Transcript Highlights:

• immediately to qualified nonprofit affordable housing organizations rather than sitting vacant after construction
• immediately to qualified nonprofit affordable housing organizations rather than sitting vacant after construction
• This no-cost legislation is a smart fix, adding additional options to promote construction of affordable
• This no-cost legislation is a smart fix to adding additional options to promote construction of affordable
• AB 714, Fong, commercial driving license training, do pass out on an A roll call.

Committee: House Appropriations

Transcript Highlights:

• We’ve been contacted by both commercial and public television stations.
• <01:00:21.680><c> and</c><01:00:21.920><c> public</c><01:00:22.280><c> television</c> commercial and
• public television commercial and public television stations<01:00:23.720><c> we've</c><01:00:24.359><
• Within the construction industry, the reason that we need to map aggregates is because if a county or
• </c> production of con of construction production of con of construction Aggregates<01:55:00.000><c>

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• Once a nuclear facility is deemed to be commercially operational, that sales tax exemption would end
• File 2426: A bill for an act relating to sufficient English language proficiency requirements for commercial
• by the Committee on Ways and Means, a bill for an act exempting sales and use tax incurred for construction
• A bill for an act exempting sales and use tax incurred for construction of residential water trail systems

Summary: The House took up a series of bills on a wide range of topics, including artificial intelligence safeguards, health and human services district realignment, motor vehicle salvage titles, driver citizenship verification, nuclear energy tax incentives, commercial driver English proficiency, Gold Star status on licenses, mining regulation, workforce and apprenticeship programs, and judicial review of agency action. Members also introduced several appropriations and Ways and Means bills, and one introduction recognized an 11-year-old guest visiting the chamber for her birthday. Several measures were amended before passage. Senate File 2417, dealing with conversational AI services, was amended to conform to the Senate version and passed 95-0. House File 2707, which renames behavioral health districts and realigns aging services, passed 94-1 after an amendment extending review intervals and adding implementation safeguards. House File 777 on salvage titles passed 95-0 after concurrence with a Senate amendment, and Senate File 2187 on citizenship verification for driver’s licenses passed 86-7 after an effective-date amendment and debate over REAL ID-related impacts. The chamber also passed House File 2757 creating a sales tax exemption for nuclear facility commissioning or recommissioning, House File 2761 adding Gold Star status to driver’s licenses and IDs, House File 2765 regulating mining and subsidence repair, Senate File 2168 on workforce development and apprenticeship funding, and Senate File 2039 on intervention in judicial review of agency action. Senate File 2426, requiring English proficiency for commercial drivers, passed 73-22. On Senate File 2218, the House insisted on its amended position, sending the bill to conference committee. The House then transmitted several bills to the Senate, withdrew House File 2507 after SF 2417 passed, and adjourned until the next day.

Transcript Highlights:

• Yeah, we wanted to clarify in the closing that this does apply to newly constructed and not the existing
• Oakland continues to face challenging circumstances, high commercial vacancies, and uneven recovery from
• The goal is to make sure that we have flexibility to fill these vacancies, to create commercial activity
• I'm happy that this bill, SB 830, would enable the construction of a new medical center in Emeryville
• At the heart of the project, Sutter will be constructing a new hospital to replace the services currently

Summary: The committee first established a quorum, adopted the consent calendar for SB 423 and SB 581, and then heard a series of bills, most of which were presented as streamlining or safety measures tied to transportation, climate, public lands, health care, and higher education. SB 71 by Senator Wiener would extend and expand a CEQA exemption for sustainable transportation projects, adding modes such as microtransit, paratransit, shuttles, and ferries, while also accepting committee amendments that narrowed a Tier 4 diesel rail provision, restored existing right-of-way language with utility protections, and set a new sunset date. Support came from transit agencies, local governments, and advocacy groups; some members raised concerns about the diesel rail language and possible interactions with housing-related legislation, but the bill advanced on a due pass vote as amended. The committee then heard SB 614 by Senator Stern on carbon dioxide pipeline safety. The bill would direct the State Fire Marshal to adopt safety standards for intrastate CO2 pipelines, building from federal draft rules and adding state discretion and possible enhanced protections such as planning zones and more detailed exposure modeling. Supporters argued California needs to fill a federal regulatory gap to advance carbon capture and climate goals, while environmental justice and conservation groups opposed unless amended, citing risks from CO2 leaks and asking for stronger siting restrictions and more specificity. The bill passed on a due pass vote to Appropriations, with members noting the need for continued work on the safety provisions. Senator Arreguín also presented SB 304, which would temporarily lift public trust use restrictions on specific land at Jack London Square to allow the Port of Oakland more leasing flexibility under conditions and annual reporting. The measure was described as a limited, time-bound effort to address high vacancy and revitalize the waterfront, and it drew support from Oakland city and county representatives with no opposition in the room. The committee then approved SB 304 on a due pass vote. Arreguín’s SB 830 followed, creating CEQA streamlining for Sutter Health’s new Emeryville hospital campus and designating the City of Emeryville as lead agency; supporters said it would preserve East Bay hospital access before seismic deadlines, and the bill passed with broad support and no opposition. Finally, Senator Caballero presented SB 486, a higher education planning bill intended to align UC and CSU enrollment growth with regional sustainable communities plans and to remove the need to analyze a no-project alternative in certain long-range development plans. Supporters said the bill would better integrate university enrollment forecasting into regional planning, while opponents warned that eliminating the no-project analysis could weaken accountability for housing and infrastructure impacts around campuses. Committee members expressed mixed views and asked for further clarification, but the bill was moved out on a due pass as amended vote to Appropriations. The transcript then shifted to SB 629, a fire response and rebuilding bill, with the author describing amendments to apply fire safety requirements in wildfire-burned areas, update fire mapping, and require annual defensible space inspections, though the discussion was cut off before any final action was shown.

Transcript Highlights:

• Yeah, we wanted to clarify in the closing that this does apply to newly constructed and not the existing
• Yeah, we wanted to clarify in the closing that this does apply to, to this does apply to newly constructed
• Oakland continues to face challenging circumstances, high commercial vacancies, and uneven recovery from
• The goal is to make sure that we have flexibility to fill these vacancies, to create commercial activity
• I'm happy that this bill, SB 830, would enable the construction of a new medical center in Emeryville

Committee: House Natural Resources

Summary: The Assembly Natural Resources Committee met with a quorum established after a brief delay and first adopted two consent items, SB 423 and SB 581. The committee then heard SB 71, which extends and expands an existing CEQA exemption for sustainable transportation projects, including transit, bike, pedestrian, microtransit, paratransit, ferry, and shuttle projects. The author and supporters said the exemption has sped delivery of climate-friendly projects statewide; some members raised concerns about the bill’s Tier 4 diesel rail provisions and right-of-way language, but the bill was passed out as amended to Appropriations. The committee next heard SB 614 on carbon dioxide pipeline safety. The bill would direct the State Fire Marshal to establish safety standards for intrastate CO2 pipelines, using federal draft rules as a starting point while allowing California to add stronger protections. Supporters argued the state must act because federal rulemaking has stalled, while environmental justice groups opposed the bill unless amended, citing siting risks, leak hazards, and the need for more specific setback and planning-zone protections. The bill advanced on a due-pass vote to Appropriations. Members also approved SB 304, a district bill to temporarily lift public trust use restrictions for a portion of Jack London Square in Oakland so the Port can lease the land for broader uses under State Lands Commission oversight and annual reporting. Supporters said the measure would help address high vacancy and revitalize the waterfront; the bill passed with no opposition. The committee then heard SB 830, which creates a CEQA streamlining process for Sutter Health’s new Emeryville hospital campus to replace services lost with the closure of Alta Bates in Berkeley; supporters emphasized access to care, seismic deadlines, and job creation, and the bill passed out as amended to the Judiciary Committee. Finally, the committee took up SB 486, a higher-education planning bill that would require UC and CSU enrollment to be incorporated into regional sustainable communities plans and would limit certain CEQA no-project alternative analyses for campus long-range plans; supporters said it would better align university growth with housing and transportation planning, while opponents warned it could weaken accountability for student housing impacts. The bill was left open for further work and then advanced as amended to Appropriations.

Transcript Highlights:

• Everybody benefits from that: our citizens, which are taxed at 19% on their real estate, and the commercial
• for them to determine what our levy is going to be, they send back, based on the CPI and the new construction
• Guess what that tax went up on those commercial businesses on Main Street? It went up.
• to determine what our levy is going to be, they send back based on the CPI and it costs the new construction
• Guess what that tax went up on those commercial businesses on Main Street? It went up.

Committee: House Rules - Legislative

Summary: The Missouri House Legislative Rules Committee held a hearing on House Bill 2243, sponsored by Rep. Bryant-Wolfen, which would repeal a 2021 provision that exempted certain manufacturing and mining-related industries from local sales tax. The sponsor argued the change unintentionally stripped counties of revenue they had already approved through local votes, shifting the burden onto ordinary Missourians and leaving local governments without a replacement source of funding. Committee members questioned whether the bill would amount to a tax increase, whether a referendum or local voter approval should be required, and whether the measure could discourage investment or job growth. The sponsor said the bill simply restores local taxing authority and noted the fiscal note showed roughly $35 million in local revenue at stake statewide. Testimony in support came from local officials from Iron County, Adair County, and St. Genevieve County, including commissioners, a sheriff, and a 911 board official. They said the exemption reduced revenue for roads, ambulance service, law enforcement, and 911 operations, forcing service cuts and higher local levies. Iron County witnesses said the loss hit a county dependent on mining and reduced ambulance coverage and sheriff funding; Adair County officials said the exemption affected expected revenue from a large solar project and other energy infrastructure; St. Genevieve County officials cited sharp monthly declines in sales tax receipts and said inflation made the loss even more severe. Supporters emphasized that these were locally approved taxes and that the affected companies still benefit from county services. Opposition came from Associated Industries of Missouri, which argued the original exemption was part of Missouri’s effort to comply with the U.S. Supreme Court’s Wayfair decision and keep tax rules uniform for out-of-state sellers. The group warned that removing the exemption could make Missouri’s tax system less simple and potentially jeopardize local use-tax collections statewide, with a much larger possible revenue loss if the law were challenged. The committee chair said the hearing would continue with a hard stop for floor business, and at the end of testimony he indicated he planned to take executive action on the bill later in the week. No vote was taken during the hearing.

Transcript Highlights:

• The bill also exempts silt and sediment discharges permitted by a construction stormwater general permit
• Electron Dam put artificial turf contaminating crumb rubber from tires into our riverbed as part of a construction
• standards that are set to go into effect in 2028 will limit the products that we can use in our commercial
• standards that are set to go into effect in 2028 will limit the products that we can use in our commercial
• This indicates that compliance is technically feasible and commercially available.

Committee: House Environment & Energy

Transcript Highlights:

• The bill also exempts silt and sediment discharges permitted by a construction stormwater general permit
• Dam put artificial turf contaminating crumb rubber from tires into our ...riverbed as part of a construction
• standards that are set to go into effect in 2028 will limit the products that we can use in our commercial
• standards that are set to go into effect in 2028 will limit the products that we can use in our commercial
• This indicates that compliance is technically feasible and commercially available.

Summary: The committee heard testimony on two main bills. ESSB 5975 dealt with lead limits in cookware and a proposed striker that would shift more of the standard-setting and testing process to the Department of Ecology under Safer Products for Washington. Supporters, including industry groups, Ecology, the Department of Health, and environmental advocates, said the striker would provide clearer, science-based, and more workable standards while still reducing lead exposure. Some witnesses, including environmental groups, argued the bill should remain stronger, while others said the striker was an acceptable compromise. No vote was taken on the bill during the hearing. The committee also heard extensive testimony on ESSB 5360, which would create tiered criminal penalties for violations of the Water Pollution Control Act, Clean Air Act, and Hazardous Waste Management Act, including felony penalties for knowing or negligent conduct in certain circumstances. The prime sponsor and Attorney General’s Office said the bill targets egregious polluters, adds whistleblower and worker protections, and responds to serious environmental harm cases. Tribal, environmental, and advocacy witnesses supported the bill as a way to hold repeat polluters accountable. Labor, business, industry, county, utility, and forestry representatives opposed it, warning that the language could expose workers and permit holders to criminal liability for mistakes or routine operations and that the bill needed more stakeholder work. At the end of the meeting, the committee took executive action on Substitute Senate Bill 6269, which updates the Motor Fuel Quality Act by modernizing the definition of motor fuel and folding alternative fuels into that definition. The bill passed the committee on a 19-0 vote, with two members excused, and was reported out with a do-pass recommendation.

Transcript Highlights:

• The local permitting process allows fire and building officials to review proposed structures, construction
• we do as a state when we allow, say, could you imagine one of these in a zone, an area zoned for commercial
• buildings sitting next to previously zoned commercial area so it wouldn't have incompatible uses, and
• Trust, which is a joint powers authority, and the intention for the trust was to fund planning and construction
• Hercules is doing a lot to build up commercial and residential development, so hopefully someday it will

Summary: The Senate Committee on Local Government heard six bills. SB 828 by Senator Cabaldon would require fireworks license applicants to disclose storage locations and prove they have local permits, with the state fire marshal notifying local agencies when permits are denied or revoked. Supporters, including fire chiefs and fire marshals, said it would close dangerous enforcement gaps exposed by recent fireworks explosions; there was no opposition, and the bill passed 7-0 to Appropriations. SB 799 by Senator Allen would make technical and governance changes to the South Bay Regional Housing Trust, including more flexibility on board leadership and allowing non-elected alternates under certain conditions. Supporters said the changes would help the new housing trust function more effectively; questions focused on accountability for non-elected alternates, and the bill passed 6-0 to the Senate Floor. SB 762 by Senator Arreguín would authorize the city of Hercules to ask voters to approve up to a 1% sales tax increase to fund local services and infrastructure. Supporters said Hercules has limited revenue options, while some senators cautioned about how such measures are presented to voters; the bill passed 5-2 to the Senate Floor. SB 722 by Senator Wahab would add protections for mobile home residents from displacement tied to transit-oriented development and redevelopment, with supporters describing it as an urgent cleanup to protect vulnerable seniors, veterans, and low-income residents. There was broad support and no opposition, and it passed 7-0 to Appropriations. SB 222 by Senator Wiener would streamline permitting for heat pump water heaters and HVAC systems, with supporters arguing it would reduce costs and speed electrification, and opponents raising concerns about local control, fees, liability, and HOA authority. After extended debate, it passed 4-1 to Appropriations. SB 677 by Senator Wiener would make technical clarifications to SB 79’s transit-oriented housing provisions; local government groups opposed or opposed unless amended, warning it could expand SB 79’s scope, but the bill passed 5-2 to Appropriations.

Transcript Highlights:

• guess I have concerns about it sounds like there are no provisions of which this buy now pay later construct
• guess I have concerns about it sounds like there are no provisions of which this buy now pay later construct
• We're a commercial business. We're a commercial business.
• , collect from the customer, without having to incur 9, 10, 25% interest rates you might see on commercial

Committee: House Consumer Protection & Business

Transcript Highlights:

• We have commercial districts for that. And on the flip side, that's how I make my living.
• I lease space to commercial clients.
• Just so they don't have to do a sprinkler system and all these different things. that come with a commercial
• So those are going to be kind of a separate building construction method. Thank you.
• But just what the standards are as far as 2x4 construction, that kind of material.

Bills: HB303 , HB 1107 , HB 1063 , HB1517 , HB1991 , HB2464 , HB3509 , HB3527 , HB303

Committee: House Intergovernmental Affairs

Keywords: municipality, local government, Type A, Type B, Type C, change authority, emergency medical services, civil service status, municipal government, public safety, local government code, school funding, education, state budget, local control, equity, tenant legal services, eviction, low-income tenants, disability rights

Transcript Highlights:

• a smaller group of people having to pay the full amount when it comes to the increased cost of construction
• We'd already be in construction for our regional plant.
• of Public Utility Council, which is intended to represent the interests of residential and small commercial
• advocate in those proceedings. to act in their best interest as far as small residential and small commercial
• Consumers and small commercial consumers.

Bills: HB29 , HB685 , HB1633 , HB1689 , HB1690 , HB1918 , HB2010 , HB2500 , HB2608 , HB2626 , HB29

Committee: House Natural Resources

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• Yeah, SBA—on their 504 program, in which we would do the construction loan and the 504 would take us
• In this case, it's for-profit and non-profit commercial building owners that have a public benefit, so
• The whole idea behind this is just to reduce overall energy consumption in these commercial buildings
• Anything from affordable housing to commercial.
• They'll ask for capital outlay, but we're also talking about building commercial space labs.

Committee: House New Mexico Finance Authority Oversight Committee

Transcript Highlights:

• Commercial applications would be four times a year.
• One of the things that is required in the state for new construction of on-site systems is a 24-inch
• One of the things that is required in the state for new construction of on-site systems is a 24-inch
• Is it simply reimbursement for existing tanks or are there impediments in new construction?
• So in some areas there are requirements for new construction. So you saw that in the Springs B-MAP.

Committee: Senate Environment and Natural Resources

Summary: The committee began with a presentation from the Florida On-Site Wastewater Association on advanced onsite wastewater treatment systems. Roxanne Groover described several technologies used in Florida, including NSF-245 systems, performance-based treatment systems, in-ground nitrogen-reducing biofilters, membrane/media filters, and sequencing batch reactors. She emphasized that these systems can substantially reduce nitrogen compared with conventional septic systems, discussed permitting and maintenance requirements, and noted that some grant programs help fund upgrades in springs and other impaired-water areas. Members asked about phosphorus and PFAS treatment, funding for non-springs watersheds, incentives for new construction, and whether more data should be collected on system performance. The committee then took up CS for SB 164 on vessel ownership, derelict vessels, and anchoring/mooring rules. The bill was explained as clarifying who is responsible for derelict vessels and using vessel title as prima facie evidence of ownership. Two amendments were adopted: one requiring FWC to offer an electronic long-term anchoring permit system and clarifying that the permit does not override other anchoring limits, and a technical amendment correcting a drafting error. Public testimony included opposition from a cruiser advocacy representative who argued the bill would unfairly restrict responsible boaters and harm the marine economy, and support from another boating coalition representative who said the bill was a proactive step to address derelict vessels. The committee then passed CS/SB 164 favorably by roll call. Finally, the committee considered SB 38, which makes clarifying changes to FWC trust funds. The bill would allow investment and carryover of the administrative trust fund balance, expand use of the Florida Panther Research and Management Trust Fund for feline disease research, monitoring, and habitat acquisition, and allow use of the Non-Game Wildlife Trust Fund for law enforcement and related coordination agreements. With no debate or opposition, the committee passed SB 38 favorably by roll call and then adjourned.

Transcript Highlights:

• The cashier at your grocery store, the home health aide taking care of your parent, the construction
• to earn a national industry certification in programs and in skills that range everywhere from construction
• Do you know if the information that will be provided and constructed by the Department of Health will
• The bill requires that commercial motor vehicle drivers in Florida must be lawfully present.
• It provides that language in the bill regarding the definitions of commercial and industrial use are

Transcript Highlights:

• Members, Senate Bill 706 preempts the naming of major commercial service airports to the state.
• Senate Bill 706, it preempts the naming of major commercial service airports to the state.
• and execution of an agreement between Palm Beach County and the trademark holder authorizing the commercial
• The bill excludes farms and farm operations from the definition of commercial use.
• It gives communities more control to limit data center construction.

Summary: The committee took up a long agenda of retained bills and several new measures, with most receiving favorable reports after amendments. Major debate centered on CS/SB 706, which preempts airport naming to the state and designates Palm Beach International Airport as the Donald J. Trump International Airport subject to FAA and trademark-related conditions. Senator Jones offered amendments to avoid private royalty benefits, but both failed. Senators Berman, Osgood, Jones, and Pizzo spoke against the bill, raising concerns about naming an airport after a sitting president, lack of local input, and ethical issues; Senator Mayfield defended the bill as cost-free to the airport and noted the naming agreement. The committee ultimately voted the bill favorably. The committee also approved CS/SB 546 on conservation land notice requirements and CS/SB 1014 on municipal utility service to properties outside city limits, both with amendments and some opposition from the Florida League of Cities on the utility bill. Several other bills were heard and reported favorably with little controversy. CS/SB 1500 would streamline uncontested probate proceedings; SB 962 would exclude farms and farm operations from certain zoning definitions tied to affordable housing preemption; CS/SB 820 would strengthen reporting for problem-solving courts; SB 840 would revise portions of last year’s hurricane-related land-use law to narrow its scope and sunset temporary restrictions; and SB 856 would require online property listings to show estimated ad valorem taxes, with an amendment excluding social media platforms and broadening liability protections. SB 110 would clarify homestead exemption eligibility for 98-year or longer residential leases. SB 394 would exempt certain underwriting managers handling limited facultative reinsurance from licensure requirements, and SB 434 would prevent wind-hardening improvements from increasing assessed value for residential property tax purposes. The committee also advanced several public-safety and transparency measures. CS/CS/SB 658 and 608, a combined water-safety bill, would require safety features for rental properties with pools or nearby water bodies and authorize DBPR enforcement; supporters framed it as a response to Florida’s high child-drowning rates, and Airbnb waived in support. SB 748 would place constitutional language on restoration of voting rights on sentencing score sheets, with broad support from voting-rights and civil-rights groups. CS/SB 824 would require annual reporting of unimproved school-district land inventories, and CS/SB 848 would create a framework for off-site stormwater treatment and related credits, with support from builders and mitigation bankers. The committee also heard CS/SB 1036 on school counselors, which clarifies certification requirements and performance criteria after a delete-all amendment.

Transcript Highlights:

• All I see are opposition statements, but I don't see any constructive recommendations.
• ... ...commercial use.
• Judy Yee with the State Building and Construction Trades Council in support. Thank you.
• Judy Yee with the State Building and Construction Traves Council in support. Thank you.
• The second question is as it relates to the use of AI to construct more complicated Public Records Act

Committee: House Privacy and Consumer Protection

Transcript Highlights:

• Sales tax is a 6% levy, unless you're talking about commercial leases or business rent tax, which is
• consider tourists that come to the state as part of our Florida Economic Conference, as well as construction
• Florida Economic Conference, as well as construction and housing construction permits, housing expenditures
• So that would be construction and auto sales and tourism.
• So that would be construction and auto sales and tourism.

Committee: Senate Finance and Tax

Summary: The Senate Committee on Finance and Tax convened with a quorum present, heard an introductory presentation of committee staff, and then received a staff briefing from Azar Khan on Florida’s state tax structure and revenue outlook. The presentation covered fiscal year 2023-2024 revenues, noting more than $127 billion in total state revenue, with general revenue exceeding $48 billion and sales and use tax making up the largest share. It also compared Florida’s tax burden to other states, highlighted Florida’s low per-capita revenue ranking and strong business formation numbers, and reviewed major and minor revenue sources, tax rates, and the revenue estimating conference process. Members asked about what drives revenue growth, including population, tourism, construction, and auto sales, and about Florida’s regressivity, corporate income tax participation, and investment earnings on state balances. Khan said the state’s revenue picture remains positive and stable, but that future growth is slower than during the COVID-era spike; he also explained that some negative forecast changes were tied to legislative actions such as the insurance premium tax credit, while others reflected lower tobacco consumption and severance activity. He noted that revenue and spending forecasts are separate and that budget-side growth is driving concerns raised in other state economic projections. The committee also discussed possible tax package ideas for the upcoming session, including tax holidays and homeowner relief, but no specific proposals were acted on. The chair announced the committee would not meet the following week and that the next meeting would be in week three of February. The meeting concluded with no objections to a motion to adjourn.

Transcript Highlights:

• </c> So one move is to shift commercially So one move is to shift commercially covered<01:04:19.640><
• Avoid commercial<01:05:10.280><c> populations</c><01:05:10.880><c> altogether</c> commercial populations
• </c><01:05:14.240><c> business</c> the risk of shifting commercial business the risk of shifting commercial
• </c><01:49:43.520><c> to</c> joining that network constructive to joining that network constructive to
• So, I think keep in mind when you think about commercial shift, we're focused on the commercial population

Transcript Highlights:

• To begin construction, homeowners must qualify for both a short-term construction loan and the long-term
• To begin construction, homeowners must qualify for both a short-term construction loan and the long-term
• only for the period of construction.
• They just need that to begin construction.
• His commercials say brought forward 2,000 units of affordable housing in his commercial.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.