Transcript Highlights:

• And this is how they're interfacing.
• Rural areas, urban areas, northern part of the state, southern part of the state, all socioeconomic groups

Keywords: 988, house, all

Summary: The Assembly Committee on Revenue and Taxation heard two bills. AB 796 by Assembly Member Lowenthal would create the California Social Media Accountability Act, imposing a recovery fee on social media platforms’ advertising revenue and directing the proceeds to a Social Media Safety Trust Fund for education, mental health care, research, and social services tied to youth harms from social media. The author and supporters, including a school district administrator and a pediatric emergency physician, argued that social media is contributing to youth mental health crises, cyberbullying, self-harm, and other harms, and that platforms should help pay for mitigation costs. Opponents, including taxpayer, business, and industry groups, argued the measure would raise costs for businesses and consumers and likely face federal legal challenges under the Internet Tax Freedom Act. Committee members discussed the bill’s legal structure, the scope of social media harms, and impacts on small businesses, and the bill was held in committee and sent to suspense. AB 1265 by Assembly Member Haney was taken up from the suspense file and considered with an amendment clarifying Section 41 reporting requirements. The committee recommended a do pass as amended motion to Appropriations, and the bill passed on a 5-0 roll call vote. The committee then adjourned.

Transcript Highlights:

• And this is how they're interfacing.
• Rural areas, urban areas, northern part of the state, southern part of the state, all socioeconomic groups

Summary: The Assembly Committee on Revenue and Taxation heard two bills. AB 796 by Assembly Member Lowenthal proposed a California Social Media Accountability Act that would impose a recovery fee on social media platforms’ advertising revenue and direct the proceeds to a Social Media Safety Trust Fund for education, mental health care, research, and social services related to youth harms from social media. The author and supporters, including a Long Beach Unified School District administrator and a pediatric emergency physician, argued that social media is contributing to youth mental health crises, cyberbullying, self-harm, and related school and health system costs, and that platforms should help pay for mitigation. Opponents, including taxpayer, business, and industry groups, argued the fee would raise costs for businesses and consumers, especially small businesses that rely on targeted digital ads, and warned of likely legal challenges under federal law, including the Internet Tax Freedom Act. Committee members discussed the bill’s legal distinctions from Maryland’s digital advertising tax, the potential pass-through of costs to advertisers, and whether the proposal would meaningfully address youth harms. Several members expressed support for the bill’s goal and concern about social media’s effects on children, while others raised questions about how the revenue would be allocated and whether the tax burden would fall on small businesses. After testimony and debate, AB 796 was held in committee and referred to the suspense file. The committee also took up AB 1265 by Assembly Member Haney, which was already on the suspense file. The chair recommended an aye vote on the bill as amended, with a clarification to reporting requirements, and the committee approved it 5-0, sending it to Appropriations.

Transcript Highlights:

• We are in an urban rural interface with Obviously many opportunities for conflict where animals have

Transcript Highlights:

• And it interfaces very closely with finance, with budget, with every electronic system that touches on
• And it interfaces very closely with finance, with budget, with every electronic system that touches on
• So that individual is basically the individuals that we group are the ones that we interface with most
• Um, working with that gap analysis of code enforcement, whether it's from the wildland urban interface
• </c> whether it's from the wildland urban whether it's from the wildland urban interface<01:25:55.920

Keywords: 910, house, all

Transcript Highlights:

• Next is Second Engrossed Substitute House Bill 1210, concerning targeted urban area tax preference.
• Concerning targeted urban area tax preference.
• The bill we are trying to amend is a good bill, and targeted urban area preferences is a good program
• So in the fiscal note, it is assumed that urban counties will impose the tax.
• However, there are costs related to using the application programming interface, or API.

Summary: The committee took up executive action on the capital budget, Proposed Substitute Senate Bill 6003, and several policy bills. Staff described amendments to the capital budget that shifted funding among behavioral health, local/community projects, irrigation projects, and juvenile rehabilitation capacity, plus a technical fix to the water pollution control revolving program. The committee adopted Senator Dozier’s budget-neutral amendment and a technical amendment, then advanced the amended capital budget to the Rules Committee. It also moved House Bills 2441, 2124, 2471, 2133, 2610, and 2338 forward with due-pass recommendations, and advanced Engrossed Second Substitute House Bill 2251 on Climate Commitment Act accounts to the Transportation Committee after adopting two amendments and withdrawing three others. A major public hearing focused on Engrossed Second Substitute House Bill 2034, which would terminate and restate LEOFF Plan 1 in 2029, transfer surplus assets, and direct portions to the Climate Commitment Account and the pension funding stabilization account. Staff said the plan is currently about 160% funded and explained the bill’s IRS-review process, statute of limitations, and estimated implementation costs. Testimony was sharply divided: some retirees, firefighters, counties, and cities opposed the bill as an improper use of pension assets and urged benefit enhancements or protection of local medical obligations, while others supported using the surplus for broader public purposes. No vote was taken on the bill during the hearing. The committee also heard House Bill 2179 on PERS coverage for certain port workers, with ports and the Washington Public Ports Association supporting clarification for railroad employees covered by the federal railroad retirement system. House Bill 1069, allowing Department of Corrections employees to bargain over supplemental retirement benefits, drew support from Teamsters and corrections workers, while House Bill 2091, expanding employee-information sharing with bargaining representatives, drew union support and privacy objections from Washington Policy Center. Finally, Second Engrossed Substitute House Bill 1210 on targeted urban area tax preferences drew support from labor, local governments, and project proponents, and opposition from contractor groups and environmental advocates over project labor agreement requirements and nuclear-related concerns; Engrossed Substitute House Bill 1408 on community preservation and development authorities and Engrossed Second Substitute House Bill 1974 on land bank authorities for affordable housing were also heard, with both receiving supportive testimony from community and housing advocates.

Transcript Highlights:

• Does this prescribe any interface with them, or is that just up to the regulators to figure out?
• So I would really caution this committee with putting these in especially dense, urbanized areas.
• So I would really caution this committee with putting these in especially dense, urbanized areas.

Keywords: 993, senate, all

Summary: The Senate Standing Committee on Energy and Telecommunications considered a large agenda focused mainly on energy affordability, the CLCPA, utility rates, and renewable energy siting. Senator Mattera and other Republican members argued that the Climate Leadership and Community Protection Act has driven up utility bills, harmed reliability, and imposed costs on ratepayers, while Democratic members pushed back that rising costs are also driven by natural gas markets, infrastructure costs, and broader economic factors. Several bills sought to repeal or pause CLCPA-related policies, create a CLCPA task force, impose studies or moratoriums on new energy taxes and fees, and increase transparency around utility surcharges and state energy spending. Supporters framed these measures as ratepayer relief and accountability; opponents said some proposals would undermine clean-energy policy and existing consumer-benefit programs. The committee defeated S.1167, which would have repealed the All Electric Building Act, and S.1173, which would have created a CLCPA task force. It also failed S.5250, a bill to study CLCPA costs and impose a moratorium on new energy taxes, fees, or regulations, and S.7075, which would have prohibited the system benefits charge on utility bills. Several other bills advanced, including S.1236A on virtual access and electronic filing for Public Service Commission proceedings, S.1552 establishing reduced residential rates for low-income electric and natural gas customers, S.2484 directing a study of replacement timeframes for battery storage and renewable facilities, S.2638 on carbon allowance auction proceeds, S.3247 on electric vehicle charging stations, S.3553 requiring utilities to post promotional and educational materials on their websites, S.4571A creating a floating solar incentive education program, S.5518 shifting Public Service Commission funding to legislative appropriation, and S.6412A requiring itemized ratepayer disclosure of surcharges. S.9251, on labor-related legal costs, was referred to the Labor Committee. S.7710, which would have restricted energy storage systems near schools and homes in New York City, failed after concerns and support were debated. The committee adjourned after completing the agenda.

Transcript Highlights:

• So we're not just focused on urban representation.

Bills: HB2013, HB2026, HB2056, HB2098, HB2113, HB2156, HB2158, HCM2011, HCR2057

Keywords: air pollution, wildfires, environmental standards, public health, Arizona Revised Statutes, assured water supply, groundwater, commingling, commingled water, water supply, Arizona Department of Water Resources, ADWR, active management area, AMA, subdivision plat, development approval, water rights, municipal provider, private water company, certificate of assured water supply

Transcript Highlights:

• Okay, and Madam Chair, to that point, developers are already being approved under added-to urban force
• Developers are already being approved under added-to urban force certificates right now.
• and rural settings. ...dollar use, and we're talking about some of our most valuable land in urban and
• Does your organization represent an ideology or does your organization represent a location, like urban
• and prevent... ...development and infill the trust lands in ways that benefit the trust and prevent urban

Bills: HB2150, HB2262, HB2267, HB2268, HB2351, HB2425, HB2426, HB2427, HB2755, HB2781, HB2913, HB2943, HB2956, HB2975, HB2985, HB4009

Keywords: state land department, mineral lease, renewals, indexed royalties, land use planning, auditor general, five-year plans, geospatial data, Arizona Geological Survey, resource analysis, geographic information systems, wildlife protection, public nuisance, renewable energy, wind farm, solar farm, residential property, public health, local regulations, state land

Transcript Highlights:

• This kind of transit is in the infill urban areas of all of our communities and municipalities where
• So what about Jewish Community Services, Urban League, in Miami, we have the American Museum of the Cuban
• said, how do we fix the problem that we've always been based in suburban economics, and we need an urban

Bills: S0484, S0698, S0706, S0968, S1118, S1122, S1134, S1320, S1342, S1548, S1614

Keywords: data centers, large load customer, large-scale data center, electric utility, public utility tariff, Florida Public Service Commission, FPSC, water permit, consumptive use permit, reclaimed water, groundwater, surface water, water management district, DEP, OPPAGA, economic development, land use, comprehensive plan, zoning, ratepayer protection

Summary: The committee heard several housing, local government, utility, and transparency bills. SB 1342 on transportation infrastructure and land development regulations, by Sen. Rouson, was presented as a housing-affordability measure modeled on the Live Local Act for transit corridors. After adopting an amendment that removed the bill’s compelling-governmental-interest language in enforcement provisions, the committee heard testimony from local-government and housing interests both supporting and opposing the bill’s zoning preemption approach. The bill was reported favorably. The committee also reported favorably CS/SB 1614, by Sen. Leek, which was amended to remove stormwater and code-enforcement spending provisions and to tighten restrictions on local governments seeking state appropriations after audits or without required affirmations. SB 1548, the next Live Local Act iteration by Sen. Claddie Ude, was also reported favorably; it expands where Live Local projects may be located and adds fair-housing protections. SB 968 on home backup power systems, by Sen. McLean, was reported favorably after testimony from builders and energy-related stakeholders, with the sponsor noting he was still working on amendments to refine permit provisions. The committee then approved CS/SB 698, by Sen. Martin, which allows building permits for single-family homes to be issued before septic permits are finalized if application has been made, while still requiring septic approval before occupancy. Builders testified that septic permit delays were causing lengthy project delays and contract cancellations. The committee also reported favorably SB 1320, by Sen. Martin, requiring county tax-increase referenda to include a Department of Financial Services spending analysis if available; the sponsor said the goal was to give voters more standardized fiscal information, while opponents argued existing law already provides similar transparency. SB 484, by Sen. Avila, on data centers, was reported favorably after an amendment adding a knowledge requirement to the foreign-country-of-concern service prohibition; the bill addresses local planning authority, nondisclosure agreements, utility tariff requirements, and water-use limits for large data centers. The committee also reported favorably SB 1118, by Sen. Avila, creating a one-year public-records exemption for data-center location and proprietary information, with testimony split between economic-development supporters and transparency concerns. Finally, the committee took up SB 706, by Sen. Mayfield, preempting naming of major commercial service airports to the state and designating Palm Beach International Airport as Donald J. Trump International Airport subject to federal and trademark conditions; it was reported favorably after questions about local input and airport naming. The committee then heard extensive public testimony on SB 1134, by Sen. Yarbrough, which would prohibit counties and municipalities from funding, promoting, or taking official actions related to DEI and would create penalties and a private right of action for residents. The sponsor argued the bill was aimed at preventing taxpayer-funded DEI programs and cited examples from Jacksonville and other jurisdictions; opponents said the bill was vague, overbroad, and would chill local programs, public education, and civil-rights-related activities. The transcript ends during continued public testimony on SB 1134, with no final committee action shown in the excerpt.

Transcript Highlights:

• expand eligibility... ...CDDs that address synthetic turf regulation and expand eligibility for compact urban
• intention: to clarify that voting is to be conducted by paper ballot unless a voter requests the voter interface
• . ...device so that the voter interface devices are not the default for the administration of elections

Keywords: 999, senate, all

Summary: The Committee on Ethics and Elections heard and favorably reported several measures before taking up a lengthy and contentious elections bill. CS/SB 1180 by Senator Arrington would create a recall process for elected community development district board members, similar to municipal recall procedures, and also update CDD provisions on synthetic turf restrictions and compact urban mixed-use district eligibility. Senator Arrington said the bill was intended to give homeowners more accountability and transparency in CDD governance. It passed without opposition on the committee roll call. The committee also favorably reported SB 460 by Senator Polsky, which would require the governor to call special elections within 14 days of a vacancy and set the election within specified timeframes, with some flexibility for conflicts and emergencies. Polsky argued the bill would prevent long vacancies and unequal representation; supporters, including Vice Chair Bernard and Senator Bradley, said it would add predictability but should be clarified further. SB 748 by Senator Bracy Davis also passed unanimously; it would place existing constitutional language about felony voting rights and restoration onto the sentencing score sheet so defendants receive clearer notice at sentencing. The committee then confirmed several gubernatorial appointees, including Jim Milliken and Alicia McShea to the Juvenile Welfare Board of Pinellas County and Robert P. Astalas as Director of the Agency for Persons with Disabilities, along with other nominees listed on the agenda. Testimony on these confirmations was generally supportive, with members praising the nominees’ experience and service. The most extensive debate centered on SB 1334 by Senator Grall, as amended by a strike-all. The bill would require stronger proof-of-citizenship verification for voter registration and election administration, rely more heavily on DHSMV/Real ID data and the SAVE database, require U.S. citizen designation on state IDs by 2027, and clarify that paper ballots are the default unless a voter requests a voting device. Supporters said the bill would streamline verification, prevent noncitizen voting, and reduce duplicate agency work; opponents warned it would burden eligible voters, create confusion, and risk disenfranchising citizens who lack passports, birth certificates, or name-change records. After extensive public testimony overwhelmingly in opposition, the committee adopted the strike-all as amended and reported the bill favorably, with Senators Polsky and Bernard voting no.

Transcript Highlights:

• such as direct brain-computer interfaces, such as direct brain connections, a Neuralink for example.
• such as direct brain-computer interfaces, such as direct brain connections, a Neuralink for example.
• such as direct brain-computer interfaces, such as direct brain connections, a Neuralink for example.
• such as direct brain-computer interfaces, such as direct brain connections, a Neuralink for example.
• such as direct brain-computer interfaces, such as direct brain connections, a Neuralink for example.

Keywords: 1187, senate, all

Transcript Highlights:

• I think we all want to make sure individuals interface with and build on a now more modernized system
• We're also looking at... ...how rankings interface with Massachusetts General Laws and also resources
• I always think the hardest thing is: how do you interface with government?
• We want to make interfacing with government a product.
• So the answer to the question, even though I wish government had more beautiful interfaces and whatnot

Keywords: 1212, all

Transcript Highlights:

• in Eland, the bill you now have is Second Engrossed Substitute House Bill 1210 concerning targeted urban
• The bill you now have is second in growth substitute House Bill 1210 concerning targeted urban area tax
• Targeted urban area preferences is a good program.
• So in the fiscal note, it is assumed that urban counties will impose the tax.
• However, there are costs related to using the application programming interface, or API.

Bills: HB1069, HB2091, SB6355, HB2104, SB6003, HB2441, HB2124, HB2610, HB2338

Keywords: collective bargaining, retirement benefits, employee rights, public sector, supplemental benefits, public employers, employee information, bargaining representatives, labor relations, union representation, electric transmission, energy policies, infrastructure, regulatory framework, transmission systems, aviation, wildland fires, funding, disaster relief, emergency response

Transcript Highlights:

• </c> streamlined experience when interfacing streamlined experience when interfacing with<00:03:30.480
• We have multiple modern interface with.
• We you know there may be to interface.
• </c> specializes in the ability to interface specializes in the ability to interface with<00:07:09.440
• </c><00:07:51.599><c> to</c> makes it easier to interface to makes it easier to interface to applications

Keywords: 1:00 Roll Call 2:38 Overview of Citizen Identity Security and Threat Reduction 9:36 Identity Solution and Casts 13:51 System Application and Discovery Issues 21:31 Staffing and Timelines 29:14 Adjournment, 958, all

Summary: The House Budget Review Subcommittee on Personnel, Public Retirement, and Finance received a presentation from Jim Barnhard, CIO of the Commonwealth Office of Technology, and David Carter, deputy CIO/CISO, on the state’s citizen identity management project. They said the project is intended to streamline citizen logins across agencies, reduce duplicated identity-management costs, improve security by centralizing authentication, and provide a flexible system that can scale with demand. The presenters described major implementation challenges, including integrating with diverse and legacy applications, and said the chosen software-as-a-service vendor was selected because it can connect to many systems and maintain the service in a federally certified cloud environment. The presenters emphasized that the project scope is limited to login, authentication, identity management, and identity proofing, while leaving authorization decisions to the individual applications and agencies. They said the work is being done in phases, beginning with discovery sessions with agencies, then selecting representative applications for onboarding rather than attempting a “big bang” rollout. They also said the vendor agreement includes professional services and knowledge transfer to reduce long-term dependence on outside support, and that the state has already begun outreach to agencies, including initial work with the Finance Cabinet and the Department of Revenue. Members asked about staffing, current spending, future costs, and whether existing systems or contracts could be reduced. The presenters said the project is being supported with existing staff, with no expectation of a large increase in positions, and that the vendor will carry most of the operational load. They said they did not have statewide spending figures with them but could try to gather them, and explained that the negotiated pricing is intended to be all-inclusive, with fixed costs for the first five years and capped increases in years six and seven. They said centralizing identity services should eventually allow the Commonwealth to stand down some duplicated agency-level licensing and reduce overall operational costs.

Transcript Highlights:

• John White is the Assistant Secretary for Urban Mobility Access and Mega Programs for the Washington
• I'm the Assistant Secretary for Urban Mobility Access and Megaprograms.
• There were some very significant risk interfaces between the approaches contracts and the new bridges
• There were some very significant risk interfaces between the approaches contracts and the new bridges

Summary: The Joint Committee on Interstate 5 Bridge met remotely with Washington legislative members to receive updates on the Interstate Bridge Replacement Program, including environmental review, cost and funding, tolling, and procurement for construction. Program staff said the final supplemental environmental impact statement was published in April 2026, with a federal record of decision expected in early summer. They described the recommended design as a single-level fixed-span bridge, centered I-5 alignment, C Street ramps, one auxiliary lane in each direction, and dispersed park-and-ride parking. Members raised concerns about transparency, the closed chat function, and the decision not to include two auxiliary lanes; staff said the one-lane option was recommended through consultation with partner agencies and analysis, but the final decision would come with the record of decision. Staff also said the diversion analysis projected less than 3% traffic diversion to I-205 in 2045, though members from Oregon and Washington expressed concern about impacts to their communities and asked for more detail on mitigation and decision-making. The committee also reviewed a major cost update. Staff said the full five-mile program is now estimated at $13.5 billion to $15.2 billion, with a likely cost of $14.4 billion, up from a 2022 estimate of $5 billion to $7.5 billion, citing inflation, schedule delays, scope changes, and more detailed risk modeling. They said the first funded phase has been reduced to a $5.68 billion package focused on the Columbia River bridge replacement, connections to I-5, Hayden Island and SR-14, bridge demolition, tolling infrastructure, and advancing light rail design. Funding for that phase was described as $5.69 billion, including $2.1 billion federal funds, $1 billion from each state, and $1.5 billion in projected toll revenue. Members asked what would happen if costs rise further; staff said the estimate includes substantial contingency, the project will use progressive design-build to manage risk, and the team will continue updating the finance plan annually. A separate tolling and traffic-revenue presentation explained that four toll scenarios were analyzed using regional travel demand modeling, a toll diversion model, and a post-processing review. All scenarios assume pre-completion tolling beginning July 1, 2028, a 50% low-income discount for eligible users, and exemptions for tribal preemptions, emergency vehicles, maintenance vehicles, and organized militia. Staff said the low-income discount would affect about 4% to 6% of annual transactions and reduce annual revenues by roughly 2% to 3%. They said Scenario 2 was used for the financial analysis and is sufficient to support the $1.5 billion toll contribution in the funded phase. Members asked about toll collection costs, revenue impacts of the discount, and how the scenarios differed; staff said collection costs are expected to be in line with other WSDOT toll facilities, but exact costs are not yet set because toll rates are not final. Finally, WSDOT staff outlined procurement and delivery steps for construction. They said WSDOT will be the lead contracting agency, using progressive design-build, with a request for qualifications targeted for early July 2026, a request for proposals in October, contractor selection in April 2027, construction starting in 2028, and tolling beginning in 2028. Staff said the approach is intended to consolidate scope, reduce interface risk, and allow transparent negotiation with an independent cost estimator, while preserving an off-ramp if a fair price cannot be reached. Members asked for more detail on timing, cost allocation, and the share of the first phase funded by tolls; staff estimated tolls account for about 26% of the first phase cost.

Transcript Highlights:

• We are seeing huge premium increases in the wildland-urban interface, as well as in infill areas like

Summary: The Assembly Insurance Committee met to consider several bills focused on California’s insurance market, wildfire resilience, and consumer protections. AB 888, the California Safe Homes Act, was heard first. Insurance Commissioner Ricardo Lara and Alabama Insurance Commissioner Mark Fowler testified in support, describing state grant programs that help homeowners harden roofs and create defensible space, with the goal of reducing losses and improving insurance affordability and availability. Supporters from the insurance industry, local government, and the Rebuild Paradise Foundation also backed the bill, and committee members emphasized the need for more incentives for mitigation. The bill passed the committee on a do pass motion and was sent to Appropriations. AB 290, by Assemblymember Bauer-Kahan, would require the FAIR Plan to offer automatic payments and address non-renewal grace-period issues. The author described her own experience being forced onto the FAIR Plan and facing a large premium increase, while Consumer Federation of California called the bill common-sense consumer protection. The FAIR Plan opposed unless amended, saying it was already handling major wildfire claims and other operational demands and requested more time and changes to the non-renewal grace-period language. Members across the committee supported the bill as a needed modernization measure, and it passed as amended to Appropriations. AB 1339, by Assemblymember Gonzalez, would direct the Department of Insurance to study insurance availability and pricing for affordable housing providers and report policy recommendations. Supporters from affordable housing organizations said rising premiums were forcing providers to cut services, defer maintenance, and use reserves, threatening housing stability for low-income residents. The bill passed as amended to Appropriations. AB 646, by Assemblymember Wallace, also passed to Appropriations; it concerns disclosure related to motor vehicle protection products and catalytic converter theft deterrence, with support from auto dealers and industry groups. The committee also approved AB 1531 on consent. Members later added on to the record in support of the bills, and the hearing concluded without recorded opposition votes on the measures that advanced.

Transcript Highlights:

• listen, we're going to prioritize this because this is one of the areas where local government interfaces
• meetings, and they don't necessarily prioritize density in those cities the way we might see in more urban

Transcript Highlights:

• "Listen, we're going to prioritize this because this is one of the areas where local government interfaces
• In those cities, the way we might see in more urban or first-ring suburban areas.

Keywords: 1184, house, all

Transcript Highlights:

• payer-to-provider-to-provider data exchange using secure, standards-based application programming interfaces
• Josh Gaggar, on behalf of the urban counties of California and the Los Angeles, Riverside, and Ventura
• He noted that 10 of the 14 urban county members own and operate hospitals, including the three counties
• Additionally, I want to align myself with the comments made by the urban counties and the public hospitals
• Additionally, I want to align myself with the comments made by the urban counties and the public hospitals

Summary: The subcommittee heard an overview of the Department of Health Care Services’ proposed budget, including a $229.1 billion total-funds budget and projected Medi-Cal enrollment decline as redeterminations continue. Members focused heavily on the fiscal and programmatic effects of prior budget solutions and federal changes, especially the elimination of General Fund-supported Prop. 56 dental supplemental payments beginning July 1, 2026, the hospice utilization-management change, and the impact of reduced caseloads alongside rising health care costs. DHCS said it is still completing required access and rate-reduction analyses for the dental cuts and has been engaging stakeholders, but could not yet quantify the real-world effect on utilization or provider participation. The committee also reviewed the November 2025 Medi-Cal local assistance estimate, which shows higher General Fund spending despite lower enrollment, driven by managed care rate growth, Medicare cost growth, state-only claiming, and federal policy changes. The hearing then turned to provider taxes and federal H.R. 1 constraints, with extensive discussion of the MCO tax, the hospital quality assurance fee, and other health care-related taxes. DHCS explained that H.R. 1 phases down allowable tax levels and tightens “generally redistributive” rules, making the current MCO tax structure and the proposed higher hospital fee levels difficult or impossible to renew as originally designed. Staff and the LAO described the tradeoff between preserving Medi-Cal funding and avoiding higher costs on private providers and consumers. Members asked about options for preserving revenue, including possible amendments to Prop. 35 or returning to voters, and were told the department is still evaluating approaches while federal guidance remains in flux. The committee also reviewed hospital payment increases already implemented through state-directed payments, with DHCS noting that H.R. 1 will force those payments down to Medicare levels over time. Several budget change proposals were discussed and left open, including requests tied to the managed care final rule, managed care operations, hospital value strategy, long-term care payment transparency, and interoperability requirements. The committee also heard about a one-year trailer bill extension for skilled nursing facility financing, including continuation of the SNF workforce standards program, the SNF quality assurance fee, and annual rate growth, while the department develops a longer-term financing redesign for 2027-28. Members expressed skepticism about repeated rate reform efforts and questioned whether a one-year extension of the eliminated workforce quality incentive program should be restored during the transition. Finally, Covered California presented its budget and enrollment update, reporting that the expiration of the federal enhanced premium tax credit is expected to reduce affordability significantly, with average premiums roughly doubling for many enrollees and as many as 400,000 Californians potentially losing marketplace coverage over time. The exchange said California’s $190 million subsidy program is helping lower-income enrollees, but not enough to offset the federal loss, and it is also implementing a new gender-affirming care benefit and awaiting federal action on benchmark plan changes.

Transcript Highlights:

• fluctuates in some markets, such as 2016, been very advantageous for Housing New Mexico and other state interface
• assisted, which is about a $60,000 to maybe $200,000 cost per unit. rehabilitation funding across urban
• I think what would be helpful is a chart where that distribution is in the areas to distinguish urban