Transcript Highlights:

• It would require parents who accept DSAs to waive their federal and state special education rights, leaving
• poverty level that's about $160,000 a year ask ourselves how many kids are earning $160,000 a year are
• Poverty Rate Income Level, is different than the demographics of a family at 185 percent of the Federal
• Poverty Level, which equals about $55,000.
• comments and the rhetoric that we just heard that are the talking points of the American Federation of

Bills: SB2 , SJR36 , SB2 , SB2 , SR29 , SB2

Transcript Highlights:

• Roughly four in 10 of our enrollees earn under 200% of the federal poverty line.
• Roughly four in 10 of our enrollees earn under 200% of the federal poverty level, or around $31,000 a
• We are very closely watching and waiting for federal rules that will give more bones around the federal
• We are very closely watching and waiting for federal rules that will give more details around the federal
• Whitney Francis with the Western Center on Law and Poverty.

Summary: The joint informational hearing of the Senate and Assembly Health Committees focused on the cost of federal instability for California health coverage, access, and affordability. Opening remarks from members of both houses emphasized that California’s coverage gains under the Affordable Care Act are now threatened by federal policy changes, including the expiration of enhanced premium tax credits, H.R. 1, and new federal regulatory actions. Members repeatedly cited rising premiums, skipped care, medical debt, and the risk that low-income, immigrant, and working Californians could lose coverage or be pushed into less comprehensive plans. The first panel reviewed the federal landscape and state response. Don Joyce described the ACA’s coverage expansions and warned that H.R. 1, regulatory changes, and broader federal retrenchment could reduce coverage and weaken meaningful benefits. Covered California Executive Director Jessica Altman said the loss of enhanced premium tax credits is driving major affordability problems, with average monthly premiums projected to rise sharply and enrollment already down, especially among middle-income consumers. HCAI’s Elizabeth Lansberg explained the Office of Health Care Affordability’s role in slowing spending growth, monitoring consolidation, and setting spending targets, including lower targets for high-cost hospitals and new primary care investment goals. Members asked about bronze plans, high-cost hospitals, administrative burdens, provider taxes, and whether federal advisory changes could affect required benefits such as immunizations. The second panel examined population impacts and cost drivers. UC Berkeley Labor Center’s Miranda Dietz said most Californians get coverage through employers, Medi-Cal, or Covered California, and that affordability problems are widespread across all groups. She projected that California could have up to 2 million more uninsured residents by 2030, largely from Medi-Cal losses, and said higher premiums reduce wages and increase medical debt. Christoph Stremakis of the California Health Care Foundation highlighted survey data showing widespread concern about medical bills, skipped care, and medical debt, and argued that a large share of spending is wasted through administrative complexity, inflated prices, and underinvestment in prevention. Committee members pressed the panel on whether California can sustain coverage without new revenue, how cost-growth targets affect workers and families, how medical debt relief programs like Los Angeles County’s could be expanded, and how OCA can address uncompensated care, consolidation, and prior authorization burdens.

Transcript Highlights:

• In the absence of any federal guidance, this bill has done...
• In the absence of any federal guidance, this bill ensures fairness for consumers and businesses alike
• Assembly Bill 1969 by Assembly Member Bonta, relating to poverty. Ms.
• We are also facing the loss of potentially billions of health care dollars due to changes in federal
• , and ensure we are meaningfully reducing child poverty over time.

Transcript Highlights:

• Roughly four in 10 of our enrollees earn under 200% of the federal poverty line.
• In 10 of our enrollees earn under 200% of the federal poverty level, or around $31,000 a year for an
• We are very closely watching and waiting for federal rules that will give more bones around the federal
• Whitney Francis with the Western Center on Law and Poverty.
• Whitney Francis with the Western Center on Law and Poverty.

Summary: The joint informational hearing of the Senate and Assembly Health Committees focused on the “cost of uncertainty” in health coverage, access, and affordability amid federal policy changes. Opening remarks from committee leaders and members emphasized that California’s gains under the Affordable Care Act and Health for All policies—high coverage rates, consumer protections, and lower uninsured rates—are now threatened by federal rollbacks, including the expiration of enhanced premium tax credits and H.R. 1. Members repeatedly cited rising premiums, skipped care, medical debt, and the risk of coverage losses, especially for low-income Californians, workers, seniors, and immigrant communities. The first panel featured federal policy and state implementation experts, including Don Joyce, Jessica Altman of Covered California, and Elizabeth Lansberg of HCAI’s Office of Health Care Affordability. Testimony described the ACA’s coverage expansions and the current federal threats: shorter open enrollment, more verification requirements, loss of enhanced subsidies, and changes affecting immigrants and preventive coverage. Covered California reported that average monthly premiums could nearly double without the subsidies, new enrollment is down sharply, and more consumers are shifting into bronze plans with higher deductibles. HCAI explained its affordability strategy through spending targets, consolidation review, and primary care investment, while members asked about the impact of federal cuts on provider taxes, uncompensated care, and whether California can sustain coverage without new revenue. The second panel, with UC Berkeley Labor Center’s Miranda Dietz and California Health Care Foundation’s Christoph Stremikis, broadened the discussion to statewide cost drivers and consumer impacts. They highlighted that more than half of Californians under 65 rely on job-based coverage, yet premiums, deductibles, and out-of-pocket costs have risen faster than wages. They also pointed to medical debt, administrative waste, market consolidation, and underinvestment in primary care as major drivers of unaffordability. Members asked about the 25% of health spending that does not improve patient care, the role of fraud versus administrative friction, the effect of cost growth targets on workers, and the need for preventive care and possible revenue solutions. The hearing then moved to a third panel on human impacts, beginning with testimony from a Central Valley promotora describing how families are choosing lower-tier coverage, struggling with diabetes care, and facing higher premiums after subsidy losses.

Transcript Highlights:

• Most states in the United States, as well as the federal government, protect juror privacy, and that
• see, one more present in opposition, not wishing to speak by Chandra Shea Foster with the Southern Poverty
• We have Chandra Shea Foster with the Southern Poverty Law Center, in support, wishing to speak.
• We have green cards in support, not wishing to speak, by Mike Mosco with the Southern Poverty Law Center
• We have green cards in support, not wishing to speak, by Mike Mosco with the Southern Poverty Law Center

Bills: HB54 , HB55 , HB125 , HB133 , HB158 , HB161 , HB168 , HB169 , HB191 , HB245 , HB280 , HB296 , HB399 , HB821 , HB995

Committee: House Administration of Criminal Justice

Keywords: juror confidentiality, public records, criminal procedure, privacy, court disclosure, sex offender, sex offense, child predator, registry, registration, notification, supervised release, probation and parole, parole, juvenile offender, victim under 13, community notification, lifetime registration, failure to register, venue

Transcript Highlights:

• If we are going to succumb to that, then we may as well just go ahead and federalize it.
• do away with this committee, and we can do away with the other committees in all 50 states. ...federalize
• ...federalize it.
• When I was in the legislature, the federal government passed something called the Graham-Leach-Bliley
• Insurance, because of McCarran-Ferguson, is not regulated by the federal government.

Committee: House Insurance

Summary: The House Insurance Committee met on April 23 with a quorum present and first deferred HB 1142. The committee then heard HB 1187, which would direct any excess Louisiana Citizens emergency assessment funds, after related debt is paid, toward the Louisiana Fortified Homes Program or future Citizens debt. Representative Sawyer and Commissioner Tim Temple said the bill would likely redirect about $50 million in one-time surplus funds and would help expand a popular roof-mitigation program that has already awarded more than 4,600 fortified roofs. The bill drew support from several witnesses and was reported as amended without objection. Next, HB 1210, dealing with insurance claim disputes and a pre-suit review process for Louisiana Citizens claims, was discussed. Representative Dana Henry said he was voluntarily deferring the bill and instead pursuing a study resolution after hearing concerns from members and stakeholders. Department and Citizens officials said the proposal was modeled on Florida’s process and could help resolve disputes faster and cheaper, but the bill was ultimately voluntarily deferred after testimony and some opposition cards were noted. The committee then took up HB 1199, which requires coverage for genetic testing and treatment related to SCN2A-associated disorders. Representative Jordan and the Diedon family gave emotional testimony about their daughter Emily’s diagnosis and the importance of timely genetic testing. The bill was amended to require that testing be ordered by a provider and deemed medically necessary by the health plan, with discussion about whether a neurologist should be involved; members said that issue could be refined later. HB 1199 was reported as amended. Finally, the committee considered HB 880, the Louisiana Artificial Intelligence Insurance Fairness Act, which would regulate AI use in underwriting, rating, and claims. After a lengthy discussion about state insurance regulation, McCarran-Ferguson, and concerns that the bill could jeopardize federal broadband funding, Representative Jordan voluntarily deferred HB 880, and HB 920 was also deferred. The committee then heard HB 1221, which would limit the policy data collected for the Louisiana Fortified Program Fund. Former Representative Bowler argued the bill was needed to protect policyholder privacy, while the Department of Insurance and Commissioner Temple said the data is needed for surplus-lines premium tax audits, fraud detection, and consumer assistance after disasters. The discussion continued with questions about what data would be visible and how it would be used, but the transcript ends before a final action on HB 1221 is shown.

Transcript Highlights:

• Federal regulations come out that deal with any of these ingredients or additives, then the federal regulation
• But if the federal government...
• those regulations the federal government put in place? Not advised.
• Federal preemption is another attempt to...
• Those guidelines have been out for decades.

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:

• Christopher Sanchez with the Consumer Federation of California in opposition.
• Christopher Sanchez with the Consumer Federation of California in opposition.
• And I mean, the fact the federal antitrust law worked is very exciting for me.
• When I worked at the Federal Trade Commission, we sent a letter to Nest.
• It aligns with the federal Take It Down Act, also important.

Committee: House Privacy and Consumer Protection

Transcript Highlights:

• You mentioned it was federally managed.
• We did Broward flooding number two, which did not get a federal declaration.
• When do we get money from the federal government?
• When do we not get money from the federal government?
• When do we get money from the federal government?

Bills: S7040 , S0110 , S0434 , S0856

Committee: Senate Appropriations

Summary: The committee met with a quorum present and took up three property-tax related bills before turning to a broader discussion of the Emergency Preparedness and Response Fund. SB 434, which would prohibit counties from increasing a residential property’s assessed value because the owner installed wind mitigation measures, was presented by Senator Lee and reported favorably. CS for SB 110, which clarifies that holders of 98-year-or-longer residential leases remain eligible for the homestead exemption even if the lease ends at death, was also reported favorably. SB 856, requiring online residential listing platforms to display estimated property taxes using prescribed calculation methods and not the current owner’s tax bill, drew support from property appraisers, Zillow representatives, and others and was reported favorably after questions about transparency and realtor obligations. The committee then considered SPB 7040, which would recreate and extend the Emergency Preparedness and Response Fund through December 31, 2027. Senator DiCeglie and Division of Emergency Management Director Kevin Guthrie argued the fund is needed for hurricane response, other natural and man-made emergencies, and reimbursement-based spending; they said the extension preserves legislative oversight that would otherwise lapse. Several senators questioned the use of the fund for immigration-related operations, detention facilities, and other non-disaster activities, as well as the lack of additional guardrails, reimbursement timing, and transparency. Guthrie said the division has used the fund for hurricanes, flooding, civil unrest, security operations, and other incidents, and that some reimbursements are still pending from the federal government. Public testimony on SPB 7040 was largely opposed. Speakers from the Florida Center for Fiscal and Economic Policy, the Southern Poverty Law Center, Florida for All, and others argued the fund has been repurposed for immigration enforcement and detention-related spending rather than true emergencies, and raised concerns about deaths in detention and the absence of competitive bidding and oversight. Guthrie answered extensive questions about the South Florida and North Florida detention facilities, Operation Vigilant Sentry, State Guard support, reimbursement requests, equipment purchases, and legislative access to facilities. The committee did not take a final vote on SPB 7040 within the portion of the transcript provided.

Transcript Highlights:

• King spoke powerfully about poverty, labor rights, and exploitation, calling for fair wages, the right
• lives of our veterans and our working families who feel like they are living on a lonely island of poverty
• On a lonely island of poverty in the midst of a vast ocean of material prosperity.
• And just last week, a mother murdered by a federal agent. So to that, we say enough.
• Here in the state of California, when we know how to eliminate childhood poverty, but we're choosing

Summary: The Assembly convened after an initial quorum call, then proceeded with prayer, the pledge, and routine motions. Members approved several procedural requests, including moving AB 362 to the inactive file and allowing the Natural Resources Committee to hear AB 34 on January 16. The chamber also recognized guests and paid tribute to retiring Republican caucus consultant Daryl Thomas, with remarks from multiple members praising his long service and legal analysis work. The main floor action centered on ACR 116, a resolution honoring Reverend Dr. Martin Luther King Jr. Members from several caucuses and both parties spoke in support, emphasizing King’s legacy of civil rights, economic justice, nonviolence, and unfinished work. After opening the roll for coauthors, the resolution received 67 coauthors and was adopted by voice vote. The Assembly then took up ACR 118, recognizing Korean American Day; members highlighted Korean American history, community contributions, solidarity with other communities, and the significance of Koreatown and Korean American civic life. That resolution also received 67 coauthors and was adopted by voice vote. The consent calendar was then adopted on a 64-0 vote, including ACR 115 on National Blood Donor Month. The chamber also held an adjournment in memory for former legislator David Kelly, with a tribute to his military service, agricultural background, and legislative work on water conservation and sustainable agriculture. The Assembly announced the upcoming Martin Luther King Day recess and adjourned until Tuesday, January 20 at 1 p.m.

Transcript Highlights:

• And they would likely do so through the federal government.
• You're saying states have to resemble the federal system.
• Here— the federal and international level, as Professor Shansky noted.
• Yvonne Fernandez with the California Federation of Labor Unions.
• One in five Californians experiences poverty and food hardship.

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• And they would likely do so through the federal government.
• You're saying states have to resemble the federal system.
• Yvonne Fernandez with the California Federation of Labor Unions.
• Yvonne Fernandez with the California Federation of Labor Unions.
• One in five Californians experiences poverty and food hardship.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the Water’s Edge election versus worldwide combined reporting. Chairs opened by framing the issue as a review of whether current rules fairly and sufficiently tax foreign subsidiary income, given profit shifting concerns, budget pressures, and the long history since Water’s Edge was adopted in the 1980s. The first panel from the Legislative Analyst’s Office and Franchise Tax Board explained the mechanics of unitary taxation, apportionment, and the Water’s Edge election, and provided filing data showing Water’s Edge filers are a small share of returns but account for a large share of corporate tax liability. FTB witnesses said the agency already administers both methods and could handle a shift to mandatory worldwide reporting with education and outreach, though revenue estimates are difficult because foreign affiliate information is not directly available. Committee members asked about foreign government pushback, administrative burden, industries with more profit shifting, revenue uncertainty, and whether companies would leave California. LAO and FTB witnesses said pushback from foreign governments was plausible, but they did not expect major business flight because California’s tax is largely based on sales rather than physical presence. They also said worldwide reporting could reduce profit shifting but might increase revenue volatility and litigation risk. A second panel of academic and tax policy witnesses argued that Water’s Edge is a loophole that rewards aggressive tax planning, that worldwide combined reporting would better capture income tied to California, and that modern federal and international rules such as NCTI/GILTI, CAMT, and Pillar Two reduce compliance concerns and make a return to worldwide reporting more feasible. They also said California’s current system can create selection effects and may under-tax large multinationals. In the next panel, a California Budget and Policy Center witness urged eliminating the Water’s Edge election, calling it a costly loophole that benefits large global corporations over smaller domestic businesses and deprives the state of billions in revenue that could support health care and other services. A Silicon Valley Leadership Group witness gave historical context for why Water’s Edge was adopted and began outlining concerns about compliance, double taxation, and the risk of overreaching beyond income truly connected to California. No bill was voted on or advanced; the hearing was informational only, with members using the testimony to weigh the policy trade-offs and possible transition periods if the Legislature were to change the current rules.

Transcript Highlights:

• But federal uncertainty remains.
• And these federal rules are, that shows the federal rules around provider taxes.
• The board reinstated the upper income limit to pre-ACA levels at 200% of the federal poverty level.
• poverty level.
• Lastly, we've... ...above 100% of the federal poverty level.

Summary: The Assembly Budget Subcommittee on Health began with a hearing on the impacts of H.R. 1 on California health programs, focusing first on reproductive health state investments. HCAI outlined five state-funded reproductive health programs created after Dobbs, including uncompensated care, practical support, capital and clinical infrastructure, and workforce programs. Essential Access Health and Planned Parenthood testified that these funds have served hundreds of thousands of patients, but warned that the uncompensated care program is fully awarded and needs renewal, and that Title X and Medicaid-related federal uncertainty continues to threaten access. Members questioned who the uncompensated care program serves, why Medi-Cal covers a large share of abortions, and whether Planned Parenthood could expand prenatal services; public commenters urged continued support for reproductive health access. The committee then took up long-term care services and supports, starting with the HCBA and Assisted Living Waiver programs. DHCS reported large wait lists for both programs and said enrollment is limited by workforce and provider capacity, while LAO noted that increasing slots alone may not increase access without additional programmatic changes. Members pressed the department on whether more slots should be added given the lower cost of home- and community-based care compared with skilled nursing facilities, and public testimony argued that the wait lists should be reduced and that staffing concerns do not fully explain unused capacity. The committee also heard testimony on congregate living health facilities, where providers and a patient family described the homes as critical, lower-cost alternatives to nursing facilities for younger, medically complex people. Witnesses requested short-term bridge funding, while DHCS said it is proposing to transition CLFs into a managed care benefit by January 1, 2028, which would remove caps and expand access statewide. The final long-term care topic was PACE. DHCS explained that it has paused new PACE applications and service expansions for at least two years to reassess oversight capacity and develop a statewide strategic growth framework, while existing programs continue operating. CalPACE supported the pause as a planning measure but asked for four additional state nurse positions to reduce delays in level-of-care determinations and speed enrollment for frail older adults. Members shared personal stories about how PACE has helped family members and asked how the state will meet growing demand; DHCS said stakeholder engagement will begin later in the year and that some existing applications already in process will continue. Public commenters broadly supported PACE, HCBA, and CLF funding requests. The hearing then moved to the Department of Health Care Services’ 2026-27 Medi-Cal budget and related trailer bills. DHCS said Medi-Cal spending has grown due to coverage expansions, higher acuity, rising utilization, and especially pharmacy costs, and it described proposals to extend the current skilled nursing facility financing framework for one year while the state develops a new value-based payment strategy. LAO said most recent Medi-Cal spending growth has been driven more by higher per-enrollee costs than by caseload growth, with pharmacy spending growing especially quickly, and recommended better and more timely data to analyze the drivers. Members expressed concern about the rapid rise in Medi-Cal spending and asked for more detail on the largest cost increases.

Transcript Highlights:

• A combined report is not equivalent to a consolidated report for federal purposes.
• And they would likely do so through the federal government.
• You’re saying states have to resemble the federal system.
• Yvonne Fernandez with the California Federation of Labor Unions.
• One in five Californians experiences poverty and food hardship.

Transcript Highlights:

• all School access for all four-year-olds and access for all three-year-olds who are experiencing poverty
• It's been reported by the media that the federal administration is considering a budget proposal that
• would eliminate funding for federal Head Start.
• Yeah, I mean, obviously, either way, it is still state or federal money, right? Yeah.
• And with the increase of workload, not only meeting federal come...

Summary: The hearing focused on California’s early learning and care system, including the Master Plan for Early Learning and Care, universal preschool access, and the state’s transitional kindergarten (TK) expansion. Administration officials said California has made progress toward universal TK for all four-year-olds and expanded access for low-income three-year-olds, children with disabilities, and some two-year-olds in state preschool. The Department of Social Services highlighted ongoing work on quality improvement and a single rate structure, while the Department of Education emphasized continued investments in UPK infrastructure, inclusion, and teacher development. Testimony from advocacy groups stressed that access remains uneven, especially for infants, toddlers, and three-year-olds, and that federal threats to Head Start could significantly disrupt services in California. Witnesses and committee members discussed several policy recommendations for preschool and state preschool programs, including consolidating part-day and full-day contracts, simplifying eligibility priorities, eliminating some family and licensing fees, allowing self-attestation of income, making the two-year-old preschool option permanent, and basing funding on enrollment and the true cost of care. A parent from Contra Costa described losing child care after moving counties for safety reasons, illustrating delays and fragmentation in the system. Providers in public comment argued that reimbursement rates are too low and that better pay and retirement and health benefits are needed to stabilize the workforce. The second panel addressed the governor’s January budget proposal to fully implement universal TK and reduce TK class ratios from 12:1 to 10:1. The Department of Finance said the budget would add about $2.4 billion to serve all eligible four-year-olds and $1.5 billion for the lower ratio. The Legislative Analyst’s Office said its enrollment and cost estimates were lower than the administration’s and projected the ratio change would cost less than proposed. The Department of Education and the Learning Policy Institute reported that TK enrollment and staffing have grown, most districts now offer TK, and many are on track to meet new teacher requirements, but facilities, staffing, and expanded learning remain challenges. Committee members raised concerns about access at all school sites, the need for more full-day options, and the risk that TK expansion could crowd out CSPP and Head Start space.

Transcript Highlights:

• And they would likely do so through the federal government.
• You're saying states have to resemble the federal system.
• Yvonne Fernandez with the California Federation of Labor Unions.
• Yvonne Fernandez with the California Federation of Labor Unions.
• One in five Californians experiences poverty and food hardship.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the state’s water’s-edge election versus worldwide combined reporting. The LAO and Franchise Tax Board explained the basic mechanics of unitary taxation, apportionment, and how water’s-edge generally excludes most foreign subsidiaries while worldwide reporting includes the full unitary group. FTB officials said water’s-edge filers are a small share of corporate filers but account for a large share of tax liability, and they described filing trends, industry mix, and the administrative steps needed to administer either system. Members and witnesses debated the policy trade-offs. Supporters of moving away from water’s-edge argued that it enables profit shifting, especially for large multinational and IP-heavy firms, and that eliminating it could raise significant revenue and improve fairness for smaller domestic businesses. They cited estimates of billions in potential revenue and said California already has the audit and reporting infrastructure to handle worldwide reporting, though some transition time would be needed. Opponents argued that worldwide reporting would tax foreign activity unrelated to California, create double taxation, increase compliance burdens and litigation, and could be difficult for foreign-based multinationals to document. They also warned that some of the revenue estimates are highly uncertain because foreign affiliate income is not directly observable. Committee members asked about foreign government pushback, the risk of companies leaving California, the effect on intellectual property shifting, and whether federal or Supreme Court action could block a change. Witnesses generally said major firms would be unlikely to leave because California taxes sales rather than physical presence, but some costs could be passed on to consumers. The panel also discussed alternatives such as conforming to federal international tax rules like NCTI/GILTI and adding anti-abuse rules. No vote or bill action was taken; the hearing was informational only.

Transcript Highlights:

• Right now, even the most experienced child care professionals often earn less than the federal poverty
• Seventy-six percent of these individuals are below 200% of the federal poverty level.
• Ninety-five percent of these individuals live below 200% of the federal poverty level. homeless I will
• </c><03:20:15.080><c> poverty</c><03:20:15.520><c> level</c> below 200% of the federal poverty level
• below 200% of the federal poverty level kend<03:20:16.479><c> did</c><03:20:16.760><c> a</c><03:20:16.840

Summary: The House Finance Committee opened a public hearing on House Bills 1 and 2, which concern the governor’s proposed FY 2026-2027 budget. The chair explained that the committee must fit the budget to House Ways and Means revenue, which is about $800 million below the governor’s estimate in an almost $16 billion budget. He also noted a projected current-budget overspend, the impact of recently passed legislation, possible fee updates, no new tax proposals at that time, and the importance of federal funding and Medicaid stability. Testimony was limited to three minutes, with the chair asking speakers to avoid duplication. Much of the testimony focused on Medicaid, disability services, and home- and community-based care. Speakers urged the committee to restore or protect funding for transportation, Medicaid, day programs, in-home supports, and behavioral health services. Several individuals and providers described how cuts would affect people with disabilities, medically fragile children, and families who rely on services to remain employed and avoid institutional care. A home care provider argued that a proposed 3% Medicaid cut would increase hospitalizations and costs, while a behavioral health representative asked for sustainable Medicaid rates, uncompensated care support, housing resources, and continued funding for community behavioral health clinics. Another major topic was the Group II retirement provisions in HB 2 for public safety workers. Representatives from police, fire, corrections, probation/parole, and related associations testified in support, saying prior pension changes hurt recruitment and retention, pushed experienced workers to neighboring states, and should be reversed to restore promised benefits. They argued the provisions would help keep public safety careers viable and honor commitments made to first responders. An executive counselor also warned that when the state shifts costs away from itself, local property taxpayers bear the burden, and she opposed cost shifts such as Medicaid premiums and universal vouchers. A separate speaker urged funding public schools rather than universal vouchers, arguing vouchers can leave other students behind as resources are diverted.

Transcript Highlights:

• all school access for all four-year-olds and access for all three-year-olds who are experiencing poverty
• It's been reported by the media that the federal administration is considering a budget proposal that
• would eliminate funding for federal Head Start.
• Yeah, I mean, obviously, either way, it is still state or federal money, right? Yeah.
• And with the increase of workload, not only meeting federal...

Summary: The joint hearing focused on California’s child care, preschool, and transitional kindergarten oversight, with chairs emphasizing the state’s Master Plan for Early Learning and Care and the need to break down silos between programs. CDSS and CDE reported progress toward the plan’s goals, including universal access to TK for all four-year-olds next school year, expanded access for low-income three-year-olds, and more children with disabilities being served in state preschool. They also noted ongoing work on quality rating/review reform, funding structure changes, and the need to address rates, workforce shortages, and federal uncertainty around Head Start. Testimony from advocacy groups and providers largely supported expanding access while simplifying the system. Children Now, Every Child California, and the California Budget and Policy Center argued that California still has uneven access, especially for infants, toddlers, and three-year-olds, and urged investments in mixed delivery, inclusion, full-day options, and a cost-of-care rate methodology. Every Child California recommended consolidating part-day and full-day contracts, streamlining eligibility priorities, making the two-year-old option permanent, and funding staffing incentives. Parent testimony highlighted how child care gaps and county-to-county transfer delays can disrupt work, safety, and children’s stability, and providers described low reimbursement rates, the need for health and retirement benefits, and support for delinking subsidy rates from private pay. The second panel addressed universal transitional kindergarten. The Learning Policy Institute reported rapid TK expansion, with most districts now offering TK, but said access still depends on facilities, staffing, and whether programs are available at all school sites. The Department of Finance said the governor’s budget would fully implement TK by adding funding for all eligible four-year-olds and lowering the adult-to-child ratio from 12:1 to 10:1. The Legislative Analyst’s Office said the administration’s enrollment and cost assumptions were optimistic and estimated lower TK enrollment growth and lower costs for the ratio change. CDE supported the expansion and urged continued funding for UPK coordinators, teacher development, and mixed-delivery planning grants. Members questioned facilities shortages, staffing competition, and how to ensure TK expansion does not displace CSPP or Head Start classrooms. No formal votes or actions were taken in the hearing.

Transcript Highlights:

• So we're setting a floor that is actually the job whenever we have, for example, federalism with the
• national government, the federal government, and state governments.
• ...more immigrants as defined by federal law.
• Are you aware that there is a federal definition of congregate housing?"
• </c> followup um that there is a federal followup um that there is a federal definition<04:22:46.279>

Committee: House Housing

Transcript Highlights:

• </c> president of Columbia Heights Federation president of Columbia Heights Federation of<00:24:59.200
• Federal meal reimbursements of, uh, school meals.
• kids not quite in poverty enough.
• We're at a time of extreme uncertainty from the federal government.
• </c> extreme uncertainty from the federal extreme uncertainty from the federal government.<00:57:07.440

Bills: HF1048 , HF1049 , HF745 , HF2210

Committee: House Education Finance