benefits rich and rate poor.

Transcript Highlights:

• For labor trafficking, the verification rate last year, while those percentages are low, it did increase
• , it did increase to 17% as a verification rate. to 17% as a verification rate we have been really trying
• The safe houses did increase the bed rate from 33 to 47 last year.
• So that was an increase.
• Another lead agency increased reimbursement rates to foster parents caring for CSE youth.

Summary: The Committee on Children, Families, and Elder Affairs received three presentations and took no bill votes. The Department of Children and Families gave an extensive update on human trafficking prevention and services, describing Florida’s statutory framework, hotline and investigation data, placement options such as safe houses and safe foster homes, new adult safe house certification rules, expanded screening tools for vulnerable adults, and prevention efforts including youth-led outreach and training. Members asked about whether current funding is sufficient, how DCF addresses grooming and re-victimization in residential settings, and how long youth typically remain in safe-house placements; DCF said funding is only one part of the support system, that families and youth receive prevention resources even when allegations are not substantiated, and that placement length varies by child. OPPAGA then presented its 2024 annual report on commercial sexual exploitation of children. The report found that verified CSE victims slightly declined in 2023, with Broward, Miami-Dade, Duval, Hillsborough, and Escambia among the highest-prevalence counties. Most verified victims were community youth rather than children already in care, though dependent youth had higher rates of prior maltreatment. OPPAGA also reported continued concerns about limited placement capacity, especially for less restrictive Tier 1 safe houses, and service gaps such as the need for survivor mentors. Its recommendations focused on expanding placement options, improving data collection, and strengthening collaboration to support survivor mentors. Finally, DCF presented the Step into Success pilot program for current and former foster youth ages 16 to 26. The program combines workforce education, professional development, and paid internships with mentor support; the first cohort launched in 2024 with 15 participants, all of whom secured placements, and the department reported strong satisfaction and early outcomes. Committee members asked about scalability, costs, and whether the model could be moved beyond DCF-run operations into community-based providers. DCF said the program was designed to be scalable, currently costs about $500,000 annually for the pilot, and could be expanded statewide with additional funding and partner support. The committee adjourned after the presentations.

Transcript Highlights:

• rates right now.
• increases for our citizens. increases for our citizens.
• . rates. rates.
• And if there's not enough money to fund our PSIG grant, we will have to undertake significant rate increases
• If there's not enough money to fund our PSIG grant, we will have to undertake significant rate increases

Bills: HF4710, HF4055, HF3848, HF3989, HF4599, HF3767, HF3592, HF3575, HF3574, HF3543, HF4606, HF4489, HF3891, HF3438, HF3811, HF3400

Keywords: capital investment, water infrastructure, sewer systems, public funding, municipal development, Eveleth, wastewater treatment, state bonds, environmental compliance, infrastructure, bonds, economic development, local government, transportation, intersection improvements, Lake Elmo, HF4599, St. Joseph, Minnesota bonding bill, bond proceeds fund

Transcript Highlights:

• We observed an extraordinary increase in civil cases in March 2023.
• The most affected areas for county civil showed the largest increases.
• That's reflected in the clearance rates.
• rate after the enactment of this law.
• rates that they were showing ahead of time.

Keywords: 999, senate, all

Transcript Highlights:

• Representative Bray asked how those rates are set.
• Rates are set by category and type of job, and they are reviewed annually.
• of reduction and what the largest contributing factors are to lowering that rate.
• <00:13:12.000> of years in terms of an average rate of years in terms of an average rate of
• positions until we start to increase positions until we start to increase inmate<00:16:23.800>

Keywords: 958, all

Summary: The Budget Review Subcommittee on Justice, Public Safety, and Judiciary heard an update from the Department of Corrections on Kentucky Correctional Industries (KCI), sentence-credit payments for program completion, and the expansion of the Little Sandy Correctional Complex. Department officials said KCI, the department’s long-running re-entry program, operates 15 industries in 11 institutions, employs more than 400 inmates and 37 staff, and had $5.8 million in expenditures against $6.8 million in revenues through January 31. Members asked about inmate pay, the role of the Prison Industries Enhancement Certification (PIE) program, and whether KCI generates profit; the department said it aims to break even while supporting state government, with PIE participants earning prevailing wages and some programs offering certificates tied to post-release employment opportunities. The subcommittee also reviewed the budget-authorized sentence-credit program for county jails. Officials reported 37,300 program completions in fiscal year 2024 and, through January, $6.128 million paid for 90-day sentence credits and $1.6548 million for 60-day credits, with total county jail expenditures of $8.1 million and 67 jails participating. They said additional participation would require more funding and that they do not expect many more jails to join, though attendance and population levels can affect costs. Members asked how jails opt in, whether there are added costs, how inmate earnings are handled, and whether deductions are made for child support or victim compensation; the department said jails apply through an approved program matrix, inmate earnings are tracked in individual accounts, and required deductions are made when ordered. Questions from members focused on re-entry outcomes and program structure. Officials said evidence-based programming and employment opportunities are major contributors to lowering recidivism, and they cited a recent recidivism rate of 30.8 percent, down about 1 percentage point, while noting they would provide additional trend and savings data later. The department also clarified that adult education and GED programming are separate from KCI and are handled by a different education division. For the Little Sandy expansion, officials said the project remains on schedule for completion on June 25, 2025, with inmate transfers expected to begin at about 50 per week and roughly 200 additional staff eventually needed; they said hiring is being phased in as inmate population increases. The committee asked for the total construction cost of the expansion, which the witnesses said they did not have at the meeting and would report back. The meeting adjourned with the next meeting set for February 18.

Transcript Highlights:

• REA buys at the peak rate.
• REA buys at the peak rate.
• <01:23:54.960> retail than the going retail than the going retail rate rate rate so<01:23:
• retail rate?
• <01:38:39.159> is retail rate than the wholesale rate is retail rate than the wholesale rate

Keywords: 1187, senate, all

Transcript Highlights:

• HOURLY RATE?
• THE RATES ARE STANDARDIZED.
• THE RATES?
• WHEN YOU FACTOR IN THE RATES? WHEN YOU LOOK AT THE RATES?
• THE RATE OR THE RATE COMPARISON I THINK IT WOULD BE SOMEWHAT UNFAIR IF WE INCREASE THE RATE 50 PERCENT

Transcript Highlights:

• rate, sorry.
• see an average B&O tax rate reduction of 82% due to the preference.
• This is a 107% increase from fiscal year 2020.
• This is a 107% increase from fiscal year 2020.
• Of increasing their share of revenues dedicated to affordable housing.

Summary: The meeting began with JLARC’s biennial executive committee elections. After confirming a quorum, members unanimously elected Representative Pollet as chair, Senator Wagoner as vice chair, Representative Orcutt as secretary, and Senator Solomon as assistant secretary for the 2025-27 biennium. The committee also approved the May 14 meeting minutes unanimously. Chair Pollet then outlined a commitment to more member input on audit scope and coordination with the State Auditor’s Office. Staff presented a preliminary report on Washington State recreation boating programs. They reported that six agencies administer boating-related activities, that the state collected about $108 million in boating-related revenue in 2021-23, and that $86 million was spent, mostly on infrastructure and water access, environmental protection, boater safety, and marine law enforcement. Staff said Washington’s boating laws and programs are broadly similar to other states and noted that the final report is expected in September. JLARC then reviewed several tax preferences. For natural gas used as a transportation fuel, staff said the preferences reduce fuel costs but did not meet emissions-reduction targets because fewer vessels and vehicles converted to natural gas than expected; staff recommended continuing some exemptions and modifying reporting requirements. For travel agents and tour operators, staff said the preference continues to provide tax relief, but large beneficiaries’ savings are rising while small beneficiaries’ use is declining, leading to recommendations to continue the small-business rate and add or revise performance metrics. Staff also reviewed a nonprofit low-income housing property tax exemption, concluding it helps developers build homes as intended but that the performance metric should better reflect housing outcomes; they recommended the legislature decide whether to continue or modify it. Other reviews covered multipurpose senior citizen centers, disabled veteran adapted housing, trade convention attendance, agricultural fertilizer and seed wholesaling, hazardous substance tax treatment for pesticides, and silicon smelter energy preferences, with recommendations ranging from continuation to expiration depending on whether the stated objectives were met. The committee then adopted the final cannabis market study for distribution. Staff reported that Washington businesses produced two to three times more cannabis than retailers sold in 2023, and that inaccurate and incomplete reporting limits the Liquor and Cannabis Board’s ability to regulate the market. The board said it concurs with the recommendations, including developing a plan for a new data system and considering broader social equity options. Finally, staff presented the proposed final report on Department of Health oversight of hospital data reporting, inspections, and complaints. Staff said DOH was late on most acute-care hospital inspections, had not fully verified third-party inspection standards, and did not adequately review adverse event correction plans or assess language access barriers in its complaint system. DOH said it concurs with all six recommendations and has already made some transparency improvements, including a public dashboard for adverse event reporting.