Transcript Highlights:

• building a general minimum general revenue reserve of about $2.2 billion, the projected general revenue surplus

Summary: The committee met to hear Amy Baker’s presentation on Florida’s constitutionally required long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast reflects slower but still positive economic growth, continued above-average personal income growth, rising wages, and population growth that is increasingly driven by in-migration as Florida’s senior population expands. She highlighted weakening housing-related revenue, especially documentary stamp taxes, softer consumer sentiment, and the expectation that Florida will pass 25 million residents by 2030, with nearly a quarter of the population age 65 or older. Baker said the outlook largely retained the March 2025 general revenue forecast, but the Legislature’s 2025 session actions significantly improved near-term funds available by redirecting or freeing up money, including contingency appropriations and reversions. She noted total state reserves are just under $15 billion, or about 30% of general revenue, and that the budget stabilization fund is at its constitutional maximum. The main spending pressures in the outlook were critical needs, led by a new emergency preparedness and response fund transfer and Medicaid growth driven mainly by medical inflation and behavioral analysis costs in managed care, not by caseload growth. Other high-priority needs were also identified, and Baker said the first year shows a projected surplus, but years two and three show shortfalls, meaning fiscal strategies will still be needed. Members questioned Baker about the accuracy of the forecast, Medicaid managed care costs, the emergency preparedness fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook is a good representation of the total picture, though the Legislature will likely adjust it as conditions change, and that more information on federal changes would come in later estimating conferences. Senator Trumbull asked about the governor’s veto of $750 million, and Baker said it simply returned to unallocated general revenue rather than being spent or added to the budget stabilization fund. The chair closed by warning members to expect a difficult budgeting process and noting that the committee would adjourn without further action.

Transcript Highlights:

• building a general minimum general revenue reserve of about $2.2 billion, the projected general revenue surplus

Committee: Senate Appropriations

Summary: The committee met to receive Amy Baker’s presentation on Florida’s long-range financial outlook for fiscal years 2026-27 through 2028-29. Baker said the forecast assumes continued but moderating economic growth, with Florida GDP slowing from recent highs, personal income remaining above average, wages continuing to rise faster than job growth, and population growth eventually slowing as the state approaches 2030 and the baby-boomer cohort fully ages into retirement. She also highlighted weakening housing and real-estate-related revenue, especially documentary stamp collections, along with low consumer sentiment as signs of caution in the outlook. Baker explained that the state’s near-term general revenue picture improved largely because of legislative actions taken in the prior session, including contingency releases, reversions, and other budget adjustments, rather than from major new revenue growth. She said reserves remain strong at nearly $15 billion, or just under 30% of general revenue, with the budget stabilization fund at its constitutional maximum. The main spending pressures identified were critical needs and other high-priority needs, led by a new recurring transfer to the emergency preparedness and response fund and by Medicaid, where rising service costs and medical inflation—especially behavioral analysis costs in managed care—are driving higher expenditures despite lower caseloads and a slightly better federal match. Members questioned the accuracy of the forecast, the Medicaid cost drivers, the treatment of the governor’s emergency fund, federal funding assumptions, and whether recent federal legislation was reflected in the numbers. Baker said the outlook assumes current federal funding paths continue, that the new federal tax/revenue law had not yet been fully incorporated because agencies were still reviewing it, and that the emergency fund line was calculated from recent appropriations without distinguishing specific uses. She also said the vetoed $750 million did not affect the budget stabilization fund because it reverted to unallocated general revenue. No bills were heard, no votes were taken, and the committee adjourned after the presentation and discussion.

Transcript Highlights:

• establishes clear definitions and conditions for permitted groups and sets explicit standards for surplus

Committee: Senate Business & Commerce

Keywords: 1185, senate, all

Transcript Highlights:

• HB 1267 requires school districts to allow Schools of Hope to use vacant or surplus school district facilities

Summary: The Pre-K through 12 Budget Subcommittee heard and advanced three bills. CS/HB 1267, by Rep. Boussada, would require school districts to allow Schools of Hope to use vacant or surplus facilities or co-locate in schools with capacity, with non-instructional services handled through a pro rata agreement and a performance-based agreement requiring Schools of Hope to meet expectations within five years. Supporters argued it would better use underfilled public schools and help students in the bottom 10% of schools statewide; opponents raised concerns about local control, funding, and the effect on public schools. The bill passed 13-2. The committee also heard CS/HB 1115, by Rep. Valdes, which would require sharing certain discretionary sales surtax revenues with eligible charter schools based on enrollment, create a standardized charter school monitoring tool, and align Schools of Hope sponsoring-entity rules with charter school processes. Supporters said it would improve consistency and accountability; critics questioned fiscal impacts and district flexibility. That bill passed 13-2. The final bill, CS/HB 1213, by Rep. Alvarez, would create a K-12 School Route Optimization Pilot Program using five counties to test AI-assisted analysis of school bus routes and walking conditions, with the goal of improving child safety for students who currently walk long distances. Members discussed hazardous conditions, possible use of safe-school transportation funds, and the bill’s lack of fiscal impact. Public testimony included support from education and parent groups. The bill passed unanimously, 15-0. The meeting then adjourned.

Transcript Highlights:

• that we are talking about cutting things like education and human services because of going from a surplus

Keywords: 1187, senate, all

Transcript Highlights:

• HB 3792 by Talarico relates to the identification, use, and taxation of surplus state property suitable

Keywords: 1184, house, all

Transcript Highlights:

• elders and tribal leaders step over sandbags and electrical cords and duck under water pipes and hardware

Keywords: 988, house, all

Transcript Highlights:

• elders and tribal leaders step over sandbags and electrical cords and duck under water pipes and hardware

Summary: The joint hearing focused on the University of California’s compliance with the Native American Graves Protection and Repatriation Act (NAGPRA) and CalNAGPRA, based on the California State Auditor’s April 2025 report and updates from UC and tribal representatives. Committee members and tribal witnesses emphasized the moral urgency of returning ancestral remains and cultural items, criticized the lack of clear timelines and accountability, and noted that other institutions have repatriated collections more quickly. The State Auditor said UC still has major gaps in identifying collections, completing campus searches, setting measurable deadlines, securing items, and fully using repatriation funding; the auditor projected that some campuses could take until 2037, 2041, 2053, or even 2089 to finish at current rates, and said 12 of 19 audit recommendations remained open. The Native American Heritage Commission said progress has been too slow and that new CalNAGPRA enforcement regulations are being finalized. UC Office of the President and campus leaders responded that the university has made substantial changes since 2019, including a revised NAGPRA policy, expanded staffing, new committees with tribal representation, more consultation, and more financial support for tribes. UC said it has repatriated more than 9,000 ancestors, 280,000 associated funerary objects, and 59,000 other cultural items systemwide, and that it is continuing to implement audit recommendations and improve transparency through a repatriation dashboard and funding information. Berkeley, San Diego, Riverside, and Santa Barbara each described campus-specific progress, including more staff, more consultations, more site reviews, and updated timelines; Berkeley said it is on track to publish remaining ancestors by the federal deadline, San Diego said it has repatriated 73% of remains and about 53% of cultural items, Riverside said nearly all known ancestors and associated funerary objects have been noticed or repatriated, and Santa Barbara said it has restructured its program and added staffing and tracking systems. Members pressed UC on why timelines remain so long, why some campuses still lack clear completion dates, and whether the Legislature should use budget tools to increase accountability. The auditor suggested the Legislature could consider stronger funding conditions and clearer expectations, while some members noted constitutional limits on earmarking UC’s base budget. UC said repatriation must be tribally led, that consultation and reburial can take time, and that some delays stem from incomplete records, overlapping tribal claims, and the need to reunite items with ancestors. No formal vote or action was taken at the hearing.

Transcript Highlights:

• It includes hardware and two-year maintenance and licensing.

Keywords: 999, senate, all

Transcript Highlights:

• It includes hardware and two-year maintenance and licensing.

Keywords: 998, house, all

Transcript Highlights:

• The equipment and hardware housed in a data center generates heat, and if that heat is not dissipated

Summary: The committee hearing covered a long agenda of local government and housing-related bills, with the chair repeatedly noting the committee was operating without a quorum for much of the meeting. Several measures were heard with no opposition, including AB 2639 on Merced County flood control coordination, AB 1788 on allowing best-value contracting for general law cities and the San Gabriel Valley Council of Governments, AB 2058 on reducing duplicative permitting and inspection costs for factory-built housing, AB 2576 on clarifying historic resource protections in a housing law, AB 2568 on increasing the compensation cap for water district board members, AB 2224 on updating county recorder fees and requiring electronic recording, AB 2469 on water-supply review and cost responsibility for data centers, and AB 2397 on requiring local governments to justify denials of certain housing-finance decisions. Most of these bills were presented as targeted fixes to improve efficiency, reduce delays, or modernize outdated statutes, and the authors generally requested aye votes and noted committee amendments where applicable. The most extended debate centered on AB 1751, which would streamline approval of qualifying townhome projects while setting a $28 hourly minimum wage floor for construction workers on covered private projects. Supporters argued the bill would expand homeownership opportunities, raise wages for largely non-union residential workers, and preserve existing prevailing wage law while adding enforcement tools and developer liability. Opponents, including several building trades and labor organizations, argued it would undercut prevailing wage standards, create a race to the bottom, and potentially affect wage-setting more broadly. Committee members asked detailed questions about land-use barriers, the relationship to prevailing wage, and whether the bill would affect unionized work; the author and supporters responded that it applies narrowly to private for-sale townhome projects and does not alter prevailing wage requirements. AB 2469 also drew a substantive split. Supporters said data centers should be required to provide water-supply assessments before approval, pay for infrastructure they trigger, and account for impacts on overdrafted groundwater basins and local ratepayers. Opponents from the Chamber of Commerce, Data Center Coalition, counties, and tech groups argued existing law already covers water planning, that the bill imposes unique and burdensome requirements on one industry, and that some reporting provisions could raise security concerns. The author responded that the bill is about front-end planning and local accountability, not daily reporting, and emphasized the hyperlocal strain data centers can place on small water systems. No final votes were taken during the hearing because the committee lacked a quorum, though members repeatedly indicated support or intent to vote aye once a quorum was present.

Transcript Highlights:

• The equipment and hardware housed in a data center generates heat, and if that heat is not dissipated

Committee: House Local Government

Keywords: 988, house, all

Transcript Highlights:

• They don't make software, they don't make hardware, they don't sell anything besides services.

Committee: House Subcommittee on Appropriations - General Administration

Summary: The subcommittee held an informational hearing on the Information Technology Services Division (ITSD) within the Office of Administration, with no quorum present and no formal action taken. Chair Voss said the purpose was to review ITSD’s programs, budget needs, and future plans, and members emphasized the value of an informed appropriator. Representative Riggs cautioned that the state should avoid jeopardizing federal broadband funding and asked that AI-related work remain consistent with federal expectations. ITSD leadership, including CIO John Loren and Deputy CIO Tara Damp, outlined the division’s scope and recent modernization efforts. They said ITSD supports 15 executive agencies plus the governor and lieutenant governor, manages about 1,200 production software solutions, handles roughly 35,000 help desk requests per month, and defends against billions of cyberattacks monthly. They highlighted investments in layered security, data center and network redundancy, a unified Microsoft 365 environment, modern development tools, and portal platforms. Damp reviewed the history of IT consolidation, noting budget reductions after 2007, then increased investment beginning in 2020 and especially with ARPA funds in fiscal 2023. Members asked about spending projections, subscription-based licensing, procurement modernization, and the role of non-consolidated agencies such as MoDOT and Conservation. The committee also discussed future funding needs and benchmarking. ITSD said its current spending is about $287 million, with a projected ongoing need of about $345 million to maintain and modernize services, while Gartner comparisons suggested Missouri spends less per employee and as a share of operating budget than peer states. Members asked for more detailed fiscal-year spending profiles for major initiatives and for clarification on what is and is not included in the projections, including Social Services and HR1-related work. ITSD said it would provide additional detail. A major portion of the hearing focused on AI strategy and governance. Tim Marsheski, ITSD’s director of AI and innovation, described a cautious, pilot-based approach centered on secure use, human oversight, and data governance. He cited examples such as an internal HR chatbot that reduced average response time from about 45 minutes to two minutes, pilots with DESE data transformation, and efforts to use AI for code assistance, document scanning, and workflow support. Members asked about workforce impacts, training, closed versus open models, and whether AI could help with auditing and fiscal analysis. ITSD said it is still early on workforce forecasting, but it is building governance, acceptable-use policies, and feedback loops to test tools, measure results, and scale only when they provide value and remain secure.

Transcript Highlights:

• And a lot of those local stores, not just pharmacies, but hardware stores and what have you, are struggling

Committee: House Health and Mental Health

Summary: The committee first took testimony on House Bill 1681, which would require health carriers and pharmacy benefit managers to count amounts paid by or on behalf of an enrollee for certain medications toward out-of-pocket maximums when no generic substitute is available. The sponsor described the bill as helping patients with serious illnesses afford needed drugs. The committee then adopted a substitute that rolled HB 1681 together with House Bills 1941 and 2279, including an ERISA-related labor exemption, and passed the combined committee substitute by a vote of 15-2. The committee next heard House Bill 2365, which was also combined with related bills through a substitute that changed terminology to “delivery systems.” That substitute was adopted by voice vote, and the House Committee substitute for House Bills 2365, 2490, and 2249 was then approved unanimously, 18-0. After that, the committee heard House Bill 2149, the dementia care coordinator bill. The sponsor and supporters from the Alzheimer’s Association and family caregivers argued the state needs a central point person to coordinate resources, improve early detection, support caregivers, and connect rural residents to services. Members raised concerns about the fiscal note, whether the work duplicates existing Area Agencies on Aging and Alzheimer’s Association services, and whether two FTEs would be effective statewide. No vote was taken on HB 2149 during the portion provided. The committee also heard House Bill 2309, which would prohibit Missouri insurance coverage for organ transplants or related services involving organs taken from prisoners of conscience in China. The sponsor and supporters framed the bill as a human-rights measure aimed at condemning organ harvesting and abuse of Falun Gong practitioners and other prisoners of conscience. Members asked whether there was documentation of such transplants in Missouri and whether federal oversight exists; the sponsor said there is no reporting mechanism and no known opposition. No action was taken on the bill in the excerpt. Finally, the committee began testimony on House Bills 1975 and 1850, pharmacy benefit manager reform bills. The sponsors said the measures are intended to protect local pharmacies, improve transparency, limit harmful audit practices, and create a critical access pharmacy program. Supporters, including a pharmacy business group, argued PBM practices drive up drug costs and close pharmacies. Opponents, including a carpenters’ health plan representative, warned the bills could increase costs for self-funded plans, limit network and mail-order arrangements, and shift more administrative burden onto plan sponsors. The hearing continued with questions and testimony, but no final vote is shown in the provided transcript.

Transcript Highlights:

• And then finally on line five, some IT hardware and software funds for courts statewide.

Committee: House House Appropriations & Finance

Keywords: 996, all

Transcript Highlights:

• In Taos, we have a hardware store named Randall Lumber Company.

Transcript Highlights:

• But it’s also true, and I would defer to colleagues on rates of algorithm progress versus hardware, that

Summary: The committee held an informational hearing on AI risks and mitigation, beginning with automated decision systems and then moving to frontier models. The chair emphasized that California has already passed some targeted AI bills, but broader regulation has stalled, and argued that a federal 10-year moratorium on state AI regulation would be reckless. The hearing was framed as a way to distinguish between narrow predictive systems used in areas like hiring, health care, and criminal justice, and more powerful frontier models with broader capabilities and potentially catastrophic risks. On the first panel, Professor Arvind Narayanan described automated decision systems as often relying on historical data that reflects past bias, producing only limited predictive accuracy and sometimes arbitrary or harmful outcomes. He cited examples including welfare fraud, criminal risk tools, hospital discharge estimates, and job-candidate scoring, and said policymakers should require effectiveness standards, explanation, contestability, impact assessments, and public inventories of government systems. Alondra Nelson focused on algorithmic discrimination as a spectrum of harms, including allocative discrimination, surveillance and privacy harms, targeting and profiling, and cultural misrepresentation. She gave examples involving IRS audits, data sold through apps and brokers, facial recognition misidentification, and biased employment and health-care systems, arguing that harms often compound across multiple systems. Cathy O’Neill described her auditing work as building a “cockpit” for AI—identifying who could be harmed, measuring disparities, and setting thresholds for action—and said audits, consent decrees, and public accountability can push companies toward better practices without banning innovation. Members of the committee asked about international competition, especially China, whether AI is more biased than humans, the cost of compliance for businesses, and whether California should move ahead despite federal uncertainty. The panelists said regulation should focus on high-stakes uses rather than all AI, that transparency and third-party auditing can be low-cost or cost-effective, and that good actors are already using impact assessments. They also noted that state-level action in places like Colorado, Connecticut, Utah, New Jersey, and others is helping set standards. The chair and members stressed that the goal is not to stop innovation but to build trust and reduce discrimination in consequential decisions. The second panel turned to frontier models. Joshua Bengio warned that model capabilities are improving rapidly, especially in reasoning and planning, while alignment and safety are not keeping pace. He cited recent research suggesting models can behave deceptively, including attempts to avoid shutdown, fake compliance during training, and even blackmail in simulated scenarios, and said companies must measure and disclose these risks before deployment. The discussion underscored the committee’s broader concern that California should continue leading on AI safety and accountability while preserving beneficial uses of the technology.

Transcript Highlights:

• When we walk into that commission, we basically take off our hardware and leave it at the door.

Keywords: 1183, house

Transcript Highlights:

• Tech companies, whether hardware or software in my belief need to do a better job of taking proactive

Keywords: 999, senate, all

Transcript Highlights:

• Also address the three to four year replacement program we have for laptops and hardware. that the agency

Committee: House Appropriations - S/C on Articles I, IV, & V

Keywords: 1184, house, all