Transcript Highlights:

• And you want a 10-year exemption from franchise taxes, and that would go into effect...
• Just all the exemptions from sales tax, capital taxes, tax credits, and franchise taxes.
• Representative Gates, with respect to exemptions for the sales tax, the franchise fees, is there the
• It's my understanding that the majority of that fiscal note is coming from the franchise tax credit,
• Texas, and there's a percentage of... ...that that's generating the fiscal note based on that 20% franchise

Bills: HB3619, HB3652, HB4572, HB4891, HB4941, HB5103, HB5105, HB5106, HB5224, HB5600

Keywords: surface estate, well plugging, Railroad Commission, landowner rights, liability, strategic reserve, gas supply, petroleum products, disaster response, Railroad Commission of Texas, energy security, emergency planning, oil and gas waste, environmental regulation, waste management, mining pits, groundwater monitoring, regulation, commercial disposal facilities, environmental standards

Transcript Highlights:

• And next we have our friends from the Franchise Tax Board. And if there's Mr. Rowan.
• I am Roger Lackey here with the Franchise Tax Board. I'm the chief financial officer here of FTB.
• My name is Abel Escobar, Director of the Financial Management Bureau for the Franchise Tax Board.
• Franchise Tax Board's mainframe primary and disaster recovery servers have reached end of market.
• The Franchise Tax Board is responsible for the books and records. ...review, and they will go in.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.

Transcript Highlights:

• We are now on the Franchise Tax Board. Item number four.
• All right, that will take us under this item, this heading, Franchise Tax Board.
• We have long regulated franchise offerings, but this law explicitly requires the third-party brokers
• It would require franchise pre-sale disclosures to help prospective franchisees understand the role of
• It's a system we call Francis, and this would facilitate the capture of third-party franchise broker

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• that drives an increase in forecast revenues, particularly in individual income tax and corporate franchise
• and corporate franchise taxes. and corporate franchise taxes.
• Minnesota's corporate franchise tax is closely related to the level of corporate profits and is the state's
• The<00:37:41.920> corporate<00:37:42.280> franchise<00:37:42.800> tax<00:37:43.200
• > is<00:37:43.400> forecast The corporate franchise tax is forecast to generate $6.6 billion

Bills: HF3425

Keywords: supportive housing, grants, housing assistance, funding, Minnesota Statutes, 1183, house

Transcript Highlights:

• please join me and direct your attention to the gallery as we proudly welcome to Texas McDonald's franchise
• McDonald's franchise owner-operators contribute to the economic development, supporting local farmers
• Over the years, I have enjoyed McDonald's both personally and as a franchise. as owner-operator for several

Transcript Highlights:

• please join me and direct your attention to the gallery as we proudly welcome to Texas McDonald's franchise
• Beyond job creation, McDonald's franchise owner operators contribute to the economic development, supporting
• Over the years, I have enjoyed McDonald's both personally and as a franchise owner operator for several

Transcript Highlights:

• please join me and direct your attention to the gallery as we proudly welcome to Texas McDonald's franchise
• Donald's franchise owner-operators contribute to the economic development supporting local farmers. suppliers
• Over the years, I have enjoyed McDonald's both personally and as a franchise. as owner-operator for several

Keywords: 1184, house, all

Transcript Highlights:

• Moving on to Article 2, income and corporate franchise taxes.
• Article 12 is the department's income and corporate franchise policy and technical article.
• Article 12 is the department's income and corporate franchise policy and technical article.
• Article 12 is the department's income and corporate franchise policy and technical article.
• franchise policy and technical article. franchise policy and technical article.

Keywords: 1187, senate, all

Transcript Highlights:

• Ari, you know, I need to know, I have no idea what it costs or what it means to license or to do franchising
• But that's our next step: our licensing and our franchise model.
• Ari, you know, I need to know, I have no idea what it costs or what it means to license or to do franchising
• But that's our next step is our licensing and our franchise model.
• So I just want to say thank you for having me. ...is our licensing and our franchise model.

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact held an informational hearing in Paramount as part of its “Pocketbook Tour,” focused on affordability, cost pressures, and household impacts in Los Angeles County. The first panel centered on workers and learners, with testimony from the UCLA Labor Center and the Southeast Los Angeles County Workforce Development Board. Speakers described how rising living costs, tuition, and low wages force many students to work long hours, often in unrelated, low-wage jobs, while struggling with food, rent, bills, anxiety, and limited financial aid. Recommendations included expanding state-funded work study, creating a statewide internship tax credit for small businesses, improving financial aid formulas to reflect regional cost of living, increasing flexibility for students, and strengthening worker-rights education and career pathways. The second panel focused on microbusinesses and small business affordability. Testimony from microenterprise advocates, the Los Angeles Regional Small Business Development Center Network, and local business owners described rising commercial rents, labor costs, tariffs, supply chain disruptions, insurance, utilities, and disaster-related pressures as major threats to small businesses. Witnesses emphasized that small businesses are central to local economies and asked the state to expand technical assistance, low-interest financing, disaster support, supply-chain development, and community-based outreach. They also urged more intentional support for microbusinesses and home-based entrepreneurs, including networks that connect them to resources and help them build collective buying power. Committee members asked about possible state actions, including tax credits for hiring local workers or interns, support for trades and apprenticeships, and ways to partner more closely with SBDCs and chambers of commerce. Public comment echoed the hearing themes, with speakers highlighting student hardship, nonprofit mental health funding, renewable energy jobs and internships, and the need for state support for clean-energy incentives. No formal votes were taken; the hearing concluded with closing remarks and adjournment at 11:05 a.m.

Transcript Highlights:

• These transfers are often described as general fund transfers, payments in lieu of taxes, or franchise
• Another commonly described GFT is called a franchise fee GFT. That's associated with...
• So that franchise fee GFT is in recognition of that, and it's to make the General Fund whole.
• Something that I'm trying to get my thoughts on: I know what franchise fees are for utility easements
• So is it a franchise fee assessed to the provider? If it's not a well, it's municipal loan.

Summary: During the meeting, legislative members discussed the practice of municipalities diverting water and sewer revenues to their general funds, which impacts infrastructure maintenance and project delays. Vice Chair Sparks proposed limiting public testimony to two minutes, which was adopted without objection. The committee heard from various witnesses, including Perry Fowler from the Texas Water Infrastructure Network, who emphasized that utility revenues should primarily support water services and that transfers should be transparent and justified. He noted that many utilities face financial pressures that could hinder infrastructure projects. Larry French from the Texas Public Policy Foundation highlighted the significant financial impact of water loss and general fund transfers, estimating the annual loss at $1.5 billion. He argued that these transfers can create disincentives for municipalities to address water loss issues. Brian Butcher, Assistant City Manager of Sugar Land, defended the city's cost allocation model for general fund transfers, asserting that they are necessary for equitable service provision and operational efficiency. The committee also discussed the implications of rising construction costs and the need for better procurement processes to ensure effective use of taxpayer dollars. The second part of the meeting focused on the New World Screwworm and the state's preparedness to manage potential infestations. Dudley Hoskins from the USDA outlined the federal response efforts and the importance of collaboration with state agencies. He emphasized the need for ongoing surveillance and the production of sterile flies to combat the pest. Dr. Philip Kaufman from Texas A&M discussed the historical context of the screwworm and the challenges posed by its potential reintroduction, urging proactive management strategies among livestock producers. The committee acknowledged the need for increased resources and research to effectively address the threat of the screwworm.

Transcript Highlights:

• Third, unfair termination of the franchise agreement.
• The amendment clarifies that a manufacturer cannot terminate or fail to renew a dealer's franchise agreement
• unless the dealer has substantially breached a material provision of the franchise agreement.

Summary: The committee met with a quorum present and heard a series of transportation-related bills, most of which were reported favorably. SB 532 would exempt 100% disabled veterans from paying Florida tolls. SB 1738 would allow certain counties that previously opted out of transportation concurrency to opt back in by maintaining current levels of service, though there were concerns about congestion and future growth. SB 1696 aimed to reduce transportation network company driver impersonation, allow transit authorities to contract with ride-share platforms, and permit those platforms to participate in state-funded paratransit trips. SB 1378, as amended, would allow courts to order restitution in standard leaving-the-scene crashes; the amendment made restitution discretionary and required that the driver caused or contributed to the crash. SB 1210 would increase penalties for red-light and stop-sign crashes and require bodily injury insurance for drivers who cause such crashes. SB 1820, via strike-all amendment, addressed dealer-manufacturer relations by requiring written explanations of performance measures, prohibiting retaliation against dealers asserting statutory rights, and limiting franchise termination or nonrenewal to substantial breaches. SB 1246 created a specialty license plate for safe coastal wildlife, with proceeds going to the Zoo Miami Foundation for conservation work and an amendment allowing up to 10% for administrative and marketing costs. The committee also considered SB 574, which would allow Florida residents with Purple Heart license plates to pass tolls free of charge; the bill was amended to change the plate reference to a specialty plate and was reported favorably. SB 1662, the FDOT department bill, was substantially revised by strike-all amendment covering a wide range of transportation issues, including USF’s role in the Florida Transportation Research Institute Consortium, Florida Transportation Commission provisions, seaport and airport-related changes, strategic space infrastructure, sewer lines in rights of way, small county road assistance, aggregate supply chain programs, and Jacksonville Transportation Authority board appointments. Testimony on SB 1662 included support from USF and the Florida Public Transportation Association, which raised concerns about added oversight and bureaucracy for transit systems. Most bills received support from affected stakeholders, and several were amended before final favorable votes. Roll calls were taken on each measure, and all of the listed bills were reported favorably by the committee. At the end of the meeting, senators requested to be recorded as voting in the affirmative on several bills, and the committee adjourned after a brief personal privilege remark from Chair Collins.

Transcript Highlights:

• The funding structure is different, and there are just... franchises, I think the smaller counties relative
• charge for streaming applications that they should not be charging for in any way under the cable franchise
• This bill moves towards solving an issue, making sure our streaming services do not pay franchise fees
• , and adds language to ensure that anyone who currently pays franchise fees continues to pay these fees

Bills: HB4, HB20, HB40, HB46, HB101, HB112, HB117, HB121, HB127, HB146, HB150, HB186, HB229, HB426, HB521, HB541, HB549, HB632, HB713, HB796, HB1052, HB1106, HB1135, HB1234, HB1306, HB1403, HB1523, HB1532, HB1690, HB1960, HB2035, HB2217, HB2399, HB2488, HB2517, HB2594, HB2655, HB2686, HB2731, HB2757, HB2820, HB2963, HB3005, HB3053, HB3073, HB3225, HB3320, HB3333, HB3336, HB3441, HB3483, HB3516, HB3520, HB3697, HB3748, HB3793, HB3848, HB4099, HB4134, HB4144, HB4158, HB4233, HB4236, HB4285, HB4350, HB4359, HB4464, HB4580, HB4690, HB4730, HB4848, HB4904, HB4995, HB5196, HB5294, HB5381, HB5435, HB5437, HB5509, HB5606, HB5646, HB5658, HB5661, HB5663, HB5666, HB5672, HCR40, HCR59, SB867, SB2919, SJR5, SJR27, SB4, SB6, SB7, SB9, SB13, SB15, SB23, SB27, SB30, SB40, SB57, SB66, SB140, SB268, SB293, SB331, SB413, SB447, SB457, SB467, SB506, SB510, SB512, SB571, SB650, SB763, SB777, SB785, SB800, SB850, SB863, SB865, SB973, SB974, SB1191, SB1281, SB1300, SB1362, SB1494, SB1522, SB1540, SB1567, SB1579, SB1580, SB1610, SB1660, SB1723, SB1760, SB1838, SB1923, SB1946, SB1957, SB1964, SB2018, SB2024, SB2121, SB2167, SB2217, SB2221, SB2321, SB2337, SB2368, SB2373, SB2407, SB2431, SB2477, SB2587, SB2615, SB2753, SB2807, SB2900, SB2965, SB2972, SB2986, SB3039, SB3047, SB3059, SB3070, SB1, SB17, SB21, SB260, SB379, SB509, SB1198, SB1405, SB1506, SB1637, SB1833, SB2155, SB2308, SB2601, SB2778, HB300, HB2011, HB2525, HB5246, HB100, HB101, HB119, HB227, HB252, HB322, HB346, HB654, HB705, HB718, HB721, HB824, HB1094, HB1234, HB1306, HB1506, HB1523, HB1629, HB1690, HB1868, HB1960, HB1973, HB2012, HB2035, HB2037, HB2078, HB2128, HB2213, HB2240, HB2348, HB2520, HB2598, HB2686, HB2694, HB2820, HB3005, HB3057, HB3092, HB3112, HB3171, HB3181, HB3185, HB3333, HB3388, HB3516, HB3546, HB3619, HB3623, HB3629, HB3642, HB3686, HB3697, HB3749, HB3793, HB3812, HB3815, HB3848, HB3909, HB4081, HB4145, HB4157, HB4158, HB4170, HB4202, HB4211, HB4214, HB4233, HB4285, HB4350, HB4361, HB4463, HB4464, HB4466, HB4559, HB4630, HB4748, HB4765, HB4848, HB4894, HB4904, HB4995, HB5093, HB5196, HB5320, HB5437, HB5624, HB5650, HB5651, HB5652, HB5654, HB5655, HB5656, HB5658, HB5661, HB5662, HB5664, HB5665, HB5666, HB5670, HB5672, HB5674, HB5677, HB5679, HB5682, HB5689, HB5690, HB5694, HB5695, HB5698, HB5699, HCR46, HCR76, HCR81, HCR83, HCR84, HCR111, HB748, HB5652, HB3395, HB180, HB1306, HB5650, HB4894, HB1629, HB5698, HB3171, HB2694, HB5664, HB4690, HB4464, HB3623, HB2520, HB2213, HB252, HB146, HB5596, HB3619, HB5320, HB5651, HB5670, HB5665, HB5437, HB5679, HB5661, HB5662, HB5654, HB5672, HB5656, HB2035, HB721, HB346, HB5695, HB5694, HB5674, HB3185, HB2348, HB1135, HB101, HB5666, HB5677, HB5682, HB5658, HB4144, HB3642, HB3815, HB2686, HB2012, HB1960, HB227, HB654, HB4158, HB4630, HB1523, HB1973, HB3333, HB3697, HB3546, HB3225, HB2820, HB186, HB119, HB4466, HB4170, HB3909, HB4081, HB4145, HB4285, HB4463, HB4995, HB5624, HB1449, HB2598, HB3629, HB4361, HB824, HB1868, HB4848, HB40, HB117, HB3686, HB3793, HB112, HB104, HB718, HB4904, HB4202, HB4765, HB4559, HB4350, HB4214, HB3388, HB3112, HB5196, HB3516, HB3092, HB4233, HB1094, HB2037, HB3005, HB3848, HB121, HB3336, HB5294, HB5646, HB4236, HB1052, HB5509, HB5435, HB3520, HB3320, HB2517, HB2488, HB5663, HB2731, HB3073, HB2655, HB2399, HB541, HB4099, HB111, HB1532, HB3483, HB2963, HB4580, HB3748, HB713, HB632, HB426, HB4730, HB127, HB5690, HB5689, HB5655, HB3385, HB2757, HB4359, HB5381, HB20, HB123, HB549, HB5606, HB2217, HB2594, HB796, HB1057, HB3664, HCR141, HCR40, HCR59, HCR76, HCR81, HCR46, HCR111, HCR83, HCR84, SJR36, SJR50, SJR63, SCR12, SCR39, SB2023, SB62, SB666, SB847, SB284, SB854, SB810, SB1505, SB583, SB507, SB1434, SB1772, SB2016, SB1122, SB731, SB397, SB508, SB1436, SB287, SB1882, SB393, SB1791, SB209, SB2429, SB1085, SB1975, SB2717, SB1262, SB636, SB2056, SB884, SB1200, SB1845, SB2458, SB801, SB3014, SB3013, SB758, SB2797, SB2076, SB2876, SB1640, SB1449, SB1181, SB1234, SB2926, SB2841, SB1528, SB1854, SB317, SB1250, SB2082, SB1237, SB2819, SB629, SB2608, SB1602, SB2009, SB867, SB640, SB1698, SB2680, SB913, SB1071, SB1086, SB1087, SB1483, SB1444, SB1553, SB1556, SB1703, SB2133, SB2297, SB2298, SB2622, SB2955, SB2334, SB1367, SB2044, SB2363, SB2565, SB1888, SB3036, SB3057, SB3043, SB3063, SB3035, SB203, SB2688, SB2522, SB2459, SB2655, SB2251, SB1884, SB2928, SB2566, SB2549, SB2553, SB2919, SB1944, SB1232, SB1798, SB2603, SB2607, SB2683, SB1319, SB3045, SB3071, HB40, HB117, HB121, HB426, HB541, HB713, HB1052, HB1532, HB2217, HB2488, HB2517, HB2655, HB2757, HB2963, HB3073, HB3697, HB4099, HB4144, HB4158, HB4236, HB4285, HB4848, HB5435, HB5437, HB5509, HB5646, HB5666, HB14, HB1240, HB796, HB1523, HB5294, SR559, SR587, SR614, SCR53, SJR59, SB10, SB22, SB25, SB34, SB36, SB38, SB261, SB777, SB924, SB1188, SB1318, SB1333, SB1398, SB1448, SB1621, SB1862, SB2405, SB2406, SB8, SB12, SB37, SB441, SB1566, SB2878, HB300, HB2011, HB5246, HB101, HB119, HB227, HB252, HB346, HB654, HB718, HB721, HB824, HB1306, HB1629, HB1868, HB1960, HB1973, HB2012, HB2035, HB2037, HB2213, HB2348, HB2520, HB2598, HB2686, HB2694, HB2820, HB3005, HB3092, HB3112, HB3185, HB3333, HB3388, HB3516, HB3546, HB3619, HB3623, HB3629, HB3642, HB3686, HB3815, HB3848, HB3909, HB4081, HB4145, HB4170, HB4202, HB4214, HB4350, HB4361, HB4463, HB4464, HB4466, HB4559, HB4630, HB4765, HB4894, HB4904, HB4995, HB5196, HB5320, HB5624, HB5650, HB5651, HB5652, HB5654, HB5655, HB5656, HB5658, HB5661, HB5662, HB5664, HB5665, HB5670, HB5672, HB5674, HB5677, HB5679, HB5682, HB5695, HB5698, HCR46, HCR76, HCR81, HCR83, HCR84, HCR111, HB1094, HB3171, HB3793, HB4233, HB5689, HB5690, HB5694

Keywords: applied sciences, career education, high school diploma, certificate program, work-based learning, job placement, high-growth jobs, technical training, business court, civil procedure, litigation, jurisdiction, arbitration, low-THC cannabis, dispensing organization, Texas Compassionate-Use Program, medical use, patient access, registration, healthcare

Transcript Highlights:

• For many years, no statute of limitations existed on the collection of income or franchise delinquencies
• . for on their income or franchise delinquencies for at the state level.
• Under current law, when federal status is stripped, the California Franchise Tax Board is required to
• This bill addresses that gap by giving the Franchise Tax Board authority to use its discretion to maintain
• Under current law, when federal status is stripped, the California Franchise Tax Board is required to

Keywords: 987, senate, all

Transcript Highlights:

• which drives an increase in forecast revenues, particularly in individual income tax and corporate franchise
• Minnesota's corporate franchise tax is closely related to the level of corporate profits and is the state's
• The corporate franchise<00:15:42.720> tax<00:15:43.199> is<00:15:43.440> forecast
• ><00:15:43.920> to<00:15:44.160> generate franchise tax is forecast to generate franchise
• Further, over time, the proportion of general fund revenues coming from more volatile corporate franchise

Keywords: 1183, house

Summary: Minnesota Management and Budget officials presented the February 2026 budget and economic forecast, saying the state remains in a strong financial position but faces continued structural imbalance and significant uncertainty. Commissioner Aaron Campbell said the FY 2026-27 balance is now projected at more than $3.7 billion, up about $1.3 billion from November, and the FY 2028-29 planning period is projected to end with a $377 million positive balance. He emphasized that the improvement comes largely from higher projected revenues, especially individual income and corporate franchise taxes, but warned that the state is increasingly reliant on more volatile sources such as capital gains, interest income, and corporate profits. State Economist Dr. Anthony Becker said the national outlook improved slightly, with stronger projected GDP, consumer spending, and investment, but weaker payroll growth and ongoing trade-policy uncertainty. He noted that the forecast was complicated by missing federal data because of the federal shutdown, and that tariffs, immigration policy, equity markets, and possible AI-related shifts all present risks. Revenue projections were raised for the current biennium, including individual income tax receipts, sales tax revenue, corporate franchise tax revenue, and other revenues, while Becker stressed that federal funding threats, especially involving Medicaid and other entitlement programs, could materially alter the outlook. State Budget Director Anna Mingi said general fund spending in the current biennium is projected to be $68 million lower than previously estimated, but planning-year spending is up $152 million. The biggest spending changes came from education, where special education costs rose sharply after updated local spending data, and from human services, where a new prepayment review process for certain Medicaid benefits reduced projected spending by $133 million this biennium and $105 million in the next. She also said discretionary inflation is now estimated at $1.04 billion, up $104 million from November. Campbell closed by saying the state’s reserve remains at a record $3.8 billion and that Minnesota’s AAA bond rating and reserve policy help protect against downturns. He cautioned, however, that the long-term structural imbalance remains about $3.4 billion in the planning years, or $2.3 billion excluding discretionary inflation, and urged policymakers to offset any new spending with reductions. No votes or formal actions were taken; the meeting was a presentation and question-and-answer session on the forecast.

Transcript Highlights:

• had, that the chairman has, is that we've sort of figured out how to help the bigger ones with the franchise
• So in franchise tax, for example, we have a small business exemption level, but we also have with in
• the franchise tax, a way that you trace common ownership so that all related entities are accurate.
• We focus a lot in this building on the franchise tax.
• And when I think about what the legislature did a few years ago in terms of doubling the franchise tax

Bills: HB8, HB9, HJR1, HB22, HB8, HB9, HJR1, HB22

Keywords: HB 8, school finance, compressed tax rate, maximum compressed tax rate, MCR, PYMCR, property tax, school district taxes, Education Code, Tax Code, state aid, school funding formula, local school taxes, Texas school finance, tax rate compression, public education funding, ad valorem tax, tangible personal property, income-producing property, business personal property

Transcript Highlights:

• Another commonly described category is called a franchise fee GFT.
• And so that franchise fee, GFT, is in recognition of this.
• That franchise fee GFT is in recognition of that, and it's to make the general fund whole.
• I know what franchise fees are for utility easements and things like that.
• So is it a franchise fee assessed to the provider that if it's not a, well, it's municipally owned?

Keywords: 1185, senate, all

Transcript Highlights:

• And the city of West Sacramento is pursuing, along with its regional partners, that franchise. facilities
• And the city of West Sacramento is pursuing along with its regional partners, pursuing that franchise
• The city is pursuing, along with its regional partners, that franchise, anchored by a new ballpark and
• departing for Las Vegas, this effort would allow our state to maintain its current number of MLB franchises

Keywords: 988, house, all

Transcript Highlights:

• And the city of West Sacramento is pursuing, along with its regional partners, that franchise. ...anchored
• member who got this initial... is pursuing the, along with its regional partners, pursuing that franchise
• departing for Las Vegas, this effort would allow our state to maintain its current number of MLB franchises
• Franchises, including here in Northern California.

Summary: The Assembly Committee on Arts, Entertainment, Sports, and Tourism heard several bills focused on California’s creative economy, sports development, and cultural preservation. SB 226 by Senator Cabaldon would clarify that infrastructure revitalization financing districts may be used for entertainment and sports facilities, with testimony from West Sacramento officials emphasizing that the tool would rely only on project-generated city tax increment and would not affect school districts, counties, or the General Fund. Members discussed the relationship between IRFDs and EIFDs and the distinction between infrastructure financing and direct subsidy of private sports teams or stadiums. SB 865 by Senator Ashby proposed support for destination music festivals, citing the economic impact of events such as Aftershock and Golden Sky in Sacramento and similar festivals elsewhere in the state. Supporters from Visit Sacramento and Danny Wimmer Presents said festivals generate substantial jobs, tax revenue, and tourism spending while promoters bear the financial risk. Several committee members and public witnesses supported the bill as a way to sustain the creative economy, local businesses, and opportunities for artists. The bill passed the committee on a unanimous vote and was sent to Appropriations. SB 1050 by Senator Ashby would require disclosures when synthetic performers are used in advertisements, including audio ads, to inform consumers and protect human performers from displacement. SAG-AFTRA and voice actor advocates argued that consumers deserve to know when an ad uses AI-generated likenesses or voices, while TechNet, the Motion Picture Association, broadcasters, and other industry groups opposed unless amended, raising concerns about overbreadth, audio-only implementation, private enforcement, and the need for clearer exemptions and definitions. Members generally supported the bill’s goal but noted technical issues to refine; it passed unanimously to Judiciary. SB 1073 by Senator Smallwood-Cuevas would create a voluntary tax checkoff to support the South Los Angeles Black Cultural District. Supporters described the district’s historic and cultural significance and framed the measure as a way to help preserve Black cultural assets amid limited public funding. Members discussed how the checkoff would appear on tax forms statewide, its voluntary nature, and whether it could serve as a model for other districts. The bill also passed unanimously to Appropriations, and the committee later adopted the consent calendar unanimously as well.

Transcript Highlights:

• already passed in Senate Bill 32 at the time we were doing a $25,000 exemption with a credit for franchise
• already passed in Senate Bill 32 at the time we were doing a $25,000 exemption with a credit for franchise
• by increasing that exemption, it’s similar to what you did a few years ago when you doubled the franchise
• A few years ago when you doubled the franchise tax, you're not only providing tax relief, you're providing

Bills: SB1331, SB1375, SB1443, SB1578, SB2251, SB2519, SB2553, SB2655, SB2764, SB2907, SB3030, SB3033, SB3035, SB3036, SB3037, SB3043, SB3047, SB3050, SB3051, SB3056, SB3057, SB3063, HB9, HB467, HB331, HB1244, HB1399, HB2559, HB2730, HB3307, HJR1, HJR99, SB3048, SB3052, SB3053, SJR78, HB1327, HB2723

Keywords: civil service, firefighters, police officers, municipalities, local government, repeal, voter petition, health care, provider participation, continuation programs, population-based regulation, health care provider participation, Medicaid, hospital funding, voluntary compliance, mandatory payments, public health, healthcare program, county participation, nonpublic hospitals

Summary: The Senate Committee on Local Government heard several bills, most of them left pending after brief public testimony. House Bill 331, by Rep. Patterson and sponsored by Sen. Hinojosa, would create a presumption that firefighters, police officers, and EMTs who suffer a heart attack or stroke within eight hours after a strenuous shift were injured in the line of duty for workers’ compensation purposes; testimony from a firefighters’ association supported the bill, and it was left pending. Senate Bill 2655, by Sen. Flores, would authorize Burnet County to establish a local provider participation fund to help support local hospital services; a hospital administrator testified in support, and the committee substitute was left pending. Senate Bill 1443, by Sen. Hughes, would extend the Northeast Healthcare Provider Participation District in three counties, and House Bill 3307, by Rep. Noble, would allow property tax arbitrators to complete required continuing education online; both were left pending without opposition. Senate Bill 3048, by Sen. Birdwell, would create the Bluebonnet Hills Municipal Management District in Midlothian and was also left pending. The committee then took up House Bill 9 and HJR 1, sponsored by Sen. Bettencourt, which would raise the business personal property tax exemption from $2,500 to $125,000 and place the constitutional amendment on the November 4, 2025 ballot. Business groups, realtors, and taxpayers’ advocates testified in strong support, saying the change would provide meaningful relief to small businesses and help balance earlier homeowner tax relief. The City of Fort Worth testified in opposition, warning of a revenue shift to homeowners and budget impacts, but the committee adopted the committee substitutes and reported both measures to the full Senate on 6-0 votes. The committee also heard House Bill 1399 and HJR 99, by Sen. Nichols, to exempt animal feed from property tax when it is already sales-tax exempt; no one testified against them, and both were left pending. Senate Bill 2553, by Sen. West, would let owners of historic archaeological sites protest land and structure appraisals separately, and it was left pending after supportive testimony. Senate Bill 2907 and SJR 78, also by Sen. West, would exempt certain perishable inventory, including food and some prescription drugs, from property tax if approved by voters; pharmacists, business groups, a researcher, and a coalition of retailers and food/medicine advocates supported the bill, and it was left pending. Finally, Senate Bill 1331, by Sen. Hancock and explained by Sen. Middleton, would lower the population threshold for certain municipal civil-service-related petition restrictions from 950,000 to 70,000; law enforcement representatives and a San Marcos police association supported it, and it was left pending. The committee then recessed until 15 to 30 minutes after adjournment.

Transcript Highlights:

• The House actually removed the franchise tax, clarifying that it would not be subject to a franchise
• This exemption did not exempt franchise tax.
• The House actually removed the franchise tax, clarifying that it would not be subject to a franchise
• This exemption did not exempt franchise tax.

Summary: The Senate convened with a quorum, received the House message that HB 35 had passed, and heard a gubernatorial message submitting Trinity River Authority board appointments for Senate confirmation. The chamber also adopted a slate of Senate resolutions by voice vote and later postponed reading and referral of bills and resolutions until the end of the calendar. Several members introduced bills with brief explanations before the Senate took them up under suspension of the regular order. The body then considered and passed a series of measures, often by wide margins, including SB 2846 on wildlife disease control and quarantine authority; CS SB 1224 requiring school superintendents or directors to report certain employee misconduct to local law enforcement; CS SB 2310 on transparency for degree and transfer requirements at public colleges; SB 1502 limiting school districts’ ability to exceed voter-approval tax rates after a failed TRE; CS SB 1141 on notice requirements before full adversary hearings in child-protection cases; CS SB 2568 exempting certain flood-control reservoirs from TCEQ permitting; SB 1524 on confidentiality of information about weapons in foster homes; CS SB 2925 creating a task force on modernizing manufacturing; CS SB 2269 on dispute resolution and enforcement for long-term care facilities; CS SB 1266 on Medicaid provider enrollment and disenrollment notices; SB 243 on migrant labor housing standards; SB 2200 on overweight vehicles transporting hazardous materials; CS SB 2480 on the Texas Physician Health Program; CS SB 1585 restricting government contracts with companies tied to foreign adversaries; CS SB 2357 establishing maternal health training; and SB 1551 requiring accessible AED placement in public schools. The Senate also debated more contested bills. CS SB 2019, which would extend vaccine exemption rules to medical and veterinary students, advanced only partway after a divided vote. CS SB 1442, directing a study on veterinary telemedicine relationships, and CS SB 1241, which would allow the Higher Education Coordinating Board to study alternative college entrance exams, prompted extended questioning about agency authority and whether changes should return to the legislature before taking effect. CS SB 2753, which would integrate early voting and election day voting into a single in-person voting period, was amended and passed to engrossment despite opposition. CS SB 2201, dealing with gang and foreign terrorist organization intelligence databases, and CS SB 2514, creating a DPS hostile foreign adversaries unit, drew detailed debate over civil liberties and national security. CS SB 2422, aimed at limiting Texas Medical Board discipline related to COVID-19 treatments and practices, also advanced after lengthy discussion and a close vote.