Transcript Highlights:

• And yes, Senator Graal, we have heard about payment in lieu of taxes.
• Payment in lieu of taxes is an extremely important program.
• This payment in lieu of taxes, and I do appreciate you bringing that up.
• So it's a pretty big number. in a county like Glades County, and there's a separate line item of payment
• are working together to find a common solution to... ...stormwater mitigation, and some of those payments

Summary: The Committee on Agriculture met to hear updates on land conservation and agricultural preservation programs. The Department of Agriculture and Consumer Services presented on the Rural and Family Lands Protection Program, explaining that it protects active agricultural lands through conservation easements while keeping land in private ownership and on the tax rolls. The director said the program requires participants to use agricultural best management practices, noted strong demand with 428 ranked projects for 2025, and reported that consistent legislative funding and partnerships with USDA, DOD, local governments, land trusts, and water management districts have expanded acreage protected, much of it within the Florida Wildlife Corridor. Committee members asked about eligibility, ranking, local government involvement, and how many projects are typically funded each year. Conservation Florida’s president and CEO testified that both Rural and Family Lands and Florida Forever are critical and complementary tools for preserving working lands, wildlife habitat, water resources, and public access to nature. She warned that uncertainty or cuts in state funding can stall projects, raise land prices, and reduce conservation momentum. In discussion with senators, she said public access is often negotiated case by case and is more common on lands acquired for parks, forests, and other public green space than on conservation easements. The Department of Environmental Protection then updated the committee on Florida Forever, describing it as the state’s premier conservation and recreation land acquisition program. DEP said Florida Forever uses both conservation easements and fee-simple purchases, with about half of acquisitions done through easements, and emphasized that steady funding is needed to keep projects moving. The deputy secretary reported 60 projects on the current work plan, more than $1.4 billion invested since 2019, and recent acquisitions including new state forest, park, and preserve expansions. Members also raised concerns about payment in lieu of taxes for fiscally constrained counties, local notification of acquisitions, and the need for continued support for agriculture, citrus, roads, and conservation funding. No formal votes were taken, and the meeting adjourned after member comments and public testimony.

Transcript Highlights:

• should not be able to continue to pound these consumers with a request for a voluntary additional payment
• These are people that don't have the money for an additional payment.
• So, HB 31 expands the scope of the FCIC to include payment fraud, providing the necessary authority to
• I just want to ask you, does the term payment fraud cover all bases? Well, not necessarily, sir.
• This allows the retiree 30 years to make the monthly payments or a one-time lump sum payment.

Bills: HB3014 , HB3109 , HB3126 , HB3474 , HB3594

Committee: House Pensions, Investments & Financial Services

Keywords: gift card fraud, counterfeit gift card, gift card tampering, gift card theft, prepaid card, stored value card, retail fraud, financial crimes, consumer protection, organized retail crime, gift card skimming, magnetic stripe, chip card, redemption information, gift card packaging, Penal Code, felony theft, state jail felony, third-degree felony, second-degree felony

Transcript Highlights:

• This slide is for payments.
• So Uh the next this is total payments.
• So you can This slide is for payments.
• And Senator Douglas, I spoke payments.
• </c> between authorizations and payments. between authorizations and payments.

Summary: The Budget Review Subcommittee for Transportation met without a quorum at first, then later approved the July 15 minutes by voice vote after quorum was reached. The committee heard an update from the Transportation Cabinet on the road fund for FY 2024-25. Cabinet staff reported road fund revenue came in $38.5 million above the enacted estimate, with motor vehicle usage tax receipts setting an all-time high for the fifth straight year. Motor fuels tax revenue was below estimate and down from the prior year, while overall road fund collections totaled $1.86 billion, essentially flat year over year. Staff said the road fund ended FY25 with a $61.6 million surplus, which under the budget bill must be appropriated to state construction. Members discussed the gas tax formula, with Senator Higdon arguing it no longer works well because revenues fall when fuel prices fall, and the chair noting the committee may need to revisit the formula. The committee then received an update on High Growth County projects in the 2024 highway plan. KYTC said $16 million in HGC authorizations had been made, nine projects already had construction funds authorized or were otherwise underway, 12 more were scheduled to be let by the end of 2025 with estimated construction costs above $250 million, and one additional project was expected to be awarded through alternative delivery. The cabinet said it anticipated authorizing the full $450 million appropriated by the General Assembly. Members praised the effort and emphasized the need to get projects to market before the next budget cycle. Jason Sala of KYTC also explained why transportation projects take time, citing planning, design, right-of-way acquisition, and utility relocation as major steps that can delay delivery. He said these processes are complex and require coordination with property owners, utilities, consultants, contractors, and local governments. Eric Pelfrey then briefed the committee on professional and personal service contracts, saying they are used to expand cabinet capacity for design, inspections, right-of-way appraisal, safety, and related work. He reported that authorizations and payments for these contracts have trended upward over the past decade, and that the number of contracts has also increased. In response to questions, Pelfrey said design-build can speed some projects by overlapping steps, but it does not eliminate right-of-way or utility work when those are required; he said KYTC has been using alternative delivery more often, but project complexity still limits how quickly work can move.

Transcript Highlights:

• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.
• So, it's an immediate payment.

Summary: The committee met in a special-called session of the Interim Joint Committee on Banking and Insurance and first took up three Department of Insurance regulations tied to House Bill 256, the Strengthen Kentucky Homes program: 806 KAR 22:00, 22:10, and 22:20. Commissioner Sharon Clark said the program would provide $5 million in grants to help homeowners strengthen roofs, with regulations covering eligibility and operations, contractors and evaluators, and reinspections in cases of suspected fraud. A committee substitute to 806 KAR 22:10 was explained as a technical correction to conform to the statutory preference for in-state contractors and evaluators. Representative Hampton moved and Representative Rudy seconded approval of the substitute, and it was adopted by voice vote; the amended regulations were then reviewed. Clark also said the grant money would be distributed statewide rather than targeted to storm-prone areas. The committee then heard an update from Commissioner Clark on mental health parity in response to questions from Representative Pollock. Clark said the department reviews insurer filings and conducts market conduct examinations, but does not have authority over provider reimbursement rates or to require providers to join insurer networks. She said complaints are investigated and, when needed, teams review claims and data on site to check compliance with parity requirements. No action was taken on that discussion. After approving the November 4 meeting minutes, the committee heard testimony on a proposed PIP reform package from Representative Josh Bray, the Kentucky Hospital Association, the Kentucky Justice Association, and State Farm. Supporters said the bill would apply the workers’ compensation fee schedule to most PIP medical claims, keep the $10,000 PIP limit in place while stretching benefits further, reduce balance billing, modernize benefit amounts, and address fraud and delayed billing. They noted hospitals would be exempt from the fee schedule, while hospital-based physical therapy would be included, and said the compromise reflected negotiations among stakeholders. Some members questioned whether exempting hospitals undercut the bill’s purpose and asked about possible rate effects; proponents said they had not done a rate analysis and that the bill could lead to more treatments within the existing PIP limit. No vote was taken on the PIP proposal during this meeting.

Transcript Highlights:

• KCNA has not rendered payment for the KCNA has not rendered payment for the huts<00:04:43.440><c> despite
• KCA claims to have mailed another payment, but we have not received that payment either, nor are we aware
• </c> how the the process for payment went. how the the process for payment went.
• Um, but for the $450 per month, or we had the right to issue a payment in full, and the payment in full
• Which is what you did with this check. payment in full, and the payment in full payment in full, and

Summary: The meeting began with routine business, including welcoming new committee member Senator Reginald Thomas, approving the minutes, and receiving a correspondence report on several information items. Those items included University of Kentucky research equipment funding, UK capital project funding using federal/private funds, debt issues from McGoffin County and Owen County school districts, lease modifications by the Division of Real Properties, asset preservation project revisions at Eastern Kentucky University and Northern Kentucky University, and Kentucky Communications Network Authority (KCNA) information on Kentucky Wired critical infrastructure. The main discussion focused on a dispute over the Kentucky Wired communication shelters, or “huts,” and related payments under KCNA’s agreement with Asellicom/Excel. Brad Kilby of Asellicom testified that KCNA had not paid for the huts, that Asellicom had not received the alleged $8 million or any later payment, and that Asellicom remained the legal owner. Committee members pressed him on whether payment had been received, whether anyone else might have received it, and whether the lawsuit or dispute resolution process clarified the issue. Kilby said no payment had been received and that the matter was part of ongoing litigation. KCNA Executive Director Doug Hendricks and General Counsel Adam Atkins then testified. They said a certified check for $8.5 million was mailed in July, based on the Finance and Administration Cabinet secretary’s determination that $8.5 million was due under the model procurement code, even though KCNA had initially requested about $12 million to cover a worst-case estimate. They said the contract allowed payment in full or in tranches, that the huts were completed and operational, and that KCNA had not received documentation supporting Asellicom’s higher $10.1 million claim. Members expressed frustration over the missing check and the broader implications for Kentucky Wired, and one member requested that the committee obtain all agency requests related to KCNA/Kentucky Wired since inception; the co-chairs said they would look into making that information available. No formal vote was taken on the dispute during the portion provided.

Transcript Highlights:

• Under H.R. 1, the state's payment error rate will determine whether the state shares in that cost of
• And these payments are critical and integral to ensuring that we're closer to covering our cost.
• We continue to serve them, but we lose the payment for reimbursement for these services.
• We didn't always give this payment. So this, it's PPS for the UIS population.
• Okay, so for about 10 years, they've had this payment.

Summary: The Budget Subcommittee on Health and Human Services heard an overview of the expected California budget and program impacts from H.R. 1, including changes to Medi-Cal and CalFresh eligibility, redeterminations, work requirements, immigration-related coverage rules, retroactive coverage limits, and reductions in federal matching for certain services and provider financing mechanisms. DHCS and CDSS described implementation plans focused on automation, data matching, clearer communications, county training, and outreach, while noting that many federal details are still pending. The Legislative Analyst’s Office also reviewed how H.R. 1 could increase pressure on county indigent care systems, explaining the history of county responsibility under Section 17000, 1991 realignment, and AB 85, and warning that counties may face large increases in uninsured residents seeking care without corresponding funding flexibility. An independent policy expert urged consideration of a more standardized statewide approach to indigent care and raised questions about governance, benefits, and financing. Department witnesses estimated substantial coverage losses and fiscal effects: DHCS projected major Medi-Cal disenrollment tied to work requirements, six-month renewals, narrowed immigrant eligibility, and reduced retroactive coverage, while CDSS estimated large CalFresh benefit losses and a significant increase in administrative workload and payment accuracy pressure. Members questioned how exemptions would work for older adults, people experiencing homelessness, undocumented residents, and cash workers, and asked about the effect on the CalFresh Minimum Nutrition Benefit Pilot and on county administrative funding. Officials said they would use available data and self-attestation where possible, but acknowledged that many cases would require manual screening and that the county workload estimates remain in dispute. They also said the state is still evaluating the impact of H.R. 1 on provider taxes and state-directed payments, which could create additional budget pressure. County representatives from Los Angeles, Santa Clara, Tulare, and San Bernardino described major local consequences if H.R. 1 is implemented as written. They warned of higher uninsured rates, more strain on emergency rooms and public hospitals, increased homelessness and food insecurity, and a likely need to rebuild or expand county indigent care programs that were largely scaled back after the ACA. Counties said they are already freezing hiring, cutting positions, reducing overtime, deferring spending, and launching outreach and coordination efforts with managed care plans and community partners, but argued that these steps are not enough without additional state support. Several counties backed the California County Welfare Directors Association’s request for $373 million in General Fund support for eligibility work and asked for a CalFresh match waiver to soften the new county share of administrative costs; Los Angeles and Santa Clara also emphasized that their local revenue measures would not close the projected gaps. No votes or formal actions were taken in the portion provided.

Transcript Highlights:

• It includes strategies and barriers that may be present in reducing the payment error rate.
• It includes strategies and barriers that may be present in reducing the payment error rate.
• And in lieu of paying property taxes, you're going to pay us a lease payment.
• And the lease payment will be less than what you would have otherwise paid in property taxes.
• , just one lease payment to the school district.

Summary: The meeting covered a long series of House bills across health, commerce, education, elections, government, and veterans issues, with many measures described as consent-calendar items. In health and human services, members discussed updates to radiology technology standards, a tribal Medicaid waiver bill, an emergency medicine study committee, fetal death certificate and remains-transfer requirements, a physician assistant licensure compact, dementia care telemonitoring funding, and SNAP error-rate reduction and eligibility oversight. Sponsors generally framed these bills as technical updates, workforce or access improvements, cost savings, or support for families and vulnerable populations, while some bills drew brief questions about implementation or opposition. In commerce and finance, the committee heard bills on mobile food vendor licensing, earned wage access services, CPA certification, cash acceptance by retail businesses, unmanned aircraft regulation, timeshare salesperson licensing, social credit score restrictions for lending, and a ban on state assistance to the International Criminal Court. Sponsors emphasized reduced regulation, consumer protections, transparency, and state sovereignty. The committee also considered tax and retirement-related measures, including conformity with the Internal Revenue Code, ASRS technical changes, and a 529 plan update that also addressed Roth IRA rollovers. Education and school governance bills focused heavily on school district oversight and transparency. Members discussed patriotic youth group presentations in schools, school board term limits and mandatory training, bond-advisor requirements, restrictions on school districts buying operating charter or private schools to affect funding formulas, conflicts of interest on the School Facilities Oversight Board, public meeting and travel disclosure rules, limits on long-term school property leases, job-order contracting caps, and a computer science proficiency seal. Sponsors repeatedly argued these bills would improve accountability, prevent misuse of public funds, and increase public access to school board decisions. The meeting also included elections, veterans, government, and other administrative measures. These included changes to sample-ballot mailing deadlines, a requirement that courts ask about veteran status at first appearance, a veterans awareness study, broader military leave protections, SAVE database verification for voter registration and licensing, U.S.-sourced election equipment requirements, Electoral College affirmation, justice court due-process protections, library trustee reporting deadlines, adult protective services reporting cleanup, and procurement transparency. No final floor votes were taken in the excerpt, and most items were presented for questions or moved through consent with brief sponsor explanations and occasional opposition noted in committee testimony.

Transcript Highlights:

• THOSE PAYMENTS ULTIMATELY WOULD GO TO THIS BAD ACTOR WHO GOT THE INFORMATION TO BE CHANGED.
• SO IT IS A SHORTENED FRAUD SCHEME BECAUSE ULTIMATELY THE VENDOR WILL ASK FOR THESE PAYMENTS BUT BECAUSE
• SENT IN, UNFORTUNATELY DUE TO SOME CONTROL DEFICIENCIES UNKNOWN TO THEM THEY THEY DID PROCESS THE PAYMENT
• FAMU DID NOT ALWAYS MAKE PAYMENTS TO MEMBERS.
• BONUSES, RELOCATION PAYMENTS.

Transcript Highlights:

• I would like some explanation in this amendment under payment for school district on lines 2.15.
• I would like some explanation in this amendment under payment for school district on lines 2.15.
• I would like some explanation in this amendment under payment for school district on lines 2.15.
• I would like some explanation in this amendment under payment for school district on lines 2.15.
• I would like some explanation in this amendment under payment for school district on lines 2.15.

Committee: Senate Environment, Climate, and Legacy

Transcript Highlights:

• It changes the alternative compliance payments for classes one, three, and four to just above the other
• It changes the alternative compliance payments for classes one, three, and four to just above the other
• So the utilities end up having to make alternative compliance payments to make up the shortfall.
• So the utilities end up having to make alternative compliance payments to make up the shortfall.
• So the utilities end up having to make alternative compliance payments to make up the shortfall.

Summary: The committee first took up House Bill 219, which would revise the renewable portfolio standard. Representative Bose explained that the bill would modify class one definitions, eliminate class two, reduce the utility obligation for class one thermal renewable energy certificates from 2.2% to 1.7%, and adjust alternative compliance payments for classes one, three, and four. He said the changes were intended to save ratepayers an estimated $5.7 million annually, would not materially harm the renewable portfolio standard, and would have little effect on class two because that market is already saturated. Members questioned the impact on consumers, the state budget, and the renewable energy fund; Bose said the fund had already been redirected in the state budget, and another member noted an amended fiscal note showing a $1.2 million reduction in general fund revenue. The committee also discussed the bill’s history, including that it had been added to HB 2 and later removed by the Senate, and Bose said the Senate’s eventual action was hard to predict. The committee then heard House Bill 164 on local records retention from Secretary of State David Scanlan. He said the long-standing local records manager position had never been funded, but that the need for it had grown as towns increasingly digitize records and must ensure accessibility, including ADA compliance. He described the bill as a way to provide state support and expertise to municipalities, especially smaller towns with limited resources, and said the fiscal note for hiring the position remained accurate, though broader website and storage costs could rise over time. Members asked about retrieving lost records, the cost of a public website, and whether records should remain local or be stored at the state level; Scanlan said the state would serve as a resource rather than take control of local records. Finally, the committee began work on House Bill 365, also with Secretary Scanlan, concerning proof of U.S. citizenship for indigent voters. He said the bill would help voters who may lack required documents under the new voter registration law by allowing the state to verify qualifications through federal, private, or other state databases and by providing vouchers to cover the cost of obtaining documents such as birth certificates. He compared the proposal to earlier voter ID accommodations and said the goal was to help qualified voters meet the new requirements without weakening them. Members raised questions about defining “indigent,” how out-of-state birth records would be handled, and the practicality of the verification process; Scanlan said the term would likely need further discussion and that the state would try to assist voters before election day whenever possible.

Transcript Highlights:

• ,</c><00:50:04.319><c> which</c> forestry incentive aid payments, which forestry incentive aid payments
• So what we do on this is SFIA payments...
• through the SFIA payment will exceed the landowner's property tax liability.
• forest lands, half of those SFIA payments, by the way, go to 10 companies.
• </c> and how unlike some other um payments and how unlike some other um payments dealing<01:29:57.840

Transcript Highlights:

• I am an attorney and I worked on payments policy for about 18 years for U.S.
• amount, and the bill would only apply to 10% of the financial marketplace in California, will the payment
• Right now, the U.S. has about 25% of the payment card volume worldwide, but we have about 40% of the
• It is not a part of the payment processing system at all.
• That data does not go through the payment networks.

Committee: House Banking and Finance

Transcript Highlights:

• the 2025 Budget Act, the Governor's budget maintains and defers the one-time fourth-year compact payment
• The payment deferrals as soon as one-time funding becomes available.
• Doing so would return UC's payments to their original schedule.
• Some include out-year payments, and some of those are reflected in 2027-28 and 2028-29, as some of the
• payments to the UC retirement program.

Transcript Highlights:

• We're, I think, curious to know how behavior in corporate tax payments might change.
• And they've made some shifts in how corporations are remitting their tax payments that are also going
• But we are watching corporate tax payments.
• to fully fund. payments will not decrease enough for them to be able to fully fund that stipend.
• . ...in our payment terminal.

Committee: House Ways & Means

Transcript Highlights:

• We have direct payments to individuals and the states such as Social Security.
• Been historically seen as direct payments to beneficiaries.
• On the state's payment error rate. Our current payment error rate is at 14.4%.
• That's if we could get our payment error rate down. To about 5%.
• To match for hospital supplemental payments and so there's, there's certain Medicaid payments that go

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• </c><00:25:45.679><c> violation</c><00:25:46.679><c> to</c> order of wage uh payment violation to order
• But it differs from 388 because 388, we can issue the order of wage payment violation, but we wanted
• </c> can issue the order of wage payment can issue the order of wage payment violation<00:28:54.440><
• This would authorize the DLIR to issue an order of wage payment violation to make it consistent between
• violation uh to order of wage payment violation uh to make<00:42:07.560><c> it</c><00:42:07.760><c>

Committee: Senate Labor and Technology

Summary: The Committee on Labor and Technology heard several labor and personnel measures. Senate Bill 1567 would require the Department of Human Resources Development to conduct a comprehensive review of the executive branch classification and compensation system and allow it to contract with a third party outside normal procurement rules. Director Brana Hashimoto testified in support, saying the state has more than 1,400 classes of work and limited staff to keep the system current; she said outside vendor help and market data are needed to update class specifications, minimum qualifications, and pay structures. She noted the project scope and timeline would depend on funding, and said the governor had approved about $1 million for the effort. Members asked about vendor scope, comparisons to the private sector and other public employers, consolidation of obsolete classes, and whether the exemption from procurement rules would speed the work. The committee also heard Senate Bill 326 on defense of state employees, with testimony in support from HGEA, the Hawaii State AFL-CIO, and the Hawaii State Teachers Association. Senate Bill 337 would expand the pool of interest arbitrators used in collective bargaining disputes by allowing the Hawaii Labor Relations Board to request a list from the Federal Mediation and Conciliation Service and to use arbitrators from both FMCS and the American Arbitration Association; HGEA supported the bill, saying the broader pool would improve selection and address communication issues. Senate Bill 1233 would create a State Internship and Workforce Development Program within DeHerd. The University of Hawaiʻi, HGEA, the Hawaii Primary Care Association, and the Chamber of Commerce supported it. DeHerd said the program could help place interns into vacancies and convert them to civil service jobs, but said it would need about five FTE and roughly $330,000 in salaries to administer a program serving about 50 to 75 interns at a time; members questioned whether the positions could be filled and whether the program could proceed without added resources. The committee then heard Senate Bill 1359, which would increase the employer-based composite monthly contribution to the Hawaii EUTF Benefits Trust Fund beginning in January 2026 and then tie future increases to Medicare Part B premium changes with a lag. The EUTF administrator testified, and a member noted the measure resembled a bill that had died in conference the prior year. Senate Bill 1454 would give the Labor and Industrial Relations director authority to issue wage payment violation orders, establish penalties and appeals, and broaden the definition of wage; the department supported it, explaining it would align procedures under chapter 387 with existing chapter 388 enforcement and make investigations easier. Finally, the committee moved through a series of collective bargaining cost-item bills for various bargaining units and related entities, with testimony generally in support from Budget and Finance, HGEA, UH, HHSC, UPW, and other unions and associations. One amendment request was to include bargaining units 1 and 10 in the temporary hazard pay funding bill, and the Hawaii Fire Fighters Association noted its airport firefighters unit was still in arbitration and would provide final numbers later.

Transcript Highlights:

• I'm wondering if there is a data set that can help us estimate whether welfare payments—really looking
• And this is a benefit cost shift tied to the state's payment error rates, or the PER.
• And this is a benefit cost shift tied to state's payment error rates or the per.
• The LAO, on the payment error rate, clearly addressing that is a key fiscal priority for the state.
• Payments will conclude by May 26.

Summary: The Assembly Budget Subcommittee on Human Services opened its first hearing of the year with a discussion centered on CalFresh, the Department of Social Services, and related anti-poverty and immigrant services programs. Chair Jackson framed the hearing as a response to the “historic and enormous challenges” created by H.R. 1, emphasizing that the committee’s goal was to minimize harm to vulnerable Californians. No votes were taken in the hearing. The first major topic was the impact of H.R. 1 on CalFresh eligibility and administration. CDSS estimated major federal funding reductions, with hundreds of thousands of Californians potentially losing benefits under new time limits and work requirements for able-bodied adults without dependents, and additional losses among certain non-citizen groups. County welfare directors, eligibility workers, SEIU, and other advocates argued that counties are underfunded and understaffed to implement the new rules, and urged release of the previously authorized $20 million General Fund, a county match waiver, and an additional ongoing workforce investment. LAO and the Department of Finance said they were reviewing the administration’s proposals and emphasized the need to use existing data, automation, and statutory direction to reduce administrative burden and improve implementation. A second panel addressed county administrative backfill and the broader fiscal effects of H.R. 1. CDSS explained that the law shifts more administrative costs to the state and counties beginning in federal fiscal year 2027 and could also create future state benefit costs tied to payment error rates. County and food bank representatives warned that many counties will struggle to absorb the higher match and that penalties tied to payment error rates could worsen budget pressure. Members pressed Finance and CDSS for clearer timelines, written responses, and more detailed workload assumptions, while Finance said it was still analyzing the federal guidance and county resource needs. The final major topic was the California Food Assistance Program (CFAP) and possible state responses for people losing federal CalFresh eligibility. CDSS said CFAP remains limited by statute and by the federal structure it currently uses, but that the planned expansion to Californians age 55 and older regardless of immigration status remains on track for October 1, 2027, subject to funding. Immigrant advocates urged the state to fold newly excluded humanitarian immigrants into CFAP and to invest in outreach and administration, while Western Center on Law and Poverty proposed a broader state-funded anti-hunger response for people cut off by H.R. 1. LAO noted that the CFAP expansion is difficult to estimate and that further policy and technical work would be needed to assess costs and implementation options.

Transcript Highlights:

• be reflected in their future rate payments from DHCS.
• Payments from the department.
• The SSI/SSP payment amount for individuals has... ...of 33.1%.
• a one-time payment.
• This is a down payment... ...regions with no to little coverage.

Summary: The Assembly Budget Subcommittees held a joint hearing on older adults and long-term care supports and services, with members and witnesses focusing on the growing “forgotten/overlooked middle” of Californians who are too wealthy for Medi-Cal but unable to afford long-term services and supports (LTSS). Administration witnesses from DHCS and the Department of Aging described Medicare’s limited long-term care coverage, Medi-Cal’s role for low-income residents, and ongoing state work on LTSS financing, including a 2024 financing initiative and a final report due in 2026. Testimony emphasized rising costs, caregiver shortages, homelessness among older adults, and the need to preserve home- and community-based services to avoid more expensive institutional care. Several advocates urged immediate action, especially Medi-Cal share-of-cost reform, housing supports, and protection of HCBS funding. Members asked for the most urgent budget priorities and were told to focus on share-of-cost reform and assisted-living rate protections, along with broader system navigation and caregiver support. The committee also heard testimony on the Community-Based Adult Services (CBAS) program. CDA reported that CBAS serves about 42,000 participants through 304 centers, with demand generally stable but geographic gaps in some regions and staffing challenges after the pandemic. DHCS explained a rate-setting issue: a 10% CBAS rate increase had been mistakenly posted on the Medi-Cal fee schedule in 2024, and while Proposition 35 later made the targeted SB 159 rate increase inoperative, DHCS said any repayment by managed care plans would depend on contract terms and the department would not require clawbacks. CBAS providers and advocates warned that the program is in a financial crisis, with six center closures since June 2024, and requested $74.8 million ongoing General Fund to close about half the gap between current reimbursement and costs. Members expressed concern that clawbacks could accelerate closures and noted the program’s role in preventing institutionalization and supporting family caregivers. In the final panel, CDSS presented on In-Home Supportive Services (IHSS) provider recruitment and retention and on the AB 102 statewide bargaining report. CDSS said the IHSS Career Pathways program has concluded successfully, with more than 59,000 providers completing training, and that the AB 102 report—based on workgroup meetings and consultant analysis—will be sent to the Legislature shortly. The department said the workgroup viewed statewide bargaining as more viable than regional bargaining, but identified major issues around consumer participation, county fiscal impacts, administrative responsibilities, and the need to define bargaining scope in statute. CDSS estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Provider unions supported statewide bargaining, arguing it would improve wages, benefits, and workforce stability, while county representatives said any statewide model should preserve consumer focus, protect county finances and realignment funds, and keep core administrative functions with local public authorities. The hearing concluded without votes, with members requesting additional follow-up information and urging continued engagement ahead of the May revise.

Transcript Highlights:

• the 2025 Budget Act, the Governor's budget maintains and defers the one-time fourth-year compact payment
• Doing so would return UC's payments to their original schedule.
• Some include out-year payments, and some of those are reflected in 2027–28 and 2028–29, as some of the
• Some include out-year payments, and some of those are reflected in 2027–28 and 2028–29, as some of the
• payments to the UC retirement program.

Summary: The Assembly Budget Subcommittee on Education Finance, chaired by Assemblymember Alvarez, held a hearing focused on University of California budget issues. The committee reviewed UC core operations funding, enrollment trends, federal funding threats, Title IX implementation, and basic needs support. Major themes included the end of the Governor’s multi-year UC compact, the state’s fiscal outlook, UC’s enrollment growth, and the potential impacts of federal policy changes on research, health care, and student aid. On core funding, the Department of Finance described the Governor’s proposal to continue compact-related support, defer some payments, and authorize a cash-flow loan. The LAO recommended a smaller or no base increase, earmarking some funds for capital renewal, retiring deferrals when possible, avoiding new compact commitments, and funding UC annually rather than through compacts. UC argued that the compact has supported enrollment growth, student services, and operating costs, but said campuses face rising expenses, structural deficits, and limited reserves. Members questioned the effects of deferrals on students and discussed the need to prioritize less harmful reductions if cuts become necessary. The enrollment panel focused on UC’s growth in California resident enrollment and the nonresident replacement plan at Berkeley, UCLA, and UC San Diego. The LAO recommended maintaining the current enrollment target, funding enrollment separately from base increases, pausing the nonresident replacement plan, and holding enrollment flat in 2027-28. UC said it has already met compact enrollment goals, grown California undergraduate enrollment by about 18,800 students, and that further growth depends on ongoing state support. The committee also discussed the cost of enrollment growth, possible differential nonresident tuition, and a reporting request for UC to analyze the nonresident replacement approach; the motion to adopt supplemental reporting language passed. The hearing also covered federal funding risks, with the LAO and UC warning that federal changes could affect research grants, medical center reimbursement, and student financial aid. UC said research cancellations and suspensions are disrupting labs and graduate student support, while federal health policy changes could increase uncompensated care at UC hospitals. In the Title IX update, UC described its systemwide civil rights structure, annual student training, and campus support offices, and members praised the work while asking about ongoing concerns and intersegmental collaboration. The final basic-needs item began with Finance stating the Governor’s budget does not change ongoing support, but the transcript cuts off before further discussion or action.

Transcript Highlights:

• She said she made cash payments. I tried to get proof from her that the payments were made.”
• Respondent filed an answer recommending payment in that amount.
• Respondent filed an answer recommending payment in that amount.
• this will So this is coming from the teachers' payment?
• I have the ledger here that shows that they made payments, each payment. No further questions.

Committee: All ALC-CLAIMS REVIEW/LITIGATION REPORTS OVERSIGHT

Summary: The committee first reviewed several wage-claim and labor-related litigation reports from the Department of Labor and Licensing. Members questioned the department’s authority and jurisdiction, whether it was acting like a court, and why it sought attorney’s fees and costs. Department staff explained that the claims arose under the Arkansas Minimum Wage Act and related labor statutes, that the department investigates small wage claims and can file suit when informal resolution fails, and that filing fees are waived by statute though service costs may be incurred. The committee reviewed individual cases, including one where the employer had not proven cash payments, another that had already been paid and dismissed, and a third where service could not yet be completed. The committee then voted to review or batch-file the labor items. The University of Arkansas System then reported on three pending lawsuits under the litigation-notification statute. One case involving a tenured professor alleging age and race discrimination had already been resolved and dismissed after the university re-engaged in discussions about a position. A second case involving a former employee alleging ADA and FMLA retaliation was moving forward after partial dismissal and an answer denying liability. A third case involved a former vendor employee alleging retaliation tied to a parking ticket; members asked about individual-capacity exposure for a university police sergeant, and counsel explained that punitive damages could potentially create personal exposure. The committee reviewed each report. The Department of Finance and Administration presented a proposed tax settlement reducing a sales-and-use tax assessment from about $48,000 to $20,000, with interest and penalties waived, and the committee approved it. The Claims Commission then presented several claims and settlements, including an unpaid salary differential for the Department of Health, reissued warrants, unpaid bills for DHS, and multiple negotiated settlements involving UAMS, Arkansas State Police, and ARDOT; these were generally approved or batched for approval. The most extensive discussion involved a settlement between the Teacher Retirement System and Tetronics International Limited in liquidation, arising from losses tied to the failed Blue Oak project; members questioned the company’s liquidation status, the prior investment loss, and why the matter was settling for $65,000, and the committee ultimately affirmed the settlement. The committee also heard a disputed tax-sale claim involving the Commissioner of State Lands, where a claimant argued that excess proceeds from a 2009 tax sale should have gone to her family rather than escheating to the county. After testimony from the claimant and counsel, members debated sovereign immunity, heirship, and whether the committee could or should award the $4,200 overage. The motion was amended and then replaced with a motion to hold the matter over for further review in a future joint session, which passed. Finally, the committee considered an appeal by Andrew Simpson challenging dismissal of his claim against the Arkansas Court of Appeals; after Simpson and court staff explained the underlying dispute, the committee reviewed the dismissal and the matter was held over for further consideration.