Transcript Highlights:

• This is supported by workers' comp payments made by employers. Next item is B4.
• I think it's important to note for the committee that, as we've said before, the payment distribution
• It's a new contract for a trauma medical consultant for the trauma system.
• It's a new contract for a trauma medical consultant for the trauma system.
• Number 11, UA Little Rock with SSIA Technologies to provide operational digital planetarium system.

Committee: All JOINT BUDGET COMMITTEE

Summary: The committee considered and approved several temporary appropriation requests in Section B, including spending authority for the Court of Appeals to pay appointed counsel in criminal appeals, Commerce/Aeronautics airport and aviation grants, and Insurance Department items for workers’ compensation benefits and premium tax refunds. It also approved ARPA-related requests in Section C to return unused federal funds from DHS aging, mental health, substance abuse, and Older Americans Act grants. In Section D, the committee reviewed and approved Infrastructure Investment and Jobs Act requests, including Agriculture grants for wildfire preparedness and forestry capacity, a large Commerce broadband BEAD request, environmental recycling-related reallocations, and Oil and Gas Commission grants for facility repairs and sample preservation. Members questioned the broadband program’s audit process and performance safeguards; the State Broadband Director said the funds are federal, subject to audits, and payments are released only after engineering certification of completed work. The committee also approved DHS reallocations in Section E, including major transfers within Medical Services from hospital medical appropriations to private and public nursing home lines, as well as transfers for children and family services, developmental disabilities, and youth services. The committee then reviewed cash fund requests, miscellaneous federal grants, pay plan and performance fund transfers, methods of finance, and a large set of contracts. A Northwest Arkansas Community College official explained storm-damage repairs and insurance settlement issues, and DHS explained its hospital medical transfer was moving excess appropriation rather than cash. Members also questioned several UAPB tobacco prevention subgrants, especially arts-based outreach, and asked for more data on effectiveness; the committee later voted to expunge and re-refer the J-2 item for further review at a later ALC meeting. Additional discussion covered a DEQ grant to Free Geek of Arkansas for e-waste recycling, a UAPB tobacco program, and various contracts for universities, DHS services, corrections, and public safety. The meeting ended with reports filed for information and a brief member comment thanking others for concern after a tornado in Stone County; no one was injured.

Transcript Highlights:

• The first issue is juvenile rehabilitation system capacity.
• The JR system doesn't have the flexibility with the post-25s.
• And now we'll transition into behavioral health system capacity.
• . more of our civil side of the house or community-based system.
• Hospitalization, and/or the criminal legal system.

Committee: House Appropriations

Summary: The House Appropriations Committee held a work session covering juvenile rehabilitation system capacity, behavioral health capacity, federal funding changes, and a 2026 budget overview. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth and post-25 residents, and is projected to keep growing, creating crowding at Green Hill School and placement limits across the system. They described safe operating capacity concerns, staffing turnover, mental health acuity, and the need for additional medium-security and specialized mental health beds, including a proposed Parkland facility and continued development of Harbor Heights. Committee members were told to follow up separately with questions, and the presentation moved on due to time. Behavioral health officials from DSHS and HCA then reviewed forensic and civil capacity. DSHS described expanding state hospital and civil treatment capacity through Olympic Heritage, Maple Lane, Brockman Campus, and a new 350-bed forensic hospital at Western State, while noting ongoing construction, staffing, and funding issues. HCA outlined its strategy to move long-term civil commitment care into community settings through contracted long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams. Members asked about out-of-state placements, Medicaid funding, and the differences among facility types; officials said the goal is to right-size inpatient capacity while expanding community-based supports. OFM then presented an update on federal funding and the effects of H.R. 1 and H.R. 5371. Agency staff said H.R. 1 would tighten SNAP work requirements, reduce exemptions, shift some lawful immigrants to state-funded food assistance, increase state administrative and benefit costs, and affect Medicaid eligibility, redeterminations, cost sharing, and state-directed payments. HCA estimated major Medicaid caseload reductions and significant future fiscal impacts, while OFM also noted marketplace subsidy changes and higher education and K-12 downstream effects. H.R. 5371 was described as a short-term federal funding extension through January 30, 2026, with some full-year appropriations and a change affecting hemp producers. Finally, Mary Monroe gave a 2026 supplemental budget preview, citing declining NGFO revenue forecasts, reversions, vetoes, and the added uncertainty from H.R. 1, with the projected ending fund balance moving from positive amounts to a negative outlook over the four-year period.

Transcript Highlights:

• The Division of Early Learning had to set co-payments for the program.
• SR Plus family co-payments increase in relation to family income and exceed our SR program co-payments
• DL had to set co-payments for the program.
• SR Plus family co-payments increase in relation to family income and exceed our SR program co-payments
• Classroom faster just promotes quality in the entire system. Thank you.

Summary: The Pre-K through 12 Budget Subcommittee met with a quorum and focused on School Readiness, specifically the new provider reimbursement rates and the School Readiness Plus program. The chair gave an overview of how School Readiness is funded and administered, noting that the Legislature now sets county-based reimbursement rates using market and cost data, and that School Readiness Plus was created to help families who would otherwise fall off the subsidy “cliff” at 85% of state median income by extending assistance up to 100% of state median income. Panelists from the Children’s Forum, the Association of Early Learning Coalitions, and the Division of Early Learning described the programs as major workforce and family-support tools that help parents stay employed and help providers recruit and retain qualified staff. Testimony emphasized that higher reimbursement rates increase parental choice, help providers cover rising child care costs, and support better staffing and lower turnover. The panel also said School Readiness Plus is easing the pressure on families to turn down raises or promotions for fear of losing child care assistance, though uptake is still early because the program only began in late 2024 and is only available to current School Readiness families at redetermination. The Division of Early Learning reported about 275 children enrolled in School Readiness Plus as of March 10, with expenditures of about $161,420 through January 2025, and said participation is increasing. Members asked about the federal-state funding split, wait lists, reverted funds, coalition accountability, county-based rate differences, and whether the entrance eligibility threshold should be raised or shifted to state median income. The panel said roughly 70% of School Readiness funding is federal, about 4% has typically reverted in recent years, and the wait list is around 12,000 children, with reasons including income ineligibility, lack of available seats, and funding limits. They argued that raising the entrance threshold would expand access but would require additional funding, and they also discussed the need to reduce workforce barriers such as in-person testing and training requirements. The meeting ended with no formal action beyond the presentation and member discussion, and the subcommittee adjourned.

Transcript Highlights:

• </c><00:10:48.600><c> that</c> decline in the estimated payments that decline in the estimated payments
• </c> 1% but their estimated payments 1% but their estimated payments increased<00:16:50.199><c> by</c
• ><00:35:08.240><c> um</c><00:35:08.480><c> you</c><00:35:08.599><c> know</c> system or an open system
• or an early payment.
• </c><01:22:38.679><c> and</c> system to their new computer system and system to their new computer system

Summary: The committee received a Department of Revenue Administration update from Commissioner Lindsay Stepp focused on revenue estimates for fiscal years 2025, 2026, and 2027. She explained the department’s forecasting method, which uses five scenarios based on the first seven months of actual collections and different assumptions for the remaining months, then selects a reasonable high and low range for FY 25 and applies projected growth rates for FY 26 and FY 27. Members asked several clarifying questions about how the scenarios are chosen and how the estimates relate to economic growth and taxpayer behavior. For business taxes, Stepp reported FY 25 year-to-date collections of $110.3 million, 18.2% below plan and 17.2% below prior year. She said the shortfall reflects both economic conditions and a resetting of estimated payments after unusually strong pandemic-era profits, and noted that the department cannot fully separate changes in taxpayer liability from changes in estimated payment behavior. She said approximately just under $72 million was refunded in FY 24 due to the CCO cap, and that FY 25 year-to-date refunds are at 41.7%. For business taxes, the department’s FY 25 range was based on either continued underperformance versus plan or a return to prior-year levels, with FY 26 and FY 27 growth projected at 3% to 8%. The committee also reviewed meals and rooms tax, tobacco tax, and related trends. Meals and rooms revenue was $6.9 million, or 3.3%, ahead of plan and prior year; the FY 25 gross estimate was $475.894 million, with a net range of about $331.82 million to $335.259 million after municipal transfers and school building aid. Stepp said recent monthly results suggest some fluctuation tied to disposable income, weather, and travel patterns, but no clear sustained decline. Tobacco tax was $18.1 million, 14% below plan and 4.8% below prior year; she said cigarette stamp sales are declining while e-cigarettes and other tobacco products are growing, with FY 25 tobacco revenue projected at $182.5 million to $185.3 million and FY 26-FY 27 growth ranging from -5% to flat. No votes or formal actions were taken.

Transcript Highlights:

• This a new delivery system for Medicaid.
• Well, school systems, you know, have talked about this.
• Either through reduced payments or no payments.
• gt;&gt; either through reduced payments or no payments.<00:17:54.559><c> So</c><00:17:54.720><c> you're
• So you're not taking any more payments.

Committee: House Health Services

Transcript Highlights:

• systems.
• The system is already so fragile.
• The system ought to be too.
• The system ought to be two. the system on a budget. Every Californian is on a budget.
• The system ought to be two.

Summary: The joint informational hearing of the Senate and Assembly Health Committees focused on the “cost of uncertainty” in health coverage, access, and affordability amid federal policy changes. Opening remarks from committee leaders and members emphasized that California’s gains under the Affordable Care Act and Health for All policies—high coverage rates, consumer protections, and lower uninsured rates—are now threatened by federal rollbacks, including the expiration of enhanced premium tax credits and H.R. 1. Members repeatedly cited rising premiums, skipped care, medical debt, and the risk of coverage losses, especially for low-income Californians, workers, seniors, and immigrant communities. The first panel featured federal policy and state implementation experts, including Don Joyce, Jessica Altman of Covered California, and Elizabeth Lansberg of HCAI’s Office of Health Care Affordability. Testimony described the ACA’s coverage expansions and the current federal threats: shorter open enrollment, more verification requirements, loss of enhanced subsidies, and changes affecting immigrants and preventive coverage. Covered California reported that average monthly premiums could nearly double without the subsidies, new enrollment is down sharply, and more consumers are shifting into bronze plans with higher deductibles. HCAI explained its affordability strategy through spending targets, consolidation review, and primary care investment, while members asked about the impact of federal cuts on provider taxes, uncompensated care, and whether California can sustain coverage without new revenue. The second panel, with UC Berkeley Labor Center’s Miranda Dietz and California Health Care Foundation’s Christoph Stremikis, broadened the discussion to statewide cost drivers and consumer impacts. They highlighted that more than half of Californians under 65 rely on job-based coverage, yet premiums, deductibles, and out-of-pocket costs have risen faster than wages. They also pointed to medical debt, administrative waste, market consolidation, and underinvestment in primary care as major drivers of unaffordability. Members asked about the 25% of health spending that does not improve patient care, the role of fraud versus administrative friction, the effect of cost growth targets on workers, and the need for preventive care and possible revenue solutions. The hearing then moved to a third panel on human impacts, beginning with testimony from a Central Valley promotora describing how families are choosing lower-tier coverage, struggling with diabetes care, and facing higher premiums after subsidy losses.

Transcript Highlights:

• A final the final payment is made.
• </c> there through our workforce one system there through our workforce one system we're<00:31:19.440
• </c><00:57:17.680><c> to</c> agencies from making payments to agencies from making payments to grantees
• Again, we do look at the U payments.
• We would actually go a payment at that.

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• But again, overall, the U.S. health care system is tiered in this structure.
• There's no payment of premium in Medicaid. Okay. All right.
• until you make a payment.
• You do not have to make back payments, but you would not have coverage.
• No, they do not have to make back payments, but they would not have coverage.

Summary: The committee received a briefing from AHCA Deputy Secretary Brian Meyer and Florida Healthy Kids CMO Ashley Carr on implementation of HB 121, which was enacted in 2023 to expand Florida’s KidCare/CHIP eligibility from 200% to 300% of the federal poverty level and replace the sharp premium “benefits cliff” with a tiered premium glide path. Sponsor Rep. Bartleman described the bill as a bipartisan effort to help working families keep children insured while moving toward economic self-sufficiency. The presenters explained that the program remains a joint federal-state structure, with Medicaid unchanged and the bill affecting only the CHIP-related portions of KidCare. AHCA said implementation has been delayed by federal CMS actions. The agency reported that CMS first rejected a state plan amendment approach, then required revisions to the premium tiers under a new maintenance-of-effort interpretation, and later issued a new interpretation of continuous 12-month eligibility that would prevent disenrollment for nonpayment of premiums. AHCA said it submitted an 1115 waiver, but negotiations over special terms and conditions reached an impasse, and the state has filed litigation challenging CMS’s interpretation. Members asked about the cost of litigation, the effect on future bills, the review process for CMS documents, disenrollment and reenrollment rules, and whether any additional legislative action is needed; AHCA said no further state action is needed at this time and that the key issue is the pending federal litigation. Several members and the sponsor emphasized the need for immediate implementation and asked about possible interim relief. AHCA said current coverage remains in place under the preexisting program, that there is a 30-day grace period for premium payment, and that reenrollment does not require a penalty or back payment, though coverage is not active during lapsed periods. The committee also heard public comment from Nicholas Hessing of the Children’s Services Council of Broward County and the Florida Alliance of Children’s Councils and Trusts, who supported HB 121 and said the expansion could make about 17,600 additional children eligible in Broward County alone. The meeting ended with Rep. Bartleman thanking staff and expressing hope that the new federal administration would allow the program to move forward, and the chair adjourned the meeting.

Transcript Highlights:

• This is supported by workers' comp payments made by employers. Next item is B4.
• The first one is to replace the roof, gutter system, and exterior of their sample library that had damage
• But we have the appropriation in that line to make those payments that we're talking about right now.
• It's a new contract for a trauma medical consultant for the trauma system.
• Number 11, UA Little Rock with SSIA Technologies to provide operational digital planetarium system.

Committee: All JOINT BUDGET COMMITTEE

Transcript Highlights:

• This bill requires that those payments be made timely.
• Our system, our PBMs have become vertically integrated. They have.
• Local access is a very important part of our healthcare system.
• The money's in the system to be able to do this.
• It was mentioned in debate that this is a very complicated system.

Bills: SB1673 , SB1500 , SB1447 , SB1646 , SB2007 , SB1275 , SB2074

Committee: Senate Business and Insurance

Keywords: prosthetics, health insurance, medical necessity, patient rights, insurance liability, pharmacy benefits manager, healthcare providers, claims processing, reimbursement, insurance regulation, employees insurance, contract awarding, certifications, state procurement, insurance plan, mental health, substance use disorders, utilization review, benefit coverage, pharmacy

Transcript Highlights:

• online e-payment option.
• online e-payment option.
• to the Sentry system.
• That was strengthening our access controls and beginning development of the online e-payment system that
• The e-payment system, which is part of the new web redesign, and you saw a couple of pictures of that

Summary: The Human Services Subcommittee met to receive updates on implementation of House Bill 1349, which created guardianship transparency measures, and on the Department of Elder Affairs’ Office of Public and Professional Guardians (OPPG). The Clerk of Courts Operations Corporation described the statewide guardianship database for judges and a public-facing website, noting the system went live in March 2025 after a soft launch in 2024. Officials said the database now includes information from all 67 clerks, with 388 users, about 6,400 wards, and 518 professional guardians. Members asked about unique identifiers, data duplication, training, and how the system is being used; CCOC said it is working to use registration numbers as identifiers, improve search functions, expand training, and seek continued funding. Secretary Michelle Branham then outlined OPPG’s implementation of HB 1349 and its broader oversight role. She said the department has doubled education requirements, expanded transparency through the Sentry system, and brought investigations fully in-house in August 2024. She described the complaint and investigation process, including legal sufficiency review, regional investigators, mandatory in-person interviews, and possible outcomes ranging from corrective training and fines to suspension or revocation. Members asked about complaint categories, disciplinary actions, whether guardians can be suspended during investigations, and how older cases are handled; the secretary said most complaints are administrative/technical, serious allegations are referred to law enforcement, and one older case discussed remained ongoing. The Auditor General’s office presented its operational audit of OPPG, covering July 2022 through January 2024 and follow-up on prior findings. The audit identified problems with monitoring private professional guardians and public guardian offices, complaint processing timeliness, incomplete public profile information, late registration renewals, failure to assess contract penalties, weak collection safeguards, missing follow-up on required public guardian reports, lack of needed rules, and Sentry system access/security controls. In response, Secretary Branham said the department does not dispute the findings and has already taken corrective steps, including launching Sentry, hiring additional monitors, moving investigations in-house, adding automated renewal reminders, updating forms, and drafting new rules. She also said the department plans to seek subpoena power and stronger fines in the next legislative session. The subcommittee took no formal vote and adjourned after members’ questions were completed.

Transcript Highlights:

• And they have control of the federal government payment systems.
• Min: He's gained control of the Treasury's payment system, used to make all payments by the federal government
• a tax refund or government payment.
• MIN: HE'S GAINED CONTROL OF THE TREASURY'S PAYMENT SYSTEM, USED TO MAKE ALL PAYMENTS BY THE FEDERAL GOVERNMENT
• A TAX FUND OR GOVERNMENT PAYMENT.

Bills: HR776 , HR43 , HR226 , HR42 , HR835

Keywords: Coptic Christians, human rights, Egypt, religious freedom, US-Egypt relations, minority rights, violence prevention, inauguration, Congress, House attendance, ceremony, legislative session, inaugural ceremony, House of Representatives, President, Vice President, adjournment, aviation, transportation, centennial

Transcript Highlights:

• Our mission is to protect West Bank homes and businesses by ensuring that our flood protection systems
• the state court system to go ahead and pay those damages based on a payment plan, bonds, whatever they
• This is, the slide is mistitled, but this is actually the payment time.
• That means when a contractor submits his payment, he will receive payment within 15 days.
• So this bill simply does that with our new implementation of the OMV's computer system.

Bills: HR243 , HB939 , SB56 , SB72 , SB129 , SB171 , SB252

Committee: House Transportation, Highways & Public Works

Summary: The committee first adopted Amendment Set 527 without objection, then took up Senate Bill 56 concerning the Lafitte Area Independent Levee District and its possible transfer into the Southeast Louisiana Flood Protection Authority-West. Amendment Set 5327 was adopted to add a compliance officer with specified qualifications, described as a checks-and-balances measure separating that role from the chief of police. Testimony in support emphasized the district’s limited recurring revenues, the need for professional management, and the West Bank authority’s ability to provide administrative and operational support. A witness for affected landowners raised concerns about unpaid takings claims and urged amendments to preserve liability and avoid litigation, but the committee ultimately reported SB 56 favorably with amendments. The committee then received an update from DOTD Secretary Glenn Laude on the department’s transformation initiatives, including outsourcing operations and maintenance, construction process improvements, faster contractor payment times, quicker change-order approvals, and improved project delivery rates. After that, the committee reported favorably Senate Bill 171, which makes cleanup changes to the new water resources authority, and Senate Bill 252, which updates driver’s license organ-donor authorization to record both yes and no choices. Senate Bill 72, dealing with electronic titles and vehicle registration, was amended extensively to modernize OMV processes, support electronic lien and title transactions, and set standards for secure digital titles; it was then reported with amendments. House Bill 939, which would have created a Louisiana New and Used Motor Vehicle Commission, was converted into a substitute bill creating a Louisiana Vehicle Commission and consolidating the existing new and used vehicle commissions. After discussion of implementation, governance, funding, and employee-transition concerns, the committee adopted the substitute amendments and then deferred the bill. Senate Bill 129, creating a Master Combat Infantry Specialty license plate, was amended to add designated state officials for a related special plate request tied to security and parking around the Supreme Court in New Orleans, and it was reported with amendments. Finally, House Resolution 243, as amended, urged safety warning signage on the Tickfaw River after a fatal boating accident; the amendment shifted responsibility from DOTD to surrounding parish governing authorities, and the resolution was reported with amendments before the committee adjourned.

Transcript Highlights:

• The average payment data, meaning the number of claims and the total cost for payments, is also increasing
• </c><00:18:01.600><c> um</c> expected uh fee for service payments um expected uh fee for service payments
• </c><00:30:54.000><c> level</c> with stakeholders at the systems level with stakeholders at the systems
• Sometimes you need the law to force systems to do what's right.
• Sometimes you need the law to force systems to do what's right.

Committee: Senate Human Services

Transcript Highlights:

• </c><00:14:08.959><c> coin</c> payment the payment stable stable coin payment the payment stable stable
• Why is the current system what do you think is being improved in this thing versus the current system
• </c><03:44:11.319><c> system</c><03:44:12.120><c> Hospital</c> the inpatient payment system Hospital
• the inpatient payment system Hospital outpatient<03:44:13.640><c> physician</c><03:44:14.120><c> fee<
• </c> put further pressure on an EMS system put further pressure on an EMS system already<04:45:47.638

Summary: The House Commerce Committee opened a public hearing on House Bill 310, sponsored by Representative Keith Ammon, which would create a study commission to develop a legal framework for stable tokens and tokenized real-world assets. Ammon described stable tokens as blockchain-based digital tokens backed by U.S. dollars or treasuries, and tokenized real-world assets as representations of ownership in items such as gold, real estate, or artwork. He said the bill is intended to help New Hampshire get ahead of emerging financial markets while waiting to see how federal legislation develops. Committee members asked about the purpose of the bill, the difference between this proposal and Bitcoin, whether state regulation could be preempted by federal law, and whether the commission could be balanced and avoid becoming a vehicle for fraud or money laundering. Ammon said the proposal is blockchain-agnostic, could apply to multiple networks, and is meant to regulate asset-backed tokens rather than create a state-issued coin. He emphasized that the state would not be guaranteeing the underlying assets, but would set rules requiring audits, proof of reserves, and honest representation of backing, with the Secretary of State’s securities office involved in oversight. Several members raised concerns about the risks of stablecoins, including money laundering, tax evasion, and possible harm to the dollar or confusion about whether the state was endorsing a new currency. Ammon responded that the bill would not undermine the dollar and argued that tokenization could actually expand demand for U.S. currency by making it easier to use globally. He also said the state would not be in the business of weighing assets or directly valuing them, only ensuring a valid audit trail and one-to-one backing. The discussion ended with general agreement that the subject is complex and that a commission could help develop future legislation, but no vote or final action was taken in the hearing.

Transcript Highlights:

• That's why we've been moving towards the higher payment rates and directed payments, and I think the
• The reason why is that under the enhanced payment rates and under directed payments, those can only go
• </c><00:36:34.000><c> and</c> payment rates and directed payments and payment rates and directed payments
• </c> directed payments and uh payment rates directed payments and uh payment rates is<00:37:12.839><c
• </c><00:37:21.800><c> for</c> care in the form of dish payments for care in the form of dish payments

Summary: The House Finance Division 3 work session continued its review of the Department of Health and Human Services’ Medicaid budget and related policy issues, with CFO Nathan White and Medicaid Director Henry Litman presenting updated materials. The discussion focused on a crosswalk between the adjusted FY 2025 Medicaid budget and the governor’s FY 2026 recommendation, plus handouts showing service additions, eligibility changes, dental rates, and other Medicaid changes since 2019. The department also said it would provide a clearer breakdown of the pharmacy cost-sharing item by general, federal, and other funds. Members asked detailed questions about the Medicaid enhancement tax, the 80% plan, and how funds are allocated between hospital payments, directed payments, and DSH uncompensated care. The department explained that the MET is being used more toward rates and directed payments to better align with federal matching rules, while DSH remains important for uncompensated care. They also noted that a pending Senate Bill 249 would keep the 80% structure and move to Senate Finance. On the trigger law, the department identified the governing provision as Chapter 342:12, Laws of 2018, and explained that if the federal match for Medicaid expansion falls below 90%, the state must notify legislative leaders and participants and the program would sunset after 180 days unless the legislature acts. The committee also reviewed current Medicaid expansion enrollment and program trends. Officials said enrollment was just under 59,000 as of March 3, with about 87,000 people enrolled over the past year and more than a quarter-million residents having used the program over its lifetime. They said enrollment has fallen from a post-pandemic high of nearly 97,000 and may eventually settle in the low 50,000s. Finally, the department discussed federal DSH funding risk, saying New Hampshire could face a significant reduction if Congress does not extend current protections, which is part of why the state has shifted more funding toward payment rates and directed payments.

Transcript Highlights:

• consensus that prompt payments must be enforced, not just expected.
• System so families can access the resources they need and begin recovering sooner.
• It's been over 15 months, and we still haven't received all of our personal property payments.
• What happened to us is systemic. Underneath all of that are systemic delays.
• from dishonest contractors and force accelerated payments based on incomplete information.

Summary: The committee heard three major insurance-related bills. SB 1209 by Senator Allen would give the Insurance Commissioner new authority to require insurers to implement corrective actions found in market conduct and financial exams, with penalties for failure to comply. Supporters, including Commissioner Ricardo Lara and his deputies, said current law leaves CDI without a direct way to compel remediation of repeated violations or obtain needed financial information, while opponents argued the bill expands CDI authority too far, could duplicate existing penalties, and should be limited to legal violations rather than recommendations. After discussion, members and the author agreed to narrow the bill through amendments, including tying it to legal violations, applying penalties per exam rather than per policy, and clarifying accounting language; the committee then passed the bill 5-1 to Appropriations, with one member on call. SB 1301, also by Senator Allen, would reform residential property insurance non-renewals by requiring clearer written explanations, giving homeowners a chance to mitigate correctable issues, and prohibiting certain unfair non-renewal bases such as claims below deductible or claims not paid by the insurer. The author and supporters said Californians face unusually high non-renewal rates and often receive vague notices that make it hard to keep coverage, while opponents warned the bill’s original 180-day notice period and reporting requirements were too burdensome and could worsen availability. Senator Richardson said he would support the bill after the author agreed to reduce the notice period to about three months and continue working on a mitigation-based process; the committee then approved the bill 4-1, with one member on call. The committee also considered SB 1026 by Senator Gonzalez, which would strengthen regulation of bail fugitive recovery agents by allowing CDI to suspend or revoke licenses without a criminal conviction, expanding prohibited conduct, and tightening insurance and appointment requirements. Supporters, including Commissioner Lara, said the 2022 licensing law left loopholes that allow misconduct to continue and that the bill would improve public safety and accountability. Opponents from the bail industry and crime victims groups argued the bill requires unavailable or impractical insurance coverage, including coverage for willful acts, and could reduce the number of recovery agents and delay justice. Members raised concerns about the insurance language and availability, and the author said the bill was still being worked on with opposition; the committee passed it 4-1, with one member on call. Finally, the committee heard SB 982 by Senator Wiener, the Affordable Insurance and Recovery Act, which would let the Attorney General seek recovery from fossil fuel companies for climate-related costs affecting the Fair Plan and private policyholders. The author said Californians are paying rising insurance and disaster costs while fossil fuel companies that contributed to climate change are not, and witnesses from flood and wildfire communities and climate policy experts supported the bill as a way to fund recovery and resilience. Opponents, including business and labor representatives, argued the bill would impose broad liability, invite litigation, and harm jobs and energy affordability. The hearing included extensive testimony, but no vote was taken on SB 982 in the portion provided.

Transcript Highlights:

• State loves to start to do its own computer systems, and this computer system was sold on the basis it
• State loves to start to do its own computer systems, and this computer system was sold on the basis it
• to the Medicaid fee-for-service payment schedule, to make Medicaid payments for services in lieu of
• system and create a duplicative system that would increase cost to our customers.
• system for beverages.

Summary: The committee held a public hearing and briefing on several bills, with House Bill 2441, House Bill 2159, House Bill 2521, House Bill 2531, House Bill 2543, and House Bill 1607 discussed in that order after agenda changes. HB 2441 would expand reimbursement from the LEO retirement fund for survivors of law enforcement officers killed in the line of duty, covering Medicare Parts A and B premiums and retroactive health insurance premiums during the period before a death is officially determined to be work-related. Staff described a relatively small number of affected survivors and modest actuarial impacts, and the prime sponsor spoke emotionally in support. A representative from the L&I Board also testified that the board had studied the issue and endorsed the bill. HB 2159 would create the Pre-K Promise Account to receive philanthropic funds for ECEAP expansion. Staff explained ECEAP eligibility and the proposed non-appropriated account structure, noting Governor Ferguson’s budget included $34.5 million in non-appropriated authority for about 2,000 new school-day slots. Testimony was strongly supportive from Ballmer Group, DCYF, Head Start/ECEAP advocates, a Yakima provider, and the governor’s office, all emphasizing the public-private partnership, expanded access, and support for children furthest from opportunity. HB 2521 would remove the $18 cap on the State Patrol’s firearm background check fee and allow the fee to be set to cover total program costs. Staff said the fee could rise to about $33 per check based on current costs, and the State Patrol testified that the cap no longer matches actual expenses and threatens staffing and service levels. One member of the public opposed the bill, arguing the state system should be scrapped or capped and that consumers would face higher costs. HB 2531 would freeze the ambulance quality assurance fee at its July 4, 2025 level to comply with federal law and adjust Medicaid add-on payments accordingly; the Washington Ambulance Association strongly supported it as essential to preserving federal matching funds and improving wages and benefits. HB 2543 would update county clerk fees and modernize outdated references, with county officials supporting the changes as necessary to reflect current electronic-record practices. HB 1607, the Recycling Refund Act, drew the most extensive testimony. Staff described a 10-cent refund system for covered beverage containers, a producer responsibility organization, Ecology oversight, and fiscal impacts tied to program administration and lost tax revenue. Supporters, including environmental groups, youth advocates, Seattle Public Utilities, and some industry voices, argued the bill would reduce litter, increase recycling rates, support reuse systems, and complement the existing recycling reform law. Opponents from recycling haulers, grocers, beverage interests, counties, and solid waste providers argued it would function like a tax, raise consumer and retailer costs, duplicate or undermine curbside recycling and EPR, and create siting and implementation problems. No votes were taken on the bills in this transcript; the hearing concluded with public testimony and adjournment.

Transcript Highlights:

• The retirement system is not shorted at all in this.
• I'm the director of the Teachers' Retirement System.
• is not liable for the payment of any benefits for which they have not received payment from the employer
• retirement system.
• ' Retirement System.

Committee: House Retirement

Summary: The Retirement Committee heard several retirement-related bills and deferred two measures at the start: HB 26 and HB 993 were voluntarily deferred by the author. HB 31, by Rep. Eccles, would allow certain small municipalities to terminate participation in the municipal police employees’ retirement system and create a lower-cost “Plan C” option for small towns like Stirlington. After discussion about population and officer-count limits, the committee adopted amendments, heard concerns from the Municipal Police Employees’ Retirement System about remaining issues, and reported HB 31 as amended favorably. The committee also advanced HB 1134, which creates a backdrop-style retirement option for judges whose positions are abolished, and HB 24, which would allow retired teachers to return to work as one-year contract teachers without the current retirement contribution structure. TRSL testified that return-to-work policy is complex and that a broader Senate study-group proposal is also moving, but the committee reported HB 1134 and HB 24 favorably. HB 21, a technical correction to the Municipal Employees’ Retirement System law, was amended to remove a sunset problem that would be fixed in another bill and was reported favorably as amended. Later, the committee reported HB 1017 favorably, which limits former spouses’ claims to post-divorce earnable compensation in the Firefighters’ Retirement System, with testimony that the bill would reduce litigation over promotions and raises after divorce. HB 43, which would let certain LASERS members retire after 35 years of service at any age, drew testimony from LASERS about its cost and workforce effects but received no motion and was voluntarily deferred. HB 30 was also voluntarily deferred because its substance would be moved into another bill. The committee then took up two major municipal police bills. HB 45, after extensive negotiations among the author, the Louisiana Municipal Association, EMPERS, and the City of New Orleans, was substantially rewritten by amendment to address retention pay, out-of-state service credit purchases, survivor benefits for certain officers killed in the line of duty, COLA funding, and a reduction in the non-hazardous accrual rate. The committee adopted the amendments and reported HB 45 as amended favorably. HB 49, a related bill on municipal police and firefighter retirement issues, was also replaced by a substitute that changed opt-out procedures, revised partial dissolution rules, and preserved full dissolution liability; after testimony that the changes would save New Orleans and other cities significant money, the committee adopted the substitute and reported HB 49 as substituted favorably. The meeting ended with adjournment.

Transcript Highlights:

• It also required that counties provide the state payments known as county facility payments in an amount
• It also required that counties provide to the state payments known as county facility payments in an
• Then HVAC systems break down during periods of extreme heat.
• that is absolutely critical for our public safety systems to work.
• And by the time we get down to the house payment, we don't have any money for the house payment, so we

Summary: The Senate Budget Subcommittee on Corrections, Public Safety, Judiciary, Labor, and Transportation held a hearing focused on courthouse facility funding and the Governor’s budget proposals for the judicial branch. The Legislative Analyst’s Office outlined the state’s courthouse funding structure, including the Trial Court Facilities Act, the main facility funds, the fixed county facility payment, and the heavy reliance on General Fund backfill. LAO also explained that the state’s construction funds were depleted after large transfers and declining fine-and-fee revenue, leaving a backlog of roughly 80 construction projects and more than 22,000 deferred maintenance projects statewide. Members and witnesses discussed the long timelines for capital projects, the need for reassessments, and the impact of inflation, CEQA, and site acquisition delays. Judicial branch representatives, including Justice Hill, Judge Moorman, and Judge Tapia, testified that courthouses across the state face serious seismic, ADA, security, and maintenance problems. They described cost-cutting efforts in design and construction, but emphasized that many facilities are aging and unsafe, with examples from Los Angeles, Compton, Ukiah, and other courts involving flooding, elevator failures, asbestos issues, and closures that disrupted thousands of cases. Judge Moorman highlighted the Ukiah courthouse replacement as an example of a project that is on time and on budget and would improve access, safety, and community services. Judge Tapia stressed that deferred maintenance in Los Angeles County alone exceeds $1.4 billion and argued that preventive maintenance is fiscally prudent because emergency repairs and closures are more costly. Committee members pressed the panel on how priorities are set, whether caseload and population growth are adequately reflected, how quickly projects can be accelerated, and what level of funding would actually meet statewide needs. The Department of Finance and Judicial Council staff explained that the county contribution is fixed and not inflation-adjusted, that acquisitions require willing sellers and can be delayed by CEQA and market conditions, and that the Judicial Council’s prioritization process was based on 2019 criteria that may need updating. LAO cautioned that any new General Fund commitment would require tradeoffs with other state priorities and suggested the Legislature decide what level of funding it is willing to support. The committee also reviewed the Governor’s budget proposals for courthouse facilities, which include backfill for the construction fund, selected new construction and judgeship-related projects, and major facility modifications such as the Orange County Central Justice Center and relocation of Los Angeles courtrooms from the Spring Federal Building.