Transcript Highlights:

• One is for CSPP auditing support.
• support from the Office of State Audits and Evaluations to help address the existing backlog for CSPP
• audits.
• We also appreciate the addition of staff for auditing.
• We’re putting California’s most vulnerable residents at credit risk. Thank you.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• credit.
• credit.
• credit.
• . credit. credit.
• Um, electric vehicle credits prices.

Transcript Highlights:

• </c><00:07:01.440><c> for</c> credentials uh and get dual credit for credentials uh and get dual credit
• </c> good full advantage of the dual credit good full advantage of the dual credit opportunities<00:52
• Um, so each into the dual credit.
• ,</c> average earnings is 58 college credits, average earnings is 58 college credits, which<01:01:24.640
• A tax credit reduces federal fund it.

Summary: The meeting focused on Kentucky school choice and innovation, with discussion of the state constitution’s “common schools” requirement and how that has been interpreted alongside newer education models. Chairman Tipton described model laboratory schools, Gatton and Craft Academies, magnet and virtual programs, and said these options show that Kentucky has long expanded opportunity through innovation. He then turned the discussion to Senate Bill 207, which he said was designed to support schools of innovation. Senator Steve West reviewed the history of Kentucky charter schools and explained that SB 207 was modeled on a South Carolina approach. He said the bill allows a local school board to contract with a third-party entity to manage an existing school, seek waivers from certain state rules, and receive SEEK funding while also allowing outside private investment. He emphasized that the district initiates the process, that the school remains public, and that the bill includes accountability through a time-limited contract that can be ended if the school is not performing. Members asked about the difference between SB 207 and the earlier charter school law, whether schools could cherry-pick students, and whether teachers would remain district employees. West and Tipton said the new model is tied to an existing school rather than a new charter, cannot cherry-pick students, and keeps teachers as district employees. Representative Brown raised concerns that charters and exceptions could leave some children out, especially lower-income students, while West responded that the proposal is intended to expand choice for families who may not otherwise have it and cited examples from other states where similar models improved low-performing schools. No vote or formal action was taken during the discussion.

Transcript Highlights:

• required to show a deductible has been satisfied, such as a canceled check, money order, receipt, credit
• statement, or installment contract. ...satisfied, such as a canceled check, money order, receipt, credit
• to any information collected by third parties, there's already regulation under the federal Fair Credit
• Reporting Act, which governs the use and distribution of consumer data for either credit determinations
• is shared, it's not just with insurance companies, but also other entities that deal with consumer credit

Committee: House Insurance and Banking

Summary: The Insurance Committee held public hearings on House Bill 3328 and House Bill 2324. HB 3328, sponsored by Rep. Castile, is a broad homeowners insurance package that would redirect insurance dedicated fund money into a Missouri Stronger Homes Fund, create a Missouri Disaster Mediation Act for disaster-related claims, update public adjuster regulation, strengthen fraud provisions, add consumer notices, and establish roof-hardening grant programs. The sponsor and the Department of Commerce and Insurance said the bill is still being revised in a committee substitute, especially on public adjuster language and fortified roof standards. Committee members asked about the dedicated fund, mediation benchmarks, the role of public adjusters, and how the program would affect disaster recovery in places like St. Louis. Testimony on HB 3328 was mixed. The Department of Commerce and Insurance and several insurance industry groups supported the bill’s consumer protections, mitigation funding, mediation process, fraud language, and assignment-of-benefits ban, but said the public adjuster fee cap would likely be removed and that the bill needs technical changes for mutual insurers and roofing standards. Public adjusters testified in opposition to the cap as written, saying their fees are typically 10-15% and are disclosed in contracts, and that they were working with the sponsor on revisions. A shingle manufacturer also opposed the fortified roof language as drafted because some of its products may not fit the current standard. The committee then closed the hearing on HB 3328. The committee next heard HB 2324, sponsored by Rep. Lucas, which would restrict the sharing or sale of vehicle driving data and was described by the sponsor as a privacy bill aimed at stopping companies like OnStar from selling driving data to insurers. Opponents from the Missouri Insurance Coalition and NAMIC said the bill would not actually target OnStar, but would instead interfere with voluntary telematics-based discount programs used by insurers, potentially raising premiums and creating administrative burdens. They also noted existing federal and state rules already govern insurer data use and that the bill could create a mismatch between risk and pricing. The hearing on HB 2324 was then closed, and the committee adjourned.

Transcript Highlights:

• It is a tax credit for low- to moderate-income individuals and families, and the credit is based on income
• tax credit.
• It is a tax credit.
• It is a tax credit. enacted by the legislature in 2021 it is a tax credit for low to moderate income
• tax credit.

Summary: The House Finance Committee held a work session that began with welcoming new member Rep. Janice Zahn, who introduced herself as representing the 41st Legislative District. The Department of Revenue then gave an update on the Antio-related legislation following the Washington Supreme Court decision and the 2025 session changes. DOR explained its voluntary disclosure program and the new expanded voluntary disclosure agreement for taxpayers with unreported investment income, including broader eligibility and interest/penalty relief, but said utilization has been minimal so far because additional implementation questions remain unresolved. The committee next received the annual update on the Working Families Tax Credit. DOR reported record participation in 2025, with about $205 million refunded through October and a major increase in applications after TurboTax added the credit to its filing software. Officials said most dollars went to households with children, outreach efforts remained important, and community partners and state agencies helped increase uptake. Members focused heavily on fraud concerns, especially tax preparers allegedly filing claims without applicants’ knowledge or diverting refunds; DOR said it is using fraud detection tools, training preparers, and trying to make applicants whole, but current law does not provide direct penalties against preparers. The final portion covered implementation of engrossed substitute Senate Bill 5814, which expanded sales tax to certain services. DOR described the new tax framework, its guidance process, and the large volume of ruling requests and outreach since the law took effect October 1. Committee members asked about fiscal assumptions, the scope of taxable services, and whether the department had revised its implementation estimates; DOR said the fiscal note assumed broad application absent explicit exemptions and that no expenditure revision had been made. In stakeholder testimony, Expedia and T-Mobile argued the law creates complexity and competitive disadvantages for Washington businesses, while a construction training provider said the tax raises tuition for workers seeking required certifications. School and nonprofit representatives said the tax will increase costs for special education services, arts programming, and other public-facing activities, and urged exemptions or further legislative fixes. The chair closed by noting the committee would revisit 5814 in the next session and then adjourned the meeting.

Transcript Highlights:

• required to show a deductible has been satisfied, such as a canceled check, money order, receipt, credit
• statement, or installment contract. ...satisfied, such as a canceled check, money order, receipt, credit
• to any information collected by third parties, there's already regulation under the Federal Fair Credit
• Reporting Act, which governs the use and distribution of consumer data for either credit determinations
• Consumer credit reporting entities are regulated at the federal level as well. All right.

Committees: House Insurance , House Insurance and Banking

Transcript Highlights:

• The underlying credit would be what would be supporting the debt service.
• It's the underlying credit that also informs the credit rating that goes into effect.
• It's a AAA credit union, which is.
• It's the underlying credit of the participating entities.
• Their credit rating will come on as part of the PUA.

Bills: HB 1089 , HB 1163 , HB 1177 , HB 1238 , HB1318 , HB1400 , HB1407 , HB1532 , HJR7 , HJR7

Committee: House Natural Resources

Keywords: coastal protection, environmental management, Gulf Coast, storm risk management, funding, Texas General Land Office, healthcare, insurance reform, patient access, insurance regulation, affordable care, health insurance, consumer rights, coverage transparency, claims process, insurance regulations, aggregate production, environmental impact, financial responsibility, reclamation

Transcript Highlights:

• I represent the areas of Lakeville, part of Lakeville, Credit River, Elco, New Market, and the townships
• I also sit on taxes and the Legislative Audit Commission, and now the new fraud committee.
• I also sit on taxes and the Legislative Audit Commission, and now the new fraud committee.
• I also sit on taxes and the Legislative Audit Commission, and now the new fraud committee.
• </c><00:04:55.600><c> commission</c> and uh the legislative audit commission and uh the legislative audit

Transcript Highlights:

• All the expenditures remain subject to existing state oversight, grant requirements, and audit standards
• All the expenditures remain subject to existing state oversight, grant requirements, and audit standards
• All the expenditures remain subject to existing state oversight, grant requirements, and audit standards
• All the expenditures remain subject to existing state oversight, grant requirements, and audit standards
• Reimers: All the expenditures remain subject to existing state oversight, grant requirements, and audit

Committee: Senate Capital Investment

Transcript Highlights:

• The extension of the child care tax credit is reduced from an additional three years to an additional
• The provisions modifying allocations of the Strong Family Tax Credit Program were adjusted under the
• Walk me through the decision to reduce the child tax credit from three years to one year.
• And then we are lowering the school tax credit for kids basically just for a year.
• And then we are lowering the school tax credit for kids basically just for a year.

Transcript Highlights:

• </c> review by the Legislative audit review by the Legislative audit commission<00:16:21.920><c> uh</
• </c> legislative uh audit legislative uh audit uh<00:19:30.200><c> office</c><00:19:30.799><c> and</c
• </c> members on the legislative audit members on the legislative audit commission<00:31:18.679><c> um
• </c> similar uh with the legislative audit similar uh with the legislative audit office<01:07:50.039>
• </c> thank you um the legislative audit thank you um the legislative audit commission<01:11:36.320><c

Transcript Highlights:

• ought to audit these businesses over here in Berlin,' or, 'We audit these businesses down here in Manchester
• to audit these businesses over ought to audit these businesses over here<04:37:05.039><c> in</c><04:
• :37:06.561><c> these</c> here in Berlin or we audit these here in Berlin or we audit these businesses
• </c><04:46:19.760><c> but</c> and we can get to it if we audit but and we can get to it if we audit but
• </c><05:21:36.360><c> and</c> number of coy division runs Audits and number of coy division runs Audits

Summary: The committee held a public hearing on HB 135, introduced by Representative Michael Harrington. He said the bill would codify a portion of the New Hampshire Constitution to bar New Hampshire businesses from being required to collect sales or use taxes for other states unless Congress mandates it, arguing that the U.S. Supreme Court’s Wayfair decision created an onerous compliance burden for businesses. He described the patchwork of state and local sales tax rules, thresholds, and product exemptions as extremely complex and said the bill was intended to push the issue back toward Congress and the courts. Members questioned whether the bill’s reference to a “foreign government” would apply to other U.S. states, whether the proposal would conflict with the Supremacy Clause, and whether it would create standing for businesses to challenge Wayfair. Harrington responded that “foreign government” meant any government other than New Hampshire, that he believed the state could challenge the decision in court by passing a law contrary to Wayfair, and that businesses were already being harmed by compliance costs. Some members raised concerns about whether the bill was an unfunded mandate or simply a private compliance burden, and Harrington argued that the state itself would not be collecting the taxes, but businesses would still face recordkeeping and administrative costs. Sam Garland of the Department of Justice then testified. He said the department was not taking a formal position on the bill, but offered technical comments. Garland acknowledged that Wayfair created significant compliance burdens and noted that states have become somewhat more uniform, with all states now having a $100,000 economic nexus threshold, though not all use the 200-transaction threshold and local tax variation remains substantial. He said the department’s concerns were legal, describing the issue as uncharted constitutional territory involving both vertical and horizontal federalism. No vote or final action was taken during the hearing.

Transcript Highlights:

• IDLA students can earn dual credits, participate in credit recovery, course overload, and advanced opportunities
• Some of our dual credits are taken through IDLA.
• We've wanted our kids to take dual credits.
• One of the issues for me is required credit versus elective credit.
• One of the issues for me is required credit versus elective credit.

Summary: The Joint Finance-Appropriations Committee first approved a technical correction to the Health and Welfare Division of Licensing and Certification budget, restoring 2 FTP that had been cut in error while leaving funding intact. The committee then adopted language extending the deadline for Medicaid’s state plan amendments and waivers related to the move to comprehensive managed care, after discussion of delays tied to the MMIS procurement and litigation. Both items received do-pass recommendations. The committee next considered Public School Support, beginning with a FY 2026 supplemental for the Division of Student Support to add $7.8 million in federal spending authority so schools can access full federal grant allocations. That supplemental passed. For FY 2027, members debated several competing motions on the Student Support Division budget, including proposals to reduce classified staff funding, add health insurance funding, and cut virtual school-related funding. After multiple failed motions, the committee ultimately approved a motion reducing the general fund by $14,751,600, including a $3 million reduction to virtual school discretionary funding, and adopted related language. Additional language was also approved to require reporting on virtual enrollments, shift English learner funding from central services to direct LEA distribution, modify technology curriculum contract requirements, require special education expenditure reporting, and reduce transportation funding by $7.5 million by undoing a prior statutory change. The committee then turned to the Idaho Digital Learning Academy. After extensive debate over alleged double-funding, rural access, and the absence of a policy bill, members rejected a larger $15 million reduction and then approved a smaller $13,500 reduction tied to the pending policy bill’s fiscal note. They also adopted language restricting PCIF access, requiring compliance reporting on DEI-related courses, and requesting a detailed report on IDLA expenditures, enrollments, and usage, including synchronous versus asynchronous instruction and course-level data by LEA. The meeting ended with notice that the committee would next take up the Secretary of State budget and trailer bills, with an additional 7:30 a.m. meeting before the Monday session.

Transcript Highlights:

• But what we want is to have those standardized become credits so then we can take it to the insurers,
• And the last time this was even audited was in 2021 by OEIS, as OEIS was starting up.
• PUC safety employees did the first and only independent audit that's ever been done.
• So all of this is publicly available in our sponsor letter for AB 1774, which requires audits.
• Well, that's why we have AB 1774, which simply requires the wildfire mitigation spending to be audited

Transcript Highlights:

• We would encourage additional resources so that we can provide robust oversight and auditing ability.
• .. ...so that we can provide robust oversight and auditing ability to ensure that, as we scale to the
• And then, do audit penalties need to be created?
• And I want to give some credit to our consultants who helped structure this this way.
• And I want to give some credit to our consultants who helped structure this this way.

Summary: The Assembly Budget Subcommittee on Education Finance held a hearing on the Governor’s proposal to convert the California Community Schools Partnership Program from a one-time grant model into an ongoing $1 billion Proposition 98 program. Finance and CDE described the expansion as a way to sustain existing community schools and add thousands more, with county offices, regional/state technical assistance centers, annual self-certification, and a future accreditation process intended to support fidelity to the state framework. The LAO opposed shifting to an ongoing categorical program and recommended continuing one-time grants, while suggesting longer-term funding for technical assistance and, if ongoing funding is adopted, stronger planning, reporting, phased expansion, and clearer accreditation timelines. Committee members pressed the administration on how the new proposal could fund far more schools with less money than the original $4.1 billion program, how much of the funding would go to existing cohorts versus new schools, and whether the proposal sufficiently requires planning and implementation before funds are received. Testimony from practitioners and advocates largely supported ongoing funding but emphasized that money alone is not enough. Speakers from LPI, CTA, San Diego Unified, Fresno County, the Partnership for the Future of Learning, and Sacramento County urged stronger requirements for shared governance, explicit commitment to the community schools framework, annual reporting beginning in year one, and continued or expanded support for coordinators and technical assistance. Several witnesses said the proposal should better protect county office coordination roles, maintain preferences for partnerships in the technical assistance structure, and ensure the system can support more than 6,000 schools. Others highlighted the need for specialized supports for middle and high schools, better integration with other state programs such as ELOP, universal meals, TK, and the LCFF equity multiplier, and more detailed accountability and accreditation processes. No formal vote was taken during the portion of the hearing reflected in the transcript. The chair indicated that the committee wanted additional information on the funding breakdown, the use of reverted funds, and the proposed support structure before taking action, and administration witnesses said a more detailed proposal would be brought forward in the May Revise.

Transcript Highlights:

• However, a recent state audit revealed that the department has not consistently investigated or followed
• our hope that, you know, they're planning for changes along these lines anyway in response to the audit
• they reach those goals and I know that they're going to be responding to the department or to the audit
• It took a decade to rebuild my credit and my stability.
• It took a decade to rebuild my credit and my stability.

Summary: The Assembly Health Committee heard several bills focused on health care access, oversight, and affordability. The first major item was SB 306 by Senator Becker, a prior authorization reform bill. Becker and supporters, including the California Medical Association and California Hospital Association, argued that prior authorization delays care, adds administrative burden, and can lead to serious patient harm. The bill was substantially amended late in the process to have DMHC and CDI identify services and drugs to exempt from prior authorization based on utilization data, with safeguards for fraud, waste, abuse, and patient safety. Health plans and insurers opposed the measure as written, saying prior authorization remains an important utilization-management tool and raising concerns about the 90% threshold, drug inclusion, and how modifications are counted. The committee also heard SB 35 by Senator Umberg, which would let cities or counties inspect unlicensed sober living homes if DHCS does not act promptly on complaints. Supporters said the bill would address weak enforcement and protect residents, while one behavioral health directors group opposed it unless amended. Members generally supported the measure, citing problems with unlicensed facilities and the need for local enforcement backup. The committee then heard SB 62, which would codify California’s updated essential health benefits benchmark if approved by the federal government. Senator Wiener said the package would add hearing aids, durable medical equipment, and infertility treatment including IVF, acknowledging that premiums could rise but arguing the benefits were worth it. Health Access California and other advocates supported the bill, while the California Family Council opposed it. The committee also took up SB 596 by Senator Menjivar, which would tighten the rules for hospitals claiming an on-call list as a defense to nurse staffing ratio penalties. Supporters, including nurses and SEIU, said hospitals have used vague or ineffective on-call practices to avoid accountability and that the bill would improve enforcement and patient safety. Hospital groups opposed it, arguing that staffing is highly dynamic, that hospitals need flexibility to manage acuity and emergencies, and that the bill could increase costs and interfere with collective bargaining arrangements. Finally, the committee heard SB 40 by Senator Wiener, the Insulin Affordability Act, which would cap insulin copays at $35 for a 30-day supply and restrict step therapy unless a plan covers at least one insulin in each drug type. Supporters, including physicians, diabetes advocates, nurses, students, and patient groups, said insulin is life-saving and too often unaffordable, forcing patients to ration or choose between medication and basic needs. There was no formal opposition testimony, though one member questioned why insulin remains so expensive. The committee also began discussion of SB 363, but the transcript cuts off before that bill’s full presentation or any action on the measures. No votes are recorded in the portion provided, and several bills were noted as consent items earlier in the hearing.

Transcript Highlights:

• About a decade ago, we did the first-ever audit of properties.
• Act, which would create a credit enhancement program for the production of housing.
• Trying to unlock more private investment through the use of credit enhancement.
• Credit enhancements are a proven way of doing that.
• And we fought to make it for the 500 million for the housing tax credits, the 300, to make it for the

Committee: House Housing and Community Development

Summary: The committee heard several housing-related bills, with the longest discussion on SB 79, which would allow more housing near major transit stops and on transit agency land. The author and supporters argued it would address California’s housing shortage, support transit ridership, and reduce vehicle miles traveled, while opponents from cities, housing advocates, and legal aid groups raised concerns about affordability requirements, demolition and displacement protections, and local control. After extensive debate and amendments, the committee approved SB 79 on a roll call vote of 8-1, with one member not voting, and sent it to the Assembly Local Government Committee. The committee also heard SB 21, which would allow limited reductions in unit count when converting deed-restricted SRO buildings into larger, more livable affordable units with kitchens, bathrooms, and supportive services. Supporters said the bill would preserve aging nonprofit-owned SRO housing and prevent building failures like the Skid Row Housing Trust portfolio, while no opposition witnesses testified. The bill was moved on a unanimous 8-0 vote to Local Government. SB 92 was heard next and would close a density bonus loophole by limiting how much commercial floor area can be increased through the law. The author said the bill responds to a proposed Pacific Beach project that would have used a small number of affordable units to justify a very large hotel tower; the City of San Diego and labor groups supported the fix, and some housing groups withdrew opposition after amendments. The committee passed SB 92 on a 7-0 vote, with the roll left open. Later, the committee took up SB 522, which would extend just-cause eviction protections to rebuilt units that were previously covered by the Tenant Protection Act after a disaster. The author and Los Angeles City Attorney Heidi Feldstein Soto said the bill would preserve tenant protections in rebuilt communities like Pacific Palisades, while apartment, realtor, and property owner groups opposed it, arguing it would add burdens and discourage rebuilding. Members questioned whether the bill was necessary given existing Housing Crisis Act right-of-return protections, and the discussion was still ongoing when the transcript ended.

Transcript Highlights:

• Another one is the foster parent and guardian tax credit made it all the way, but then we didn't quite
• I had to get 12 credits to expand my childcare center.
• So as they are achieving and earning those credits, there are steps that are assisting in their wage
• Because if they believe that there's an issue, they will commission a special audit, and then Senator
• Trujillo: the information that they get from that special audit they pass on to the Attorney General

Transcript Highlights:

• </c> Audit Division within the office. Audit Division within the office.
• So with that, I uh oversight audits.
• </c> So first, before I get into the audit So first, before I get into the audit results,<00:04:02.160
• then we get audited by the DNR.
• And if I recall right, and Mr. audit, the internal audit, you just grab audit, the internal audit, you

Bills: HF3564

Committee: House Legacy Finance

Transcript Highlights:

• The City of Santa Fe has some reauths, and you know, there's a they were under the audit where they couldn't
• So now that that's public, when my wife sees that on my credit card, it was for Senator and Mr.

Committees: Senate Senate Finance , Senate House Appropriations & Finance