Transcript Highlights:

• If this bill closes that... ...and the mission that nonprofits are alleged to serve.
• And I think we all went to celebrate nonprofits about a month ago, or not that long ago.
• And not one of us, I think, would have brought up an ICE detention as our nonprofit of the year.
• One, I don't believe this is what we mean when we talk about nonprofits.
• This is not what we mean in terms of nonprofits.

Summary: The Assembly Committee on Revenue and Taxation heard several bills focused largely on veterans’ tax relief, disaster-related property tax rules, contractor tax compliance, and nonprofit property tax exemptions. The chair reviewed committee procedures, including the suspense file process for bills with significant revenue impacts, and noted that only one bill would be voted on immediately. Most measures were presented with supportive testimony and then referred to suspense. SB 888 would exclude VA service-connected disability compensation from household income when determining eligibility for the low-income disabled veterans’ property tax exemption. The author argued the bill would prevent disabled veterans from being unfairly penalized and help them remain in their homes; a VFW representative testified in support, and there was no opposition. SB 1053 would allow county boards of supervisors, for disasters declared on or after January 1, 2026, to extend the five-year period for transferring a damaged property’s base-year value by up to three years. Support came from the California Assessor Association, and the bill was also sent to suspense. SB 1407 would exempt the first $40,000 of military retirement pay and surviving spouse benefit payments from state income tax for qualifying filers, with the author and witnesses arguing it would improve veteran retention in California and support the state economy. Multiple organizations and veterans spoke in support, and the committee members expressed strong sympathy for the measure, but it too was referred to suspense. SB 420 would deny charitable property tax exemption to organizations tied to private immigration detention facilities; the author and supporters said the bill would close a loophole that had allowed a detention facility in Imperial County to avoid millions in property taxes. Members voiced strong support and concern about the reported conditions at the facility, and the bill was also sent to suspense. The only bill taken up for a vote was SB 1165, which would improve coordination between the CDTFA and the Contractors State License Board so unpaid tax liabilities by contractors could be used in licensing enforcement, while preserving due process and installment agreement flexibility. After supportive testimony from the author and the California Tax Reform Association, the committee approved a due pass motion to Appropriations on a 7-0 vote. The committee then adjourned.

Transcript Highlights:

• . nonprofits, they give it tenfold back to the community.
• And also Jennifer Fearing on behalf of Cal Nonprofits. And we'll start with Susie.
• And now, more than ever, we must prioritize resources to nonprofits.
• That target nonprofits on ideological grounds, including our very 501c3 tax-exempt status.
• AB 265's definition of a qualified nonprofit, including the state nonprofit designation, helps ensure

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• In 2023, we went directly to the nonprofits themselves.
• 44.040><c> kind</c><01:12:44.159><c> of</c> to the nonprofit can you just kind of to the nonprofit can
• <01:14:06.159><c> um</c><01:14:06.400><c> cuts</c><01:14:06.800><c> that</c> nonprofit um cuts that nonprofit
• So the fiscal agent is not a government entity; it's a nonprofit.
• </c><01:18:34.840><c> or</c> rental agreement with the nonprofit or rental agreement with the nonprofit

Committee: Senate Capital Investment

Transcript Highlights:

• House Bill 2610 concerns the property tax exemption for nonprofit homeownership development.
• House Bill 2610 concerns the property tax exemption for nonprofit homeownership development.
• As background, property owned by nonprofits is generally subject to property tax.
• So the dance group or whatever also has to be a nonprofit, that's what the bill would require?
• It excludes presentations given by nonprofits from the definition of live presentations.

Summary: House Finance held public hearings on several tax and property-related bills. HB 2584 would create a sales and use tax exemption for qualifying farm machinery and equipment purchased by eligible farmers, with supporters arguing it would ease financial pressure on farmers, encourage investment in more efficient and environmentally friendly equipment, and help rural economies. County officials opposed extending the exemption to local sales taxes, warning of cumulative revenue losses for local governments. HB 2376 would consolidate the state school property tax levy and expand property tax relief for seniors, people with disabilities, and veterans by raising income thresholds, increasing exemption amounts, and simplifying the income calculation; county assessors and local officials supported the bill as a way to help residents age in place, while opponents argued it would raise taxes for others and weaken the 1% cap. HB 2610 would broaden the nonprofit homeownership development property tax exemption to allow limited interim rental or community use without losing the exemption, and testimony from affordable housing groups supported the change as a practical way to keep projects moving and reduce costs. HB 2615 would codify the Department of Revenue’s voluntary disclosure program and create a temporary tax amnesty period for certain unpaid business taxes; supporters said it would bring businesses into compliance and generate revenue, while one sponsor noted technical issues still needed to be resolved. In executive session, the committee advanced four bills. HB 2194, allowing a county and city within it to concurrently impose a cultural access program sales tax, passed 10-5. Substitute HB 2257, a broad tax code cleanup and technical changes bill, passed unanimously 15-0 after members said it clarified ambiguities from prior legislation. HB 2528, which would remove voter-approval requirements for certain cities to impose a local real estate excise tax, passed 11-4 despite objections that it reduced voter control over tax increases. HB 2175, exempting certain nonprofit providers of free durable medical equipment from sales tax on repair parts, also passed unanimously 15-0. The chair announced that HB 2584, HB 2610, and HB 2615 would be scheduled for executive action the following day, with no amendments allowed.

Transcript Highlights:

• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• If these are deed-restricted units, I'm trying to understand what the risk is with a nonprofit buyer
• We are often not engaged in the contractual provisions with the nonprofits themselves, but we do sell
• So it's not as if the nonprofit is getting to mandate that.

Summary: The Senate Committee on Housing met without a quorum at first and operated as a subcommittee, then later established a quorum and took up several housing-related bills. Early presentations included AB 2390, a cleanup bill on housing streamlining and project modifications, which was described as clarifying that minor and subsequent modifications are reviewed under the standards in effect when the original application was filed; there was no opposition, and the bill was moved on a due pass motion but held on call for absent members. AB 1890, which would increase state matching support for Napa County farmworker housing centers from $250,000 to $500,000 annually and extend the program through 2036, drew strong support from Napa County officials, the Farm Bureau, hospitals, and vintners, and was also moved to Appropriations and held on call. AB 956, an ADU bill allowing more flexibility in how accessory dwelling units are built and clarifying application of ADU law in common interest developments, drew support from housing advocates and opposition from the League of California Cities over density, infrastructure, and local control concerns; the committee discussed amendments to avoid triggering density bonus law, then passed the bill as amended to Local Government, with some members expressing reservations or abstaining. The consent calendar, including AB 739, AB 2162, AB 2320, and AB 2692, was also acted on and held on call for absent members. Later, the committee heard AB 939, which would remove a 180-day resale restriction for certain income-restricted ownership units when a nonprofit affordable housing organization is ready to buy and sell them to qualified low-income buyers. Supporters, including Habitat for Humanity and California YIMBY, said the bill would reduce vacancy, carrying costs, and delays in getting affordable homes to buyers; the California Association of Realtors opposed unless amended, arguing the bill could limit buyer choice, codify first-right-of-refusal provisions, and reduce wealth-building opportunities. Members questioned those concerns, and the author said amendments were being worked on; the bill was moved to Appropriations and held on call. AB 1165, the California Housing Justice Act, would require state housing agencies to develop a fiscal analysis and long-term financial plan for ending homelessness and addressing housing affordability; it received broad support from supportive housing, civil rights, and homelessness organizations, with no opposition filed, and was moved to Appropriations and held on call. AB 1184, an HOA transparency bill requiring more notice and access around litigation and recordings, was moved to Judiciary after discussion about whether it duplicated existing HOA law and whether the proposed amendments were too broad. AB 2035, a narrowly tailored bill for Laguna Woods Village to lower the vote threshold needed to petition a court to amend outdated CC&Rs, was supported as a one-time fix and moved to Judiciary. Finally, AB 1573, pulled from consent, would add survivors of domestic violence, sexual assault, and human trafficking to housing element target populations; supporters said these groups are overrepresented among people experiencing housing instability and should be explicitly included in local housing planning.

Transcript Highlights:

• The bill before you today would simply ensure that the tax dollars received by nonprofit organizations
• </c> directly to earmark nonprofit directly to earmark nonprofit organizations<00:03:54.720><c> who</
• </c><00:04:42.000><c> status</c><00:04:42.720><c> for</c> who utilize their nonprofit status for who
• I guess we go back to the term nonprofit means different things, right?
• </c> direct Appropriations towards nonprofit direct Appropriations towards nonprofit entities<00:30:45.279

Bills: HF72 , HF66 , HF69 , HF73

Committee: House Elections Finance and Government Operations

Transcript Highlights:

• Leaving out nonprofits leaves out a huge element of this.
• Leaving out nonprofits leaves seriously.
• ><c> a</c> out a grants to nonprofits leaves out a out a grants to nonprofits leaves out a a<00:14:02.560
• </c> were a business. they are a nonprofit were a business. they are a nonprofit and<00:14:57.440><c>
• ,</c> we don't include grants to nonprofits, we don't include grants to nonprofits, we<00:15:26.800><

Transcript Highlights:

• This bill is about leveling the playing field among our nonprofit child care centers.
• Currently, nonprofit child care centers that own their building are exempt from property taxes, but those
• With me today I have the director of another one of our amazing nonprofit daycares in St.
• </c> reduces the overhead costs for nonprofit reduces the overhead costs for nonprofit child<00:02:53.319
• I just wondered why it is limited to nonprofits that rent.

Transcript Highlights:

• </c> funded grants per year to nonprofit funded grants per year to nonprofit organizations<00:06:55.680
• </c> figure out which ones were uh nonprofit figure out which ones were uh nonprofit organizations<00
• </c><00:40:24.240><c> over</c> 2.6 billion dollar to nonprofits over 2.6 billion dollar to nonprofits
• unique nonprofits and to 2500 nonprofits unique nonprofits and we<00:40:33.440><c> don't</c><00:40:33.640
• </c><01:07:38.160><c> or</c> government providers or nonprofits or government providers or nonprofits

Transcript Highlights:

• </c><01:28:26.560><c> organize</c> certainly help those nonprofits organize certainly help those nonprofits
• </c><01:40:47.480><c> organizations,</c> volunteer with nonprofit organizations, volunteer with nonprofit
• </c><01:43:49.679><c> looking</c> great there a lot of nonprofits looking great there a lot of nonprofits
• They lower the risk, especially for nonprofit boards.
• </c> services to nonprofits around the state. services to nonprofits around the state.

Committee: Senate Executive Departments and Administration

Transcript Highlights:

• a bit of gratitude, recognizing the time and collaboration and the experiences that many of our nonprofits
• Today, we will hear from participants in successful models of collaboration in our state, from nonprofits
• This is a collaboration of nonprofit organizations, philanthropy, government, the private sector, and
• States, nonprofits, and industry overall. Are we okay to go in order? Are we okay?
• organizations, Together, more than 200 partners from industry, education, government, and nonprofit

Transcript Highlights:

• of that nonprofit.
• But you went out and started your own nonprofit.
• to use existing nonprofits.
• nonprofits.
• Institute, a 100-year-old nonprofit.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• I mean, there's lots of small nonprofits and large nonprofits, 501(c)(3)s, C-4s, variations of that,
• Speaker and gentlelady, what my amendment does is it says that any nonprofit, an employee of a nonprofit
• It only includes an employee of that nonprofit or a board member of that nonprofit. Okay, so Mr.
• Gentlelady, I actually, in listening to the debate about the nonprofits, I actually do believe nonprofits
• There are some very large nonprofits and there are some very small nonprofits.

Bills: HB145 , HB164 , HR1 , HB20 , HB65 , HB66 , HB80 , HB306 , SB29 , SB37 , HB99 , HB206 , HB213 , HB270 , SB104 , SB193 , HB38 , HB254 , HB256 , SB58 , SB64 , HJM1 , HM7 , HM17 , HM4 , HM22 , HM23 , HM24 , HM26 , HM2 , HM16 , HM32 , HM13 , HM47 , HM20 , HM51 , HM1 , HM31 , HM35 , HM36 , HM46 , HM53 , HM54 , HM39 , HM29 , HM43 , HM59 , HM11 , HM14 , HM21 , HM34 , HM50 , HB253

Summary: The House opened with quorum, invocation, pledge, and several announcements recognizing guests and Early Childhood Day at the Roundhouse, including remarks supporting New Mexico’s universal child care efforts. The chamber then received and adopted a long series of committee reports, moving multiple bills forward, including HB 303, SB 96, HB 195, HB 279, HB 292 (with a Judiciary substitute), SB 30, HB 234, SB 35, SB 40, SB 43, HB 153 (with an Appropriations substitute), HB 253, HB 255, HB 287, HB 371 (with an Appropriations substitute), SB 143, HB 248 (with a Taxation and Revenue substitute), HB 309, SB 48, and enrollment/signing reports for memorials. The House also received Senate Judiciary Committee substitute for SB 41, which would eliminate the statute of limitations for certain sexual crimes and was referred to Judiciary. The main floor debate centered on House Judiciary Committee substitute for HB 99, a medical malpractice reform bill. Supporters said it would balance patient compensation with provider stability by capping punitive damages, raising the burden of proof for punitive damages, and limiting when such claims can be pleaded. Several members described the bill as the product of months of bipartisan work and argued it would help retain doctors, especially in rural areas. The House passed HB 99 on final passage by a vote of 16-3. The House also passed HB 66, expanding the health care provider loan repayment program, by 69-0; HB 306, addressing unexpected patient-facing facility fees, by 69-0; HB 38, adding wheelchairs to insurance coverage for certain prostheses-related benefits, by 69-0; HB 20, allowing Native American applicants to request a distinguishing designation on driver’s licenses and ID cards, by 66-3; and HB 253, preserving and regulating virtual education with an emergency clause, by 69-0. The chamber then took up HB 213, which expands optometrists’ scope of practice to include certain laser eye procedures. A proposed amendment requiring patients to sign a disclosure acknowledging that optometrists are not MDs or DOs and did not attend medical school was debated at length, with supporters framing it as informed consent and opponents calling it demeaning and unnecessary. The House tabled that amendment 35-19, and the underlying bill continued in debate at the end of the transcript.

Transcript Highlights:

• it helps the chairs and the committee in workforce at the end of session when we have a lot of nonprofits
• </c> Because in the land of 10,000 nonprofit Because in the land of 10,000 nonprofit fraud<00:09:35.200
• </c> one of those nonprofits. one of those nonprofits.
• made in the child claims the nonprofit made in the child nutrition<00:26:07.679><c> program.
• </c> Even more outrageously, that nonprofit Even more outrageously, that nonprofit had<00:26:52.799><

Summary: The House debated a motion to suspend the rules so House File 3843 could be recalled from committee and given second and third readings for final passage. The bill, carried by Representative Baker and supported by Representative Niska, would create a subcommittee of the governor’s workforce development board to vet nonprofit and other applicants for workforce development dollars, with the legislature retaining final authority. Supporters argued the proposal would add an extra layer of scrutiny, reduce fraud risk, and help prevent problems like those highlighted in recent reporting and past nonprofit funding scandals. Supporters repeatedly tied the bill to concerns about fraud in state grantmaking, citing the Feeding Our Future scandal and other nonprofit cases as examples of why more oversight is needed. Representative Baker said the committee process can be overwhelmed by many direct-appropriation requests at the end of session, and that a board-based vetting process would help identify red flags. Representative Enen and Representative Schultz also backed the motion, saying the bill would improve accountability and protect taxpayer dollars. Representative Pinto opposed the urgency motion, saying he supports moving toward more competitive grants but not adding another layer of bureaucracy without a fiscal note or fuller committee process. He argued the bill would not do what supporters claimed and that the legislature already makes funding decisions. After debate, the House took a roll call vote on the motion to suspend the rules. The motion failed by one vote, 67 yeas to 66 nays.

Transcript Highlights:

• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes
• I'm co-chair of the nonprofit caucus too, some of the nonprofits wouldn't be paid into additional taxes

Summary: The Senate Standing Committee on Economic Development, Tourism, and Labor met and first took up Senate Bill 76, sponsored by Senator Greg Elkins. The bill would raise the construction retainage/escrow statute threshold from $500,000 to $2 million to reflect inflation, and would also make any contract term waiving the escrow protection void and unenforceable. Elkins said the measure would not apply to government contracts and was intended to protect contractors, subcontractors, and suppliers from delayed payment. The committee voted 9-0 to pass the bill with a favorable expression and send it to the floor. The committee then considered Senate Bill 59, sponsored by Senator Jimmy Higdon, with a committee substitute adopted first. Higdon said the substitute limited the bill to existing church property and the measure would allow religious institutions to build affordable housing on their property while still requiring local governing-body approval and compliance with building codes. Supporters framed it as a housing-supply tool and a way to use nonprofits and churches to help address Kentucky’s housing shortage, while questions focused on tax impacts, local control, and whether the bill could be used for single-family homes or other developments. A public witness from Henry County opposed the bill, arguing it could enable discriminatory housing and reduce local tax revenue. After discussion, the committee voted 9-0 to pass SB 59 with a favorable expression. Finally, the committee heard Senate Bill 313 from Senator Phillip Wheeler, which would designate June as Kentucky History Month. Wheeler and Kentucky Historical Society Executive Director Scott Alvi said the bill would help promote Kentucky history statewide, especially in connection with the U.S. 250th commemoration in 2026, and would build on existing June observances such as Statehood Day and Boone Day. The committee approved the bill with favorable expression, and the chair announced it would proceed to the floor.

Transcript Highlights:

• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• If these are deed-restricted units, I'm trying to understand what the risk is with a nonprofit buyer
• We are often not engaged in the contractual provisions with the nonprofits themselves, but we do sell
• If you're buying it generally with a nonprofit, you're getting 20% back to be able to move you out of
• So it's not as if the nonprofit is getting to mandate that.

Committee: Senate Housing

Transcript Highlights:

• of that nonprofit.
• It didn't direct you to start your own nonprofit.
• But you went out and started your own nonprofit.
• to use existing nonprofits. ...that you were supposed to use existing nonprofits.
• Institute, a 100-year-old nonprofit.

Transcript Highlights:

• Our mission is to inform, promote, connect, and strengthen individual nonprofits and the nonprofit sector
• Without those including nonprofits.
• 48.720><c> cannot</c> misconception that nonprofits cannot misconception that nonprofits cannot lobby
• </c> of Nonprofits. of Nonprofits.
• </c><01:21:09.600><c> this</c> Council of Nonprofits supports this Council of Nonprofits supports this

Committee: Senate Elections

Transcript Highlights:

• We are a 501(c)(3) bipartisan nonprofit that advocates and educates for the rights and representation
• This legislation improves how the state contracts with nonprofits to address challenges for nonprofit
• That means... ...penalty to nonprofits with contracts exceeding over half a million dollars.
• It's about basic fairness and operational... ...by over 550 nonprofit leaders.
• AB 880 puts nonprofits on equal footing with other state contractors.

Summary: The Governmental Organization Committee heard a series of bills on holidays, procurement, public safety, and business regulation. AB 268 would add Diwali as an official state holiday and allow schools and state workers limited flexibility to observe it; supporters described it as a recognition of California’s large South Asian and Hindu communities, and there was no opposition. AB 770 would define “customary maintenance” for outdoor advertising displays to clarify what repairs and reinforcements are allowed; the bill was presented as a safety and consistency measure for the billboard industry. AB 783 would authorize the Department of General Services to negotiate bulk pricing for construction materials to help disaster-affected communities rebuild more affordably, with supporters from the housing and building sectors and some members raising concerns about state contracting, storage, and implementation. AB 381 would update state procurement rules to better prevent human trafficking and forced labor in supply chains, aligning state policy with federal standards and drawing support from anti-trafficking advocates, labor, and local government representatives. AB 668 would extend drink-spiking prevention measures to music festivals by requiring test strips, drink lids, and reporting procedures; supporters emphasized victim safety and underreporting, while venue operators opposed the bill unless amended, citing feasibility and cost concerns. AB 880 would require prompt payment and indirect cost coverage for nonprofits contracting with the state, with broad nonprofit support and no opposition. AB 989 would make California Native American Day a paid holiday, with tribal and allied support. AB 592 would extend and expand temporary outdoor dining and alcohol service flexibilities for restaurants, with strong support from restaurant and business groups and opposition from alcohol policy advocates who preferred a narrower or permanent grandfathering approach. Most bills advanced on committee votes, generally on party-line or broad bipartisan support. AB 770 was moved to Appropriations, AB 783 was passed as amended to the Assembly Committee on Emergency Management, AB 381 was sent to Labor, AB 668 and AB 880 were sent to Appropriations, AB 989 was sent to Public Employees and Retirement, and AB 592 was sent to Health. The committee also took up a consent calendar containing several additional bills, which was approved. The hearing ended with the roll left open for additional votes and adjournment at 3:17 p.m.

Transcript Highlights:

• a bit of gratitude, recognizing the time and collaboration and the experiences that many of our nonprofits
• Today, we will hear from participants in successful models of collaboration in our state, from nonprofits
• This is a collaboration of nonprofit organizations, philanthropy, government, the private sector, and
• Community colleges are working well with other institutions, employers, and governmental nonprofits..
• States, nonprofits, and industry overall. Are we okay to go in order? Are we okay?

Summary: The select committee on Community Economic Mobility and Investment heard testimony on how California can support inclusive economic development through coordinated workforce, education, nonprofit, and industry partnerships. Chair Arambula opened by emphasizing that rural, low-income, and historically underinvested communities often face the greatest barriers to accessing state resources, and that the hearing would focus on successful collaboration models, the role of training and higher education, and future opportunities tied to economic mobility and social determinants of health. Witnesses from the California Workforce Association, Fresno State, and NextGen Policy described local and regional workforce systems in the Central Valley and beyond. They highlighted examples such as apprenticeship and pre-apprenticeship programs, employer-led partnerships, on-the-job training, support for women entering construction, programs for justice-involved and opportunity youth, and the need to braid federal, state, philanthropic, and private funding. Several speakers stressed that local workforce boards, community colleges, adult education, labor organizations, and community-based groups are best positioned to identify regional labor needs and that California should fund systems, not just individual grants, especially as federal workforce funding has declined and new work requirements tied to HR 1 and AI-related labor shifts create added pressure. A second panel focused on the Community Economic Mobility Initiative as a statewide model. Sierra Health Foundation and its partners said CME has helped community organizations build capacity, pursue more than $400 million in grants and contracts, and attract about $178 million back into California communities. Speakers from Siskiyou Economic Development Council, Fresno EDC, Edge Collaborative, and Líderes Campesinas gave examples of place-based projects in rural and urban regions, including business innovation centers, community-owned development, bioeconomy and restoration projects, subsidized employment, and farmworker-led cooperatives. They argued that long-term, locally driven investment produces stronger regional economies and better health outcomes, and urged the Legislature to provide durable funding and policy support rather than short-term extensions. No formal votes or committee actions were taken in the portion provided.