Transcript Highlights:

• </c><00:12:46.399><c> your</c> wake up in this time of inflation your wake up in this time of inflation
• Beyond that, this reliance comes with severe negative environmental impacts.
• It's really quite exciting, and the IMPACT Act can play a role.
• role or excuse exciting and the impact role or excuse me<03:48:43.120><c> the</c><03:48:43.279><c> impact
• Together, the IMPACT Act, alongside IMPACT Act 2.0 introduced in the House earlier this month by Congressman

Bills: HR240 , HR198 , HR1326 , HR359 , HB1534 , HR1368 , HR1350 , HR1325 , HR1318 , HR730

Keywords: resolution, death of a representative, honor, adjournment, Raul Grijalva, Raúl M. Grijalva, Arizona, House resolution, memorial resolution, condolence resolution, death of a member, adjournment in memory, tribute, obituary, congressional memorial, House of Representatives, committee funding, budget allocation, government expenditures, Congress

Transcript Highlights:

• Now, you know, that just shows how inflation has affected us.
• So that's a 95% reduction. the loss by if nothing else by inflation the loss by if nothing else by inflation
• Like, that's a measurable impact that changes lives and families and communities.
• So, the border being secured now has had an impact.
• I think it is going to have a really long-term positive impact from our perspective too.

Summary: The committee met with a quorum, approved the September 24 minutes, and heard a briefing from representatives of three Kentucky drug task forces: Greater Hardin County, Bowling Green-Warren County, and Bluegrass Narcotics. The presenters described how multi-jurisdictional task forces operate, their partner agencies, and the kinds of drugs and trafficking patterns they are seeing, with fentanyl identified as the most dangerous and fastest-growing threat. They also described large seizures and investigations involving fentanyl pills, cocaine, methamphetamine, marijuana, tractor-trailer shipments, postal shipments, and a case tied to a pill press and undercover work with the DEA. Bluegrass Narcotics said it was formed in response to overdose deaths and has since seen major reductions in complaints and overdose deaths in Harrison and Bourbon counties. A major theme of the presentation was funding. The task forces said Byrne JAG funding has declined from about $2.1 million statewide in 2023-2024 to $1.4 million this year, while their costs for vehicles, fuel, technology, overtime, office space, and training have risen sharply. They said local support and asset forfeiture help, but the revenue is uneven and unpredictable, and they asked the legislature to consider adding about $1 million per year in state support, with oversight from the Justice Cabinet or Office of Drug Control Policy. They also emphasized that if meth labs return, many agencies would need new training and equipment because those capabilities have largely expired or been scaled back. Members asked about possible statutory barriers, coordination across counties and states, the source of drugs, and how seized cash is handled. The task forces said coordination with federal, state, and other local agencies is generally strong, but money remains the main obstacle to broader operations. They explained that seized cash is held as evidence and, after court proceedings, may be awarded back to task forces or split under statute, with 15% going to the Commonwealth’s attorney and 85% to law enforcement. No votes or formal actions were taken beyond approving the minutes and receiving the briefing.

Transcript Highlights:

• They generated over $44 million in economic impact for Sacramento.
• Imagine the impact across the entire state for all of these festivals.
• Again, if there's wildfires, things that impact.
• We lost the Breakaway music festival, things that created jobs and provided impact.
• For the last four years, we've seen national inflation of 3.3%, and our costs to produce and operate

Summary: The Assembly Committee on Arts, Entertainment, Sports, and Tourism heard several bills focused on California’s creative economy, sports development, and cultural preservation. SB 226 by Senator Cabaldon would clarify that infrastructure revitalization financing districts may be used for entertainment and sports facilities, with testimony from West Sacramento officials emphasizing that the tool would rely only on project-generated city tax increment and would not affect school districts, counties, or the General Fund. Members discussed the relationship between IRFDs and EIFDs and the distinction between infrastructure financing and direct subsidy of private sports teams or stadiums. SB 865 by Senator Ashby proposed support for destination music festivals, citing the economic impact of events such as Aftershock and Golden Sky in Sacramento and similar festivals elsewhere in the state. Supporters from Visit Sacramento and Danny Wimmer Presents said festivals generate substantial jobs, tax revenue, and tourism spending while promoters bear the financial risk. Several committee members and public witnesses supported the bill as a way to sustain the creative economy, local businesses, and opportunities for artists. The bill passed the committee on a unanimous vote and was sent to Appropriations. SB 1050 by Senator Ashby would require disclosures when synthetic performers are used in advertisements, including audio ads, to inform consumers and protect human performers from displacement. SAG-AFTRA and voice actor advocates argued that consumers deserve to know when an ad uses AI-generated likenesses or voices, while TechNet, the Motion Picture Association, broadcasters, and other industry groups opposed unless amended, raising concerns about overbreadth, audio-only implementation, private enforcement, and the need for clearer exemptions and definitions. Members generally supported the bill’s goal but noted technical issues to refine; it passed unanimously to Judiciary. SB 1073 by Senator Smallwood-Cuevas would create a voluntary tax checkoff to support the South Los Angeles Black Cultural District. Supporters described the district’s historic and cultural significance and framed the measure as a way to help preserve Black cultural assets amid limited public funding. Members discussed how the checkoff would appear on tax forms statewide, its voluntary nature, and whether it could serve as a model for other districts. The bill also passed unanimously to Appropriations, and the committee later adopted the consent calendar unanimously as well.

Transcript Highlights:

• Transportation manager, continually expanding her expertise and impact across the agency, and whereas
• around a lot in society, but I'm going to tell you that I served with some heroes that had a huge impact
• around a lot in society, but I'm going to tell you that I served with some heroes that had a huge impact
• But I would tell you that whatever they do, I think will be a good impact to our constituents, and we
• With the rising fuel prices, the cost of inflation, they're hurting.

Bills: HCR1030 , HB1370 , SB893 , SB2 , SB1589

Summary: The House convened, completed roll call, and heard an invocation and pledge before moving through several ceremonial presentations. Members recognized Monty Smith for 43 years of service with the Oklahoma Department of Transportation, honored the Marlow Lady Outlaws girls golf team for winning the Class 3A state and academic state championships, and acknowledged the final group of pages for the 60th Legislature. The House also adopted HCR 1030, which sets the legislative procedure schedule and deadlines for the 61st Oklahoma Legislature. The chamber then met in a joint session with the Senate to observe Veterans Awareness Day. Speakers from both chambers and the Oklahoma Veterans Council delivered remarks honoring veterans, Gold Star families, and military service, and highlighted recent policy achievements for veterans, including the full tax exemption for 100% disabled veterans, the exemption of military retirement pay from state income tax, improved funding for veterans’ homes, and restructuring of the Oklahoma Veterans Commission. The Veterans Council also presented its annual awards, naming Sen. Kerry Hicks as Outstanding Senator of the Year, Rep. Andy Menz as Outstanding Representative of the Year, Aaron Higgins as Veteran of the Year, and the Speed family as Veteran Family of the Year, and recognized Scott Howell for his service to the council. The joint session then adjourned. Back in the House, members took up Senate amendments to House Bill 1370, which concerns the Corporation Commission plugging fund and a repealer tied to a state fuel-tax offset provision. The bill’s author explained that the amendment would prevent the state from capturing savings if the federal fuel excise tax is reduced, so any reduction would benefit consumers rather than state revenue. After questions about fiscal impact and the well-plugging fund, the House adopted the Senate amendments without objection and passed HB 1370 on final passage by a vote of 89-1; the emergency clause also passed 89-1. The House then recessed, later returned for a staff appreciation and sine die-style recognition, including a tribute to long-serving bill drafter Mark Carter, and recessed again while awaiting any additional legislation from the Senate.

Transcript Highlights:

• as of yet, but through the language it sets up the... ...there's not a fiscal impact as of yet, but
• There's a quantity of them, a relatively large quantity, and I'm wondering what impact that would have
• You all can build this kind of advocacy that it takes to impact those chairs of appropriations.
• And more importantly, I just want to end with the impact is felt by the rural communities.
• They're going to have regional impacts. We're going to be looking at that as well.

Bills: HM26 , HB243 , HB109

Committee: House House Agriculture, Acequias And Water Resources

Summary: The committee first heard House Memorial 26, a student-presented memorial encouraging state agencies to participate in insect education and conservation efforts, including free workshops sponsored by Wild Friends. The young witnesses emphasized the ecological and agricultural importance of insects, especially pollinators, and clarified that the memorial would not restrict fishing bait or other insect use. After brief questions about fishing, the University of New Mexico connection, and a planned BioPark bugarium, the committee approved the memorial on a due pass motion by unanimous consent. The committee then heard House Bill 243, which would provide more stable funding for shelters that care for homeless, abused, abandoned, or surrendered horses, donkeys, and mules. The bill would appropriate $500,000 to the existing Equine Shelter Rescue Fund, move administration of the fund from the Livestock Board to the Department of Agriculture, strengthen grant and reporting requirements, and create an Equine Welfare Trust Fund seeded with $5 million. Supporters from Animal Protection New Mexico, the Livestock Board, and the Department of Agriculture said the shelters are essential, underfunded, and at capacity, and that the bill would provide a more reliable funding stream. Some public testimony raised concerns about how animals are tracked and whether any horses could end up at auction or slaughter. Committee discussion focused on whether equine care should be funded through recurring appropriations instead of a trust fund, whether the Livestock Board or Department of Agriculture should administer the money, and whether the bill could affect wild or free-roaming horses. The sponsor and supporters said the bill would not change the Livestock Board’s enforcement role and that the trust fund was intended to create long-term support. A motion to table the bill failed, and the committee then voted 4-4 on the due pass motion, so HB 243 did not advance. One member explained his support but said the bill was not a good long-term solution. Finally, the committee heard House Bill 109, which would temporarily, through December 2029, allow the New Mexico Finance Authority to award water project funds without separate legislative authorization after projects have already been vetted. The sponsor and NMFA and Water Trust Board witnesses said the current authorization step delays projects for months, increases costs, and especially hurts small rural communities and acequias. They said the bill keeps existing oversight and evaluation processes, adds technical assistance for smaller applicants, and was amended to extend the sunset date to 2029 and remove an unconstitutional two-thirds-extension requirement. The committee approved HB 109 on a due pass motion by a vote of 7-1.

Transcript Highlights:

• We expect to have a significant impact.
• So we expect that these auxiliary lanes are going to have a significant impact in the near term.
• Every single strike is different and impacts a bridge differently.
• And so over the last four years, there was extreme, intense inflation on a lot of commodities.
• The longer it goes on, the higher the risk there is of it impacting us.

Summary: The Committee on Transportation received a presentation from the Department of Highway Safety and Motor Vehicles on Florida’s camera-based traffic enforcement programs: red light cameras, school bus stop-arm cameras, and school zone speed cameras. The department explained how the programs work, including human review of recorded violations, issuance of civil notices to vehicle owners, and escalation to uniform traffic citations if unpaid or uncontested. Officials also outlined the fee structure and reported preliminary data showing 42 red light camera jurisdictions, 496 red light cameras, and more than 923,000 notices of violation in fiscal year 2024-2025, along with growth in school zone and school bus programs. Senators asked about camera placement, signage, review procedures, and whether reviewers or vendors receive revenue from citations; several questions were left for follow-up because the witness did not have all statutory or operational details. The committee then heard an update from FDOT Secretary Jared Perdue on the Moving Florida Forward Infrastructure Initiative, funded by a $4 billion general revenue investment leveraged into a $7 billion program for 20 major projects. He said the initiative is advancing high-priority congestion relief projects across the state, with 80% of the plan expected to be underway by the end of 2026 and the remaining projects in 2027. Perdue highlighted new delivery methods such as modified phased design-build, voluntary acceleration, and structured acceleration, along with workforce and supply-chain efforts, including regional hiring events and aggregate planning. He cited projects such as I-4 congestion relief lanes, Golden Glades, I-95 at US-1, I-75 auxiliary lanes, and I-275 improvements as examples of the program’s progress. Members questioned FDOT about traffic management during construction, subcontracting opportunities for small businesses, public transit planning, contractor safety and fatalities, bridge strikes, logistics access near ports and airports, aggregate supply, local government coordination, and federal funding uncertainty. Perdue said FDOT continuously reevaluates traffic control plans, works with local governments and industry partners, uses small business participation targets, and requires contractors to be in good standing with OSHA and to implement corrective action plans after incidents. He also said Florida’s transportation revenues are flat, the state remains largely state-funded, and additional resources are the main need for future transportation delivery. The committee adjourned after the chair requested FDOT staff provide senators with district-specific project information.

Transcript Highlights:

• Let me share some powerful numbers. that demonstrate our impact. 43% of our graduates continue their
• Economic impact is substantial and measurable. When you invest in St.
• I'm here today to talk about the impact that the Alex Tech diesel technology program has for us.
• Because as these projects inflate, there will come a number where we cannot impose that level of debt
• We have requests out for a much larger allocation from them, as it is a county impact project.

Bills: HF2418 , HF1666 , HF232 , HF344 , HF402 , HF431 , HF468 , HF547 , HF583 , HF1476 , HF1711 , HF2787 , HF2788 , HF3207

Committee: House Capital Investment

Transcript Highlights:

• Your contributions to the State Assembly have made meaningful impact and truly appreciate your commitment
• We have, in our communities, people who are impacted, whether it's the children themselves, the families
• Because our state agencies honestly are impacting the ability for them to get the care that they need
• I'm sure there are many of those students that he impacted and their lives changed because of his caring
• like to acknowledge the family and thank you for allowing us to have Eric for so many years. the impact

Transcript Highlights:

• need to see exactly where the state investment is going, whether it's supporting the workforce or inflating
• I've seen the negative impact this high turnover has on clients who have to start over with a new caregiver
• in order to really look at this definition. ...to look at the definition of imminent risk and the impact
• about the way that we're funding the ECAP program and how the Balmer gift is being used, how that's impacting
• to hear about: how those investments are doing in our JR world, how our investments in 6109 might impact

Bills: HB1873 , HB2600 , SB5957

Committee: House Early Learning & Human Services

Keywords: child care, Working Connections Child Care, WCCC, graduate students, professional students, higher education, full-time student, affordable child care, subsidized child care, child care subsidy, Department of Children, Youth, and Families, DCYF, income eligibility, state median income, copayment, copay waiver, family support, workforce participation, working families, special needs child care

Transcript Highlights:

• requirement that the options in the model ordinance first prioritize avoiding tree removal, then minimizing impacts
• bill had a lot of help, really helpful follow-up meetings to help kind of narrow the scope and the impact
• bill had a lot of help, really helpful follow-up meetings to help kind of narrow the scope and the impact
• Inflation has hit the maritime industry especially hard.
• It applies to the counties that operate vehicle ferries and does not impact passenger-only systems.

Bills: HB2451 , HB2298 , HB2566 , HB2267 , HB2530 , HB2388 , HB2588 , HB2094

Committee: House Local Government

Keywords: tax increment financing, local government, economic development, municipal finance, public infrastructure, property title protection, land record fraud, county auditors, voluntary program, real estate, procurement, contracting, transparency, financial oversight, urban forestry, environmental policy, tree management, community planning, public facilities district, regional aquatics

Transcript Highlights:

• There is an impact on public school funding.
• Chair. negative negative impact impact impact uh<02:19:07.679><c> comes</c><02:19:07.960><c> quickly<
• It will expand the impact and need of the teacher shortage and impact teacher salaries and retirement
• </c><03:59:43.279><c> and</c> or not it will expand the impact and or not it will expand the impact and
• It is a concern that these things may impact his ability to be successful.

Summary: The hearing focused on House Bill 115-FN, which would remove the income cap from New Hampshire’s Education Freedom Account eligibility rules. Representative Valerie McDonnell, the bill’s sponsor, said the measure is intended to fund students rather than systems and to expand educational choice regardless of income or zip code. She described the change as a small statutory edit but argued it would have significant benefits, including helping families afford alternative education settings and testing costs such as AP exams. She also cited testimony from families who said EFAs helped children with special needs or difficult circumstances, and she argued the program is popular and cost-effective. Committee members questioned McDonnell about the bill’s fiscal impact and administration. One member asked whether removing the income cap would extend vouchers to families above the statewide median income and whether the change could cost more than $100 million annually; McDonnell said she did not agree with that estimate and pointed to Arizona as a comparison. Representative Wendy Thomas asked whether the bill should require stronger data-sharing from the Children’s Scholarship Fund, which administers the program, so the Department of Education and taxpayers could better track spending; McDonnell said the program already uses ClassWallet and regulated expenditures, and that the question was better directed to the administrator. Several members testified in opposition. Representative Wendy Thomas said the bill would increase costs for public schools, raise local property taxes, and worsen oversight problems. Representative Heath Howard argued the proposal would function as a subsidy for wealthy families already paying private tuition and said public education and special education should be funded first. Representative Megan Murray also opposed the bill, emphasizing the lack of a legal reporting requirement for EFA spending and the need for transparency, accountability, and attention to special education needs. Representative Sam Farrington supported expansion, sharing a constituent story about a student who left public school after harassment and benefited from private school placement. No vote or final action was taken in the portion provided.

Transcript Highlights:

• And that’s how these conversations impact us.
• So the impact wasn't just to us, but the impact went to our staff, it went back to those kids, and the
• There would be no General Fund impact under this proposal.
• All of these impact our consumers.
• So the reduction of 10 hours of overtime is a huge impact.

Summary: The hearing began with opening remarks on the Governor’s May Revision for child care and human services, with committee members and advocates stressing that the budget should not be balanced on the backs of low-income families, children, and providers. Legislative members and public witnesses strongly opposed the proposed suspension of the child care COLA, reductions to the Emergency Child Care Bridge Program, and the lack of codified rate reform tied to the alternative methodology. Several speakers also urged more support for providers affected by the Eaton fire and other disasters, and called for child care to be funded at the true cost of care and for additional slots to be restored. Administration, LAO, and Department of Education staff described the child care proposal as maintaining existing funding levels while adding administrative resources to prepare for federally required prospective payment changes and single-rate reform. The administration said the May Revision would suspend the 2025–26 COLA and reduce Bridge Program funding to align with utilization, while the LAO raised questions about the size and purpose of the proposed rate-reform and prospective-payment funding and recommended rejecting a Department of Technology exemption. CDE supported continued early education investments but said it would need additional resources if prospective pay were extended to state preschool, and it objected to a proposed reallocation of preschool funds for inclusive education grants. The committee then moved to the IHSS portion of the May Revision. DSS outlined five major proposals: capping provider work hours at 50 per week, eliminating IHSS for undocumented adults age 19 and older, shifting certain Community First Choice reassessment penalties to counties, reinstating the Medi-Cal asset test as a conforming IHSS reduction, and automating the termination of IHSS when Medi-Cal eligibility ends. DSS also discussed funding to implement a federal HCBS access rule and a separate reassessment of IHSS administrative methodology that found counties would need additional administrative funding. Finance said the proposals were intended to slow program growth and improve sustainability, while the LAO said it was still analyzing the package and raised concerns about implementation, county workload, and the potential loss of services. Committee members and public commenters criticized the IHSS cuts, especially the overtime cap and the elimination of services for undocumented adults and people affected by the asset test. Advocates argued that IHSS workers and recipients depend on these services, that county administration is already underfunded, and that the proposals could destabilize vulnerable consumers. The chair closed by saying the committee would continue to fight for child care and would not pause on child care, and the meeting recessed before moving on to the remaining May Revision items.

Transcript Highlights:

• So this slide gives a visual of when we will have some data that shows the full impact of what is being
• visual of the four to five year implementation effort and when we will see some solid data on the impact
• We know that it is imperative that we have impactful data to show the results of the READ Act.
• The review and/or adoption of the science or reading-based curriculum has a positive impact, as well
• These negative impacts will lower morale for students and for staff.

Bills: HF2430 , HF2433

Committee: House Education Finance

Transcript Highlights:

• . >> And certainly that impacts we know every university given their niche where they are is too with
• If you look at the CPI that's been published for inflation during that period by the federal government
• I think the impact in terms of what the average would be overall would would not be significant before
• And with more funding allocated to the strategic opportunities, we can provide an even greater impact
• Reduce your enrollment to the fact that it has a negative impact.

Transcript Highlights:

• At our last hearing, we examined HR1's impact on Medi-Cal.
• Second is the operational impact on community health centers.
• Third is the impact on patient care.
• It is not just Medi-Cal recipients who will be impacted.
• populations impacted by last year's state budget cuts.

Summary: The Assembly Budget Subcommittee on Health held a hearing on the impacts of H.R. 1 and related federal actions on Covered California, Medi-Cal, and immigrant access to care. The chair framed the discussion around three main issues: expected losses in marketplace coverage as enhanced federal premium subsidies expire, new federal work and renewal requirements that would add administrative burden to Medi-Cal, and the loss of eligibility for certain lawfully present immigrants. Covered California testified that H.R. 1 and new federal rules, combined with the end of enhanced premium tax credits, are driving higher premiums, lower new enrollment, and more cancellations, especially among middle-income, Latino, and Black enrollees. The agency said California’s $190 million state subsidy program is helping lower-income enrollees but cannot replace the lost federal assistance, and it noted that roughly 120,000 lawfully present immigrants in Covered California will lose federal tax credits in 2027. On Medi-Cal, the Department of Health Care Services said H.R. 1 will require work and community engagement verification, six-month renewals for certain adults, and other changes that the department expects will reduce enrollment substantially. DHCS estimated 233,000 members could lose coverage by June 2027 from the work requirement and 289,000 from six-month renewals, with losses rising much higher by 2028; it also said it is using automation, outreach, clinic navigators, coverage ambassadors, community health workers, and street medicine providers to reduce procedural disenrollments. The department described a two-phase outreach plan and said it is working with counties on implementation, while the Department of Finance said the Governor’s budget maintains $190 million for the state subsidy program and does not propose additional changes at this time. The LAO said its independent forecast is somewhat higher than the administration’s, estimating about 2.1 million fewer Medi-Cal enrollees by June 2028, and urged the Legislature to review county administrative workload and readiness. Public testimony and member comments focused on the human and fiscal consequences of coverage losses. A representative from the Sacramento Native American Health Center warned that reduced reimbursement and coverage losses would destabilize community health centers, increase uncompensated care, and worsen outcomes by pushing patients into emergency care. Members raised concerns about paperwork burdens, county capacity, outreach effectiveness, and whether the state should do more to preserve coverage, including possible modeling of additional H-CARF spending and support for middle-income consumers and immigrant enrollees. The hearing did not take any votes or formal actions, but it ended with public comment and continued discussion of implementation and budget options.

Transcript Highlights:

• Some of that will obviously abate over time: inflation will eventually come down, and interest rates
• things like interest rates uh inflation things like interest rates uh costs<00:55:40.440><c> are</c>
• </c><00:57:18.280><c> is</c> difficult for us to directly impact is difficult for us to directly impact
• So alcohol is under a little bit of attack, just as part of our revenue impact as well.
• So alcohol is under a little bit of attack, just as part of our revenue impact as well.

Summary: The meeting began with introductory remarks for new and returning members of the House Commerce Committee, led by Chairman John Hunt. Members briefly introduced themselves and their backgrounds, and several noted the committee’s bipartisan, collegial tone. Hunt explained the committee’s structure and traditions, including the division into three subcommittees: banking and business, consumer protection, and liquor commission matters, with insurance now handled as a single area. He also reviewed basic hearing procedures, including decorum, questions for information only, and the committee’s practice of moving bills through subcommittees before full committee executive sessions. The committee then heard an overview from the New Hampshire Insurance Department, led by Commissioner DJ Bettencourt and staff. The department described its mission as promoting a safe and competitive insurance marketplace and emphasized consumer protection, market competition, and affordability. Officials outlined the department’s responsibilities, including licensing insurers, producers, adjusters, and TPAs; reviewing insurance forms; regulating companies and market conduct; overseeing financial solvency; and investigating insurance fraud. They also noted that the department is self-funded through assessments on insurers, collects premium taxes and fees for the state, and returned more than $2.7 million to companies in fiscal year 2024 due to underspending. The presentation also covered the broader regulatory framework for insurance, including the role of the National Association of Insurance Commissioners in promoting uniform standards across states and territories. Officials said New Hampshire licenses about 1,200 insurance companies and roughly 245,000 producers and adjusters, and that the department’s financial examinations are part of an accreditation system used nationwide. No votes or formal committee actions were taken in the portion provided; the session was primarily organizational and informational, with the insurance department presentation beginning the committee’s substantive work for the term.

Transcript Highlights:

• At our last hearing, we examined HR1's impact on Medi-Cal.
• HR1 and new federal marketplace rules will have sweeping impacts, and I'll...
• Second is the operational impact on community health centers.
• Third is the impact on patient care.
• It is not just Medi-Cal recipients who will be impacted.

Transcript Highlights:

• So more impact on private hospitals, not additional impact on rural and distressed hospitals?
• I don't see any federal policies impacting this.
• Second, it would need to be long-term and impactful.
• individuals most impacted.
• also wanted to highlight the delay impact on caregivers.

Transcript Highlights:

• We have tremendous positive societal impact. An ounce of prevention is worth a pound of cure.
• Without these resources, clearly the impact could be less staffing, with an impact to service delivery
• could be less Staffing with an impact could be less Staffing with an impact<00:54:32.440><c> to</c><
• > motans</c> presentation is it impacts all motans presentation is it impacts all motans right<01:15:
• </c><02:01:18.679><c> our</c> point um that's going to impact our point um that's going to impact our

Committee: Senate Health and Human Services

Transcript Highlights:

• So more impact on private hospitals, not additional impact on rural and distressed hospitals?
• I don't see any federal policies impacting this.
• Second, it would need to be long-term and impactful.
• individuals most impacted.
• individuals most impacted.

Summary: The subcommittee heard a lengthy Department of Health Care Services presentation on the governor’s Medi-Cal budget, including a $229.1 billion total-funds proposal, projected Medi-Cal enrollment declines as redeterminations continue, and several major cost drivers such as managed care growth, Medicare-related costs, pharmacy spending, and changes tied to federal policy. Members focused heavily on the elimination of Prop. 56 dental supplemental payments beginning July 1, 2026, questioning the likely impact on provider participation and utilization. DHCS said it is completing the required rate reduction/access analysis for CMS, has been holding stakeholder meetings and issuing provider bulletins, but could not yet quantify the real-world effect. The committee also discussed a $50 million savings proposal tied to new hospice utilization management authority and asked about possible effects on emergency dental care and provider participation. The hearing then moved through the November 2025 family health estimate and several county and program administration issues, including CCS, GHPP, and Every Woman Counts. DHCS said family health costs are rising despite slight caseload declines because of higher utilization and medical costs, and members raised concerns about CCS website accessibility, county administrative funding, and the transition of youth aging out of CCS. The department said most CCS beneficiaries are also on Medi-Cal, that counties have long raised funding concerns, and that it had clarified use of maintenance-and-operations dollars to address some county workload issues. Members also asked about Every Woman Counts potentially seeing higher demand as Medi-Cal changes take effect; DHCS said that is possible and that the program has multiple funding sources including General Fund. A major portion of the hearing focused on provider taxes and federal changes under H.R. 1, especially the Medi-Cal managed care organization tax and the hospital quality assurance fee. DHCS explained that H.R. 1 restricts new or increased health care-related taxes, phases down allowable tax levels over time, and tightens “generally redistributive” rules, which could sharply reduce the state’s ability to use the MCO tax for Medi-Cal financing. Members asked whether the Legislature could amend Prop. 35 or whether voters would need to act; DHCS said a three-fourths legislative amendment may be possible if it aligns with the measure’s purpose, but the department is still evaluating options. The committee also discussed hospital financing, with DHCS describing recent increases in state-directed payments and the effect of H.R. 1 in capping those payments at Medicare levels, and the LAO noting the tradeoff between preserving provider taxes and maintaining Medi-Cal funding. The subcommittee also reviewed a series of DHCS budget change proposals and trailer bill items, including managed care final-rule implementation, managed care operations, a hospital value strategy, a one-year extension of skilled nursing facility financing, long-term care payment transparency, and interoperability/prior authorization requirements. Members repeatedly questioned the use of limited-term versus permanent positions, the overlap among proposals, and the timing of new financing reforms. DHCS said the SNF extension would preserve current workforce standards, sanctions, growth limits, and the SNF quality assurance fee while the department develops a broader 2027-28 redesign. No votes were taken; items were repeatedly held open for later action. Covered California then presented on the expiration of the federal enhanced premium tax credit and the resulting affordability crisis. The agency said Californians will lose about $2.5 billion in premium assistance for 2026, average premiums could nearly double for many enrollees, and as many as 400,000 people could eventually leave marketplace coverage. Open enrollment ended with 1.9 million sign-ups, down 3% from the prior year, with especially steep declines among middle-income consumers and increased movement into bronze plans. Covered California said the state’s $190 million affordability subsidy is helping lower-income enrollees retain coverage, but cannot fully replace the lost federal assistance. Members also asked about the Health Care Affordability Reserve Fund, repayment of loans from that fund, the status of federal review of California’s essential health benefits benchmark, and implementation of the new gender-affirming care benefit under AB 144.