Transcript Highlights:

• And those last 30 credits or 30 hours are, they're not taking classes that are applicable to a CPA licensure
• And those last 30 credits or 30 hours are, they're not taking classes that are applicable to a CPA licensure
• And those last 30 credits or 30 hours are, they're not taking classes that are applicable to a CPA licensure
• And those last 30 credits or 30 hours are, they're not taking classes that are applicable to a CPA licensure
• 15.360><c> are</c> um they're not taking classes that are um they're not taking classes that are applicable

Bills: HF1458 , HF2063 , HF2164 , HF1377 , HF927 , HF1059 , HF1910 , HF2232

Committee: House State Government Finance and Policy

Transcript Highlights:

• So would this bill reject companies' applications for Florida economic development incentives?
• So is it prospective for new..."
• And then finally, we talked about whether this would be a prospective measure or not.
• And senators, next up, we're going to go to tab 6, which is SB 1722 on application stores.
• SB 1722 on application stores by Senator Kalada-Yud.

Bills: S0198 , S0422 , S1236 , S1356 , S1456 , S1722

Committee: Senate Commerce and Tourism

Summary: The committee first postponed SB 1456, then heard SB 1236, which would condition state economic development incentives on employers using secret-ballot union elections and prohibit neutrality agreements. The sponsor argued the bill protects workers from coercion and applies only to companies receiving taxpayer-funded incentives; opponents said it was government interference, likely to hurt contractors, apprenticeships, and business growth, and raised concerns about federal preemption and Attorney General enforcement. After debate, the committee reported SB 1236 favorably on a recorded vote. The committee then considered CS/SB 198, a measure to regulate cryptocurrency kiosks by requiring operator registration, fraud warnings, transaction limits, blockchain analytics, receipts, and refund protections for certain first-time transactions tied to fraud. Supporters from the banking industry, AARP, and others said the bill would help stop scams that are targeting seniors and vulnerable adults; one industry witness supported the bill but suggested narrowing the limits for existing users and shortening the new-customer period. The committee reported the bill favorably. Next, the committee took up CS/SB 1356 on dog breeding, pet sales, and breeder registration. The sponsor said the bill is intended to curb puppy mills, improve animal welfare, and add consumer protections, while an amendment removed state oversight of local animal shelters. Pet store representatives supported much of the bill but objected to the three-day waiting period for financed purchases, expanded reimbursement, and unfair trade practice penalties; others argued the bill would add red tape and litigation. The committee adopted the amendment and then reported the bill favorably. The committee also heard SB 1722 on app stores and minors, which would require age verification, parental consent for minors, app-content disclosures, and enforcement by the Department of Legal Affairs. Supporters said the bill would help parents protect children online; opponents warned it could force collection of sensitive personal data, create privacy and constitutional problems, and duplicate existing parental tools. Members debated the balance between child safety and privacy, and the committee reported the bill favorably. Finally, the committee heard CS/SB 422 on ADS-B aviation data, which would bar use of ADS-B information to calculate certain landing or access fees; an amendment added departures to the restriction. Pilots supported the bill as a safety and privacy measure, while airport representatives opposed it as undermining airport finances and shifting costs. The amendment was adopted, and the hearing on the bill began with testimony from both sides.

Transcript Highlights:

• On page 3, line 40, after current, insert 'or prospective.' Following termination of employment.
• It narrows it in the sense that it applies only to those customers, clients, prospects with which an
• client, where there is that personal nexus, ...that even with a prospective client, where there is that
• I think it's applicable here.
• If sent, must vacate, or, if applicable, comply. Senator Gaynor. Thank you, Mr. President.

Bills: SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2340 , HB2464 , HB2619 , HB1376 , HB1796 , HB2091 , HB2249 , HB2254 , HB2353 , HB2431 , HB2441 , SB5808 , SB5949 , HB2124 , HB1069 , HB2104 , HB2624 , SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2464 , HB2619 , HB1376 , HB1796 , HB2091 , HB2249 , HB2353 , HB2431 , SB5808 , SB5949 , HB2124 , HB2104 , HB2624 , HB2510 , HB1347 , HB1759 , HB1983 , HB2120 , HB2264 , HB2338 , HB2385 , HB2436 , HB2495 , HB2521 , HB2604 , HB2610 , HB2675

Keywords: tourism, self-supported assessment, funding, statewide promotion, economic development, sewage, grinder pumps, residential buildings, regulation, construction, vehicle registration, enforcement, renewal, transportation, state law, state commission, infrastructure, traffic safety, responsibilities, state capital projects

Transcript Highlights:

• Transparency in adoption-related expenses has also raised concerns among prospective adoptive parents
• No state appropriations whatsoever, and it requires grant applications to match funds dollar for dollar
• Applicants must demonstrate the ability to, one, conduct and finance and FDA-compliant drug development
• A selection committee of experts and stakeholders appointed by HHSC will evaluate applications and report
• Because the applications of Ibogaine around addiction have been known for 60 years.

Bills: SB128 , SB640 , SB672 , SB904 , SB1141 , SB1263 , SB1525 , SB1528 , SB2041 , SB2306 , SB2308 , SB2357 , SB2446 , SB2695 , SB2857 , SB2891 , SB2583

Committee: Senate Health & Human Services

Transcript Highlights:

• It is the plan of the governor's office to move to a prospective payment model and payment on enrollment
• Prospective pay, I think with some of the defend the spin and some other things, Prospective pay, I think
• And so I think on prospective pay, that's something. Government asking for additional information.
• Prospective pay, we'll see where we are with the federal government.
• I don't know that it would be applicable, but I don't think we did put it in there, but we could look

Committee: House Budget

Transcript Highlights:

• We're really trying to figure out how those who are going to go behind the meter, prospectively, how
• These Requirements were only applicable for large loads that that were defined as 75 Eggwarts and up
• This will require all net metering arrangements prospective. between an existing generator and a large
• If you had applications for the same project may be in it three or four other. other locations, maybe

Committee: Senate Business & Commerce

Transcript Highlights:

• </c> determination and the applicable determination and the applicable mitigations<00:37:27.280><c> that
• That would still be applicable.
• </c><00:53:36.160><c> it</c> um that would still be applicable it um that would still be applicable it
• James Nelson in support. applications Vice chair for the applications Vice chair for the testimony<01
• </c> proposed amendment to add as applicable proposed amendment to add as applicable after<01:47:27.880

Committee: House Housing

Summary: The Housing Committee heard testimony on several housing-related bills. On SB 26, SD 2, relating to affordable housing, the Office of Planning and Sustainable Development explained a prior transit-oriented development study that identified roughly 59,000 possible units and about 25,000 affordable units from known projects, and said the bill would help fill gaps by evaluating additional public lands for housing suitability and possible co-use with existing facilities. Members asked about the need for resources and staffing to do that work, and OPSD said it would need time and consultant support to carry it out. Testimony on the bill included support from state and county housing agencies and comments from planning and land use entities. On SB 66, SD 2, relating to housing and historic preservation review, SHPD and OHA both testified. SHPD said the bill would not override existing burial-site protections and that county staff with proper qualifications could make historic-property determinations locally, while OHA asked for clearer language requiring consultation when Native Hawaiian historic sites are involved and clearer procedures if an adverse effect is found. Committee members and SHPD discussed whether the bill should explicitly preserve existing Chapter 6E processes, whether counties have qualified staff, and how quickly a county would have to decide if it cannot complete the review itself and must use a third-party reviewer. Supporters said the measure could speed permitting and keep decisions local; one opponent argued it could rush approvals and strain infrastructure. The committee also heard support from housing, construction, business, and food-industry groups, and opposition from some preservation and community advocates. The committee then heard SB 332, SD 1, on foreclosure-related protections, with testimony focused on Lānaʻi and concerns about speculative real estate after the foreclosure moratorium ended. SB 414, SD 2, on restoring access to disaster-affected areas, drew support from HHFDC, DHS, and the Maui Chamber; HHFDC noted DOH plans for a temporary paved access road to the Kayola temporary housing site and said agencies were discussing which parcels would be needed. On SB 102, SD 2, relating to affordable housing and third-party historic review, SHPD said it would need to do more upfront screening and that the bill’s timelines and third-party provisions should be clearer; OHA said the measure should include a sunset and better staffing, and asked that the department fill positions to meet review demand. No votes or final committee actions were reported in the transcript.

Transcript Highlights:

• ... ...if the application subsequently complies with the government's comprehensive plan and applicable
• It prohibits a jurisdiction from charging an applicant for third-party review of submittal materials
• ... ...requires cities and counties planning under the GMA to approve land use applications that use
• current permit-ready plans published by L&I, allows cities and counties to review the applications for
• It expands the types of requirements to which step housing may be subject to to include those applicable

Bills: SB6015 , SB6069 , SB6096 , SB6200 , SB6201 , SB6214 , SB6237 , SGA9280 , SGA9281

Committee: Senate Housing

Keywords: residential building, construction permits, housing development, planning efficiency, state regulations, affordable housing, homelessness, homeless shelter, emergency shelter, emergency housing, supportive housing, permanent supportive housing, transitional housing, low-income housing, very low-income, extremely low-income, housing crisis, land use, zoning, local preemption

Transcript Highlights:

• In May, we were then faced with $97 million in reductions at the trial court level and the prospect of
• The trial court level and the prospect of up to 7.95% reductions for other parts of the judicial branch
• More than 1,000 applications. Nineteen courts are currently participating.
• More than 1,000 applications have been received from interested candidates. 126 candidates are in the
• program currently, and the application cycle opens again this month.

Summary: The California Legislature met in joint convention for the annual State of the Judiciary address, with judges and justices from across the state in attendance along with Governor Newsom and other statewide officials. The opening included prayer and the Pledge of Allegiance, followed by the formal introduction of Chief Justice Patricia Guerrero and the California Supreme Court justices. Speakers emphasized the importance of judicial independence, the courts’ role in protecting rights and democracy, and the value of collaboration between the legislative and judicial branches. Chief Justice Guerrero focused on the state of the judicial branch, beginning with budget pressures from prior cuts and noting partial restoration in the governor’s proposed budget, while urging continued stable funding for courts, court-appointed counsel, and judgeships in high-need counties. She highlighted the expansion and benefits of remote proceedings, ongoing judicial vacancies, workload growth, and efforts to improve data collection and case-weighting. She also discussed implementation of the CARE Act, the court interpreter workforce pilot, CASA and kin-first child welfare efforts, courthouse security and facilities projects, and the judiciary’s work on generative AI guardrails. A major portion of the address addressed the recent problems with the California bar exam and broader State Bar oversight. Guerrero said the court would pursue remedies for examinees harmed by the failures and would strengthen admissions oversight, including the role of the Committee of Bar Examiners. She also reiterated support for pro bono legal services and discussed immigration-related courthouse access, citing state laws limiting cooperation with federal immigration enforcement in courthouses. The convention concluded after remarks thanking the judiciary and Legislature, and the joint session adjourned without any recorded votes or formal legislative action.

Transcript Highlights:

• due to a lot of the new requirements on grant applications.
• So do you predict that there's a number of grant applications?
• So do you predict that there's a vast number of grant applicants?
• Requirements on grant applications.
• And the bill, of course, is prospective. So the bill is not going to reach back.

Bills: S0048

Committee: Senate Appropriations Committee on Transportation, Tourism, and Economic Development

Summary: The Appropriations Committee on Transportation, Tourism, and Economic Development heard presentations on the Governor’s recommended budget for fiscal year 2026-27 and then considered one bill, CS/SB 48 on accessory dwelling units (ADUs). The Governor’s office outlined a $117.4 billion overall budget, with transportation and economic development receiving about $18 billion statewide and $601 million in general revenue. Agency heads then presented priorities for Commerce, Highway Safety and Motor Vehicles, Military Affairs, State, Transportation, Emergency Management, and the Florida State Guard, emphasizing workforce development, housing, tourism marketing, aviation and space infrastructure, law enforcement recruitment, emergency preparedness, and military readiness. In the Commerce presentation, Secretary Kelly highlighted funding for housing programs, the Hometown Heroes program, the Florida Job Growth Grant Fund, rural infrastructure and workforce grants, Reconnect and Florida WINS systems, law enforcement and firefighter recruitment bonuses, defense support, Visit Florida, Space Florida, and SelectFlorida. Senators asked about Visit Florida’s private match requirements and whether the agency fully leveraged prior appropriations; Visit Florida’s CEO said the match was met and exceeded, though it is difficult but important. The Highway Safety and Motor Vehicles presentation focused on trooper pay, pursuit vehicles, aviation assets, and enterprise data systems, with questions about immigration enforcement and body cameras. Military Affairs requested funding for readiness centers, training facilities, education and health benefits for Guardsmen, and maintenance of existing armories; members discussed Guard deployments, staffing levels, and a proposed firing range project. The Department of State requested funds for automated election audits, a conservation lab, and historic preservation, and defended its arts grant process and rule changes. Transportation’s budget emphasized a $14.3 billion work program, road and bridge maintenance, aviation and aerospace, safety initiatives, and seaport investments, while Emergency Management requested funding for preparedness, flood mitigation, WebEOC, grants management, and alert systems; senators also asked about the Alligator Alcatraz detention facility. For CS/SB 48, Senator Gates explained that the bill would require local governments to allow property owners to voluntarily create ADUs, while preserving local authority over setbacks, construction, and permitting. An amendment removed reusable tenant screening reports and clarified that conforming ADUs would be allowed by right without a separate hearing. The Florida Restaurant and Lodging Association supported the bill, saying ADUs could help provide long-term housing for service workers. After questions about local government and HOA authority, the committee adopted the amendment and then reported CS/SB 48 favorably by roll call vote.

Transcript Highlights:

• Our testimony outlines five different islands with multiple prospective sites.
• And our multiple prospective sites.
• </c> like to pursue with the prospective like to pursue with the prospective appropriation<01:03:07.200
• There can be an application for an expedited process.
• an application for an expedited<01:24:51.600><c> process.

Bills: HB1924 , HB2121 , HB1928 , HB1979 , HB1650 , HB1543 , HB1981 , HB1982

Committee: House Energy & Environmental Protection

Summary: The committee heard testimony on several measures related to waste, recycling, and environmental review. On HB 1924, which would establish a mattress stewardship program, the Department of Health said it stood on written testimony and offered comments, while Hawaii Reef and Ocean Coalition and one individual supported the bill and the International Sleep Products Association opposed it. No questions were raised and the committee moved on. A large portion of the hearing focused on HB 2121, which would prohibit the sale of disposable vapes in Hawaii. The Department of Health supported the measure but suggested the bill may be better placed in a different part of state law because the cited waste-management section regulates products after consumption, while still praising the effort to remove disposable vapes from the market and environment. Testimony in strong support came from the Coalition for Tobacco Free Hawaii Youth Council, Hawaii Public Health Institute, Hawaii COPD Coalition, Hawaii Health and Harm Reduction Center, the City and County of Honolulu, and many individuals; supporters emphasized youth vaping, toxic waste, lithium battery fire risks, and environmental harm. There was at least one opposing individual and the International Sleep Products Association was listed in opposition. The committee noted there were many written testimonies and no immediate vote was taken. The committee also heard HB 1928 on the deposit beverage container recycling program. The Department of Health stood on written testimony. The Solid Waste Task Force of Hawaii Environmental Change Agents and Upstream supported the bill but urged amendments to better integrate reuse and reusables, strengthen enforcement, clarify definitions, and protect existing redemption centers. The Hawaii Food Industry Association supported the concept of a backdrop program but preferred strengthening the existing program and raised concerns about undefined fees, existing infrastructure, and future audit costs. The Chamber of Commerce Hawaii supported the bill, and the chair said the measure needs work and that decision-making would occur in a few days. Finally, the committee took up HB 979 on environmental review and HB 1650 on environmental assessments. For HB 979, OPSD offered amendments, HCDA supported the bill but suggested clarifying the affordable-housing definition, Kauai Island Utility Cooperative supported it, and Earthjustice was asked about the court process for environmental challenges; the chair asked about shortening the challenge period and the relationship between environmental court, the intermediate court of appeals, and the Supreme Court. For HB 1650, OPSD and the State Historic Preservation Division stood on written testimony, OHA asked to retain historic sites, and several groups and individuals testified in support or opposition. Opponents argued that removing Wiki special district and historic sites from Chapter 343 trigger language would weaken environmental review and risk impacts to iwi kūpuna and historic resources.

Transcript Highlights:

• teachers, but also with prospective teachers' stipends.
• teachers, but also with prospective teachers' stipends.
• teachers, but also with prospective teachers' stipends.
• teachers, but also with prospective teachers' stipends.
• teachers, but also with prospective teachers' stipends.

Committee: Senate Education

Transcript Highlights:

• Constitutionally applicable any sort of practical guidance that we can take back to our law?
• Do Massachusetts statutes generally grant prospectively or retroactively?
• Generally grant prospectively or retroactively? In your opinion, what does that mean here?
• This is about the practical application of what we have seen from the state auditor, including an audit
• That the court will, in all likelihood, say, is not a solid. done prospectively that the court will in

Summary: The subcommittee hearing focused on whether the Office of the State Auditor may constitutionally audit the Massachusetts Legislature under Chapter 250 of the Acts of 2024 and what such an audit could include under generally accepted government auditing standards. Chair Cindy Friedman opened by explaining the background: voters approved Ballot Question 1 in November 2024, the law took effect in January 2025, and the Auditor then initiated audits of both chambers. The chair said the subcommittee was seeking expert testimony because the proposed audit scope, constitutionality, and possible bias concerns remained unresolved. Public testimony was invited, but no members of the public pre-registered; written testimony remained open for a short period after the hearing. The hearing then proceeded with invited experts on constitutional law/state government and auditing-related issues. Professor Lawrence Friedman testified that the ballot initiative’s approval by the Attorney General and by voters did not resolve constitutional questions, and he argued Chapter 250 violates the Massachusetts Constitution. He said the Legislature has constitutional authority to set its own rules and manage its proceedings, and that an executive-branch audit would intrude on legislative deliberation, speech and debate protections, and separation of powers. He also warned that even audits of supposedly administrative matters could become a vehicle for repeated document demands and litigation that would indirectly burden legislative functioning. In questioning, senators pressed him on the line between administrative and deliberative functions, the role of the Attorney General versus the courts, the possibility of retroactive audit scope, and whether prior legislative consent to audits mattered; he said prior consent would not bind future legislatures and that constitutionality is ultimately for the courts. Professor Ray La Raja also opposed the audit, framing it as a threat to institutional independence and representative democracy. He argued that allowing an executive-branch official to audit the Legislature without consent would upset separation of powers, chill internal debate, and create a precedent for broader executive intrusion. He said voters often support “transparency” reforms without fully appreciating institutional consequences, and that legislatures should defend their autonomy, especially amid what he described as broader executive overreach nationally. Senators asked about chilling effects, the practical distinction between administrative and core legislative functions, and whether the courts or the Legislature should resolve the issue; he said the courts would ultimately adjudicate disputes, but the Legislature should not waive its constitutional authority lightly. Jean Kempthorne took the opposite view, arguing the audit is permissible and should proceed. She said the state auditor is a constitutional officer accountable directly to the people, that the audit power can be expanded by statute, and that separation of powers does not require watertight compartments. She contended the audit would not displace core legislative powers because the auditor can only evaluate operations, report findings, and make recommendations. She also argued the Legislature itself already conducts audits of other branches, so it is inconsistent to claim an audit of the Legislature is unconstitutional. In response to senators’ questions, she said there are guardrails against truly intrusive requests, but that the administrative-versus-legislative distinction is not a workable bright line; she suggested disputes should be handled case by case, with objections, negotiation, or litigation if specific requests go too far. No votes or formal actions were taken at the hearing.

Transcript Highlights:

• It reinforces ministerial approval and clear timelines to provide certainty for applicants.
• It reinforces ministerial approval and clear timelines to provide certainty for applicants.
• For prospective homeowners, this leaves a choice between a family actually having a chance to own a home
• So for prospective homeowners, let's leave a choice between a family. or losing money.
• So for prospective homeowners, this leave a choice between a family actually have a chance to own a home

Committee: Senate Housing

Transcript Highlights:

• support to prospective and current students.
• We saw increases in the financial aid FAFSA applications.
• and CADAA applications.
• We saw increases to the financial aid, the FAFSA applications.
• and CADA applications.

Transcript Highlights:

• To the contrary, most of these platforms allow prospective customers to simply check a box and self-certify
• We will amend the bill to ensure that it's drafted for our mobile applications or digital platforms that
• </c> drafted to for our mobile applications drafted to for our mobile applications or<00:55:38.640><c
• <00:55:54.520><c> and</c><00:55:54.720><c> licenses</c><00:55:55.440><c> confidential</c> applicants
• and licenses confidential applicants and licenses confidential only<00:55:56.640><c> to</c><00:55:56.799

Committee: House Economic Development & Technology

Summary: The House Committee on Economic Development and Technology heard testimony on several measures, including HB 671 on Native Hawaiian data tabulation, HB 639 on AI chatbot disclosures and consumer protection, HB 1391 on a proposed Hawaii/Irish trade commission, HB 1361, HB 1384 on an AI advisory council, HB 1292, and HB 1308 on online sports wagering. Testimony on HB 671 focused on clarifying how Native Hawaiian categories should be defined for data purposes, with Eugene Tian noting Census data can tabulate Native Hawaiians alone but not those in combination with other races without special tabulation. HB 639 drew support from DCCA’s Office of Consumer Protection, which said the bill should advance but may need amendments to align with existing consumer protection law and preserve OCP enforcement authority. HB 1384 received support from ETS, which said an AI advisory council would help establish governance and standards for state AI use. HB 1391 drew comments in support from DBEDT and one testifier who urged a broader U.S./Hawaii/EU framing rather than a bill focused on Ireland. HB 1361 was heard with no testimony in the excerpt, and HB 1292 received support from the Hawaii Community Development Authority and opposition from HGA, which warned the measure could open the door to privatizing or outsourcing government services. HB 1308 drew extensive testimony both for and against, with supporters arguing legalized online sports betting could generate revenue for education, housing, health care, child care, and problem gambling treatment, while opponents raised concerns about regulation, oversight, and the social impacts of gambling. Supporters included BetMGM, DraftKings, and the Iron Workers Stabilization Fund, while the Department of Taxation and Office of Information Practices also provided comments. The committee then moved into decision-making and adopted the chair’s recommendations to pass HB 671, HB 639, HB 1391, and HB 1384 with amendments, while HB 1361 and HB 1292 were deferred. For HB 1308, the chair outlined a substantial HD1 with changes including limiting the bill to internet-connected mobile or digital wagering platforms, shifting regulatory responsibility from DBED to DCCA, adding confidentiality language tied to UIPA, and using committee notes to reference other states’ tax percentages and agency testimony; members discussed the need for guardrails, and one member changed from a no vote to reservations, but the excerpt ends before the final vote is shown.

Transcript Highlights:

• support to prospective and current students.
• We saw increases in financial aid FAFSA applications.
• In fact, it was a very good year in terms of FAFSA applications and CADAA applications.
• and CADA applications.
• You all are able to begin and... ...to set up that application process.

Summary: The Senate Budget Subcommittee on Education heard updates on higher education issues, beginning with California State University’s turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment is growing systemwide, but some campuses, especially in Northern California, face structural declines tied to demographics and community college pipelines. The plans focus on reengaging stopped-out and adult learners, expanding partnerships and guaranteed admissions, improving retention and student support, and reducing costs through program suspensions, hiring freezes, shared services, and procurement consolidation. The Legislative Analyst’s Office said the strategies were reasonable but urged regular legislative updates, and the Department of Finance had no additional comments. Committee members emphasized the need for implementation oversight, written updates, and attention to student outreach, financial aid, and privacy concerns around AI tools used in recruitment. The committee then reviewed the Bureau for Private Postsecondary Education’s request for a $10 million General Fund appropriation to repay litigation-related borrowing. Department of Consumer Affairs and bureau staff said the bureau has a long-standing structural deficit, has already cut positions and shifted some costs, and that the General Fund backfill would reduce future fee increases on institutions. The LAO opposed the request, arguing the bureau can cover near-term costs with its existing loan and that litigation costs should remain the responsibility of the regulated entities through fees. Finance supported the one-time backfill as a unique situation that would lower fee increases and avoid passing litigation costs on to schools and students. Members asked about preventing a repeat of the problem, and bureau staff said they are pursuing fee increases through the sunset review and have strengthened internal policies and disability accommodation practices. The subcommittee also heard a broad update on Cal Grant funding and student aid. The California Student Aid Commission, UC, CSU, and the community colleges described Cal Grant as essential to affordability, but the LAO noted spending has grown faster than historical averages and said the state likely lacks capacity for major expansion in the near term. The segments highlighted the importance of state aid in covering tuition and living costs, and raised concerns about federal changes to student loans and Pell Grants, especially the elimination of Grad PLUS for some graduate students and limits on part-time borrowing. Committee members pressed for data on students who are eligible but not served by current Cal Grant rules, including adult learners and students affected by age and merit restrictions, and asked for analysis of phased-in implementation of the Cal Grant Equity Framework. Finance said full implementation would cost hundreds of millions of dollars and that affordability remains part of the state’s multi-year compact with the segments. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC and the UC and CSU said the program is a key part of affordability and debt reduction, especially after the 2022 reforms that expanded awards to total cost of attendance and improved administration. They warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance and could affect enrollment and persistence, particularly for middle-income students who do not qualify for other need-based aid. The segments also noted that recent administrative changes have reduced award revisions and campus workload, but that data exchange and award volatility remain challenges.

Transcript Highlights:

• support to prospective and current students.
• We saw increases in financial aid FAFSA applications.
• and CADAA applications.
• ...to set up that application process.
• Be able to graduate with a degree that's applicable to the workforce.

Summary: The committee first heard updates from the California State University on its turnaround plans for seven campuses with enrollment declines. CSU said overall enrollment has grown for three straight years, but some campuses—especially in Northern California—continue to face structural declines tied to demographics and community college pipelines. The system described campus-specific strategies such as outreach to stopped-out and adult learners, guaranteed admissions, partnerships with community colleges and high schools, expanded high-demand programs, and cost reductions including hiring freezes, program suspensions, and shared administrative services. The LAO said the plans were reasonable but urged regular reporting so the Legislature can track results. Committee members pressed CSU for ongoing implementation updates, stronger recruiting efforts, and safeguards around AI use; CSU said it would continue regular check-ins and share best practices across campuses. The second item focused on the Bureau for Private Postsecondary Education and its request for a $10 million General Fund appropriation to repay a special fund loan used for litigation costs. DCA and BPPE said the bureau has long had a structural deficit and has already cut positions, streamlined operations, and shifted some costs to the Student Tuition Recovery Fund, but still needs fee increases through the sunset review process. The LAO opposed the General Fund backfill, arguing the bureau can cover near-term costs with its loan, that litigation costs should generally be borne by regulated entities through fees, and that using General Fund money could set a precedent. Finance supported the one-time backfill as a way to avoid larger fee increases on institutions and to isolate the litigation expense from the bureau’s ongoing structural shortfall. Members asked how the bureau would avoid repeating the problem; BPPE said it has updated policies and practices, including disability accommodation procedures and non-discrimination training. The committee then reviewed Cal Grant funding and program updates from CSAC, UC, CSU, and the community colleges. CSAC said the Governor’s budget would increase Cal Grant funding to about $3.2 billion in 2026-27, driven by enrollment growth and higher tuition at UC and CSU, and highlighted efforts to improve payment processing and financial aid data. UC and CSU emphasized that Cal Grants are central to affordability and debt reduction, while also warning that federal changes under H.R. 1 could reduce access to loans and harm graduate and part-time students. Community colleges reported rising aid applications and awards, but said students still face major affordability barriers, especially mixed-status and undocumented students, and asked for more support for aid administration and completion grants. The chair repeatedly asked for data on eligible students who are not receiving Cal Grants and for a phased-in path to implement the Cal Grant Equity Framework; Finance said full implementation would cost hundreds of millions and the state is not currently in a position to fund it. Finally, the committee began discussion of the Middle Class Scholarship Program. CSAC said the program helps low- and middle-income students cover total cost of attendance, not just tuition, and warned that cutting funding by more than half would reduce award coverage from 35% to 17.5% of cost of attendance. CSU and UC said the program is important for reducing student debt and supporting affordability, and CSU noted recent administrative changes have reduced workload and award adjustments. The hearing continued into the next agenda item after these presentations.

Transcript Highlights:

• Just a quick one: is this correction prospective or is it going to cause a breach or a transfer?
• It's prospective. Okay, thank you. Well, let's open for any questions. I'm sorry.
• And it's all prospective? Yeah, moving forward. Thank you. We have a number of witnesses on this.
• That's, it could be 75 job fairs, or it could be 75 activities. ...job applications.
• For some people, 75 job applications is easy.

Bills: SB317 , SB1250 , SB1520 , SB1950 , SB2298 , SB2532 , SB2539 , SB2747 , SB2925 , SB2993

Committee: Senate Economic Development

Transcript Highlights:

• We're going to move on to application fees. Let's move on to application fees. Yeah.
• talking about application fees.
• if a prospective tenant wanted to include a pet. ...requiring a $30 fee during the application if a
• You have an application fee that's paid for me reviewing your application.
• Then we have a clear timeline of application fee, application deposit, lease.