Transcript Highlights:

• Fund deficit.
• Highway Account to fund the Vulnerable Road Users GenAI project and the Traffic Mobility Insights GenAI
• that with state transportation funds rather than General Fund.
• that with state transportation funds rather than General Fund.
• And so those could also be funded by General Fund.

Summary: The Senate Budget Subcommittee No. 5 held an informational hearing on the Governor’s May Revision proposals for labor, public safety/judiciary, and transportation, and no votes were taken. In Part A on labor, the Employment Development Department described funding for EDD Next document management work, updated UI loan interest costs, disability insurance and paid family leave benefit increases, WIOA adjustments, UI and school employee benefit changes, an EMT training reappropriation, and a technical correction tied to an EDD Next reversion. PERB discussed reduced funding requests for AB 288 due to litigation and a proposal to implement AB 1 covering legislative employees. DIR presented proposals for legal unit reclassifications, two major IT modernization projects, a new Cal/OSHA emerging technologies unit, a COIA reappropriation, and trailer bill language requiring electronic payment of employer assessments and removing a salary cap for the DWC administrative director. CalHR proposed consolidating employee assistance services into a statewide contract with enhanced support for first responders, and CalPERS and CalSTRS presented budget adjustments tied to investment costs, state contributions, and benefit overpayments. Members focused heavily on the unemployment insurance debt and interest payments, asking why the administration had no concrete plan to pay down principal. Finance and LAO explained that the state’s UI tax structure has long been insufficient and that any long-term solution would need to address both the outstanding federal loan and the structural imbalance in employer taxes. Questions also centered on EDD Next costs and timelines, with the chair asking for clearer long-term project cost estimates and Finance noting that future maintenance and operations costs will continue after implementation. On DIR’s emerging technologies unit, members asked whether it would address AI-driven workplace harms; DIR said the unit would focus on physical workplace safety issues involving AI, robotics, autonomous equipment, and related guardrails, while LAO noted broader labor-practice questions would likely fall outside Cal/OSHA’s scope. In the CalPERS discussion, members raised concerns about transparency in private equity and external management fees, while CalPERS said higher fees reflect a strategy of greater private-market and active-management exposure and are offset by higher net returns. Members urged more information on specific investments and future reporting. For CalSTRS, Finance presented routine contribution and overpayment adjustments, but members also raised broader transparency concerns that CalSTRS staff said they would follow up on separately. Public comment in Part A was dominated by strong support for an immigrant worker emergency relief fund, along with support for apprenticeship and workforce proposals and PERB staffing. The chair and members said they would follow up on where the immigrant relief proposal should be considered, noting it may belong in another policy area. The hearing then moved into Part B with an overview of Judicial Branch-related May Revision items, including court interpreter funding, appellate court security, workload cap changes, lactation room implementation delays, and a reduction to the state court facility construction backfill.

Transcript Highlights:

• So, federal funding.
• We mobilized a contractor.
• We mobilized a contractor on December 19th. The road was opened on January 1st.
• . you know, without the extra funds to do those resiliency type improvements.
• , the state disaster recovery fund.

Committee: House Transportation

Transcript Highlights:

• So the goal of it. pull those funds from where it was generated.
• , and when they swept excess funds or swept funds out of the account, the money that had been raised
• locally was swept with those funds.
• We don't have a way to distinguish between those funds.
• And distinguish between those funds.

Bills: HB3239 , HB3391 , HB3557 , HB4128

Committee: Senate Agriculture and Wildlife

Summary: The Agriculture Committee first considered two executive nominations and approved both unanimously. Rebecca Hartfield was re-nominated to the State Board of Veterinary Medical Examiners, where she described her rural mixed-animal veterinary work and efforts to encourage future veterinarians. James Harrell was then nominated to the Oklahoma State University Veterinary Medical Authority; supporters emphasized his commitment to rural Oklahoma and addressing the shortage of large-animal veterinarians, and he discussed efforts to improve veterinary education and recruit more Oklahoma students. Both nominations passed 13-0. The committee then took up House Bill 3391, which would add improper advertising as a basis for revoking a commercial pet breeder license and define advertising to include digital and social media. Members asked about the definition and scope of commercial pet breeders. The bill passed on a 9-4 vote. House Bill 4128, dealing with black bear hunting season and harvest limits, drew extensive debate. An amendment to move the opener to September 21, expand counties, and let the Wildlife Commission set quotas failed 6-7. The underlying bill, which would have kept the September 15 opener and a 200-bear limit, also failed 3-9 after testimony and debate focused on bear population data, nuisance complaints, and concerns about out-of-state hunters and impacts on female bears. House Bill 3557, which would keep locally raised county extension funds in separate accounts so they are not swept into state accounts, passed 10-2 after questions about how local, state, and federal funds would be handled. Finally, House Bill 3239 on veterinary telemedicine passed 9-3. The bill defines the veterinarian-client relationship needed before telemedicine can be used, with supporters saying it would provide needed structure while preserving access for rural livestock care; opponents worried it could restrict access in emergencies. The committee then adjourned.

Transcript Highlights:

• </c><00:53:21.160><c> 11th</c> I thank the gentlemen from Texas 11th I thank the gentlemen from Texas
• </c><01:04:59.359><c> August</c> bill my colleague from Texas August bill my colleague from Texas August
• </c><01:11:11.960><c> Mr</c> minutes to the gentleman from Texas Mr minutes to the gentleman from Texas
• ><c> for</c><01:11:15.120><c> two</c> Weber Texas is recognized for two Weber Texas is recognized for
• Social Security trust fund is empty.

Bills: HR26

Keywords: domestic terrorism, Antifa, law enforcement, criminal activity, violent protests, political ideology, federal response, socio-political conflict

Transcript Highlights:

• at the curb, and include properly funded transit solutions like Metro Mobility, microtransit, Transit
• funded Transit Solutions<00:16:35.480><c> like</c><00:16:35.680><c> metr</c><00:16:36.000><c> Mobility
• </c><00:16:36.440><c> micr</c> Solutions like metr Mobility micr Solutions like metr Mobility micr Transit
• BRT would take only $280 million and not use all that transit funding for the area.
• </c><00:19:06.320><c> support</c> off on funding support off on funding support hr14<00:19:08.400><c>

Transcript Highlights:

• the federal funding.
• The funds that were from the Inflation Reduction Act were the funds that kind of were granted to this
• How will the cost be funded?
• How will the cost be funded?
• How will the cost be funded?

Committee: Joint Joint Oregon-Washington Legislative Action Committee

Summary: The committee met for a work session and public hearing on the Interstate 5 bridge replacement program. Program staff provided updates on permitting and environmental milestones, including the biological opinion, the Coast Guard navigation review, the final supplemental environmental impact statement, and the amended record of decision expected in 2026. They also discussed the Bridge Investment Program grant deadline, the need for an initial finance plan, and the transition from Greg Johnson to interim administrator Carly Francis. Johnson thanked the committee for its support as he prepared to step down, and members praised his leadership and the program’s outreach and transparency. A major focus was the bridge configuration and cost-estimating process. Staff said the Coast Guard is reviewing the Navigation Impact Report and will decide whether a fixed 116-foot span or a movable span is permissible. They said the final environmental document will also resolve open questions such as one versus two auxiliary lanes and single- versus double-deck configurations. Members pressed staff on why a cost estimate was not yet available, whether the federal decision could delay funding deadlines, and what cost drivers were most significant. Francis said the estimate is still being developed, that a movable span would cost more and affect schedule, and that the program is also considering value engineering and other efficiencies. The committee also reviewed transit-related costs and operations. Staff explained that light rail remains part of the modified locally preferred alternative, and that ridership and operations estimates are based on federal modeling methods. They said updated annual operations and maintenance costs are about $10.3 million, down from a prior estimate of $21.8 million because the current service plan assumes 15-minute train frequency rather than a more intensive schedule. Oregon’s share is estimated at about $5.15 million and Washington’s at $4.12 million, with TriMet said to have committed its portion while Washington-side funding sources are still being identified. Members asked for more detail on TriMet’s fiscal stability and on how the transit operating costs will be covered. In public testimony, economist Joe Cortright criticized the program for not providing an updated cost estimate and argued that the project is behind schedule and has been inconsistent about the Coast Guard process. He said the committee needed the most critical information—total project cost—before moving forward. The hearing then continued with additional public testimony not included in the excerpt.

Transcript Highlights:

• for those funds.
• three buckets of funds.
• the funds, so we're going to distribute those funds to you.
• So these funds are federal funds.
• , not duplicating funding.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Summary: The meeting focused on Arkansas’s workforce development reorganization and a set of federal waiver requests intended to consolidate and streamline the state’s WIOA system. Commerce officials said the department has already centralized shared services, split the old workforce agency into reemployment and Arkansas Workforce Connections, and submitted a combined WIOA/Perkins state plan. They described nine waiver requests, including replacing local workforce boards with a single statewide board, creating one planning and accountability structure, allowing more flexible movement of funds across regions, easing the “last-dollar” requirement for training and supportive services, reducing required youth program elements, and allowing affiliate sites instead of mandatory comprehensive centers. Officials said the goal is to reduce administrative costs and redirect more money to training, supportive services, and employer-driven programs. Legislators raised concerns about rural representation, local employer relationships, and whether local offices would close. Commerce officials said local offices would remain open, some current staff could be rehired, and regional business councils would preserve local employer input. They said the current system is fragmented and expensive, with roughly $14 million in federal workforce funds flowing through local boards but only about $1.9 million spent on training and supportive services last year; they argued the reorganization could raise training spending to about $6 million to $7 million annually. Questions also addressed board composition, performance accountability, and how funds could be shifted between regions when needs change. The State Board of Workforce Development had approved the waiver package 11-3 before it was submitted to the U.S. Department of Labor. Members also discussed workforce access for people with disabilities, child care and transportation supports, and the role of Arkansas Launch, apprenticeships, and career and technical education. Officials said vocational rehabilitation now has better access to the state job board and that referrals and data-sharing with DHS and other partners still need improvement. Several legislators emphasized the need for training to align more closely with employer demand, especially in manufacturing, technology, health care, and rural areas. The committee also heard a brief overview of Workforce Pell, with staff explaining that the new federal short-term Pell option has narrow eligibility rules and may not fit many existing programs, including some CDL and CNA programs.

Transcript Highlights:

• , and Commerce either provides funds up front to utilities or utilities Commerce either provides funds
• This current work is currently funded via a patchwork of funding sources.
• funds.
• through the general fund.
• This is not general fund dollars; it is workers' comp 608, 609 funds.

Summary: The committee heard public hearings on several bills. HB 2675 would eliminate a number of state accounts and transfer remaining balances from two accounts to the general fund, while also changing how revenues in the Salary Insurance Contribution Increase Revolving Account are deposited; OFM testified in support and there was no public opposition. SHB 1903 would create a statewide low-income energy assistance program through the Department of Commerce, funded by the general fund and Climate Commitment Act revenues; supporters said it would address Washington’s underfunded and uneven energy assistance system, while utilities and rural co-ops raised concerns about cost, reporting burdens, utility authority, and implementation details. SHB 2384 would require actuarial reviews for certain continuing care retirement communities with prepaid life care contracts; residents and consumer advocates supported the added transparency, while providers opposed the added review costs and said they already pay for actuarial work. SHB 1982 would expand the ability of tribal members to vacate convictions tied to treaty rights, add OPD representation and a tribal liaison position, and then an amendment was described that would remove the liaison position and eliminate the fiscal impact; the sponsor and OPD supported the bill, and testimony emphasized correcting past treaty-rights convictions. The committee also heard SHB 2389, a broad juvenile justice bill that would expand suspended disposition options, create midpoint review hearings, reduce some robbery ranges, and address juvenile rehabilitation capacity and transfers. Supporters argued it would reduce racial disparities, favor community-based rehabilitation when safe, and improve outcomes, while prosecutors, sheriffs, counties, judges, cities, victim advocates, and some tribal law enforcement warned it would weaken accountability for serious violent offenses, increase court and local government burdens, and shift costs without funding. Several witnesses and the bill sponsor discussed proposed amendments, including removing presumptions and the mid-sentence review. The committee then heard SHB 2439, which would raise tobacco and vapor product license fees, create a responsible vendor program, add manufacturer certification and enforcement provisions, restrict certain products and sales practices, and redirect tobacco tax revenue to public health, cancer research, and youth prevention accounts; public health and prevention groups supported it, while retailers and industry representatives opposed the fee increases and some of the new restrictions. Finally, HB 2681 would sharply increase cannabis license fees and index them to inflation; OFM supported the change as aligning fees with program costs, while cannabis businesses and associations opposed or sought changes to the fee structure and CPI indexing. The committee also heard a briefing on SHB 2215, which would require the Caseload Forecast Council to forecast SNAP and state food assistance caseloads in light of upcoming federal cost-sharing changes; no questions were raised at the briefing.

Transcript Highlights:

• The first is a mobile simulation program.
• The first is a mobile simulation program.
• Now, with that comes some challenges when you're funding seats, right?
• These funds to help support movement in that direction.
• Is there a way to utilize some of those funds in that space as well?

Summary: The Rural Health Transformation Committee approved the minutes from its May 28 meeting and received an update from DHW Director Juliet Sharon on the status of the Rural Health Transformation Program. Sharon said the department has posted a public funding-opportunities page with a subscribe feature, is using an expedited committee review process for solicitations and subgrant opportunities, and plans to provide monthly summaries, award information, and federal progress reports. Members asked for clearer access to information on applicants and awards, and Sharon said the department is open to posting more complete listings in SharePoint and to simplifying provider-facing applications. The committee also discussed outreach to rural providers and the need to ensure smaller organizations know about opportunities and can apply within the short timelines. The committee then heard from the Idaho Military Division on its portion of the program. Bureau Chief Wayne Denny said the division is working with DHW on modernizing state communications and emergency systems, including next-generation 911, relocating backup communications infrastructure, coordinating exercises, and supporting rural health extenders such as community health workers and community health EMS providers. Members asked how those roles would function, how counties would participate, and how the work would be sustained after the five-year funding period; Denny said the goal is to demonstrate return on investment so counties and payers can support the services long term. Jennifer White of the State Board of Education described higher education and graduate medical education proposals. She said Idaho’s institutions are coordinating on statewide strategies for rural health workforce training, including mobile simulation, shared clinical infrastructure, learn-in-place programs, and targeted equipment and facilities. She also outlined GME and medical education options, including a strategic rural GME incubator, a rural training site network, and possible support for undergraduate medical education such as expanded seats or the University of Idaho–University of Utah partnership. Members debated sustainability and whether rural health funds should support only GME or broader medical education; some supported using the funds to build Idaho-based training capacity, while others cautioned against creating long-term state obligations without broader legislative approval. No formal votes were taken on those policy questions. In closing, Sharon said the department expects more provider subgrants, ongoing assessments, the first federal reporting deadline at the end of August, and the creation of a governor-appointed rural health transformation task force with legislative and rural representation. The committee tentatively scheduled an additional meeting for August 18 and discussed a later September meeting, likely around September 23-25, to review the federal report and any emerging issues.

Transcript Highlights:

• I come from Texas.
• And you mentioned Texas.
• So Texas, one of the things that is unique about Texas...
• So Texas, one of the things that is unique about Texas is—and I want to say, you know, I think Texas
• So Texas was brought up.

Committee: House General Laws

Summary: The committee first met in executive session, laying over H.J.R. 153 and H.J.R. 119, then unanimously advanced HB 2904 after adopting a committee amendment and substitute. HB 2904 passed 13-0. The committee also adopted a substitute for HB 2933 and sent that bill do pass by a vote of 11-3. The committee then moved into regular session and heard HB 2266, which would add the attorney general and staff, or as members suggested possibly assistant attorney generals, to the list of officials authorized to concealed carry while performing duties. The sponsor and an assistant attorney general testified that the bill was intended to protect AG staff who travel and work in courthouses and hotels; some members raised concerns about the breadth of the term “staff,” and one witness urged clearer limits and identification safeguards. No vote was taken on HB 2266 in the portion provided. The committee then heard HB 2207 and HB 2233 together, both aimed at restructuring Missouri’s electric industry to allow competitive generation while keeping transmission and distribution regulated. The sponsors argued that competition would lower costs, improve reliability, spur innovation, and let customers choose suppliers, while preserving PSC oversight of the grid and default service. Supporters, including a market think tank and retail energy advocates, said competitive states have seen more generation investment and that private generators bear their own risk rather than ratepayers. Opponents, including Evergy, argued deregulation has not delivered promised savings, can increase fraud and consumer confusion, and would force divestment of utility generation assets without clear guardrails. Members pressed witnesses on comparisons to Illinois, Texas, Pennsylvania, legacy costs, divestment mechanics, and whether the PSC would still set generation-related rates; witnesses disagreed sharply on the likely effect on residential prices and on whether the bill’s structure was sufficiently specific.

Transcript Highlights:

• It's Texas v.
• Orange is going to be federal funds, green, other transfers, and then red is the general fund.
• The law also created the Wildfire Prepared Fund, a fund which will enable enactment of the law in addition
• Those funds would have acted as clearing houses for funds and reimbursements state forestry receives
• two operations, specifically the funding.

Committee: House Water & Natural Resources Committee

Transcript Highlights:

• to fund this on our own.
• We have had some funds through the AZ SMART Fund.
• this SMART Fund support.
• this SMART Fund support.
• Those funds are municipal funds to the municipality, and we don't have very much... ...funds to the municipality

Summary: The committee heard a lengthy Arizona Department of Transportation presentation on major corridor projects, beginning with Interstate 11. ADOT Director Jennifer Toth said the entire 280-mile I-11 corridor from Nogales to the Nevada line is covered by a federal lawsuit, which has paused Tier 2 work pending a Tier 1 reevaluation and public comment period expected later this year and into early 2027. Members asked whether the northern segment could move forward separately; ADOT said the lawsuit covers the full corridor and that segmentation would likely add time and cost. The committee also heard updates on SR 347 and the I-10 Wild Horse Pass corridor, including widening, interchange reconstructions, grade separations, and traffic-management improvements, with members raising concerns about congestion, signal timing, construction hours, signage, and safety. ADOT also presented the West Kingman I-40/US 93 project, a $106.5 million free-flow ramp project that is about 60% complete and expected to finish in early 2027; members discussed temporary traffic controls near Beale Street and the need for better access and safety in the area. The committee then moved to a mass hearing on the Regional Transportation Advocacy Council (RTAC) bill, House Bill 2304, which appropriates about $473 million for a list of rural and small-metro highway projects. Testimony came from regional planning organizations, county officials, mayors, and city staff supporting projects in Apache Junction, Show Low, Chino Valley, Sedona, Eloy, Coolidge, Casa Grande, Lake Havasu City, Clarkdale, San Luis, and Yavapai County. Speakers described projects such as road widenings, bypasses, bridge and interchange improvements, flood and evacuation routes, freight access, and safety upgrades, often emphasizing local matching funds, shovel-ready status, and economic development benefits. Committee members frequently asked about traffic flow, emergency access, and project design details, while the chair reminded witnesses that support in the budget would still depend on members advocating for the projects during budget negotiations. No final vote on the RTAC bill or the individual project bills was taken in the portion provided, but the chair announced a mass-motion approach: members and witnesses would be allowed to speak briefly on each project, after which the committee would vote on the package together. The meeting also included brief staff explanations of several individual appropriation bills, including funding for Apache Junction, the Wolford Road extension in Show Low, Ray Lane in Graham County, SR 89 widening in Chino Valley, and Sedona roadway and roundabout-related improvements.

Transcript Highlights:

• And the genesis of that is a press release I received of work that Texas A&M University was doing.
• nuclear reactors installation at Texas A&M University.
• And they've pulled down these federal funds, these pathways from the Department of Energy.
• nuclear reactor installation at Texas A&M University.
• And they've pulled down these federal funds, these pathways from the Department of Energy.

Committee: House Postsecondary Education

Transcript Highlights:

• SB 1144 includes no funding mechanism to support these added obligations.
• He encouraged support for the license plate bill and continued funding for it. Dr.
• Thank you. can treat by bringing the patient into the mobile unit.
• So again, this will enhance what we call mobility.
• For the record, Barry Arons, on behalf of the Arizona Chiropractic Defense Fund, in support...

Summary: The committee first approved the January 28, 2026 minutes and held Senate Bill 1241 for a later hearing because a witness was unavailable. It then took up Senate Bill 1144, which would create an alternative pathway for veterinary technician certification through supervised on-the-job training and board-approved skills standards. Supporters, including the Arizona Humane Society, a high school student in a veterinary program, and other advocates, said the bill would help address workforce shortages, reduce student debt, and improve access to care, especially in rural and low-income areas. Opponents, including the Arizona Veterinary Technician Association and several veterinarians, argued the bill could weaken training standards, increase liability, and create safety risks; the Arizona Veterinary Medical Association ultimately moved to neutral after amendments added supervision and affidavit requirements. The committee adopted the amendment and then passed SB 1144 as amended on a 6-1 vote. The committee next passed Senate Bill 1247 unanimously. That bill would allow a person who does not receive care services to live with a resident in an assisted living center, and would bar the Department of Health Services from imposing requirements on that person that the resident would not face. Supporters said the bill was needed to fix a recent agency interpretation that could force spouses or other companions to separate or pay for services they do not use, and noted a possible floor amendment to extend the same treatment to assisted living homes. The committee then heard Senate Bill 1286, which would extend from 14 days to 60 days the period for veterinary prescriptions and renewals issued through telemedicine. Supporters said the change would improve access in underserved and rural areas and reflect how telemedicine is already used in human medicine, while opponents warned that longer telemedicine prescriptions could delay necessary exams and diagnostics, increase the risk of misdiagnosis, and create animal welfare and liability concerns. After testimony, the sponsor asked that the bill be held for a possible amendment next week, so no vote was taken. The committee also passed Senate Bill 1164, which would allow Medicaid claims to continue under a prior owner’s billing number during a skilled nursing or assisted living facility change of ownership until new enrollment is complete; supporters said this would prevent long reimbursement delays, while Access raised concerns about federal-law conflicts and said it needed advance notice to process ownership changes. The bill passed 6-0 with one member not voting. Finally, the committee passed Senate Bill 1181, which expands CPA licensure pathways by allowing combinations of degree and work experience and updates reciprocity and rulemaking provisions, and Senate Bill 1415, which creates a licensing path for salaried insurance adjusters with out-of-state credentials, subject to an amendment clarifying exam and employment requirements. Both bills were supported as workforce and mobility measures, and both were reported out of committee on unanimous or near-unanimous votes.

Transcript Highlights:

• Their appraisers are usually, for cooperatives, are usually out of Texas, or some out of Columbia, who
• Texas freeze because they didn't want... ...quite frankly, is abused and not being used in the right
• Texas freeze because they didn't want to have more of a grid.
• They just said, we're Texas. We're the best at it. And so we're just going to do our own thing.
• They just said, we're Texas. We're the best at it. And so we're just going to do our own thing.

Committee: House Special Committee on Rural Issues

Transcript Highlights:

• Some will require funding, and who knows how long that could take.
• What would it... that funding come from? What would it look like?
• For instance, in North Carolina, it's state funded.
• But it's state funding that goes to local... ...it's state funding that goes to local re-entry councils
• and funding discussions around how to implement this work.

Transcript Highlights:

• school-based Medicaid claiming would be unlocked for schools, which would allow for a consistent funding
• and big platforms like StubHub, Vivid Seats, and SeatGeek, and the various organizations that are funded
• Like StubHub, Vivid Seats, and SeatGeek, and the various organizations that are funded by them, like
• In recent months, 10 states, including Texas, Ohio, Illinois, Virginia, New Mexico, and most recently
• While those chasing federal funds like to wildly overinflate the numbers and claim 300,000 at risk, as

Committee: Joint Joint Committee on Consumer Protection and Professional Licensure

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:

• funds.
• with no General Fund impact.
• This includes $626 million of General Fund, $2.2 billion of special funds, and federal funds of $2.3
• This includes $626 million of general fund, $2.2 billion of special funds.
• And then our state ops funds are the resources to administer this fund.

Summary: The committee heard a series of budget and oversight presentations from CalHHS-related departments and agencies. CalHHS opened with a broad overview of its 2026-27 budget and priorities, including behavioral health, housing and human services integration, children and youth services, and aging/disability supports. OICR then presented its budget and its SB 823 realignment report on youth formerly committed to DJJ, saying county implementation varies widely but that the state has not seen evidence of net widening in the available data. OICR recommended climate surveys, youth advisory councils, stronger behavioral health and education programming in secure youth treatment facilities, better transitional planning, and improved longitudinal data systems. The agency also described a Title II federal grant transition problem, saying it cannot yet pay some subrecipients for prior work and is awaiting federal action on retroactive spending authority and an administrative funding adjustment. The Ombudsperson division requested two additional positions to address a growing complaint workload and access issues with counties over youth meetings, records, and grievance files; LAO raised no policy objection but noted the ongoing General Fund cost. The State Council on Developmental Disabilities requested $730,000 General Fund ongoing to cover the gap between federal limits on administrative overhead and the actual cost of an interagency agreement with the Department of Social Services. EMSA presented its department overview and several proposals, including a delayed AB 716 ambulance rate report, a $2.6 million request to replace aging disaster-response vehicles, a $250,000 security architecture assessment, and four positions plus ongoing General Fund for HR, enforcement, and legal workload. Members questioned the delay in the AB 716 report, the optics and timing of the vehicle replacement request, and whether EMSA was doing enough to prevent future staffing and enforcement problems. LAO repeatedly noted the ongoing General Fund implications of EMSA’s requests. The Department of Community Services and Development sought reappropriation of unspent Greenhouse Gas Reduction Fund money for the Low-Income Weatherization Program and described a Proposition 4-funded continuation of the farmworker housing component, which would require a new statewide administrator and program design process. The Department of Rehabilitation requested authority to draw an additional $60 million in federal funds annually and add 54 positions to meet sharply increased Vocational Rehabilitation caseloads; LAO had no concerns. Child Support Services proposed restoring a prior reduction to local child support agency funding and reported higher federal performance incentives, while also presenting a supplemental report on full pass-through of child support collections to CalWORKs families, estimating about $150 million annually for full pass-through or about $80 million for a state/county-only approach, plus automation costs. Members questioned why funding should rise when caseloads are declining, and whether the policy could be made cost-neutral. CDPH closed the hearing with an overview of its $5.1 billion budget and its state of public health report, highlighting record-low mortality and higher life expectancy, but also rising overdose deaths among ages 25-44, persistent maternal and infant mortality disparities, and the need for stable public health and emergency-response capacity; no votes were taken during the hearing.

Transcript Highlights:

• This act would establish a $100 million state funded program.
• We mobilized immediately.
• We set up mobile offices in FEMA trailers, in regional community centers, and even coffee houses.
• AB 265 gives the state the tools, funding, and structure it needs to stay afloat.
• We need to invest in our businesses and workforce and to access significant federal funding.

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• It into the Rainy Day Fund as well as withdrew from the Rainy Day Fund as part of the 2024 Budget Act
• Are you thinking of a fund that is actually funded by the Legislature?
• There's no funding that would go into a said fund.
• When we say new funding, has there ever been funding for Prop. 36?
• These safer projects require stable, multi-year funding to ensure consistent funding.

Summary: The Assembly Budget Committee opened its hearing on the Governor’s 2026-27 budget with remarks emphasizing the start of a months-long process, the need for fiscal responsibility, and concerns about structural deficits, federal funding losses, housing and homelessness, and oversight. The vice chair echoed those concerns, warning against budgets built on short-term fixes and urging accountability. The Department of Finance presented a balanced budget year proposal of about $349 billion in total expenditures, including $248 billion General Fund, while acknowledging a structural imbalance in the out years and proposing a workload budget with limited new spending or cuts. Finance said the budget relies on stronger-than-expected revenues, but also on constitutional obligations such as Proposition 98 and Proposition 2, and on suspending a rainy-day fund true-up deposit to cover a projected $2.9 billion budget-year deficit. The administration highlighted higher education funding, climate and wildfire resilience investments, a new ZEV incentive, added Health and Human Services costs tied to H.R. 1, child care funding, and three tax proposals: third-party delivery tax compliance, a sustainable aviation fuel tax credit, and an extension of the California Competes tax credit. The LAO, by contrast, warned that the budget is “precariously balanced,” cited downside risk from stock market-driven revenues, and urged the Legislature to use reserves, avoid suspending rainy-day deposits, and begin shrinking multi-year deficits sooner rather than later. Member questions focused on wildfire mitigation and insurance, transit and GGRF funding, federal cuts affecting CalFresh and Medi-Cal, the proposed tax credits, homelessness accountability language, and education funding. Several members pressed for earlier partnership on deficit solutions and for more scrutiny of budget choices. The committee also discussed declining enrollment in K-12, community colleges, and CSU, with concerns about whether funding formulas are aligned with actual student demand. No formal votes or final actions were taken in the hearing.