Summary: The Budget Subcommittee on Health and Human Services heard a series of budget items focused first on the California Department of Aging and then on the Department of Social Services. For Aging, the director reported the state is at the midpoint of the Master Plan for Aging, with about 300 initiatives launched and roughly three-quarters completed, nearly $1 billion invested, and expanded local planning, research, and stakeholder engagement. The committee also discussed HICAP modernization, which would add ongoing funding from the Special HICAP Fund to expand Medicare counseling capacity, and senior meal programs, including support for virtual congregate/to-go meals and the use of prior one-time nutrition investments. The chair raised concerns about federal H.R. 1 and its downstream effects on older adults, food assistance, and other safety-net programs, and the department said its direct budget was not affected but that other programs serving older adults could be under pressure. The committee then reviewed multiple CDSS proposals. These included implementing the federal Medicaid Access Rule by creating a statewide grievance process and critical incident reporting system for IHSS and other home- and community-based services; housing and homelessness programs such as CalWORKs Housing Support, Housing and Disability Advocacy, Home Safe, and Bringing Families Home, where the department described strong outcomes but warned that one-time funding is expiring and services are scaling back; and permanent position authority for the Housing and Homelessness Division. Members also heard about the facility management system modernization for Community Care Licensing, home care services branch solvency and regulation work, child care centers in multifamily housing, the Seizure Emergency Response Act, licensing during emergencies and disasters, the Family Preparedness Plan Act, and social services automation projects including CalSAWS, the enterprise data pipeline, and CalWORKs child support notices. The LAO and Department of Finance generally had no additional comments or were still reviewing several requests. A notable exchange occurred on the Community Care Licensing item, where Senator Grove pressed the department about the Autumn Oaks facility in Tulare County, citing dozens of complaints and severe conditions affecting seniors. The department said it had worked with the county and ombudsman on relocation, was reviewing what went wrong, and had authority to pursue administrative action even after a license surrender. The hearing ended with a stakeholder presentation from the California Association of Area Agencies on Aging supporting a $62.3 million Older Californians Act request, followed by public comment from advocates for housing, Meals on Wheels, HICAP, Home Safe, and H-DAP. The subcommittee adjourned without taking votes, and all items were held open.

Summary: The Senate convened with a quorum, offered prayer and the Pledge of Allegiance, and recognized several guests, including representatives of the National Council of Negro Women, students from Santa Clarita Christian School, and the Coachella Valley High School girls soccer team. The chamber then moved to confirmations and resolutions. Andy Nakahata was confirmed as executive director of the California Infrastructure and Economic Development Bank by a 32-0 vote, Richard Stein was confirmed to the California Arts Council by a 33-0 vote, and Nick Hardiman was confirmed to the California Housing Finance Agency Board of Directors by a 33-0 vote. The Senate adopted SCR 127, recognizing December as Multi-Faith Heritage Month, by unanimous roll call. Members also adopted SCR 110, designating March 16–22, 2026 as Women’s Military History Week, after remarks highlighting women veterans and military leaders, and SCR 137, proclaiming March 15 as Justice Ruth Bader Ginsburg Day, with several senators speaking in support of Ginsburg’s legacy and the importance of women’s equality. SR 85, recognizing March 8–14, 2026 as Multiple Sclerosis Awareness Week, was also adopted unanimously. The Senate then approved the special consent calendar, including Assembly Concurrent Resolutions 127, 128, 132, and 134, by a 33-0 vote. Committee announcements followed, with several budget subcommittees and the Select Committee on California’s Wine Industry announcing upcoming meetings. The session concluded with an adjournment in memory of Dr. William Ma, offered by Senator Wiener, and the Senate announced it would reconvene on Monday, March 16, 2026.

Summary: The Senate Labor and Public Employment Committee held an oversight hearing on federal policy impacts on California’s labor market. In opening remarks, the chair argued that federal actions, including immigration enforcement, tariffs, and cuts to safety-net programs, are harming workers, employers, and communities, and said the committee wanted to document impacts and identify state responses. The first panel featured economist Enrique Lopez Lira of UC Berkeley, who described slow job growth, wage pressures, high housing and care costs, and the large share of California workers in low-wage jobs. He said federal cuts to Medi-Cal and SNAP/CalFresh and increased immigration enforcement would worsen insecurity, especially in health care, retail, hospitality, agriculture, and care work. The chair asked about recession indicators, middle-wage stagnation, and which sectors rely most on safety-net programs, and Lopez Lira said worker organizing and unions were a source of hope. A second panel focused on federal immigration enforcement. UC Merced’s Edward Orozco Flores presented research finding that private-sector employment in enforcement-targeted states fell during escalated enforcement periods, with California experiencing unprecedented declines in 2025. He urged policymakers to consider wage-replacement or stimulus-style support for affected workers, including excluded workers who cannot access unemployment insurance. Shannon Sedgwick of the Los Angeles County Economic Development Corporation said undocumented workers are deeply embedded in the county economy, generating substantial economic activity and supporting over a million jobs. She reported that intensified enforcement in Los Angeles County was associated with business disruptions, reduced sales and customer traffic, workforce instability, lower transit ridership in vulnerable areas, and losses from the downtown curfew. Committee members asked about impacts on small businesses, tax revenue, and recovery, and witnesses pointed to local resiliency funds, business toolkits, and know-your-rights efforts as partial responses. The hearing then heard from worker representatives. Flore Melendres of the Clean Car Wash Worker Center said car washes have been heavily targeted by federal agents, with hundreds of workers taken from workplaces, many businesses disrupted or closed, and workers living in fear; she urged support for AB 2271 to provide financial benefits to families who lost income because of DHS activity. California Nurses Association president Michelle Gutierrez-Vos said H.R. 1’s Medi-Cal and Covered California cuts threaten hospital finances, jobs, and patient care, and she backed CalCare (AB 1900), a hospital closure moratorium, and more support for nursing education. UAW 4811 president Rafael Jaime said federal research cuts are putting UC research funding and postdoctoral jobs at risk and endorsed SB 895, a proposed bond measure for health and scientific research. AFGE representatives Wallace Wade and Kendrick Roberson described the strain on federal workers during shutdowns, unpaid work, staffing losses, and the effects on TSA, Social Security, VA services, and worker housing stability; they supported SB 1155 to protect federal workers from eviction. Committee members thanked the witnesses and said the testimony showed both the human and economic consequences of federal policy. In the final panel, employer groups began responding to the same federal pressures. California Retailers Association president Rachel Michelin said retail is a major private-sector employer and a key entry point for young workers, and that retailers are seeing the effects of rising costs, supply-chain shifts, and consumer pressure at the checkout counter. The hearing continued with additional employer testimony beyond the provided excerpt.

Summary: The Senate Rules Committee met to consider several governor’s appointments, bill referrals, rule-waiver requests, and floor acknowledgments. The committee approved a series of non-appearing appointments, including Peter Briar-T to the Southern Low-Level Radioactive Waste Commission, multiple appointments to the Acupuncture Board, Roy Mathur to the Board of Pilot Commissioners, and Davina Hurt to the California Water Commission, with most votes unanimous and Hurt’s appointment approved 3-2. The committee also approved bill referrals, rule waivers for guests on the Senate floor, and floor acknowledgments. The committee then heard testimony from Lillian Corral, appointed to the California Community Colleges Board of Governors. Corral emphasized her background as a first-generation college graduate and immigrant, and said her priorities would include helping students connect to livable-wage jobs, supporting Vision 2030, improving data and digital infrastructure, expanding dual enrollment, and considering regional bachelor’s degree programs at community colleges where workforce needs justify them. Senators questioned her about achievement gaps, the role of data in improving student outcomes, the expansion of community college bachelor’s degrees, faculty staffing, and her employer New America’s positions on privacy, age verification, and TikTok. The committee voted 3-0 to advance her appointment to the full Senate. The committee also heard from Paul Tupi, nominated to lead the Department of Alcoholic Beverage Control. Tupi described a career in law enforcement and said he would focus on public trust, timely licensing, licensee education, and enforcement against irresponsible operators. Senators asked about ABC’s enforcement tools, including decoy operations, shoulder-tap checks, delivery compliance, and investigations tied to alcohol-related crashes; funding stability; delivery alcohol violations during COVID; and ABC’s approach to entertainment zones and other alcohol-policy changes. Support testimony came from industry and advocacy representatives, who praised his responsiveness and open-door approach. The committee approved his appointment 5-0 for consideration by the full Senate.

Summary: The informational hearing focused on California’s future water supply and, in particular, how the state tracks and manages commercial, industrial, and institutional (CII) water use, including data centers. The chair and members framed the issue as a “trifecta” of climate-driven supply uncertainty, limited monitoring of CII uses, and rapidly changing industries with significant water demands. Committee members emphasized the need for better data before imposing broad regulations, while also expressing concern about protecting ratepayers and ensuring new large users pay their fair share. Representatives from the Department of Water Resources and the State Water Resources Control Board reviewed the state’s existing framework: urban water management plans, water supply assessments for large projects, SBX7-7’s 20% by 2020 conservation goals, and the 2018 Making Conservation a California Way of Life law. They explained that process water, including data center cooling water, is statutorily excluded from some conservation targets, and that current CII reporting is aggregated rather than facility-specific. They also noted that local water suppliers and land use agencies retain major responsibility for approving development, while state rules and groundwater sustainability requirements provide additional checks. Committee members pressed the agencies on whether data centers should be treated differently, how recycled water is categorized, whether process water should remain exempt, and whether the state has enough information to understand the water impacts of new facilities. The agencies said they could not recommend specific water sources for individual facilities, but could support community-by-community planning and best management practices. They also said the Legislature could direct additional data collection if needed. No votes were taken; the hearing was informational only. The second panel, from CalWEP and California Water Service, described how suppliers are implementing CII programs in practice. They said CII use varies widely by sector and location, making one-size-fits-all benchmarks difficult. They highlighted tools such as AI-assisted customer classification, mapping of disclosure buildings, outreach guides, and customized rebate programs for high-use customers. Examples included water-saving projects at a hydrogen plant, a commercial laundry, and fire department training systems. Speakers stressed that CII conservation work is resource-intensive, often takes years, and works best when paired with local planning, customer outreach, and targeted incentives.

Summary: The Assembly Budget Subcommittee on Human Services heard an informational hearing on child welfare, foster care, community care licensing, child support, and related budget issues. CDSS described the Governor’s proposed child and family services budget, emphasized a family-centered and kin-first approach, and reported that foster care entries and congregate care placements have declined over the past decade. Witnesses also highlighted the importance of extended foster care to age 21, while noting persistent racial disparities for Native American and Black children and the need for stronger prevention, family finding, and community-based supports. A major focus was the proposed tiered rate structure (TRS), which CDSS said would shift funding from placement-based rates to child-centered supports, including care and supervision, strength-building dollars, and immediate needs funding paired with high-fidelity wraparound services. CDSS and county representatives said implementation is on track, with foundational policy guidance expected by the end of the year, CANS/CFT timeliness targeted by year-end, and the CWS CARES system nearing go-live in October 2026. Counties and providers raised concerns about whether the rate model and wraparound capacity will be sufficient, especially for higher-acuity youth, and asked for more data, clearer guidance, and continued collaboration. County Welfare Directors Association representatives also requested continued emergency response funding and an extension of flexible family supports, arguing both are needed to stabilize front-end child welfare work and bridge to TRS. Providers from FFAs and STRTPs warned that insurance costs, provider closures, and the transition to TRS could threaten service capacity unless the state addresses long-term insurance and reimbursement issues. LAO noted the Governor’s budget contains no new child welfare augmentations and said the main General Fund change reflects the expiration of one-time funding. No votes were taken; members instead asked for follow-up data, technical assistance, and possible future legislative or trailer bill solutions, including on insurance and implementation timelines.

Summary: The committee held an outcomes review hearing on AB 457 and related farmworker and rural housing policy, with members and witnesses discussing whether recent streamlining laws are actually increasing production. Chair Haney, Assembly Members Soria and Pellerin, and others described the purpose of AB 457 and its predecessor bills AB 1783 and AB 3035: to make farmworker housing easier to build through ministerial approval and other reforms. Witnesses emphasized that farmworkers face severe overcrowding, high rents, long commutes, and limited access to housing in both rural and coastal agricultural regions. The first panel focused on practical barriers and local models. Napa County described its county-owned farmworker centers, which provide nightly lodging, meals, and services, funded by lodger fees, a grower assessment, and state support. Testimony stressed that these centers function as navigation hubs rather than permanent housing, and that stable, inflation-adjusted operating funding, language access, transportation, and local set-asides are critical. United Farm Workers urged that local farmworkers be prioritized over H-2A workers and warned against displacing long-term resident workers. Several witnesses said the biggest barriers remain infrastructure, land costs, local opposition, and insufficient subsidy rather than approval streamlining alone. The second and third panels addressed AB 457’s implementation and broader state funding issues. Santa Clara County said the bill could help on a county-owned Gilroy site, but financing remains the main obstacle. Self-Help Enterprises said AB 457’s expanded geography and project-size rules may help future sites, but rural projects still struggle with water, sewer, and environmental review costs, and with the state’s Super NOFA process, which tends to favor deeper-income projects that do not match farmworker household incomes. HCD reported that CERNA and other programs have increased farmworker housing production in recent years, but witnesses argued that rural regions still receive too little funding, that infrastructure dollars are too fragmented, and that more rural-specific set-asides, local funding incentives, and predictable allocations are needed. No votes or formal actions were taken during the hearing.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on how H.R. 1’s new federal work and community engagement rules will affect Medi-Cal and CalFresh, especially for Californians with behavioral health needs, people experiencing homelessness, and justice-involved individuals. The Legislative Analyst’s Office outlined the scope of the changes, including Medi-Cal work requirements beginning in January 2027 and CalFresh changes beginning in June 2026, and estimated large potential coverage losses if people cannot document exemptions or comply with reporting rules. State departments said they are still awaiting some federal guidance but are already building implementation plans, data matching, outreach campaigns, and system changes to reduce disruption and automatically identify exemptions where possible. Department of Health Care Services and Department of Social Services officials described efforts to use existing data, CalSAWS, and cross-program coordination to streamline exemption screening, including for medical frailty, serious mental illness, substance use disorders, and student status. They said outreach will include text messaging, webinars, county training, and community-based partners, while also acknowledging that many people will still need direct worker contact. County representatives stressed that the new rules will create major administrative burdens, require significant new staffing, and could lead to coverage loss if counties are not adequately funded. They urged the Legislature to release the $20 million in current-year General Fund for CalFresh implementation and to consider a much larger county augmentation next year. Assembly members pressed the administration on outreach strategy, county funding, consistency across counties, and how to avoid harming eligible people through overly aggressive implementation. They also asked about coordination with universities, CDCR, and community-based organizations, and about how exemptions would be documented for mental health and substance use conditions. Department officials said they are working with counties, education institutions, and correctional agencies, and that they are trying to align Medi-Cal and CalFresh rules where possible, but not all federal definitions match. Public commenters from legal aid, counties, labor, and public hospitals warned that work requirements do not increase employment, will worsen food insecurity and health outcomes, and will strain county systems unless the state provides more funding and support.

Summary: The Communications and Conveyance Committee held an oversight hearing on the California Public Utilities Commission (CPUC), focused on telecommunications, broadband deployment, resiliency, and the California Teleconnect Fund. Chair Tasha Boerner said the hearing was intended to examine structural issues at the CPUC, including whether telecommunications oversight should remain within the commission, while also reviewing major programs such as Last Mile, BEAD, carrier of last resort, and emergency preparedness. CPUC President John Reynolds and Deputy Executive Director Anna Maria Johnson described the commission’s work on public safety, universal service, broadband grants, Lifeline modernization, and network resiliency, including the 72-hour backup power requirement and merger review. Members questioned CPUC officials about the pace and metrics for Last Mile and BEAD projects, the relationship between middle-mile and last-mile buildout, and how the commission balances carrier obligations with the risk of driving providers out of high-cost areas. They also pressed the CPUC on the California Lifeline home broadband pilot, asking when enrollment would be available, which providers were participating, how much of the state would be covered, and what the surcharge impact would be. CPUC said 15 providers had been approved, one was already serving customers, and the rest were still onboarding, and it committed to provide follow-up information on timelines, coverage, and costs. A major portion of the hearing centered on the California Teleconnect Fund and proposed changes to how schools would access the program. Superintendent Tony Thurmond argued strongly against shifting administration from county offices of education and districts to individual schools, saying it would add burden, worsen inequities, and risk underuse of a valuable broadband subsidy. Committee members echoed concerns that smaller schools and districts may lack the staff to manage direct applications and reporting. In public comment, the Los Angeles County Office of Education supported the CDE’s position and urged changes that would align the program more closely with E-Rate and reduce administrative burdens. No formal vote was taken, and Chair Boerner closed by saying she remained committed to pursuing reforms to the CPUC and referenced her bills AB 2289 and ACA 9.

Summary: The meeting began with a budget subcommittee hearing on a proposed sustainable aviation fuel (SAF) tax credit trailer bill. Assembly Members Ávila Farías and another member spoke in support, emphasizing union jobs, refinery investments, and the need to decarbonize aviation. The Department of Finance said the Governor’s proposal would provide a $1 to $2 per gallon credit against the diesel excise tax for SAF sold in California from 2026 to 2036. The Legislative Analyst’s Office recommended rejecting the proposal, arguing it is a relatively expensive way to reduce emissions, has uncertain environmental benefits, could significantly reduce transportation revenues, and conflicts with the spirit of voter restrictions on transportation taxes. Committee members questioned whether the credit would mainly benefit out-of-state producers, whether firms would have diesel tax liability to use the credit, and whether the proposal would shift production away from renewable diesel and raise fuel prices. Administration and CARB staff said the credit is intended to support aviation decarbonization, preserve jobs, and help keep California on track toward its 2045 climate goals. LAO and UC Berkeley testimony countered that the policy could mostly subsidize existing technologies, that feedstock supply is limited, and that the net emissions benefit may be small relative to the cost. Members also asked about the effect on local streets and roads, SHOP, and trade corridor funding; Finance estimated a $165 million annual revenue impact would reduce those programs, while LAO said the reductions would mean fewer projects over time. No vote was taken, and the chair said the issue would remain open for further discussion. The committee then moved to a zero-emission vehicle incentive trailer bill proposing a one-time $200 million appropriation to CARB for a new point-of-sale incentive program focused on first-time buyers and leases of new and used light-duty ZEVs. Supporters said the program would help offset the loss of the federal EV tax credit, maintain momentum in California’s ZEV transition, and use a one-to-one match with participating automakers to double the state’s investment. LAO recommended rejection, saying the proposal does not meet the high budget bar this year, lacks enough program detail to evaluate, is unlikely to move sales significantly given the size of the appropriation, and could duplicate existing state and utility programs. Members asked about current incentives across light-, medium-, and heavy-duty sectors, the recent decline in ZEV sales, and whether the program would help lower-income buyers rather than subsidize purchases that would have happened anyway. CARB said the proposal is meant to fill a gap in the light-duty market, where sales fell sharply after the federal credit expired, and noted existing programs for other vehicle classes. The Department of Finance also addressed a separate question about the Motor Vehicle Account, saying a previously planned GGRF transfer was no longer needed because updated forecasts showed the fund had sufficient balances, though LAO said the account still has a structural long-term imbalance. The discussion ended before any vote or action on the ZEV proposal.