Transcript Highlights:

• :49.519><c> screening</c> capital grounds will have screening capital grounds will have screening continue
• </c><00:03:35.920><c> grounds</c> security outside of the capital grounds security outside of the capital
• </c> safety when we're on the capital safety when we're on the capital grounds.<00:04:03.360><c> And<
• ,</c> the United States capital, the United States capital, there<00:09:59.760><c> are</c><00:10:00.240
• Uh my question here at the capital.

Transcript Highlights:

• Ferries' capital spending comes, for one, out of two state ferry-specific accounts, two capital-specific
• accounts: the Puget Sound Capital Construction Account, PSCCA, and the Capital Vessel Replacement Account
• Ferry's capital spending comes, for one, out of two state fairy-specific accounts, two capital-specific
• Sound Capital Construction account, P.S.C.C.A and the capital vessel replacement account that was set
• That’s operating and capital.

Committee: House Transportation

Summary: The committee received a detailed staff presentation on Washington State Ferries’ capital program, service levels, fleet age, and long-term funding needs. Staff said the system is operating with 21 vessels, no Sidney, B.C. service, and limited spare capacity, which leaves service vulnerable to disruptions. They described aging vessels, deferred preservation work, dry dock constraints, terminal needs, and the state’s electrification plan, including three new hybrid-electric Olympic class vessels now funded, one Jumbo Mark II conversion, and several terminal electrification projects. Members asked about ridership trends, biodiesel supply, procurement risk, sequencing of terminal electrification with new vessels, and the possibility of restoring international service; staff said many of those questions would need follow-up with the department. The presentation emphasized that current funding covers near-term needs, but long-term ferry capital needs exceed available resources by roughly $250 million to $300 million per biennium, with additional future needs not yet funded. The committee then heard from WSDOT maintenance operations staff on the condition of the highway system. The presentation said maintenance is increasingly reactive because of underinvestment, rising material costs, and the addition of new assets without corresponding operating funds. Staff highlighted winter operations, facilities that are mostly in poor or critical condition, a large equipment fleet, growing guardrail damage, and increasing pavement and bridge preservation backlogs. Members asked about asbestos in facilities, the effect of deferred maintenance, and whether the agency had previously warned about these needs. Staff said the program is funded at only about half of its facility need and that more than 40% of roadways are due or overdue for preservation. A separate preservation presentation focused on highways and bridges. Staff said WSDOT is below the lowest life-cycle cost for preservation and that delaying work can make repairs three to five times more expensive later. They reported that about 40% of roadways need preservation now, bridge conditions are nearing the federal poor-bridge threshold, and the agency is prioritizing the highest-risk bridge and closure threats first. The presentation cited an estimated $8 billion 10-year preservation need to change the trajectory of the system. Members asked about prioritization, whether other states face similar issues, and whether a cost-benefit analysis of earlier repairs versus later costs had been done; staff said they would look into those questions. Finally, the committee heard about bridge strikes and financial recovery. WSDOT bridge staff described recent overheight vehicle strikes on Bullfrog Road over I-90 and SR 410 over White River, noting the safety risks, closures, and repair costs. They outlined countermeasures such as improved trip-planning tools, outreach, and a possible sensor/beacon pilot on SR 410. Financial recovery staff said the agency collects about $20 million per biennium from third-party damage claims, recovering roughly 78% to 80% of billed amounts, with insurance claims and collections used to recoup costs. Members asked about prevention feedback loops and where recovered money goes; staff said recoveries go to the motor vehicle fund and that there is not a formal routine mechanism for design or policy changes from individual claims.

Transcript Highlights:

• Ferries' capital spending comes, for one, out of two state ferry-specific accounts, two capital-specific
• accounts: the Puget Sound Capital Construction Account, PSCCA, and the Capital Vessel Replacement Account
• Ferry's capital spending comes, for one, out of two state fairy-specific accounts, two capital-specific
• Sound Capital Construction account, P.S.C.C.A and the capital vessel replacement account that was set
• Ferries Capital Program averages $122 million.

Summary: The committee received a detailed staff presentation on Washington State Ferries’ capital needs, current fleet status, and long-range funding outlook. Staff described the current service pattern, ridership recovery since the pandemic, the aging fleet, and the state’s plan to add three new hybrid-electric Olympic-class vessels under the 2025 budget, with delivery expected around 2030-2032. Members also heard that the fleet is operating with no reserve vessel, that preservation time is below the desired level, and that terminal electrification and vessel conversion plans face timing, cost, and procurement risks. Questions focused on ridership trends, biofuel supply, design-risk allocation in vessel contracts, sequencing of terminal electrification with new vessel delivery, and the cost and feasibility of restoring international Sidney service, which would require a SOLAS-certified vessel. Staff then outlined ferry capital funding, saying recent spending and programmed needs are far above regular ferry-specific revenues and that the system relies on a mix of dedicated accounts, transportation package money, federal grants, and transfers. They said the near-term budget is balanced through 2027-29, but the longer-term capital outlook shows a shortfall of roughly $250 million to $300 million per biennium, with broader unmet needs much higher. The presentation estimated costs for future vessels, life extensions, terminal electrification, and additional Jumbo Mark II conversions, and noted that the current enacted plan does not fully fund fleet replacement, full electrification, or life extension of older vessels. Members asked for follow-up information on terminal seismic/environmental issues, contract options for additional vessels, and the timing and cost of alternative vessel designs. The committee then shifted to WSDOT maintenance and preservation. Pascoe Focktich described maintenance operations, including winter response, guardrail repair, facilities, equipment, and the effects of underfunding and inflation. He said most of the maintenance budget is fixed cost and labor, that material prices have risen sharply, and that many facilities are in poor condition with asbestos issues and deferred upkeep. He also noted growing guardrail damage, increasing pavement claims, and the burden of maintaining aging bridges and facilities. Members asked about prior planning for these needs, the role of asbestos, and whether more proactive sequencing could help budget decisions. Troy Suing then presented the highway preservation program, saying WSDOT is in the early stages of critical failure and has stretched preservation dollars as far as possible. He explained the distinction between pavement, bridge, and other highway asset preservation, said the department is largely reactive, and estimated that delaying work can make it three to five times more expensive later. He said about 40% of roadways are currently due or overdue for preservation, bridge conditions are nearing the federal poor-bridge threshold, and the department’s 10-year preservation need is about $8 billion. Members asked about the cost of deferring work, whether the department could do more if funded, how priorities are set, and whether other states face similar problems. Finally, Evan Grimm and Mike Fay briefed the committee on bridge strikes by overheight vehicles. They described recent incidents on I-90 near Cle Elum and SR 410 near White River, the damage and closures caused, and possible countermeasures such as public outreach, improved trip-planning tools, and a pilot warning system with sensors and flashing beacons. Fay explained the state’s financial recovery process for third-party damage, saying WSDOT recovers roughly $20 million per biennium and about 78% to 80% of billed damages, with money going to the motor vehicle fund. Members asked about prevention, insurance recovery, and whether the state uses claim data to inform future design or safety changes.

Transcript Highlights:

• Or surges in capital gains revenues and put those into reserve.
• So the state will tally up all of its capital gains revenues and compare that.
• Vibrating on the complexity of the formula used for the capital gains.
• It's slightly more excess capital gains.
• I think our estimate is that it's 65% excess capital gains. 35% base amount.

Transcript Highlights:

• Senate Bill 497 corrects an oversight in House Bill 25 of 2025, the capital budget.
• </c><00:09:20.959><c> Please</c> &gt;&gt; Welcome to Capital Budget.
• Um in House Bill 25, the capital budget.
• </c> funded by repurposing prior capital funded by repurposing prior capital appropriations<00:10:20.079
• </c> boilerplate language in every capital boilerplate language in every capital budget<00:10:27.200>

Committee: Senate Capital Budget

Transcript Highlights:

• After approval, the university needs to get approval from the Board of Regents for the capital program
• After approval, the university needs to get approval from the Board of Regents for the capital program
• </c><00:33:04.760><c> program</c><00:33:05.200><c> for</c><00:33:05.440><c> that</c> for the capital
• program for that for the capital program for that upcoming<00:33:06.279><c> year</c><00:33:06.799><c>
• </c> any monies appropriated for capital any monies appropriated for capital projects<00:33:10.799><c

Committee: House Higher Education

Summary: The House Committee on Higher Education met on March 14, 2025, and heard five University of Hawaii-related bills. SB 741 would create an external audit committee for the UH system and Board of Regents; UH and UHPA opposed it, saying existing internal and external audits already provide robust oversight, and the committee later recommended deferring the bill indefinitely as duplicative. SB 1252 SD2 would create a dementia training program for health care providers; the Alzheimer’s Association and other supporters said broader training is needed across the care workforce, while the university discussed using JABSOM as a coordinator. The committee deferred the bill to March 19 for an HD1 reflecting JABSOM’s suggestions and removing the appropriations/FTE language. SB 1502 SD1 would fund faculty positions, student programs, and facilities at UH Manoa and West Oahu for defense-sector workforce development. UH and Chamber of Commerce Hawaii supported the measure, describing a pipeline for students into intelligence, cybersecurity, and related fields, while one individual opposed it as too closely tied to military contracting and urged investment in other sectors instead. The committee amended the bill to remove FTE references and advanced it; the vote to pass with amendments was adopted, with several members voting aye and some excused. SB 1530 would require performance-based allocation of UH general funds and efficiency reporting. UH and the Attorney General’s office raised concerns, saying the bill’s metrics would apply across the entire general fund budget and were not practical as drafted; the committee also noted opposition from the Budget and Finance Department and individuals. SB 1624 SD1 would restrict RIM funds to renewing, improving, or modernizing existing facilities and require annual reports. UH opposed the bill and explained that RIM is a lump-sum approach used to address deferred maintenance and capital needs, with Board of Regents approval and quarterly reporting already in place; the Attorney General suggested constitutional amendments. The transcript ends during discussion of SB 1624, with no final action shown in the excerpt.

Transcript Highlights:

• Birdwell proposing a constitutional amendment providing for the creation of funds to support the capital
• First, it adds a $52 million limit on total capital appropriation between HEATH and the endowment, or
• HCR number 157 by Hunter, designating Rockport as the official redfish capital of Texas.

Bills: SB835 , SB3070 , SB22 , SJR59 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB973 , SB974 , SB865 , SB506 , SB781 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB505 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB2480 , SB3039 , SB3047 , SB3073 , SB2920 , SB2781 , SB826 , SB766 , SB2460 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB2595 , SB857 , SB37 , SB8 , SB10 , SB227 , SB261 , SB12 , SB15 , SJR27 , SB552 , SB835 , SB3070 , SB22 , SJR59 , SB25 , SB57 , SB127 , SB293 , SB441 , SB3059 , SB512 , SB241 , SB1718 , SB140 , SB2055 , SB2075 , SB2018 , SB1534 , SB1567 , SB785 , SB1233 , SB1580 , SB1663 , SB413 , SB447 , SB519 , SB467 , SB1579 , SB1191 , SB1021 , SB1838 , SB2807 , SB2835 , SB546 , SB2121 , SB2167 , SB2035 , SB2024 , SB1032 , SB1049 , SB1266 , SB1400 , SB1302 , SB401 , SB1596 , SB1281 , SB1242 , SB1343 , SB310 , SB1346 , SB2753 , SB2703 , SB2221 , SB1719 , SB2177 , SB800 , SB790 , SB748 , SB571 , SB1957 , SB1923 , SB1896 , SB1760 , SB1335 , SB2368 , SB2477 , SB2587 , SB2972 , SB2986 , SB2965 , SB1563 , SB1467 , SB1164 , SB1137 , SB614 , SB705 , SB961 , SB918 , SB955 , SB869 , SB850 , SB863 , SB1610 , SB1055 , SB2206 , SB457 , SB2337 , SB1362 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB973 , SB974 , SB865 , SB506 , SB781 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB505 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB2480 , SB3039 , SB3047 , SB3073 , SB2920 , SB2781 , SB826 , SB766 , SB2460 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB2595 , SB857 , SCR9 , HB5560 , HB762 , HB 107 , HB 114 , HB300 , HB138 , HB4386 , HB2495 , HB581 , HB3348 , HB5323

Keywords: sexual abuse, nondisclosure agreements, confidentiality agreements, public policy, victim rights, lottery, bingo, regulation, Texas Lottery Commission, Department of Licensing and Regulation, criminal offenses, state administration, audits, transfers, Texas, moving image industry, incentive program, film production, grant funding, job creation

Transcript Highlights:

• </c> and the capital fund so the capital and the capital fund so the capital funding<00:10:28.120><c>
• </c><00:38:26.119><c> needs</c><00:38:27.119><c> and</c> lot of capital needs and lot of capital needs
• </c> that you know 5 10 and 20 year Capital that you know 5 10 and 20 year Capital Improvement<00:40:
• a capital backlog that we has created a capital backlog that we estimate<01:10:47.920><c> to</c><01:
• </c><01:15:54.560><c> backlog</c> chipping away the capital backlog chipping away the capital backlog

Committee: Senate Housing and Homelessness Prevention

Transcript Highlights:

• They are the ones who build their own capital plan.
• And so we're continuously updating all of our capital plans for...
• As far as our capital...
• As far as our capital program, just recently this summer, our board approved a five-year capital improvement
• That helps you build a logical capital improvement program.

Committee: Senate Transportation

Summary: The Transportation Committee met to consider two bills and then held a lengthy discussion on Florida airport infrastructure. SB 246, presented by Senator Rodriguez on behalf of Senator Gruters, would authorize a UFC specialty license plate, with proceeds supporting the UFC Foundation’s charitable work. A UFC Foundation representative described community beneficiaries and said the plate would help raise funds for local charities. With no questions or debate, the committee voted SB 246 favorably. The committee also took up SPB 7012, a Department of Highway Safety and Motor Vehicles public-records exemption bill that would remove the October 1, 2026 repeal date for certain active investigatory records. Senator Avila moved to submit it as a committee bill, there was no objection, and it was reported favorably as a committee bill. The remainder of the meeting focused on the Comprehensive Airport Infrastructure Program. FDOT Secretary Jared Perdue outlined Florida’s aviation system, the department’s airport funding programs, and the state’s role as a financial partner in safety, capacity, preservation, and economic development projects. He said Florida has 128 public-use airports, 21 commercial-service airports, and four large-hub airports, and noted that airport funding is largely supported by gas-tax-related revenues, with additional support from documentary stamp revenue and other fees. He also discussed the new airport infrastructure planning requirements created last session and said all required airports had submitted plans. Committee members asked about the loss of aviation fuel tax revenue, workforce development, project timelines, and how FDOT prioritizes funding, with Perdue emphasizing safety, preservation, capacity, economic return, and matching funds. A panel from Miami, Orlando, Fort Lauderdale, and Tampa international airports then described major capital programs, passenger growth, and funding needs. The airports highlighted terminal expansions, parking, baggage systems, airfield rehabilitation, people movers, and other modernization projects, along with the importance of maintaining aging facilities while accommodating growth. They said FDOT and FAA grants are helpful but increasingly insufficient for runway and taxiway costs, and several panelists said passenger facility charges and other revenue tools are important to future self-sufficiency. Members also asked about workforce shortages, small-business participation, landing-fee negotiations, and non-aeronautical revenue. The panel said workforce challenges are most acute in trades and maintenance, small-business programs are active at each airport, and landing fees are negotiated with airlines to keep airports competitive while funding needed improvements.

Transcript Highlights:

• </c> million dollars report to the Capital million dollars report to the Capital Projects<00:04:07.920
• <00:07:21.640><c> $318</c> authorize capital projects totaling $318 authorize capital projects totaling
• </c> In the Treasury, we authorize capital In the Treasury, we authorize capital projects<00:08:55.720
• </c> authorize a maintenance pool capital authorize a maintenance pool capital project<00:14:52.400><
• </c><00:26:47.400><c> projects</c> we authorize the capital projects we authorize the capital projects

Summary: The Kentucky Senate Appropriations and Revenue Committee met with a quorum and first took up House Bill 503, the legislative branch budget, adopting a committee substitute and reporting it favorably. The chair said the Senate version fully funds defined calculations, provides 2% raises in each fiscal year for legislative employees, removes a paragraph on operating expense reductions, and includes $1 million in the first year for a judicial branch salary study. House Bill 504, the judicial branch budget, was then amended and reported favorably; changes included 2% annual raises for judicial employees, revised operating expense language, $1 million each year for county current services, retention of Boyle County fit-up language, reporting requirements for smaller capital projects, full funding for nine judges added in 2022, and removal of furlough prohibitions and certain budget implementation language. Both bills passed the committee unanimously with favorable expressions to the floor. The committee then considered House Bill 500, the executive branch budget, adopting a committee substitute before hearing a lengthy summary of major spending and policy changes. The chair described statewide 2% annual employee raises, agency base reductions with many exemptions, increased school safety and 911 funding, veterans and military funding, local government and severance-related changes, attorney general and auditor funding, pension and retirement system support, education funding changes including SEEK, postsecondary and scholarship provisions, public safety and corrections funding, and multiple capital projects. The chair also highlighted Medicaid-related provisions, including added waiver slots, increased state-directed payments, a 2.5% reduction in managed care vendor payments for plan years 2027 and 2028 with savings redirected to fee-for-service rates, and additional funding for behavioral health and public health programs. The bill was reported favorably after members explained their votes, with several noting they had only recently received the full 228-page bill and wanted more time for detailed review. Finally, the committee adopted a committee substitute for House Bill 900, an appropriation measure for government agencies, and reported it favorably. The chair said the bill remains a work in progress and that one-time funding requests from across the Commonwealth and across party lines would continue to be addressed as the process moves forward. All measures considered during the meeting passed the committee with unanimous or near-unanimous favorable votes, and the meeting adjourned after no further business.

Transcript Highlights:

• So the state will tally up all of its capital gains... ...shown on the figure.
• It's slightly more excess capital gains.
• I think our estimate is that it's 65% excess capital gains and 35%...
• I think our estimate is that it's 65% excess capital gains and 35% base amount.
• gains revenues. ...are limited to volatility in capital gains revenues.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on proposals to reform California’s Budget Stabilization Account, or rainy day fund, ahead of the May Revision. Members and witnesses reviewed how Proposition 2 (2014) changed reserve rules, including mandatory deposits, a 10% cap on the fund, and limits tied to the Governor’s declaration of a budget emergency. LAO staff explained that California’s revenues are highly volatile, that current reserve rules are complicated by interactions with Proposition 98 and the Gann limit, and that under current law reserves would cover only about one-third of funding shortfalls in a benchmark scenario over 50 years. The LAO presented its report recommending a larger reserve target, including raising the cap to 50% by 2055 and pairing that with either broader, more flexible deposit rules or a simpler approach that deposits all excess capital gains. The Department of Finance described the Governor’s proposal to raise the cap from 10% to 20% and exempt BSA deposits from the state appropriations limit, while Assembly Member Valencia presented ACA 1, which would make similar changes and was described as an evolving proposal. Testimony generally supported saving more during boom years, but differed on how much to hardwire into the Constitution versus leave flexible, and on whether to broaden the deposit formulas beyond capital gains. Public witnesses and committee members raised additional issues, including whether reserve reforms should also address debt repayment, the treatment of unemployment insurance fund debt, and whether the Gann limit should be adjusted to better allow reserve growth. Supporters argued that stronger reserves would protect Californians from cuts during downturns and help the state weather volatility and federal funding threats. Some advocates warned that reforms should not come at the expense of current public needs, while taxpayer representatives cautioned against turning the BSA into a pass-through account that weakens constitutional spending limits. The hearing ended without a vote, with the committee chair noting the complexity of the issue and adjourning after public comment.

Transcript Highlights:

• Capital redirected to operations.
• And the district redirected capital monies to operations.
• Understand that the... ...capital budget limit deficits.
• Our capital limit reserve and are redirecting a redirection of capital monies.
• expenditures from unrestricted capital to bond.

Committee: Joint Joint Legislative Audit Committee

Summary: The committee first heard a follow-up on the Arizona State Board of Chiropractic Examiners special audit. The Auditor General’s contractor reported that the board has made progress on most of the 28 recommendations from the 2024 audit, with 25 in process and three not yet implemented. Remaining concerns included complaint investigations not being resolved within 180 days, continued open meeting law compliance problems, and failure to consult the Attorney General’s open meeting law experts. The follow-up also identified new issues with posting disciplinary/non-disciplinary actions and maintaining a complete public records request log. Board staff said they had adopted new complaint timelines, subpoena limits, conflict-of-interest procedures, public meeting guidance, training, and a new licensing platform, and they described efforts to professionalize investigations and improve transparency. Members pressed the board on open meeting violations, complaint backlogs, lobbying activity, and the resignation of the board chair, while the executive director said the audit findings were being treated as a roadmap for reform. The committee then received the January 2026 Arizona school district financial risk analysis. The Auditor General’s office said the number of highest-risk districts rose from two to nine, and districts approaching highest risk increased from seven to nine. The report highlighted common risk factors such as declining student counts, budget reserve problems, use of capital funds for operations, and weakening general fund positions. Tucson Unified was used as an example of a highest-risk district, with declining enrollment, reserve declines, and capital funds redirected to operations; Scottsdale Unified was cited as approaching highest risk. The office explained its web-based dashboard, district action plans, and ongoing outreach to affected districts. Sierra Vista Unified School District superintendent Terry Romo then presented the district’s response to its financial risk designation. She said she inherited the problems, quickly developed an action plan, and is working to stabilize enrollment, reduce staffing through attrition, close an elementary school, freeze nonessential spending, tighten purchase controls, and renegotiate or cancel high-cost contracts. She also said the district is redirecting DAA funds, considering sale or lease of property, and improving communication with families through letters, videos, and enrollment outreach. Committee members questioned the district about declining enrollment, school safety, academic performance, and the pace of corrective action, while Romo emphasized that the district is trying to protect both students and finances and avoid returning to the high-risk list.

Transcript Highlights:

• </c><00:04:41.360><c> budgeting</c> municipal and state capital budgeting municipal and state capital
• </c> operations, maintenance, and capital operations, maintenance, and capital replacement.<00:04:57.840
• </c> and capital security. and capital security.
• </c> capital uh grounds in that area. capital uh grounds in that area.
• </c> the national capital. the national capital. Thank<01:04:18.240><c> you.</c> Thank you.

Bills: HF4810 , HF4597 , HF1082 , HF3230

Committee: House Public Safety Finance and Policy

Transcript Highlights:

• Rothside is a principal at Shield Capital, a venture capital firm focusing on investing in early-stage
• And we must leverage America's private capital markets backing the most innovative ideas.
• Private capital is critical to accelerating the development of next-generation defense tech.
• This ought to be seed capital for the next emerging ideas.
• , you know, how the venture capital market works very well.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: SBIR, STTR, Innovate Act, small business, innovation, legislative reforms, economic growth, funding, technology transfer

Summary: The meeting focused on the Small Business Innovation Research and Small Business Technology Transfer Programs (SBIR-STTR), emphasizing the critical reforms necessary to enhance their effectiveness. Chair Ernst introduced the Innovate Act to streamline processes, ensuring funding is awarded based on merit and addressing existing abuses within the system. The discussion was robust, with numerous members expressing concerns about phase transitions and the need for targeted funding to support impactful technological innovations. The conversation also highlighted the program's importance in fostering economic growth, particularly for small businesses in rural areas, and the urgency for legislative changes as the program's authorization approaches expiration.

Transcript Highlights:

• They allow capital carry. Iowa allows capital carry. South Dakota allows capital carry.
• They allow capital carry. Iowa allows capital carry. South Dakota allows capital carry.
• They allow capital carry. Iowa allows capital carry. South Dakota allows capital carry.
• They allow capital carry. Iowa allows capital carry. South Dakota allows capital carry.
• They allow capital carry. Iowa allows capital carry. South Dakota allows capital carry.

Committee: Senate Judiciary and Public Safety

Transcript Highlights:

• Adjusted capital gain is...”
• “Adjusted capital gain is defined as the federal net long-term capital gain, adjusting for the inclusion
• Capital Gains Tax.
• Because we would put something into effect that says a sale, or a sale of capital gain or of capital
• Those companies need capital.

Summary: House Finance heard bill briefings and testimony on several tax and property-tax measures. HB 2175 would exempt licensed nonprofit providers of free durable medical equipment from retail sales and use tax on items reasonably necessary to operate and provide care; the sponsor and a nonprofit provider described how the bill would help organizations that refurbish and donate wheelchairs, beds, walkers, and similar equipment, and staff noted a small Department of Revenue fiscal impact. The committee then heard HB 2608, which revises the targeted urban area property tax exemption for nuclear facility projects by requiring labor standards, including submission of a workforce or project labor agreement and related wage/apprenticeship information, and extending project-completion deadlines. Supporters said it would help attract major clean-energy and nuclear supply-chain investment and jobs, while opponents from construction groups, environmental advocates, and some public commenters objected to the PLA requirement, the tax preference for nuclear projects, and the broader policy direction; tribal consultation concerns were also raised. No votes were taken on these bills in the transcript. The committee also heard HB 2227, which expands an existing REET exemption for affordable homeownership sales from self-help housing to other nonprofit affordable homeownership programs, including community land trusts. The sponsor and nonprofit witnesses said the change would lower transaction costs, improve affordability, and support permanently affordable resale models; staff clarified the exemption applies to the initial sale from the nonprofit to an income-qualified buyer, not later resales. HB 2528 would allow cities and counties that fully plan under the Growth Management Act to impose the second local REET without voter approval, aligning opt-in jurisdictions with those required to plan under GMA. Supporters from cities and counties said the revenue would help fund sidewalks, ADA upgrades, water, sewer, and other infrastructure, while opponents argued it would raise home-selling costs and bypass voters. Finally, the committee heard HB 2292, which would subject long-term capital gains from qualified small business stock to the state capital gains tax beginning in 2026. Staff said the bill would affect about 260 taxpayers and raise roughly $1.2 million in FY 2027, while the sponsor and supporters argued the current QSBS exemption mainly benefits very wealthy investors and should be treated like other capital gains; opponents from the tech and startup community said the exemption helps founders attract investment, keep companies in Washington, and create jobs, and warned the bill would send a negative signal to entrepreneurs. The committee also heard HB 2257, a Department of Revenue request bill making technical and administrative changes to the tax code, largely to codify guidance from last year’s sales-tax-on-services law and make other clarifications; DOR said it was intended to provide certainty and had no fiscal impact. School groups testified that the 5814-related service-tax changes have increased costs for districts, especially for staffing and professional learning, and asked for relief or a broader exemption.

Transcript Highlights:

• </c> otherwise have access to the capital otherwise have access to the capital required<00:13:45.880>
• </c><00:47:43.440><c> streams</c> that have much larger Capital streams that have much larger Capital
• Every loan will have a different capital stack, with different funding sources in the capital stack.
• It's not that every loan is going to have grant capital in their loan.
• different funding sources in the capital different funding sources in the capital stack<00:58:16.640

Committee: Senate Energy, Utilities, Environment, and Climate

Transcript Highlights:

• ><c> committee</c> The capital project scoring committee The capital project scoring committee included
• </c> key criteria we use to evaluate capital key criteria we use to evaluate capital projects.<00:06:
• For today's capital plan Okay.
• </c><00:41:35.280><c> Museum,</c> capital, the Military History Museum, capital, the Military History
• </c> cabinet's capital projects to you today. cabinet's capital projects to you today.

Summary: The Capital Planning Advisory Board met with a quorum, approved the May 21 minutes, and welcomed a new executive branch member, Secretary Keith Jackson of the Justice and Public Safety Cabinet. The board also received two informational items: agency responses to prior questions and amendments made to capital plans after the last meeting. It then heard the Commonwealth Office of Technology’s report on executive branch IT capital project scoring, which reviewed 16 IT requests totaling about $330.5 million. COOT said projects were ranked through an independent panel using standardized criteria focused on feasibility, statewide alignment, readiness, impact, and risk; the CIO recommended moving an enterprise application and artificial intelligence inventory system from rank 11 to rank 4 because of its enterprise-wide impact and connection to Senate Bill 4. The Department of Military Affairs presented its capital plan, describing 43 million in projects for the current period and 13 projects totaling $65 million for 2026–2028, with most funding coming from federal sources and restricted agency funds and no general fund request in the latter period. Its projects included maintenance pool adjustments, a statewide Army master plan, the Somerset readiness center, Shelbyville and Ashland armories, a future home for the Kentucky Army National Guard band, and other facility upgrades. Members asked about the Somerset project’s cost growth and federal delay; the department said the project remains in conceptual design, is awaiting federal MILCON action, and would require a state match of about $9.8 million against $29.6 million federal funding if it is approved. Members also asked about staffing levels, and the department said state employee and Title 32 numbers have been relatively steady, while technician positions have declined. The Department of Veterans Affairs outlined seven projects for 2026–2028, led by a Radcliff Veterans Center HVAC replacement that needs an estimated additional $16 million to finish phase two after phase one was already funded. Other requests included a maintenance pool increase, renovations and exterior upgrades at Eastern and Western Kentucky veterans facilities, a cooling tower replacement at Thompson Hood, and parking lot and lighting improvements. The department said some projects were already in the six-year plan and that the Radcliff phase two could be bid in June 2026 if funded. Members confirmed that a columbarium wall project at Grayson is federally funded. The Kentucky Infrastructure Authority presented its six-year capital plan, citing more than $3 billion in loan commitments since 1988 and over $5 billion in supported infrastructure projects. KIA requested $298.439 million in the first biennium, including $27.742 million in state match for federal clean water and drinking water revolving funds, $25 million for its state Infrastructure Revolving Fund, $185.697 million in federal capitalization grants, and $30 million in leverage bond authorization for each year of the two federally assisted loan programs. Members asked about drinking-water quality, and KIA said that function is handled by the Energy and Environment Cabinet’s Division of Water, not KIA. KIA also said its loan rates currently range from 0.5% to 2.25%, averaging just under 1%, and that its revolving loan programs have had no defaults. The Tourism, Arts, and Heritage Cabinet began its presentation at the end of the transcript, with staff identifying themselves, but no project details or board action from that presentation were included in the excerpt.

Transcript Highlights:

• to operations, which represented 45% of its total capital monies.
• Capital budget limit deficits.
• Capital lease-back: you talked about the $25 million.
• Our capital limit reserve is being redirected, a redirection of capital monies.
• expenditures from unrestricted capital to bond.

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• So smaller companies can turn them into real working capital.
• They're leaving because they need access to capital.
• The transferability is the mechanism providing that capital.
• They cannot commercialize without that capital.
• They can't do, they can't commercialize without that capital.

Summary: The committee heard testimony on the committee substitute for House Bill 27, which would modernize New Mexico’s research and development tax credit. Sponsors said the bill would allow the credit to be stacked with industrial revenue bonds for qualifying facilities, exclude data centers and national laboratories, permit up to $50 million in transferable credits per year for 2026-2028, and extend the carry-forward period to seven years. Supporters from business, construction, labor, and economic development groups argued the changes would improve cash flow for startups, help attract and retain high-wage jobs, and encourage commercialization of New Mexico-developed technology in sectors such as advanced energy, aerospace, fusion, and advanced manufacturing. Several witnesses emphasized that the bill was intended to keep commercialization and capital investment in New Mexico rather than losing them to other states. Committee members raised concerns about tax policy, fiscal impact, and whether the bill would truly lead to commercialization. Questions focused on the transferability provision, the $50 million annual cap, who could buy credits, whether data centers should be excluded, how the bill interacts with IRBs and other incentives, and whether the labs could benefit. Some members supported the bill’s goals but worried it was too narrowly tailored or could create winners and losers. The sponsors and administration witnesses responded that the bill was designed to tie R&D to physical infrastructure, provide capital to early-stage companies, and protect the general fund with caps and time limits. They also said the bill would not apply to national labs and would not change existing rural-area doubling provisions. After extensive discussion and no opposition testimony, the committee did not advance the bill. Representative Cadena moved to table the committee substitute for House Bill 27, Representative Parra made the second, and the motion passed without opposition, so the bill was tabled.