Transcript Highlights:

• A statewide analysis could create substantial savings and provide a better basis for groundwater recharge
• This is substantially less than the face value of our permits, which is shown in orange.
• That decreased substantially with the subsequent permits, since we were just updating information because
• That decreased substantially with the subsequent permits, since we were just updating information because
• That could bring the cost down substantially.

Summary: The hearing focused on oversight of AB 658 and the State Water Resources Control Board’s five-year temporary permits for groundwater recharge. Assembly Member Arambula and committee members discussed how the permits are intended to help capture high flows during wet periods, support SGMA implementation, and store water underground for later use. The State Water Board chair said the five-year permits have become an important tool, with seven five-year permits issued this season and over 43,000 acre-feet authorized, but noted that actual recharge depends on hydrology and that the board is open to improvements. Members and witnesses discussed several possible changes to make the program more effective: allowing a two-year delay before the five-year permit clock starts, codifying CEQA exemptions that have been used through executive order, and shifting from a public objection model to a public comment model to reduce delays. There was also discussion of water availability analyses, with some members asking whether the state could develop a broader statewide assessment to reduce consultant costs and make permitting more predictable. The board said such an effort would be large and costly, but could potentially save applicants money and improve consistency. District representatives described their experiences. Stockton East said the five-year permit was more cost-effective than repeated 180-day permits, but that the 90-20 methodology, consultant costs, and a burrowing owl survey condition made use difficult. Omaha-Hartnell Water District said its recharge work depends on simple, low-cost infrastructure and that five-year permits, CEQA reform, and lower upfront fees would help small districts. A consultant working with Scott Valley and Sierra Valley said five-year permits can work well in different basins, but local infrastructure, stakeholder coordination, streambed alteration agreements, and upstream flow constraints can limit recharge. Members also raised concerns about basin connectivity, downstream water rights, and the need to pair recharge with sustainable groundwater pumping and broader water storage planning.

Transcript Highlights:

• The substantial projected increase in pre-firearm season harvest is going to have a negative impact on
• The substantial projected increase in pre-firearm season harvest is going to have a negative impact on
• The substantial projected increase in pre-firearm season harvest is going to have a negative impact on
• among youth and adult hunters in the past when technology, online resources, and gear options were substantially
• The substantial projected increase in pre-firearm season harvest is going to have a negative impact on

Keywords: 1183, house

Transcript Highlights:

• And these changes have substantial financial obligations that the state will face.
• And then at the same time, New Mexico has invested substantially in case management technology upgrades
• Generally speaking, compensation has increased pretty substantially for physicians across the state.
• Documentation reviewed showed that the goal setting and outcome reporting varies substantially across
• Outcome reporting varies substantially across providers and program types.

Keywords: 996, all

Transcript Highlights:

• Top-two systems, like those in California, routinely feature substantial levels of undervoting among
• But there is, in some cases, some evidence that turnout can be higher, but it is not substantially or
• perhaps lower than most other states, but the experts who testified before you said there's no substantial
• It was substantially not meaningful. That's what they said. Correct. It's modest.
• It was substantially not meaningful. That's what they said. Correct. It's modest. That is accurate.

Keywords: 995, all

Summary: The Special Joint Committee on Initiative Petitions held a public hearing on Initiative Petition 25-12, H.503, a proposal to implement all-party state primaries for Massachusetts state and federal elections. The committee opened with procedural remarks explaining Article 48 requirements and then heard first from two subject-matter experts. Professor Costas Panagopoulos of Northeastern University testified that top-two primary systems in other states have produced mixed results: they may modestly increase primary turnout in some cases, but the research does not show a reliable reduction in polarization, and such systems can weaken party gatekeeping, increase strategic behavior, raise campaign spending, and reduce general-election choice for voters whose preferred party is not on the ballot. Katie King of the National Conference of State Legislatures outlined the different primary models used nationwide, explained that Massachusetts currently uses an open-to-unaffiliated primary, and reviewed legal distinctions between blanket primaries and top-two systems; she noted that blanket primaries were struck down by the Supreme Court, while Washington’s top-two system was upheld because it narrows the field rather than nominating party candidates. She also said voter education and administrative preparation would be important if the system changed. The proponents’ panel, led by Danielle Allen of the Coalition for Healthy Democracy, argued that Massachusetts has chronically uncompetitive elections, low turnout, and too many uncontested races, and that all-party primaries would give every voter a meaningful choice in the first round and force candidates to appeal to a broader electorate. Allen said the proposal is designed specifically for Massachusetts and differs from other states by allowing party endorsements to appear on the ballot, which supporters said would preserve useful information while shifting control of the preliminary election from party insiders to voters. Jim Henderson, the coalition’s counsel, said the bill is narrowly tailored to state-level primaries and would amend Chapter 53 to put all voters on equal footing. Other supporters, including Kevin Johnson, Kate Kavanaugh, and Spencer Reynolds, emphasized that the reform could increase competition, reduce polarization, improve participation by independents and underrepresented voters, and create more accountability to the full electorate. Committee members pressed the witnesses on turnout, the practical effect of endorsements, whether the proposal would simply shift party influence to an earlier stage, and whether it could disadvantage minority-party or independent candidates. Senator Fattman repeatedly asked about evidence that turnout would materially increase, while Representative Peisch and others questioned whether requiring or seeking endorsements would create new barriers or pressure candidates to clear the field. Supporters responded that the system would modestly increase primary participation, that the general election would remain the decisive contest, and that endorsements would be optional and handled through party rules. No vote was taken at the hearing; the committee heard testimony and questions only.

Transcript Highlights:

• devastating reimbursement cuts. 33 nursing homes, including 10 of the county nursing homes, ended up with substantial
• ><00:04:09.680> ended<00:04:10.080> up<00:04:10.239> with<00:04:10.640> substantial
• nursing homes ended up with substantial nursing homes ended up with substantial rate<00:04:11.840
• <00:48:12.160> So,<00:48:12.319> I<00:48:12.560> support charge substantially
• So, I support charge substantially more. So, I support the<00:48:12.880> amendment.

Keywords: 1191, senate, all

Transcript Highlights:

• The financial impact of these crimes is substantial.
• in this statute, and one of the requirements under Section B is that the person either poses a substantial
• I'm just wondering if that would have risen to the level of a substantial posing a substantial risk of
• And the, the concern that I have is it says that this person must either pose a substantial risk of harm
• I think I'm, I'm a little bit concerned about the presence of a firearm constituting that substantial

Bills: HB316

Keywords: Medicaid, healthcare, affordable care act, medical assistance, federal funding

Transcript Highlights:

• But that bottom 20% is the same or substantially the same year after year.
• <01:02:28.160> the 20% is the same or substantially the 20% is the same or substantially the
• <01:02:39.040> different<01:02:39.200> than going to be substantially different than
• going to be substantially different than they<01:02:39.680> are<01:02:40.160> this<01:
• there, uh, I offered this substantially there, uh, I offered this substantially similar<01:06:42.319

Keywords: 1187, senate, all

Transcript Highlights:

• We all think that agencies should communicate with legislative members and staff regarding substantial
• We all think that agencies should communicate with legislative members and staff regarding substantial
• members and staff regarding substantial members and staff regarding substantial changes<00:20:32.039
• comment this time added a substantial comment this time because<00:46:11.880> we<00:46:12.000
• because we think that is a a substantial because we think that is a a substantial change<00:53:10.119

Bills: HF3

Keywords: legislative auditor, reporting, accountability, state finance, executive agency oversight, 1183, house

Transcript Highlights:

• By doing so, we can improve how substantiated reports of abuse and neglect are categorized by the California
• However, when the department substantiates abuse and publishes its findings on the transparency website
• requires the department to identify the specific type of abuse demonstrated by the evidence when it substantiates
• abuse allegations using the same statutory definitions, and SB 991 ensures that when abuse is substantiated

Summary: The Assembly Committee on Aging and Long-Term Care met without an initial quorum and heard four Senate bills focused on older adults and people with disabilities. SB 837 by Senator Reyes would require Aging and Disability Resource Connection programs to provide disaster and emergency preparedness education tailored to older adults and people with disabilities. Supporters, including the California Foundation for Independent Living Centers and the California Commission on Aging, cited recent wildfire deaths and the need for better evacuation planning and preparedness. The bill passed on a due pass motion and was re-referred to the Committee on Emergency Management. SB 971 by Senator Choi would create a Healthy Aging Community Partnerships Program to encourage voluntary local partnerships, including with community colleges and other entities, to support social connection, technology help, caregiver resources, and other healthy aging activities. Supporters said it would promote independence and prevent isolation at no mandated cost, while one member questioned whether the bill addressed a current legal gap and whether public health departments should be involved. The committee approved the bill on a due pass motion and re-referred it to the Committee on Health. SB 1261 by Senator Laird would allow Aging and Disability Resource Connections to continue operating for one to two years during transitions when an area agency on aging or independent living center operator changes, preventing service disruptions. Testimony from Access Central Coast and the California Association of Area Agencies on Aging emphasized the importance of continuity for thousands of clients. The committee passed the bill and re-referred it to the Committee on Appropriations. SB 991 by Senator Menjivar, presented by Assemblymember Gonzalez, would require the Department of Social Services to classify substantiated abuse in residential care facilities for the elderly by specific abuse type rather than a broad residents’ rights category. Ombudsman advocates argued this would improve transparency and accountability; members also discussed whether similar protections should extend to younger adults in other licensed settings. The bill passed on a due pass motion and was re-referred to the Committee on Human Services.

Transcript Highlights:

• Assembly Member Gonzalez: By doing so, we can improve how substantiated reports of abuse and neglect
• However, when the department substantiates abuse and publishes its findings on the transparency website
• requires the department to identify the specific type of abuse demonstrated by the evidence when it substantiates
• abuse allegations using the same statutory definitions, and SB 991 ensures that when abuse is substantiated

Keywords: 988, house, all

Transcript Highlights:

• They have very substantially qualified and limited that in every presentation that I've attended, and
• 00:09:57.839> They<00:09:58.160> have<00:09:58.560> very<00:09:58.959> substantially
• They have very substantially there.
• They have very substantially qualified<00:10:00.320> and<00:10:00.640> limited<00:10:01.040

Keywords: 958, all

Summary: The Medicaid Oversight and Advisory Board met on November 12, 2025, approved the October 22 minutes, and heard an update from Cabinet for Health and Family Services Secretary Steven Stack and Public Health Commissioner John Langfeld on Kentucky’s application for the federal rural health transformation grant. The presenters described the grant as a $50 billion, five-year program with annual CMS scoring and rescorings, no state appeal rights, and a December 31 deadline for CMS to announce awards. They said Kentucky submitted its application on November 3 and had gathered stakeholder comments earlier in the process. The testimony emphasized that the grant is intended to support new models of rural care rather than replace existing funding or pay for clinical services or lost hospital revenue. Officials said the state had to address at least three of five federal strategic goals, including prevention and chronic disease, sustainable access, workforce development, and care/technology innovation. They also reviewed restrictions such as no new building construction, no payment for monthly broadband costs, and a cap of 5% for electronic medical record-related spending. The presenters said CMS has been clear that funding should focus on innovation in care delivery, rural access, and related policy goals, and that the state’s award could vary year to year based on performance milestones. The meeting was interrupted by a building fire alarm and evacuation announcement before the presentation was completed.

Transcript Highlights:

• And so our school districts are getting substantial increases from the prior biennium to the next one
• And so our school districts are<00:05:17.759> getting<00:05:18.080> substantial<00:05:18.840
• > increases<00:05:19.840> from are getting substantial increases from are getting substantial

Keywords: 1183, house

Transcript Highlights:

• And it substantially changed the rules regarding the budget stabilization account, which is the state's
• So this was a substantial improvement in the state's reserve policy.
• But still 30% is substantially below a hundred percent and so in our view further improvements are certainly
• We also think it's important to keep in mind that this substantial improvement under the Governor's approach

Keywords: 988, house, all

Transcript Highlights:

• It is a substantial project and is still going on.
• That's a pretty substantial project.
• And so that's a pretty substantial project.
• That's a little more substantial. But that is progressing well so far.
• It is substantially completed.

Summary: The committee first received a general fund and revenue update from the Office of Management and Budget. Staff reported that the state started the biennium about $176 million above prior estimates, but year-to-date revenues were now running below legislative forecast, mainly due to lower individual income tax and sales tax collections. The budget stabilization fund was above its cap, the legacy fund continued to grow, and oil revenues were slightly above forecast overall. Members also asked about federal funding uncertainty and mineral leasing variability, and OMB said agencies would be asked to address potential federal reductions case by case during budget preparation. The committee then reviewed compliance reports and trust fund analysis materials, followed by a bill draft for a fixed-route city transportation grant program. Testimony from transit officials in Fargo and Minot supported the proposal, saying state aid would help match federal transit funds and support operations, but members raised questions about the funding source, fare structures, and whether the program should be limited to the current four fixed-route cities or allow future eligible cities. Several members asked for more time to study the formula and possible funding options before moving the bill forward. Next, the committee approved a bill draft repealing obsolete language related to a proposed North Dakota-South Dakota bi-state authority. Staff explained the provision had been unused for about 30 years and that existing law likely already allowed joint powers agreements without the specific language. The committee voted to adopt the repeal bill draft. The Department of Commerce and the Northern Plains UAS Test Site then provided an update on uncrewed aircraft system initiatives, including the Vantis radar data enclave, the drone replacement program, and future revenue models. Officials said North Dakota had received FAA approval to operate the radar data pathfinder, had begun replacing non-compliant drones from restricted foreign sources, and was working on phased procurement and cost-recovery plans. Members asked about deadlines, funding, supply-chain issues, and how the system would be used; staff said the federal restrictions were already in effect and that Vantis was being positioned as infrastructure for future beyond-visual-line-of-sight operations. Finally, the Department of Corrections and Rehabilitation presented on the design of a new minimum-security prison and on a reentry housing task force. The new facility is planned for the penitentiary grounds, with a reduced estimated cost of about $263 million, 600 beds initially, possible expansion to 732 beds, and completion projected around 2031 if funded in 2027. The reentry housing task force described a data-driven effort to identify housing needs for people leaving incarceration, with the goal of reducing homelessness and recidivism through targeted housing support and possible subsidies. Members asked about staffing, site selection, housing duration, and whether employment and transportation needs would be included in the assessment.

Transcript Highlights:

• And they're quite substantial.
• And they're quite substantial.
• It hasn't gone up every year, but in general the trend is pretty substantially upward.
• the trend is pretty substantially the trend is pretty substantially upward.<00:08:39.440> Now
• So, as you can see, these gaps have all widened pretty substantially since the 1990s.

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:

• Contract growth is pretty substantial.
• For instance, in the incident last night, I've already spent a substantial...
• But all that will diminish substantially if I have to put on a hiring freeze.
• The Commission has made substantial progress in better serving the Commonwealth and its people.
• was substantially lower, we raised this substantially.

Keywords: 995, all

Summary: The hearing was held in Clinton Town Hall as part of the Joint Committee on Ways and Means’ budget review, with local officials welcoming legislators and noting the long agenda of many panels. The main presentation was from Secretary Terrence Reedy of the Executive Office of Public Safety and Security, who outlined the Healey-Driscoll administration’s FY26 proposal for the secretariat, including a $1.7 billion budget and a 7% increase over FY25. He described investments in emergency preparedness, hate-crime prevention, reentry programming, technology modernization, internships, and public safety training, while also noting some reductions driven by resource constraints, including cuts to certain grant programs and administrative costs. Committee members also raised concerns about federal uncertainty and how it could affect state budgets and public safety planning. A major portion of the questioning focused on the Department of Correction. Secretary Reedy and Commissioner Sean Jenkins said the biggest challenges are staffing, officer wellness, facility safety, and contraband—especially K2. They described steps taken at MCI Souza and other facilities, including reducing population at the maximum-security unit, changing management, removing metal products and free weights, improving screening and roll calls, adding a rapid response team, and increasing investigative and technological efforts to combat K2. They also discussed the closure of MCI Concord, saying it was driven by high maintenance costs and staffing needs, and explained that savings are being used to improve staffing patterns and address deferred maintenance over time rather than producing immediate large budget reductions. Members also questioned the budget’s impact on police training and community policing. The administration defended the increase in police academy tuition from $3,200 to $6,000 as reflecting true training costs and said it would still be subsidized by the state, while acknowledging the burden on small municipalities. They said the MPTC is expanding regional training and considering proposals such as Greenfield Community College’s. On community policing, officials emphasized uniform statewide training, de-escalation, and communication skills. The State Police also announced an outside review of the academy by the International Association of Chiefs of Police and said the next class will be split into two smaller groups to improve oversight and allow quicker implementation of recommendations. Other topics included ICE and federal immigration enforcement, with Reedy saying state law prohibits Massachusetts law enforcement from acting in a civil immigration capacity and that no state dollars were used in the Tufts-related ICE operation mentioned by a member. Senators and representatives also raised the upcoming FIFA World Cup, warning that it will require significant public safety resources and likely federal funding. Additional discussion covered restorative justice and juvenile diversion, health care costs in DOC, electronic health records, and the need for more diverse and culturally competent public safety staffing. No votes were taken during the hearing.

Transcript Highlights:

• They present evidence with substantial public support, and the burden they have to prove is that restricting
• access to the... ...access to the water is a substantial public interest to protect the water source
• any reason, the public feels as if the burden was not met by that board, and that there was not a substantial

Bills: HB473, HB397, HB397

Keywords: water recreation, public access, water bodies, recreational use, water commissions, real estate, disclosures, equitable interest, disciplinary actions, Alabama Real Estate Commission, HB397, homestead exemption, ad valorem tax, property tax, tax relief, senior exemption, elderly homeowners, retiree exemption, disability exemption, blind exemption

Transcript Highlights:

• So our adult community clinical services and respite programs had expansion funds, a pretty substantial
• We've been able to supplement and expand substantially with ARPA dollars.
• These are some of the most substantial structural changes in the behavioral health delivery system.
• And we've handled a pretty substantial number of calls since it started in 2023.
• So clearly that's going to go down substantially. $12-plus million is out the delta the way.

Keywords: 995, all

Summary: The committee heard budget testimony from Department of Mental Health Commissioner Brooke Doyle, who said DMH serves about 29,000 people and is facing rising demand, higher operating costs, and uncertainty about federal funding. She explained that the FY26 budget prioritizes fully funding the state-operated inpatient system, which is at 100% occupancy and often serves people transferred from Bridgewater State Hospital, while making reductions in other areas to balance the budget. Those reductions include a 50% cut to case managers, a pause on closing the Pocasset unit pending a working group on Cape access, and changes to youth and contracted services such as right-sizing IRTP and CIRT, reducing Youth PACT from seven teams to three, scaling back flex and jail diversion grants as ARPA funds wind down, and preserving the behavioral health helpline and community-based crisis services. Members from Western Massachusetts and the Cape raised concerns about access, staffing, and the impact of cuts, and Doyle said the department would continue operating IRTP services, improve the referral process, and work with stakeholders on the Pocasset review and other access issues. The committee also discussed school-based mental health, 988, loan forgiveness for workforce recruitment, and the role of co-response programs for law enforcement. Secretary Robin Lipson then testified for the Executive Office of Aging and Independence, describing a proposed FY26 budget increase of about 21% to support councils on aging, home care, elder abuse investigations, caregiver support, care transitions, and nutrition programs. She said the agency is managing rising demand, especially from the growing 80-plus population, and noted uncertainty around federal Older Americans Act funding after the federal disbursement agency was disbanded. To control costs, the office will manage intake and caseload growth in a fully state-funded home care program, but current clients will not lose services. Lipson also highlighted a new $1 million line item for local mini-grants to support age-friendly initiatives. In questions, members focused on elder scams, and Lipson said scams are increasing and the agency is working with banks, district attorneys, and public awareness campaigns. The Health Policy Commission’s Executive Director David Seltz presented the agency’s FY26 request and said the biggest challenge is health care affordability, with family premiums near $29,000 annually and many residents delaying care because of cost. He emphasized that recent legislation significantly expands HPC’s role through a new Office of Pharmaceutical Policy and Analysis, which will examine the drug supply chain and pricing, and a new Office of Health Resource Planning, which will support statewide planning around closures and access gaps. The new law also creates task forces on maternal health access and primary care, and adds transparency and oversight for private equity in health care. Members asked about pharmaceutical costs, GLP-1 weight-loss drugs, 340B, and maternal health closures; Seltz said the data show rapid growth in GLP-1 spending and that the new offices will help the state better understand cost drivers and access problems. The Center for Health Information and Analysis then began its testimony, describing its role as the state’s data hub for health care spending, utilization, quality, and affordability analysis.

Transcript Highlights:

• If at the end of the 90 days, we have determined a district has not made substantial...
• If at the end of the 90 days, we have determined a district has not made substantial progress in correcting
• the 90-day period, which can result in the district coming out of non-compliance if it corrects a substantial
• While the district has substantially complied with the USFR, the district's auditor still noted some
• Overall, our district has made substantial progress in addressing these findings identified by the Auditor

Summary: The committee first heard an update on Topok Elementary School District’s long-running noncompliance with Arizona’s Uniform System of Financial Records. The Auditor General’s office explained the USFR noncompliance process and reported that Topok had made substantial progress, correcting many deficiencies in areas such as open meeting law, procurement, payroll, attendance reporting, property control, and information technology. The district’s superintendent and staff described the corrective actions they had taken, the use of outside consultants, and their plan to maintain compliance through stronger leadership, training, and consistent procedures. Members praised the district’s progress and asked about the remaining deficiencies and the status of the 3% state-aid withholding, which the Auditor General said would be addressed by the State Board of Education. The committee then considered a request for a fourth school safety special audit, tied to concerns raised by Representative Martinez about Phoenix Union High School District and school violence response practices. The Auditor General said the proposed audit would be a new topic focused on policies and procedures for responding to credible threats of violence and allegations of staff misconduct affecting student safety, and could include Phoenix Union in the sample. Representative Martinez described a fatal 2024 shooting, weapons incidents, and concerns about district oversight. The committee approved the motion 10-0. Next, staff presented the fiscal years 2027-2028 school district performance audit schedule, describing 26 randomly selected school districts and career and technical education districts, plus 84 planned follow-ups. The Auditor General said the schedule is intended to shorten the average time between audits and that the school audits division is now fully staffed. Members asked about county coverage and the inclusion of ESA accountability, but the schedule was ultimately presented for review rather than approval. The committee also heard a detailed federal compliance audit presentation on the Child Care and Development Fund (CCDF) administered by DES. The Auditor General reported repeated findings involving missing provider documentation, questioned costs, and FFATA reporting errors, including a 2024 sample that led to questioning $2.88 million in costs. The office recommended stronger documentation, record retention, reporting procedures, and staff training; DES concurred and said it would correct the findings in 2026. Members discussed the limits of the single-audit scope, the possibility of a broader special audit, and the federal government’s recent actions on CCDF oversight in other states. Finally, the committee considered and discussed a special audit request for CCDF that would broaden review to provider oversight, licensing, site visits, and billing accuracy across multiple state agencies, with estimated costs of $547,000 to $625,000 and a projected report date of July 31, 2027.

Transcript Highlights:

• There had been a period of substantial growth early in the pandemic and then a period of decline.
• There had been a period of substantial growth early in the pandemic and then a bit of a period of decline
• Quantities, I think, had generally continued to grow, but there had been very substantial price declines
• We're just not clear that that is a policy goal that's worthy enough to justify really the substantial
• With transportation coffers as far as looking at taking a substantial amount of money out for this.

Summary: The Assembly Budget Subcommittee on State Administration heard several budget proposals from CDTFA, the Board of Equalization, and the Franchise Tax Board. The first panel focused on cannabis, hemp, flavored tobacco, and related enforcement. CDTFA requested ongoing funding to implement cannabis tax changes, enforce the new intoxicating hemp restrictions and flavored tobacco seizure authority, and continue compliance work. The department said it is targeting illicit product, protecting licensed businesses, and using referrals from the public and lawmakers to focus inspections. The LAO supported some of the proposals but urged the Legislature to treat them as part of a longer-term enforcement strategy and raised concerns about the use of General Fund support for cannabis enforcement. Public testimony on the cannabis item largely supported stronger enforcement and funding for the legal market. The committee also heard CDTFA’s request to reappropriate funds for an upgrade to the CROS tax collection system, which would improve taxpayer services, security, and software maintenance without adding new money. A separate CDTFA proposal would make all delivery network companies, such as DoorDash and Uber Eats, marketplace facilitators for sales tax purposes. CDTFA said the change would reduce confusion for restaurants and improve compliance, while the LAO questioned whether the proposal functioned more like a tax increase because it would also capture service fees. Members raised affordability concerns, but the proposal was framed by the administration as a parity and compliance measure. The subcommittee then considered a governor’s proposal for a sustainable aviation fuel tax credit. Finance argued the credit would help decarbonize aviation and support in-state production, while the LAO recommended rejection, citing cost, uncertainty about environmental benefits, possible diversion of diesel excise tax revenues from transportation programs, and concerns about consistency with voter-approved transportation funding rules. Testimony from airlines, labor unions, airports, and refinery workers strongly supported the credit, emphasizing union jobs, refinery conversions, and emissions reductions, while fuel retailers and some others warned about fiscal risk and higher fuel prices. The chair and some members expressed support for the proposal despite the funding concerns. Finally, the BOE presented an IT modernization project for state-assessed property administration, saying the current system is outdated and manual and that a new system is needed to improve accuracy, cybersecurity, and workflow efficiency, especially with a likely increase in workload from new VoIP assessments. The LAO asked for more justification for the timing, but BOE said the urgency stems from aging systems and growing workload. BOE also requested modest funding to implement SB 293 changes to intergenerational property transfers and wildfire relief guidance, which the LAO did not oppose. The Franchise Tax Board began its presentation on the final phase of its Enterprise Data to Revenue modernization effort, describing the project’s rollout across audit, collections, legal, and filing enforcement workloads and noting it is now in a warranty period.