Transcript Highlights:

• is that the Public Education Reform Fund work, or PERF, as we have been shortening it to, is a collaborative
• And this should allow for increased collaboration and skill building for our teachers.
• Additionally, because the... ...models have different levels of evidence, it's unknown necessarily how
• I also want to thank LFC, DFA, and LESC for a very collaborative process with P.E.D.
• So if the school is having multiple programs, we can put that into our model.

Transcript Highlights:

• OF SUPPORT AND OPPORTUNITIES FOR YOUNG PEOPLE AND CARE.
• THE MODEL WAIVER SO IT CAN SERVE ALL MEDICAID ELIGIBLE THE MODEL WAIVER SO IT CAN SERVE ALL MEDICAID
• THIS INCLUDES P PAC PRESCRIBED PEDIATRIC EXTENDED CARE.
• SUMMER UNDER MANAGED CARE.
• IMPROVING CRISIS RESPONSE AND ACCESS TO CARE. ENHANCING PATIENT TREATMENT AND CONTINUITY OF CARE.

Keywords: 999, senate, all

Transcript Highlights:

• It deprives the Commonwealth of health care providers.
• Reiki supports medical care.
• Complementary and alternative health care services. Thank you.
• Medical care these days, okay? Difficult and costly. What I do is not alternative to medical care.
• We're doing it because we care.

Keywords: 995, all

Summary: The committee opened a hearing of the Joint Committee on Consumer Protection and Professional Licensure and reviewed a broad agenda including credit card fees, event ticketing, music therapy licensure, senior psychologist licensure, CPA pathways, school mental health licensure, and a bill regulating alternative healing therapies. The chairs explained hearing logistics, including three-minute testimony limits and submission of written testimony, and noted that more than 70 people had signed up to testify. Legislators and advocates were heard out of order throughout the day. A major portion of the hearing focused on credit card surcharge and interchange legislation. Restaurant owners, the Massachusetts Restaurant Association, NFIB, and other small-business witnesses supported bills allowing merchants to add convenience fees and, in one proposal, preventing card companies from charging fees on tax and tip portions of transactions. They argued that swipe fees are a major and growing cost, especially for restaurants, and that Massachusetts is one of only two states that bars surcharges. Opponents from the Cooperative Credit Union Association, the Electronic Payment Coalition, and the Electronic Transactions Association warned that the proposals would create compliance burdens, fragment the payment system, raise legal preemption issues, and disrupt a system they described as efficient and secure. The committee also heard competing testimony on ticket transferability and ticket resale. Supporters, including the National Consumers League and Sports Fans Coalition, said bills on ticket transferability would protect consumers who cannot attend events and would increase competition and savings in the secondary market. Opponents, including United Musicians and Allied Workers and theater owners, argued that mandatory transferability would weaken artists’ and venues’ ability to prevent scalping and predatory resale, and that some ticket sellers should be exempt from the broader ticketing regulations. Separate testimony supported music therapy licensure, senior psychologist licensure, and new CPA education pathways, with witnesses saying these measures would expand access to care and strengthen the workforce while maintaining professional standards. The hearing also drew extensive opposition to S.261 on alternative healing therapies, with practitioners and clients arguing it would overregulate spiritual and holistic practices and was not an effective response to human trafficking concerns.

Transcript Highlights:

• We are and still are the model for how we administer these ARPA dollars.
• With that, we'll move to an update from the Government Transformation and Collaboration.
• The Government Transportation and Collaboration Working Group.
• The mobile dinner program has been providing much-needed dental care for citizens across Oklahoma.
• We also appreciate the efforts of care providers of Oklahoma.

Keywords: 914, all

Transcript Highlights:

• staff member is behind all those actions supporting our students, and we know that we need to take care
• <00:13:47.120> of<00:13:47.279> our know that we need to take care of our know that
• we need to take care of our our<00:13:47.800> staff<00:13:48.720> and<00:13:49.000>
• These steps take careful planning and implementation, requiring collaboration among multiple staff members
• Minnesota's current PSO funding model Minnesota's current PSO funding model places<01:07:33.480>

Keywords: 1183, house

Summary: The Education Policy Committee approved the minutes from January 21, 2025, and then heard testimony from several school superintendents about the financial and operational impact of recent education-related mandates. Chair Bennett framed the hearing as an opportunity to hear from districts about the effects of more than 65 new mandates and restrictions adopted in recent years. The first witnesses were Corey McIntyre of Anoka-Hennepin, Michael Thomas of Prior Lake-Savage Area Schools, and David Law of Minnetonka Public Schools. The superintendents said districts are facing rising costs, flat or declining enrollment, the end of federal pandemic aid, and mandates they described as unfunded or underfunded. McIntyre cited major budget cuts in Anoka-Hennepin, including reductions in central office staff, and said the district faces continuing shortfalls tied to special education, multilingual learner costs, unemployment claims, paid leave, transportation, literacy materials, and the K-3 discipline statute. Thomas said Prior Lake-Savage is balancing growing student needs against limited revenue, and argued that mandates such as REACT and other requirements should be delayed or better funded so districts can implement them with fidelity. Law said the concerns are statewide, not just metro-based, and criticized the accumulation of expectations around food service, mental health, sick and safe time, unemployment, and family leave without corresponding resources. Several witnesses emphasized that school budgets are heavily committed to staff costs and that new obligations create administrative burdens as well as direct expenses. They urged lawmakers to reduce, delay, or better fund mandates, adjust timelines, and provide more flexibility in local revenue tools and equalization aid. No votes were taken on legislation during this portion of the meeting beyond approval of the prior day’s minutes.

Transcript Highlights:

• the alternative learning experience program, the ALE program, and the different types of program models
• And that is different from the typical seat-time model, which is based on actual... ...different from
• And that's true regardless of the course type or the model that a district might create.
• State collaboration. Incentives that reward outcomes, evidence-based models.
• State collaboration is key for scaling models such as ours and others.

Summary: The committee met to hear an overview of Washington’s alternative learning experience (ALE) programs and then an update on artificial intelligence in schools. OSPI’s Anissa Sherritt explained that ALE is a course-level funding designation for instruction that occurs partly or wholly away from the traditional seat-time model, with online, site-based, and remote course types. She emphasized that ALE is still basic education, subject to the same public school requirements, and that OSPI provides technical assistance, annual reporting review, and program reviews. Representatives from several programs described different models: Washington Virtual Academy (a large online ALE operated through Omak School District and partnered with for-profit Stride), Columbia Virtual Academy in Valley School District (a district-run, nonprofit online/remote program), Pearl in Quilcene (a K-8 remote parent partnership program), and River Home Link in Battleground (a site-based hybrid program). They discussed student supports, special education, enrichment, family choice, transportation, and how they measure outcomes. Members asked for follow-up information on funding, demographics, racial and ethnic data, multilingual learners, and post-graduation outcomes, and OSPI agreed to provide additional data where available. The committee then heard from OSPI and several districts about AI guidance and implementation. OSPI’s Holly Ryan Calloway described the agency’s human-centered AI framework, three guidance documents for schools, statewide professional learning, an AI innovation summit, and new AI literacy and informatics course frameworks and CIP codes. Quincy School District described a multi-year effort to integrate AI by centering student needs, creating district policy and classroom guidance, and training teachers to use AI responsibly while building an AI readiness plan from elementary through high school. Peninsula School District described its AI action research team, teacher professional learning, and classroom uses of generative AI to support science instruction, communication, and prompt engineering, while stressing that AI should enhance rather than replace learning. Members raised questions about privacy, energy and water use, prompt engineering, workforce and university connections, and the need for clear standards and ongoing educator training. No votes were taken.

Transcript Highlights:

• I have a suite of bills in the care and protection space.
• He argued that the state's representation model for children is limited.
• In fact, she threatened me. child care in the state?
• All three girls are in foster care.
• They would have been safe in my care. The trauma lingers.

Keywords: 995, all

Summary: The committee heard testimony on a package of Department of Children and Families bills focused on care and protection proceedings, sibling placement, parenting time, foster parent eligibility, adoption timelines, and a proposed Harmony Montgomery Commission. Rep. Marjorie Decker framed her bills as a set intended to reduce trauma for children removed from home by promoting sibling placement, visitation, cultural continuity, and limits on barriers to foster/adoptive placement. Witnesses from CASA, the Massachusetts Child Welfare Coalition, CPCS, and others generally supported the sibling-placement and parenting-time bills and the Harmony Commission, while several urged that the commission include a birth parent with lived experience and that its scope remain focused on child safety and family rights. A former juvenile court judge also supported the Harmony Commission, citing failures in the Harmony Montgomery case and broader concerns about DCF power and child representation. No votes were taken during the hearing. A large portion of the hearing focused on Senate 114, the “Family Protection and Transparency Act,” which would require DCF to provide families with written and verbal notice of their rights during investigations, including the right to remain silent, consult counsel, and refuse entry absent legal authority except in emergencies. Supporters included parents, former foster youth, attorneys, advocates, and a peer mentor, many of whom described personal experiences of confusion, coercion, retaliation, and family separation when DCF became involved. They argued the bill would improve due process, language access, transparency, and accountability without limiting DCF’s emergency powers. Several witnesses also described intergenerational DCF involvement and said families often need resources and legal guidance rather than punitive intervention. Testimony on House 268 emphasized the importance of keeping siblings together in foster care whenever possible. Advocates cited research showing better mental health, educational, and reunification outcomes when siblings remain together, and several young people testified about being separated from brothers and sisters and the lasting impact of that separation. CPCS supported the bill and said regular sibling visitation should be required when joint placement is not possible. House 269, 270, 271, 288, and 293 were also on the notice, but the transcript reflects little or no testimony on some of those measures. The hearing concluded after the committee heard from all scheduled witnesses and invited written testimony for additional details.

Transcript Highlights:

• Very much appreciate the collaboration on this bill and looking forward for it to bring us housing more
• Very much appreciate the collaboration on this bill and looking forward for it to bring us housing more
• It's a very successful model.
• These are unique opportunities that we have, and to see what we have done in Napa County—it’s a model
• It's actually fundamentally a very good thing—child care costs.

Keywords: 987, senate, all

Transcript Highlights:

• And that's the current model.
• And that's the current model.
• model?
• Our FTES model is based on seat time.
• Our FTES model is based on seat time.

Summary: The committee heard an overview of the California Community Colleges budget proposal, including Proposition 98 funding, a 2.41% COLA for apportionments, enrollment growth funding, repayment of an apportionment deferral, and one-time investments for a student support block grant and deferred maintenance. The Department of Finance described the Governor’s package as providing significant new resources, while the LAO recommended prioritizing COLA and enrollment growth within available funds but raised concerns about some smaller proposals, including making the Healthy School Food Pathways Program ongoing and adding more funding for credit for prior learning before outcomes are known. The Chancellor’s Office supported the COLA, enrollment growth, and one-time investments, and said current projections suggest enrollment growth closer to 3%, with about $85 million to $90 million in ongoing costs if fully funded. Members focused heavily on enrollment growth, the 10% district cap, and whether the state should continue funding growth in the current year and budget year. The Chancellor’s Office said some districts, especially in the Inland Empire and Central Valley, are growing rapidly and that about seven districts are above the cap, with roughly 1,563 FTES and about $30 million in ongoing costs tied to that issue. Members also discussed hold-harmless districts and whether declining campuses should be required to produce turnaround or right-sizing plans. The Chancellor’s Office said districts are already having local conversations and that state funding provides time to adjust, but no formal plan requirement was proposed. The committee then took up common course numbering, where the Chancellor’s Office said all 115 community colleges have implemented the first phase and more than 550,000 students enrolled in the first six commonly numbered courses. The office argued that CCN improves clarity but does not yet guarantee that credits will transfer with full value across UC and CSU, because articulation is still handled campus by campus and can require more than 3,500 separate reviews. Members expressed concern that students can still be forced to retake courses such as calculus or ethnic studies even when they have the same common number, and urged the systems to develop a stronger statewide articulation mechanism tied to outcomes and transparency. The item was left open. Finally, the committee heard the Governor’s proposal to make Calbright College’s funding ongoing at $53.1 million. The LAO recommended instead transitioning Calbright to the student-centered funding formula, with one-time bridge funding in the meantime, arguing the Governor’s proposal lacks a clear enrollment-based rationale and performance expectations. Calbright’s leadership defended the college’s competency-based, flexible model for adult learners, citing more than 6,800 students served, over 2,200 certificates awarded, and wage gains for graduates; they said enrollment is expected to grow from about 7,000 students now to roughly 8,000 to 9,000 next year and around 10,000 over the next couple of years. Members pressed for clearer enrollment and funding data before deciding how Calbright should be funded going forward.

Transcript Highlights:

• Um, it's nice to see that we're able to collaborate on this.
• The model of holding conferences from 3:30 to 7:30 at night was described as archaic, especially for
• They described the old model of conferences as archaic and said the district worked collaboratively with
• <00:45:51.920> of conferences that frankly the model of conferences that frankly the model
• conversation and it was a collaborative conversation and it was a collaborative process<00:46:04.800

Bills: HF630, HF1435, HF1607

Keywords: short-call substitute, substitute teacher, substitute teaching license, pilot program, teacher shortage, education workforce, school district, charter school, Professional Educator Licensing and Standards Board, PELSB, background check, paraprofessional, education support personnel, temporary license, substitute training, retaliation, teacher pay, daily substitute pay, Minnesota education law, education innovation

Transcript Highlights:

• That somebody is going to take care of my kid.
• And we talked about the Norwegian model and I said well the governor likes the Norwegian model, so I'm
• to the Norwegian model, which includes $8 $8 ready for work.
• the Norwegian model actually has a lot to offer for California.
• There's much we can learn from the Norwegian model.

Keywords: 988, house, all

Transcript Highlights:

• Task Force of New Collaborative Task Force of New Hampshire<00:14:44.079> in<00:14:44.320>
• Through organized<00:28:21.360> collaboration,<00:28:22.320> multiple organized collaboration
• , multiple organized collaboration, multiple communities<00:28:23.120> across<00:28:23.440>
• , law enforcement, and all of health care, law enforcement, and all of you. you. you.
• force works to provide a collaborative force works to provide a collaborative and<01:10:13.440><

Keywords: 1191, senate, all

Transcript Highlights:

• tool for delivery of Health Care tool for delivery of Health Care Services<00:20:25.520> particularly
• One of those areas is called the hospital-to-home model.
• dramatically improved my ability to care dramatically improved my ability to care for<00:28:41.080
• of care, which is badly needed for complex medical problems.
• that I don't my job is to provide care that I don't my job is to provide care for<01:09:08.480><

Keywords: 1191, senate, all

Transcript Highlights:

• for the cancer a self-sustaining model for the cancer center<00:22:58.559> of<00:22:59.039>
• <00:23:51.919> I<00:23:52.159> I'm<00:23:52.320> I'm prospective model?
• I I'm I'm prospective model? It's fine.
• So one, I would love to collaborate with someone to find out whether it's engineers or policy holders
• So in the modeling that cost increases.

Keywords: 912, senate, all

Summary: The committee heard three University of Hawaiʻi-related measures. HB 718 HD1 would appropriate funds for faculty and staff positions at the John A. Burns School of Medicine in cardiovascular, law, biology, tropical medicine, quantitative health/biostatistics, and environmental health and safety. Testimony was in support, including from university representatives and others who submitted written testimony. Members asked whether the positions were additional and how they would affect enrollment; the university said the hires would teach medical students and conduct biomedical research, helping increase the class size to about 77 and eventually 80, and noted a workforce paper requested by the committee would be provided soon. The committee then discussed SB 1170 HD1, which would grant resident tuition at any UH campus to certain graduates of Hawaiʻi high schools enrolling in undergraduate programs. UH supported the bill and said it had adjusted its testimony in response to prior committee concerns. Members focused on the proposed four-year window, asking why that timeframe was chosen and whether the change was needed at all. UH explained that four years would allow students who left the state to return and still complete an undergraduate degree or prepare for graduate school, and said the bill would help students who come back after one or two years but otherwise would have to wait a year to reestablish residency under current rules. UH also said it was discussing possible administrative rule changes as an alternative if the bill did not pass. Finally, the committee heard HB 1300 HD1, which would fund a University of Hawaiʻi Cancer Center pilot study on cancer disparities among Native Hawaiians, Pacific Islanders, Filipinos, and people living near landfills in Nanakuli, focusing on social determinants of health, lifestyle, environmental exposures, and resilience factors. Testimony from researchers and advocates strongly supported the measure, saying the study could help explain cancer disparities and support future research funding. Members questioned the cost, the reliance on future federal or foundation funding, and the practical outcome of the study. The Cancer Center said the pilot would cost about $500,000 per year for two years, with later funding sought from federal, nonprofit, or private sources; it said the study would produce longitudinal data that could help identify at-risk groups and provide evidence for policy decisions, though members expressed concern that the project needed a clearer end goal and stronger case for public investment.

Transcript Highlights:

• This is an intensity model that's modeled after other states that have been successful with this.
• Well, that's the power behind the model, and the change is inherent within the bill.
• And right now, the bill pattern says full continuum of care for SSLC info.
• We've got a framework now with an intensity model, and we know what areas we're looking at.
• And so this provision ensures that health care providers are always aware of the underlying...

Bills: SJR12, SJR81, SCR39, SB22, SB32, SB241, SB393, SB414, SB458, SB464, SB568, SB583, SB609, SB660, SB693, SB731, SB732, SB746, SB783, SB785, SB897, SB993, SB996, SB1008, SB1029, SB1035, SB1036, SB1120, SB1122, SB1147, SB1163, SB1188, SB1197, SB1209, SB1227, SB1245, SB1267, SB1307, SB1321, SB1332, SB1386, SB1394, SB1396, SB1470, SB1494, SB1537, SB1596, SB1598, SB1610, SB1664, SB1814, SB1822, SB1841, SB1948, SB2065, SB2155, SB2406, SB2407

Keywords: parental rights, education, constitutional amendment, school choice, child education, tax exemption, ad valorem, tangible personal property, income production, border security, southern border, federal immigration policy, illegal immigration, cartels, transnational cartels, fentanyl, drug trafficking, human trafficking, Operation Lone Star, Texas border

Summary: The Senate opened with a quorum call, invocation, approval of routine motions, and the reading of gubernatorial nominations and several honorary resolutions. The chamber adopted resolutions recognizing Jack and Jill of America Day and DJ Daniel Day at the Capitol, with multiple senators offering remarks praising youth leadership, perseverance, and public service. The Senate also introduced the Doctor of the Day and then proceeded to a long series of floor actions on bills. A major focus was Committee Substitute for Senate Bill 568, which overhauls special education funding and services in public schools by moving from a placement-based model to an intensity-based system tied to student needs and IEPs. Senators Bettencourt, Creighton, and Menendez emphasized transparency, parent input, evaluation funding, dyslexia services, and better alignment of funding with actual services; Senator Hinojosa shared a personal story about dyslexia and the importance of early intervention. The bill was advanced on second and third reading and finally passed 30-0. The Senate also passed SB 1396 to prohibit national sex education standards in public schools, SB 2065 on the Texas Emergency Services Retirement System, SB 1664 requiring clearer public disclosure of transmission and distribution utility rate changes, SB 1029 on advertising certain used motor vehicles, SB 1120 expanding rights for family violence victims, SB 1036 regulating residential solar retail transactions, SB 464 creating school-proximity restrictions and penalties for tobacco and vaping sales, SB 1035 giving farmers and ranchers equitable relief from certain local agricultural regulations, SB 1610 addressing civil commitment facility safety and prosecution issues, SB 1197 extending drone restrictions to spaceports, and SB 1386 changing legislative witness immunity from transactional to testimonial immunity. Another major bill was Committee Substitute for Senate Bill 1188, which updates electronic health record requirements. Senator Kolkhorst said the bill builds on Texas medical privacy law by requiring U.S.-based storage of EMR data, prohibiting recording of voter registration status and credit score information, requiring provider verification and disclosure for AI-assisted diagnosis or treatment recommendations, preserving parental access to minors’ records until age 18, and ensuring EMRs can capture metabolic health and biological sex information. A floor amendment clarified the bill’s scope and enforcement, and the bill passed 23-7. Several measures drew debate, especially SB 414 on bond ballot transparency, where Senators Eckhardt and Menendez questioned whether requiring estimated interest and total debt cost on ballots could be misleading or difficult to implement because interest rates and financing terms can change before issuance or over time. The transcript ends during that discussion, with no final action shown on SB 414.

Transcript Highlights:

• act has proven because in collaborative act has proven because in the<00:26:36.640> collaborative
• You've you've taken care at that point.
• using um regional models on that. using um regional models on that.
• Um whether it to be school models.
• Um looking at hybrid models colleges.

Keywords: Education - Room 216, 22 January, 2026; 10:30 AM, 925, all

Summary: The committee took up several education-related bills. Senate Bill 2071 would allow school boards to vote on providing health insurance to board members and their dependents using local, not state, funds; it was advanced after Senator Brian objected that it could create an incentive for people to seek school board seats for the insurance benefit. Senate Bill 2072 would move the deadline for teacher supply cards earlier, from August to July, using EF funds, and it was reported. Senate Bill 2103 would require school boards to adopt policies banning or restricting student cell phone use during school and class time, and it was also reported. Senate Bill 21103 would remove a requirement that school counselors follow the National Association of School Counselors’ code of ethics and instead align them with the Mississippi teacher code of ethics; it passed without opposition. Senate Bill 2236 would authorize the use of LifeVac choking devices in schools, with the sponsor saying the devices are inexpensive and could be provided free to districts; it passed as well. The committee then spent most of its time on Senate Bill 2242, the Mississippi Math Act, which would create a statewide math improvement initiative within the Department of Education. The bill would deploy math instructional coaches, require K-5 universal math screeners three times a year, create individual math plans for students below benchmark, support algebra readiness, protect data under FERPA, and establish a fund for grants and other deposits. Senator Boyd said the bill is modeled on efforts in other states, especially Alabama, and is intended to build on Mississippi’s literacy reforms by focusing on support, intervention, and professional development rather than retention or punishment. Members raised concerns about cost, the proposed anti-lapsing language for the fund, and whether the bill should require high-quality instructional materials statewide rather than leaving curriculum choices to local districts. Senator Hopson estimated the program could cost about $3.5 million and suggested the anti-lapsing language might be removed or handled through appropriations. Senators Blunt, Hill, and Wiggins argued that the success of literacy reforms came from requiring standardized, high-quality instructional materials and accountability, not home rule alone. Senator Wiggins offered an amendment to require high-quality instructional materials for math statewide, and Senator Boyd said he was supportive of that as a friendly amendment. The discussion ended with the amendment still being worked through and the bill not yet finally disposed of in the excerpt.

Transcript Highlights:

• So it's a great way that the state works in collaboration.
• But now we're seeing the apprenticeship model move into information, technology and health sciences.
• We work in collaboration with them.
• We have great health care programs. We have great opportunities.
• The Florida College System, Santa Fe College respondent in collaboration with our partners.

Keywords: 999, senate, all

Transcript Highlights:

• We don't want to delay care, interrupt care, get people inadequate care that doesn't work because when
• We don't want to delay care, interrupt care, get people inadequate care that doesn't work because when
• We don't want to delay care, interrupt care, get people inadequate care that doesn't work because when
• We don't want to delay care, interrupt care, get people inadequate care that doesn't work because when
• We don't want to delay care, interrupt care, get people inadequate care that doesn't work because when

Keywords: 1183, house

Transcript Highlights:

• It is very clear that from a health care perspective, OB3 will be worsening the health care gaps, which
• But we also know that it's a proven model that we can apply within health care, within financial services
• They are not the only ones that use this model.
• Take care of yourself.
• , food, child care, and other critical supports.

Keywords: 995, all

Summary: The Joint Committee on Racial Equity, Civil Rights, and Inclusion held a hearing on the impact of federal policy on the racial wealth gap in Massachusetts, the fourth in a series on federal impacts on racial equity. Chair Bud Williams and Chair Miranda opened by emphasizing that no bills were being heard and that the committee would instead take testimony from invited witnesses; public written testimony was also accepted. The chairs and witnesses repeatedly cited long-standing wealth disparities affecting Black and brown communities, including homeownership, wages, business ownership, and access to capital, and linked those disparities to federal policy changes, housing, education, health care, and workforce development. Administration officials testified first. Secretary of Labor and Workforce Development Lauren Jones described persistent labor market disparities, including higher unemployment for Black and Latino residents, lower median hourly wages, and underemployment among degree holders, and highlighted state efforts such as ESOL-for-work funding, workforce training grants, MassHire career centers, skills-based hiring, and the state equity dashboards. Secretary of Health and Human Services Kiami Mahania argued that poverty drives poor health, not the reverse, and said wealth gaps contribute to chronic disease, maternal health inequities, medical debt, and shorter life expectancy; she pointed to the Advancing Health Equity Massachusetts initiative, a health care affordability working group, and the governor’s push to bar medical debt from credit reporting. Assistant Secretary Juan Vega of EOED focused on entrepreneurship and procurement, citing technical assistance grants, founder support programs, place-based investment, the Business Front Door, and the need to broaden access to contracts, capital, and business growth opportunities. Committee members pressed the panel on the effects of the federal “big beautiful bill” on households, especially single-parent and Black women-led households, and on whether the state could develop more timely data systems instead of relying on federal numbers. Officials said the impacts were still being monitored, but warned that Medicaid and SNAP changes would likely hit lower-income households and community institutions hard. Members also asked about unions and apprenticeships, microbusiness definitions, supplier diversity, pay equity, and degree inflation; the administration said registered apprenticeships and skills-based hiring are key tools, and noted that wage equity reporting is still in its early stages. Later testimony from BECMA’s Nicole O’Bean stressed that tariffs, DEI rollbacks, immigration enforcement, capital gaps, and federal funding cuts are constraining Black-owned businesses and inclusive procurement, while Gastón Institute researchers described severe Latino homeownership and rent burdens, educational inequities, and the need for housing, labor, and education policy changes to close the wealth gap.

Transcript Highlights:

• Corporations are profiting off of the sweeping cuts to health care, food assistance, and our safety net
• Corporations are profiting off of the sweeping cuts to health care food assistance and our safety net
• You know, but having some broad standards that anybody could be eligible for under a tax credit model
• Yesterday, nearly 100 wildfire survivors walked the halls of the Capitol, urging support for the CARE
• Well, as you just heard, cities and counties and continuums of care, many of them are just receiving

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.