Keywords: KY LRC YouTube, https://www.youtube.com/watch?v=Hj7q8MpO214, 2026-06-21T07:17:06+00:00, 2.2.24, Data collected via generic collector engine, Meeting Start: 00:00 Attendance Roll Call: 00:10 Senate Bill 290 (Sen. Carpenter): 00:43 House Bill 403 (Rep. Meade): 03:22 House Bill 443 (Rep. Rudy): 07:44 House Bill 137 (Rep. Bratcher): 10:48 Senate Bill 283 (Sen. Higdon): 13:37 Senate Bill 259 (Sen. Harper Angel): 18:43 Senate Bill 130 (Sen. Southworth): 29:58 House Bill 135 (Rep. Bauman): 32:45 House Bill 136 (Rep. Bauman): 38:11 Adjournment: 50:17, 958, all, 2.2.42, 2.1.47

Bills: HB2588, HB2722, HB2727

Keywords: county ferry district, ferry district, passenger-only ferry, passenger ferry, Puget Sound, Vashon, Seattle, Southworth, county transportation, local taxing authority, property tax levy, general obligation bonds, municipal corporation, public transportation benefit area, WTSC, Washington Utilities and Transportation Commission, ferry terminal, wharf, shuttle service, marine transportation

Summary: The committee first held a public hearing on Substitute House Bill 2251, which would restructure Climate Commitment Act accounts and change how cap-and-invest auction revenue is distributed. Staff explained that the bill would create new operating and capital accounts, repeal several existing accounts, and shift revenue to a percentage-based formula that caps funding for the carbon emissions reduction account at $359 million while directing set percentages to the new accounts and the air quality and health disparities account. Members asked about the fiscal note, the effect on transportation funding, and whether the bill would change allowable uses of the CERA account; staff said it would not. Testimony was largely supportive, with proponents saying the bill adds clarity and stability, while tribal testimony urged clearer protection and accounting for the 10% tribal set-aside and carryover of unused funds. The hearing then moved to House Bill 2588, which would allow county ferry districts to operate and finance vehicle ferries, not just passenger-only ferries. County officials, ferry users, and advocates supported the bill as a local funding tool for aging ferry systems in Whatcom, Pierce, Skagit, and Wahkiakum counties, and said it would not itself raise taxes. The committee then heard House Bill 2722, which would raise the maximum vehicle weight subject to transportation benefit district vehicle fees from 6,000 pounds to 10,000 pounds; staff estimated the change could raise about 3% more revenue statewide, and the sponsor and supporters argued it would better reflect modern vehicle weights and road wear, while trucking interests said they could support a 9,000-pound compromise threshold. The final public hearing was on House Bill 2727, creating an Educational Transit Access Grant Program for transit agencies and community and technical colleges to pilot free or reduced fares for students; supporters said it would improve affordability and access to education, and the sponsor said an amendment may add inclusive post-secondary programs. After the hearings, the committee took executive action on a second substitute for House Bill 1923, which expands who can form passenger-only ferry service districts and where they can be formed, adds intent language about southern resident orcas, and changes the effective date to July 1, 2026. The substitute passed 23-4 with two excused, receiving a do pass recommendation.

Bills: HB2092, HB2114, HB2172, HB2251, HB2374, HB2410, HB2552, HB2588, HB2718, HB2722, HB2727

Keywords: passenger rail, transportation, committee, advisory, infrastructure, defective license plates, vehicle registration, Department of Licensing, state regulations, route jurisdiction, abandonment, local governance, climate change, commitment act, emission reductions, sustainability, environmental policy, electric bicycles, electric motorcycles, regulation

Transcript Highlights:

• Representative Southworth, no. Chairman Roy Chal, yes. The amendment is adopted.
• </c><00:06:15.800><c> no</c> Newell no representative Southworth no Newell no representative Southworth
• Representative Southworth, no. Chairman Roy Chal, yes. The motion is adopted.
• </c><00:10:43.320><c> yes</c> yes representative Southworth yes yes representative Southworth yes chairman
• Is that... representative Southworth no chairman representative Southworth no chairman Roy<00:20:32.200

Keywords: 1189, house, all

Transcript Highlights:

• Representative<00:17:10.799><c> Southworth.</c> Representative Southworth.
• Representative Southworth.
• &gt;&gt; Representative<00:27:11.600><c> Southworth.</c> &gt;&gt; Representative Southworth.
• &gt;&gt; Representative<00:49:14.960><c> Southworth.</c> &gt;&gt; Representative Southworth.
• Representative<01:18:57.600><c> Southworth.</c> Representative Southworth.

Keywords: 928, house, all

Summary: The committee first took up HB 155, which drew a lengthy debate over an amendment to delay implementation until tax year 2027. Supporters said the delay would give lawmakers time to see whether projected revenues materialize and to reconsider the policy if needed; opponents argued it would reduce money available to services and local governments at a time of tightening revenues. Members also discussed broader revenue trends, including tobacco, rooms-and-meals, real estate transfer, and lottery revenues, and disagreed over whether tax cuts tend to increase revenue. The committee adopted amendment 2025-2983H on an 11-9 vote, then voted 11-9 to report HB 155 ought to pass as amended. The bill was sent to the consent calendar, with a majority and minority report to be filed. The committee then considered HB 224, with members expressing concern that the bill would redirect money collected for one purpose to another and should receive more study. A motion for interim study was made and seconded, and the committee approved interim study unanimously, 20-0, sending HB 224 to the consent calendar. Next, the committee took up SB 83, which the Lottery described as a vehicle for technical corrections to gaming law. The Lottery requested changes to remove a bond cap, reconcile inconsistent free-play/promotional-play language, redirect problem-gambling funds to the Commission on Addiction Treatment and Prevention, and revise background-check language after the FBI declined to conduct checks under the existing wording. The committee adopted amendment 2025-2984 unanimously, 20-0, then voted 20-0 to report SB 83 ought to pass as amended and placed it on the consent calendar. Finally, the committee began work on HB 524, a bill to repeal the New Hampshire Vaccine Association. Representative Yuli said members had received many emails and calls both supporting and opposing the program and that he had questions about transparency and the dollars involved. The transcript cuts off before any vote or further action on HB 524.

Transcript Highlights:

• </c><00:10:34.880><c> yes</c> Aly yes representative Southworth yes Aly yes representative Southworth
• </c><00:26:23.399><c> oh</c><00:26:23.840><c> stayed</c> um Southworth oh stayed um Southworth oh stayed
• </c><00:37:31.040><c> no</c> representative Southworth no representative Southworth no representative
• </c> other comments representative Southworth other comments representative Southworth um<00:41:21.200
• </c><01:06:01.720><c> yes</c> Aly yes representative Southworth yes Aly yes representative Southworth

Keywords: 928, house, all

Summary: The committee first met in a revenue estimate work session to approve an LSR codifying the committee’s revenue estimates. Members reviewed the process for turning the LSR into a House Resolution and discussed how the adopted estimates would be used to amend House Bill 1. After a brief question-and-answer about current revenue splits and the governor’s proposed video lottery and tax-split changes, the committee voted 19-0 to approve the revenue estimates. The committee then moved into executive session on HB 669, which would require all revenue from the statewide education property tax to be deposited into the education trust fund and set an equalized statewide tax rate. Supporters argued the bill would better direct education funding, while opponents said it was unnecessary or duplicative. The committee voted 12-7 to retain the bill (ITL), and a minority report was noted. Next, the committee considered HB 290, which would raise cigarette and electronic cigarette taxes and create a study committee on tobacco and nicotine taxes. Testimony focused on revenue needs, inflation, public health, and concerns that a higher tax could reduce sales or drive purchases across state lines. The committee voted 11-8 to ITL the bill, with a minority report. The committee also ITL’d HB 402, dealing with whether Education Freedom Account payments are taxable income, after debate over unintended consequences and whether the bill’s language was misleading; that vote was 11-8 with a minority report. Finally, the committee opened HB 483, and Representative Tierney moved ITL, arguing the bill’s requirement that the scholarship organization be incorporated in New Hampshire would likely violate the Commerce Clause; the transcript cuts off before the vote on that bill.

Transcript Highlights:

• <00:41:54.400><c> sorry</c><00:41:54.640><c> representative</c> Southworth I'm sorry representative Southworth
• </c> number yeah representative Southworth number yeah representative Southworth I'm<00:42:05.200><c>
• </c><03:26:58.960><c> H</c> us okay um representative Southworth H us okay um representative Southworth
• </c><04:24:20.960><c> no</c> Aly no representative Southworth no Aly no representative Southworth no
• </c><04:34:51.080><c> yes</c> thank you representative Southworth yes thank you representative Southworth

Keywords: 928, house, all

Summary: The committee met in a work session on revenue estimates and reviewed updated spreadsheet pages for several tax categories, using prior agreements and new testimony to refine FY 2025-2027 estimates. Early discussion covered insurance tax estimates, where members reviewed a letter from the insurance commissioner saying he was comfortable with the numbers provided; the committee accepted those estimates without opposition. Members also discussed utility property tax, with testimony about recent infrastructure buildout, tariffs, depreciation, and the difficulty of forecasting future growth. After debate over whether to use the average of high and low estimates or lean lower, the committee unanimously adopted the utility property tax numbers. The committee then turned to real estate transfer tax and communications tax. For real estate transfer tax, members cited county input, housing market conditions, interest rates, lumber costs, and uncertainty about future policy; they agreed to use the averages and adopted those estimates unanimously. For communications tax, members noted the decline in landline-based revenue and the shift to data services. After discussion of whether to use the low estimate or the average, the committee settled on the average with a small rounding-down adjustment when the figure ended in .5, and adopted the numbers unanimously. The chair also clarified that these estimates remain subject to change until the final resolution is adopted. The committee next accepted interest and dividends estimates as presented, with members noting the decline in that revenue source and the lack of additional information beyond the department’s analysis. Finally, the committee began discussing tobacco tax revenue, with members noting long-term declines in smoking, offsetting effects from out-of-state sales, and a suggestion to take a slightly conservative approach by reducing the average by 0.5. The transcript cuts off during that discussion, so no final vote on tobacco is shown in the excerpt.

Transcript Highlights:

• Representative Southworth. Yes. Representative Mallaloy. Yes. Representative Shamberg. Yes.
• Representative Southworth.<00:22:36.960><c> Yes.
• </c><00:22:37.600><c> Representative</c> Southworth. Yes. Representative Southworth. Yes.
• Representative Southworth,<00:24:08.880><c> yes.
• </c><00:24:09.520><c> Representative</c> Southworth, yes. Representative Southworth, yes.

Keywords: 928, house, all

Summary: The committee first went into executive session on SB 83, which concerns an elderly, disabled, blind, and deaf property tax exemption reimbursement fund, lottery-related changes, and a voluntary statewide self-exclusion database. Representative Ulery moved to retain the bill, saying more work was needed to make the bill clear. The motion passed 17-0 with three members absent, and SB 83 was retained in committee. The committee then took up SB 249FN, a bill relative to the uncompensated care and Medicaid fund. Representative Ulery offered House Amendment 2025-2465H, which was described as incorporating a recent agreement between the state and hospital parties into state law and setting the stage for future action. Medicaid Director Henry Litman explained that the agreement keeps the Medicaid enhancement tax at 5.4%, uses directed payments rather than traditional DSH payments, and is intended to be budget-neutral for the state while increasing hospital payments through a higher federal match. He also said critical access hospitals would continue under the existing directed-payment approach, and that the agreement includes a mechanism to revisit the arrangement if federal law changes substantially. New Hampshire Hospital Association President Steve Hearn said the association supports the amendment and the bill as amended, calling the settlement fair and beneficial to hospitals and the Medicaid program. The amendment and the subsequent ought-to-pass-as-amended motion both passed 18-0. At the end of the meeting, the chair said the committee had now gone through all of its bills and had retained nine in total, with a future meeting planned in September or October to review retained bills. Members briefly discussed possible future committee of conference work and noted there would be no House session that Thursday. The meeting then adjourned.

Transcript Highlights:

• &gt;&gt; Representative<01:33:31.480><c> Southworth.</c> &gt;&gt; Representative Southworth.
• &gt;&gt; Representative Southworth. &gt;&gt; Yes. &gt;&gt; Yes. &gt;&gt; Yes.
• &gt;&gt; Representative<01:37:37.280><c> Southworth.</c> &gt;&gt; Representative Southworth.
• Representative<01:40:01.720><c> Southworth.</c> Representative Southworth.
• Representative Southworth. &gt;&gt; Yes. &gt;&gt; Yes. &gt;&gt; Yes.

Keywords: 1189, house, all

Transcript Highlights:

• Representative<00:19:51.679><c> Southworth.
• Um, and I'm not sure I would agree with Representative Southworth.
• Um, and I'm not sure I would agree with Representative Southworth.
• </c><00:53:22.240><c> I</c> agree with Representative Southworth.
• I agree with Representative Southworth.

Keywords: 928, house, all

Summary: The committee held a work session on HB 302, which would add precious metals and digital assets as potential investment options. State Treasurer Monica Misipelli said she took no position on the bill and did not see an immediate fiscal impact or operational problem, but explained that the state’s operating funds and rainy day fund require liquidity and stability, so they would not be suitable for volatile assets like precious metals or digital assets. She said the only funds that might potentially use such investments would be certain trust funds held in perpetuity, which are managed by an outside investment advisor under a contract and investment policy. Members asked about the treasurer’s current investment practices, including the types of funds managed, the role and discretion of the investment advisor, the state’s risk profile, and whether the bill would affect existing authority. Misipelli said the office follows RSA 11 and related statutes, with different objectives ranging from conservative to aggressive depending on the fund, and that the advisor meets with the office regularly, with formal performance reviews on a quarterly basis. She also said the office recently centralized management of about 40 trust accounts totaling roughly $60 million into five combined portfolios under a five-year contract with an RFP-selected vendor. When asked whether precious metals or digital assets are already indirectly available through mutual funds, she said that was possible for some mutual funds, but she was not certain about digital assets. Representative Ammon, the bill’s sponsor, said similar legislation had passed the Oklahoma House, the Texas House and Senate, and had advanced in Arizona. He argued the bill was intended to give the treasurer more tools to help balance portfolios and hedge inflation, noting concerns about federal debt and inflation. No vote was taken in the excerpt, and the chair ended the questioning after thanking the treasurer and asking her to remain available in case further questions arose.

Transcript Highlights:

• &gt;&gt; Representative &gt;&gt; Representative &gt;&gt; Representative Southworth. Southworth.
• Southworth. &gt;&gt; Uh<04:10:31.120><c> thank</c><04:10:31.279><c> you.
• ,</c> Representative Southworth, Representative Southworth, &gt;&gt; we're<04:10:53.120><c> the</c><04
• So I have no information. >> Yes, Representative Southworth.
• &gt;&gt; Representative<05:12:57.280><c> Southworth.</c> &gt;&gt; Representative Southworth.

Keywords: 1189, house, all

Transcript Highlights:

• &gt;&gt; Representative<01:23:17.520><c> Southworth,</c> &gt;&gt; Representative Southworth, &gt;&gt;
• Second for Representative Southworth. Southworth. Southworth.
• &gt;&gt; Representative<01:44:59.199><c> Southworth.</c> &gt;&gt; Representative Southworth.
• &gt;&gt; Represent<02:20:56.160><c> Southworth.</c> &gt;&gt; Represent Southworth.
• </c> &gt;&gt; Um represent Southworth in that open. &gt;&gt; Um represent Southworth in that open.

Keywords: 1189, house, all

Transcript Highlights:

• . >> Southworth in Walden. >> Square in Underhill. >> Steady in Milton.
• Southworth<00:28:55.880><c> in</c><00:28:55.960><c> Walden.</c> Southworth in Walden.
• Southworth in Walden. Square<00:28:57.960><c> in</c><00:28:58.000><c> Underhill.
• Southworth<00:41:47.840><c> of</c><00:41:47.880><c> Walden.</c> Southworth of Walden.
• Southworth of Walden. Squirrell<00:41:49.800><c> of</c><00:41:49.880><c> Underhill.

Keywords: 926, house, all

Transcript Highlights:

• Southworth of Walden. Southworth of Walden. Southworth of Walden. Squier of Underhill.

Keywords: 926, house, all

Transcript Highlights:

• Representative Southworth: Uh, thank you, Mr. Chair. Thank you for taking my question.
• Representative Southworth: Uh, thank you, Mr. Chair. Thank you for taking my question.
• Representative Southworth. Thank you.
• Uh, yeah, Representative Southworth. Yeah. Thank you.
• </c> Uh yeah, Representative Southworth. Uh yeah, Representative Southworth.

Keywords: 1189, house, all

Transcript Highlights:

• Uh, thank Representative Southworth.
• :46:12.560><c> for</c> Representative Southworth, thank you for Representative Southworth, thank you
• /c><04:01:36.960><c> you</c> Representative Southworth, uh, thank you Representative Southworth, uh,
• Representative Southworth. Uh, thank you.
• Representative Southworth. Uh, before? Representative Southworth. Uh, thank<04:13:57.880><c> you.

Keywords: 928, house, all

Summary: The committee heard testimony on Senate Bill 110, as amended by the Senate, which would establish fees for alteration-of-terrain applications and direct the Department of Environmental Services to adopt rules for a permit-by-notification process for certain projects. Trisha Milo introduced the bill for Senator Lang and noted that the department had worked on the amended language. Matt Mayberry of the New Hampshire Homebuilders Association said the industry strongly supported the bill, describing it as a public-private partnership that would speed review for developers without affecting local control, with builders paying the costs rather than taxpayers. Members focused heavily on how the bill’s fee structure and permit thresholds would work, especially for projects near shoreland, wetlands, and protected water bodies. Representative Opel raised concerns about whether the bill reduced review of habitat and shoreland impacts or shifted costs unfairly; Philip Trobridge of DES explained that the bill does not eliminate those reviews and that shoreland projects still receive greater scrutiny. He said the bill creates different tiers, with the permit-by-notification process applying to certain projects between 100,000 and 150,000 square feet that are not in protected shoreland, while larger or shoreland-affected projects remain under the standard review process. He also said the proposed fees were based on sustaining the program, covering added habitat and species review responsibilities, and keeping reviews efficient. Trobridge said the new fee structure would generate about $1.2 million in additional revenue and help fund additional staff and related program costs. He stated that the department had worked with the regulated community and believed the fees were fair and reasonable, though he acknowledged the bill’s wording was confusing and that the threshold could be revisited later if the new process works well. Members also discussed how the state process interacts with local approvals, and Trobridge said both state and local approvals are required before a project can begin. No vote or final action was taken in the portion of the meeting provided.

Transcript Highlights:

• thank the insurance industry people, Hope, that's part of the group, and Dustin Miller and then Wes Southworth
• 57.640><c> and</c><00:03:57.760><c> then</c> Miller and then Miller and then Wes<00:03:58.960><c> Southworth
• </c> Wes Southworth. Wes Southworth.

Keywords: Meeting Start 00:00 Call to Order and Roll Call 00:11 Discussion SB 97 01:06 Vote SB 97 12:42 Discussion SB 189 14:11 Vote SB 189 18:12, 958, all

Transcript Highlights:

• Thank you, Representative Southworth.
• Representative Southworth said, “Thank you, Mr. Chairman.
• Representative Southworth continued, “Thank you, Mr. Chairman.
• Representative Southworth, thank you. Representative Southworth, thank you, Mr.
• </c><05:15:29.878><c> thank</c> anything representative Southworth thank anything representative Southworth

Keywords: 928, house, all

Summary: The committee held a public hearing on HB 135, introduced by Representative Michael Harrington. He said the bill would codify a portion of the New Hampshire Constitution to bar New Hampshire businesses from being required to collect sales or use taxes for other states unless Congress mandates it, arguing that the U.S. Supreme Court’s Wayfair decision created an onerous compliance burden for businesses. He described the patchwork of state and local sales tax rules, thresholds, and product exemptions as extremely complex and said the bill was intended to push the issue back toward Congress and the courts. Members questioned whether the bill’s reference to a “foreign government” would apply to other U.S. states, whether the proposal would conflict with the Supremacy Clause, and whether it would create standing for businesses to challenge Wayfair. Harrington responded that “foreign government” meant any government other than New Hampshire, that he believed the state could challenge the decision in court by passing a law contrary to Wayfair, and that businesses were already being harmed by compliance costs. Some members raised concerns about whether the bill was an unfunded mandate or simply a private compliance burden, and Harrington argued that the state itself would not be collecting the taxes, but businesses would still face recordkeeping and administrative costs. Sam Garland of the Department of Justice then testified. He said the department was not taking a formal position on the bill, but offered technical comments. Garland acknowledged that Wayfair created significant compliance burdens and noted that states have become somewhat more uniform, with all states now having a $100,000 economic nexus threshold, though not all use the 200-transaction threshold and local tax variation remains substantial. He said the department’s concerns were legal, describing the issue as uncharted constitutional territory involving both vertical and horizontal federalism. No vote or final action was taken during the hearing.

Transcript Highlights:

• And I am excited about the restoration of the Southworth Triangle and the Bremerton Ferry Service.
• It serves Vashon Island as well as Southworth on the Kitsap Peninsula.
• It serves Vashon Island, as well as Southworth on the Kitsap Peninsula.
• So Southworth and Vashon, The things we heard from the community are that Southworth and Vashon are aligned

Summary: The committee met to hear an update from Washington State Ferries on capital projects and workforce issues, beginning with a briefing on the agency’s long-term fleet and terminal needs. WSF officials described the history of underinvestment after the late 1990s, the current fleet reduction from 25 to 21 vessels, and the need to keep older boats in service while moving toward a 26-vessel long-range fleet and hybrid-electric operations. They said the agency is transitioning to a new vessel procurement strategy, with Eastern Shipbuilding selected to build up to three 160-car hybrid-electric ferries, and outlined a schedule that includes contract execution, about a year of design work, steel cutting in fall 2026, and several years of construction. Members raised concerns about the higher cost of electrified vessels, the length of the schedule, the adequacy of liquidated damages and incentives, the risks of building in Florida and transporting vessels to Washington, and whether the contract sufficiently protects the state from cost overruns and design problems. The committee also received an update on the Wenatchee conversion, which officials said is days away from entering service as the first large hybrid-electric ferry conversion. WSF explained that the conversion combined required midlife preservation work with propulsion upgrades and battery installation, and that the project took longer and cost more than originally expected because it was a prototype with significant lessons learned. Officials said the Tacoma and Puyallup conversions would follow later, but those decisions were being delayed until after the World Cup to avoid service disruptions. Members asked about the cost-effectiveness of the conversion, the expected fuel and emissions reductions, and what happens to engine crews during long conversion periods; WSF said crews were embedded in the project and that the conversions should reduce diesel use substantially once terminal charging is available. The meeting then shifted to workforce development, with Siegel consultants reviewing their 2021 and 2024 studies of ferry staffing, overtime, recruitment, and workplace culture. They said the earlier problems stemmed from seasonal staffing practices, low winter hours, limited career progression, a narrow maritime recruiting pipeline, and a culture that made retention difficult. Since then, they reported major improvements: staffing has increased from about 1,500 to 1,900, turnover has fallen, captain and engineer shortages have eased, and recruitment has broadened beyond the traditional maritime pool, including more women and other underrepresented workers. They credited new programs such as guaranteed hours, paid pilotage, AB-to-mate pathways, and the “Turning of the Tide” culture campaign, while noting remaining issues with communication, HR access, accountability, and quality of life. Members generally acknowledged the progress but asked whether staffing levels are now sufficient and how interchangeable crews are across vessels and routes. Finally, terminal engineering staff began a presentation on capital terminal work, starting with the Fauntleroy Ferry Terminal. They described the terminal’s age, low elevation, vulnerability to sea level rise and earthquakes, and the need for replacement piles, beams, and improved vehicle circulation. The agency said it has completed a planning and environmental linkage study, is moving into NEPA/state environmental review, and has been working with the community to balance the needs of Southworth and Vashon riders with neighborhood concerns in Fauntleroy. The preferred alternative is a larger offshore dock footprint that would improve capacity and reliability while reducing impacts to eelgrass habitat. The meeting ended before the terminal discussion was complete.

Transcript Highlights:

• Representative Southworth: Thank you, and welcome to Ways and Means.
• Representative Southworth: Thank you, and welcome to Ways and Means.
• Representative Southworth: Thank you, and welcome to Ways and Means.
• Representative Southworth: Thank you, and welcome to Ways and Means.
• Representative Southworth: Okay.

Keywords: 928, house, all

Summary: The committee held a public hearing on HB 402, a bill to repeal a provision in RSA 194-F:2 stating that Education Freedom Account (EFA) funds “shall not constitute taxable income” to the parent or student. The bill sponsor argued the current language is misleading because the state cannot determine federal tax liability, and said the bill would simply remove inaccurate tax advice from state law. He cited IRS guidance and prior federal legislation, including a Ted Cruz proposal, to suggest some EFA uses may be taxable under federal law, while others may not, and said the bill could be amended if needed to avoid confusion. Testimony was sharply divided. Py Campbell opposed the bill, arguing it would unfairly single out EFA students and could amount to a tax on education funds, including for self-employed families, and recommended it be voted inexpedient to legislate. Stephen Matthew French, a tax preparer, also opposed the bill, saying IRS Publication 970 already makes clear that scholarship-type payments used for tuition and related expenses are not taxable, and that the bill addresses a problem that does not exist. He warned that adding tax reporting requirements could create administrative costs for families and the program administrator. Bill Ardinger, a tax attorney, supported the repeal of the statutory language, saying the state should not place potentially incorrect tax advice into law. He explained that under federal tax law, only certain scholarship-like uses are exempt, while many EFA-eligible expenses may not be, especially for families using the program for homeschooling or other nontraditional expenses. He said the current statute could mislead families into thinking all EFA payments are tax-free and could expose the state to future legal problems. The hearing ended after questions from committee members; no vote or final action was taken in the transcript.