Transcript Highlights:

• Welcome to the Joint Legislative Audit and Review Committee. Today is July 15, 2026.
• It's unusual to have a legislative auditor's comment.”
• To provide basic education?
• This brings us to the legislative auditor’s conclusion.”
• This leads us to the legislative auditor’s recommendation.

Summary: The committee met on July 15, 2026, but began without a quorum, so it could not adopt the previous minutes. Chair Jerry Pollett welcomed new member Senator Victoria Hunt and introduced new JLARC staff. The committee then heard a preliminary JLARC performance audit of DCYF’s Juvenile Rehabilitation programs. Auditors said overcrowding, staffing shortages, weak training, unreliable risk assessments, and uneven program access combine to create unsafe conditions and limit rehabilitation. They reported that about 74% of youth are in two large secure facilities, incidents rise as population rises, 47% of frontline staff leave within a year, current assessments are not valid for the population, and program offerings are tied more to facility location than individual need. JLARC made eight recommendations, including one to the legislature to address crowding and seven to DCYF on retention, training, incident procedures, validated assessments, program alignment, individualized programming, and better data. DCYF Secretary Ross Hunter agreed overcrowding is a major problem, said the agency would respond in detail later, and noted the department needs legislative help on staffing, pay, education, and program funding. Senators and representatives asked about JR-25, training adequacy, assessment validation, contraband, education access, and possible retaliation concerns, and JLARC staff and DCYF answered that the issues are interrelated and that a fuller agency response would come later. The committee next heard JLARC’s preliminary audit of Labor and Industries’ enforcement of farm worker labor laws. JLARC concluded that L&I generally meets timelines for health and safety inspections but not for wage-and-hour or retaliation complaints, largely because complaint volume exceeds staff capacity and delays occur before assignment to investigators. Auditors said recent agency changes and 2026 legislation may help, including added staff, screening processes, workload reorganization, the ability to prioritize complaints, a later start date for the 60-day wage complaint clock, and authority to expand some investigations to similarly affected workers. JLARC recommended that L&I report back in December 2026 and December 2027 on backlog reduction and implementation of the new law. L&I’s deputy policy director said the agency appreciates the report, is hiring additional investigators, and expects the new laws to substantially change how wage complaints are handled. Members asked for clarification on what counts as a wage complaint, the share of farm worker complaints, and how the new authority will work. JLARC then provided an update on the Department of Health’s strategic management plan for hospital data reporting, inspections, and complaints. Staff summarized prior recommendations and noted that House Bill 2577 clarified hospital inspection timing. DOH officials described a detailed plan with measurable milestones for improving inspection compliance, verifying accreditation standards, expanding complaint forms into more languages, addressing language-access barriers, and seeking long-term funding for adverse event reporting and financial data reporting. DOH said acute care inspection compliance had risen from 28% to 61% and projected further increases through 2028, while also working on staffing, a new licensing system, and public reporting tools. Committee members praised the specificity of the plan but raised concerns about the long timeline for language access and whether hospitals should do more outreach as part of their community health assessments. After lunch, the committee began the 2026 tax preference performance reviews preliminary report. JLARC staff introduced the first three reviews, starting with the Main Street tax credit and program. Auditors said the preference appears to have met the legislature’s broad goal of increasing Main Street communities and businesses overall, though results vary by community. They reported that Main Street communities grew from 9 in 2005 to 40 in 2025, business counts in those communities rose overall, and donations and tax credits have remained high, with many local businesses donating to support their own downtowns. The committee then moved into the rest of the tax preference review presentation, with additional reports to follow later in the meeting.

Transcript Highlights:

• All of us: educators, legislators, PED, we all are complicit in the model that we have.
• And educators, we will do that.
• I've been in education for 26 years. I've only worked in education.
• Continue to invest in education.
• That's what we hold, because you're an educator, and that's how educators are.

Transcript Highlights:

• This is a great piece of legislation.
• This bill hurts educators like me.
• I am a part of the education system, and I'm also a parent. in our county. education system, and I'm
• I am Mary Rivera, a Republican professional educator of 30...
• I'm a native Floridian and also a third-generation educator.

Committee: Senate Fiscal Policy

Transcript Highlights:

• The board implemented a new continuing education framework to better align license education with public
• , continuing education, and professional ethics for licensure.
• There are educational requirements.
• We strongly believe that the board's educational efforts will result in a reduction of continuing education
• Educational standards are overseen by the National Council of Reflexology Educators.

Transcript Highlights:

• Repeals a Hawaii early childhood education educator special fund.
• <00:02:54.879><c> education</c><00:02:55.720><c> educator</c><00:02:56.360><c> special</c> childhood
• education educator special childhood education educator special fund<00:02:57.879><c> effective</c><00
• of Education reviews the report that you of Education reviews the report that you would<00:13:04.120>
• Education.

Committee: Senate Education

Transcript Highlights:

• The Senate Higher Education Committee meets today at noon. ...so my goal is to complete our higher education-related
• My name is Colin Brock with the Legislative Budget Board, and I will be presenting on the Higher Education
• Or legislation. Yes.
• Since we are a legislative agency, as a general rule, legislative agencies have no enforcement authority
• Is it a legislative...? No, it is not. We're in the legislative branch of government.

Summary: The Senate Finance Committee met to hear interim charges on higher education transparency and on preventing fraud, waste, and abuse in state government. The chair emphasized accountability for taxpayer dollars and asked witnesses to address financial reporting, audit practices, and whether more frequent or comprehensive audits would improve oversight. Legislative Budget Board staff described how public university systems and most community colleges respond to requests about internal audit practices, noting that university systems generally follow a similar annual audit timeline and that community colleges use a more varied mix of internal and external audit arrangements. Members focused on gaps in reporting, especially Texas Southern University’s missing submissions for several years and Collin County Community College’s nonresponse to the LBB survey. The State Auditor’s Office then outlined its higher education audit work, including mandatory statewide single audits, DEI compliance audits, HUB and State Use Program audits, benefits proportional audits, and discretionary audits based on risk. The auditor said the office has released 43 higher-ed audit reports since fiscal year 2021 and has two audits in progress, and explained that internal audit reports from institutions help guide future audit selection. Senators pressed the office on the lack of enforcement authority, the value of internal auditors at each institution, and whether community colleges should have more standardized reporting and audit requirements. The auditor and general counsel said the SAO can refer suspected fraud to law enforcement but cannot itself enforce findings, while several senators suggested stronger clawback authority and more robust internal audit structures. The Texas Higher Education Coordinating Board explained that it collects annual financial reports, sources-and-uses data, and community college finance reports, and uses them for funding formulas and other reporting. It also trains governing board members and said it has limited regulatory authority, though community colleges must certify compliance annually and can lose eligibility for state funds if they do not. Members questioned the reliability of self-attested data, the adequacy of board training, and whether a single reporting structure would be more efficient. During public testimony, a ScholarShot representative argued for clearer, student-facing financial transparency so students can see total cost of attendance and the gap they must cover before enrolling.

Transcript Highlights:

• Now, when you say eliminate the Department of Education, that does not mean eliminate education.
• in education.
• Better education doesn't mean a bigger Department of Education.
• So this legislation will clarify it and consolidate it.
• And so I'm grateful for this type of legislation.

Transcript Highlights:

• Natalie Gonzalez with the Legislative Analyst's Office.
• Jennifer Pichella, Legislative Analyst's Office.
• Natalie Gonzalez with the Legislative Analyst's Office.
• We do that through education.
• For many courses in general education, we hope very soon.

Transcript Highlights:

• Natalie Gonzalez with the Legislative Analyst's Office.
• Jennifer Pichella, Legislative Analyst's Office.
• Natalie Gonzalez with the Legislative Analyst's Office.
• We do that through education.
• I believe, education requirement.

Summary: The Assembly Budget Subcommittee on Education Finance held an oversight hearing on the California State University system covering enrollment, core operations, Title IX/civil rights, and basic needs. The Department of Finance said the Governor’s 2026-27 budget does not change CSU enrollment targets from the prior year and proposes a 5% ongoing General Fund increase for core operations as the final year of the compact. The Legislative Analyst’s Office recommended a lower resident undergraduate enrollment target than the Governor’s proposal, separate funding for enrollment growth rather than folding it into base, a smaller or no base increase tied more closely to inflation, earmarking some base funds for capital renewal, retiring deferred payments, and avoiding new multi-year compact commitments. CSU said enrollment has rebounded for three straight years, but growth is uneven across campuses, with several Northern California campuses still facing structural declines tied to demographics and community college pipelines. CSU described a multi-year reallocation plan shifting about 10,000 FTE and $89 million in ongoing funding toward higher-demand campuses, plus $40 million in one-time support, and said seven campuses submitted turnaround plans aimed at recovering enrollment over the next several years. The system highlighted strategies such as dual enrollment, guaranteed admission pathways with community colleges, outreach to high school students, retention and advising efforts, and new degree models for working adults and military-connected students. Members raised questions about how campus targets are set, whether the May Board of Trustees discussion will address a systemwide enrollment framework, and how CSU will manage future deficits if projected out-year funding does not materialize. On core operations and facilities, CSU said it faces about $320 million in mandatory cost increases in 2026-27 and is pursuing shared services, procurement consolidation, campus administrative sharing, and program redesigns to reduce costs. CSU and the LAO emphasized the system’s large deferred maintenance backlog, estimated at $8.6 billion, and discussed whether CSU’s bond/debt capacity is sufficient to address it; CSU requested up to $1.1 billion for deferred maintenance, while the administration did not propose new funding. The committee also heard CSU’s annual Title IX and civil rights update: CSU said it has implemented 15 of 16 State Auditor recommendations, has dedicated Title IX coordinators at every campus, is using a systemwide case management dashboard, and is piloting centralized investigations at five campuses. Finally, on basic needs, the Governor maintained current funding levels for food assistance/basic needs, rapid rehousing, and mental health. CSU reported heavy use of food pantries, CalFresh support, emergency housing, and counseling services, while warning that federal changes to CalFresh and related funding could make it harder to serve students in need.

Transcript Highlights:

• We have educator. Okay. Overkill on some of these things. We have educator. Okay.
• But some education is better than no education.
• Whatever will make it work so that all students are educated.
• The legislation and the appropriation does not say, well, if you're out of money, the education stops
• The legislation and the appropriation does not say, well, if you're out of money, the education stops

Summary: The Senate conference committee on Senate Bill 2330 met to resolve differences between the Senate and House versions of the bill, which concerns human trafficking and exploitation prevention and awareness education in schools. House members explained their amendments, including adding non-public schools, narrowing some statutory language, removing the appropriation section because funding had been moved into the Attorney General’s budget, and changing the bill’s structure to reduce what they viewed as an overly broad mandate. Senators and House members then debated whether the education should be required for all grades or limited to specific grades, and whether it should be delivered every year or every other year. Testimony from Amy Boyd-Bomey of YouthWorks and Stacey Schaefer of the 31A Project supported focusing the program on grades 6 and 10, with later discussion adding grade 12. They said sixth grade is a key entry point into junior high and social media exposure, tenth grade is important because of dropout risk, and twelfth grade would be the last opportunity to reach students before adulthood. They also said repeating the same material every year could dilute the message, that the curriculum should be thoughtful and trauma-informed, and that “best practices” may be preferable to the bill’s “evidence-based” language because of cost and feasibility. They emphasized that presenters must be prepared for disclosures from students after the training. Committee members also discussed logistics and funding. The witnesses said the Attorney General’s budget line for the program would fund third-party organizations through a grant process, with reporting requirements, and that the proposed amount was based on their cost estimates. Members raised concerns about whether the funding would cover all schools and grades, especially if non-public schools were included. Several members argued against mandating the program in non-public schools at this time, citing uncertainty about related legislation and the need to maximize available funds, while others said private school students also face trafficking risks and should not be excluded. The committee did not take final action on the bill; instead, members agreed to continue working on amendments, including grade levels, annual versus biennial implementation, the “may include” language, the “evidence-based” standard, and the non-public school issue, and to reconvene at a later meeting.

Transcript Highlights:

• And higher education, particularly public higher education, is the best vehicle we know of to match that
• Legislative Analyst's Office. Jennifer Pichella, Legislative Analyst's Office.
• , you know, part of, introduced that legislation.
• And we heard a number of comments from my colleagues as well around career education, workforce education
• And we heard a number of comments from my colleagues as well around career education, workforce education

Summary: The subcommittee heard an overview hearing on the 2026-27 budget and policy issues for California’s three public higher education segments: the Community Colleges, CSU, and UC. Chair David Alvarez emphasized shared responsibility to expand access, right-size campuses to enrollment trends, improve transfer pathways, align programs with workforce needs, and measure success by completion, transfer, and job placement rather than participation alone. The chancellors and president each described their systems’ current enrollment trends, budget priorities, and efforts to collaborate more closely across segments. Chancellor Sonia Christian said community college enrollment has rebounded strongly and asked for 3% enrollment growth funding, more support for the Common Cloud Data Platform, credit for prior learning, AI literacy, and recovery-related workforce training in Los Angeles. She highlighted right-sizing efforts such as Peralta’s proposed consolidation into Oakland City College, and described partnerships with CSU, UC, employers, unions, and housing projects. Chancellor Mildred García said CSU is focusing on CSU Forward, enrollment growth, student success, facilities, and fiscal health monitoring, while reallocating enrollment and resources to higher-demand campuses. She cited intersegmental programs such as nursing pathways, 2+2 and 3-year degree programs, and AI curriculum work, and said the system is also addressing labor and compensation issues. President J.B. Milliken said UC is facing federal funding threats, investigations, and rising costs, but has reached record enrollment of more than 300,000 students, including over 200,000 California resident undergraduates. He supported continued compact funding, said UC is exploring more use of technology, experiential learning, and short-term credentials, and stressed the need to adapt while preserving UC’s research and medical mission. Members pressed all three leaders on common course numbering, transfer outcomes, enrollment reallocation, BSN capacity, deferred maintenance, and the role of the master plan; the leaders generally agreed more collaboration and flexibility are needed, and several committed to follow up with updated data and timelines. No formal votes were taken. Public comment followed, including support from the CSU employees union for the Governor’s budget and full funding of CSU obligations.

Transcript Highlights:

• </c> disengaging from education altogether. disengaging from education altogether.
• </c> educators outside of the school system. educators outside of the school system.
• </c><00:37:50.960><c> Education</c> professional pursuits. Education professional pursuits.
• Educators and school leaders are not legislators, and we are not often in the room where language and
• </c> include this very important education. include this very important education.

Committee: Senate Education Policy

Transcript Highlights:

• And this was based on a piece of legislation that we had passed, correct?
• of Education dep Department of Board of Education dep Department of Education<00:13:46.959><c> 704</
• c> Education 704 Education 704 K3 K3 K3 535<00:13:51.720><c> this</c><00:13:51.880><c> regulation</c>
• </c><00:18:44.480><c> and</c> before the State Board of Education and before the State Board of Education
• </c><00:21:07.720><c> to</c> co-chairs already filed legislation to co-chairs already filed legislation

Summary: The Administrative Regulation Review Subcommittee met on February 10 with a quorum present, approved the minutes, and then reviewed a long agenda of agency regulations, most of which were accompanied by staff-suggested amendments for drafting conformity under KRS Chapter 13A. The Department of Financial Institutions’ 808 KAR 9:10, the Secretary of State’s 030 KAR 2:11, the Office of the Attorney General’s 04 KAR 5:10, the Board of Speech-Language Pathology and Audiology’s emergency 201 KAR 17:120, the Department of Fish and Wildlife Resources’ 301 KAR 2:41, the Department for Environmental Protection’s 401 KAR 47:110 and 48:320, the State Police regulations 502 KAR 1:012 and 1:121, the Department for Public Health’s 902 KAR 4:15, the Department for Medicaid Services’ 907 KAR 1:15, and the Department for Community Based Services’ 921 KAR 1:400 were all discussed and, where applicable, staff amendments were approved without objection. The Workplace Standards emergency regulation 803 KAR 2:320E was also presented without amendment, and the Department of Insurance’s 806 KAR 9:360 was taken up but ultimately deferred at the agency’s request. Several regulations drew brief substantive discussion. The Fish and Wildlife rule on foxhound training enclosures was explained as expanding both commercial and non-commercial provisions for training with dogs involving red fox and coyotes, with enclosure standards intended to protect wildlife inside and outside the facilities. The environmental protection rules were tied to House Bill 478 and addressed permit-by-rule timelines, reporting, and operating standards for certain construction and demolition debris landfills, including sites up to two acres; members asked whether these facilities were private or municipal, and staff said they were a mix, often tied to private demolition contractors or single projects. The State Police fee increase for hazardous materials endorsements was described as reflecting a federal TSA fee change, and the witness estimated the new fee at about $23. The most extended debate concerned the Board of Education’s 704 KAR 3:535 on full-time virtual and remote learning programs. The agency amendment would cap enrollment in such programs at 10% above a district’s prior-year in-person enrollment, while also clarifying accountability, staffing, and monitoring requirements. Education officials said the cap was intended to address concerns about district capacity and student performance, and they cited Cloverport as an example of a district with high virtual participation and participation-rate issues. Members expressed concern that the amendment was too open-ended for regulation and suggested the issue might be better addressed in statute; no motion was made to adopt the agency amendment, so the regulation was left to proceed to the committee of jurisdiction. The Department of Insurance also discussed implementation of Senate Bill 188, saying it had received more than 3,000 complaints since the law took effect and was still working through enforcement and complaint processing before asking to defer its PBM licensing regulation.

Transcript Highlights:

• I serve as a trustee on the Orange County Board of Education.
• We've been discussing legislation that would move the elections for our board.
• And that was when it was only affecting the Orange County Board of Education.
• Occasionally, big money in politics actually... buys legislation.
• But far more often, big money in politics is blocking legislation.

Committee: House Elections

Transcript Highlights:

• , and the Legislative Analyst Office.
• our Educator Preparation Program.
• These would be math, science, special education, and bilingual education.
• and special education folks.
• that includes everyone who works in the field of education, including early childhood education.

Transcript Highlights:

• In my work in higher education at some of the smaller institutions, I don't think it's cheaper to educate
• I'm curious about the education one.
• of institutions of higher education.
• And so that's generated by higher education today.
• Because I think education lifts all.

Committee: Joint Higher Education Funding Review Committee

Transcript Highlights:

• And then thirdly, legislative priority.
• tribal higher education and North Dakota K-12 education by requiring a partnership with at least one
• The tribal higher education and North Dakota K-12 education by requiring a partnership with at least
• I'm just trying to figure out this is an education issue. It's higher education, it's dual credit.
• I'm just trying to figure out, this is an education issue. It's higher education, it's dual credit.

Committee: Joint Higher Education Funding Review Committee

Transcript Highlights:

• The committee report is adopted. to legislate. Are you ready for the to legislate.
• </c> that it is inexpedient to legislate. that it is inexpedient to legislate.
• </c><04:40:29.280><c> Chair</c> legislator House Bill 142. Chair legislator House Bill 142.
• Majority of the committee on legislative legislative legislative administration<04:47:21.760><c> which
• that it is inexpedient to legislate. that it is inexpedient to legislate.

Transcript Highlights:

• So I've had to spend education money to defend this in court.
• Educators, we talk, are working under extraordinary pressure.
• I only bring this as an example because educators in those...
• Educators work with families every day because educators share the same goal: student success.
• educational ones.

Committee: Senate Senate Education Committee of Reference

Summary: The Committee on Education approved the minutes from February 18 and March 4, 2026, then took up several bills. HCR 2003, the “Protect Girls in Sports in Arizona Act,” drew extensive testimony. Supporters, including Superintendent Tom Horne, argued it would protect fairness, safety, and privacy in girls’ sports and locker rooms by requiring teams to be designated male, female, or co-ed and by limiting access to sex-designated private spaces. Opponents, including ACLU and transgender advocates, said the measure was discriminatory, would function as a bathroom ban, and could force schools to police students’ bodies and identities. The committee voted 4-3 to give HCR 2003 a due pass recommendation. The committee then advanced HB 2020, which lowers certain student threats or disruptions at educational institutions from a Class 6 felony to a Class 1 misdemeanor, and HB 2032, which changes the statewide testing window so assessments begin later in the spring and scores are returned later, with supporters saying it would better reflect a full year of instruction. HB 2033, allowing school districts or charter schools to choose paper-and-pencil administration of statewide assessments by governing board vote, also received support from educators who said it would reduce technology barriers for younger students. HB 2318, as amended, would impose term limits on school district governing board members after eight consecutive years; school board groups opposed it as harmful to rural districts, but the committee adopted an amendment and gave the bill a due pass recommendation. The committee also approved HB 2378, which changes eligibility rules for School Facilities Oversight Board members who are architects or engineers so their businesses may not include school construction. HB 2313, which prohibits teacher strikes or organized work stoppages and ties funding penalties to districts or charters that violate the ban, advanced despite testimony that it duplicates existing law and could chill educators’ speech and worsen staffing shortages. Finally, HB 2249, a major expansion of the Parents’ Bill of Rights, passed after heated testimony. Supporters said it would prevent schools from socially transitioning minors without written parental consent and stop staff from encouraging children to hide information from parents; opponents warned it was vague, punitive, and would expose teachers and schools to massive liability and litigation. The committee adopted amendments on HB 2318 and HB 2249 and reported all of the listed bills out with due pass recommendations, with recorded split votes on several measures.

Transcript Highlights:

• Currently without this legislation, legislation, legislation, &gt;&gt; it's<01:15:39.600><c> got</c><
• </c> opportunity as education for education. opportunity as education for education.
• in</c><03:24:08.880><c> the</c> legislation is good legislation in the legislation is good legislation
• approving proper educational expenses. education.
• </c><03:37:30.720><c> in</c> education to our educational system in education to our educational system