Transcript Highlights:

• We've seen from other states that offer this.
• So it is a state constitutional right, as it were.
• It should go to the roads. So a yes vote on this means it does not go to the roads.
• It does not get used for roads, right? Well, at this point, Mr.
• The money should go to the roads. This bill does not put it on the roads, so I vote nay.

Committee: Senate Senate Finance Committee of Reference

Summary: The Senate Finance Committee approved the February 16, 2026 minutes and then heard House Bill 2173, which would let tax officers and taxpayers communicate electronically about proposed property tax corrections or claims unless certified mail is required. County and assessor representatives supported the bill as a modernization measure, and the committee voted 6-0 to give it a do pass recommendation. The committee then considered several Arizona State Retirement System-related measures and nominations. It recommended confirmation of Thomas J. Connolly as a public member of the ASRS Board and Charles Essex as a retired member, both by 6-0 votes. The committee also passed House Bills 2089, 2090, and 2092, which clarified ASRS health subsidy eligibility, changed the disability determination timing for long-term disability benefits, and adjusted the waiver window for new eligible members age 65 or older. Each of those bills received unanimous or near-unanimous support. Members next approved House Bill 2693, as amended, which revises Arizona’s association health plan and multiple employer welfare arrangement rules to align with current federal law and adds a study by the Department of Administration on state and school employee health insurance options. Supporters said it could expand affordable coverage for small businesses, while Senator Epstein raised concerns about consumer protections, preexisting conditions, and prior fraud issues; the bill passed 5-1. The committee also passed House Bill 2120, allowing Social Security disability determination letters to help certify eligibility for the property tax exemption for disabled persons, and House Bill 2138, clarifying workers’ compensation coverage for firefighters traveling directly to or from duty, both with some discussion but no opposition. Finally, the committee approved House Bill 2273, which creates a one-time $300 income tax rebate for certain Pinal County residents using remaining escrow funds from the county transportation tax litigation, though members debated whether the money should instead go to roads. The bill passed 3-2 after comments from the sponsor, a Pinal County mayor, and senators who said they wanted the funds directed to transportation projects. The committee then passed House Bill 2786, exempting income from renting required college textbooks from transaction privilege tax, and adjourned.

Transcript Highlights:

• SANDAG oversees billions of dollars, including SB 1 road maintenance and rehabilitation account funds
• federal, state, and local funds.
• , yes, federal funds were appropriately spent, state and local funds were appropriately spent, I think
• That plan is required by the state in order to provide funding for biking and walking projects.
• By the state in order to provide funding for biking and walking projects and for the trails.

Committee: Senate Joint Legislative Audit

Transcript Highlights:

• , state funding, city funding, and a city tax deferment.
• When state funding does not keep pace, When state funding does not keep pace, the<02:00:25.760><c> debate
• What funding is provided by the state.
• 00.479><c> is</c> Ensuring adequate state funding is Ensuring adequate state funding is therefore<02:
• </c><04:22:18.880><c> a</c> spend state taxpayer dollars to fund a spend state taxpayer dollars to fund

Committee: House Executive Departments and Administration

Transcript Highlights:

• UGA is the form that functions as the most flexible form, a no-strings-attached fund from the state to
• in funding.
• their way out into the state.
• on its roads because more people drive on our roads.
• To the Bureau of the State House, to our DCR park rangers, and state troopers, thank you for helping

Transcript Highlights:

• ON THE ROADS AND STREETS.
• Funding is missing.
• This legislation designates that a portion of International Drive in Orlando between State Road 528 and
• Participation in the compact enables member states, of which all 49 other states are part, to address
• Whether that's general revenue or trust fund within that line item and the amount to be taken to fund

Bills: SJR37 , SJR57 , SCR8 , SB8 , SB108 , SB125 , SB251 , SB318 , SB378 , SB379 , SB396 , SB472 , SB487 , SB503 , SB533 , SB565 , SB583 , SB608 , SB650 , SB686 , SB689 , SB707 , SB710 , SB763 , SB854 , SB875 , SB916 , SB924 , SB925 , SB958 , SB961 , SB965 , SB987 , SB988 , SB1006 , SB1019 , SB1021 , SB1024 , SB1026 , SB1038 , SB1146 , SB1185 , SB1194 , SB1202 , SB1252 , SB1253 , SB1330 , SB1343 , SB1362 , SB1497 , SB1498 , SB1499 , SB1527 , SB1547 , SB1596 , SB1697 , SJR36 , SJR12 , SJR57 , SJR37 , SCR22 , SCR12 , SCR8 , SB925 , SB1362 , SB565 , SB765 , SB62 , SB666 , SB707 , SB888 , SB687 , SB847 , SB1248 , SB504 , SB857 , SB305 , SB296 , SB284 , SB1497 , SB1499 , SB1498 , SB241 , SB304 , SB621 , SB1023 , SB1024 , SB686 , SB371 , SB204 , SB609 , SB670 , SB850 , SB854 , SB413 , SB1346 , SB1033 , SB1220 , SB1073 , SB810 , SB1539 , SB447 , SB875 , SB406 , SB985 , SB965 , SB1119 , SB1505 , SB1194 , SB1253 , SB1215 , SB1302 , SB856 , SB583 , SB673 , SB681 , SB1172 , SB1252 , SB378 , SB608 , SB955 , SB957 , SB988 , SB1019 , SB1021 , SB1120 , SB251 , SB541 , SB379 , SB1737 , SB266 , SB1415 , SB1527 , SB125 , SB599 , SB1330 , SB53 , SB916 , SB1352 , SB785 , SB710 , SB472 , SB1450 , SB1502 , SB1566 , SB414 , SB1062 , SB961 , SB1038 , SB578 , SB711 , SB746 , SB942 , SB1404 , SB1448 , SB1738 , SB108 , SB8 , SB318 , SB507 , SB533 , SB689 , SB1026 , SB1349 , SB1355 , SB1433 , SB1434 , SB1596 , SB1403 , SB1146 , SB763 , SB667 , SB1059 , SB617 , SB1567 , SB503 , SB16 , SB310 , SB311 , SB396 , SB505 , SB1209 , SB1210 , SB1470 , SB264 , SB924 , SB1029 , SB1185 , SB1202 , SB1358 , SB1364 , SB1569 , SB1697 , SB1376 , SB1228 , SB519 , SB878 , SB1350 , SB462 , SB1535 , SB827 , SB1585 , SB207 , SB1207 , SB1619 , SB1396 , SB920 , SB1484 , SB1273 , SB1741 , SB7 , SB927 , SB1227 , SB1229 , SB1353 , SB1366 , SB1464 , SB1709 , SB1729 , SB1733 , SB1744 , SB1772 , SB1816 , SB1841 , SB2188 , SB1147 , SB879 , SB1008 , SB378 , SB710 , SB916 , SB1019 , SB1146 , SB1194 , SB1253 , SB1499 , SB213 , SB925 , SB1362 , SR263 , SR311 , SR333 , SCR8 , SB2407 , SB2722 , SB2949 , SB2407 , SB2722 , SB2949

Transcript Highlights:

• </c><00:20:00.320><c> Oh,</c> the road. Did you have some comment? Oh, the road.
• This is just a bill for our deputy registrars here in the state and reallocating some of the funds to
• </c><00:37:03.440><c> should</c><00:37:03.920><c> fund</c> transportation funds should fund transportation
• I believe, again, as was stated, the language came from admin, from the State Patrol.
• I believe, again, as was stated, the language came from admin, from the State Patrol.

Bills: HF3169 , HF3749 , HF2605 , HF3541 , HF4102 , HF3513 , HF268

Committee: House Transportation Finance and Policy

Transcript Highlights:

• of Florida Teacher of the Year, which Governor DeSantis introduced at the State of the State earlier
• What I see could be happening here is the potential for folks to get free buildings, get state funding
• What I see could be happening here is the potential for folks to get free buildings, get state funding
• So 'state highway' ended up being more roads than what I expect, like an expressway.
• So state highway ended up being more roads than what I expect like an expressway.

Summary: The committee first took up PCS for HB 123, which would change the process for converting a public school to a charter school by requiring approval from a majority of parents at the school, allow municipalities to apply to convert certain schools under limited circumstances, and address surplus school property in districts with declining enrollment. The sponsor said the bill is meant to give parents the primary say and to prevent districts from holding unused property. Opponents, including the Florida PTA, several members, and public speakers, argued the bill excludes teachers, school boards, and other stakeholders, could disenfranchise parents who do not live in the municipality, and could create enrollment, transportation, and equity problems. After debate, the bill passed 13-5 and was reported favorably. The committee then heard HB 597 on diabetes management in schools. The bill would allow school districts and charter schools to procure and store glucagon pens for emergency treatment of severe hypoglycemia, permit trained personnel to administer them, require 911 to be called after use, and add limited liability protections. The sponsor said the medication is inexpensive and could save lives for the roughly 7,000 diabetic K-12 students in Florida. An amendment clarified that public and charter schools are both covered. The bill drew support from the American Diabetes Association, the American Academy of Pediatrics, and the Florida PTA, and members from both parties praised the measure. It passed unanimously and was reported favorably. Finally, the committee heard HB 85 on hazardous walking conditions, which would add walking along freeways, expressways, and their ramps as a hazardous condition requiring bus service for elementary students within two miles of school. The sponsor described personal examples of children walking near dangerous roads and said the bill is intended to prevent injuries and deaths. An amendment narrowed the language by deleting “state highway.” Public testimony included a parent who described her child being hit by a car and urged broader coverage, while members raised concerns about bus shortages and fiscal impact. Most members spoke in support, emphasizing student safety, and the bill was reported favorably after debate.

Transcript Highlights:

• </c><00:14:03.759><c> currently</c> each school bus on our road currently each school bus on our road
• They're making a killing while we're promoting not really to be able to be over here over state road
• They're making a killing while we're promoting not really to be able to be over here over state road
• Furthermore, many are simply ignoring the current set of rules and riding on state roads illegally, uninsured
• They can ride on our roads.

Summary: The Senate Transportation Committee met with a quorum, approved the February 19 minutes, and opened with guest recognitions and a brief prayer for a colleague who had a medical episode. The committee then took up Senate Joint Resolution 66, which would create a task force to study Advanced Air Mobility and related policy issues in Kentucky. The sponsor and witnesses described AAM as emerging eVTOL “flying car” technology, argued Kentucky has strong aviation and logistics assets to compete for the industry, and said the task force would include legislative, KYTC, and industry representatives. Senators asked about the technology and potential uses, including rapid transport of medical specialists. The resolution was reported favorably after roll call, with several members expressing support and at least one member noting a desire for more information while still voting yes. The committee next considered Senate Bill 38, as amended by committee substitute, dealing with school bus stop-arm safety cameras. The sponsor cited survey data showing hundreds of illegal school-bus passings in Kentucky and argued the bill would help change driver behavior by allowing, but not requiring, school districts to use camera systems funded through violators rather than district budgets. Testimony emphasized that the measure is voluntary, vendor-neutral, provides an appeals process in district court, limits camera activation to when the stop arm is deployed, and keeps revenues within the school district and court system. Representative David Hale supported the bill, sharing a personal story about a near-miss involving a child crossing after a bus stop. The committee approved the committee substitute and then reported SB 38 favorably with the expression of opinion that it should pass with the committee substitute attached. Finally, the committee heard Senate Bill 63 on street-legal special purpose vehicles. The sponsor and Backroads of Appalachia representatives said the bill would define and regulate these vehicles, while expressly excluding farm and agricultural vehicles from its requirements. They explained the bill would require inspection, registration, and a motorcycle plate for qualifying vehicles, set limits on where and how far they can be driven, and allow local or state restrictions where applicable. Supporters framed the bill as an economic development measure for Eastern Kentucky and the broader state, citing tourism, trail-system spending, and examples from other states. A committee member asked for clarification about farm-to-farm use, and the witness confirmed the bill would not affect agricultural use. The transcript ends during discussion of SB 63, before any final committee action is shown.

Transcript Highlights:

• There are projects all around the state that would be lifted up and be more likely to get funding as
• There are projects all around the state that would be lifted up and be more likely to get funding as
• And if this state can't pull off that bureaucratic balancing act, the road doesn't get built. alluded
• </c><01:04:39.480><c> By</c><01:04:39.640><c> funding</c> road might produce. How How?
• By funding road might produce. How How?

Transcript Highlights:

• Funding through Connecting Washington: $79 million.
• Mason County, thanks to investment from the state Public Works Trust Fund, and our delegation was able
• state.
• It makes districts ineligible for state funding beginning in 2028.
• They must be constructed in Washington State.

Summary: The Senate Transportation Committee held a work session on two major corridor projects before moving to public hearing and executive session. In the Yakima area, WSDOT, Yakima County, and Ecology described the Interstate 82/east-west connector work as a coordinated effort to add capacity, improve interchanges, and address the Boise Cascade mill site contamination that sits in the project footprint. County and Ecology witnesses said the county is ready to remove wood waste and contaminated material, but the project is stalled pending a draft work plan and a de minimis consent decree; several senators pressed for faster action and clearer direction from Ecology. The committee then heard an update on the SR 3 Belfair freight corridor, where WSDOT said environmental review is complete and the next major step is an access hearing this summer, followed by right-of-way acquisition and construction likely in late 2027 or early 2028. Local and tribal partners emphasized the project’s importance for freight mobility, housing growth, emergency access, and regional economic development. The public hearing was on engrossed substitute House Bill 2711, a transportation resources bill that largely tracks provisions from prior legislation but also adds or changes several tax and account provisions. Staff explained that the bill clarifies fuel tax and peer-to-peer tax distributions, treats trade-in value differently for recreational vessel and luxury vehicle taxes, provides a six-month motor home exemption and penalty waiver for the luxury vehicle tax, allows lease payments to be made over time, exempts tribal members and nonresidents, creates a Preserve Washington account, changes some transfer timing, and repeals the luxury aircraft tax. Testimony was mixed: aviation groups supported repealing the luxury aircraft tax; trucking and some citizens opposed fuel tax and diesel tax increases; Sound Transit, transit advocates, labor, and ferry interests asked for amendments such as 75-year bonding authority, mobile driver’s licenses, ferry funding, and bike education funding. Alaska Airlines and Delta also supported adding mobile ID language. In executive session, the committee advanced several bills, including SHB 1823, SHB 2114, E2SHB 2251, SHB 2323, SHB 2410, EHB 2588, 2SHB 1923, and HB 2495, all with due pass recommendations after adopting amendments where applicable. The committee adopted a striking amendment to E2SHB 2251 adjusting Climate Commitment Act account distributions and a striking amendment to EHB 2588 limiting the ferry district changes to Whatcom County and removing the voter-approval tax provision. It also adopted an amendment to 2SHB 1923 that added further conditions for passenger-only ferry districts, including whale-protection and fare-related provisions. Senator King voted no on E2SHB 2251, objecting that the bill reduced the transportation share of Climate Commitment Act revenues. The chair announced one more executive action meeting would be held Wednesday morning, with amendment requests due the prior day.

Transcript Highlights:

• park in the state as well.
• </c> state highways. state highways.
• The state helps fund water projects, whether it be wastewater.
• </c> roads, and public safety. roads, and public safety.
• </c> state, I think they will tell you a road state, I think they will tell you a road is<01:19:54.640

Bills: HF4841 , HF4234 , HF3697

Committee: Senate Taxes

Keywords: Hennepin County, sales tax, health care facilities, ballpark improvements, tax revenue, HF4234, Minnesota private activity bonds, tax-exempt bonds, bond cap, aggregate bond limitation, residential rental projects, multifamily housing, affordable housing finance, housing bonds, public finance, bond allocation, private activity bond cap, Minnesota Statutes 474A.02, tax committee, tax refund

Transcript Highlights:

• related to construction of industrial access roads, which includes road signage and other improvements
• Development Project Fund will be put into the airport hangar development fund, which is a sub-fund, and
• This amendment expires the minimum ratio of professional instructional personnel per state-aid-funded
• Engrossed House Bill 5692, supplemental appropriation, State Road Fund. Second reading of the bill.
• Engrossed House Bill 5692, supplemental appropriation, State Road Fund. Second reading of the bill.

Transcript Highlights:

• Without funding from the state, we cannot move forward. This is why we are asking for this funding.
• We are here in front of you once again to make the case for more state funding to address the elevated
• They have the funds to cover down on what they had prepared for, and the state of Minnesota is asking
• Madame Mayor, I have some concerns that you're coming to us for state funds, but yet businesses in your
• </c><01:04:06.160><c> in</c> us for State funds but yet businesses in us for State funds but yet businesses

Bills: HF201 , HF217 , HF314 , HF315 , HF406 , HF408 , HF425 , HF426 , HF730 , HF731 , HF652 , HF761 , HF1079 , HF928 , HF1017 , HF1056 , HF1081

Committee: House Capital Investment

Transcript Highlights:

• I am State Senator Rebecca Rausch [member_12265].
• We can provide access to state services like the Fusion Center and access to State Police and other investigative
• So both of those are funded out of the capital budget.
• It’s Chapter 71, Section 7C, dating from 1976, which limits the ability of the state to provide funding
• There are currently about 26,000 double poles across the state.

Committee: Joint Joint Committee on Municipalities and Regional Government

Summary: The hearing focused on Governor Healey and Lt. Gov. Driscoll’s Municipal Empowerment Act, with administration officials and municipal leaders broadly supporting the bill as a package of tools to help cities and towns manage rising costs, staffing shortages, and service demands. The administration highlighted procurement reforms, including raising Chapter 30B advertising thresholds, clarifying cooperative purchasing, and removing the Commbuys notice requirement; permanent authority to amortize emergency-related deficits over three years; expanded authority and enforcement for removing double poles; continued flexibility for hybrid and remote public meetings; regionalization options such as regional boards of assessors and intermunicipal agreements; cybersecurity reporting to EOTSS; and several local revenue options and other municipal finance changes. They said the bill was shaped by listening sessions with municipal officials and was intended to increase flexibility, efficiency, and stability without imposing broad mandates. Committee members asked about regionalization, cybersecurity costs, Commbuys, hybrid meetings, and double poles. Administration witnesses said cybersecurity reporting would help the state target resources and that existing Community Compact and capital grant programs, including IT and municipal fiber funding, could support local needs; they said EOTSS would absorb reporting within existing resources. On procurement, they said the Commbuys notice change would be optional and that other public notice methods would remain available. On hybrid meetings, they emphasized flexibility for different types of boards and the burdens a one-size-fits-all mandate could create for small towns and volunteer boards. On double poles, they said the bill’s main change from last session was to give utilities more time and improve the removal process while keeping enforcement mechanisms aimed at speeding removal rather than raising revenue. The Massachusetts Municipal Association, MAPC, the Pioneer Valley Planning Commission, and multiple mayors and town managers testified in support. They described the bill as a practical modernization measure that would help local governments operate more efficiently and respond to fiscal pressure. Witnesses from Northampton, Lynn, Gardner, Cambridge, Franklin, North Andover, Manchester-by-the-Sea, and Ashland praised the hybrid meeting provisions, procurement changes, regional service-sharing, and emergency deficit amortization. Several also urged adoption of local revenue tools, including meals and lodging tax options and other local fees, as ways to preserve services and staffing. No votes were taken during the hearing.

Transcript Highlights:

• The primary funding source for our operational needs is the state highway fund.
• The primary funding source for our operational needs is the state highway fund.
• Yes, the state owns it. The state backs it. Why need a dedicated fund?
• </c> state backs it why need a dedicated fund state backs it why need a dedicated fund I<03:24:09.760
• state or federal funds expenditures that state or federal funds for<04:51:53.600><c> the</c><04:51:54.040

Summary: The committee met with New Hampshire DOT Commissioner Bill Cass and Finance Director Danielle Shandra to review the agency’s FY 2026 budget. Cass gave a high-level overview of DOT’s mission, organization, funding structure, and staffing trends, noting the agency has about 650 employees across five divisions. He said the Governor’s recommended FY 2026 budget totals $95.99 million, essentially flat from FY 2025, with funding primarily from Turnpike funds, Highway funds, federal sources, and a small General Fund share for non-highway units. Members asked about how Turnpike and Highway funds are treated in state accounting, and DOT explained that while they are enterprise funds restricted to their purposes, they are considered unrestricted from the statewide perspective and are appropriated through the budget process. A major topic was staffing and budget targets. DOT said its full-time staffing level has remained relatively flat since 2014 even as vehicle miles traveled increased and vacancies rose. To meet budget targets, the department unfunded seven permanent positions and nine temporary full-time positions, and later noted additional reductions in Finance, including the elimination of two full-time positions, reduced print shop equipment purchases, and deeper cuts to overtime, temporary help, equipment, and supplies in FY 2027. DOT also explained that it shifted funding for one unmanned aerial system position from General Funds to Highway Funds, saying the change was workable because the position supports highway-related work and federal-aid-eligible activities. Members asked for clarification on the state transit operating match, and DOT explained that the Legislature had previously provided about $1.8 million annually in General Funds to help local transit agencies meet federal match requirements, but that funding was not included in this budget. DOT said that could reduce the ability to draw down some federal transit funds, though the impact may not be immediate because those funds can be used over several years. The department also described its unmanned aerial system program, saying it has been used for about five years for mapping, survey work, construction oversight, and storm damage assessment, and that it now has about five drones and two full-time positions supporting the program. DOT said it is expanding cross-training so more employees can operate drones without adding positions. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• We know long-term sustainability of state funding of higher education, with potentially decreasing state
• This memorandum provides information regarding funding, including state funding and other appropriations
• And really, a portion of us are general funds, state appropriated general fund.
• Then we have state funding, and this is a mix of the State Energy Research Center, as well as, on occasion
• This was funded through the State Energy Research Center.

Summary: The committee first reviewed the 2024-25 tuition waiver report for the North Dakota University System. Staff explained that waivers were reported for degree-seeking students and broken out by residency, institution, and waiver type. Members asked about partial versus full waivers, institutional discretion, athletic waivers, and whether campuses have published guardrails or transparency requirements. Staff said most waivers are set by institutions, with some statutory and board-required categories, and that athletic waivers are a small share of total waiver dollars. The report showed total gross tuition of $354.5 million, tuition waived of $38.9 million, and 11,193 of 42,040 students receiving some waiver. Members also discussed how waivers affect net tuition revenue, housing and food collections, and whether campuses are using waivers strategically compared with scholarships and other funding sources. The committee then heard a presentation on tuition rates by campus and State Board policy. Staff explained the board’s tuition factors for resident, Minnesota reciprocity, contiguous-state/U.S. nonresident, and international students, and noted that campuses often seek exceptions based on program-specific competition and enrollment goals. Members asked whether rates are based on cost or competition, and staff said campuses typically bring forward estimates and market comparisons when requesting special rates. The presentation also reviewed general fund appropriations versus net tuition revenue by campus, and members discussed how local tuition decisions and waivers do not directly affect the state funding formula, though they do affect institutional revenue and reserves. Questions were also raised about the Higher Learning Commission’s financial composite indicator and how it differs from the more intuitive reserve and revenue figures. The committee next received a broad overview of non-higher-education entities affiliated with the State Board of Higher Education, beginning with NDSU agriculture-related units. Dr. Greg Lardy described the State Board of Agricultural Research and Education, the NDSU Extension Service, the Agricultural Experiment Station, and the branch research centers, emphasizing their statewide role in crop and livestock research, extension education, and county-based outreach. He outlined funding mixes for extension, the experiment station, and branch stations, noting that grants and contracts support both research and education, while the agronomy seed farm is self-funded through seed sales. Members asked about the new and vacant FTE pool, R1 research status, matching requirements for grants, and whether state appropriations count toward research expenditures. Dr. Lardy also highlighted major research impacts, including crop varieties, virtual fencing, AI-assisted weed control, and NDAWN weather data. The Northern Crops Institute and the Upper Great Plains Transportation Institute also presented. NCI described its role in market development, technical services, and education for regional agriculture, its governance through the Northern Crops Council, and its funding from state appropriations, other states, and earned revenue. Members asked about the source of out-of-state funding, intellectual property, and the institute’s international reach. UGPTI then outlined its transportation research, federal and state funding structure, and work on road and bridge condition assessments, travel demand modeling, and workforce training. No votes were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• As you know, New Mexico has been covering SNAP benefits with $30 million in state funds, with that funding
• State goals with funding.
• Using state funds to cover two weeks of SNAP benefits.
• Other ones—Department of Transportation—we rely Heavily on state and federal funding for roads.
• We are one of the largest states that receive this funding.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• the state.
• And so our funding that we get from the state of California is quite restrictive in that we have to provide
• And so we're lacking some of that funding for outreach funding.
• And so our funding that we get from the state of California is quite restrictive and that we have to
• And so we're lacking some of that funding for outreach funding.

Summary: The committee held an information hearing on California’s economy and household affordability, with the first panel focusing on inflation, housing, energy, wages, and the likely effects of new federal tariff policy. PPIC’s Sarah Bone said Californians remain deeply pessimistic about the economy, with inflation the main driver of concern; she noted prices are still about 23% higher than in January 2020, with especially large increases in food, energy, and housing costs. LAO’s Brian Euler emphasized that housing is the largest household expense and pointed to insurance, electricity, gasoline, and health care as other major cost pressures, urging the Legislature to review whether existing policies are actually reducing costs and to consider studies of why recent housing laws have not produced more units. UC Davis economist Catherine Russ warned that tariffs on China, Canada, Mexico, and potentially broader imports could raise consumer prices, disrupt supply chains, and hurt California exporters, farmers, and small businesses; she suggested monitoring prices, strengthening food assistance, and preparing transition support for affected workers and producers. Members pressed the panelists for concrete, near-term policy ideas, especially on housing and tariffs. Questions centered on whether accessory dwelling units are making a meaningful dent in affordability, how to improve implementation of pro-housing laws at the local level, and how to measure the impact of tariffs on consumers, health care, and agriculture. Panelists said ADUs help but are limited, that state laws can be undermined by local implementation and litigation, and that tariff effects may show up quickly in prices and later in hiring and investment. Several members stressed that the tariff issue is not a minor disruption for constituents and asked for more data on consumer impacts, food aid needs, and crop-specific farm losses. The second panel shifted to regional economic development and small business support. Go-Biz’s Derek Kirk described California Jobs First and the state economic blueprint as a first-in-decades, regionally informed strategy to create good-paying jobs, support key sectors, and align workforce and business development across 13 regions. The California Association for Local Economic Development’s Gerbach Sahota argued that local governments need practical tools, stable policy, and stronger partnerships with the state, while warning that prosperity is not always perceived as shared and that rural communities can be left behind. He urged the Legislature to use hearings, local input, and existing funding streams more effectively, including for recovery and infrastructure. David Fitzgerald of the Small Business Development Centers said California’s SBDC network serves hundreds of thousands of clients, many of them women and historically underrepresented entrepreneurs, and has generated billions in economic impact, capital access, revenue, and jobs. He said the biggest gaps are outreach to the state’s many self-employed businesses with no employees, better labor data on those workers, and more flexible support for direct services. Committee members then asked what small businesses need most in the face of inflation and tariff shocks, including lower licensing costs and other relief, and the discussion continued on how to better target state support to businesses and households under pressure.

Transcript Highlights:

• Uh fund to a special non-lapsing fund.
• to fully fund the fund with the that to fully fund the fund with the appropriate<01:41:55.119><c> um
• and I think that problem in the state and I think that the<01:48:45.280><c> funding</c><01:48:45.920
• > state says, the EPA says, "Hey, state of state says, the EPA says, "Hey, state of New<03:26:52.239>
• </c> other state very few other state other state very few other state agencies<03:48:37.840><c> regulate

Committee: House Resources, Recreation and Development

Transcript Highlights:

• Now, however, the state budget allocates the CSU lump sum funding, which the segment has broad discretion
• State employees.
• AB 2634 aligns high-road funding requirements with California's vision for a true high-road workforce
• AB 2634 aligns high-road funding requirements with California's vision for a true high-road workforce
• High road means quality jobs.

Summary: The committee heard a series of bills focused largely on labor, education, workforce, and public employment issues. AB 65 would provide public school employees up to 14 weeks of leave with full benefits for pregnancy and pregnancy-related health issues; supporters said current rules force educators to exhaust sick leave and suffer long-term retirement penalties, while the bill’s author noted it mirrors budget trailer language. AB 1818 would change HEERA procedures for CSU bargaining by shifting certain renegotiation disputes to PERB; Teamsters and other labor groups supported it as a way to stop CSU from unilaterally refusing agreed raises, while CSU moved from opposed to neutral after amendments. AB 1940 would explicitly reference menopause, perimenopause, and postmenopause in workplace protections; supporters said it would clarify rights and improve awareness, while business opposition argued existing reasonable-accommodation law already covers these issues and warned of expanded liability. AB 1534 would add guardrails for new short-term Workforce Pell programs, including tuition caps, limits on income-share agreements, and transparency around partnerships with unaccredited entities; the author later said the bill would be amended to include private institutions. AB 1896 would bar people who participated in immigration enforcement from holding California public jobs during a specified period; supporters framed it as a public-trust measure, while police and public-safety groups opposed categorical exclusion and urged a more individualized vetting approach. AB 2300 would streamline distribution of WIOA workforce funds and reduce delays in local workforce board contracting, with supporters emphasizing faster service delivery and no reduction in accountability. AB 2223 would require CDCR to report standardized data on contracted medical and mental health staffing, vacancies, and costs, following an audit that found heavy reliance on contractors and poor transparency. AB 2483 would create a pathway and certification for formerly incarcerated firefighters to move into firefighting careers after release, with strong support from the author and witnesses who described the work as a real career path and reentry opportunity. AB 2142 would require temporary classified school employees working more than 75% of the school year to receive permanent-employee benefits and protections; school administrators and community college groups opposed it as too rigid for grant-funded and fluctuating positions. AB 2367 would require quarterly reporting from state-run health care facilities on vacancies, overtime, registry/contract staffing, and missed staffing minimums, building on state auditor recommendations; health care workers supported it as a transparency and accountability measure. Several measures were voted out of committee or placed on call. AB 1818, AB 1534, AB 2300, AB 2483, and AB 2223 all received do-pass votes to the Senate Appropriations Committee, though each was placed on call after roll call. AB 65 and AB 1940 also advanced on do-pass motions but were placed on call. AB 2142 received a do-pass vote with opposition and was placed on call. S.J.R. 15, a resolution urging Congress to protect California employers from higher federal unemployment taxes tied to the state’s UI debt, drew divided testimony: business groups supported it, while labor and some members argued California should solve the problem itself and keep the unemployment system solvent; the resolution was also placed on call. The transcript also included committee discussion about working with authors on amendments, especially for AB 1940 and AB 1534, and several members noted support or co-authorship while raising concerns about implementation details and fiscal impacts.