Transcript Highlights:

• House Bill 645 deals with portable benefits.
• Is there any limit on that?
• Is there any limit on that?
• Gentlemen, are you asking if there are limits on the numbers?
• So my question is, is there a limit where after which...

Summary: The House convened with 66 members present, approved the journal, and received a Senate message transmitting enrolled House Bill 504 to the Judiciary, Rules and Administration Committee for delivery to the Governor. Committee reports followed, including several bills recommended do pass and referred to the appropriate committees or calendars, along with House Bill 562 being placed on general orders without objection. During third reading, the House first took up House Joint Memorial 14, which urges federal agencies to advance water-storage research and planning in Idaho, including small and medium reservoir feasibility, basin studies, and a long-term goal of 750,000 acre-feet of new storage by 2100; it passed by voice vote and was sent to the Senate. The House then passed House Bills 676, 737, 615, 683, 684, 645, 703, 560, and 637, with recorded votes on several measures. The bills addressed geothermal utility water-right planning, consolidation of state agency functions, disturbing the peace at religious services, sex-offender residency clarification, reimbursement for counties retrieving escaped prisoners, portable benefits for independent contractors, consolidation of DOPL disciplinary provisions, allowing prospective jurors to serve as poll workers, and recognizing foreign gold and silver coin as legal tender in Idaho. House Bill 637 passed on a narrower 55-13 vote; the others passed with larger margins. Members also agreed to hold the remaining third-reading bills one legislative day. In announcements, committees scheduled upcoming meetings, the Energy Caucus and construction industry reception were noted, and members were reminded to submit amendments before the next general orders calendar. The House then adjourned until 10:30 a.m. on Friday, February 27, 2026.

Transcript Highlights:

• So the cost impact is really unknown relative to the benefit versus not, between Texas Mutual benefiting
• Limiting energy sources could create vulnerabilities.
• Energy projects benefit rural communities.
• They view it as a benefit for them.
• Gas turbines are scarce and will remain limited for years.

Bills: SB458, SB819, SB1238, SB1642, SB1643, SB1644, SB1791, SB1810, SB1824, SB1825, SB758, SB1455, SB1706

Keywords: insurance appraisal, property insurance, auto insurance, homeowners insurance, residential property, disputed loss, loss valuation, appraisal clause, appraiser, umpire, Texas Department of Insurance, TDI, insurance dispute resolution, claims adjustment, total loss, windstorm insurance, FAIR Plan, surplus lines insurance, policyholder, insurer

Transcript Highlights:

• Testimony will be limited to one minute per individual.
• It would limit the Apple Health Expansion Program to our current caseload.
• And as a reminder, we are limiting testimony to one minute.
• It reduces investigative delays, limits further harm, and connects families.
• That limits our flexibility.

Summary: The House Appropriations Committee opened with committee guidelines for the 2026 session, including limits on testimony, amendment deadlines, confidentiality expectations, and professionalism rules. Chair Ormsby also reviewed housekeeping for the public hearing, noting the meeting was recorded and live streamed, and that testimony would be limited to one minute because of the large number of sign-ups. The committee then began its work session on Governor Ferguson’s proposed 2026 supplemental operating budget, presented by OFM Director Katie Chapman, who outlined the state’s fiscal pressures: higher caseloads in major programs, a revenue forecast decline of about $390 million, federal policy changes tied to H.R. 1, inflation, and a relatively small ending fund balance. She said the governor’s budget solves about a $2.3 billion shortfall through nearly $800 million in spending reductions, revenue shifts, fund transfers, use of about $1 billion from the Budget Stabilization Account, and some tax preference changes, while also making targeted investments in areas such as child welfare, behavioral health, wildfire response, housing, and IT modernization. Chapman also explained that the proposal does not fully balance over the four-year outlook under the state’s statutory assumptions, but said the governor relied on the budget-balance law’s exception tied to BSA use and low employment growth. A question from Rep. Connors about credit ratings was answered with the view that the impact is difficult to predict and that Washington’s strong pension funding and balanced-budget framework remain positives. The public hearing drew testimony from state officials and many advocates, most of whom opposed specific cuts or fund shifts in the governor’s proposal. Secretary of State Steve Hobbs objected to proposed sweeps from the corporations and charities fund and the library archives account, citing prior cuts, layoffs, cyberattack-related costs, and the need to upgrade aging systems. Commissioner of Public Lands Dave Upthegrove urged restoration of wildfire prevention funding, saying the proposed amount was still $30 million short of the commitment in House Bill 1168 and that underfunding would increase suppression costs and risk to communities. Many education witnesses opposed reductions to Working Connections Child Care, transition to kindergarten, local effort assistance, Running Start, and higher education across-the-board cuts, arguing they would harm access, equity, and workforce development. Higher education leaders from community colleges, the University of Washington, Western Washington University, and Evergreen State College described staffing cuts, program reductions, and pressure on student services, while K-12 groups and OSPI said the budget would deepen existing funding gaps. A large portion of testimony focused on human services, health, housing, and civil legal aid. Child welfare and youth-serving organizations supported some targeted investments but opposed cuts to child care, child welfare network administration, and youth programs; advocates for foster youth, homeless youth, and mentoring programs asked for continued or increased funding. Health care and long-term care providers warned that proposed Medicaid and rate changes would reduce access for seniors, people with disabilities, and safety-net patients, while Planned Parenthood and abortion access advocates urged full restoration of the Abortion Access Project and related reimbursements. Housing and legal aid witnesses backed the governor’s proposed right-to-counsel funding but asked for more support, and homelessness advocates sought contingency funding for federal housing programs. Crime victim and domestic violence service providers repeatedly said the proposed $12 million was far short of the roughly $21.38 million needed to avoid service cuts and closures. Other testimony addressed the Climate Commitment Account shift for the Working Families Tax Credit, with environmental advocates opposing the diversion of CCA dollars and workforce advocates supporting the governor’s economic security and employment programs. No votes or formal committee action were taken during the hearing portion described in the transcript.

Transcript Highlights:

• These groups can regulate or limit the use of property by their members.
• These groups can regulate or limit the use of property by their members.
• This uncertainty limits our ability to invest.
• The three requests for additional information limit is problematic for similar reasons.
• First, regarding the specific limitation on the number of requests, as the others have said, limiting

Bills: SB6001, SB6015, SB6054, SB5470, SB5884, SB6018, SB6027, SB6028

Keywords: building code, scissor stairs, safety regulations, construction standards, statebuilding regulations, residential building, construction permits, housing development, planning efficiency, state regulations, wildfire, home hardening, fire-resistant materials, fire-hardened building materials, common interest communities, homeowners association, HOA, condominium, condo association, wildland urban interface

Transcript Highlights:

• agricultural ...benefits by the nonprofit agricultural organization.
• A nonprofit agriculture organization may not impose or amend any annual or lifetime benefit limitation
• or cap in any plan for health benefits unless the nonprofit... ...benefits unless the nonprofit agriculture
• It looks like it strictly has to do with annual and lifetime benefits.
• I consider that a great benefit for our members.

Bills: HB506, HB513, HB437

Keywords: emergency vehicles, off-road vehicles, public safety, liability, regulations, background check, criminal history, biometric identifiers, fingerprints, iris scan, palm print, photograph, rap back, NGI Rap Back, ALEA, Alabama Law Enforcement Agency, AJIC, Alabama Justice Information Commission, employment screening, licensing

Transcript Highlights:

• To Richard's point, determine if the benefit is calculated correctly.
• In some cases, they might be getting more benefits than they were entitled to.
• In some cases, they might be getting less benefits than they're entitled to.
• I believe strongly in limited government, local control, and allowing communities...
• You don't drive and keep looking for a speed limit.

Bills: SB1024, SB1032, SB1059, SB1062, SB1064, SB1097, SCM1001, SCR1004

Keywords: roadable aircraft, registration, vehicle title, license plates, aviation safety, corrections oversight, funding, state budget, criminal justice, reform, appropriation, Department of Transportation, right turn lane, traffic improvement, infrastructure funding, transportation funding, authorization, road improvements, intersection safety, transportation

Transcript Highlights:

• As we understand the law, there are already limitations on what an election administrator could do, and
• The bill includes a limited-scope sunset review of the state lottery that must be concluded by August
• The bill includes a limited-scope sunset review of the state lottery that must be concluded by August
• The bill includes a limited-scope sunset review of the state lottery that must be concluded by August
• the Finance Committee meeting, Senator Bettencourt talked about how the Lottery Commission would benefit

Bills: HB668, HB677, HB766, HB3133, SB3070

Keywords: HB 668, Texas, handgun license, license to carry, LTC, concealed carry, open carry, firearm permit, gun license renewal, public safety, Department of Public Safety, DPS, Government Code Section 411.185, renewal fee, handgun permit, Second Amendment, carry permit, firearms regulation, HB 677, Texas Election Code

Summary: The committee met to hear several bills, beginning with House Bill 766, which would require precinct chair applicants to provide an email address, phone number, or both on their applications while keeping that contact information confidential. No one testified for or against the bill, and it was left pending. House Bill 677, a companion to a previously approved Senate bill, would bar county election administrators from simultaneously holding another office or position appointed by an elected official; it also drew no public testimony and was left pending. Members then heard House Bill 3133, which would add explicit deepfake material to the list of content social media platforms must handle through complaint systems, including prompt acknowledgment, investigation, and status updates. Senators discussed concerns about how platforms would verify whether reported content was actually a deepfake, and the sponsor indicated the bill may be held pending while federal law on the subject is reviewed. House Bill 668 would create a one-year grace period for renewing an expired Texas handgun license to carry, codifying an existing DPS practice; it also received no testimony and was left pending. The committee spent the most time on Senate Bill 3070, a major overhaul of the Texas Lottery system. The bill would move oversight from the Lottery Commission to TDLR, dissolve the commission, impose new restrictions on ticket sales and internet play, create a lottery advisory committee, increase transparency and audit requirements, and include a sunset review that could lead to abolishing the lottery if not continued by 2027. The author described the bill as a response to alleged misconduct and illegal practices by the commission, while a witness from the Christian Life Commission testified in favor, supporting changes to prize anonymity and other lottery restrictions. After testimony, the bill was left pending, and the committee recessed subject to the call of the chair.

Transcript Highlights:

• And then it revises the benefiting from human trafficking or smuggling statute.
• The previous draft repealed the benefiting from human trafficking...
• , and even the $2,000 limit if you have five or fewer prior transactions.
• I mean, is your position that there should be no caps and no limits at all?
• The transaction limit, on the other hand, is a different question.

Keywords: 985, all

Transcript Highlights:

• </c><00:07:13.280><c> that's</c> research underway to benefit that's research underway to benefit that's
• ><c> with</c><00:07:14.960><c> other</c> going to benefit patients with other going to benefit patients
• </c> of expenditure and when the benefit of expenditure and when the benefit comes<00:16:46.800><c> and
• the Medicaid program but may benefit the Medicaid program but may benefit<00:16:52.959><c> citizens<
• c><01:36:52.400><c> to</c> limited um but not limited to limited um but not limited to potentially potentially

Keywords: 1191, senate, all

Transcript Highlights:

• NAIC model law for limited long-term care.
• It does not limit it solely to the liquor wholesalers.
• So I don't even know why we have any limits on CBD at all.
• The benefits of this bill are clear.
• The original licensing framework was designed to limit vertical integration.

Bills: HF1545, HF2426, HF1615, HF2403

Keywords: medical cannabis, cultivation, cannabinoid products, plant canopy, Minnesota statutes, cannabis, hemp, lower-potency, edibles, regulations, licensing, local control, consumer safety, age restrictions, commerce policy, financial institutions, insurance regulation, limited long-term care insurance, Medicare supplement, health insurance

Transcript Highlights:

• positive benefit to cost ratio. Um, positive benefit to cost ratio.
• </c> limitations on on that in the bill. limitations on on that in the bill.
• You guys operate... significant limitations. I'll say um you significant limitations.
• </c> spent it's a $2 benefit so or $3 benefit spent it's a $2 benefit so or $3 benefit so<02:42:17.680
• </c> to three dollars in benefits. to three dollars in benefits.

Keywords: 1189, house, all

Transcript Highlights:

• So just want to highlight that benefit. Thank you. L.A.O. Brian Metzger, L.A.O.
• Dorm space is also sort of a limiting factor as well, but it is sequential.
• Well, but seedlings have a limited life.
• Is there a benefit to having our own aircraft? Thank you.
• And we'd like to limit your comments to 30 seconds.

Summary: The subcommittee met to discuss several California Conservation Corps (CCC) and Cal Fire budget proposals, with no votes taken and all items held open for a future hearing. The CCC overview highlighted the program’s 50th anniversary, its statewide conservation, disaster response, education, and workforce development work, and its funding mix of General Fund and fee-for-service reimbursements. Members praised the program’s impact on young adults and communities, and asked about revenue sources, partnerships, recruitment, and outcomes for Corps members after service. A major CCC item was reopening and staffing the Greenwood Residential Center in El Dorado County. The department said the center is needed to restore local wildfire and fuel-break capacity, especially when winter road closures limit access to other facilities. The LAO said the proposal has merit but suggested the Legislature consider lower-cost alternatives, such as using fewer new Corps members or delaying opening, given the budget condition. The committee also discussed a proposal to move CCC hand crews to a seven-day wildfire readiness schedule; the department argued this is needed to match Cal Fire’s year-round operations and reduce chronic staffing gaps, while the LAO recommended considering partial funding or other cost-saving options. Cal Fire’s department overview focused on year-round wildfire response, vegetation management, community preparedness, and the 66-hour workweek rollout. Members asked about contract counties, federal partnerships, reforestation capacity, and the use of cap-and-invest and General Fund dollars amid structural deficits. Cal Fire said its nursery capacity is far below reforestation needs and relies on public-private partnerships, and it described reimbursements for work on federal lands. The committee also discussed defensible space inspections, with Cal Fire seeking permanent staffing to replace temporary positions and maintain its goal of 250,000 inspections annually; the LAO suggested alternatives such as different funding mixes, a reinstated SRA fee, or one-time funding. Finally, the committee heard a request to increase Cal Fire’s fixed-wing pilot and mechanic contract. Cal Fire said the larger, more complex aircraft fleet and year-round fire season require more pilots and maintainers, and that contracting provides flexibility and avoids some benefit costs. The LAO said the proposal addresses significant health and safety concerns and merits consideration, while members questioned whether in-house staffing or longer contract terms might be more cost-effective. Throughout the hearing, members emphasized wildfire risk, budget pressures, and the need to balance public safety with fiscal discipline.

Transcript Highlights:

• I think there's roughly 35 plus whoever else is signed in at the door, and we do limit testimony to three
• It would require the state to incorporate those goals into emission limits and some limits and future
• These decisions reflect a growing recognition of the current limitations in electric truck technology
• My colleagues will dive into more details on how this would look in practice and the many co-benefits
• We live on a planet with limited resources, so choices and trade-offs must be made.

Keywords: 995, all

Summary: The committee on Telecommunications, Utilities and Energy heard testimony on several transportation and clean-fuel bills. Supporters of H. 3535 argued for delaying or pausing enforcement of Massachusetts’ zero-emission vehicle sales mandate, saying the current ACC2 timeline is unrealistic given low ZEV sales, limited charging infrastructure, dealer inventory concerns, and potential economic impacts on dealerships, consumers, and tax revenue. Opponents of that approach, including automakers and clean transportation advocates, said the state should stay on course with electrification and that the mandate is necessary to meet climate goals. The committee also heard support for H. 3570/S. 2326 to update vehicle emission standards for municipal and utility fleets, with municipal utility representatives saying current electric truck technology, charging access, and costs make the rules impractical for critical public services. A major portion of the hearing focused on S. 2246, the Freedom to Move Act, which would require MassDOT and regional planning agencies to set vehicle miles traveled reduction goals and align transportation spending with climate targets. Supporters said the bill would better coordinate transportation planning, encourage transit, biking, and walking, and help Massachusetts meet emissions goals while saving money and improving public health. Some committee members raised concerns that the bill could duplicate existing transportation climate mandates and could disadvantage rural residents who must drive long distances; witnesses responded that the bill is meant to add coordination and flexibility, not impose a one-size-fits-all solution. The committee also heard testimony on H. 3448, which would set deadlines to electrify school buses and public fleets and create programs for private fleet electrification. Advocates said fleet electrification is a practical way to cut emissions, improve air quality, and save money over time, especially for schoolchildren exposed to diesel exhaust. Several witnesses also supported low-carbon fuel standard bills H. 3576 and S. 2251, arguing they would reduce fuel carbon intensity and generate revenue for charging and clean-fuel investments. Others, including a coalition opposed to private jet expansion, objected to the bills’ treatment of sustainable aviation fuel, saying it is not scalable, is expensive, and could create land-use and food-supply tradeoffs. No votes or formal committee actions were taken in the hearing excerpt provided.

Transcript Highlights:

• This is a need, this is a benefit. We're excited about it, but it's not here yet.
• They also have this concept of expanded benefits that the health plans provide.
• So if a service has a limit of 12 units per month, health plans can go beyond that for an expanded benefit
• So it's a richer, broader benefit package.
• This benefit is known as the Andrew John Anderson Rapid Whole Genome Sequencing Program.

Summary: The subcommittee held its first meeting of the 2025-2026 term, took attendance, confirmed a quorum, and heard introductory remarks from members and staff. Chair Anderson outlined the subcommittee’s jurisdiction over access and affordability issues, including health facility regulation, insurance, Medicaid, CHIP, and state employee health coverage. The main agenda item was an update on implementation of HB 391, which created a family home health aide program for medically fragile children. Representative Tramont, the bill sponsor, explained that the law was intended to let trained family caregivers be paid through Medicaid to care for their children, reduce reliance on private duty nursing, and relieve families. He and several members expressed frustration that implementation had taken nearly two years and that families still faced barriers. Deputy Secretary Brian Meyer of AHCA and Bridget Royce of DCF said the program was implemented October 1, 2024, with billing available, but no home health agencies had yet launched the required 80-hour training program and no claims had been paid. They described the program’s requirements, including agency employment, background screening, training, a $25-per-hour Medicaid rate paid to the agency, and an annual assessment report. A major issue discussed was that income earned by family caregivers counts toward Medicaid eligibility and could cause families to lose coverage. AHCA and DCF outlined two possible fixes that would require CMS approval: disregarding the income for eligibility purposes or treating the child as a family of one. Members and public witnesses strongly urged changes to avoid forcing families to choose between income and coverage. Several providers said they had begun preparing training programs, but asked for clearer approval processes and more patient-specific training requirements. The committee then heard extensive public testimony from parents and caregivers of medically fragile children, who described the financial, emotional, and logistical strain of caring for children with severe disabilities and argued that the bill should be expanded to include Florida KidCare families and others in the coverage gap. They also raised concerns about the eight-hour-per-day limit, low pay, and the need for simpler rules and direct support. Home health providers and associations supported the concept but asked for modifications, including more targeted training and clearer implementation guidance. The meeting then shifted to a second agenda item on the Andrew John Anderson Rapid Whole Genome Sequencing Program, which was funded in the 2023 budget. Deputy Secretary Meyer said the program has been implemented since January 1, 2024, but utilization has been lower than expected, with only about 60 claims paid and many denials occurring through managed care. Public testimony from a lab, a hospital, and a pediatric rare disease expert said the program is clinically valuable and cost-saving, but managed care billing barriers, prior authorization issues, and DRG-related denials are limiting access; they urged direct billing to Medicaid and possible expansion to all newborns.

Transcript Highlights:

• </c> benefit on behalf of active teachers. benefit on behalf of active teachers.
• Are they actually benefiting? necessary? Are they actually benefiting?
• </c><00:37:22.480><c> I</c> on your on your fringe benefits. I on your on your fringe benefits.
• </c> included in those fringe benefits. included in those fringe benefits.
• </c> benefit in that. I I truly believe that. benefit in that. I I truly believe that.

Keywords: 958, all

Summary: The Budget Review Subcommittee on Education met without a quorum, so the minutes were not approved. The main presentation was from retired economics professors John Garren and Dr. Kums, who discussed their Bluegrass Institute research on teacher compensation in Kentucky since the Kentucky Education Reform Act era. They said teacher base salaries, adjusted for inflation, have declined over the last decade, while state-paid “on-behalf” benefits such as pension and health insurance contributions have risen sharply; they argued total teacher compensation has increased modestly overall, but less than per-pupil funding. They also presented broader context on staffing growth, declining average daily attendance, Kentucky’s low share of teachers among total school staff, and flat or weak NAEP and ACT performance trends, including widening white-Black score gaps on NAEP. Members questioned the methodology and interpretation of the compensation figures. Representative Bojanowski argued the on-behalf calculations may overstate teacher compensation because they include insurance and pension costs that also benefit classified employees and retirees, and he asked for clarification on the denominator used to derive the per-teacher amount. Representative Truit said the presentation could be misleading if it implies teachers earn $94,000 in salary, and he objected to framing pension stabilization payments as teacher pay. The presenters responded that they were using total compensation, not salary alone, said they had divided total personnel-related on-behalf payments by the relevant staff count, and promised to review and send a technical explanation. Representative Truit and Chairman Typton both emphasized that compensation should be viewed as salary plus benefits, not salary alone, and noted that pension contributions are part of the cost of employing teachers. The presenters said their intent was to show the full compensation package and its relevance to labor supply and teacher shortages, not to claim that individual teachers earn the total compensation figure as salary. No votes or formal actions were taken beyond the decision to revisit the minutes at a later meeting due to the lack of quorum.

Transcript Highlights:

• Assignment of benefits... Important piece of the legislation.
• Assignment of benefits, prohibiting the assignment of benefits, is something that many states across
• It's no benefit to the public.
• In terms of the DMA, there have been a lot of benefits.
• And it does limit consumer choice without us even knowing that our choices have been limited.

Keywords: 987, senate, all

Transcript Highlights:

• This amendment allows us to build on the local community benefit fund, which has proven an invaluable
• It is important to note that no single person benefits from our tribe’s gaming.
• It is important to note that no single person benefits from our tribe’s gaming.
• Economic benefits to the community. And we provide more than $627 million in annual compensation.
• When I was first appointed to San Bernardino County Board of Supervisors, I had a limited knowledge of

Summary: The Assembly Committee on Governmental Organization held an informational hearing on seven tribal-state gaming compacts and amendments, with Chair Blanca Rubio noting that no formal vote would be taken because the Legislature cannot amend the compacts. The committee heard briefings from the Governor’s Office and tribal representatives on the Pechanga Band of Indians, Agua Caliente Band of Cahuilla Indians, Fort Mojave Indian Tribe, Picayune Rancheria of Chukchansi Indians, Yocha Dehe Wintun Nation, Santa Ynez Band of Chumash Indians, and the Urok Tribe. A recurring theme was updating compact terms in light of the Ninth Circuit’s Chicken Ranch decision, including narrowing or clarifying revenue-sharing, regulatory, labor, and liability provisions while preserving state and tribal interests. For the Pechanga, Agua Caliente, and Yocha Dehe amendments, witnesses described commitments not to sue over certain revenue terms, additional gaming-device flexibility, and continued or enhanced payments to the special distribution fund, revenue-sharing trust fund, and tribal nation grant fund. Pechanga and Yocha Dehe each sought flexibility for 1,000 additional devices, while Agua Caliente sought 500 additional devices and a restructuring of its trust-fund contributions. Tribal leaders emphasized economic development, government services, public safety, education, cultural preservation, and community investments, and local government representatives from San Bernardino County and other jurisdictions spoke in support of the agreements. The committee also heard two new compacts: Fort Mojave’s compact, which replaces an expired 2004 agreement and allows up to 1,200 devices at up to two facilities, including a future site near Needles subject to federal approval and gubernatorial concurrence; and the Urok Tribe’s compact, which replaces an expiring 1999 compact and allows up to 349 devices at up to three facilities. The Picayune Rancheria of Chukchansi Indians sought a fifth amendment extending its existing compact while litigation continues, and the Santa Ynez Band of Chumash Indians sought a second amendment extending its compact term and refining liability and insurance provisions. After hearing testimony and brief public comment, the chair closed the hearing and indicated the measures would move to the floor for formal consideration.

Transcript Highlights:

• Teachers oppose bills that even would benefit them.
• However, one aspect of the program design severely limits its full potential.
• Analysis has shown that this does drive real growth and strong economic local benefits.
• But I'm also looking at the increased costs of benefits. a little vague right now.
• But I'm also looking at the increased costs of benefits.

Summary: The committee heard Senate Bill 1277, which would create a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide refundable relief to low- and middle-income Californians facing high housing, fuel, energy, and general living costs. Senator Grove and supporters, including the California Policy Center and some local government representatives, argued the bill would put direct relief into the hands of working families. Opposition came from the California Tax Reform Association and the California Teachers Association, which said California already has progressive tax credits and that the proposal would be costly to the General Fund and reduce money for schools and other services. After extended debate, the bill was not advanced; a roll call vote on a motion to pass it to Appropriations failed 1-4, and the bill was held/fails on the floor with a request for reconsideration noted. The committee then heard SB 1287, which would create a capped tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the measure would improve safety, reliability, emissions, and freight movement, especially for rural communities and agriculture, and that it was a public-private partnership rather than a handout. Opposition from CTA and the California Tax Reform Association argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call without a final vote in the transcript. Members also considered SB 1407, which would fully exempt military retirement pay and surviving spouse benefits from state income tax, increasing the prior partial exemption. The author, State Treasurer Fiona Ma, and veterans’ groups said the change would help retain veterans in California, support local economies, and align California with most other states. CTA and CTRA opposed on General Fund grounds. The committee approved the bill on a due-pass-as-amended motion to the Committee on Military and Veterans Affairs, with the roll call showing support and the bill placed on call. Later, the committee heard SB 1349, directing the Legislative Analyst’s Office to review major tax expenditures and evaluate their goals, beneficiaries, and effects on revenues and Proposition 98 funding. CTA, CTRA, and several local government and labor supporters backed the bill as a way to improve accountability for roughly $94 billion in annual tax expenditures. The bill was accepted with committee amendments and placed on call. The committee also heard SB 1078, authorizing Santa Cruz County to ask voters for a temporary half-cent sales tax to help fund health care and safety-net services amid federal cuts; it was placed on call. SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries, received strong support from business and manufacturing groups and was passed on a due-pass-as-amended motion to Appropriations. Finally, SB 1275, which would replace the state sales tax on vehicle purchases with a vehicle license fee structure intended to increase federal deductibility for Californians, was passed 4-0 as amended to the Committee on Transportation.

Transcript Highlights:

• And I think that maybe both sides benefit some people, another side benefits the other, right?
• You've heard all of the benefits of the bill. I'm not going to repeat those.
• The ratepayer benefits for public transmission financing are significant.
• Those are significant benefits.
• They can continue to enjoy the benefits of the system.

Summary: The committee heard several energy and utilities bills, with testimony largely focused on wildfire mitigation, affordability, clean energy planning, and utility accountability. AB 706, by Assembly Member Aguiar-Curry, would create a fund to support projects that use forest biomass waste from wildfire mitigation and forest restoration; supporters said it would reduce open burning and emissions while providing reliable renewable power, and the bill later passed 13-0. AB 39, by Assembly Member Zbur, would require larger cities and counties to adopt electrification planning strategies for transportation and buildings; it drew broad support from clean energy, labor, environmental, and local government advocates and passed 9-0. AB 1167, by Assembly Member Berman, would restrict investor-owned utilities from charging ratepayers for lobbying, promotional advertising, and similar shareholder-benefit expenses; supporters framed it as an affordability and transparency measure, while utilities argued the bill was overly broad and already covered by existing rules. It passed 7-0, with some members not voting and the roll left open. The committee also considered AB 1417 on offshore wind community funding transparency, which was amended to remove new fees and instead require reporting on developer support for local and tribal community capacity-building; opposition was withdrawn and the bill passed 9-0. AB 367, by Assembly Member Bennett, would require water districts in high fire-risk areas of Ventura County to have backup power, full tanks during red flag warnings, and hardened facilities; water agencies opposed unless amended due to cost and liability concerns, but the bill passed 10-0. The consent calendar, including multiple additional measures, was approved 11-0. Other bills drew more divided testimony. AB 745 would allow securitization to finance utility undergrounding and prohibit a return on equity for undergrounding projects; supporters said it would lower ratepayer costs, while utilities warned it would effectively discourage undergrounding and could raise other rates. The bill passed 7-4 and was left on call. AB 1423 would apply reliability standards to publicly funded EV chargers installed before 2024; supporters said taxpayers should get functioning chargers, while charging-network representatives objected to retroactive requirements and possible conflicts with existing agreements. It passed 13-0. AB 388 would create a narrow exception to utility regulation to facilitate green hydrogen projects using private power lines; supporters said it would unlock low-cost renewable hydrogen and jobs, while utilities raised concerns about customer protections and grid planning. It passed 12-0. The committee also began hearing AB 825, which the author said would address the high cost of financing major transmission and generation buildout, but the transcript cuts off before the full presentation and action on that bill.

Transcript Highlights:

• Next we have the four benefit plans.
• Some of the limitations they're working with...
• Is there a statute of limitations on when we recoup those funds?
• The true limit to Medicaid expansion is 138%.
• We use the upper payment limit not just for hospitals, though.

Summary: The Joint Finance-Appropriations Committee held a budget hearing on the Division of Medicaid within the Department of Health and Welfare. Legislative Services analyst Alex Williamson reviewed Medicaid’s five budgeted programs, enrollment groups, staffing, historic spending growth, and the distinction between ongoing base adjustments and one-time enhancements. She explained that most Medicaid spending is in trust and benefit payments, discussed the large FY 2026 and FY 2027 budget changes, and walked through the governor’s recommendations, including hospital assessment fund alignment, claims forecast updates, MMIS procurement funding, estate recovery, program integrity support, and population forecast adjustments. Members asked extensive questions about the 4% provider rate reduction, the expansion population, federal match rates, and the effect of House Bill 345 and federal changes on Medicaid costs and eligibility. Williamson and Deputy Director Sasha O’Connell said the expansion population has declined, but costs are driven by utilization, provider rates, pharmacy, hospital, developmental disability, behavioral health, and long-term care services. They said the department is pursuing cost containment through prior authorization, redeterminations, higher cost sharing, and program integrity efforts, while noting that expansion is codified in law and any repeal or major eligibility change would require legislative action and could affect hospital assessment revenue and other offsets. The committee also discussed the MMIS replacement project, with lawmakers emphasizing milestone-based funding and risk control. O’Connell explained the estate recovery request as a replacement case management system plus contractor support to help recover Medicaid costs from estates, and said the program is federally required and revenue-generating. Several members raised concerns about backlogs, contractor costs, and whether AI or other technology could improve efficiency in program integrity and estate recovery. No votes were taken during the hearing; the discussion remained informational and focused on the governor’s budget recommendations and possible future reductions or policy changes.