Transcript Highlights:

• But I think it's the difference between the lower tax rate and the higher tax rate for pre-existing inventory
• This occurs even as smoking rates and tax pack sales decline because the higher tax per pack rate more
• Washington's smoking rate is at a historic low.
• This is due to the consolidated state tax rate.
• So again, in the bill, the rate is set at about $2.6.

Summary: The committee held a public hearing on several tax and retirement bills, beginning with Senate Bill 6073, which would move eligible Department of Natural Resources wildland and aviation firefighters from PERS into LEOFF 2 prospectively. Committee staff described the higher retirement age and benefit differences between the systems and noted a small implementation cost and a modest actuarial rate increase. DNR, the Washington Public Employees Association, and a committee member all raised support or questions, with DNR acknowledging additional review with the LEOFF board was still needed. The hearing then turned to Senate Bill 6113, a Department of Revenue request bill making technical and administrative changes to the tax code, including clarifications tied to last session’s ESSB 5814 service-tax changes, a six-month transition period for reclassified businesses, and a section affecting advertising-related exclusions. DOR said the bill was revenue neutral and intended to codify guidance and improve certainty, while school districts, arts groups, broadcasters, newspapers, and business groups testified both in support of the technical fixes and in opposition to provisions they said would continue or worsen unintended consequences from last year’s tax law. Senators also questioned how some definitions would apply, especially to school and higher-education-related services. Senate Bill 6116 would restore the vapor-products tax structure by moving nicotine-containing vapor products back under the per-milliliter vapor tax instead of the 95% other tobacco products tax, and would restore distributions to the Andy Hill Cancer Research account and Foundational Public Health Services account. Public health agencies, cancer research representatives, and some retailers supported the bill as a fix to funding disruptions, while tobacco-control groups opposed lowering the tax and argued it would weaken public health policy. The committee also heard that the current law creates a double-tax issue on pre-existing inventory because products held when the definition changed became subject to a new tax classification. Finally, Senate Bill 6129 proposed a broader nicotine-tax overhaul, including a 90% tax on nicotine products, a 10% tax on flavored nicotine products, higher cigarette taxes, and new revenue distributions and tribal compact provisions. Supporters, including public health organizations, pediatricians, and civil rights advocates, said higher taxes would reduce youth use and restore funding for cancer research and public health; opponents, including retailers, tobacco and vapor businesses, broadcasters, and some harm-reduction advocates, argued the bill was regressive, would fuel illicit markets, and would harm small businesses and adult consumers using lower-risk products. The committee then began a briefing on Senate Bill 6162, a property tax reform bill that would expand senior and disability property tax relief, adjust state property tax rates, and change property tax billing statements, but the hearing on that bill was not completed in the portion provided.

Transcript Highlights:

• Those trends include understanding rate increases, noting rates are actuarially sound in compliance with
• There's managed care rates. There's provider rate increases.
• And so the rate increases are not as significant; just base rate increases are not as significant as
• Guarantee that rate increase.
• reduce the Medi-Cal rate.

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

Transcript Highlights:

• If you can just wrap up, is paying one rate in this state, and it's the rate at the location that they're
• tax rates.
• Ponder responded that, today, the items are taxed at one rate: the rate at the location where the item
• Chair, it's my assumption that there would be people whose rate would go down and people whose rate would
• Chair, it's my assumption that there would be people whose rate would go down and people whose rate would

Committee: House House Ways & Means Committee of Reference

Summary: The committee first took up House Bill 2290, which would clarify transaction privilege tax sourcing rules for tangible personal property by specifying that servers are not used to determine where an order is received and by defining business location. The sponsor and supporters argued the bill simply codifies existing origin-based treatment for Arizona businesses and provides certainty, while the League of Arizona Cities and Towns and ATRA warned it would shift revenue, create compliance problems, and potentially subject businesses to multiple tax rates depending on distribution or pickup locations. The Department of Revenue said it was neutral, noted a 2023 draft ruling had reflected a legal analysis of the issue but was never finalized, and said the bill would address a real need for clarity. After extensive debate over examples involving feed stores, Target, pizza delivery, and online orders, the committee voted 5-3 with one absent to return HB 2290 with a do pass recommendation. The committee then heard House Bill 2373, which would add a space on the individual income tax return for taxpayers to voluntarily contribute part of a refund to the Veterans Donations Fund or Veterans Service Organization Fund. The sponsor and a veterans policy advocate said the measure would give taxpayers a simple way to support veterans organizations, with examples from Colorado and local veterans projects. The bill passed unanimously, 8-0 with one absent, and was returned with a do pass recommendation. Finally, the committee considered House Bill 2143, a technical PSPRS measure that would limit the 5% ownership cap to publicly traded corporations. PSPRS representatives said the change would align the statute with its intended purpose, reduce unnecessary workarounds and legal costs, and preserve broader investment flexibility while maintaining other risk controls. Members discussed how the cap compares with ASRS and other retirement systems, and the bill was still under discussion at the end of the transcript.

Transcript Highlights:

• Error rate. How does this affect the error rate?
• </c> error rate. Correct. error rate. Correct.
• </c> that error rate. that error rate.
• </c> around the error rate. Yeah. around the error rate. Yeah.
• even</c> payment rate error rate down even payment rate error rate down even further.<00:54:08.400><c

Committee: Senate Health and Human Services

Keywords: 1191, senate, all

Transcript Highlights:

• Is it just a flat rate per patient per bed? Yes, ma'am.
• Is it just a flat rate per patient per bed? Yes, ma'am.
• So from commercial care, now to Medicaid, what's the rate? Why is the rate so low?
• The rate is what it is. The last time we had a rate change.
• So where does the rate that we get for our per diem rate come from?”

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The subcommittee met to review Department of Human Services hospital payments in Arkansas Medicaid, with DHS Secretary Janet Mann and Deputy Secretary Misty Eubanks presenting first, followed by Arkansas Hospital Association Executive Vice President Jody Ann Tritt and a brief comment from Arkansas Children’s. DHS outlined the main hospital payment streams: fee-for-service per diem payments, upper payment limit (UPL) supplemental payments, cost settlements, and smaller payments such as graduate medical education and disproportionate share hospital funds. Members asked for plain-language explanations of cost settlements, why per diem rates vary by hospital type, and why UPL applies to private hospitals. DHS said cost settlements and UPL are mechanisms to help offset Medicaid underpayment, with SFY 2025 hospital payments totaling hundreds of millions of dollars and no general revenue used for supplemental payments beyond the state share funded through hospital assessments and related financing structures. Committee members focused heavily on whether Arkansas hospitals are adequately reimbursed and why rural hospitals struggle. Tritt explained that critical access hospitals, rural emergency hospitals, PPS hospitals, and specialty hospitals operate under different federal and state rules, and said lower per diem rates for some facilities help with cash flow and later cost settlement adjustments. She said Arkansas hospitals are under financial strain, citing a negative patient services margin statewide and noting that Medicaid, Medicare, and commercial payers all contribute to the problem. She also said the association had just authorized a statewide survey of hospital finances and costs, which she expected would take about a year to complete. A major theme was commercial insurance reimbursement. Tritt argued Arkansas hospitals are paid far less than hospitals in neighboring states even though premiums are similar, and said administrative burdens, prior authorizations, and denials add to the problem. She said hospitals receive about 52 to 53 cents on the dollar for Medicaid costs without UPL and about 78 cents with UPL, still below cost. Members also discussed Medicare wage index issues, Medicare Advantage, and whether hospitals could use technology or alternative arrangements to improve finances. No votes were taken on the hospital presentation. At the end of the meeting, DHS provided a brief update on Living Choices and assisted living reimbursement. Officials said one assisted living facility, Pillars of the Community in Crossett, had announced closure, with nine waiver clients being transitioned to other settings. DHS said the current cost reporting period was underway and that a new rate study could be ready for review before the end of the fiscal year if reports were submitted on time. Members also asked about the broader waiver plan, and DHS said the next waiver iteration would likely be brought back to the committee in the summer.

Transcript Highlights:

• They have a guaranteed rate of return.
• And they'd be willing to do it even for a lower rate of return.
• Regulatory certainty informs a big portion of our credit ratings.
• Bigger high-level issues to start talking to the general rate case.
• Yes, we want everybody to pay in rates.

Summary: The committee first heard SB 804, the Hydrogen Pipeline Safety Act, from Senator Arreguín. He said the bill would designate the State Fire Marshal as the safety regulator for intrastate hydrogen pipelines and require hydrogen-specific standards, while not mandating any pipeline construction or bypassing environmental review. Supporters included labor groups, utility employees, and the City of Burbank, while Air Products opposed unless amended, citing concerns about the bill’s specificity, fee structure, and the need for a hydrogen-specific rulemaking process. The committee discussed safety, fees, and regulatory certainty, and later passed SB 804 on a 9-0 vote to Emergency Management with commitment to take amendments. The committee then took up SB 905 by Senator Becker, aimed at reducing electricity rates by changing utility incentives. The bill would tie part of executive compensation to keeping rates below inflation, require more performance metrics, and allow the CPUC to consider lower returns on equity for certain lower-risk investments and alternative financing options. Support came from consumer, environmental, agricultural, and large energy user groups, while Southern California Edison, CalChamber, PG&E, and utility labor groups raised concerns that the bill could reduce investment, create regulatory uncertainty, and raise borrowing costs. After extensive discussion about utility affordability, wildfire costs, and capital markets, the committee passed SB 905 on a 7-1 vote to Appropriations. SB 913, also by Senator Becker, would create a clearer pathway for distributed energy resources such as batteries and smart thermostats to participate in the resource adequacy market and compete with utility-scale resources. Supporters said the bill would better use existing grid capacity, lower costs, and build on the state’s Demand Side Grid Support Program; PG&E opposed unless amended, saying the use case was not yet proven and was already being addressed in other rulemakings. After the committee accepted amendments, one opposition group moved to neutral and another said it might do so after reviewing the changes. The bill passed 8-0 to Appropriations and was placed on call. Several other measures were heard and advanced, including SB 1196 on faster utility hookups for small energization projects such as ADUs and EV chargers, SB 931 reauthorizing the Diablo Canyon Essential Services Mitigation Fund through 2028, SB 1158 reducing the frequency of joint reliability assessments from quarterly to twice yearly, and SB 1245 directing further study of California’s gasoline market and potential use of non-CARBOB fuel during supply disruptions. SB 1196 and SB 931 both passed with broad support and no opposition after amendments, SB 1158 passed without testimony, and SB 1245 drew strong support from consumer and environmental advocates but opposition from fuel industry and business groups concerned about costs, confidentiality, and fuel standards.

Transcript Highlights:

• rate increases, and then it is our role and our analysts to recommend the actual rate change.
• c> are</c> rate cases uh we are rate cases uh we are responding<00:27:10.240><c> to</c><00:27:10.640>
• So, uh double-digit rate increases.
• And we've lost that rate increases.
• that um electric rates and gas rates<01:21:17.120><c> are</c><01:21:17.360><c> effectively</c><01:21

Keywords: 1187, senate, all

Transcript Highlights:

• rate of their contract amount.
• at the infant rate.
• Is the rate paid the same for whether it’s the CHW?” “We don’t dictate the rates for ECM.
• , and a high bound rate.
• So why is the rate different?

Keywords: 987, senate, all

Transcript Highlights:

• had rates around 75.7%.
• The maltreatment rate is basically the rate that CYFD determines maltreatment at.
• That rate is 14.7%, which is the rate that is.
• We will not reimburse providers based on their price; we reimburse a set rate, and those rates are in
• maltreatment rate is 47% higher.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• With the provider rate increases, we're going to pay you more money at a higher rate to attract you,
• Have we done anything on that federal reserve rate? Royalty rate? Yes, Mr. Chair.
• Lower royalty rate, and in the feds reducing that royalty rate, we can think of that as more foregone
• We're driving the cost because we're going to have to supplement people's utility rates because rates
• Salek, of reducing the error rate.

Transcript Highlights:

• So, um, there are some rates that are above 100% right now, and some are at 70% of the recommended rate
• that rate study.
• rate.
• Steve added that the rate study was what was in the budget, about the 70th percentile of that rate study
• rate.

Keywords: 958, all

Summary: The Budget Review Subcommittee on Health and Family Services held its first meeting and received an overview from the Department for Medicaid Services on Medicaid’s behavioral health and substance use disorder services. Commissioner Lisa Lee and CFO Steve Beal said Kentucky Medicaid serves about 1.4 million members, including over half of Kentucky children, with 485,000 expansion members, more than 69,000 enrolled providers, and total fiscal year 2024 expenditures of $18.5 billion. They said Kentucky covers a broad range of behavioral health services, and behavioral health provider enrollment has grown from a little over 4,500 in 2019 to nearly 8,000 in 2024. They also described how Medicaid spending and utilization are tracked through claims and encounter data, with most members served through managed care organizations. Members focused on sharp increases in certain behavioral health billing codes, especially peer-to-peer services, and asked about reimbursement, utilization review, and whether the growth reflected increased need or expanded coverage. DMS said the rise was partly tied to combining facility and nonfacility behavioral health fee schedules in 2023, choosing the higher reimbursement rate to avoid cuts, and that the department has seen an uptick in peer-to-peer services. In response to concerns about overutilization, DMS said it mailed a letter to behavioral health providers, is considering limits and prior authorizations for some services, and plans to create a standardized monthly behavioral health report to monitor trends consistently and identify when controls may be needed. Lawmakers also asked whether the provider network is sufficient and whether access is adequate, especially for children. DMS said provider enrollment has expanded because behavioral health services were added to Medicaid in 2014 and because demand increased after COVID, but acknowledged studies showing children have less access than adults and said that would be an area of focus. The department said managed care organizations are required to ensure access to needed services and that current trends indicate access is available, though one member disagreed and said workforce shortages remain a major concern. Another member asked about non-emergency medical transportation spending, and DMS explained that it is handled through a capitated arrangement administered by the Transportation Cabinet rather than directly by the managed care organizations.

Transcript Highlights:

• </c> traditional rate case recovery process. traditional rate case recovery process.
• </c> burden of a new rate case. burden of a new rate case.
• </c> rate rider. rate rider.
• </c> been in rate cases and we disagree. been in rate cases and we disagree.
• </c> to help them with their rate paying. to help them with their rate paying.

Committee: Senate Energy, Utilities, Environment, and Climate

Keywords: 1187, senate, all

Transcript Highlights:

• We aimed to remove the provider taxes, but we went from a bad rate in the House to an even worse rate
• in the Senate, then back to the House rate.
• Rate down to 100% of Medicare rates because we are an expansion state.
• It is the match rate.
• Your rate can vary in that situation.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• There had been a 3% rate increase in the House budget and no rate increase in the Senate budget.
• And then MCO behavioral health rates: this is a rate decrease of 1% starting January 1, 2026.
• There are delays in the increase to the 85th percentile of rates for the 2024 market rate study.
• There are delays in the increase to the 85th percentile of rates for the 2024 market rate study.
• There are dental rate reductions.

Summary: The conference committee met on Engrossed Substitute Senate Bill 5167, the state operating budget, and received a detailed staff briefing on the proposed conference report. Staff explained how to read the comparison documents, the four-year balanced-budget outlook, and the main resource assumptions, including use of the March 2025 revenue forecast, exclusion of the statutory 4.5% growth assumption, revenue legislation totaling about $8.7 billion, numerous fund transfers, and reversion assumptions. They also noted the proposal does not include a temporary salary reduction or furloughs. The briefing highlighted major policy areas and their net five-year impacts, including increases for state and higher education employee compensation, K-12 education, long-term care and developmental disabilities, corrections, information technology, and other policy items. It also described net reductions in behavioral health, children/youth/families, higher education, natural resources, other human services, and health care/public health, with many of the changes tied to delayed programs, rate adjustments, fund shifts, and savings options from Governor Ferguson. The committee then heard member comments, with supporters emphasizing K-12 funding and fiscal responsibility, and Senator Gildon opposing the process and the closed-door nature of the budget development. A motion was made and seconded to recommend adoption of the conference report and pass the bill. The roll call showed one member voting do not recommend, one member excused, and the remaining members recommending adoption. By vote of the committee, the conference report was adopted, and the committee adjourned.

Transcript Highlights:

• They are burdened by a 6% interest rate on arrears.
• or... the rate at which arrears are growing slows.
• ...high interest rate encouraged.
• Research shows lowering interest rates work.
• The lawyer that was chosen by the family would then accept the same rate.

Bills: SB629 , SB1015 , SB2501 , SB2933

Committee: Senate Jurisprudence

Keywords: child support, interest accrual, family law, delinquency, financial judgment, statutory probate courts, probate court fees, judicial fund, county reimbursement, comptroller, Texas Government Code, Local Government Code, court fees, fee allocation, excess contributions, judicial education and support fund, presiding judge salary, county finance, court administration, Texas judiciary

Transcript Highlights:

• And then the next one is the alternative payment admin rate.
• are set under the single rate structure.
• were put into the base rate rather than in the cost-of-care-plus rate, which is paid outside of contract
• Terms of the age rate categories are as follows.
• elements by defining age rate categories and details around the enhanced inclusion rates.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• payer Bill roughly was about $2 per rate payer Bill roughly interest<00:54:10.440><c> rate</c><00:54
• </c> numbers across different rate numbers across different rate schedules<00:54:41.079><c> and</c><00
• </c> can get with your current credit rating can get with your current credit rating it<00:55:55.960>
• </c> another rate another rate case<01:36:52.679><c> okay</c> case okay case okay got<01:36:54.960><c
• Our last rate increase was in 2020, so it's been five years since our last rate increase.

Keywords: 910, house, all

Summary: The committee heard testimony on several measures, beginning with SB 48 SD2 HD1 relating to combat sports. The Attorney General offered a technical comment on the bill’s effective date, and several testifiers from the combat sports community strongly supported the measure with amendments. They argued that boxing and MMA should be treated separately, that the current regulatory structure has made events too costly and reduced opportunities, and that more local oversight would help revive the sport and give youth a constructive outlet. Committee members questioned whether the bill’s medical staffing requirements would apply to boxing, MMA, or both, and whether the added requirements would increase costs and reduce access. The witness from the combat sports community said amateur boxing is already regulated through USA Boxing, that the DCCA should focus on professional boxing, and that for safety he would support two physicians and one ambulance for boxing and MMA events. The committee then took up SB 117 SD2 HD1 relating to transportation. The Department of Transportation and the Ulon Initiative testified in support, and the bicycling community was listed as supporting as well. Members focused on the bill’s rebate program for electric transportation devices, asking how successful it had been and whether removing the rebate would affect use. DOT said the program began in February 2023 and had issued about 500 rebates totaling roughly $166,000, aimed at helping people without vehicles access transportation options. The department explained that the bill would broaden access and increase the rebate amount, including additional assistance for low-income applicants. Finally, the committee heard SB 897 SD3 HD1 relating to energy and wildfire liability. The Division of Consumer Advocacy, the Public Utilities Commission, the Attorney General, Clearway Energy Group, Ulon Initiative, Kawai K, IBEW Local 1260, and Hawaiian Electric all testified in support, while the Hawaii Association for Justice was listed as opposed but not present. Supporters said the bill would help finance wildfire mitigation and infrastructure improvements through securitization, reduce wildfire risk, and address utility cost and credit concerns. Hawaiian Electric emphasized that the bill is forward-looking, would help protect customers from future wildfire-related cost increases, and requested amendments including a study on a future wildfire recovery fund. In questioning, members pressed Hawaiian Electric on the liability cap, asking whether it would have applied to the Maui wildfires and whether it would cover personal injury or wrongful death; the witness and company counsel clarified that the aggregate cap applies only to qualifying property damage, not personal injury or wrongful death, and said they would follow up on how the cap would calculate in a Maui-type event. Hawaiian Electric also said it would seek financing under the bill if enacted and updated members on settlement funding efforts, including raising the first $550 million in equity and divesting assets to help meet its obligations.

Transcript Highlights:

• rate.
• That drives up our bond rating.
• That drives up our bond rating.
• </c><02:36:07.760><c> help</c><02:36:08.000><c> us</c> rating that Bond rating will help us rating that
• These are ratings.

Keywords: 928, house, all

Summary: The committee meeting began with an overview from the Legislative Budget Assistant Office on how Ways and Means will work with agencies and leadership during the budget and revenue-estimating process. Staff explained that the governor’s budget is still being developed, agencies are cautious about going on record early, and the committee will use worksheets and updated fiscal reports to track estimates. The presentation emphasized that the fiscal year 2025 budget status is a point-in-time snapshot and remains fluid because the annual comprehensive financial report has been delayed, which could change the beginning balances for both the general fund and education trust fund. The budget update highlighted that the general fund is currently stronger than originally assumed, while the education trust fund is weaker. The speaker said the general fund began FY25 with a much larger balance than expected, while the education trust fund came in lower due to higher-than-budgeted adequacy spending and weaker business tax performance. Revenue trends showed the general fund slightly ahead year to date, but the education trust fund down significantly. The committee also discussed unbudgeted appropriations, including attorney general litigation, legal settlements, abandoned property claims, adequacy true-ups, and education freedom accounts, as well as the role of lapses and off-budget items in the final balance. Members asked about the delayed liquor commission audit and whether it could affect revenue forecasts. Staff said the delay was mainly caused by the commission’s switch in point-of-sale systems and staffing losses, but did not expect major ongoing reporting issues. They also noted that liquor fund variances are more likely tied to Medicaid expansion costs than to commission operations. The governor’s office was said to be working on possible budget reductions, but no January request to the fiscal committee was expected. Commissioner Lindsay Stepp of the Department of Revenue Administration then presented an overview of state revenue sources, focusing first on the meals and rentals tax. She explained that DRA administers 14 taxes that account for most state revenue, and that meals and rentals tax growth has slowed after strong post-pandemic gains. She described factors affecting the tax, including employment, inflation, fuel and food prices, wages, and weather, and noted that online platforms like Airbnb have improved compliance by collecting and remitting tax on behalf of hosts. Members asked about short-term rental compliance and how DRA identifies unlicensed rentals; Stepp said referrals, anonymous tips, and platform data help enforcement.

Transcript Highlights:

• That's the key to lower rates.”
• That's the key to lower rates.”
• That's the key to lower rates.”
• That's the key to lower rates.”
• </c><02:15:33.880><c> minus</c> rate rather than the earned rate minus rate rather than the earned rate

Committee: House Labor, Industrial and Rehabilitative Services

Keywords: 1189, house, all

Transcript Highlights:

• So what this rates. That's not right.
• 5.7 times North Dakota's top rate, 3.7 times Iowa's flat rate, and 1.86 times Wisconsin's top rate, while
• The adoption of this rate would place Minnesota as the highest corporate tax rate in the country.
• While the word rate in the country.
• top tier rate in the country.

Committee: Senate Taxes

Keywords: 1187, senate, all