Transcript Highlights:

• So you're down to a billion, a billion and a half. Sounds like a lot.
• Mississippi just voted down the private school vouchers.
• President Biden closed down a crypto mine out in Colorado.
• We have not closed down one crypto mine down here.
• I did wind up voting for it. I owned up to it.

Summary: The committee first considered House Resolution 1016, presented by Rep. Marcus Richmond, which sought permission to file a bill aimed at consumer protection in certain housing arrangements where buyers purchase an interest in an entity rather than the property itself. Richmond said the measure was intended to improve transparency, prevent deceptive real estate practices, and ensure disputes would be handled in Arkansas or federal courts rather than private tribunals. Members raised concerns about overlap with existing law, possible effects on homeowners associations, arbitration clauses, hunting clubs, religious organizations, and the bill’s 25-acre exemption. After discussion, the committee voted down the resolution. House Resolution 1006, by Rep. Bart Schultz, proposed increasing the homestead tax credit by $75, from $600 to $675, using a fund created for property tax relief. Schultz argued the increase was supported by the annual report on the fund and was timely because of higher costs for gas and groceries. Members asked about using special language instead, whether the increase could be made retroactive later, and whether the governor had included it on the call. The committee approved the resolution. The committee then heard House Resolution 1007, presented by Sen. Brian King and Rep. James Eaton, which would have changed how turnback sales tax revenue is distributed to counties, with the first $150 million of sales tax revenue going into a fund for county infrastructure and each county receiving an equal share. Supporters said it would help counties with roads, jails, water, sewer, and other critical needs, while opponents questioned whether taking revenue off the top would harm other state services and whether the issue was urgent enough for a fiscal session. The resolution failed. House Resolution 1008, by Rep. Jim Wooten and Sen. King, sought changes to the LEARNS Act and school choice funding, including performance-based eligibility and reporting requirements. Wooten argued the program was financially unsustainable and that accountability was needed; members questioned whether the proposal would create a larger emergency and whether it should instead be handled through budget language. The resolution failed after a point of order interrupted the closing remarks. Finally, House Resolution 1009, presented by Rep. Ron McNair and Sen. King, aimed to restore local control over crypto mines and data centers, citing concerns about water use, electricity demand, Chinese ownership, and litigation tied to prior legislation. Members questioned whether the issue was truly emergent and whether the resolution was the right vehicle. The resolution failed. House Resolution 1015, by Rep. Howard Beatty, proposed amending the prior IDA bill to address concerns raised by constituents, including board accountability and removing eminent domain authority. Supporters said it would improve the bill before next session, but the resolution also failed. The committee then adjourned.

Transcript Highlights:

• So you're down to a billion, billion and a half. Sounds like a lot.
• Mississippi just voted down the private school vouchers.
• President Biden closed down a crypto mine out in Colorado.
• We have not closed down one crypto mine down here.
• I did wind up voting for it. I owned up to it.

Summary: The committee first considered House Resolution 1016, which would have allowed introduction of a bill by Representative Richmond addressing disclosure and restrictions for certain real-estate arrangements where buyers purchase interests in entities rather than direct ownership of property. Richmond said the measure was aimed at transparency, consumer protection, and preventing private tribunals or discriminatory practices, while several members questioned whether it would affect homeowners associations, hunting clubs, arbitration clauses, or duplicate existing law. After discussion, the committee voted down the resolution. House Resolution 1006, sponsored by Representative Schultz, proposed increasing the Homestead Tax Credit by $75, from $600 to $675, using a fund created by Amendment 79 and supported by sales tax revenue. Schultz argued the fund could support the increase now and that families needed relief amid high prices. The committee approved the resolution. The committee then heard House Resolution 1007, presented by Senator King and Representative Eaton, which sought to change how turnback funds are distributed to counties, with a focus on giving counties more predictable annual funding for roads, jails, water, sewer, public safety, and other infrastructure. Members raised concerns about taking $150 million off the top of sales tax revenue and about whether the bill should be handled through budget language instead; the resolution failed. House Resolution 1008, by Representative Wooten and Senator King, would have amended the LEARNS education program to reduce costs, limit or change eligibility, and add performance-based requirements and reporting for certain school-choice funding. Supporters said the program was financially unsustainable and needed accountability, while opponents argued the proposal would create larger problems and that the issue should be handled in the regular session. The resolution failed after a point of order prevented reading a supporting letter into the record. Finally, House Resolution 1009 and House Resolution 1013, both tied to Senator Bryant’s proposals on local control over crypto mines and data centers, were discussed together with testimony about water use, energy demand, and local opposition; both failed. House Resolution 1015, which would have amended the IDEA economic-development bill to remove eminent domain authority and address board accountability, also failed after members said more concerns remained to be worked out.

Transcript Highlights:

• One year from now, Republicans... road down uh kick the can down the road road down uh kick the can down
• kicked the can down the road this far? kicked the can down the road this far?
• We sit down and we will work on this.
• Let's just sit down.
• Let's just sit down.

Keywords: U.S. House of Representatives Floor Proceedings on Wednesday, June 10, 2026, 1012, house, all

Transcript Highlights:

• I want to say it was at 10 initially and then got pushed down to eight.
• And we do currently web crawl every month and pull documents down from state agencies.
• In previous sessions, we did bring this number down a little bit.
• This would bring it down to 10 copies with the change.
• And so the number of resolutions has gone way down.

Keywords: 908, all

Summary: The committee first discussed security and member contact procedures, with several members emphasizing the need for formal security training at the start of each session and clearer procedures for knowing where legislators are staying during session for welfare checks and emergency contact. Members also raised concerns about the disclosure of home addresses in other public records and forms, and Legislative Council was asked to prepare a background memo on possible training, best practices, and related legislative or rule changes. The committee then took up a bill draft to reduce the number of paper copies of state publications sent to the State Library from eight to two. Legislative Council explained the cost savings and the move toward digital distribution, but the State Librarian testified that the library still needs paper copies for circulation, archives, and depository libraries, and requested a minimum of three copies. After discussion, the committee amended the draft to require three copies instead of two and passed the motion. The committee also approved a related House and Senate Rules amendment reducing the number of bound journals distributed, and a separate rule change removing the requirement that legislators’ home addresses be printed in the rule book and allowing a lower print run based on request and need. The committee next reviewed data on bill pre-filing and legislative workload. After hearing testimony that agency bills tend to arrive in a late-year rush and that staff workload is especially heavy around organizational session and the holidays, the committee voted to move the agency pre-filing deadline to the Wednesday before Thanksgiving. It also amended the deadline for constitutional amendments and study resolutions, moving them earlier so they would occur before crossover, and adjusted the reporting deadline accordingly. Members discussed whether these changes should be handled in special session or organizational session, and staff explained that the agency deadline change could be made effective for the next regular session through a permanent rules change. Finally, the committee reviewed proposed special session rules. Staff explained that the special session would use joint appropriations and joint policy committees, with expedited bill processing, limited bill introduction routes, and remote participation allowed for members and public testimony with approval. The committee also resolved a House appropriations membership issue by keeping the House side at 23 members and giving the House majority leader authority to appoint a replacement for the vacant seat, while increasing the Senate dollar threshold to match the House. Members then discussed the upcoming rural health special session process, including how the interim rural health group would differ from the actual special session committees, the timing of committee work and the governor’s address, and whether remote participation would be permitted in the special session.

Transcript Highlights:

• And so the tax revenue is also down because the gross retail value of the industry is down.
• Quantity produced is up, prices are down, and unit prices are down more.
• So again, wholesale prices down, retail prices down, retail quantity production is up through the end
• We were the first to shut down. We're the last to reopen.
• Do we sit down? I'll hear your phone? Here. Do we sit down? Yeah, we'll sit down. See you.

Summary: The Assembly Budget Subcommittee 5 on State Administration held an informational hearing on budget issues for the Department of Veterans Affairs, the Department of Cannabis Control, the Department of Consumer Affairs, the Commission on the Status of Women and Girls, and the California Arts Council. The chair noted there would be no votes. CalVet gave an overview of its programs serving veterans and families, including transition assistance, county veterans service officers, education approvals, housing and homelessness programs, home loans, long-term care homes, and state veterans cemeteries. Members asked about future long-term care needs for aging veterans, staffing and recruitment challenges at veterans homes, and the Yountville steam infrastructure replacement project, for which CalVet sought a $38.8 million reappropriation and said federal reimbursement was expected. CalVet also discussed the role of county veterans service officers in helping veterans file claims and avoid predatory unaccredited representatives. The Department of Cannabis Control described its regulatory role from seed to sale and requested one position to implement SB 1064’s combined activities license. Members and public witnesses focused heavily on the illicit cannabis market, enforcement staffing, and the impact of taxes and fees on the legal market. DCC said it had roughly 87 enforcement positions with about a 15% vacancy rate and more than 200 compliance staff. Its economist presented the 2024 cannabis market report, which found licensed production and retail quantity were up, but retail value and prices were down, with an estimated 11.4 million pounds of illicit production and about 60% of California consumption still coming from the illicit market. Industry witnesses argued the legal market is in crisis, urged repeal of the scheduled excise tax increase, stronger enforcement against illicit cannabis and hemp-derived intoxicants, and expanded retail access. The Department of Consumer Affairs briefly presented nine budget proposals, including a $2.6 million ongoing request to maintain a business modernization system for several boards and bureaus. The Commission on the Status of Women and Girls described its work on economic and educational equity, health care, violence prevention, student rights, and archival and outreach projects, and said its budget request would convert limited-term positions to permanent. A member urged the commission to narrow its priorities toward current issues such as affordability, child care, and women’s health. The California Arts Council outlined its role as the state’s only statewide arts funder and requested restoration of $5 million in local assistance; supporters testified that the funding would leverage additional local investment and help sustain arts access, especially in rural communities. The hearing ended after the non-presentation items were noted and no further public comment was offered.

Transcript Highlights:

• require schools to bring the hammer down require schools to bring the hammer down in<00:47:42.560
• go down significantly until COVID hits. go down significantly until COVID hits.
• obviously it's not possible to shut down obviously it's not possible to shut down a<02:38:15.920
• gone down quite a bit. gone down quite a bit. >> Correct. >> Correct.
• So, it's a long-winded way it initially.

Keywords: 928, house, all

Summary: The House Education Policy and Administration Committee met to hear a non-germane amendment to House Bill 131, which concerns bullying and cyberbullying prevention. Representative Glenn Cordelli, the prime sponsor, said the amendment was intended to revise and improve language from last year’s SB 210 and to incorporate measures from a cyberbullying bill previously passed by the House. He described changes to school communication requirements, mandatory reporting of bullying and retaliation, stronger investigation and collaboration requirements for cross-district cases, added safety and remediation language, a required conference with the alleged perpetrator and parents if available, updated reporting deadlines, and disciplinary consequences for harassment, intimidation, retaliation, and false reports. He also noted a later amendment would be needed to insert the words “the perpetrator” in one section, and he explained that some changes were meant to align with prior legislation and legislative drafting suggestions. Committee members raised several concerns. Representative Murray questioned the treatment of private and parochial schools, the change from gross negligence to negligence, and the removal of a definition of bullying based on imbalance of power and perceived characteristics. Representative Damon also objected to deleting that definition, arguing it would narrow the scope of bullying too much. Representative Han spoke in opposition, saying the amendment was too broad, unnecessary in parts, and not ready for final action; he criticized the removal of the imbalance-of-power language, the conference requirement when parents may not participate, and the reporting obligations for bus drivers and others. Cordelli responded that some issues were already addressed in prior law or SB 210 and that private schools have their own policies. Michelle Wongran of New Hampshire Legal Assistance testified in opposition, saying the bill was being heard without enough notice and that it does far more than the committee analysis suggests. She said the amendment adds undefined retaliation language, imposes reporting duties on school vendors and contractors, may conflict with FERPA and other federal privacy rules, and includes provisions that could have serious implications for schools and students. She said she supports parental involvement and some conference provisions in concept, but urged the committee to reject the amendment or at least send it through the normal legislative process for fuller review. No vote was taken during the hearing portion described in the transcript.

Transcript Highlights:

• Then federal spending started coming down the last couple of years.
• Back down to Medicare. Now, the hospitals just got their first quarterly payment.
• So let's get down into the weeds on slide 16.
• Is it going to go down? What's the general thought on that?
• Our education request for the federal budget is 66.7 million, and that's down.

Transcript Highlights:

• Members of the committee, the question facing American policymakers comes down to the following in my
• I sat down this past week with the ambassador from Denmark and with the ambassador. representative from
• Sullivan who also is going to preside while I run down to the floor and vote. Thank you Mr.
• So, that's a wind-up to. question I want to ask the panelists. Mr.
• my state a national park, he issued 70 executive orders, 70, singularly focused on Alaska to shut down

Keywords: Greenland, acquisition, national security, Arctic, geopolitical, China, Russia, icebreakers, trade routes

Summary: The meeting convened by the Senate Committee on Commerce, Science, and Transportation focused on the potential acquisition of Greenland by the United States. This issue, first raised by President Trump in 2019, has gained renewed significance amidst shifting global dynamics and the strategic importance of Greenland in relation to transatlantic trade routes and national security. The members discussed the geopolitical implications of Greenland's position, especially given the increasing influence of China and Russia in the Arctic region. Notably, the urgency to address military presence and icebreaker capabilities in the Arctic was a major point of contention, with a call for a new fleet to counter foreign dominance in the area.

Transcript Highlights:

• And then hopefully draw down those federal dollars.
• It was drawn down and it shows that Kentucky has invested more and therefore can draw more down specifically
• dedicated to prevention, we drew down dedicated to prevention, we drew down another<00:15:39.200
• more down specifically. more down specifically. >> Okay. >> Okay. >> Okay.
• What Family First and those Title IV-E dollars that are being brought down.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:19 DCBS 00:01:58, 958, all

Transcript Highlights:

• And I talk about the time I down here.
• You're down here the people's trust to.
• back from the State House and took it down.
• back from the State House and took it down.
• back from the State House and took it down.

Keywords: 1189, house, all

Transcript Highlights:

• And so that started in '24 and '25 as we were winding down.
• And that ranges down to New Hampshire at the smallest at $50 million.
• 3.5% down to 3.5% of net revenue by a half a point each year starting in 2028.
• They will lose some of that revenue as those ramp down over the 10 years.
• What are mechanisms that we can do to continue to drive that down?

Summary: The Ways and Means Committee held a work session to review how H.R. 1 (the One Big Beautiful Bill Act) could affect Washington’s Medicaid, long-term care, developmental disabilities, and food assistance programs, with a focus on implementation challenges, fiscal impacts, and likely coverage losses. Staff and agency officials explained Washington’s Medicaid financing structure, eligibility categories, caseload trends, and the role of the Health Care Authority and DSHS in administering Apple Health and related services. They also described how Medicaid expansion increased access to behavioral health services and how H.R. 1’s provisions are expected to affect the expansion population most directly. Health Care Authority and DSHS officials outlined several major H.R. 1 changes: new work and community engagement requirements for the Medicaid expansion population, six-month redeterminations instead of annual renewals, changes to immigrant eligibility, limits on provider taxes and state-directed payments, new cost-sharing requirements, reduced retroactive coverage, and changes affecting long-term care eligibility. They said Washington is still awaiting federal guidance on many details, but estimated that about 620,000 Apple Health expansion enrollees could be subject to work requirements, that roughly 30,000 immigrants could lose Medicaid eligibility under the new definition of qualified alien, and that some long-term care and developmental disability clients could be indirectly affected. Officials also said the state is working with other agencies to build shared verification systems and may seek a delay waiver, though they do not expect broad federal flexibility. The committee also heard that H.R. 1 immediately blocks Medicaid reimbursement for Planned Parenthood services for one year, with the state planning to backfill about $11 million to preserve access. In addition, officials warned that the law could reduce federal Medicaid revenue by billions over time and strain hospitals and emergency rooms as more people become uninsured. They noted that Washington’s rural health transformation grant application is due November 5 and could bring some funding, but not to offset coverage losses. No votes were taken; the session was informational only. The committee then heard a separate presentation on food assistance, where staff and DSHS described H.R. 1’s SNAP changes, including expanded work requirements, immigrant eligibility restrictions, higher state administrative costs, and a possible future state share of benefit costs tied to payment error rates. DSHS estimated a four-year fiscal impact of about $750 million for food assistance changes and said the state is working on system and policy changes across agencies before the new requirements take effect.

Transcript Highlights:

• We were able to draw down... $96 million in the first tranche, and then we drew down another tranche
• They were all up and down the border and other parts of Texas.
• Like I said, we've unfortunately had to put down 166 million birds.
• It's a guy that's doing 600 acres now down at 50 another grower.
• Why did the sugarcane close down? That's to me directly or anybody?

Keywords: 1184, house, all

Transcript Highlights:

• often cite saving up for that down often cite saving up for that down payment.<03:23:37.200>
• Enrollment is down. Many already knew. Enrollment is down.
• We've been down this road before.
• We've been down this road before.
• <04:30:58.720> As We've been down this road before. As We've been down this road before.

Keywords: 910, house, all

Transcript Highlights:

• It's making it harder for them to keep their rents down or to do the maintenance that they need.
• Cutting down urban trees harms our communities, their public health, and climate resilience.
• Now the tree comes down, kills an individual. Who was held responsible at that point?
• So they have a vested interest in keeping the claims down, not up. That's point number one.
• Number two, there's— ...down, not up. That's point number one.

Keywords: 995, all

Summary: The Joint Committee on Financial Services heard testimony on a wide range of insurance-related bills, with much of the discussion focused on affordable housing insurance, homeowners insurance practices, climate resilience, and consumer protections after property losses. Senators and representatives testified in support of a resolve to create a commission on affordable housing insurance (S. 768/H. 1279), arguing that rising premiums and deductibles are threatening the viability of affordable housing properties and new development. Supporters also backed bills to establish private flood insurance standards (S. 719), create climate-resilient home retrofit grants (S. 720), expand the MVP climate resilience program (H. 1310/S. 686), and protect urban trees and limit insurer-driven tree removals (H. 1316). Several lawmakers and advocates said these measures would help reduce risk, preserve insurability, and address the effects of increasingly severe storms and flooding. The committee also heard testimony on bills addressing insurer use of aerial imagery (H. 1242/H. 2142) and notice periods for nonrenewals or repairs (H. 4042 and related measures). Supporters said insurers should be allowed to use drones and satellite images but with stronger guardrails, including current photos, disclosure of risk factors, an appeals process, and time to cure defects. They argued that homeowners are sometimes blindsided by nonrenewals based on inaccurate aerial photos or given too little time to make repairs. Opponents from the insurance industry said aerial imagery is already regulated by the Division of Insurance, that additional statutory requirements could create confusion and litigation, and that existing notice rules already provide 45 days for nonrenewals and 60-day limits on cancellations. Industry witnesses also warned that some proposed timelines conflict with current law and could restrict useful underwriting tools. Another major topic was H. 1077, which would restrict solicitation by restoration companies and public adjusters at fire scenes. A homeowner described being approached immediately after a house fire by restoration and public-adjuster representatives and said the experience was intrusive and overwhelming; supporters said homeowners need time and space to make informed decisions after a disaster. Public adjusters and restoration contractors opposed the bill, saying they provide needed guidance, emergency mitigation, and claims assistance when homeowners are under stress, and that some existing protections already allow consumers to cancel contracts. The hearing ended after all listed witnesses testified, and the committee voted to close the hearing; no bill dispositions were taken during the session.

Transcript Highlights:

• Bill Mote, a local boy who made a fortune, came back home down here, wanted to give back to the sea,
• It is now down to about 2 to 5%. The image on the right shows the extent of the coral reef tract.
• One is a land-based nursery down in the Keys. And this is very simplistic technology.
• I've had the pleasure of being down in Mote Marine, and your hospitality is incredible.
• Anybody buys it, put it down wherever they want to.

Summary: The Committee on Environment and Natural Resources heard a series of presentations focused on coral reef restoration, artificial reefs, biosolids management, and a proposed biosolids processing facility. Mote Marine Laboratory described the severe decline of Florida’s coral reefs, its restoration methods using microfragmentation, genetic banking, selective breeding, nurseries, and outplanting, and asked for a long-term state commitment to help restore reef areas. The Keys Marine Laboratory and Florida Institute of Oceanography highlighted their role as a hub for coral rescue, holding, propagation, and research, including emergency response during the 2023 bleaching event. The Fish and Wildlife Conservation Commission discussed the scale of reef loss, the state’s coral rescue and propagation efforts, and the economic and habitat value of artificial reefs, while noting permitting delays and material-selection concerns for reef projects. The committee then received a DEP update on the Osborne Reef tire cleanup. DEP explained that the original tire reef was a failure, that nearly 500,000 tires had been removed by 2024, and that the current effort is funded at $5 million for the fiscal year, with cleanup now shifting from large tire clusters to more difficult individual tires and coral relocation. Members asked about the future of the site after cleanup; DEP said that phase two decisions, such as whether to restore or monitor the area, have not yet been made. DEP also presented on biosolids rules, explaining that the 2021 rule tightened nutrient management, groundwater, and surface water protections, reduced the number of active land-application sites, and contributed to a shift away from Class B land application toward Class AA, landfill, or out-of-state disposal. Senators raised concerns about PFAS, nutrient loading, and the loss of disposal options, and a public speaker warned of a statewide septage disposal crisis. Finally, Sedron Technologies presented its VARCOR system and a planned Indiantown facility that would process dewatered biosolids into clean water, ammonia, and a dry Class AA product or fuel, with the company saying the process can destroy PFAS and help relieve regional disposal pressure. Senators expressed support for the technology as a potential solution to Florida’s biosolids challenges. No formal votes were taken on the presentations themselves, and the only action at the end of the meeting was adjournment after Senator Polsky moved to do so.

Transcript Highlights:

• Representative Blackman: You're down here along and up and you up is down and down is up, and all of
• Representative Blackman: You're down here along and up and you up is down and down is up, and all of
• talking about, or buying down the rate.
• Towards the end of the month, the percentage goes down.
• I'd like to sit down with a sponsor and still reserve my vote.

Bills: HB2118, HB2181, HB2308, HB2309, HB2402, HB2476, HB2682, HB2698, HB2875, HB2877, HB2903, HB2910

Keywords: mobile food vendors, licensure, food safety, statewide regulations, health standards, zoning, temporary vendors, HB2181, death certificate, death certificates, vital records, funeral establishment, funeral home, human remains, medical certification of death, death registration, state registrar, local registrar, county medical examiner, alternate medical examiner

Transcript Highlights:

• So. down getting older, just like an older personal vehicle.
• It might not solve the problem right this instant, but maybe one year down the road, two years down the
• It might not solve the problem for rate this instant, but maybe one year down the road, two years down
• Are they going to close down a particular manufacturing plant?
• Are they going to close down a particular manufacturing plan?

Keywords: 988, house, all

Transcript Highlights:

• Of the chair, we'll go ahead and start down the road.
• And if there are no questions, uh, we'll proceed down the public testimony.
• That comes down to kinship benefits that may come down to a PCA program which you'll hear about in a
• We'll proceed down the witness list and uh give you the right to close.
• We'll proceed down the public testimony. Um, Ms Claudia of Wales.

Bills: HCR 10

Keywords: balanced budget amendment, federal budget, deficit reduction, deficit spending, fiscal restraint, constitutional amendment, U.S. Constitution, Congress, PAYGO, Gramm-Rudman-Hollings, national debt, budget deficit, taxpayer dollars, balanced budget resolution, memorial resolution, Texas Legislature, federal spending, budget reform, fiscal conservatism

Transcript Highlights:

• do the same work three doors down.
• The reason we're seeing numbers go down and down is that people are finding meaning Employment because
• Well, it is coming down as we speak if this doesn't get changed.
• Because House File, did I write it down?
• Thank you, members, for this very good discussion as we sort of wind down such an important area of labor

Transcript Highlights:

• You can only reduce down by $5 million.
• You can only reduce down by $5 million.
• We shut them down We shut them down, and that's a great result.
• rate buy-downs to directly lower interest costs.
• It's very difficult for the people who are in the streets, and take down, once again, down to the city

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.