House Rules Committee adopts amendment to HB 4075 and refers bill on rural hospital loan guarantees to Ways and Means

The House Committee on Rules on Feb. 25, 2026, adopted an amendment to House Bill 4075 and voted to refer the bill to the Joint Committee on Ways and Means.

Alexandra, committee staff, summarized the proposal, saying the measure would permit the state treasurer to use up to 20% of the Unclaimed Property and Estates Fund to guarantee "rural hospital stabilization loans" for qualifying hospitals. She described eligibility requirements and loan terms included in the amendment: loans must be to a hospital that meets a statutory definition of rural, is governed by a publicly elected board and receives Medicare reimbursement for diagnostic related groups; acceptable loan uses are limited to addressing cash shortages and refinancing existing debt; loans must have a maturity no longer than 20 years after closing and be fully amortized with no interest-only or balloon payments; and loans must be secured by a first-position lien on hospital property and equipment. Alexandra also said the treasurer could extend up to $44,000,000 from the Unclaimed Property and Estates Fund if a loan is issued no later than April 1, 2027, and that the bill would declare an emergency and be effective on passage.

Vice Chair Chester Pham moved to adopt the dash 8 amendment and later moved that HB 4075, as amended, be reported to the floor with a do-pass recommendation and referred to the Joint Committee on Ways and Means. The committee adopted the dash 8 amendment by roll call and then, after brief debate, voted 5–2 to advance the amended bill to Ways and Means.

Representative Graeber said he sympathized with hospital staff and said "this hospital can't close," but he voiced "very serious concerns about taking money where it could affect the Common School Fund" and asked for broader local and state participation in any solution. He concluded, "I will be a no on this bill today as it stands." Representative Krop said he would vote to advance the bill so the discussion can continue in Ways and Means but reserved how he would vote on final passage. Representative Wallen warned the bill could "open the floodgates" to many hospitals seeking relief and criticized regulatory burdens she said have increased costs; she said she would vote no while supporting further consideration in Ways and Means.

The final roll call on the motion to move the amended bill to the floor recorded five votes in favor and two opposed; Chair Bowman announced the motion passed and the bill will be considered next by Ways and Means.

Action items recorded at the meeting include the committee’s adoption of the dash 8 amendment and the committee’s referral of HB 4075, as amended, to the Joint Committee on Ways and Means. No final floor-level passage or statutory implementation occurred at this meeting; the referral places the bill under further fiscal review in Ways and Means.

The committee adjourned after the vote.