Transcript Highlights:

• They're trying to engineer out inefficiencies. And they start talking amongst each other.
• they're also saying, but I know that I'm competing in my own corporate structure for... ...out inefficiencies

Bills: HB2537 , HB2245 , HB2296

Committee: House Environment & Energy

Keywords: emissions, climate commitment act, environmental regulation, trade regulation, facility compliance, consumer-owned utilities, clean energy, port districts, market customers, energy transformation, distributed energy, renewable energy, energy resources, sustainability, energy policy

Transcript Highlights:

• They're trying to engineer out inefficiencies. And they start talking amongst each other.
• And they start thinking about, I don't know... ...out inefficiencies.

Summary: The Environment and Energy Committee heard testimony on House Bill 2537, which would change how energy-intensive, trade-exposed facilities (EITEs) are treated under the Climate Commitment Act. Committee staff and the bill sponsor explained that the measure would require Ecology to update its post-2034 report to include proposed allowance-reduction methods, leakage-risk adjustments, and consignment recommendations, and would add new reporting and decarbonization-planning requirements for EITEs to continue receiving no-cost allowances. The committee also briefly took up House Bill 2245, a separate Clean Energy Transformation Act bill, and later voted the proposed substitute out of committee on an 11-8 vote with 2 excused, after debate over exemptions for certain utilities and market customers. Supporters of HB 2537, including The Nature Conservancy, NRDC, Washington Conservation Action, Climate Solutions, Clean and Prosperous Washington, Ecology, and some utility representatives, said the bill would provide needed clarity, better data, and a path for long-term industrial decarbonization while helping prevent emissions leakage. They argued that EITEs receive substantial public value through free allowances and should be required to document emissions sources, energy needs, and feasible reduction pathways so the state can design a post-2035 policy consistent with climate goals. Ecology said it generally supports the bill, though it recommended streamlining duplicative reporting and noted the work would require significant agency resources not included in the governor’s budget. Opponents, including the Association of Washington Business, the Northwest Pulp and Paper Association, the Association of Western Pulp and Paperworkers, WISPA, the Alliance of Western Energy Consumers, Food Northwest, Simplot, Kaiser Aluminum, and Newcor Steel, warned that the bill could increase compliance burdens, expose sensitive business information, and worsen leakage risks by making Washington less competitive. They said many facilities have already made major investments and face high capital costs, limited clean electricity supply, permitting delays, and technologies that are not yet commercially viable at scale. Several speakers pointed to recent plant closures and job losses in pulp and paper, food processing, and metals as evidence that leakage is already occurring, and urged the committee to preserve flexibility, protect confidentiality, and consider targeted funding or other incentives rather than new mandates alone.

Transcript Highlights:

• A legislative package that we designed to address inefficiencies and level the playing field for all
• efficient process doubling the number of hearings, it seems like it would slow down the process and be inefficient

Bills: HB148 , HB203 , HB360 , HB552 , HB 1244 , HB 1284 , HB1533 , HJR30 , HB148 , HB203 , HJR30

Committee: House S/C on Property Tax Appraisals

Keywords: residential property, ad valorem tax, leasing, property appraisal, fair market rent, housing affordability, appraised value, tax limitation, housing market, affordable housing, leased residential real property, rent control, Texas Tax Code, property tax, residential leasing, homestead, tax code, appraisal review board, real estate sales, property tax relief

Transcript Highlights:

• government previously can very efficiently identify areas of obsolescence, areas of waste, areas of inefficiency
• look at systems, personnel, staffing, funding, and regulations to identify potential areas of inefficiency

Committee: Senate Commerce, Science, and Transportation Committee

Keywords: transportation, air traffic control, safety regulations, Boeing 737 MAX, Department of Transportation, infrastructure funding, public safety, legislative oversight

Summary: The committee meeting addressed several pressing issues concerning transportation, particularly focusing on the need for improved safety standards and efficient management at the Department of Transportation. Specific discussions revolved around air traffic control, with members highlighting the urgency for a significant upgrade in systems and personnel. Notably, concerns were raised regarding past practices, especially the handling of safety regulations during the Boeing 737 MAX incidents. The committee expressed a clear intent to ensure rigorous safety oversight moving forward, emphasizing that the health and safety of the public must remain the top priority in all legislative and funding decisions.

Transcript Highlights:

• commission's strengths and deficiencies and ensure that the office can recommend ways to address inefficiencies

Summary: The committee heard several energy-related bills, with the chair announcing AB 2200 would be taken on consent. AB 353, by Assembly Member Boerner Horvath, would convert the CPUC’s internal audit office into an Inspector General office to improve transparency and oversight; it drew support from some local and consumer groups and opposition from the California Water Association. AB 706, by Assembly Member Aguiar-Curry, would create a fund to support projects that use forest biomass from wildfire mitigation efforts, with broad support from forestry, labor, local government, and energy groups, and opposition from environmental organizations that argued biomass electricity is costly and polluting. Members asked about the bill’s transparency and ratepayer impacts, and the author said she would work with opponents. Assembly Member Rogers presented AB 1761, which would increase transparency around the PCIA “exit fee” charged to community choice aggregators and other load-serving entities. Supporters said the bill would help CCAs forecast rates and audit calculations, while Southern California Edison and San Diego Gas & Electric opposed it, citing market-sensitive data concerns and CPUC oversight. Rogers also presented AB 2369, aimed at improving transmission planning for energy-only projects in rural areas by allowing the CPUC to begin planning before a project is formally proposed; it drew support and no opposition at the hearing, with members noting the need to break the “chicken-and-egg” problem in transmission development. Assembly Member Pacheco presented AB 2124, the Ratepayer Protection Act, which would require the California Council on Science and Technology to evaluate the cost and efficacy of proposed legislative mandates affecting utility bills before committee votes. Utilities and labor supported the bill as a way to inform lawmakers about rate impacts, while members questioned the analysis process and timing. Assembly Member Schultz presented AB 1787, which would require investor-owned utilities to offer dynamic electricity rates to customers after smart meter upgrades, with supporters saying it could lower bills and improve grid use; utilities opposed parts of the bill over cybersecurity and cost-shift concerns, though some CCAs moved to neutral after amendments. Finally, Assembly Member Zbur presented AB 2383, a data center rate bill intended to ensure new large loads pay their fair share and do not shift costs to other ratepayers; supporters included labor and oversight groups, while opponents said the bill still lacked key protections on clean energy procurement, transmission costs, demand response, and treatment of existing data centers. The committee also heard AB 2493, by Assembly Member Cardenas Norris, which would impose deadlines, audits, remedial action, and return-on-equity consequences to speed grid interconnection work; clean energy and environmental groups supported it, while utilities opposed it as duplicative and costly, though they said they were willing to keep working on amendments.

Transcript Highlights:

• of all, the way you describe, your company has been sued with that wide net first, that's a very inefficient
• That's a very inefficient way of doing business. That doesn't make sense to me.
• I do think it's a very inefficient way for people to go after a contractor for the type of issue, but

Committees: House Commerce , House Commerce, Consumer Protection, Energy and the Environment

Transcript Highlights:

• be taxed multiple times by multiple countries as well as by states, which can lead firms to make inefficient
• It's inefficient because it encourages all this paper shifting. Massive multinational corporations.
• It's inefficient because it encourages all this paper shifting to get profits abroad.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the Water’s Edge election versus worldwide combined reporting. Chairs opened by framing the issue as a review of whether current rules fairly and sufficiently tax foreign subsidiary income, given profit shifting concerns, budget pressures, and the long history since Water’s Edge was adopted in the 1980s. The first panel from the Legislative Analyst’s Office and Franchise Tax Board explained the mechanics of unitary taxation, apportionment, and the Water’s Edge election, and provided filing data showing Water’s Edge filers are a small share of returns but account for a large share of corporate tax liability. FTB witnesses said the agency already administers both methods and could handle a shift to mandatory worldwide reporting with education and outreach, though revenue estimates are difficult because foreign affiliate information is not directly available. Committee members asked about foreign government pushback, administrative burden, industries with more profit shifting, revenue uncertainty, and whether companies would leave California. LAO and FTB witnesses said pushback from foreign governments was plausible, but they did not expect major business flight because California’s tax is largely based on sales rather than physical presence. They also said worldwide reporting could reduce profit shifting but might increase revenue volatility and litigation risk. A second panel of academic and tax policy witnesses argued that Water’s Edge is a loophole that rewards aggressive tax planning, that worldwide combined reporting would better capture income tied to California, and that modern federal and international rules such as NCTI/GILTI, CAMT, and Pillar Two reduce compliance concerns and make a return to worldwide reporting more feasible. They also said California’s current system can create selection effects and may under-tax large multinationals. In the next panel, a California Budget and Policy Center witness urged eliminating the Water’s Edge election, calling it a costly loophole that benefits large global corporations over smaller domestic businesses and deprives the state of billions in revenue that could support health care and other services. A Silicon Valley Leadership Group witness gave historical context for why Water’s Edge was adopted and began outlining concerns about compliance, double taxation, and the risk of overreaching beyond income truly connected to California. No bill was voted on or advanced; the hearing was informational only, with members using the testimony to weigh the policy trade-offs and possible transition periods if the Legislature were to change the current rules.

Transcript Highlights:

• be taxed multiple times by multiple countries as well as by states, which can lead firms to make inefficient
• It's inefficient because it encourages all this paper shifting, things massive multinational corporations
• , it's inefficient because it encourages all this paper shifting to get profits abroad.

Transcript Highlights:

• be taxed multiple times by multiple countries as well as by states, which can lead firms to make inefficient
• It's inefficient because it encourages all this paper shifting of things.
• It's inefficient because it encourages all this paper shifting to get profits abroad.

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• anniversary, happy birthday to us, we are six years old today”—and that it had been creating a lot of inefficiencies
• There has been some confusion about the process, and it has become very clunky and inefficient.
• There has been some confusion about the process, and it has become very clunky and really inefficient

Committee: Senate Children and Family Law

Transcript Highlights:

• We found our Medicaid program across the board is riddled with inefficiencies and flawed processes, is
• </c><00:11:17.200><c> and</c> board is riddled with inefficiencies and board is riddled with inefficiencies
• Finding number six, inefficient transparency in the Medicaid spending performance.
• Finding number six, inefficient transparency in the Medicaid spending performance.
• Finding number six, inefficient transparency in the Medicaid spending performance.

Transcript Highlights:

• subcommittee to take a deep dive into the budget to find places where we are wasting money, using it inefficiently

Summary: The Justice Budget Subcommittee met to consider the fiscal year 2025-26 budget recommendations, a proposed committee bill on judicial positions, and one member bill. The chair framed the budget as part of a broader effort to slow spending growth and reduce recurring expenditures, noting the subcommittee’s proposed $7.3 billion budget is $366 million below the prior year. Major budget items included funding for the Department of Corrections to address staffing, maintenance, health services, security equipment, and facility needs; the Department of Juvenile Justice for residential beds, maintenance, the Broward detention facility replacement design, medical services, and Florida Scholars Academy costs; FDLE for the Fort Myers regional operations center and sexual offender/predator registration workload; and the state courts and justice administration entities for judges, due process resources, security, and staffing. The budget also reduced 1,280 vacant positions and $139.2 million in excess funding and authority. The committee then heard PCB-JUB-25-01, which implements part of the Florida Supreme Court’s certification of judicial need. The bill establishes 17 additional circuit court judges and 12 additional county court judges, with about $13.9 million in general revenue and 72 associated positions. In response to a question about why the two certified 6th District Court of Appeal judges were not included, the chair said the committee did not think it was the right time to add judges to a brand-new court still operating from leased space. The PCB was reported favorably on a 14-0 vote. Finally, the committee heard HB 1351 by Representative Baker, which revises sex offender and predator registration rules by clarifying resident categories, creating an in-state travel residence definition, allowing online or in-person reporting for certain temporary residence changes, removing duplicative reporting requirements, clarifying vehicle and employment reporting, and requiring local law enforcement to verify addresses more frequently for registrants not on supervision. FDLE and Smart Justice indicated support, and the bill passed unanimously, 14-0. The committee then adjourned.

Transcript Highlights:

• This inefficiency largely explains why RA resources achieved a 23%...
• This inefficiency largely explains why RA resources achieved a 23% reserve margin in September 2025,

Committee: Senate Energy, Utilities and Communications

Summary: The committee heard several energy, telecommunications, and regulatory bills. SB 929 by Senator Jones would require the California Energy Commission chair to appear annually and report to the Legislature on the commission’s activities, plans, and outreach; it was presented as a low-cost oversight measure and drew no opposition. SB 1138 by Senator Padilla would let load-serving entities trade hourly resource adequacy obligations under the CPUC’s slice-of-day framework to reduce overprocurement and lower ratepayer costs; supporters said it could save tens of millions of dollars, while questions focused on reliability and whether savings would reach customers. SB 913 by Senator Becker would create a clearer pathway for customer-sited distributed energy resources, such as home batteries and smart thermostats, to participate in resource adequacy markets; supporters said it would unlock existing clean capacity and reduce costs, and members asked about reliability, opt-in participation, and compensation for homeowners. The committee also heard SB 1197 by Senator Niello, which would move California to permanent standard time if federal law allows, with testimony from a sleep medicine physician supporting the health and safety benefits of ending the time switch and opposition from golf industry representatives who urged a broader analysis of economic, recreational, and public safety impacts. Members debated whether the 2018 voter approval required another vote and whether Congress would need to act. SB 1265 by Senator Richardson would codify and expand the Go Green financing program by creating a new fund and allowing broader partnerships beyond current IOU service areas; supporters said it would expand access to clean energy financing statewide. SB 1337 by Senator Richardson would create a working group to coordinate fuel transition policy and refinery-related issues following SB 237, with supporters emphasizing the need for better interagency coordination and some members asking how it would avoid duplicative work. The committee also considered SB 1191 by Senator Ochoa Bogh, which would extend the California High-Cost Fund A and B programs for rural telephone service through 2033; supporters said the surcharge-funded program is essential for affordable service and emergency connectivity in remote areas. After discussion, the committee adopted amendments where offered and voted all of the bills out of committee, generally on unanimous or near-unanimous votes, with SB 1265 receiving one no vote. Several bills were held on call briefly and then later passed when the committee reconvened, and the hearing adjourned after all listed measures were reported out.

Transcript Highlights:

• This inefficiency largely explains why RA resources achieved a 23%...
• This inefficiency largely explains why RA resources achieved a 23% reserve margin in September 2025,

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• When verification systems are inefficient, eligible people And that's why we're involved in this bill
• When verification systems are inefficient, eligible people can lose health care or food assistance, not

Committee: Senate Labor, Public Employment and Retirement

Transcript Highlights:

• That imbalance uses resources inefficiently.
• as much attention as high-risk, lower-quality institutions, and that imbalance uses resources inefficiently

Summary: The joint Sunset Review Oversight Hearing focused on the Bureau for Private Postsecondary Education (BPPE) and its reauthorization, operations, enforcement, fiscal condition, and student protections. Committee leaders and DCA officials praised the Bureau’s recent improvements in data systems, licensing, inspections, and enforcement, while noting the Bureau’s role has become more important as federal higher education oversight weakens. Bureau Chief Deborah Cochran said the agency has met its inspection mandate for the first time since the law was enacted, increased citations and disciplinary actions, reduced pending complaints, and used data tools to identify risk and monitor institutions more effectively. A major portion of the hearing centered on student harm, especially school closures, transcript access, predatory recruiting, and the Student Tuition Recovery Fund (STRF). Members asked how the Bureau protects students when schools close, whether bad actors can reopen under new entities, and whether enforcement tools are strong enough. Cochran said the Bureau can cite, fine, place schools on probation, revoke licenses, and order refunds, but it is seeking new authority to deny approval to operators who previously closed schools improperly or failed to refund students. She also said the Bureau is tracking ownership data and is concerned about institutions targeting immigrant and visa students. On STRF, Cochran explained that the fund is currently healthy, assessments are at zero because the balance is above the statutory target, and the Bureau paid about 1,100 claims totaling roughly $17 million over the last four years. Several members questioned the fairness of the assessment structure and discussed alternatives such as surety bonds, but the Bureau said STRF is working well and no change is needed at this time. Fee increases and the Bureau’s structural deficit were another major topic. Cochran said the Bureau reduced costs by eliminating positions, streamlining inspections, improving data analysis, and shifting some student-relief costs to STRF, but that legislative action is still needed to address the deficit. She said the proposed fees were based on workload analyses and that application fees generally match service costs, while annual fees are designed to cover most of the Bureau’s revenue needs. Some members and stakeholders criticized the proposed increases as too high, especially for out-of-state registration and campus fees, while others argued the Bureau needs sufficient resources to regulate effectively. Public commenters from private schools, Northeastern University, San Joaquin Valley College/Carrington College, and TICAS generally supported the Bureau’s mission and reauthorization, but urged changes such as risk-based oversight, better transcript protections, stronger limits on repeated provisional approvals, and more targeted fee and STRF reforms. No votes were taken, and the hearing ended with no formal action beyond discussion and receipt of testimony.

Transcript Highlights:

• As much attention as high-risk, lower-quality institutions, and that imbalance uses resources inefficiently
• as much attention as high-risk, lower-quality institutions, and that imbalance uses resources inefficiently

Transcript Highlights:

• Chief among our critiques is the inefficient-by-design operations of corporate insurers, which typically
• have a rate of administrative waste that is 15% higher Chief among our critiques is the inefficient-by-design

Summary: The committee held public hearings on House Bill 2261, which would require health care providers to wear badges showing name, credential, and relevant degrees, require similar disclosure in advertising, and restrict use of the title “physician surgeon” to certain physicians and osteopathic physicians. Supporters, including the Washington State Medical Association and patient advocates, said the bill would improve transparency and informed consent. Opponents from nurse, naturopathic, and adult family home groups argued it was overly broad, burdensome, confusing, and could harm access to care or residential home settings; several also said existing disciplinary laws already address misrepresentation. No vote was taken on HB 2261 during the hearing. The committee also heard House Bill 2283, which would raise the medical loss ratio for fully insured individual, small group, and large group health plans to 90 percent. Supporters, including small business, patient, and physician groups, said the bill would push more premium dollars toward patient care and lower costs or increase rebates. Insurers and the Office of the Insurance Commissioner warned it could destabilize the market, reduce flexibility for administrative services, and lead to carrier exits, though OIC said it was working on amendments. The bill was not voted on in the hearing. House Bill 2425, an agency-request bill on nurse delegation, would broaden what tasks registered nurses may delegate, remove some setting and training restrictions, expand emergency medication authority, and adjust liability and retaliation protections. The Board of Nursing, long-term care providers, and skilled nursing/assisted living representatives supported the bill as a modernization that could ease workforce shortages and improve care access, while the Washington State Association for Justice opposed the immunity provisions and raised patient safety concerns. The hearing ended without a vote on HB 2425. In executive session, the committee advanced several bills. HB 2110, with an amendment clarifying ambulance staffing and RN scope, passed 18-0 with one excused. HB 2113 passed 18-0 with one excused. HB 2122, as amended to require hospitals to offer flu vaccines with several flexibility and critical-access-hospital exemptions, passed 15-3 with one excused. HB 2152, as amended to require certain facilities to allow medical cannabis use for qualifying terminal patients and to add related exemptions and protections, passed 17-1 with one excused. The meeting then adjourned.

Transcript Highlights:

• Second, inefficient indirect cost coverage.
• Second, inefficient indirect cost coverage.

Summary: The joint Senate and Assembly select committee hearing focused on the challenges facing California nonprofits in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance, the impact of federal funding disruptions and tax policy changes, and the need for stronger public-private partnerships, especially in disaster response and recovery. Witnesses from community foundations, food banks, Cal OES, long-term recovery groups, CalNonprofits, and nonprofit finance organizations described funding uncertainty, delayed reimbursements, reduced indirect cost coverage, staffing strain, and the effects of climate disasters and immigration-related fear on service delivery. Testimony highlighted several policy ideas, including advance payments for state grants and contracts, prompt payment standards, sustainable indirect cost rates, contract flexibility in emergencies, streamlined registration and reporting, and a possible new Office of Nonprofit Empowerment to serve as a central point of contact and coordination within state government. Speakers also described how nonprofits and VOAD networks support wildfire response and long-term recovery, but noted that recovery groups often lack stable operating funding even when they are recognized as best practice. A food bank leader described federal food aid cuts and disruptions to deliveries, while other witnesses stressed that nonprofits are increasingly forced to use reserves, loans, or service reductions to manage cash flow gaps. Committee members generally expressed support for the sector and asked how the state could better partner with nonprofits during both disasters and budget crises. Several members raised the possibility of incremental steps if full legislative changes are not immediately feasible, and witnesses suggested pilots, better sharing of best practices, and stronger state leadership on payment timelines. Public commenters echoed the need for better contracting practices, support for community-based organizations, and attention to nonprofit worker compensation and protections. No formal votes or committee actions were taken in the hearing, which concluded with adjournment.

Transcript Highlights:

• Second, inefficient indirect cost coverage.
• Second, inefficient indirect cost coverage.

Summary: The joint Senate and Assembly Select Committee hearing focused on the nonprofit sector’s mounting challenges in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance in California, the impact of federal funding disruptions and new federal tax policy, and the need for stronger public-private coordination, especially during disasters. Witnesses and members repeatedly pointed to nonprofits as essential providers of food, housing, health, education, environmental, and emergency services, while warning that sudden funding losses are forcing layoffs, service cuts, and operational instability. Testimony from community foundations and food bank leaders described how federal cuts, delayed reimbursements, and disaster-related demand are straining nonprofits. Monica White of Food Share Ventura County said H.R. 1 and USDA food cancellations are worsening hunger needs, while immigration enforcement fears are keeping some families from seeking help. Abby Browning of Cal OES outlined how the state coordinates with nonprofits, philanthropy, and businesses through VOADs and long-term recovery groups in wildfire response. Bruce Yerman of the Camp Fire Collaborative said recovery groups are effective but lack dedicated funding, and urged flexible spending, sustainable support, and streamlined partnerships. The second half of the hearing focused on institutional reforms, including a proposed Office of Nonprofit Empowerment, advance payments, prompt payment, and higher indirect cost coverage. Jeff Green of CalNonprofits argued for a central state office to coordinate policy, technical assistance, and interagency alignment. Annie Chang of Nonprofit Finance Fund cited survey data showing widespread late payments, low cash reserves, and indirect cost rates below federal guidance. Alfredo Cruz Jr. of Community Resource Project described how reimbursement-only contracts, delayed payments, and underfunded overhead create cash-flow crises and staffing problems. Members discussed possible interim steps, including expanding advance pay, improving payment timeliness, modeling best practices, and using state leadership to spotlight nonprofit needs. The hearing ended with public comment from nonprofit, labor, and advocacy representatives, and no votes or formal actions were taken.