Committee Summary for Senate Ways and Means (02/18/2026)

Bill/Time	Type	Title	Sponsor
SB635 596 00:07:52.000 - 8:32:14 AM	Executive Session	establishing a health reimbursement arrangement tax credit program.	Ricciardi, Denise(R)[B]2025
SB654 2026789s 01:22:09.840 - 9:46:31 AM	Executive Session	creating tax credits for businesses that have on-site child care services and for businesses that provide health care coverage for certain employees.	Sullivan, Victoria(R)[A-]2025
SB635 596s 01:28:00.800 - 9:52:22 AM	Executive Session	establishing a health reimbursement arrangement tax credit program.	Ricciardi, Denise(R)[B]2025
SB561 191 01:33:34.000 - 9:57:56 AM	Executive Session	relative to change of address for certain game operator employer licensees.	Murphy, Keith(R)[A]2025

SB635 596: Senator Rashard Information Only00:07:52.000 - 8:32:14 AM; Senator Rashard explains the amendment's key changes, including aligning the credit process with existing tax credits, focusing on small employers with fewer than 50 employees, streamlining the credit to $300 per employee for two years, maintaining a $10 million aggregate cap with carryforward, and reinstating guardrails to prevent dropping group coverage. He addresses concerns about employer size and contributions, deferring some questions to John Reynolds.
SB635 596: Senator Rosenwald Information Only00:10:18.320 - 8:34:40 AM; Senator Rosenwald seeks clarification on how the credit applies to small businesses that haven't offered insurance in three years, interpreting it as a $300 credit per covered employee to incentivize starting coverage.
SB635 596: John Reynolds, National Federation of Independent Business Support00:11:31.040 - 8:35:53 AM; John Reynolds confirms the $300 credit for new health benefit offerings, explains guardrails against dropping group coverage (three-year exclusion and exceeding prior contributions by $300), clarifies that HRAs can cover minimal essential coverage or qualified medical expenses, and notes the credit offsets startup costs without being the full contribution. He addresses premium increases and out-of-pocket costs, emphasizing flexibility for small employers.
SB635 596: Senator Murphy Information Only00:18:41.280 - 8:43:03 AM; Senator Murphy raises fairness concerns for existing small businesses already offering insurance and vagueness in the 'fewer than 50 employees' definition, suggesting ties to federal ACA limits to account for part-time, seasonal, or fluctuating employment.
SB635 596: Chair Lang Information Only00:21:37.280 - 8:45:59 AM; Chair Lang discusses the two-year credit limit, maximum value ($14,700 for 49 employees), references to BET tax for employee definitions, potential uptake, and suggests reducing the $10 million cap to $2.5 million, delaying effective date to 2027 for budgeting, and sending to finance for prioritization among tax credits.
SB635 596: Senator Waters Information Only00:22:40.559 - 8:47:02 AM; Senator Waters questions potential uptake and budget impact of the $10 million cap, references similar proposals in other states estimating lower costs (3-5 million), and suggests delaying to July 1, 2027, for inclusion in the next budget.
SB635 596: Jennifer Ramsey, Department of Revenue Administration Information Only00:28:06.640 - 8:52:28 AM; Jennifer Ramsey explains the BET tax definition of employee defaults to IRC, includes those for whom withholding is required, and suggests referencing the statute for clarity to avoid inconsistencies, noting it applies to both BET and BPT.
SB635 596: Senator Sullivan (on SB 654) Information Only00:37:10.320 - 9:01:32 AM; Shifting to SB 654, Senator Sullivan describes amendment changes for carryforward up to four years and corrects 'on-site' wording, maintaining the bill's intent for child care and health incentives.
SB635 596: Senator Waters (on SB 654) Information Only00:39:00.720 - 9:03:22 AM; Senator Waters supports the child care incentive concept but suggests removing the health care credit section (lines 15-23) for simplicity and lower cost, emphasizing one step at a time given budget deficits.
SB635 596: Senator Rosenwald (on SB 654) Information Only00:42:31.760 - 9:06:53 AM; Senator Rosenwald questions the nexus between part-time work incentives and the $10,000 health credit, noting average small group premiums are $7,000, agreeing the health part seems unrelated.
SB635 596: Senator Murphy (on SB 654) Oppose00:43:38.400 - 9:08:00 AM; Senator Murphy criticizes the bill as overly prescriptive on child care location (same building/park but not across street) and discriminatory against non-school-hour shifts (e.g., 2pm-10pm), suggesting it treats parents unequally and ignores night shift childcare needs.
SB635 596: Senator Sullivan (response on SB 654) Support00:44:30.800 - 9:08:52 AM; Senator Sullivan defends the bill's focus on school-hour part-time work to reduce before/after-school childcare needs, allowing parents to handle drop-offs/pick-ups, and on-site/vicinity criteria for family proximity (e.g., lunch, nursing). She proposes a half-mile parameter for flexibility and emphasizes healthier family environments amid rising costs.
SB635 596: Chair Lang (on SB 654) Support00:49:32.800 - 9:13:54 AM; Chair Lang views the bill as a daytime workforce incentive for parents with school-age children, improving family time and addressing mental health crises from long childcare hours, without raising taxes.
SB635 596: Senator Waters (on SB 654, continued) Information Only00:51:09.839 - 9:15:31 AM; Senator Waters suggests a pilot program limited to five businesses at $100,000 each to test uptake and control costs, noting current low adoption and potential for expansion if successful.
SB635 596: Senator Rosenwald (on SB 654, continued) Support00:52:09.280 - 9:16:31 AM; Senator Rosenwald stresses the bill addresses affordability, childcare, and health costs without property tax hikes, arguing for comprehensive action given the crisis, despite pilot suggestions.
SB635 596: Senator Roosevelt (on SB 654) Information Only00:54:06.720 - 9:18:28 AM; Senator Roosevelt highlights the childcare workforce shortage (low pay, thousands of unfilled slots) as a barrier, noting steps in finance to build capacity and personal experience in manufacturing.
SB654 2026789s: Senator Sullivan Vote01:22:09.840 - 9:46:31 AM; Moved for ought to pass on SB 654 and introduced amendment 2026789s. Discussed changes including red line corrections on lines 13 and 22.
SB654 2026789s: Committee Chair Vote01:22:09.840 - 9:46:31 AM; Acknowledged motion for ought to pass and amendment introduction. Proposed committee amendments including reducing gross amount from $5 million to $2.5 million on page 2 line 9, and other changes discussed.
SB654 2026789s: Senator Murphy Vote01:23:18.080 - 9:47:40 AM; Recommended changes to amendment: on line 8, delete 'running' and add 'operating or contracting'; on line 16, add 'on-site' before childcare facility. Noted addition for quarter mile provision.
SB654 2026789s: Committee Chair Vote01:24:10.719 - 9:48:32 AM; Clarified changes to amendment: strike 'running' add 'operating or contracting for on-site or nearby childcare services' on line 8; change period to comma and add 'or within one quarter mile of the above' on line 12; add 'on-site' on line 16; accept red lines on lines 13 and 22; reduce to 2.5 million on page 2 line 9. Called for vote on committee amendment.
SB654 2026789s: Committee Member Vote01:26:09.280 - 9:50:31 AM; Suggested adding preposition after 'contracting' for clarity in the amendment language.
SB654 2026789s: Committee Chair Vote01:26:56.560 - 9:51:18 AM; Agreed to add 'for' after 'contracting' for clarification. Called vote: amendment adopted. Then voted on bill as amended: ought to pass, passed 3-2.
SB654 2026789s: Senator Sullivan Vote01:28:00.800 - 9:52:22 AM; Agreed to take the bill out of committee.
SB635 596s: Senator Sullivan Vote01:28:00.800 - 9:52:22 AM; Moved for ought to pass on SB 635.
SB635 596s: Committee Chair Vote01:28:46.080 - 9:53:08 AM; Seconded the motion and moved to adopt amendment 596s. Proposed changes: reduce from $10 million to $2.5 million on page 2 line 12; add appropriation language from SB 654 (lines 24-28, $40,000) at the request of DRRA.
SB635 596s: Committee Member Information Only01:29:54.880 - 9:54:16 AM; Questioned the first-come-first-serve application process and noted that only 147 businesses maximum, with potential for large businesses to max out credits quickly.
SB635 596s: Senator Waters Oppose01:30:46.239 - 9:55:08 AM; Expressed support for the concept but apprehension about fiscal responsibility and readiness of the bill, noting it will go to finance.
SB635 596s: Senator Rose Oppose01:31:32.480 - 9:55:54 AM; Agreed the bill is not ready and since it applies to taxable periods beginning two years from now, suggested more work and consideration in the next budget.
SB635 596s: Committee Chair Vote01:32:23.199 - 9:56:45 AM; Clarified the vote is on amendment 596s with changes: reduce to $2.5 million and add $40,000 appropriation. Amendment adopted. Then voted on ought to pass as amended: passed 3-2.
SB635 596s: Committee Chair Vote01:33:34.000 - 9:57:56 AM; Agreed to take the bill out of committee.
SB561 191: Committee Chair Vote01:33:34.000 - 9:57:56 AM; Moved for inexpedient to legislate (ITL) on SB 561.
SB561 191: Senator Murphy Support01:33:34.000 - 9:57:56 AM; Opposed ITL, stating it's a good bill providing options for pending applicants without obligations or harm; protects existing operators; no opposition at hearing.
SB561 191: Committee Chair Vote01:34:27.120 - 9:58:49 AM; Called vote on ITL: passed 3-2. Discussed consent calendar but noted objection possible; ultimately unanimous consent vote, but chair to take it out.

Lang, Timothy(Chairman)(R)[B-]2025	Murphy, Keith(V Chairman)(R)[A]2025	Rosenwald, Cindy(D)[F]2025
Fenton, Donovan(D)[F]2025	Sullivan, Victoria(R)[A-]2025