Transcript Highlights:

• The details of the loan are that CalSTA is required to loan up to $590 million to the Metropolitan Transportation
• Once we've loaned this money, because here's my struggle with more and more money being now loaned, is
• say, well, the loan is forgiven now?
• Sure, I think that, um, “For this loan? Sure.
• “The loan terms are tight on the AB 117 loan, and we have securitization from existing funding streams

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• So, the two different factors and the initial factor is guaranteeing financial aid if eligible to the
• **Senator Hinojosa.** As it relates to the mental health professional loan repayment program, can you
• seen a positive impact, and there are several mental health professionals taking advantage of the loan
• So, we know that students are leaving college with student loan debt.
• The loan repayment program is $1.5 million.

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• update the list of eligible debt repayments to clarify that the Rainy Day Fund can be used for budget loans
• Proposition 98, settle-up obligations,... ...clarify that the Rainy Day Fund can be used for budget loans
• future, we also continue paying down critical state liabilities, including our unemployment insurance loan
• The ACA amendment does not make any direct changes to the calculation of the minimum guarantee.
• the main reason why I think that is because if we were going to pay for the unemployment insurance loan

Summary: The Assembly Budget Subcommittee on Accountability and Oversight heard ACA 20, the Safe for California Futures Act, a constitutional amendment to strengthen the state’s Budget Stabilization Account (rainy day fund). The authors, Assembly Members Gabriel and Valencia, said the measure would raise the reserve cap from 10% to 20% of General Fund revenues, change how reserve deposits are treated under the Gann limit so deposits would not count against the spending cap until withdrawn, and update eligible debt repayments to include items such as budget loans, Proposition 98 settle-up obligations, and unemployment insurance debt. They emphasized that the proposal was intended to protect schools and core public services and to help California better withstand revenue volatility and future downturns. Committee discussion focused heavily on the technical effects of the measure, especially its interaction with Proposition 98 and the Gann limit. LAO and Department of Finance staff explained that Prop. 98 funding would not be changed directly, that the reserve deposits would be treated as exclusions from the appropriations limit, and that withdrawals would count when spent. Members asked about current reserve levels, mandatory deposits, and whether the measure would create more room for discretionary spending; supporters argued it would simply allow the state to save more in good years, while one member expressed concern that it could function as a slush fund and expand spending opportunities. Several members cited recent budget volatility, record revenues, and the need for stronger reserves, while others stressed that the measure should be understood as a future-oriented savings reform rather than a response to this year’s budget choices. Public testimony was uniformly supportive. California Forward, Elevate California, and the California Chamber of Commerce all backed the proposal, with the Chamber noting support for the policy and highlighting the importance of addressing unemployment insurance debt for small businesses. The chair concluded by thanking the authors, staff, and witnesses, and said ACA 20 was expected to move to the Assembly floor the next day.

Transcript Highlights:

• We do it upon receipt, and I think that's really important with the priority of, you know, loans and
• If there is a delay, that could potentially, after I think 30 days, we could have to start that loan
• And then does the person who steals the house continue to pay the loan? That is a great question.
• I mean, the purpose of title insurance is a guarantee of a clean chain of title, a clean transaction.
• And so when our under... ...is a guarantee of a clean chain of title, a clean transaction.

Committee: House Financial Institutions

Transcript Highlights:

• We got connected with the climate, California Climate Tech, and we got you know, a loan approved, you
• loan, enough equity, enough revenue, and of course it being an R&D facility, you know, we didn't have
• So we still have that guarantee but we haven't been able to use it with any bank without enough MOUs
• We work with the infrastructure bank, iBank, to manage the the Small Business Loan Guarantee Program.
• of loans.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• The other program is one where the DED guarantees a portion of the loans, up to 80%.
• </c> deed guarantees a portion of the loans deed guarantees a portion of the loans up<00:13:16.880><c
• And that was on a bridge loan.
• And that was on a bridge loan. half%. And that was on a bridge loan.
• loan in 2021.

Bills: HF3707 , HF3732 , HF2581 , HF3731

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Summary: The committee first adopted the minutes from February 26 and then heard House File 2581, authored by Representative Frazier, which sought $1 million for Fortis Capital, a nonprofit economic development lender. Frazier and Fortis CEO Brian Smith described Fortis as a gap-financing lender that helps underserved entrepreneurs who cannot meet traditional bank underwriting standards. They said the organization has made 37 loans totaling more than $4 million since 2021, leveraged another $29.5 million, and created 314 jobs. Smith said Fortis typically charges around 6.5% interest, has had two defaults, and uses a revolving loan fund model that recycles repayments; members discussed how the proposal fits with other state economic development programs and whether Fortis should instead be part of a competitive grant process. The chair laid HF 2581 over for possible inclusion in a budget bill. The committee then heard House File 3707, brought by Representative Berg, which would extend confidentiality protections to unemployment insurance and paid leave judges and related staff by adding them to the definition of judges for purposes of protecting personal information. Berg and testifiers from the Department of Economic Development and MAPE said the bill responds to harassment and safety concerns, including threats, doxxing, and an attack near an office, and is intended to protect people making sensitive determinations. MAPE supported the bill as an update to existing protections for similar workers. Members raised concerns that the bill’s language was too broad, especially the reference to the paid leave division, and questioned whether it should cover only judges or also call-center and other staff. Department and committee members agreed the language likely needed narrowing and discussed possible amendments and whether to move the bill to Judiciary and then revisit it. No final vote was taken on HF 3707 during the discussion, and the bill remained under consideration for further language work.

Transcript Highlights:

• With enforcement, anyone with a disability that requires a mobility support device can guarantee that
• </c><00:08:28.000><c> that</c> support device can guarantee that support device can guarantee that they'll
• Um, I mean, I would hope that every driver who's loaning out their car knows who they're loaning it to
• out their car knows who who loaning out their car knows who who they're<00:20:38.159><c> loaning</c>
• Um otherwise it's they're loaning it to.

Transcript Highlights:

• On page 11, this is Opportunity Enterprise Board loan terms.
• The max loan we can give is 17.5 million. We do have an equity requirement of 10.
• We look for debt service coverage of 1.35, a minimum loan-to-value of 85.
• When do we expect to start seeing some of the loan money being repaid? Mr.
• So, I would say repayment of loans will probably take place in the next couple of years.

Committee: House House Appropriations & Finance

Transcript Highlights:

• is under subsection G of section 313. loan available from July and we have it loan available from July
• </c> program guarantee. program guarantee.
• :57:20.160><c> is</c> foundation program guarantee is foundation program guarantee is different<00:57
• </c> program guarantee program guarantee and<00:57:32.880><c> special</c><00:57:33.280><c> education<
• ,</c> top four in any metrics from HUD loans, top four in any metrics from HUD loans, household<01:48

Committee: Joint Select Committee on School Finance Recalibration

Transcript Highlights:

• implement these schemes, the Department dramatically increased the scope and authority of the Student Loan
• Your experience overseeing SBA loans will be a great asset as the Department looks to reform a very broken
• student loan program.
• Your position on the Public Service Loan Forgiveness Program?
• So IDEA guarantees children with disabilities a free, appropriate education.

Committee: Senate Health, Education, Labor, and Pensions Committee

Keywords: educational reform, federal grants, bureaucracy, wealth disparity, public testimony

Summary: The committee meeting engaged in discussions focused primarily on educational reform, the influence of federal grants on local education systems, and the growing disparities in wealth and access to quality education. Members expressed concerns about the bureaucracy surrounding federal funding that hampers schools' ability to obtain necessary resources for improvement. Several members highlighted personal anecdotes from constituents, emphasizing the urgent need for reform to help students succeed in both K-12 and higher education environments. The meeting included public testimonies that provided insights into various community perspectives on these pressing issues.

Transcript Highlights:

• Seven of these hospitals actually also hold a distressed hospital loan from the Distressed Hospital Loan
• Loan Program.
• So is this a loan authority?
• Another loan, because it was described in a different way, but it's not strictly loan authority.
• I'll speak to the California Guaranteed Income Pilot Program.

Summary: The committee heard opening budget remarks from the Department of Finance and the Legislative Analyst’s Office on the May Revision for Health and Human Services. Finance said the proposal significantly reduces projected out-year operating deficits through a mix of revenue increases and program cost reductions, while the LAO warned that even with booming revenues the state still faces a structural deficit and should prioritize reserves and avoid new ongoing commitments. The chair and members echoed concern about cuts to vulnerable populations, but also noted the need to maintain the overall level of budget solutions and add to reserves. The hearing then moved through a series of CalHHS and HCAI proposals, mostly held open after presentation. CalHHS requested additional legal support to respond to federal H.R. 1-related issues and a net-zero transfer of positions for a shared eligibility/data-sharing platform. Other items included ongoing funding for the 988 Behavioral Health Crisis Service Fund and a request for EMSA to fund maintenance of its enterprise data management system. HCAI presented proposals for hospital fair pricing implementation, the data exchange framework, the all-payer claims database, CalRx insulin development, the diaper access initiative, distressed hospital grants, opioid settlement fund reversion, and the Rural Health Transformation Program. Members questioned funding sources, special fund use, contracting exemptions, timelines, and whether some proposals should be more targeted or supported by alternative funding. A major discussion centered on HCAI’s diaper access initiative and the use of a Public Contract Code exemption to continue contracting for free diapers distributed through hospitals. The chair and some members criticized the optics of the selected vendor and questioned the lack of an income threshold, while HCAI said the program was designed to be universal and administratively simple, with future phase-two direct-to-consumer purchasing to be handled by a different vendor. Another extended exchange focused on distressed hospital funding, where HCAI said the May Revision would provide up to $50 million for hospitals at immediate risk of closure, but members argued the repeated annual need shows a structural problem and asked for broader reforms to hospital payment and care transitions. The final major topic was the Behavioral Health Services Oversight and Accountability Commission’s budget. The Commission opposed the May Revision’s reduction of the Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy contracts, arguing both are core Proposition 1 tools for statewide innovation and community engagement. Finance responded that the proposal is within Proposition 1’s allowable maximums and that prior unspent appropriations could be redirected if the Legislature wanted to restore the full amount. No votes were taken; items were generally held open for later action.

Transcript Highlights:

• update the list of eligible debt repayments to clarify that the Rainy Day Fund can be used for budget loans
• Proposition 98, settle-up obligations,... ...clarify that the Rainy Day Fund can be used for budget loans
• future, we also continue paying down critical state liabilities, including our unemployment insurance loan
• It makes no changes to the calculation of the minimum guarantee.
• the main reason why I think that is because if we were going to pay for the unemployment insurance loan

Transcript Highlights:

• We will hear the proposal and the assumptions that are impacting the Proposition 98 guarantee.
• guarantee by the amount of projected property tax losses resulting from the L.A. fires.
• We have recommended rejecting the loan repayment proposal.
• That's the Loaning and Lending Program for the state.
• Is there any way to guarantee that that's going to be honored? Is there any risk?

Transcript Highlights:

• loans are not loans.
• New York also sued MoneyLion, which advertises $500 loans, but limits loans to $100 or even $25 for some
• to get the loan they desired.
• apps increased after people began using these earned wage payday loan apps.
• apps increased after people began using these earned wage payday loan apps.

Committee: Joint Joint Committee on Financial Services

Summary: The committee heard testimony on several financial services bills, with the main focus on cryptocurrency kiosk regulation, financial literacy, and earned wage access. Legislators and witnesses described widespread crypto-related scams targeting older adults, often involving impersonation, urgency, spoofed phone numbers, and rapid transfers through kiosks that are difficult to trace or recover. Supporters of the kiosk bills said Massachusetts needs licensing, registration, transaction limits, warning notices, receipts, refund protections, and other safeguards; some also urged a “pause” or hold on transactions to give victims time to reconsider and allow law enforcement to intervene. The Attorney General’s office, AARP, local law enforcement, and several prosecutors and sheriffs backed the consumer-protection approach, while Bitcoin Depot supported a narrower regulatory framework but opposed low fee caps and strict daily limits, arguing they would function like a ban and reduce legitimate use. Witnesses from Waltham police, Middlesex and Essex County law enforcement, and the AG’s office said crypto scams are growing quickly, losses are often unrecoverable once funds move, and current tools are limited. They described cases involving elderly victims losing thousands of dollars, and said warnings alone are not enough because scammers keep victims on the phone and guide them through the process. Some witnesses said a temporary hold or refund mechanism has worked in at least one case, while others emphasized that transaction limits and visible disclosures could reduce harm even if they do not stop fraud entirely. The AG’s office also said it would submit written opposition to separate earned wage advance legislation, while DailyPay testified in support of that bill, saying earned wage access helps workers bridge short-term gaps without debt or credit reporting. The committee also heard support for mandatory financial literacy education from Representative Jim Hawkins, who said high school students need instruction on credit, debt, and inflation before they enter adulthood. In addition, the committee took testimony on litigation financing bills from insurance industry representatives, who argued for disclosure and regulation of predatory litigation lending and warned about foreign interference and reduced plaintiff recoveries. No votes or final actions were taken during the hearing; members asked questions throughout, and the chair noted the need to move testimony along because of time constraints.

Transcript Highlights:

• We got connected with California Climate Tech, and we got a loan approved for 80% to $5 million.
• loan, enough equity, enough revenue, and of course, being an R&D facility, you know, we didn't have
• So we still have that guarantee, but we haven't been able to use it with any bank without enough MOUs
• We work with the Infrastructure Bank, I-Bank, to manage the Small Business Loan Guarantee Program.
• loans.

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact held an informational hearing in San Diego focused on “Making Sense of California’s Economy: Real Cost Pressures and Household Impacts Facing San Diego.” Chair Salas and Assemblymember Darshana Patel opened by emphasizing affordability, housing, and the importance of bringing state policy discussions into the community. The first panel featured leaders from Cal State San Marcos and the San Diego Regional Economic Development Corporation, who described the region’s innovation ecosystem, the university’s role in social mobility and workforce development, and the importance of partnerships with K-12 schools, community colleges, military installations, and industry. They also highlighted regional strengths in life sciences, aerospace and defense, advanced manufacturing, clean energy, and venture-backed innovation, while warning that housing costs, federal research cuts, permitting delays, and small-business fragility threaten growth and talent retention. Committee members asked about collaboration among higher education institutions and what state policy changes could help. Panelists said the region’s universities are complementary rather than competitive and stressed the value of public-private partnerships, social innovation, and aligning academic programs with employer needs. On policy, they urged faster permitting, possible regulatory sandboxes, stronger research investment, support for cross-border trade and manufacturing, and more housing affordability to keep workers in the region. The second panel centered on small business and entrepreneurship, with testimony from Hydrostasis founder Dr. Debbie Chen, Amai co-founder Sven Davison, and Asian Business Association San Diego CEO Jason Pagal. Chen described building a hydration-monitoring wearable, the barriers women founders face in accessing capital, and the importance of SBDC, Stella Foundation, and university internship support. Davison described Amai’s edible cup business and how tariffs, supply-chain costs, and financing constraints forced the company to pivot manufacturing plans. Pagal presented survey data showing high relocation intent, difficulty hiring, and low confidence among businesses, and recommended expanded technical assistance, regional cost-of-living adjustments, and small-business affordability zones. During questioning, members discussed targeted procurement and local incentive models, the role of SBDC and other support networks, and how to better tailor state programs to local conditions. Public comment came from the California Southern Small Business Development Corporation, which stressed that access to affordable capital remains a major challenge and noted the volume of loan guarantee requests coming from San Diego. No formal votes were taken; the hearing concluded with closing remarks from both members underscoring the need to use local testimony to shape future state policy and support California’s economy, families, and small businesses.

Transcript Highlights:

• One's a general fund loan, one moved from a general fund loan to an iBank loan consistent with statute
• Loans aren't free.
• We should not be funding or paying for a loan, but we also should not be making any money off of a loan
• I left and We added to the loan to get another smaller loan.
• Because we only have six years left in this loan to pay this loan.

Committee: House Education

Transcript Highlights:

• If they were guaranteed healthy meals through the local Farm to School Meal initiative as part of the
• If they were guaranteed healthy meals through the local Farm to School Meal initiative as part of the
• If they were guaranteed healthy meals through the local Farm to School Meal initiative as part of the
• Representative Loan: aye. Representative Peruso: no.
• loan I noting Representative<00:30:42.120><c> peruso</c><00:30:43.000><c> no</c><00:30:43.919><c> and

Committee: House Agriculture & Food Systems

Transcript Highlights:

• One quick idea is what if there is a state-backed guarantee on permanent debt?
• And that could help lower the permanent loan costs.
• One quick idea is what if there is a state-back guarantee on from the state of California.
• One quick idea is what if there is a state-back guarantee on permanent debt?
• And that could help lower the permanent loan costs.

Transcript Highlights:

• loans, wrapping bonds.
• guarantee would go a long way in action. ...support through a loan guarantee would go a long way in
• Like Senator Corsese mentioned, this isn't—loan guarantees aren't really a new concept to the state,
• guarantee, we get a bigger mortgage.
• guarantee, we get a bigger mortgage.

Summary: The committee heard several housing bills, with the longest discussion focused on SB 79, which would allow more housing near high-capacity transit stops and on transit agency-owned land. The author and supporters argued it would address California’s housing shortage, reduce vehicle miles traveled, and strengthen transit systems by putting more residents near rail and rapid transit. Supporters included housing advocates, local officials, environmental groups, and transit-oriented development organizations. Opponents, including many cities, the League of California Cities, and some tenant and legal advocacy groups, raised concerns about affordability requirements, displacement, demolition protections, local control, and the bill’s interaction with existing local planning efforts. The committee discussed amendments to strengthen anti-displacement protections, minimum density, affordability standards, and a local flexibility alternative, and SB 79 was moved out on a due-pass-as-amended vote of 8-1, with one member not voting. The committee then took up SB 21, which would amend the Housing Crisis Act to allow limited unit reductions when converting deed-restricted SRO buildings into larger, more livable affordable units with private bathrooms, kitchens, and supportive services. The author and nonprofit housing providers said many SRO buildings are financially unsustainable and that the bill would preserve deeply affordable housing while improving conditions for residents. There was no organized opposition testimony at the hearing, though one business property group registered opposition. Members expressed support for the preservation-focused approach, and SB 21 was approved on an 8-0 vote and sent to the Assembly Committee on Local Government. Next, SB 92 was heard, a measure to close a density bonus loophole by limiting how much additional commercial floor area a project can receive and preventing the law from being used to justify very large nonresidential projects with only minimal affordable housing. The author cited a San Diego project as an example of the problem, and the City of San Diego supported the bill as a reasonable fix. Several labor and housing groups also supported it, while no formal opposition witnesses testified. The committee accepted amendments, members praised the effort to curb abuse while preserving feasibility, and SB 92 passed on a 7-0 vote. Finally, the committee began hearing SB 522, which would extend just-cause eviction protections to units rebuilt after disaster if they had previously been covered by the Tenant Protection Act. The author and the Los Angeles City Attorney said the bill would help preserve rental housing in disaster-affected communities, especially after the Pacific Palisades fires, and would not create new rent control. Opponents, including apartment, realtor, and property owner groups, argued it would add burdens to rebuilding and could discourage reconstruction. Members raised questions about whether existing law already protects returning tenants and whether the bill was necessary, and the hearing continued into committee discussion.

Transcript Highlights:

• Hi. is that it's essentially a loan. So what is that it's essentially a loan.
• So an aye vote is to approve this loan. A no vote is to disapprove this loan. Thank you, Mr.
• Speaker. loaned from the previous budget. Um it's loaned from the previous budget.
• </c> no vote is to disapprove this loan. no vote is to disapprove this loan.
• </c> down to 2.5% guarantee. down to 2.5% guarantee.