Transcript Highlights:

• If we are poised to give the PUC more power with regards to data centers, what is the impact?
• Madam Chair, members, John White with CERT and the Clean Power Campaign.
• Marissa Hagerman with Tratton Price Consulting, on behalf of the American Clean Power Association, in
• AB 1191 would undermine this goal, including existing large hydroelectric output as RPS-eligible would
• And Edison actually has a pending large power dynamic rate application that CLICA strongly supports.

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on grid reliability, affordability, clean energy infrastructure, and industrial decarbonization. AB 222, by Assemblymember Bauer-Kahan, would require more data reporting on data centers and aim to prevent ratepayers from bearing related grid costs; supporters said better information is needed to plan for rapidly growing electricity demand from AI and data centers, while opponents warned about privacy, security, trade-secret, and cost-shifting concerns. The bill passed the committee on a 13-4 vote, with the roll left open for absent members. AB 941, by Assemblymember Bonta, would impose a 270-day timeline for CPUC review of priority transmission projects to speed clean-energy infrastructure buildout. Supporters argued that transmission delays are slowing California’s climate goals and raising costs, while opponents raised concerns about CEQA process, staffing, and prioritization. The bill passed 15-0. AB 1191, by Assemblymember Tangipa, would make existing large hydroelectric facilities eligible for the Renewable Portfolio Standard; supporters framed it as a way to lower rates and ease affordability pressures, while opponents said it would undermine the purpose of the RPS by substituting existing resources for new renewable development. That bill failed on a 4-11 vote. AB 1280, by Assemblymember Garcia, would expand state grant programs to support thermal energy storage projects for industrial decarbonization. Supporters said it would help modernize manufacturing, cut pollution in disadvantaged communities, and preserve jobs, with broad support from environmental and clean manufacturing groups and no opposition testimony. The bill passed 17-0. AB 1117, by Assemblymember Schultz, would require the CPUC to offer optional dynamic electricity rate tariffs for customers to shift usage away from peak periods; supporters said it could lower bills and improve grid efficiency, while utilities said they were not opposed to the concept but wanted more flexibility and time in the regulatory process. That bill passed 14-0. The committee also approved its consent calendar and other noncontroversial items, with several measures moving forward unanimously.

Transcript Highlights:

• </c> power, which law enforcement can do. power, which law enforcement can do. risk<00:25:29.600><c>
• </c><00:29:07.919><c> Um,</c> alone was such a powerful story. Um, alone was such a powerful story.
• The maximum, as I recall, the statute says or the bill says you're going to impose the maximum statutory
• So the maximum the judge could do is up to the statutory maximum.
• So the maximum to the statutory maximum.

Bills: HF1567 , HF2809 , HF3380

Committee: House Public Safety Finance and Policy

Keywords: public safety officer, peace officer, correctional officer, law enforcement, police privacy, officer safety, doxxing, personal information, data privacy, government data practices, private data, internet posting, online disclosure, residential address, phone number, email address, family member protection, child safety, school information, public records

Transcript Highlights:

• </c><00:36:53.800><c> of</c> But when we talk about the power of But when we talk about the power of
• They don't have the political power of being in one place and having voting power.
• </c><01:58:15.800><c> of</c> They don't have the political power of They don't have the political power
• . power. power.
• We're told that these folks don't have political power.

Summary: The House convened with 58 members present and seven excused, establishing a quorum, and approved the April 15, 2026 journal as corrected. The chamber then moved through announcements recognizing visiting railroad workers, LIUNA Local 720, Colorado West Christian Schools, Religious Freedom Day, and several school and community groups, along with birthday acknowledgments and committee schedule notices. The House also adopted a motion to remove House Bill 1245 from special orders and returned it to the general orders second reading calendar, and set House Bills 1290, 1312, and 1321 as special orders. The House adopted Senate Joint Resolution 18, recognizing Nowruz and expressing support for the human rights and fundamental freedoms of the Iranian people, including the Women, Life, Freedom movement. Supporters described Nowruz as a holiday of renewal and resilience and tied the resolution to solidarity with Iranian communities. Representative Zokaie also spoke at length about the personal impact of war on Iranian families and urged a vote. The resolution passed 59-2 with four excused. The chamber then considered several bills in committee report. House Bill 1290, concerning assault and clarifying sentencing, was amended in Judiciary to remove the medical professional provision and passed after testimony emphasizing strangulation as a serious warning sign in domestic violence cases; it then passed the House. House Bill 1312, dealing with peace officer participation, POST Board composition, academy training, and related grants, was amended for clarity and passed the Judiciary report and then the bill. House Bill 1321, modifying the School Security Disbursement Program, had the Education Committee report defeated, but amendments were adopted to broaden eligible service providers and adjust funding language; the bill then passed as amended.

Transcript Highlights:

• substitute applies to covered providers, which are defined in the bill in relation to their computing power
• whether content was created or altered by the covered provider's generative AI system, and it must output
• at the time that output is generated.
• For students, AI-powered chatbots are not simple homework helpers.
• For students, AI-powered chatbots are not simple homework helpers.

Summary: The committee held public hearings on three AI-related bills. HB 1170 would require large generative AI providers to offer provenance detection tools and include latent and manifest disclosures in AI-generated or altered content; supporters said it is needed to combat deepfakes and disinformation, while opponents raised First Amendment, technical feasibility, and compliance concerns, and the Attorney General’s Office said the bill needs clearer provider definitions and enforcement language. HB 2157 would regulate high-risk AI systems used in consequential decisions such as employment, housing, health care, and parole by requiring risk management, impact assessments, disclosures, and a private right of action; the sponsor said it is needed to address algorithmic discrimination and consumer protection, while industry and civil liberties groups warned it is overbroad, burdensome, and constitutionally problematic, and the AG’s Office supported the concept but asked for changes to enforcement and the right-to-cure provisions. HB 2225 would regulate AI companion chatbots by requiring disclosures, limits on manipulative engagement, and safeguards for minors and self-harm; the sponsor, governor’s office, AG’s Office, researchers, and several families testified in support, citing harms to youth and real-world suicides, while industry groups supported narrower protections but objected to the private right of action and scope. No votes were taken during the hearings.

Transcript Highlights:

• So the number of people exposed to the price increases that the LCFS puts on power cars decreases over
• So this is why all those estimates are, I would view them as high-bound estimates, the sort of maximum
• And then on the bottom, I have $250 a ton, which is sort of about what the maximum carbon price would
• So it's a powerful program. We appreciate it. The first all-electric transit fleet in the country.
• So it's a powerful program.

Summary: The hearing focused on California’s Low Carbon Fuel Standard (LCFS), its role in reducing transportation emissions, and whether its costs at the pump are justified by its climate, air quality, and investment benefits. The co-chairs and several members framed the discussion around affordability and asked whether the program’s benefits, including cleaner fuels, zero-emission vehicle infrastructure, and public health gains, outweigh any added fuel costs. Members also raised concerns about how the program is understood by the public and whether its benefits are being communicated clearly. CARB and CEC officials explained how LCFS works as a market-based program that sets declining carbon-intensity targets, generates credits for lower-carbon fuels, and requires deficit holders to buy credits or otherwise comply. They said the program has driven billions in annual private investment, expanded alternative fuels, supported EV charging and hydrogen stations, and helped reduce emissions and local pollution. They also argued that LCFS credit prices are not the main driver of gasoline prices, that the recent amendments added only about seven cents per gallon, and that crude oil, refining, and distribution costs account for most pump price variation. Committee members pressed witnesses on credit banking, market effects, the recent rule updates, additionality, and whether the program’s benefits are concentrated in-state or out-of-state. CARB said banking helps keep the program cost-effective and provides investment certainty, while the Energy Commission said LCFS-related costs are relatively stable and separate from the broader gasoline market. The panel also discussed how the 2025 amendments were shaped by the state’s 2030 and 2045 climate goals and by uncertainty over federal actions. No votes or formal actions were taken during the portion of the hearing provided.

Transcript Highlights:

• You know, and year over year, the output went up by $400 million.
• Consider establishing a maximum cost of any non-state project.
• And I think we're already starting to see the output.
• Full powers. Okay. No questions to this point. Oh, that's a feature.
• Full powers. Okay. No questions to this point. Oh, that's a feature.

Summary: The committee met for an informational hearing focused largely on the state capital outlay process and House Bill 2. Roger Husser and Matt Baker of the Division of Administration/Facility Planning and Control described how the office prepares and administers the capital outlay bill, said the bill has grown substantially over five years, and argued that recent changes in culture, staffing, project management, cash-flow analysis, and use of third-party support have more than doubled project expenditures and improved delivery. Members asked about the use and cost of third-party project managers, delegation of smaller projects to agencies, hiring difficulties, and whether the changes represented better interpretation of existing law versus statutory changes. Husser said some statutes were amended, some internal customs were removed, and the office would provide a list of those changes. He also explained that the office is trying to move away from overly rigid practices and toward faster project completion while still following public-bid and oversight rules. A major portion of the discussion centered on the size and structure of the capital outlay bill, especially the gap between Priority 1 cash capacity and the much larger Priority 5 backlog. Husser said the current annual Priority 1 limit is tied to construction inflation and is about $574 million, with additional surplus funds also available, but that the bill contains far more Priority 5 funding than can realistically move in a five-year plan. He and members discussed dormant projects, scope creep, legacy projects that have sat in the bill for years, and the problem of false expectations for non-state entities. Proposed solutions included limiting Priority 5 to five times Priority 1, requiring annual re-endorsement by members, setting district or project caps for non-state projects, requiring time limits and reporting for grant-like non-state projects, placing matches in escrow, requiring design readiness before submission, and consolidating the many existing reporting requirements into one clearer report. Members also discussed bundling multiple projects under one agency project, which the House had begun piloting for LSU, UL Lafayette, Southern, and DOTD, and which Husser said could improve flexibility, reduce overappropriation, and better reflect actual spending. Baker then explained cash-flow management and the commitment process, saying FPC now analyzes projects annually to estimate what can actually be spent in the next fiscal year and uses commitments to allow projects to proceed when future-year funding is expected. He said overappropriations can result from poor cash-flow estimates, delays, dormant projects, or projects coming in under budget, and that the office is already reworking cash-flow assumptions and reappropriating savings where possible. Members also raised concerns about change orders and low bids; staff said project managers review change orders closely, require concurrence on non-state projects, and sometimes reduce scope to keep projects within budget. After FPC’s presentation, the committee heard the beginning of Louisiana Economic Development’s capital outlay discussion, where LED explained that its projects generally fall into three categories, including the Economic Development Awards Program and Site Readiness Program, both used to support targeted economic development and job creation.

Transcript Highlights:

• We can more than double the present output of this in-state homegrown renewable resource by upgrading
• Water, dam power that's produced. So why are only two turbines operating out of the five?
• This kind of fascinates me, getting power like that from the dam and the river.
• If you have garbage inputs, you're going to have garbage outputs.
• These are Excel projects that are being built or power purchase agreements or whatever.

Committee: House Energy Finance and Policy

Transcript Highlights:

• What's in it for the people of New Mexico is a higher quality output.
• So New Mexico currently has about one—well, we only have one utility-scale geothermal power facility
• And that is the only utility-scale geothermal electricity plant in the state generating power for the
• And over each year, the incentive gets better up to a maximum.
• By the sixth year, you get a maximum benefit and credit for the energy you're generating.

Summary: The Senate Tax, Business and Transportation Committee heard and voted on several bills, beginning with SB 190, which would authorize revenue bonds for Gila Regional Medical Center to replace an aging linear accelerator for cancer treatment. The sponsor and hospital representatives said the project is critical for rural patients who otherwise travel long distances for radiation therapy. After a brief amendment changing the bond term from 20 to 30 years, the committee advanced the bill 7-0. The committee then took up SB 152, a broadband affordability and rural telecommunications bill that would keep money in the broadband fund for maintenance, expansion, and a new affordability program after the federal ACP lapsed. The sponsor and broadband stakeholders said the bill is needed to close the digital divide, while some industry witnesses supported the affordability goal but wanted changes to broaden eligibility and adjust program rules. The committee heard public testimony from supporters and opponents, then passed the bill 8-0. Next, SB 77 would require certain highway and public works contractors to contribute to apprenticeship training funds; labor groups supported it as workforce development, while highway and asphalt contractors opposed it as an added cost and argued they already run their own training programs. After extended debate about whether the 60-cent-per-hour contribution would raise project costs or simply redirect existing prevailing-wage funds, the committee advanced SB 77 on a 5-3 vote. The committee also heard SB 182, a dyed diesel gross receipts tax deduction for agricultural use, but held it for the tax package without a vote. SB 151, a corporate income tax decoupling bill intended to recover revenue lost to federal tax changes, drew strong support from tax and advocacy groups and strong opposition from business, oil and gas, and chamber representatives who called it a tax increase that would hurt investment and competitiveness. Committee members raised concerns about long-term revenue stability and business impacts, but the sponsors said the bill would restore state tax capacity and selectively decouple from federal provisions; the bill was held for later consideration in the tax package. Finally, the committee heard SB 133 on eliminating gross receipts tax on medical providers for medical equipment and supplies, and SB 212 on a ski-area construction equipment gross receipts tax exemption, with sponsors arguing both would improve competitiveness and support industry investment; both were discussed as possible tax-package items and held for further consideration.

Transcript Highlights:

• That economy is powered by our strengths in agriculture and technology.
• California’s export power is also enormous.
• We're also the nation's leader in biomanufacturing with $396 billion in economic output.
• Co-located because the outputs from one drive inputs to the other.
• outputs from one drive inputs to the other.

Summary: The hearing of the Select Committee on Alternative Protein Innovation was held at UC Davis and focused on how alternative proteins can support California agriculture, the bioeconomy, and farmers. Opening remarks from UC Davis leaders and committee members emphasized the university’s food science, fermentation, and sustainability strengths, and the state’s prior investments of $5 million for UC alternative protein research and an additional $1 million for ICAMP. Members framed the topic as a way to grow new markets, keep more value in-state, and address climate, food security, and commercialization challenges. The first panel featured Sana Beg of the Plant-Based Foods Institute, who argued that California agriculture and alternative proteins are complementary, not competing, and stressed that farmers are essential to the sector. She highlighted the need for ingredient processing capacity, technical assistance for growers, and predictable demand through public procurement, including schools, hospitals, and state facilities. Committee members asked about financing and market development, and Beg said guaranteed loans, grants, and state- and USDA-backed support could help de-risk investment and build the supply chain. The second panel focused on research and development. Beam Circular described the circular bioeconomy in the San Joaquin Valley, including efforts to turn agricultural residues into higher-value products, build shared infrastructure, and expand workforce training. ICAMP and UC ANR described UC Davis-centered research, pilot facilities, and a proposed plant innovation center to bridge lab-scale work to commercial manufacturing. USDA researchers discussed using byproducts such as brewer’s spent grain, tomato pomace, lima beans, and chickpeas for new food ingredients. Members repeatedly emphasized the importance of public R&D funding, consumer acceptance, and food-grade scale-up facilities. The final panel highlighted company perspectives from Optimized Foods and Blue Diamond Growers. Optimized Foods described using fungi fermentation to convert almond hulls, cocoa waste, and tomato pomace into protein-rich ingredients and stabilized nutrients. Blue Diamond outlined its grower cooperative model, sustainability practices, almond ingredient portfolio, and the Sacramento almond innovation center. No formal votes were taken; the hearing was informational, with discussion centered on research, commercialization, infrastructure, and market-building for California-grown alternative protein products.

Transcript Highlights:

• Runner plenty of time to actually demonstrate the software, which is the power of the presentation here
• And I do that with the secondary output that's here. Down and start identifying locations.
• And I do that with the secondary output that's here, which is, again, on a real case.
• For this one, this is just the output I go to on crime confessions.
• . ...of care, knowledge is power.

Committees: House Government , House House Government Committee of Reference

Transcript Highlights:

• They are powerful economic drivers.
• , 110,000 jobs, $24 in economic output per dollar of credit, $8.6 in labor and output contribution. contributions
• When you're looking at your $1.07 in return, you're looking at that entire fiscal output.
• And it's run by a whole bunch of powerful women of all different colors. I like that.
• As many of you know, the entertainment industry is powered by behind-the-scenes professionals.

Transcript Highlights:

• Madam Chair Bauer-Kahan, for your opening powerful remarks.
• And so I think that's really powerful.
• It is a powerful tool.
• It is a powerful tool.
• And so these tools, although powerful and impressive and wonderful, can also output a lot of garbage,

Summary: The Assembly Committee on Higher Education and the Assembly Privacy and Consumer Protection Committee held an oversight hearing on the California State University’s AI-empowered initiative, including the systemwide rollout of ChatGPT EDU and broader AI integration across CSU campuses. Opening remarks emphasized both the promise of AI for student success, workforce preparation, and access, and the need to address risks such as bias, privacy, misinformation, environmental impacts, and mental health harms. CSU representatives said the initiative grew out of Academic Senate recommendations and a systemwide generative AI committee, and that the goal was to provide equitable access, training, governance, and workforce alignment across the 23-campus system. CSU officials described systemwide contracts for AI tools, the AI Commons training hub, and faculty grant programs supporting AI-related curriculum innovation. They said more than 93,000 ChatGPT EDU accounts had been activated, over 4,300 faculty had taken voluntary training, and $3 million had been awarded to 63 faculty-led projects from more than 400 submissions. San Jose State University highlighted its own AI-focused programs, courses, orientation training, faculty fellows, student ambassadors, and interdisciplinary efforts to build AI literacy and responsible use into instruction and co-curricular programs. CSU also said it was tracking metrics on adoption, academic outcomes, workforce outcomes, and environmental impacts. Faculty, staff, and student representatives welcomed the educational potential of AI but raised concerns about the rollout, saying it had moved quickly and without enough consultation or consistent systemwide policy. They urged stronger protections for academic freedom, intellectual property, privacy, equity, and worker input, and warned about bias, surveillance, job displacement, and the environmental cost of AI. Legislators pressed CSU and OpenAI representatives on training requirements, data privacy, bias reporting, discipline for misuse, liability, sycophancy, and safeguards against harmful uses such as non-consensual imagery or self-harm-related interactions. CSU said interactions in the licensed tool are private, data are not used to train models, and campuses retain their own conduct processes; members also asked CSU to follow up on systemwide training, policy consistency, and additional safeguards.

Transcript Highlights:

• I’m Madam Chair Bauer-Kahan, for your opening powerful remarks.
• And so I think that's really powerful.
• AI is only as strong as its weakest output.
• It is a powerful tool.
• And so these tools, although powerful and impressive and wonderful, can also output a lot of garbage,

Summary: The hearing focused on the California State University’s AI Empowered Initiative, including the systemwide rollout of ChatGPT EDU, the CSU Generative AI Committee, the AI Commons training hub, and the AI Workforce Acceleration Board. CSU officials said the initiative was designed to expand equitable access, avoid a digital divide, and prepare students for an AI-driven workforce. They described systemwide licensing, privacy protections, no use of CSU prompts or data to train models, voluntary faculty participation, professional development offerings, and a $3 million faculty grant program supporting AI-related teaching and curriculum projects across campuses, including San Jose State’s AI-focused programs and student orientation training. Committee members pressed CSU leaders and OpenAI’s representative on bias, privacy, data retention, liability, environmental impact, student mental health, sycophancy, and whether training should be required before access. CSU officials said training materials address ethical use, bias, and critical thinking, that interactions are treated like private email, and that users can report problematic outputs through the tool. They also said the system is separate from the federal preservation order affecting public ChatGPT data. Several members urged more uniform, systemwide training and stronger safeguards, especially for students and vulnerable users. Faculty, staff, and student representatives offered a more cautious view. The Academic Senate and Faculty Association said they had long pushed CSU to study AI and support faculty development, but criticized the rollout as too fast, insufficiently consultative, and too focused on vendor partnerships and spending. They raised concerns about intellectual property, surveillance, bias, environmental costs, workload, and the need for bargaining and transparency. The staff union called for worker councils, negotiated guardrails, and protections against job displacement. The student representative supported broader access and AI literacy but asked for clearer campus policies, more consistent training, better privacy explanations, and stronger student input. No formal votes were taken during the hearing.

Transcript Highlights:

• activities this category could be used for: fuel reduction, structure hardening, defensible space, power
• partner will come up and talk about some of the out years, but what I'll tell you again in the joint powers
• Listen, in some of the severities of these fires, not all of the impact areas have a positive output.
• Essentially, it's a joint powers authority between the two departments, and using a risk-based analysis
• Additionally, it has an improved fuel reduction output.

Transcript Highlights:

• That was removed, and there's no testimony as to the maximum amount of the grant.
• So that would give your state that enforcement power.
• So that would give your state that enforcement power.
• So that would give your state that enforcement power.
• So that would give your state that enforcement power.

Committee: Senate Health and Human Services

Summary: The joint hearing covered several bills focused on environmental protection and wastewater management. HB 26 HD 2, relating to environmental protection, drew support from the Department of Health, Reworld, and Energy Justice Network. Supporters said it would preserve existing standards for waste-to-energy facilities, including H-Power, even if federal EPA rules are weakened, while Energy Justice Network urged the state to go further and require stronger pollution controls on older burners at the plant. HB 734 and HB 735, both relating to wastewater systems, received broad support from state agencies, county representatives, realtors, environmental groups, and others. Testimony emphasized reducing the cost of cesspool upgrades, updating rules, and improving coordination between the Department of Health, counties, and the University of Hawaiʻi. Members raised concerns about whether some areas, such as Ewa, should be treated differently if they are not near aquifers or the ocean, but the department said the existing prioritization process already considered statewide conditions and that cesspools generally still affect water resources. On HB 735, the committee discussed the current bedroom-based limits for individual wastewater systems and whether the bill would allow more flexibility for housing configurations, with the department explaining the limits are tied to density and system capacity. HB 879, relating to cesspool conversions, was also supported by the Department of Health, Department of Hawaiian Home Lands, and several advocacy groups. Testimony said the bill would help low- and moderate-income homeowners in priority areas by increasing grant assistance for cesspool upgrades, but the Department of Health noted it would need three full-time positions to administer the program. Members asked for clarification on the grant amount and staffing costs, and the department indicated the grant cap should remain at $20,000 unless changed. HB 918, relating to labeling of non-flushable wipes, drew support from wastewater and industry groups, including the Association of Nonwoven Fabrics Industry, which said similar laws have passed in other states and that the bill reflects cooperation between manufacturers and wastewater officials. The Department of Health and county officials supported the concept but said enforcement and outreach would require additional staff, and senators questioned whether the state could effectively enforce the labeling requirement without a national standard.

Transcript Highlights:

• New views of satellite powered Earth observation company that delivers high-resolution light our data
• Well, that's roads, bridges, power.
• An additional 7.2 million dollars worth of output sustained throughout the state's economy.
• Program at Kennedy has created more than 7,600 jobs has economic output of more than 731 million dollars
• opportunities and increased exposure to advanced technology, significantly enhancing NASA's research output

Transcript Highlights:

• As I'm sure many of you are aware, artificial intelligence is a powerful tool for the creation of almost
• From the input it receives how to generate outputs that can influence.
• From the input it receives how to generate outputs that can influence.
• If it's physical environments as well, Like, I think that the input it receives how to generate outputs
• one is that because it's not compelling them, they don't have any necessary costs; it's putting the power

Committees: House Emerging Issues , House Emerging Issues and Professional Registration

Transcript Highlights:

• And we wield enormous market power.
• matter: power reliability, the cost of power, and the timing of power.
• They'd provide cost projections for delivering the needed power.
• But their economy is largely driven, talking about power, by coal.
• Economy is largely driven, talking about power, by coal. Is that not true?

Transcript Highlights:

• What's in it for the people of New Mexico is a higher quality output. So everybody wins in this.
• We only have one utility geothermal power facility in the state of New Mexico.
• And over each year, the incentive gets better up to a maximum.
• By the sixth year, you get a maximum benefit and credit for the energy you're generating.
• They'll just make the money based on the power they're generating. Thank you. That's all.

Bills: SB190 , SB152 , SB77 , SB150 , SB151 , SB156 , SB172 , SB182 , SB185 , SB212 , SB170 , SB133 , SB174 , SB163

Committee: Senate Senate Tax, Business & Transportation

Keywords: cancer treatment, revenue bonds, Gila Regional Medical Center, Nor-Lea General Hospital, healthcare funding, telecommunications, low-income assistance, lifeline, broadband, rural broadband, universal service fund, public regulation commission, PRC, 911 surcharge, telecommunications relay service, VoIP, mobile service, internet affordability, digital equity, digital inclusion

Transcript Highlights:

• We have increased the maximum number of children served annually from 294,000.
• And finally, families and providers must share power in shaping this system.
• But given the outputs we're seeing... ...furthest away from the cost of care.
• My name is Odessa Powers, and I'm an immigration attorney with the Children's Law Center.
• My name is Odessa Powers, and I'm an immigration attorney with the Children's Law Center.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.