Transcript Highlights:

• This bill aims to make provisional ballot reporting consistent, requiring them to be credited to early
• To the conduct of randomized county election audits. Bill favorably to the whole Senate.
• To the conduct of randomized county election audits. Bill favorably to the whole Senate.

Bills: SB1065 , SB2117 , SB2217 , SB2363 , SB2533 , SB2742 , SB2743 , SB2881 , SB2964 , SB3013 , SB3014

Committee: Senate State Affairs

Transcript Highlights:

• The extension of the child care tax credit is reduced from an additional three years to an additional
• The provisions modifying allocations of the Strong Family Tax Credit Program were adjusted under the
• Walk me through the decision to reduce the child tax credit from three years to one year.
• And then we are lowering the school tax credit for kids basically just for a year.
• And then we are lowering the school tax credit for kids basically just for a year.

Transcript Highlights:

• One is for CSPP auditing support.
• support from the Office of State Audits and Evaluations to help address the existing backlog for CSPP
• audits.
• We also appreciate the addition of staff for auditing.
• We’re putting California’s most vulnerable residents at credit risk. Thank you.

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between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout.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:

• The systems in place to provide these protections are consistently audited and reviewed.
• by requiring a standardized method that gives equal weight to AP, IB, on-ramps, and academic dual credit
• An amendment was added in the House that clarifies that while AP, on-ramps, and academic dual credit
• courses must receive equal weight, workforce-oriented dual credit courses may be weighted differently
• faculty who work... part-time or on a temporary research assignment off-campus who may also teach dual credit

Bills: SJR27 , SB7 , SB27 , SB57 , SB66 , SB140 , SB293 , SB413 , SB437 , SB467 , SB506 , SB510 , SB512 , SB571 , SB710 , SB785 , SB800 , SB850 , SB863 , SB865 , SB904 , SB905 , SB973 , SB974 , SB1191 , SB1281 , SB1300 , SB1362 , SB1494 , SB1504 , SB1522 , SB1567 , SB1579 , SB1580 , SB1723 , SB1760 , SB1838 , SB1923 , SB1946 , SB1957 , SB1964 , SB2121 , SB2167 , SB2221 , SB2321 , SB2368 , SB2373 , SB2407 , SB2431 , SB2477 , SB2587 , SB2615 , SB2807 , SB2965 , SB2986 , SB3039 , SB3047 , SB3070 , SB1 , SB8 , SB12 , SB13 , SB15 , SB17 , SB21 , SB30 , SB37 , SB260 , SB268 , SB331 , SB379 , SB441 , SB447 , SB457 , SB509 , SB568 , SB650 , SB763 , SB1198 , SB1405 , SB1506 , SB1540 , SB1566 , SB1610 , SB1637 , SB1660 , SB1833 , SB2018 , SB2024 , SB2155 , SB2217 , SB2308 , SB2337 , SB2601 , SB2753 , SB2778 , SB2878 , SB2900 , SB2972 , SB3059 , HB4 , HB145 , HB300 , HB493 , HB2011 , HB2067 , HB2516 , HB2525 , HB2885 , HB2974 , HB3071 , HB3372 , HB3556 , HB3595 , HB5138 , HB5246 , HB40 , HB46 , HB 119 , HB705 , HB1545 , HB2017 , HB2963 , HB3642 , HB3909 , 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 , HB796 , HB1523 , HB5294 , HB748 , HB3395 , HB180 , HB3171 , HB146 , HB5596 , HB5694 , HB 1135 , HB3225 , HB186 , HB1449 , HB3793 , HB 112 , HB 104 , HB3336 , HB3520 , HB3320 , HB5663 , HB2399 , HB 111 , HB3483 , HB4580 , HB3748 , HB632 , HB4730 , HB5690 , HB5689 , HB3385 , HB4359 , HB5381 , HB 123 , HB5606 , HB 1057 , HB3664 , HCR141 , HCR40 , HCR59 , SR695 , SCR54 , HCR153 , HCR166 , HCR168 , SJR27 , SB7 , SB57 , SB66 , SB140 , SB293 , SB413 , SB437 , SB467 , SB506 , SB510 , SB512 , SB571 , SB710 , SB785 , SB800 , SB850 , SB863 , SB865 , SB904 , SB905 , SB973 , SB974 , SB1191 , SB1281 , SB1300 , SB1362 , SB1504 , SB1522 , SB1567 , SB1579 , SB1580 , SB1723 , SB1760 , SB1838 , SB1923 , SB1946 , SB1957 , SB1964 , SB2167 , SB2221 , SB2321 , SB2368 , SB2407 , SB2477 , SB2587 , SB2615 , SB2807 , SB2965 , SB2986 , SB3039 , SB3047 , SB3070 , HB40 , HB 119 , HB705 , HB1545 , HB2017 , HB2963 , HB3642 , HB3909 , SB17 , SB21 , SB509 , SB1198 , SB1506 , SB1833 , SB2155 , SB2601 , SB2778 , HB300 , HB2011

Transcript Highlights:

• Chairman, but I added language there to say no discount is applied when the primary residence credit
• other item that's highlighted that says the discount must be applied before the primary residence credit
• And if they did, what happens if we go to $1,680 on the primary resident tax credit and revert back to
• the way $1,680 on the primary resident tax credit and revert back to the way the discount was applied
• When you look at our primary residence credit right now, I think the number is 40%.

Summary: The subcommittee met with a quorum, approved the prior minutes, and focused primarily on property tax statement issues tied to the primary residence credit and the 5% early-payment discount. North Dakota Association of Counties representatives said the current special-session language creates problems because the discount is being applied even when no taxes are ultimately owed, and because the discount is calculated before the PRC funds are actually received. They recommended reverting to the prior law so the discount is applied after the PRC, and noted that all four programmers said they could revert the software to the earlier version if needed. The committee also reviewed a bill draft to remove the legislative tax relief line item from the required contents of the property tax statement. Members agreed the current line item is not especially accurate or useful on the statement, and several members said the committee should go further by adding clearer taxpayer education, such as a pie chart or other supplemental breakdown of where property taxes go. County officials said some counties already provide supplemental charts or explanatory material, but others would need help with printing, mailing, or formatting. To support that idea, staff presented a second bill draft creating a grant program, administered through the Association of Counties with OMB as a pass-through, to reimburse counties for supplemental property tax statement information and related administration. After discussion, the committee voted unanimously to combine the two bill drafts into one recommendation and forward it to the full Tax Reform and Relief Advisory Committee. The subcommittee then voted to adjourn after directing staff to prepare its summary and recommended bill draft for the interim report.

Transcript Highlights:

• They put a lot of investment into tax credits, $5,000 for anyone with no income threshold for a while
• They put a lot of investment into tax credits, $5,000 for anyone with no income threshold for a while
• And the federal credit has moved a lot of sales up in quarter three of last year from quarter four.
• those greenhouse gas emissions to be able to qualify for the tax credit.
• But because it's on the books, it becomes an audit gotcha.

Bills: HB2111 , HB2495

Committee: Senate Transportation

Keywords: Interstate 5 bridge, toll facility, bond retirement, transportation, state funding, vehicles, streetcar operation, public safety, urban regulation

Transcript Highlights:

• They put a lot of investment into tax credits, $5,000 for anyone with no income threshold for a while
• They put a lot of investment into tax credits, $5,000 for anyone with no income threshold for a while
• And the federal credit has moved a lot of sales up in quarter three of last year from quarter four.
• those greenhouse gas emissions to be able to qualify for the tax credit.
• But because it's on the books, it becomes an audit gotcha.

Summary: The Senate Transportation Committee held a work session on electric vehicles, renewable fuels, hydrogen, and related transportation investments, followed by public hearings on several bills. Agency presenters from WSDOT, Commerce, and Ecology described the Electric Vehicle Coordinating Council’s work, Washington’s slowing EV adoption growth, charging infrastructure gaps, and programs such as NEVI, ZEVIP, and a new medium- and heavy-duty incentive program. Members asked about fast-charging standards and whether higher-capacity chargers could be supported. Commerce also outlined renewable fuels and sustainable aviation fuel efforts, including the Office of Renewable Fuels, hydrogen and SAF modeling, technical assistance, and the Cascadia Sustainable Aviation Accelerator’s partnerships and funding. WSDOT then discussed hydrogen investments in transit, aviation, backup power, and corridor planning, while Ecology explained the alternative jet fuel programmatic environmental impact statement, its scope, timeline, and how it will support future project review. In the public hearing on Substitute House Bill 2114, the committee heard testimony supporting a no-fee replacement process for defective license plates within two years of issuance, with optional fee waivers later; the sponsor and county auditors said peeling or unreadable plates are a real customer-service problem, especially in eastern Washington. The hearing on House Bill 2111 concerned allowing the I-5 Bridge Replacement Project toll facility bond retirement account to keep its interest earnings instead of sending them to the general fund; the prime sponsor said it is a straightforward fix requested by the state treasurer. Substitute House Bill 1823 would update Transportation Improvement Board statutes by replacing “non-motorized” with “active transportation” and removing obsolete references; TIB said it is a cleanup bill that aligns statutes with current grant practices and complete streets policy. The committee also heard House Bill 2495, which would let the City of Seattle direct immediate impoundment of unattended vehicles blocking streetcar operations, similar to existing authority for Sound Transit. Seattle’s streetcar manager said blocked tracks cause frequent delays and that the bill would reduce waits for police authorization and restore service faster. Public testimony and sign-in counts were noted for each bill, but no votes were taken in the transcript, and the meeting concluded after the final public hearing.

Transcript Highlights:

• According to a DEED audit, an estimated 22% of employers subject to a random unemployment insurance audit
• It's saying in a random audit 22% of employers may have misclassified one or more employees.
• Our investors have taken advantage of the Minnesota angel tax credit program.
• We also like the angel tax credit.
• We also provide the angel tax credit.

Committee: Senate Jobs and Economic Development

Transcript Highlights:

• It seemed like some years they accrued PARA credits, but most of the time they did not.
• certainly do have the option of asking the state auditor to conduct even a more intense and thorough audit
• anything major, I think that the workers involved and all of us have the option of asking for a formal audit
• anything major I think that the the workers involved and all of us have the option of asking for a formal audit

Summary: The House Labor, Veterans and Military Affairs Committee met and first heard House Memorial 7, which asks Legislative Council Service, the State Personnel Office, DFA, and GSD to study the use of temporary, term, seasonal, casual, on-call, and other non-regular classifications in state government. The memorial was presented as a response to concerns that some workers are repeatedly terminated and rehired, sometimes after a one-day break, to avoid regular status and associated benefits. Testimony from CWA and AFSCME described long-term temporary workers at the National Hispanic Cultural Center and other agencies who allegedly do full-time work without health insurance, retirement, leave, or consistent pay progression, and who in some cases were denied union coverage. Committee members questioned the scope, definitions of temporary employment, and whether the issue should instead be referred to the state auditor; the sponsor said the study would gather data and recommendations first. The committee voted due pass, and House Memorial 7 passed unanimously. The committee then heard House Bill 177, which appropriates funds to the Veterans Services Department to contract for shelter and care of service and companion animals so veterans can access housing, medical care, and other services without fearing separation from their pets. Support came from the Veterans Services Department, Animal Protection New Mexico, and the Veterans and Military Families Caucus/Veterans Integration Center, all of whom said pets are often a barrier to veterans seeking care and that existing community-based animal boarding models could be used. The bill received no opposition, and the committee voted due pass with no opposition. Finally, the committee heard House Bill 43, a PERA cleanup bill intended to update and clarify the Public Employees Retirement Act and align it with administrative practice. Testimony focused on a provision allowing PERA to use licensed physicians, including out-of-state physicians who can be licensed in New Mexico, to serve on the disability review process when needed so disability cases are not delayed. Committee members raised concerns about ensuring medical expertise and avoiding abuse of the licensing flexibility, but PERA explained the change was meant to address recruitment difficulties and maintain timely review. The committee voted due pass on House Bill 43.

Transcript Highlights:

• We had some state agency audit findings that was present it us.
• as it relates to making sure that we have the personnel to do some of the monitoring of edits and audits
• Those are reviewed, of course, in some of them are independently audited by external parties.
• National Pediatric Readiness Projects Open assessment during the year in which the National Pediatric Credit

Transcript Highlights:

• And to their credit, the sheriffs and the constables are trying their best, they'll cover you.
• Contracts are going to be reviewed by our audit department.
• The audit department has ultimate authority to say, okay, yes, the terms of the contract are accepted
• transportation or fleet services because we have a contracting office and a purchasing agent under the audit

Bills: HB336 , HB554 , HB849 , HB 1033 , HB1338 , HB 1246

Committee: House S/C on County & Regional Government

Transcript Highlights:

• toward those hours, while the legislative auditor would track and report compliance through municipal audits
• If rules are violated, parole may still be revoked with credit for time served. See, no questions.
• Many of us sit on the audit advisory.
• Very often the municipalities that come to audit advisory can't find CPAs to do their municipal audits
• health care providers by prohibiting managed care organizations from using extrapolation in provider audits

Bills: SR134 , SR135 , SR136 , SR137 , SR140 , SR141 , SR142 , SCR75 , SCR77 , SCR12 , HB75 , HB1199 , HB221 , HCR89 , HCR96 , HCR103 , HCR108 , HCR58 , HB9 , HB177 , HB181 , HB198 , HB202 , HB223 , HB225 , HB387 , HB398 , HB457 , HB459 , HB540 , HB591 , HB616 , HB766 , HB775 , HB783 , HB797 , HB895 , HB906 , HB950 , HB975 , HB1028 , HB1052 , HB1057 , HB1076 , HB1100 , HB1139 , HB1155 , HB1160 , HB1182 , HB1186 , HB1220 , HB1222 , HB1223 , HB1224 , HB1228 , HB1231 , HB1245 , HB1256 , SCR3 , SB393 , SB401 , SB415 , SB426 , SB435 , SB487 , SB488 , SB523 , SB56 , SB163 , SB341 , SB504 , SB322 , SCR9 , SCR58 , SB35 , SB65 , SB215 , SB246 , SB249 , SB269 , SB282 , SB296 , SB323 , SB363 , SB369 , SB474 , SB490 , SB492 , SB500 , SB514 , HCR27 , HCR28 , HCR66 , HCR67 , HCR72 , HCR31 , HCR47 , HCR41 , HB363 , HB368 , HB377 , HB380 , HB386 , HB392 , HB431 , HB441 , HB559 , HB664 , HB685 , HB715 , HB741 , HB822 , HB856 , HB908 , HB980 , HB990 , HB999 , HB1010 , HB1243 , HB54 , HB137 , HB180 , HB192 , HB310 , HB321 , HB396 , HB512 , HB552 , HB578 , HB638 , HB663 , HB708 , HB717 , HB718 , HB1009 , HB1082 , HB1104 , HB1107 , HB1198 , HB1246 , HB27 , HB143 , HB205 , HB259 , HB267 , HB288 , HB308 , HB403 , HB405 , HB414 , HB417 , HB478 , HB546 , HB548 , HB555 , HB557 , HB609 , HB670 , HB672 , HB740 , HB779 , HB786 , HB796 , HB812 , HB848 , HB915 , HB917 , HB921 , HB930 , HB933 , HB1095 , HB1096 , HB1103 , HB1129 , HB1154 , HB1166 , HB1187 , HB1195 , HB1230 , HB316 , HB511 , HB799 , HB1039 , HB12 , HB66 , HB145 , HB167 , HB196 , HB213 , HB218 , HB222 , HB256 , HB291 , HB326 , HB352 , HB401 , HB430 , HB433 , HB434 , HB448 , HB456 , HB476 , HB481 , HB487 , HB492 , HB549 , HB579 , HB608 , HB621 , HB624 , HB626 , HB632 , HB637 , HB656 , HB722 , HB745 , HB804 , HB818 , HB821 , HB833 , HB864 , HB867 , HB874 , HB893 , HB909 , HB951 , HB968 , HB969 , HB978 , HB979 , HB988 , HB989 , HB1001 , HB1005 , HB1007 , HB1024 , HB1032 , HB1038 , HB1050 , HB1051 , HB1056 , HB1059 , HB1077 , HB1080 , HB1081 , HB1086 , HB1108 , HB1112 , HB1153 , HB1172 , HB1173 , HB1175 , HB1192 , HB1193 , HB1204 , HB1218 , HB1242 , HB1244 , HB1249 , HB1252 , HB1254 , HB17 , HB36 , HB41 , HB47 , HB73 , HB126 , HB133 , HB140 , HB159 , HB166 , HB211 , HB226 , HB271 , HB324 , HB337 , HB351 , HB399 , HB571 , HB712 , HB723 , HB726 , HB750 , HB759 , HB844 , HB966 , HB1006 , HB1018 , HB1036 , SB29 , SB42 , SB43 , SB78 , SB208 , SB217 , SB274 , SB300 , SB379 , SB382 , SB387 , SB441 , SB449 , HB74 , HB134 , HB258 , HB359 , HB468 , HB956 , HB1117 , SB149

Summary: The Senate met with 23 members present, opened with prayer and the pledge, and then took up a long calendar of resolutions and House bills. Early action included adopting numerous Senate resolutions, such as studies on the Upper Pontchartrain Basin, economic development boards, remote notarization, retirement system investments in China, and several commendations. The chamber also concurred in House Concurrent Resolutions on the Louisiana Maneuvers museum/trail study, roundabout education, plumbing code review, and economic ties with Taiwan, with most of these adopted unanimously or near-unanimously. A special recognition was also held for 2025-26 Teachers of the Year from Senate District 15. On the bill calendar, the Senate advanced a wide range of measures. Several bills dealt with education, public safety, and local government, including allowing virtual school students to participate in school activities, requiring mayoral training, updating rules for justice of the peace jurisdiction, and increasing penalties or fees in certain local matters. Other measures addressed health and human services, such as suicide prevention signage and 988 hotline placement on school IDs, Medicaid and provider payment rules, medical records fees for veterans, mental health protective custody procedures, and housing support for trafficking survivors. The chamber also passed bills on insurance, insurance-related venue rules, prompt payment to contractors, hazardous waste cleanup funding, and motor vehicle insurance requirements for out-of-state vehicles. The Senate also approved several criminal justice and public safety measures, including school threat penalties, autopsy photographs as evidence, impaired driving-related provisions, and restrictions on cell-cultured food products and labeling. Additional bills covered economic development and business regulation, such as wood pellet and brick manufacturing incentives, digital asset custody, CPA licensure pathways, and licensing for motor vehicle/recreational product dealers. Most bills were passed by wide margins, though a few drew notable opposition, including the constitutional and policy measures on gender/sex terminology, child custody arbitration, and the out-of-state vehicle insurance bill. Many bills were amended on the floor before final passage, and motions to reconsider were routinely laid on the table.

Transcript Highlights:

• A breach occurs in a credit union.
• Our members are audited and certified against international standards, such as ISO 275:2017.
• Audited and certified against international standards such as ISO-275-6.
• And by the way, when we do those audits, we do also test for any bias.
• and certified. ...where they are requiring those providers to be independently audited and certified

Summary: The Consumer Protection and Business Committee held a public hearing on House Bill 2112, which would require commercial entities, including some social media companies, to use age verification before allowing access to websites where more than one-third of the material is sexual content harmful to minors. Staff explained that the bill would require reasonable age verification methods, prohibit retention of identifying information, exempt bona fide news and public-interest sites, and authorize the Attorney General to enforce the law through civil penalties. The bill would also require warning notices on landing pages and advertisements, with content to be developed by the Department of Health. Prime sponsor Representative Mari Leavitt said the bill is intended to protect children from harmful online sexual content and argued that parental controls are not sufficient. She cited pediatric and public-health concerns, said the bill is modeled on laws upheld elsewhere, and emphasized that the measure is aimed at commercial entities rather than school-based sharing or general adult access. Supportive testimony from parents, clinicians, and advocates described early exposure to pornography, mental health harms, and the need to place responsibility on platforms rather than families alone. Opposition testimony focused on privacy, free speech, enforcement, and scope. Several witnesses argued that age verification systems create data-security risks even if data is not retained, that the bill’s definitions and one-third threshold are vague and could sweep in LGBTQ, health, educational, or artistic content, and that enforcement would be difficult against out-of-state websites. Some opponents said the law would push users to less-compliant sites and would not effectively protect children. A technology industry witness said the bill is narrow and comparable to carding for alcohol or tobacco, while a Free Speech Coalition representative said the law is ineffective in practice and offered to discuss amendments. No vote was taken during the hearing.

Transcript Highlights:

• I've been very focused on our defense budget efficiency. in auditability.
• managing the largest discretionary budget of the federal government, has yet to pass a full financial audit
• General Kaine, if you are confirmed, what steps will you take to ensure the DOD finally passes a full audit
• confirmed, that the chairman can throw other than to encourage the services to be prepared for that audit
• close with you on this matter trying to sort out a way that we can help them transition, take the credit

Committee: Senate Senate Armed Services Subcommittee on Personnel

Keywords: national security, military readiness, Kane nomination, defense budget, China threats, Russia, collaboration, modernization

Summary: The meeting centered on the nomination of retired Lieutenant General Dan Kane for Chairman of the Joint Chiefs of Staff, delving into various security concerns and the strategic environment facing the U.S. today. Testimonies highlighted the growing threats from adversaries such as China and Russia, with discussions around the necessity of maintaining and modernizing military capabilities to address these challenges. The need for agility in military operations and enhancing collaboration among various defense agencies was underscored. Further, concerns were raised regarding the defense budget and the importance of a strong national defense strategy were prevalent throughout the discussions. The committee members collectively emphasized the need for superior readiness and modernization to keep pace with global threats.

Transcript Highlights:

• It's to support dual credit programs in New Mexico's high schools. That's $10 million.
• If they have to have an audit finding to learn their lesson as they move forward, maybe each agency is
• Otherwise, we leave them with an audit. Finding, which in some cases may be a good thing.
• Have requested deficiency appropriations, and we will expand our annual financial compliance audit to
• One of the issues, to be brief, is that we have an independence required as an audit firm.

Committee: Senate Senate Finance

Transcript Highlights:

• You can do an audit-type thing where you randomly go here. Right.
• You can do an audit-type thing where you randomly go here. Right.
• of their program to say that audit of their program to say that they've<01:38:53.199><c> audited</c>
• </c><01:38:54.080><c> They've</c> they've audited their program.
• They've they've audited their program.

Summary: The committee reviewed a handout comparing House Bill 2 to current retirement law and walked through the bill section by section with staff from the retirement system. The discussion focused on vesting, earnable compensation, average final compensation, compensation-over-base limits, special duty pay, normal retirement age, re-retirement, and maximum benefit rules for Group 2/Tier B members. Staff explained that some provisions would restore pre-2011 rules, including counting certain end-of-career payments such as unused sick and vacation time in earnable compensation and reducing the AFC averaging period from five years back to three. They also described how the bill would eliminate the current cap on compensation over base, which mainly affects overtime, and noted that the actuarial cost of the AFC-related changes is interrelated rather than easily broken out by feature. A separate discussion covered the special duty pay limitation, which currently applies to Tier A and would be removed under the governor’s bill for both Tier A and Tier B members after their vested buy date. Staff said the actuary estimated that removing the special duty limitation would increase costs by about $13.9 million. Members also asked about the practical difference between overtime and special duty, with staff explaining that special duty generally involves work for a private third party, often police detail work, while overtime depends more on staffing and scheduling. The committee also reviewed the normal retirement age changes for Tier B and the possibility that some members would need to work longer to reach the new vested buy date. Members raised concerns about an ambiguity in the bill that could allow already-retired Tier B members to return to work, then re-retire and claim the higher benefits, or allow vested deferred members to stop working and wait for the new vested buy date. Staff said the governor’s office did not intend to allow that result and requested clarifying language, noting that the bill as drafted does not expressly prohibit it. The committee also discussed part-time and seasonal work after retirement, with staff explaining that such work generally does not restore membership unless the person takes a full-time position requiring enrollment. Finally, the committee reviewed the maximum benefit provisions and noted that HB 2 in the current year does not change the maximum benefit date or include the 1.5% annual escalator that had been part of the 2023 proposal, making the current bill more costly than the earlier version.

Transcript Highlights:

• So right now, if there were a federal audit...
• So right now, if there were a federal audit, which we know the audit of Medicaid is coming from the federal
• And those single audits are in addition to our JLAC audits.
• We lack enforcement, auditability, and compliance.
• This is statutory, but compliance should be auditable.

Committees: House Government , House House Government Committee of Reference

Transcript Highlights:

• These addition to the credit 318.
• The requirements are three credits of science, including one credit to satisfy all the Earth and Space
• </c><01:26:58.719><c> for</c> could exchange one of their credits for could exchange one of their credits
• an elective credit.
• And so I would really the credits.

Committee: House Education Policy

Transcript Highlights:

• So those are very solid credits.
• Credit to the team at the NMFA.
• And that's, you know, that's a credit strength that we now have to say, well, we did.
• Health care credits with the impact of the recent legislation that passed.
• We're sort of what's known as a gilt-edged issuer, a creamy credit.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• But what we want is to have those standardized become credits so then we can take it to the insurers,
• And the last time this was even audited was in 2021 by OEIS, as OEIS was starting up.
• PUC safety employees did the first and only independent audit that's ever been done.
• So all of this is publicly available in our sponsor letter for AB 1774, which requires audits.
• Well, that's why we have AB 1774, which simply requires the wildfire mitigation spending to be audited