Transcript Highlights:

• I represent House District 50, which is the southern half of Santa Fe County.
• I represent House District 50, which is the southern half of Santa Fe County.
• And the Placidus area, southern half of Santa Fe County, Placidus area of Sandoval County.
• From Northern Santa Fe County.
• It can be very hard to get the students to leave the Albuquerque and Santa Fe area.

Bills: SB1 , SB3

Committee: House House Judiciary

Keywords: interstate medical licensure compact, physician licensure, medical license reciprocity, expedited licensure, medical practice act, New Mexico medical board, compact commission, physician mobility, telemedicine, license portability, background check, disciplinary action, joint investigation, reproductive health care, gender-affirming care, scope of practice, medical board transparency, multistate compact, licensure renewal, health care workforce

Transcript Highlights:

• Elizabeth Espinos, on behalf of the Board of Supervisors in the County of Santa Clara, also in support
• Moved by the GOP weed guy, by Assemblymember Lackey, and the Santa Cruz weed gal, seconded by Assemblymember
• And the Santa Cruz weed gal by seconded by assembly member Pellerin, Madam Secretary, please call the

Summary: The Assembly Privacy and Consumer Protection Committee heard several bills focused on AI, immigration-related health care protections, digital financial assets, and online cannabis/hemp sales. SB 69 by Senator McNerney would create an AI-focused team within the Department of Justice to build enforcement expertise on civil rights, public safety, and legal issues tied to AI. SB 81 by Senator Arreguín would codify hospital and health facility policies limiting disclosure of patient immigration status and restricting immigration enforcement access without a judicial warrant. SB 97 by Senator Grayson would update and clarify California’s digital financial assets licensing law. SB 243 by Senator Padilla would impose guardrails on AI companion chatbots, including disclosures, anti-addictive design limits, self-harm protocols, and a private right of action. SB 378 by Senator Wiener would allow civil penalties against online marketplaces that advertise illicit intoxicating hemp and unlicensed cannabis products. Testimony on SB 69 emphasized that California needs in-house AI enforcement expertise at the DOJ; supporters said AG offices generally lack tech-policy specialists, while members asked about the Attorney General’s role and noted the office was neutral. SB 81 drew broad support from nurses, immigrant advocates, hospitals, labor, and community groups, who argued that hospitals should remain safe places for care regardless of immigration status; there was no opposition. SB 97 was described as a technical cleanup bill with stakeholder consensus, and the main public comment focused on ensuring blockchain-based nonfinancial products are not unintentionally swept into the law. SB 243 generated the most debate. Supporters, including the mother of a Florida teen who died by suicide after interacting with a chatbot, urged stronger protections for minors and vulnerable users. Opponents argued the bill’s definitions were too broad and could capture general-purpose AI systems, and raised concerns about privacy, cost, and a private right of action. Committee members largely supported the bill’s intent and discussed the need for guardrails without stifling innovation. SB 378 was supported by cannabis workers, retailers, and local government representatives who said online sales of untested intoxicating hemp and illegal cannabis are harming public health and the legal market; opponents from hemp and tech groups argued the bill could sweep in lawful hemp businesses and that definitions need refinement. The committee ultimately passed SB 69, SB 81, SB 97, SB 243, and SB 378, with SB 81 and SB 243 amended, and all five bills were sent onward to their next committees.

Transcript Highlights:

• urban counties of California, the rural county representatives of California, and the counties of Santa
• Clara, Ventura, Riverside, Santa Cruz, and Santa Barbara. ...of the urban counties of California, the
• rural county representatives of California, and the counties of Santa Clara, Ventura, Riverside, Santa
• Cruz, and Santa Barbara.
• George Cruz on behalf of the California Behavioral Health Association.

Summary: The Assembly Budget Subcommittee on Human Services held a hearing on the Governor’s May Revision, with no votes taken. The first major topic was child care and early education, where the Department of Social Services and Department of Finance outlined proposed changes to absorb federal Child Care and Development Fund and Proposition 64 revenue reductions, shift some funding between child care programs, end funding for prospective pay implementation now that the federal requirement has been rescinded, adjust the alternative payment administration structure, and fund child care infrastructure grants and a Low-Income Investment Fund contract closeout. The Legislative Analyst’s Office said the budget makes progress on the structural deficit but recommended maintaining the administration’s solution level, making reserve deposits, and avoiding new ongoing commitments; it also raised concerns about shifting reductions to the California Alternative Payment Program and about the proposed administrative-rate change. Committee members strongly criticized the proposed loss of child care slots and said they would oppose eliminating those slots, while also expressing support for child care as essential infrastructure. The committee then reviewed California State Preschool Program proposals. Finance and CDE described reductions to the preschool COLA from 2.41% to 2.01%, removal of prospective pay funding, and increases for the QRIS block grant, audit support, and rate reform implementation. Trailer bill language would codify age-based rate categories, inclusion-rate documentation, family fee collection rules, portability, and excused absences. CDE supported the QRIS increase and some attendance and family-fee changes, but warned that aligning three- and four-year-old rates could reduce support for three-year-olds and that the budget does not fully cover enrollment growth. Members also questioned whether the preschool and child care slot reductions should be reallocated rather than terminated, and the administration said the reductions were intended to reflect current utilization and avoid harm to currently enrolled families. The hearing then moved to CalFresh and nutrition programs. CDSS said the May Revision includes a one-time CalFood augmentation, funding to cover federal SNAP administrative cost-share pressures, and additional staffing and technical assistance to implement HR 1 changes, including the able-bodied adults without dependents time limit and new non-citizen eligibility rules. The department estimated HR 1 could cut CalFresh funding by $2.3 billion to $3.7 billion annually and affect about 500,000 people, with roughly 806,000 adults potentially subject to the time limit and about 34,000 non-citizens expected to lose eligibility once fully implemented. Members pressed for stronger harm mitigation, including a $98 million backfill to protect families from losing food benefits, and raised concerns about county workload and the “chilling effect” on immigrant participation. The final portion of the transcript began the IHSS presentation, noting a revised budget of $33.7 billion total funds and $12.8 billion General Fund, with proposed reductions tied to Medi-Cal asset-limit changes and other federal conformity items.

Transcript Highlights:

• The lady from Santa Fe. Mr.
• Chair lady from Santa Fe, Mr.
• The lady from Santa Fe. Mr.
• Gentle lady from Santa Fe, Mr.
• Gentle lady from Santa Fe, Mr. Mr.

Transcript Highlights:

• Jorge Cruz, on behalf of the California Behavioral Health Association, in support.
• And with me to testify in support is Amber Williams, the CEO of Janus of Santa Cruz, and Trent Murphy
• I'm the CEO of Janus of Santa Cruz.
• It's a local nonprofit in Santa Cruz that serves thousands of individuals on an annual basis across outpatient
• Just in closing, we actually had this campaign in Santa Rosa.

Committee: House Health

Summary: The Assembly Health Committee heard a special order of bills focused largely on utilization management and prior authorization in health care. Chair Bonta opened by explaining the committee’s rules and noting several consent items, then moved into bills aimed at reducing delays and barriers in coverage decisions for mental health, substance use disorder treatment, chronic care, and rehabilitation services. The committee also noted AB 1429 had been pulled from the agenda. AB 384 by Assembly Member Connolly would prohibit prior authorization for inpatient mental health or substance use emergency admissions and for physician care delivered during those inpatient stays. Supporters, including behavioral health groups, hospitals, emergency physicians, and patient advocates, argued that prior authorization delays crisis care and can worsen outcomes. Opponents, including health plans and insurers, warned about fraud, waste, abuse, and ambiguity around residential treatment facilities and review processes. The bill passed the committee on a do pass as amended vote and was sent to Appropriations, though it was placed on call. AB 510 by Assembly Member Addis would require health plans to provide a peer of the same or similar specialty when a treating provider appeals a prior authorization decision. Supporters said this would make appeals fairer and more clinically informed; opponents said the specialty-matching requirement and timelines were unworkable and could strain the system. AB 539 by Assembly Member Schiavo would extend prior authorization approvals to one year or the duration of the prescribed treatment, with supporters citing chronic illness and cancer care delays and opponents arguing the bill was too broad. AB 669 by Assembly Member Haney would bar certain utilization reviews for the first 28 days of in-network substance use disorder treatment and limit prior authorization for related outpatient medications; it drew strong emotional support from a parent who lost her son after treatment was cut short, while insurers and health plans opposed it as too restrictive. AB 512 by Assembly Member Harabedian would shorten prior authorization turnaround times to 24 hours for urgent requests and 48 hours for non-urgent requests, and AB 574 by Assembly Member Mark González would allow up to 12 physical therapy sessions for a new episode of care without prior authorization. Across these bills, supporters emphasized timely access and patient harm from delays, while opponents repeatedly raised concerns about oversight, medical necessity review, and cost. Several measures were voted out on call or held on call for later action.

Transcript Highlights:

• minority leader as well as Assemblymember Harabedian, and so I represent the Central Coast, as you know, Santa
• Cruz, Monterey, and San Luis Obispo counties.
• minority leader as well as Assemblymember Harabedian, and so I represent the Central Coast, as you know, Santa
• Cruz, Monterey, and San Luis Obispo counties.
• In Santa Cruz County, it was 530%. And in San Luis Obispo, it was 560%.

Summary: The committee first heard AB 597, a bill to strengthen consumer protections for disaster survivors who use public adjusters. The author and the Department of Insurance said the measure would cap public adjuster fees at 15% for claims tied to declared disasters, require clearer contracts, prohibit solicitation during emergency conditions, and allow consumers to rescind contracts that were solicited during prohibited periods. Insurance industry groups supported the bill, while public adjuster representatives opposed it as written but said they were willing to work on revisions. The committee approved the bill and re-referred it to Appropriations; the roll call was ultimately recorded as 16-0. The committee then held its fourth oversight hearing on the Department of Insurance’s Sustainable Insurance Strategy, with Commissioner Ricardo Lara giving an extensive update on wildfire-related market reforms and consumer protections. He said the recent Southern California wildfires had not derailed the strategy and described actions including advance claim payments, a one-year moratorium on residential non-renewals in affected areas, a new fraud strike team, smoke-damage claim guidance, additional living expense protections, and a consumer claims tracker. He reported more than $12.1 billion in claims paid, over 37,000 claims filed, and more than 7,000 survivors assisted directly. He also discussed related bills and reforms, including AB 597, SB 495, SB 547, SB 429, SB 616, AB 888, and AB 2026. Members questioned the commissioner about the Fair Plan’s growing exposure, the $1 billion assessment, rate increases, non-renewals, underinsurance, and whether the reforms would actually stabilize the market. Lara said the assessment was already approved, that policyholders would not be hit with one large bill because insurers have two years to recover costs, and that the department was pushing insurers to use catastrophe modeling and reinsurance tools in exchange for commitments to write more policies in wildfire-distressed areas. He said the department expects to see market stabilization by 2026, though he emphasized the timeline depends on insurer participation, implementation of the new regulations, and future disaster activity. Members generally expressed support for the goals of the strategy while pressing for clearer expectations for consumers and faster action on mitigation and market reform.

Transcript Highlights:

• General lady from Santa Fe. Mr.
• The lady from Santa Fe. Mr.
• The gentle lady from Santa Fe yield. I yield to the gentle lady from Santa Fe. Uh, Mr.
• The lady from Santa Fe. Mr.
• The gentleman from Santa Fe, Santa Barbara Senator McQueen. Mr.

Transcript Highlights:

• Madam Chair, members, Joe Cruz, on behalf of the California State Council of Laborers, and thank you,
• And then Santa Clara County was really just not ready, or there was just not support in Santa Clara County
• And so we've been in active conversations with Santa Clara County.
• Santa Clara County, San Diego County, Riverside County, Mendocino County, and San Mateo County.
• Those that have a 30-day retention—San Joaquin County, Santa Barbara County, Santa Clara County, San

Committee: House Transportation

Summary: The committee heard several transportation and economic bills. SB 86 would extend and expand the California Alternative Energy and Advanced Transportation Financing Authority sales and use tax exclusion program through 2031, raise the annual cap, and add fusion energy. The author, Treasurer Fiona Ma, and a Cepheid representative said the program has supported billions in clean-tech investment, thousands of jobs, and environmental benefits; local government groups opposed over revenue-loss concerns. The bill passed on a 12-aye vote and was held open for additional members to add on. SB 545 would direct Go-Biz to study economic development opportunities along the high-speed rail corridor, including land value, development incentives, and public-private partnerships. Supporters from labor and Fresno described the bill as a way to spur transit-oriented development and local investment. The committee approved it on a 9-aye, 1-no vote, with some members urging broader funding and development options. SB 63 would authorize a regional revenue measure to help stabilize Bay Area transit operations, with testimony from transit agencies, business groups, labor, and local governments describing severe fiscal cliffs and potential service cuts. Members discussed the need for more flexibility in revenue options, the counties that may participate, and the need for a detailed expenditure plan; the author said negotiations were ongoing. The bill passed on a 9-aye, 3-no vote and was held open. The committee also heard SB 263, which would require a state study of the impacts of tariffs on California’s economy, ports, workers, and consumers; supporters from shipping, retail, ports, and trucking backed the measure, and members discussed the need for timely data and possible broader supply-chain impacts. SB 661 would redirect existing jet fuel sales tax revenue back to airports for aviation purposes and to address FAA compliance; testimony focused on airport infrastructure, rural access, and how funds should be allocated among large and small airports. Both bills received unanimous or near-unanimous support and were advanced to their next committees. The committee also began hearing SB 274 on automated license plate readers, with the author warning about privacy and civil-liberty concerns from widespread data collection, but the transcript cuts off before action on that bill.

Transcript Highlights:

• In the 15th century, the venerable Juana de la Cruz said, 'I don't study to know more, but to ignore
• Juana de la Cruz said, 'I don't study to know more, but to ignore less.'
• Baldwin Park, Riverside, Santa Clarita, and Los Angeles.
• Our next honoree, Lupe de la Cruz, is vice president of government affairs and corporate citizenship
• Please join me in welcoming our 2026 Achievement in Business honoree, Lupe de la Cruz.

Summary: The Senate convened with a quorum, opened with prayer and the Pledge of Allegiance, and then spent much of the session on floor recognitions. Members welcomed the Far West Region of Delta Sigma Theta Sorority, Inc. and honored its leadership and civic service, including wildfire recovery work and local chapter anniversaries. The body also recognized the 2026 Latino Spirit Award honorees, with remarks tied to Cinco de Mayo and Latino resilience, followed by a series of resolutions and guest introductions. Several resolutions were adopted, including SR 86 on Cinco de Mayo Week, SCR 146 declaring May Cystic Fibrosis Awareness Month, SCR 154 establishing Green Star Veterans and Families Day, SCR 123 recognizing California Peace Officers Memorial Day, SCR 164 designating Black Health Equity Advocacy Week, and SCR 103 on Tardive Dyskinesia Awareness Week. Testimony and remarks emphasized cultural heritage, shared struggles for justice, veterans’ mental health and suicide prevention, law enforcement sacrifice, and persistent racial health disparities. Most resolutions passed by unanimous roll call votes. The Senate also confirmed multiple Department of Corrections and Rehabilitation appointments, including Kathleen Ratliff and Joseph Tuggle, Jason Johnson, Madeline McLean, Brian Bishop, and Sarah Larson. Senators Grove and others voiced protest over CDCR appointments, arguing for consideration of Frank Silva, but the confirmations still passed overwhelmingly or unanimously. The chamber then approved several bills, including SB 1159 on artificial intelligence and public meetings, SB 1416 shortening refund timelines for duplicate medical/dental payments, SB 1273 expanding tied-house advertising rules for winery instructional events, SB 941 limiting commissary markups in private detention facilities, SB 1099 clarifying local authority to provide public benefits, SB 1195 expanding tied-house exemptions for certain venues, and SB 990 allowing a highway information sign near Ridgecrest. The session concluded with adjournment memories for labor leader and UCLA Labor Center director Kent Wong and recognition of his family and colleagues.

Transcript Highlights:

• is truly a special program that deserves the due recognition, and I want to thank the senator from Santa
• Cruz for bringing this up today.
• He attended Santa Clara University in the late 1960s.
• And John had been going to Santa Clara University to become a photographer.
• He was an impactful steward of his family's expanse of apricot and peach orchards in the Santa Clara

Transcript Highlights:

• Jean Hurst here today on behalf of the Santa Cruz County Board of Supervisors in support.
• Jean Hearst here today on behalf of the Santa Cruz County Board of Supervisors in support.
• I'm planning to go from the Bay Area to Santa Barbara tomorrow morning.

Committee: Senate Energy, Utilities and Communications

Summary: The committee heard several energy, telecommunications, and regulatory bills. SB 929 by Senator Jones would require the California Energy Commission chair to appear annually and report to the Legislature on the commission’s activities, plans, and outreach; it was presented as a low-cost oversight measure and drew no opposition. SB 1138 by Senator Padilla would let load-serving entities trade hourly resource adequacy obligations under the CPUC’s slice-of-day framework to reduce overprocurement and lower ratepayer costs; supporters said it could save tens of millions of dollars, while questions focused on reliability and whether savings would reach customers. SB 913 by Senator Becker would create a clearer pathway for customer-sited distributed energy resources, such as home batteries and smart thermostats, to participate in resource adequacy markets; supporters said it would unlock existing clean capacity and reduce costs, and members asked about reliability, opt-in participation, and compensation for homeowners. The committee also heard SB 1197 by Senator Niello, which would move California to permanent standard time if federal law allows, with testimony from a sleep medicine physician supporting the health and safety benefits of ending the time switch and opposition from golf industry representatives who urged a broader analysis of economic, recreational, and public safety impacts. Members debated whether the 2018 voter approval required another vote and whether Congress would need to act. SB 1265 by Senator Richardson would codify and expand the Go Green financing program by creating a new fund and allowing broader partnerships beyond current IOU service areas; supporters said it would expand access to clean energy financing statewide. SB 1337 by Senator Richardson would create a working group to coordinate fuel transition policy and refinery-related issues following SB 237, with supporters emphasizing the need for better interagency coordination and some members asking how it would avoid duplicative work. The committee also considered SB 1191 by Senator Ochoa Bogh, which would extend the California High-Cost Fund A and B programs for rural telephone service through 2033; supporters said the surcharge-funded program is essential for affordable service and emergency connectivity in remote areas. After discussion, the committee adopted amendments where offered and voted all of the bills out of committee, generally on unanimous or near-unanimous votes, with SB 1265 receiving one no vote. Several bills were held on call briefly and then later passed when the committee reconvened, and the hearing adjourned after all listed measures were reported out.

Transcript Highlights:

• Jean Hurst here today on behalf of the Santa Cruz County Board of Supervisors in support.
• Jean Hearst here today on behalf of the Santa Cruz County Board of Supervisors in support.
• I'm planning to go from the Bay Area to Santa Barbara tomorrow morning.

Committee: Senate Energy, Utilities and Communications

Transcript Highlights:

• George Cruz, on behalf of the California Behavioral Health Association.
• George Cruz, on behalf of the California Behavioral Health Association.
• Cruz. Good morning, Mr. Chair and members.
• Chairman, David Compos, Deputy County Executive for the County of Santa Clara.
• Chairman, David Compos, Deputy County Executive for the County of Santa Clara.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• we'll go straight to questions starting with Representative Chatfield, going to Representative de la Cruz
• Next we have Representative David la Cruz, Representative Dow, and then Vice Chairman.
• Thank you very much, Representative Dela Cruz, Representative Dow, Vice Chairman Munoz, Representative
• We're hoping to start with Santa Rosa, that will.
• I'm sure that you have challenges with personnel, the same as Santa Fe Community College has.

Transcript Highlights:

• Cruz that resulted in her death.
• Santa Cruz was the first county in the state to undergo an extensive detention because this person under
• Cruz that resulted in her death.
• Santa Cruz was the first county in the state to undergo an extensive detention because this person under
• This has been a very serious case, and this was retried for just two years in the Santa Cruz courts.

Transcript Highlights:

• Cruz, Restore 180, Restoring Hope California, San Francisco Public Defender's Office, Santa Cruz Barrios
• I am not representing the Board of Supervisors of Santa Barbara County.
• In Santa Barbara... Needed to address those failures and issues.
• We’ve had reports of transports from Santa Monica.
• We’ve had reports of transports from Santa Monica.

Summary: The committee heard testimony on several public safety bills, with most of the discussion focused on AB 1650, AB 2014, AB 1886, AB 2126, AB 2624, and AB 2257. AB 1650 would require clearer identification on privately owned vehicles rented or leased to government agencies for enforcement operations; supporters framed it as a transparency and safety measure in response to ICE activity, while no opposition testified. AB 2014 would allow post-conviction habeas relief where gender bias or stereotypes were used at trial and may have affected the outcome; supporters described cases involving sexist and anti-LGBTQ stereotypes, while the California District Attorneys Association opposed the bill as overbroad and likely to restrict relevant evidence, though the author said recent amendments removed the evidence-code provisions and left only the habeas remedy. AB 1886 would extend a 12-month probation presumption to youth in out-of-home placements and those discharged from secure youth treatment facilities; youth advocates supported it as a fairness and rehabilitation measure, while judges, probation officials, and district attorneys opposed it as undoing a recent compromise and limiting individualized decisions. AB 2126 would speed hiring of peer partners in child welfare by creating a narrow exemption process for certain foster-youth-related offenses; it drew broad support and no opposition. AB 2624 would expand the Safe at Home address-confidentiality program to immigrant service providers, employees, and volunteers; supporters cited threats, doxing, and harassment, while one journalist opposed it over possible effects on reporting, and the author and committee members said the bill preserves press protections and is narrowly aimed at threats and harassment. AB 2257 would restore county authority to create a separate corrections department to run jails instead of the sheriff; supporters argued it would improve accountability and address jail deaths and fiscal problems, while sheriffs opposed it as unnecessary and said sheriffs are already subject to oversight. The committee also noted several bills pulled by their authors and adopted a consent calendar of unrelated measures. Votes were not always taken immediately because the committee was waiting for a quorum, but AB 2624 was moved on a do-pass-as-amended motion to Appropriations and left on call, and the chair indicated support or favorable recommendations on several of the other measures.

Transcript Highlights:

• We're a homeless services provider in Santa Cruz County.
• We're a homeless services provider in Santa Cruz County.
• In our research across Santa Cruz County, we spoke with more than 200 people experiencing homelessness
• In our research across Santa Cruz County, we spoke with more than 200 people experiencing homelessness
• For instance, in Santa Cruz County, the only youth shelter we have available that is not dependent on

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.

Transcript Highlights:

• My name is Representative Art de la Cruz, and my district is very near to here.
• So we have a motion to pass approval of the letter from Representative Dela Cruz (member_10552).
• Chairman, I move we approve the minutes from June 4th in Santa Fe. All right. Do I have a second?
• Representative de la Cruz? Yes. Senator de la Cruz says yes. Representative Johnson is not present.
• We have about 500 members right now, primarily in the Albuquerque and Santa Fe area.

Transcript Highlights:

• I was just informed by the good Senator from Santa Cruz that Mr.
• Simpson is also a Santa Cruz graduate, and that was failed to be mentioned when we did the introduction

Summary: The Senate met with a quorum present, opened with prayer and the Pledge of Allegiance, and then spent much of the session on floor privileges and recognitions. Members welcomed a delegation from Catalonia on the 40th anniversary of the California-Catalonia sister-state relationship, Solano Community College’s speech and debate team, and several small business honorees, including Royal Clothiers and Old California Botanicals. The chamber also recognized Tennessee Rep. Justin Jones for his advocacy on democracy and voting rights, with multiple senators speaking in support of his visit. On business, the Senate confirmed Rick Simpson to the Commission on Teacher Credentialing and Laura Ederton Speed as Executive Director of the State Bar, both by unanimous 35-0 votes. The body adopted SCR 163 designating May as California Tourism Month, highlighting tourism’s economic impact, and SCR 170 declaring Firefighter Mental Health Awareness Week, with extensive testimony from senators about the trauma firefighters and first responders face and the need to reduce stigma and expand support. The Senate also adopted SCR 174 marking the 60th anniversary of California’s pilot regional centers for people with intellectual and developmental disabilities, emphasizing the system’s role in community-based care. The Senate adopted SR 111 recognizing the International Day Against Homophobia, Biphobia, Interphobia, and Transphobia after extended debate focused on LGBTQ rights, hate violence, and the need for allies to speak out; the resolution passed 26-0. The chamber then approved a second-day consent calendar of multiple bills by 34-0, moved SCR 116 to the inactive file, granted reconsideration on SR 111 for a later session, and heard motions to adjourn in memory of Carl Anthony and Lupe Estrella. The Senate announced committee hearings and then adjourned to reconvene Monday, May 18, 2026, at 2:00 p.m.

Transcript Highlights:

• I was just informed by the senator, good senator from Santa Cruz, that Mr.
• Simpson is also a Santa Cruz graduate, and that was failed to be mentioned when we did the introduction