Transcript Highlights:

• I mean, the historical actual data points speak for themselves.
• We also get the data from federal sources and other sources.
• Have you talked to the industry about, I mean, data is really important, but accurate data is most important
• And so have Data is really important, but accurate data is most important.
• I think we're close to having an improved data set there.

Summary: The Assembly Committee on Utilities and Energy held its annual oversight hearing on the transportation fuels sector, focused on California’s fuel transition, the announced refinery closures by Phillips 66 and Valero, and the potential effects on supply, prices, and the broader fuel system. Committee leadership said the state needs a system-wide transition plan rather than a piecemeal approach, and state witnesses from CARB, the CEC, and DPMO described the fuel market as a complex, interconnected ecosystem involving crude production, refining, storage, imports, and delivery. They emphasized that declining gasoline demand from EV adoption is occurring alongside shrinking in-state refining capacity, which could increase volatility and price spikes if not managed carefully. CARB Chair Liane Randolph reviewed the state’s climate and air-quality programs, including AB 32, SB 32, the 2022 scoping plan, the low-carbon fuel standard, and vehicle emissions rules. She said these policies have reduced emissions substantially but that California still faces major ozone and PM2.5 problems, especially in disadvantaged communities. Randolph also said federal actions challenging California waivers could complicate the state’s clean-air efforts, and she noted that while liquid fuels will still be needed in some sectors, the state must continue reducing fossil fuel dependence while protecting public health. CEC Vice Chair Siva Gunda and DPMO Director Ty Milder presented data on gasoline demand, refinery throughput, crude imports, and price differentials. Gunda said the Legislature’s special-session laws gave the agencies transparency and planning tools, and that the CEC is developing a fuels transition plan while evaluating whether any regulatory tools should be used. Milder previewed DPMO findings that Californians have paid a long-running “mystery gasoline surcharge” averaging 41 cents per gallon since 2015, with higher margins concentrated in branded gasoline and among vertically integrated firms. He said the data show a concentrated market with some refiners doing well and others struggling, and that DPMO will continue investigating price behavior, competition, and supply risks. Members pressed the witnesses on whether state regulations contributed to refinery exits or higher prices, and on whether the agencies had adequately analyzed consumer costs. Witnesses said they had not yet implemented the new permissive tools from SB X1-2 and AB X2-1 because they were still assessing risks and benefits, and they stressed that refinery closures and capital decisions are driven by broader market conditions as well as regulation. No vote was taken; the hearing was informational, with the committee seeking updates and urging the agencies to develop a practical transition strategy that balances affordability, reliability, climate goals, and worker/community protections.

Transcript Highlights:

• CS for SB 484 on data centers by Senator Avala.
• Data centers are powerful economic engines.
• CS for SB 1118 on public records data centers.
• As it relates to The location of a data center.
• The only thing that the project is a data center.

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

Transcript Highlights:

• of any of the data submissions that we routinely get data on.
• of any of the data submissions that we routinely get data on.
• sets and complex health care cost data.
• c> latter</c><05:04:56.360><c> is</c> health care cost data and the latter is health care cost data and
• </c> department to say you have all this data department to say you have all this data and<05:11:29.440

Summary: The committee took up HB 297 with a non-germane amendment proposed by the Insurance Department to create the Granite State Home Mitigation and Resiliency Program. Commissioner DJ Beton explained that the program is intended to help homeowners reduce rising insurance premiums and avoid surplus lines coverage by funding proactive home and property improvements such as roof fortification, exterior and foundation work, flood protection, and tree removal. He said the proposal was developed after leadership asked for more statutory detail and for the idea to be vetted through policy committees rather than handled only in the budget process. Beton said the program would be funded by the first $1 million collected annually from the insurance premium tax, with grants of up to $10,000 awarded on a first-come, first-served basis. He described the program as modeled on similar efforts in other states, with means testing tied to the Department of Energy’s weatherization/home heating assistance criteria. He also said the department would administer the program using one existing staff position, with coordination through Treasury, and that unspent funds would roll over for several years before reverting to the general fund. Members asked about the unusual use of a non-germane amendment and how the bill would be handled procedurally, since the underlying bill and the new insurance proposal were unrelated. The chair explained that the amendment was being used as a vehicle to move the department’s proposal through the committee process and that the committee could later accept one part, both parts, or neither. No vote was taken in the portion of the meeting shown; the discussion ended with questions about administration, staffing, and the relationship between the underlying bill and the amendment.

Transcript Highlights:

• ,</c> allowing us to adapt as new data, allowing us to adapt as new data, evidence,<00:17:49.679><c>
• </c><00:18:16.960><c> where</c> Our data helps us understand where Our data helps us understand where
• And do we get any information or any data from that, and how are we using that data?
• for that as well. that uh data.
• been, like, further going into that data now that the 2024 data is almost finalized. we're at now.

Summary: The subcommittee opened its first meeting of the session with member introductions and a statement from the chair that veterans issues would remain distinct and receive separate attention. The first item was an update on the Minnesota Military and Veterans Museum at Camp Ripley from Executive Director Randall Dietrich. He said the museum has operated for nearly 50 years, has outgrown its current space, and is building a new 40,000-square-foot facility with $32 million in state support plus several million more in private funding. He described construction progress, planned exhibits including restored military artifacts and the USS Ward gun, and said the museum is scheduled to open on September 12. In response to Senator Kunish, Dietrich said the museum is actively incorporating stories and flags representing women, tribal nations, and other underrepresented groups, including 11 tribal flags at the entrance, and is working to integrate those stories throughout the galleries rather than isolating them. The committee then received an update from the Minnesota Department of Veterans Affairs on the veterans suicide prevention plan from Rachel Johnson, Veterans Committee Health Director, with John Kelly later answering questions on department impacts. Johnson said the plan is a coordinated statewide framework built with legislative support, expanding regional coordinators, veteran health navigators, data analytics, and community partnerships, including a suicide mortality review pilot in Hennepin County. She said Minnesota loses about 100 veterans a year to suicide, that firearms remain the primary mechanism, and that prevention must address community connection, economic stability, and access to care, not just clinical treatment. She also said the plan aligns with state and federal strategies and is intended as a living roadmap. In response to questions, Johnson said the department is exploring data-sharing policy issues, has not seen a direct financial impact from federal VA staffing changes, and is tracking federal proposals affecting VA advisory groups. She also said 988 data is available in general but more Minnesota-specific data on the veteran option is still being gathered. Members asked follow-up questions about trends in veteran suicide, the role of families in identifying warning signs, and the Hennepin County mortality review pilot. Johnson said the annual number has remained around 100 for about 15 years, with a dip in 2024 and a return to that level in 2025, and that the Hennepin County pilot was chosen because it offers a manageable geography and existing coalition work, with an initial review expected by May or June. The final item began a presentation from the Minnesota Association of County Veteran Service Officers. Legislative chair Larry Fonder said the group’s priorities are protecting veterans from fraud and modernizing the property tax benefit for disabled veterans, but the presentation would focus on educating the committee about the role, training, certification, and accountability of county veteran service officers. President Tom Anderson, the Winona County VSO and a Navy veteran, began describing his background and office staffing when the transcript ended.

Transcript Highlights:

• externally with any data centers whatsoever.
• How do you double-check that data? That's a wonderful question.
• You don't run out any data from a data center?
• We are so complex as a bioorganism; the more data we have and the more data we're able to train, whether
• And we've got providers that cannot include identifiable data in the provenance data about a person unless

Committee: House House Artificial Intelligence & Innovation Committee of Reference

Summary: The committee began with a lengthy informational presentation from Sonora Quest Laboratories on how it is using artificial intelligence and innovation in laboratory medicine. Company leaders described current and planned uses of AI in digital pathology, digital cytology, predictive analytics, genomics, sepsis markers, pharmacogenomics, and “digital twin” modeling for treatment planning and drug trials. They emphasized that their systems are kept in a closed, secure ecosystem, that human experts remain in the loop for validation, and that AI is being used to improve accuracy, speed, and productivity rather than replace workers. Members asked about specimen handling, safeguards against incorrect AI outputs, data security, expansion into hospital labs, and whether AI could help with precision medicine, rare diseases, and reducing step therapy; the presenters said AI could improve diagnosis and tailor treatment, but stressed ongoing human review and regulatory controls. The committee then took up Senate Bill 1786, which requires covered providers using generative AI to add provenance data to AI-created or significantly modified video, image, or audio content, using methods such as watermarking or metadata, with minor edits exempted. A Wilmot amendment was explained and adopted; it clarified the provenance requirements, added exceptions for certain interactive and non-user-generated media, protected trade secrets and confidential AI design information, and delayed the effective date to February 1, 2027. Members discussed the bill’s consumer-protection purpose, concerns about misleading AI-generated media, possible Commerce Clause issues, and the scope of the covered-provider definition. One member raised a concern about undefined “user” language, while others supported the measure as a needed disclosure requirement in a fast-changing policy area. The committee voted to give SB 1786, as amended, a do pass recommendation. The amendment passed on voice vote, and the final roll call was 4 ayes, 2 nays, and 1 absent. The chair closed by thanking members for their work during the committee’s first year and noting the session’s collaborative tone.

Transcript Highlights:

• The challenge isn't a lack of data.
• The data that actually feeds into AI systems is a lot of times obfuscated.
• You may even breach the system, but you can't use the data.
• We will secure all state computers with PII and any critical data.
• Send it to people's data. We don't care. But Treasury will not.

Committee: House House Science & Technology Committee of Reference

Summary: The Committee on Science and Technology met with a full audience and began with brief introductions, including an intern from Arizona State University. The committee heard two presentations before taking up its only bill. The University of Arizona’s Thomas Diaz de la Rubia spoke about fusion energy, describing it as a potential clean, safe, baseload power source and arguing Arizona should build the talent, supply chains, and research infrastructure to commercialize fusion. Members asked about timelines, regulation, competition with China, and the relationship to small modular reactors; he said fusion could be commercially relevant in roughly 12 to 15 years if public and private investment continues, and that the U.S. should avoid losing manufacturing and supply chains as it did in other technologies. He also discussed the university’s broader space and national security work. XRDNA CEO Charles Ableman then presented a spatial addressing and coordination system called EVA, describing it as a way to align data about where and when physical objects exist across systems, with a security layer called a sphere of influence. He said the company is testing with space and logistics partners, uses AI provenance tools, and sees its near-term use case in space operations and interoperability. The committee then considered HB 2809, which would require state agencies handling sensitive or protected data to implement post-quantum encryption meeting or exceeding CMMC 2.0 standards, using a U.S.-based vendor and U.S.-developed or maintained components. The bill would place the master encryption key with the Auditor General and set procedures involving the Auditor General and Attorney General. Sponsor Rep. Gillette explained that the bill was simplified from a prior version after concerns that agencies would have to connect offline systems to the internet; the amendment clarified that encryption can be installed without internet connectivity and without requiring other systems to be online. He argued the measure is needed to modernize weak legacy systems and protect data after prior breaches and failed IT projects. Members generally supported the concept but raised questions about implementation, costs, vendor neutrality, and the Auditor General’s role; the Secretary of State’s office was described as neutral and still evaluating implementation. The committee adopted the Pingarelli amendment and then passed HB 2809 as amended on a 9-0 vote, with several members explaining that they supported the bill but wanted continued stakeholder input and careful attention to execution.

Transcript Highlights:

• So what we do to track these data is this.
• And we do a big data match to determine the pathway.
• We would have to pull those data with our data team.
• But that's we do look at that data said.
• I did bring some data. I just want make sure that that I that I show the right data here.

Transcript Highlights:

• This bill is not asking credit unions to submit current data.
• The other states, like Massachusetts, have had enough time now to look at the data.
• And so that is why we are opposed to the new regulatory structure when the data is it.
• If they've already had the data and they could produce... ...the data that shows that they are investing
• If they've already had the data and they could produce... ...the data that shows that they are investing

Summary: The Assembly Banking and Finance Committee met to hear several bills, beginning with a consent calendar that included AB 665 and AB 866, both adopted on a do pass basis and referred to Appropriations. The committee then took up AB 801, which would create a California Community Reinvestment Act to require covered financial institutions, including state-chartered banks, credit unions, residential mortgage lenders, and money transmitters, to meet the financial needs of low- and moderate-income communities and communities of color. The author and supporters argued the bill would close gaps left by the federal CRA, address redlining and discriminatory lending, and expand investment in housing, small business, and community development. Support came from community groups, CDFIs, labor, and housing advocates, while opposition from mortgage bankers and credit unions argued the bill would impose costly new reporting and regulatory burdens, especially on institutions they said already serve underserved borrowers well. Committee members discussed the scope of the bill, the experience of other states with state CRA laws, and possible carve-outs or tiered treatment for smaller credit unions. AB 801 was passed as amended and referred to Appropriations, with the roll left open and later completed; one member voted no and others were not voting or voted aye as the roll was finalized. The committee also heard AB 743, which would require licensing and surety bonds for commercial lawsuit financing and bring those transactions under DFPI oversight. The author said the bill was aimed at a largely unregulated, multi-billion-dollar industry and was intended to increase transparency and address concerns about foreign interests, fraud, and abusive litigation funding practices, while not affecting consumer legal funding. Supporters, including Unified Patents, the Civil Justice Association of California, the California Chamber of Commerce, the California Trucking Association, and the American Property Casualty Insurance Association, said the bill was an important first step toward disclosure and regulation. There was no opposition testimony. AB 743 passed unanimously as amended and was referred to Appropriations, with the roll held open briefly for absent members before the committee adjourned.

Transcript Highlights:

• First of all, you'd have to create data points of what information you want.
• Well, first of all, you need to determine what data points you want to collect.
• I mean, he asked me, he says, well, what data points do we need?
• So that way, the most expensive tier, we actually have solid data on.
• The 200 percent A was chosen because the data is there for that.

Bills: HB1329

Committee: Senate Appropriations - Education and Environment Division

Summary: The Education Division met with all members present and first took up House Bill 1329, which would create a transparency database and website for school spending information. Senator Schaible offered Amendment 0204 to turn the bill into a study, citing concerns that the proposal would impose major data-collection burdens on 168 school districts, require new data standards and privacy protections, and likely cost far more than the $500,000 in the bill. Several members supported transparency but agreed the implementation costs and technical feasibility were unclear. The committee adopted the amendment 4-1, then passed HB 1329 as amended on a 5-0 vote, with Senator Shively to carry the bill. The committee then discussed House Bill 1540, the education savings account/voucher bill. Representatives from the Bank of North Dakota and the Department of Public Instruction explained that they had not been consulted on the original drafting and outlined needed administrative changes, including clarifying the Bank as administrator, using a third-party program manager, involving DPI in rulemaking, adding audit and appeal procedures, and adjusting language on eligible purchases and school disqualification. They also said the current timeline was likely too aggressive to launch by the 2026-27 school year and estimated the program would require about 15 months to implement, with a fiscal note now around $5.1 million. Members also discussed policy-related amendments on means testing and application timing. Senator Shively proposed a 300% of poverty-level means test and a sign-up period to reduce costs and limit open-ended enrollment, while Senator Axman proposed a tiered approach that would keep all students technically eligible but phase in funding levels by income, preserving access for students who qualify for other federal supports. DPI said it could not currently disaggregate some data by family income and that the appeal process and procurement timeline still needed work. The committee did not move HB 1540 out that morning and instead recessed to continue discussion later after members had time to review the administrative and fiscal issues separately from the means-testing proposals.

Transcript Highlights:

• Um and thank you so much for all data.
• So the data is the data.
• </c> new staff and with that like the data new staff and with that like the data can<00:23:25.440><c>
• So the data is the data. can change. So the data is the data.
• </c> can collect a data on that. Thank you. can collect a data on that. Thank you.

Transcript Highlights:

• This dashboard showcases the turnout and other data.
• </c> showcases the turnout and other data showcases the turnout and other data this<00:16:28.759><c>
• Lenell said they could also look and provide more fully accurate data.
• </c> that again populates when there's a data that again populates when there's a data match<01:21:21.360
• Our office hosts and maintains the voter registration system that transmits that data.

Committee: House Elections Finance and Government Operations

Transcript Highlights:

• Um, there's a lot of data, a therapists.
• </c> we're going to you know sell your data we're going to you know sell your data to<00:29:54.559><c
• </c> further research, further data further research, further data collection.<00:34:00.399><c> You're
• </c> couple years ago we passed a data couple years ago we passed a data privacy<00:37:09.040><c> bill
• </c> influencing decision who uses the data influencing decision who uses the data where<00:43:06.079

Summary: The committee met with a quorum, approved the prior meeting minutes, and then heard testimony on the use of artificial intelligence in therapy and mental health settings. Representative Lisa Willner and Brenda Rosen of NASW Kentucky argued for “guard rails” on AI chatbots so they cannot present themselves as licensed therapists or replace school counselors, psychologists, or social workers. They said AI can support licensed professionals, but warned that chatbots cannot reliably recognize nonverbal cues, escalate crises, or provide accountable care, and they cited examples of harmful chatbot interactions, including a suicide case and a chatbot telling a user to “Please die.” The witnesses also raised concerns about data privacy, commercialization of sensitive mental health conversations, and the use of personal clinical content to train AI models. They said minors should require parental consent and suggested transparency about how a chatbot is trained and who created it. They distinguished between unvetted consumer chatbots and AI tools that have been scientifically validated or approved as digital therapeutics, noting that some evidence-based tools may be useful for specific conditions such as depression, anxiety, or eating disorders. Committee members asked whether regulation should be handled by the legislature or by professional boards, and whether a multi-state model would be preferable to 50 different state approaches. The witnesses generally favored expert-led standards and said a board or panel of experts could review and approve mental health chatbots, but members cautioned that boards can become too restrictive and that legislation should preserve flexibility and avoid discouraging children from seeking help. The discussion ended with a request for the witnesses to restate their proposed policy ideas, including privacy protections, bans on commercialization, limits on training AI with clinical content, transparency requirements, and informed consent.

Transcript Highlights:

• The bill also adds some smart access system data collection and privacy policy requirements to the RLTA
• building landlord or third party may collect only the minimum amount of authentication or reference data
• building landlord or third party may collect only the minimum amount of authentication or reference data
• elements to be collected, protocols, and safeguards the landlord will provide for protecting the data
• And there's also cameras everywhere, so biometric data.

Summary: The committee heard three housing-related bills. SB 5937 would regulate smart access systems in rental housing by requiring landlords, on tenant request, to provide non-biometric and non-app-based alternatives such as physical keys, key fobs, or key cards, and by adding privacy-policy and data-minimization requirements for smart access systems. The bill’s sponsor and a tenant testified in support, describing concerns about app-based entry systems tracking movement and collecting personal data. The Washington Multifamily Housing Association testified neutral, saying the bill had been improved through stakeholder work and amendments that allowed privacy-policy links and delayed implementation until January 1, 2027. The hearing on the bill was closed with no vote taken. The committee then heard ESSB 5156, which directs the State Building Code Council to allow smaller elevators in apartment buildings up to six stories and 24 units and creates a technical advisory group to review certain elevator safety requirements. The sponsor and several supporters argued the bill would reduce elevator costs, improve feasibility for small multifamily and middle-housing projects, and increase accessibility and age-friendly housing. The National Elevator Industry opposed the bill’s harmonization language in Section 2, paragraph 2, warning it could create ambiguity, multiple standards, and litigation, but said it would be neutral if that language were removed. Other industry and housing advocates supported the measure as a way to lower costs and expand housing supply. No action was taken during the hearing. Finally, the committee heard SB 6237, which would require landlords to disclose flood risk information to tenants for leases entered into after December 31, 2026. The disclosure would note whether a property may be in a flood hazard area, where tenants can find county flood information, and that the landlord’s insurance does not cover tenants’ belongings. The Washington Multifamily Housing Association testified neutral, saying the bill had been narrowed to a more manageable disclosure and that removing a requirement to recommend flood insurance addressed concerns about landlords acting as insurance advisers. The hearing concluded without a vote, and the chair announced the committee would meet again the next day.

Transcript Highlights:

• </c><00:10:14.400><c> sharing</c> And three, lead improved data sharing And three, lead improved data
• And we've been working really hard to consolidate data and pull together a data lake to access data in
• </c> anomalies within data points. anomalies within data points.
• </c> to that unemployment data from DEED. to that unemployment data from DEED.
• </c> any data on. any data on.

Bills: HF4525 , HF3002 , HF3665 , HF4420

Committee: House Children and Families Finance and Policy

Keywords: human services, background studies, NETStudy 2.0, licensing, license suspension, license revocation, provider enrollment, program integrity, fraud, medical assistance fraud, Medicaid, payment withholding, credible allegation of fraud, background check, disqualification, variance, set-aside, foster care, family foster setting, adult foster care

Transcript Highlights:

• And also if preventing or avoiding the weaponization of publicly released data.
• data capture, both for state and federal.
• And that again goes to the additional data capture that I mentioned. It goes to the data analytics.
• And that again goes to the additional data capture that I mentioned. It goes to the data analytics.
• And that again goes to the additional data capture that I mentioned. It goes to the data analytics.

Summary: The subcommittee first received an informational update on the Governor’s Office of Service and Community Engagement (GoServe), including California Volunteers, the Office of Community Partnerships and Strategic Communications, and the Youth Empowerment Commission. GoServe reported strong participation in College Corps, Youth Service Corps, and Climate Action Corps, along with outreach results from OCPSC and the Trusted Messenger Network. The Department of Finance said the programs remain a priority but noted prior budget reductions, while the LAO said it had no new recommendations. Committee members raised questions about program diversity, geographic reach, administrative costs, and whether the programs duplicate existing volunteer opportunities; one member criticized the programs as costly and duplicative, while another emphasized the value of volunteerism and asked about the men’s service challenge. The item was informational only. The committee then heard an overview of the Board of Equalization’s property tax responsibilities and its first budget proposals since the 2017 reorganization. BOE described its role in county assessment oversight, state-assessed property valuation, and related tax administration. Members asked about BOE’s interaction with counties, property tax reassessments, and local tax notices; BOE explained it mainly works with county assessors and handles technical property tax questions, while local special district charges are generally outside its scope. The committee also considered a BOE proposal to implement SB 293, which would give additional time for certain intergenerational property tax transfer claims after the 2025 wildfires. BOE requested $154,000 for guidance, public materials, and inquiry response work, saying the change is urgent for wildfire-affected families, especially in Altadena. The LAO had no concerns, and the item was held open. BOE also presented an information technology modernization proposal for its state-assessed property program, seeking $3.2 million in 2026-27 and $3.1 million in 2027-28 to replace a 30-year-old mainframe system. BOE said the current system relies heavily on manual data entry and paper processes, creating inefficiencies, cybersecurity risks, and delays, while modernization would free staff for more audits and valuation studies. The LAO supported the need but urged a high bar for new IT projects; Finance said the project met the threshold of necessity. Members generally supported the upgrade but asked about audit gains, revenue impacts, and implementation risks, and the item was held open. Finally, CDTFA gave its department overview and then discussed a proposal to require all delivery network companies, such as Uber Eats and DoorDash, to be treated as marketplace facilitators for sales tax purposes. CDTFA said the current carve-out creates confusion for restaurants and small businesses because some DNCs collect and remit tax while others do not, and the change would improve compliance and shift reporting to larger platforms. Members debated whether the proposal amounts to a tax increase for consumers, with CDTFA and Finance arguing it is a consistency and compliance measure rather than a new tax, while others said it would likely raise consumer costs. The committee also discussed broader CDTFA issues, including local sales tax districts, revenue-sharing agreements, and the growth of special taxing jurisdictions. No votes were taken, and the agenda items were informational or held open.

Transcript Highlights:

• They don't collect and maintain as much data as you and I might expect they do.
• They don't collect and maintain as much data as you and I might expect they do.
• data in, in retrieving<00:16:09.360><c> data,</c><00:16:10.000><c> and</c><00:16:10.320><c> helping<
• Counties have five different types of data document imaging systems.
• Counties have five different types of data document imaging systems.

Summary: Senate Republican leaders held a press event to roll out a package of anti-fraud proposals focused on state welfare and human services programs. Mark Johnson opened by citing recent fraud scandals, including a shuttered housing program and reports of vulnerable adults being left without care while providers billed for full services, and said Republicans want top-down reform, stronger accountability, new technology, and tighter oversight of taxpayer dollars. Michael Kreun said Republicans support an independent Office of Inspector General and argued the Senate-passed bill should not be weakened in the House; he also said the Senate should restore its role in confirming agency commissioners, especially at DHS, which he described as central to the fraud problem. Jordan Rasmusson outlined a plan to stop “blank checks” for DHS and DCYF services by requiring legislative audit review when a program exceeds budget by 5 percent and legislative approval for additional spending at 10 percent over budget. He also said DHS should adopt basic integrity tools such as electronic visit verification and client sign-off. Steve Drazkowski described two bills: a statewide “do-not-pay” list to block payments to ineligible people or entities, and an “I’m Not a Robot” proposal for Medicaid managed care that would require enrollee verification forms, with a 2 percent payment withhold used to encourage compliance and potentially fund county system upgrades. Mark Krueger said the state should improve technology and data use for eligibility determinations, citing other states’ rapid fraud-fighting systems, and proposed penalties for false reporting to the Legislative Auditor after a DHS audit found falsified site-visit records. Steve Gruenhagen said his bill would require DHS and DCYF to resume annual fraud-prevention and oversight reports to the legislature, which he said had stopped after 2017 despite rising fraud cases. Michael Holmstrom proposed unannounced site visits for all DHS and DCYF providers before enrollment, reenrollment, and revalidation, funded through provider service fees, and cited a recent case involving a woman with autism who was billed for far more care than she received. In the Q&A, Kreun said House Democrats’ delete-everything amendment to the inspector general bill removed the law enforcement division and stripped the bill of its “teeth,” and he suggested the governor’s office may have been involved in efforts to replace the bill with a weaker coordination council model. No votes were taken in the press conference.

Transcript Highlights:

• Is there any data showing that it's been beneficial?
• As mentioned, OHA will provide an exhibit reconciling CCO's data contribution to the base data for rate
• preempted even from collecting data.
• So we don't have direct data on that.
• I don't have data on it available right now.

Summary: The committee held an informational hearing focused first on Oregon Medicaid coordinated care organization (CCO) finances and rate setting. Oregon Health Authority staff explained how 2025 CCO financial results will inform 2027 capitation rates, including reserve requirements, subcapitation arrangements, and major cost drivers such as behavioral health, pharmacy, rural hospital costs, and dental directed payments. They said the Legislature’s added 2025 funding materially improved CCO margins and that, without it, the program would have been negative overall. Members asked about retained earnings, subcapitation, behavioral health utilization, ABA therapy, and whether outcomes are being evaluated; OHA said rate setting is actuarial and that CCOs, OHA, and other partners all play roles in monitoring efficacy and access. OHA also reviewed House Bill 4039 changes intended to increase transparency and give CCOs earlier access to rate information and reconciliation exhibits. CCO representatives then testified that the system is under significant financial pressure and that behavioral health state-directed payments, benefit changes, and federal uncertainty from H.R. 1 are reducing flexibility. CareOregon said it has lost more than $500 million over the last couple of years and is now making provider terminations and other network changes to align spending with available funding, while emphasizing that CCOs must make hard decisions about which services and providers can be sustained. Eastern Oregon CCO said rural and frontier factors, cost-based hospitals, air ambulance needs, and statewide efficiency adjustments are not fully reflected in rates, and that dental funding is especially strained. Trillium similarly warned that state-directed payments and benefit expansion pressures are constraining the global budget model and that H.R. 1 could worsen acuity and volatility. Members pressed the witnesses on who is responsible for evaluating treatment effectiveness, especially for ABA and psychotherapy, and on how utilization limits and reimbursement changes are being used to control costs. The committee then shifted to an overview of the Affordable Care Act and Oregon’s commercial insurance market. Department of Consumer and Business Services staff explained actuarial value, metal tiers, premium tax credits, medical loss ratio rules, and the main drivers of premium rates: cost trend, utilization trend, and administrative costs. They said mandates have likely added only a limited amount to premiums over the past decade, though the exact effect is difficult to isolate, and they gave examples of how high-cost, low-volume services versus broad, high-utilization services can affect rates differently. Staff also noted that Providence Health Plan and PacificSource Health Plans are withdrawing from the individual market, though consumers should still have at least three insurer options in every county and may have four in many counties. The division said it is in the middle of reviewing proposed 2027 rates and will continue its public rate review process, including hearings and written comment.

Transcript Highlights:

• And we need to have centralized data to determine that.
• What kind of data are they gathering?
• What kind of data are they gathering?
• Centralized data and where we're making our budgetary decisions.
• Now you're saying it's about data. “Issues and about data. Now you're saying it's about data.

Bills: SB132 , SB241

Committee: Senate House Appropriations & Finance

Summary: The committee first heard HB 158 as amended, which would require state agencies receiving appropriations from the Grow Fund to submit accountability and evaluation plans to the State Budget Division and the Legislative Finance Committee. LFC staff said the bill would put existing practice into statute and formalize agency reporting and evaluation responsibilities. The bill drew no opposition testimony, and after questions about whether agencies or LFC would do the evaluations, it passed on a 9-0 due pass vote. HB 255, the Public Safety Workforce Building Program, was then presented as a bipartisan measure to consolidate public safety workforce funding into a competitive grant program for local law enforcement, fire, detention, and public attorney offices. The sponsor said it would not require a new appropriation. There was no opposition testimony, and the committee approved it on a 9-0 due pass vote. The committee then took up SB 309, which would replace the lottery’s 30% return requirement with a fixed floor return for several fiscal years, with a reversion to the current law if the floor is not met. Lottery officials and supporters argued the change would let the lottery offer more competitive prizes, including higher-value scratchers, and potentially increase scholarship revenue; opponents, including Think New Mexico and a nursing student, warned it could cap long-term growth and reduce scholarship funding. After extended debate, the bill passed on a 7-2 due pass vote. Later, SB 79, creating a statewide mosquito-borne disease prevention program through the Department of Health, was presented by its sponsor as a response to West Nile virus and warmer winters. Testimony from the sponsor and the state entomologist emphasized rising mosquito risk and the need for county grants and statewide coordination. Although the committee initially moved to table the bill because funding had already been included in the budget, that motion failed and the bill ultimately received a due pass vote. The committee also heard HB 295, which would create a centralized accessibility reporting position in the Department of Health; after testimony for and against, an amendment stripping the appropriation was adopted, and the bill passed 5-3. The committee then heard HB 124, establishing an Office of New Americans within Workforce Solutions to coordinate workforce integration for immigrants with lawful status. Supporters described barriers faced by immigrant workers and the need for bilingual training and centralized assistance, while the sponsor said the office would have no first-year budget impact. The bill passed 6-4. Finally, the committee considered SB 273 and SB 274, both involving state financial support for affected entities and the Patient Compensation Fund. SB 273, which would provide temporary state assistance to communities affected by economic disruption, passed after debate about precedent and economic recovery. SB 274, which sought repayment from the Patient Compensation Fund for prior state infusions, drew opposition from hospitals and physicians who warned of higher surcharges and questioned the timing and legality; discussion continued around the committee substitute and the fund’s statutory restrictions.

Transcript Highlights:

• Uh, as of today, um, the system houses data.
• </c> as of today um the system houses data as of today um the system houses data saves<00:03:38.239><
• And again, the risk of securing 474,000-plus people's data, the most secure data in the system, that's
• That does create a lot of data.
• interfaces exchanging data to talk to interfaces exchanging data to talk to different<00:24:16.000><c

Summary: The House Budget Review Subcommittee on Personnel, Public Retirement, and Finance held its first meeting and heard a presentation from personnel cabinet officials on a major request to replace the Kentucky Human Resources Information System, known as CHRIS, which currently handles HR, payroll, tax compliance, and health plan administration for state government and several local offices. Officials said the system supports payroll for about 48,000 employees, covers all three branches of government and 24 sheriff and county clerk offices, and stores records for nearly 475,000 current and former users. They explained that SAP has said the system will reach end of life and lose support by 2030, creating risks around security, maintenance, and tax compliance if it is not replaced. Commissioners and staff emphasized that the replacement is needed not just as an upgrade but as a full system replacement, especially because the current platform no longer receives meaningful HR enhancements and will eventually lose security updates and tax tables. They also described the Kentucky Employees Health Plan as a major driver of the project, noting it serves nearly 300,000 covered lives, many school boards, pre-65 retirees, and more than 700 entities, with significant complexity in billing, premium collection, and regulatory compliance. Officials said the new system would help address current manual workarounds, support changing insurance rules, and better protect personally identifiable and health information. Members asked detailed questions about the $151 million request, including why the estimate had risen by more than $50 million, what would happen if the project missed the 2030 deadline, how progress would be tracked, how vendor costs were estimated, and what the largest cost components would cover. Officials said the increase was mainly due to inflation and changing requirements, and that there was no real backup plan if the replacement was not completed before support ends. They said the project would be managed through an RFP process expected in July 2026, with kickoff in January 2027 and go-live by July 2030, and that oversight would include an enterprise steering committee, monthly updates, and existing quarterly COT reporting to LRC. They also explained that the largest share of the request is for implementation and integrator services, with additional amounts for software licensing and hosting, independent verification and validation, dependent verification, FSA administration, and limited contract support, and that payments would be tied to deliverables and acceptance testing.

Transcript Highlights:

• extract um outcome data it's um counts extract um outcome data it's um counts activities<00:38:14.640
• You'll hear terminology like data warehouse, enterprise data warehouse, data analytics, transformations
• , and data management.
• terminology like Enterprise data warehouse<02:09:36.960><c> data</c> warehouse data warehouse data analytics
• </c> of data it's where we assign data of data it's where we assign data stewards<02:10:19.239><c> that

Summary: Finance Division 3 met for a work session on House Bill 519, which concerns funding for Waypoint. The chair noted general support for the organization but said the bill would likely need to be suspended and folded into the budget process because the committee did not yet know available revenues or what amount, if any, could be committed. Kya Fox, director of the Division for Behavioral Health, testified that the department supports the bill and the program, explaining that it had been funded with other available funds, including $100,000 for 2024 and $400,000 for 2025, under a contract running through June 30 of this year. She said the shelter serves a unique population of young adults and is part of the department’s children’s system of care and Mission Zero efforts to reduce barriers to psychiatric discharge and emergency department use. Members questioned Fox and Waypoint representatives about the budget placement of the request, the difference between the efficiency budget and prioritized needs, and whether state budget documents would show any internal Waypoint revenues. Fox said the request appears as a general fund item and that the state would not see Waypoint’s internal financial operations in the budget. A legislative member explained that prioritized needs are critical services already in place but not necessarily included in the efficiency budget, and another member said the distinction is not strictly applied. The committee also raised a separate question about how DHHS would handle any future state or federal restrictions on DEI practices; Fox said that was a question for department leadership and legal staff, but that the department follows state law and contract requirements. Waypoint CEO Bor Alvare and Director Mandy Lancaster then described the shelter and related services. They said the shelter serves ages 18 to 24, is a 14-bed open-room facility with half walls, and is staffed overnight by two full-time workers. They said admission is first come, first served, with some vulnerability factors considered, and that they do not discriminate by race, gender, or sexual orientation. They reported no known incidents of sexual violence, though some youth are turned away each night because the shelter is full. They also explained that Waypoint provides broader services beyond the shelter, including outreach, drop-in centers, housing support, rental assistance, and family mediation, and said they serve about 400 youth and young adults in Manchester alone. The discussion ended with questions about whether lowering the upper age limit would affect the program; Waypoint said most residents are already in the 18-to-23 range, but that housing shortages make the current age span important for helping young adults avoid chronic homelessness.