Transcript Highlights:

• that, on an annual basis, like our football team and our volleyball team, do generate more than they cost
• /c><00:20:45.840> more<00:20:46.159> than<00:20:46.320> they<00:20:46.559> cost
• <00:20:47.120> and that do generate more than they cost and that do generate more than they
• . um whether or not of their costs. um whether or not they're<00:28:28.240> putting<00:28:28.480
• will in addition the funds uh allocated will in addition to<00:36:18.480> um to um to um what

Bills: HB2384

Keywords: student-athletes, compensation, name image likeness, NCAA, Title IX, transparency, education, Hawaii, athletic programs, 910, house, all

Summary: The joint committees heard HB 2384, relating to student athlete compensation, with testimony largely in support from the University of Hawaiʻi at Mānoa Athletics, University of Hawaiʻi at Hilo Athletics, and several other supporters. UH Mānoa said the bill would create a framework for name, image, and likeness (NIL) policies, including education, financial literacy, agent regulation, transparency, and reporting. Supporters argued NIL is now a necessary part of college athletics to recruit and retain athletes, keep Hawaiʻi talent in-state, and remain competitive, while also helping student athletes develop as future leaders. One supporter also emphasized the need for financial guidance so young athletes do not mishandle NIL income. Committee members questioned why the bill would direct public funds to NIL payments rather than broader athletic operations or other student groups, whether other states are funding NIL directly, and whether the approach could create a bidding war. UH representatives said the university already has NIL contracts in place, but the bill would strengthen and formalize policies. They said the requested funding model includes about $5 million for NIL and $10 million for athletics operations, with the NIL amount intended to supplement private fundraising; they also noted UH has raised roughly $1.5 million to $2 million for NIL since July 1 and is targeting $3 million this fiscal year. Members also raised concerns about fairness, public spending priorities, and whether the university’s policies adequately protect student athletes. The committees voted to pass HB 2384 HD1 with amendments. The chair said the bill should be amended to explicitly state that allocated funds may be used by UH for NIL payments to student athletes, and asked the next committee to examine whether a different payment scheme, similar to those used elsewhere, might be more appropriate for public funds. One member announced a no vote, citing concerns about direct public funding of NIL and unequal treatment of student athletes versus other students. The JHA committee adopted the same recommendation, with some members voting with reservations. Afterward, the meeting moved on to HB 644 HD1 on single-use plastics, where the first testimony was in opposition from the Hawaii Food Industry Association and the Biodegradable Products Institute, both arguing the bill as drafted would improperly exclude certified compostable products and should better align with composting and certification standards.

Transcript Highlights:

• The programmatic costs.
• There's also professional development costs and programming in addition, which is approximately $40,000
• its very valuable resources allocates its very valuable resources thank<00:26:44.000> you<00:
• Sometimes the cost of the demolition to haul away the former building and equipment inside costs more
• The building and equipment inside costs more than it's worth, so this is a way to offset it.

Keywords: 1187, senate, all

Transcript Highlights:

• And I wanted to make sure that we that we captured both direct cost variable cost, meeting costs that
• Costs are fixed cost. Those should be budgeted and plan for accordingly.
• as opposed to increase in the cost increase in the census count of lowering the cost.
• It's not the reason ability we have written approve cost allocation plans for the department.
• and cost cost to contracts.

Keywords: 999, senate, all

Transcript Highlights:

• It's a cost burden problem.
• Zabur, is a cost to our budget.
• No, let's bend the cost curve for everyone and stop picking winners and losers.
• in direct and indirect costs.
• in direct and indirect costs.

Summary: The Assembly Committee on Revenue and Taxation met as a subcommittee and heard several bills, with members explaining that measures with significant fiscal impacts would be held for suspense or taken up later. AB 761 would let the Monterey-Salinas Transit District place a local sales tax measure on the ballot with approval from two-thirds of its board rather than needing approval from each member jurisdiction; supporters said it would preserve transit funding for veterans, seniors, and people with disabilities, while an opponent argued it would make it easier to raise a regressive tax. The bill was voted out 5-2 after being called for absent members. AB 1253, which would clarify property tax treatment for wildfire reconstruction beyond substantial equivalence, drew support from the Los Angeles County Assessor and the California Assessors Association but was sent to suspense. AB 8, dealing with hemp enforcement, intoxicating hemp products, and integration of hemp cannabinoids into the cannabis supply chain and tax system, drew strong support from cannabis operators and labor groups and opposition from small cultivators and public health advocates concerned about supply, tax revenue, and voter intent; it was also sent to suspense. The committee then heard AB 1138, a major expansion and modernization of the film and television tax credit program. Supporters, including entertainment unions, workers, studios, and local officials, said the bill would help keep production and jobs in California amid competition from other states and countries; opponents criticized it as picking winners and losers and argued broader business costs were the real problem. The bill was referred to suspense. AB 829, which would create a California Parkinson’s Disease Research Fund and voluntary tax contribution program to support research and services, received unanimous support from advocates and was approved 6-0 to Appropriations. AB 474 would exempt rental income from nonprofit home-sharing programs for low-income homeowners from state income tax and protect participants’ eligibility for certain benefits; supporters said it could help older adults age in place and address housing shortages, and the bill was sent to suspense after members asked for clarification on the fiscal estimate. The committee also heard AB 376, which would exempt wildfire settlement payments from state income tax for certain disaster survivors; supporters from rural counties said the money is meant to help victims rebuild and should not be taxed, and the bill was referred to suspense. Finally, AB 480 would allow developers using low-income housing tax credits to switch from allocated to certificated state credits after an award, with supporters saying it would maximize private investment and stretch housing dollars further; it too was sent to suspense. Throughout the hearing, members repeatedly emphasized the need to balance policy goals with fiscal impacts, and several bills were held or referred to suspense rather than voted out immediately.

Transcript Highlights:

• student's cost.
• When we were talking about the increased costs, or average cost per child, of the high-need fund, you
• The state's increased workers' compensation costs, mostly due to the rising cost of medical.
• FEMA estimates that this cost will be about $156 million. They will reimburse 75% of that cost.
• I see you've cost allocated this in the budget a little bit as well as I guess got a better number, but

Keywords: 959, house, all

Transcript Highlights:

• Education reading levels by county, by allocation.
• But in general, we're tasked with cost shares.
• But in general, we're tasked with cost shares.
• But we've been able to allocate that money really quickly.
• But we've been able to allocate that money really quickly.

Summary: The committee first recognized Mark Roper of the Economic Development Department for his long service and retirement, with members and the secretary praising his work on economic development across the state. Secretary Rob Black then presented EDD’s budget and special appropriation requests, describing strong recent job and income growth and outlining the department’s strategy around science and technology, site readiness, workforce development, foreign direct investment, and rural/community programs. He highlighted wins in advanced energy, quantum, space and defense, and biosciences, and asked for funding for quantum/DARPA matching funds, additional site readiness work, LIDA closing funds, JTIP training support, New Mexico Partnership, and healthy foods and other community programs. Members asked detailed questions about the quantum proposal, site readiness, the new mapping tool for industrial sites, workforce participation, trade missions, foreign investment, tariffs, water and produced water, tribal site evaluation, and public engagement on major projects. Black said the quantum request was intended to match federal dollars and build a workforce pipeline, that the site-readiness software would be a set enterprise license, and that the department was working with tribes and local partners on future site evaluations. He also said tariffs have created uncertainty but New Mexico’s infrastructure and foreign trade zones could help attract manufacturing, and he acknowledged concerns about transparency and community input while noting that some projects, such as Pacific Fusion, had gone through extensive public processes. The committee also discussed specific projects and funding balances, including Mantis Space’s move to Albuquerque, the status of Virgin Galactic’s spaceport lease, and the current LIDA fund balance and encumbrances. Black and Deputy Secretary Isaac Romero said the department was trying to use State Investment Council-backed venture funds to attract companies and that the new investments were already producing deals and jobs. Members generally supported the department’s direction but pressed for more targeted expertise, faster deployment, and stronger community involvement in future economic development decisions. Later, Secretary de Blassie of the Department of Health presented the department’s budget request and progress report. He said DOH had improved revenue cycle management, reduced old Medicaid-pending cases, increased census at facilities, improved budget and contract timeliness, and responded effectively to the measles outbreak. The department requested additional base funding for epidemiology and response, the DOH helpline, the Vital Records Virtual Vault, state labs, and the veterans home, along with special requests for respiratory vaccinations and marketing and lab equipment replacement. He also noted progress on MOUD and the medical psilocybin program, and said the department was not seeking to launch new programs given the limited time left in the administration.

Transcript Highlights:

• Funds cover costs associated with residency programs that may result in higher patient care costs in
• Hospitals are ranked from high to low based on their percentage of charity care costs to commercial costs
• Providers are divided into tiers based on the level of charity care costs to commercial costs and are
• paid a prescribed percentage of their charity care costs based on their tier assignment.
• Why is the cost for this program increasing, and what do you think is driving the cost? Mr.

Summary: The Legislative Budget Commission met with a quorum present and considered 12 budget amendments, most of which were adopted without opposition. The first amendment transferred $8.2 million in Department of Corrections general revenue authority from salary incentives to contracted services to support the phased demobilization of Florida National Guard troops assisting with correctional staffing. Senator Pizzo questioned the length of the Guard’s deployment and urged a long-term staffing solution, while the department said the Guard presence was being reduced and that about 2,200 employees were in training. The Department of State received an additional $618,391 in federal grant authority for library grants and private cloud costs, and the Department of Transportation’s two amendments were zero-sum work program changes: one realigned funds to production-ready projects and another added three projects over $3 million each to the current-year work program. The commission then approved several Agency for Health Care Administration amendments tied to Medicaid supplemental payment programs. These included funding for the Florida Cancer Hospital Program, indirect medical education payments, disproportionate share hospital payments for the state mental hospitals, the Low-Income Pool program, physician supplemental and public hospital payments, Florida KidCare, and Medicaid services realignment. Members asked about possible federal disallowances in the LIP and physician/public hospital programs, and agency staff said some disallowances were likely but the amount was not yet known. For KidCare and Medicaid, staff explained the changes were based on the December estimating conference, enrollment shifts, and updated actuarial assumptions, including changes to managed care regions and program design. The final amendment restored budget authority for a hospital direct payment program after a prior payment, including a $24.3 million CMS-related amount and $3.2 million in administrative fees, was not processed before fiscal year-end and reverted. Senator Pizzo pressed the agency on how the payment was missed and whether any penalty applied; staff said the invoice was not received and processed in time and that communication issues contributed. After brief debate on each item, the commission adopted all amendments, with one recorded nay on the final item, and then adjourned.

Transcript Highlights:

• compensation-related costs, operating costs such as utilities, gas, vehicles, etc.
• Um, so again, just a reminder, these funds um includes uh cost of employer paid Health includes uh cost
• as<00:16:42.560> utilities costs operating costs such as utilities costs operating costs
• We do have a number of low-cost or no-cost technical change items included in the package as well.
• cost.

Keywords: 1187, senate, all

Transcript Highlights:

• And then once the legislature makes it appropriation, they use this data to equitably allocate resources
• The vast majority of the funds are allocated by the trial Court Budget Commission, which is one of our
• It could cost up to $100,000 event for investigation next.
• What is the cost? No for YA. >> Sheriff's office to purchase equipment for each county.
• But there were recurring costs that they were not ready to take it this time. >> Thank you.

Keywords: 999, senate, all

Transcript Highlights:

• Yes, that's up from $12 million that they were allocating for CTE and the previous pilot. Okay.
• The next set of lines, so that has an adjusted cost estimate.
• Again, this is not an all-in cost for this initiative. This is just year one.
• The all-in cost is going to be significantly more.
• It comes at a cost of other constituents that we also care deeply about.

Keywords: 996, all

Transcript Highlights:

• And looking at administrative of, um, ...in scope or delayed, and looking at administrative costs and
• would include determining how many projects were canceled or curtailed and the amount of overhead costs
• It's not the Metropolitan Transportation Program that actually allocates dollars to projects.
• State savings are deposited annually into the Safe Neighborhoods and Schools Fund, with 65% allocated
• This transparent and cost-effective process helps ensure the state continues to provide its members with

Keywords: 987, senate, all

Summary: The Joint Legislative Audit Committee met to consider new audit requests and received a status update from the State Auditor, who reported 10 JALAC audits in progress, several statutory audits underway, and that all audits approved in 2025 are moving forward. The committee first approved a consent calendar covering audits on University of California library resources, law enforcement information sharing, EDD unemployment insurance claims, and Housing and Community Development housing development monitoring. One requested audit on local law enforcement and human trafficking had been withdrawn before the hearing. The committee then debated and approved an audit request from Assembly Member DeMaio on the San Diego Association of Governments (SANDAG) and its road project management and use of transportation funds. DeMaio argued the audit was needed to examine whether restricted funds, voter-approved revenues, and project commitments were properly used, while SANDAG officials said the agency already undergoes extensive oversight and that its funding sources and project uses are governed by multiple existing audits and reporting requirements. Several members questioned whether the audit would duplicate existing reviews, but the motion passed after roll call. Next, the committee approved Senator Valadares’s audit request on Board of State and Community Corrections Proposition 47 grant administration. Supporters said the audit would assess whether grant recipients and BSCC oversight are producing reliable outcome and recidivism data and whether the funds are achieving public safety goals; BSCC responded that it already has internal controls, that the State Controller conducts biennial audits, and that its reported outcomes show reductions in homelessness, unemployment, and recidivism among participants. The committee also approved Senator Cortese’s audit of CalHR’s dental benefits procurement and contract oversight, prompted by concerns about stagnant annual maximums, provider network losses, and out-of-pocket costs for employees and retirees. CalHR said its current dental network remains strong, that it recently completed an RFP adding MetLife as a second carrier beginning in 2027, and that it maintains performance guarantees in its contracts. All three regular-calendar audit requests were approved, and the committee then completed add-on votes approving the earlier consent calendar items before adjournment.

Transcript Highlights:

• So, the governor's budget included a $60 million allocation for finance.
• <00:02:31.840> for included $60 million allocation for included $60 million allocation for
• Will you have to come back and ask for more if the study is going to cost more?
• Do you have an idea of what that evaluation will cost?
• There really isn't any way to contain the costs. I mean, everything we do is by statute.

Keywords: Call to Order: 00;15 Approval of Minutes: 01:22 Update on Generator replacement: 01:52 Update on Sheriff Fees: 13:28 Adjournment: 25:22, 958, all

Summary: The committee met for its fourth budget subreview session focused on personnel, public retirements, and finance. Members approved the minutes from the prior meeting and then heard from Finance Cabinet staff on two main items: a $7.5 million request related to generator systems and a sheriff’s fees budget request. The generator request was described as a preventive, life-cycle replacement and capacity-enhancement effort for 26 generators serving Frankfort-area state buildings, intended to protect continuity of government and expand beyond basic emergency power to support continuity of services. Members asked detailed questions about how many generators would be replaced, the cost per unit, the scope of the study, and whether the work could be phased. Staff said the $7.5 million would cover a full evaluation and any resulting engineering/replacement work, but the exact number of replacements was not yet known. They estimated the initial study would cost about $500,000 to $750,000, would take six to nine months once funded, and would produce building-by-building recommendations. Staff also said typical generator life cycles vary widely, often around 15 to 20 years but sometimes longer depending on run hours and usage. The committee then reviewed sheriff’s fees, with the Division of Local Government explaining that the state reimburses counties for several statutory sheriff-related costs, especially court security, which accounts for more than 90% of the claims. Staff said the current budget base is about $20 million, while actual spending has been running above $23 million, leading to a $3.5 million growth request to align the base with projected spending and reduce the need for non-general fund expenditure (NGE) adjustments. Members asked about claim volume, county participation, reimbursement controls, and whether the request reflected growth or underfunding; staff said all 120 counties submit claims, volumes have been fairly steady, and reimbursements are governed by statute and signed monthly certifications. No votes were taken on the requests, and the meeting adjourned after questions concluded.

Transcript Highlights:

• of starting a business like this and the importance of state support for the prohibitive equipment costs
• So it'll be used for all of that, but it does cost a lot. We have things all over the state.
• So, Madam Chair, and if I may, Senator Thornton, with allocations that each member of the legislature
• And then what is the anticipated cost, right? So perhaps standard are in here.
• Capital improvements, what is the plan, the cost allocation? Very good question.

Bills: SB47, SB195, SB196, SB197, SB198, SB78

Keywords: food recovery, composting, waste management, solid waste surcharge, organic waste reduction, environment, grants, advisory group, soil conservation, water resources, training services, outreach programs, environmental protection, animal care, veterinary services, spay and neuter, Las Vegas, community funding, animal welfare, animal shelter

Transcript Highlights:

• , and insurer cost reforms.
• growth in prescription drug and hospital costs.
• a week for just one week of health care costs.
• trends and cost drivers.
• They are managing rising drug costs.

Keywords: 995, all

Summary: The Joint Committee on Health Care Financing held a public hearing on a broad set of health care bills focused on cost, market oversight, pharmaceutical access, transparency, hospital closures, and pharmacy access. Chairs John Lawn and Cindy Friedman opened by emphasizing recent health care reforms and the need for further action on the drug supply chain, PBMs, private equity, and affordability. The committee heard testimony on several measures, including a Betsy Lehman Center bill to make technical changes and create a permanent trust account for federal and private funding, and bills on hospital profits and fairness, hospital closures and health planning, pharmacy deserts, and health care market oversight and pharmaceutical access. No votes were taken during the hearing. On the hospital profits bill, physicians and labor advocates strongly supported capping hospital CEO compensation at 50 times the lowest-paid worker, requiring greater financial transparency, and directing penalties from high-margin public hospitals into a Medicaid reimbursement fund. Testifiers argued that executive pay is excessive while frontline staff and safety-net services are under strain. Committee members raised concerns about unintended consequences, including whether hospitals might shift workers to contract status or lose executive talent, and whether the bill would actually direct money to the safety net. Supporters responded that the measure is one piece of a larger effort and that the bill’s Medicaid reimbursement provisions would help underserved hospitals. Testimony on market oversight and pharmaceutical access centered on rising health care and drug costs, PBM practices, and the proposal to give the Health Policy Commission authority to set upper payment limits for certain drugs. Consumer advocates, disability advocates, an independent pharmacist, the Attorney General’s office, and others supported stronger oversight, citing premium increases, affordability problems, and the impact of high drug prices on patients and community pharmacies. Pharma and some industry witnesses opposed parts of the bill, warning that upper payment limits could disrupt access, create legal issues, and fail to address the broader supply chain. The committee also heard support for stronger hospital closure notice and public hearing requirements, and for a pharmacy deserts bill aimed at identifying and addressing closures like the one in Roxbury that affected thousands of patients.

Transcript Highlights:

• So that's why it would have a cost.
• It does not have an MA cost.
• <00:38:22.720> to fund appropriation for some cost to fund appropriation for some cost to
• some of these costs is the facility fee. some of these costs is the facility fee.
• This provision would cost fees.

Keywords: 1187, senate, all

Transcript Highlights:

• operating costs are included.
• Because there's some startup costs, right? There are.
• So our anticipated cost for startup, and then there are some ongoing costs, is about $110 million.
• Could you, those startup costs, could those dollars be?
• Sort of the net cost or net benefit to the stakes?

Keywords: budget, House Bill 1, public education, healthcare, border security, federal funding, spending limits

Summary: The meeting primarily focused on reviewing the proposed budget for the upcoming biennium, with substantial discussions around House Bill 1 and its implications for public education, healthcare, and border security. The Comptroller presented a revenue overview indicating a total of $194.6 billion available for general purpose spending, which reflects a slight decrease compared to previous years due to fluctuating economic conditions. Members raised questions regarding spending limits and the impact of federal funding on state programs, highlighting concerns about the sustainability of funding in light of potential changes at the federal level.

Transcript Highlights:

• House Bill 533, by Representative Baralt, is an act in Title 15 relative to court costs to provide for
• filing fees and court costs to deposit in the Judicial Expense Fund for the 4th Judicial District.
• We're allocating $101 million for the Pete Maravich Assembly Center, which I love. I love.
• No cost to state or local governments. All the fees are generated within the constable's office.
• And the third one reports expenditures for personnel and administrative costs.

Keywords: 974, senate, all

Transcript Highlights:

• <00:49:56.040> into because as the next allocation into because as the next allocation into
• but all of our services are at no cost but all of our services are at no cost to<00:55:23.079>
• <01:17:31.199> Containment called the office of Cost Containment called the office of Cost
• and what does that cost?
• and what does that cost?

Keywords: 928, house, all

Summary: The committee held a work session on the Department of Business and Economic Affairs’ budget, with testimony from division leadership on staffing, funding sources, and program changes. Early discussion focused on vacant positions in the agency, including a senior planner tied to FEMA requirements, a federally funded program assistant, a program specialist to be reclassified during a planning reorganization, and two Housing Champions positions that were authorized but not funded in the current biennium and are requested for 2026-27. The witnesses also explained that temporary welcome center positions are filled as funds allow, and that the agency’s requested general fund increase is driven largely by the Division of Travel and Tourism Development and its formula-based funding. Members then reviewed rest areas, welcome centers, outdoor recreation, economic development, procurement, and workforce opportunity lines. The department said there are 12 rest areas, with 5.8 million foot counts in FY 24, and that welcome centers are generally open year-round, though Sutton is currently closed and staffing relies on a mix of full-time and temporary employees. The outdoor recreation position is federally funded through USDA and supports business outreach, trade shows, and industry promotion. In economic development, the agency said increased dues reflect participation in the Northern Borders Regional Commission, and that a marketing line item is intended to support recruitment and promotion of growth industries such as advanced manufacturing and life sciences. The Apex Accelerator Program was described as a state-federal partnership requiring a state match and providing government contracting assistance to businesses, while the Office of Workforce Opportunity was explained as a federally funded WIOA-related effort administered through multiple agencies and subrecipients. A major point of discussion was the proposed reduction to the Small Business Development Center, which members said had generated significant public concern. The department described SBDC as a highly effective technical assistance program for new and small businesses, but said the cut was one of the few places it felt it had room to reduce funding. Members asked about federal support and matching requirements for various programs, and the department said less than half of its overall budget is generally funded by the state and that some programs require state match. The committee also discussed travel and tourism marketing and the Joint Promotional Program, with the department saying those funds support broader advertising campaigns and grants to chambers and trade associations for events such as Bike Week, Restaurant Week, and the Seafood Festival. No votes were taken during the work session.

Transcript Highlights:

• <01:20:09.440> at talked about yesterday that it costs at talked about yesterday that it costs
• <01:53:53.040> for of dollars are already allocated for of dollars are already allocated for
• cost uh of our providers. cost uh of our providers.
• and the rate at which health care costs and the rate at which health care costs have<02:21:20.560
• <02:22:40.479> into If you want to bring these costs into If you want to bring these costs

Keywords: 981, all

Summary: The House convened, established a quorum, approved the journal, and then moved out of order to consider Senate Joint Resolution 10, a resolution celebrating Lunar New Year 2026. The resolution highlighted Colorado’s observed Lunar New Year holiday, the cultural significance of the holiday to Asian-American communities, and the contributions of Asian-Americans in Colorado. Several members spoke in support, including remarks about the Far East Center, Asian-American heritage, and the importance of recognizing the holiday statewide. The chamber also welcomed a number of guests and groups for the Lunar New Year observance, including state and international dignitaries, community leaders, and lion dancers. Representative Soer and others introduced guests and offered brief remarks; the House then recessed briefly for the celebration. After returning, the House adopted Senate Joint Resolution 10 by a vote of 60 ayes, with five excused and no no votes. Following the resolution, members made announcements about committee meetings and visiting student groups, including District 6 Day, Disability Rights Advocacy Day, and several school groups at the Capitol. The House then took up third reading of supplemental appropriations bills. House Bill 1150, a supplemental appropriation to the Department of Agriculture, passed on third reading. House Bill 1151, a supplemental appropriation to the Department of Corrections, prompted extended debate over prison funding, inmate care, staffing, and parole-related concerns; members argued both for humane treatment and for fiscal restraint, and discussion was still ongoing in the portion provided.

Transcript Highlights:

• I don't think it's any different than things that are currently allocated from whether the feds spent
• If we had the same exact number allocated to us next time, we wouldn't have to touch this bill.
• that materially increase the value of the capital or useful life of the direct cost.
• That they are nonprofits, that are community-owned, for example, so that they could keep their costs
• so that that are non-profits, that are community-owned, for example, so that they could keep their costs

Keywords: 908, all

Summary: The Appropriations Division met in a work session on the draft Rural Health Transformation appropriations bill, 25.1392.01000, with no public testimony taken. Legislative Council and the Department of Health and Human Services walked through the bill, which would appropriate about $397.8 million in federal grant funds over two federal fiscal years, provide transfer authority, allow certain federal funds to be used for salaries and wages without counting against existing transfer limits, and authorize OMB to adjust other agencies’ spending authority if they receive grant awards through HHS. The bill also includes several temporary statutory exemptions to help implement the program, plus recipient acknowledgement/reporting requirements, periodic reports to Legislative Management, and an immediate effective date upon filing. Committee discussion focused heavily on how the federal rural health transformation money can be used and administered. Department officials explained that CMS will review projects for allowability and sustainability, that the state has flexibility to move funds among categories, and that the grant is limited to 10% administrative costs. Members asked about whether the funding could support renovations, equipment, ambulances, bulk purchasing, food distribution, and other rural health ideas, and were told many details will depend on CMS approval and the eventual applications. Questions also addressed cash flow, timing of obligations and reimbursements, FTE funding, and whether grant recipients should be told the program will not continue beyond the federal period; officials said the language is meant to prevent expectations of automatic continuation, not to bar future legislative action. The committee also discussed the bill’s use of a two-year appropriation amount, with staff explaining that the state must appropriate enough authority to cover the federal grant cycle and that unused authority would lapse if the full amount is not received or spent. Members raised concerns about whether the bill’s language could limit creativity or future program design, but department officials and several members emphasized the need for flexibility because CMS may reject overly specific directives. After discussion, the committee voted to recommend the bill draft to the full committee; the motion carried on a roll call vote, and the chair said the full Joint Appropriations Committee would take up the bill at the special session next week.