Transcript Highlights:

• for data-driven regulation.
• However, we have improved our ability to track and trace the data and process the data in a much more
• focusing on responsible AI.
• and AI issues.
• senior centers.

Summary: The committee met on December 3, 2025, with a quorum present and approved the September 17 minutes. Members first voted to suspend the 2026 JLARC lodging tax expenditure report for one year, based on staff’s explanation that the report is self-reported, not verified, and less useful than State Auditor accountability audits; the motion passed. The committee also approved renaming the JLARC I-900 subcommittee to the “Committee to Hear SAO Performance Audits,” while keeping the opening script noting that the performance audit process exists under Initiative 900. The committee then heard follow-up updates on two prior performance audits. The Department of Health presented a draft strategic management plan in response to findings on hospital inspections, complaints, adverse event review, and hospital data access. JLARC staff reiterated that 72% of hospital inspections were late, that DOH did not verify third-party inspection standards or review adverse event reports, and that complaint data suggested possible language-access barriers. DOH said it concurred with the recommendations, had improved on-time inspection compliance to about 49%, planned annual updates starting in July 2026, and would work on accreditation oversight, complaint-language access, and data accessibility, though members pressed for firmer deadlines and questioned the three-year timeline for language access improvements. The Liquor and Cannabis Board also reported on its cannabis market study recommendation. JLARC staff said the agency’s data were incomplete and unreliable, limiting oversight of production, recalls, tax collection, and diversion. LCB said it had improved its current CCRS system but still relied on self-reported data, and it presented a decision package for a new traceability system estimated at about $9 million over three fiscal years. LCB described a plant-tagging and serialization approach tied to production, processing, testing, and retail, but acknowledged it did not currently have sufficient staff to fully implement the system without additional funding. The committee also received briefings on JLARC’s recommendation-tracking tools and the 2024 public records reporting summary, including a high-level review of agency response rates, request volumes, costs, and litigation. Finally, JLARC presented the proposed final report on the Office of Privacy and Data Protection, concluding that OPDP meets its statutory responsibilities and has high user satisfaction, but that its mandate should be updated to better match its current capacity and focus; the committee adopted the report for distribution. The meeting then moved into the 2025 tax preference performance reviews, where JLARC staff summarized nine reviews and noted that the Citizens Commission on Tax Preference and Performance Measurement endorsed all 17 legislative auditor recommendations, with comments on seven. Early reviews discussed included natural gas transportation fuel preferences, travel agent and tour operator B&O rates, nonprofit low-income housing development, multipurpose senior centers, disabled veteran adaptive housing, and trade convention attendance, with staff and commissioners generally recommending continuation of some preferences, modification of others, and improved objectives or performance measures where needed.

Transcript Highlights:

• So they really cover very different areas of what a data center would be.
• But nevertheless, I guess large data centers are definitely going to get the message.
• Say, for example, if a data center... 7 to 10. Okay.
• So we—I didn't vote for it, but I understand this fear of large data centers.
• I didn't vote for it, but I understand this fear of large data centers.

Summary: The House met on June 30, 2026, with opening ceremonies, guest introductions, a prayer, the Pledge of Allegiance, and a moment of silence for two deceased community members. Members also adopted Consent Calendar 29, which included House Concurrent Resolutions 153, 154, and 156, and passed House Concurrent Resolution 157 directing the State Lottery to report on iLottery options to support traditional lottery retailers, as amended to set a February 15, 2027 reporting deadline. The chamber then considered several bills on agriculture, telecommunications, health, fire service standards, corrections, elections, and education. Among the measures passed were Senate Bill 53 on the Delaware Farm to Community Program, Senate Bill 307 on PSC authority for Lifeline telecom carriers, Senate Bill 339 clarifying advance health care directives, Senate Bill 235 extending manufactured home rent increase rules, Senate Bill 325 updating firefighter/EMS background check and membership standards, Senate Bill 309 discharging incarceration-related balances, Senate Bill 324 on constable-related handgun purchase exemptions, Senate Bill 94 on respiratory care practitioners and ECMO medication access, and Senate Bill 293 creating a licensure pathway for summer camp providers in the Purchase of Care program. The House also passed Senate Substitute 2 for Senate Bill 100, proposing a constitutional amendment to protect the right to marry regardless of race or gender while explicitly preserving religious freedom. The bill drew extended debate, with supporters framing it as a safeguard against future rollbacks of marriage equality and opponents raising concerns about constitutionalizing an issue already in statute; several members explained changed votes and personal reflections before the final roll call, which passed 28-12. House Bill 188, which would allow unaffiliated voters to choose a party primary, also passed after amendment, despite some opposition over party-system effects. Two measures were tabled or amended after debate: Senate Bill 233 on removing snow and ice from vehicles was initially tabled to consider a truck-driver exemption amendment, then the amendment failed and the bill later passed as amended; and Senate Joint Resolution 19 on studying health care costs was tabled briefly pending legal clarification. House Substitute 1 for House Bill 404, creating a three-year pilot program for AI and extended reality in schools, passed after testimony from the Department of Education emphasizing guardrails, data privacy, and teacher oversight. The transcript ends as House Bill 478 is being read in, but no final action on that bill appears in the provided text.

Transcript Highlights:

• like data centers.
• Is it AI? Is it? Is it something that predated AI?
• Is it AI? It could be.
• This is data through March.
• So if we have support from AI, Arizona can be embracing AI.

Keywords: 1182, all

Summary: At the April meeting of the Finance Advisory Committee, staff presented an updated state revenue forecast that was more cautious than January’s because of heightened economic uncertainty tied to the Iran conflict and broader national risks. The general fund’s available resources were revised down from $577 million in January to $378 million in the April forecast, with the lower estimate driven by reduced revenue projections while spending assumptions were unchanged. Staff said the outlook depends heavily on how long the Middle East conflict lasts and noted that a prolonged disruption could weaken the forecast further, while a quick resolution could improve conditions. George Hammond of the University of Arizona gave a broad economic overview, highlighting geopolitical risk, elevated oil and gasoline prices, sticky inflation, weak Arizona job growth, and uncertainty around federal policy, tariffs, immigration, and AI-related investment. He said Arizona’s recent job growth has been very weak and concentrated mainly in health services, while most other sectors lost jobs, and he attributed much of the slowdown to low hiring rather than layoffs. He also discussed population growth, noting that Arizona remains above the national average but is increasingly dependent on net migration as natural increase slows, and he warned that housing affordability remains strained even as Phoenix inflation has moderated. Panelists generally echoed the cautious outlook but pointed to some offsets. Liz St. Clair said Arizona’s near-term revenues could benefit from tourism tied to spring training and the Final Four, though higher fuel costs could dampen discretionary spending. Other panelists noted that the federal policy environment, tariffs, and immigration changes are likely to restrain growth, while productivity gains, especially from technology and AI, may help businesses maintain output. Several members also discussed housing, saying single-family permits have fallen while rental supply has improved affordability, and they raised concerns about labor-force growth, wage disparities, and the reliability of recent employment data revisions. No formal votes or actions were taken.

Transcript Highlights:

• Global data center capacity is expected to double in the next five years, again because of AI and cloud
• And on this one, while our state never debated out loud any tax incentive for data centers or AI or any
• and data centers.
• and data centers.
• and data centers.

Summary: The committee first approved the minutes from its fourth meeting, held October 27-28 in Santa Fe, with Representative Duncan moving approval and no opposition. The chair then introduced a panel on the cost of providing medical care in New Mexico, focusing on physician shortages, rising practice costs, and access problems, especially in southern New Mexico and Las Cruces. Panelists included family physicians, a pediatrician, a cardiologist/electrophysiologist, and a community health center medical director, who described their backgrounds and practices before turning to the policy discussion. The doctors argued that New Mexico is losing physicians because of three main pressures: medical malpractice exposure, gross receipts tax on medical services, and low Medicaid reimbursement. They said malpractice premiums are much higher than in neighboring states, punitive damages and venue shopping increase risk, and the patient compensation fund and attorney fee structure create additional costs. They also described administrative burdens from insurance billing and referrals, the high debt and long training period for physicians, and the effect of corporate medicine and private equity on practice decisions. One panelist emphasized the economic impact of each physician on jobs and local spending, while another noted that shortages force patients into emergency rooms and delay specialty care. The panel presented a list of proposed solutions: reform punitive damages, limit venue shopping and stacking, restore lifetime medical payments from the patient compensation fund, enact apology protections, cap attorney fees, continue Medicaid funding improvements, and eliminate gross receipts tax on medical and dental services. Committee members generally agreed the presentation was thorough and useful, but several noted that some proposals fall outside this committee’s jurisdiction and would likely need to move through other committees, especially judiciary and tax. Some members supported drafting legislation or working on separate bills, while others urged caution, requested more input from hospitals and economists, and raised concerns about local government revenue impacts from GRT changes. The chair concluded by encouraging members to continue discussions offline and noted that the tax-related issue would be taken up further in the next day’s work.

Transcript Highlights:

• It's just AI. It's not even real. We spent a lot of money. We got a report. It's just AI.
• It's just AI. It's not even real. We spent a lot of money. We got a report. It's just AI.
• more questions about uh the use of AI. more questions about uh the use of AI.
• to deny pre-authorizations the use of AI to deny pre-authorizations when<00:43:23.920> data<00
• Data Practices Act. Data Practices Act. >> Chair<01:37:16.400> Nor.

Bills: HF3378

Keywords: human services, Optum reports, data privacy, transparency, legislative oversight, 1183, house

Transcript Highlights:

• Data centers on average are about 400 megawatts.
• Data centers on average are about 400 megawatts.
• Data centers on average are about 400 megawatts.
• Data centers on average are about 400 megawatts.
• So Virginia might stop the most data centers, but Phoenix will have the most data centers of cities.

Bills: HB2133, HB2592

Keywords: sexual material, consent, synthetic depiction, privacy, internet regulation, rights protection, artificial intelligence, government regulation, innovation, procurement, administrative burdens, 1182, all

Summary: The House AI and Innovation Committee first heard an informational presentation from Arizona Public Service (APS) on the rapid growth of data centers and AI-related electricity demand in Arizona. APS said Phoenix now ranks near the top in North America for data center development and projected its peak load could rise from 8.7 gigawatts to 12 gigawatts by 2035, with about 19 gigawatts of potential data center demand in its queue. APS emphasized three principles for serving this growth: maintaining reliability for existing customers, preventing data center costs from being shifted to residential and small business customers, and preserving capacity for other growth. APS described its proposed approach as a combination of a pending Corporation Commission rate case and bilateral contracts, including minimum bill requirements, queue management, long-term financial commitments, and direct cost assignment to data center customers. Committee members asked about rate impacts, self-generation, behind-the-meter power, seasonal load, and possible future nuclear or other generation options; APS said it is pursuing an all-of-the-above resource strategy and that the proposed data center rate increase is 45 percent, though not yet approved. The committee then considered House Bill 2133, which would require commercial entities that knowingly distribute or publish sexual material online to obtain reasonable consent and age verification, including for synthetic or AI-generated altered images, and would impose civil penalties for violations. A five-page amendment narrowed the bill by excluding internet service providers, affiliates, search engines, and cloud providers from liability for content they do not create or directly host. The sponsor said the bill is intended to protect people in adult content from exploitation and non-consensual use, including revenge porn and trafficking-related material, and to extend protections to synthetic media. Members discussed the penalty structure, with the sponsor explaining it was modeled on similar penalties in related laws and set at $10,000 per day of violation. After no public opposition was presented, the committee adopted the amendment and voted 5-0, with 2 members present, to return HB 2133 as amended with a due pass recommendation.

Transcript Highlights:

• moved to cloud providers from local data moved to cloud providers from local data centers<00:05:
• So we moved these resources from commercial data centers to the universities where we had facilities
• So I'm not, um, AI.
• So I'm not internet um AI. So services. So I'm not internet um AI.
• judicial center.

Keywords: Meeting Start 00:00:00 Attendance Roll Call 00:00:11 Approval of Minutes 00:02:00 Information Items 00:02:25 CPE Special Report 00:03:26 Review of Executive Branch Agency Plans 00:31:48 A. Attorney General 00:32:10 B. Court of Justice 00:36:41 C. Cabinet for Economic Development 00:50:44 D. Kentucky Public Pensions Authority 00:56:06 E. Board Discussion of Planning Issues 01:05:12, 958, all

Summary: The Capital Planning Advisory Board opened its fourth meeting, confirmed a quorum, approved the prior meeting’s minutes by unanimous voice vote, and then heard information items and agency presentations. The main substantive presentation came from the Council on Postsecondary Education, which outlined its capital planning recommendations for the 2026–28 biennium. CPE staff described the role of Kentucky’s research and education network (Kron), including connectivity to cloud services, Internet2, identity services, and new local AI/inferencing capacity, and argued that the network is now essential to higher education, health care, and extension services. They said the network’s recent upgrades were driven by privacy, security, redundancy, and the need to support modern research and AI workloads at lower cost than commercial providers. CPE also presented its broader higher-education capital request: $700 million for asset preservation and $1.73 billion for new construction, for a total recommendation of about $2.4 billion. Staff said they do not plan to recommend IT projects or equipment in this cycle, despite reviewing 48 IT submissions totaling nearly $1.4 billion and equipment requests totaling $322.6 million. For asset preservation, they said the recommended allocation method would remain based on each institution’s share of Category 1 and 2 square footage, and they noted that the state’s prior facility assessment is now 12 years old, with deferred maintenance still estimated in the $7–9 billion range. For new construction, they said the requests are heavily focused on STEM and health-related facilities that are difficult to retrofit into older buildings. Board members asked about how asset-preservation amounts were determined, including why Northern Kentucky University’s request was much larger than its prior allocation. CPE staff responded that campus size, building age, and institutional prioritization affect the requests, and that schools are asked to submit more projects than are likely to be funded. The board then moved on to an Attorney General capital plan overview, where senior counsel Will Schroeder began describing the office’s technology needs and the office’s prior reliance on a 2020 appropriation to replace legacy systems and improve security.

Transcript Highlights:

• or logistics center.
• or logistics center.
• Are either of you using AI for pre-authorizations? Where is AI in your...
• Are either of you using AI for pre-authorizations and/or where are you using AI?
• We aren't currently using AI.

Summary: The committee held a panel discussion focused on how Florida health care organizations are working to improve access, quality, and affordability. Panelists from Florida Community Care/Independent Living Systems, Sunshine Health, AdventHealth, UF Health, and Nemours described their approaches, including Medicaid managed care, value-based contracting, community partnerships, mobile screening units, smart-room technology, telehealth, and specialized programs for maternal health, children, and complex chronic conditions. Several speakers emphasized that managed care and coordinated care can improve outcomes while reducing unnecessary utilization and costs. Members asked about the impact of Medicare’s V28 changes, mobile cancer screening, urgent care versus emergency room billing, pediatric specialty access, complaint resolution, Black maternal mortality, provider shortages, network adequacy, and the use of AI in prior authorization. Witnesses said V28 has affected providers and revenue, UF Health’s mobile screening program is expanding beyond a few cancer types, and its urgent care model bills patients at the appropriate level rather than both urgent care and ER rates. Nemours said it reduced specialty wait times through scheduling changes, telemedicine, and registry tools, while AdventHealth described postpartum coordination and maternal heart programs to reduce maternal complications and mortality. On complaints and access problems, panelists said their organizations use patient/member advocates, care managers, call centers, and escalation processes to resolve issues, and Sunshine Health specifically discussed a transportation complaint that was addressed with its vendor and the family. Sunshine Health also said it is not using AI for prior authorization, though it is exploring responsible uses elsewhere, and Florida Community Care said it is not using AI in utilization management. In closing, panelists identified workforce shortages, provider burnout, and high-cost drugs as the biggest ongoing challenges. The meeting ended with thanks to the panel and adjournment after Representative Brackett moved to rise, without objection.

Transcript Highlights:

• SB 903 simply clarifies that AI is not exempt from that rule, prohibiting AI from independently interacting
• AI systems are not. Without clear guardrails, AI chatbots that mimic therapeutic relationships...
• AI systems are not. Without clear guardrails, AI chatbots that mimic therapeutic relationships.
• And then the AI should be in support of that.
• We have data.

Summary: The Assembly Business and Professions Committee heard several Senate bills, with most of the discussion focused on worker training, public safety, and consumer protection. SB 1203 by Senator Smallwood-Cuevas would expand training and de-escalation requirements for private security officers. Supporters, including security workers and labor groups, said the bill would better prepare officers who often respond first to mental health crises and violent incidents. Opponents, including security industry representatives and business groups, argued it would impose major costs, create training bottlenecks, and could reduce licensed security coverage. The committee ultimately voted the bill out on a due pass recommendation to Labor and Employment, with some members noting future amendments to address training capacity and employer-provided training. The committee also approved SB 936 by Senator Blakespear, which would restrict retail sales of nitrous oxide canisters larger than 8 grams while preserving legitimate medical, dental, culinary, and automotive uses. Support came from county officials, public health groups, waste management organizations, law enforcement, and local governments, who described rising misuse, impaired driving, and recycling hazards. No opposition testimony was presented, and the bill passed to Public Safety. SB 1271 by Senator Reyes, aimed at strengthening California’s midwifery training pipeline by requiring data collection on licensed midwife preceptor capacity, also passed unanimously to Health. Supporters said the bill would help address shortages in rural birth care and improve access to training for aspiring midwives. SB 903 by Senator Padilla, which would place guardrails on the use of AI in mental health and psychotherapy settings and prohibit AI from being marketed as a therapist, drew emotional testimony from a mother whose son died by suicide after extensive chatbot interactions. Health and behavioral health groups supported the measure, while several industry and health organizations were opposed unless amended; the committee nevertheless sent it to Privacy and Consumer Protection on a unanimous vote. The committee also approved SB 1165 on consent and then adjourned.

Transcript Highlights:

• So, there could be a lag... ...in the data.
• big repositories of all this data.
• a huge swath of data.
• We often emphasize AI, not to replace, we're using this AI to enhance but not to replace the human decision-making
• Why does AI make a difference?

Bills: HB514, HB1652, HB2117, HB2298, HB3269, HB46, HB46

Keywords: maternal health, maternal care, pregnancy, labor and delivery, postpartum, doula, birth worker, midwife, obstetric care, women's health, rural health, health workforce, workforce development, trauma-informed care, public outreach campaign, health equity, minority health, underserved communities, Texas Department of State Health Services, HHSC

Transcript Highlights:

• How do we use AI responsibly around sensitive citizen data?
• And you can get great mean squared errors using AI, sort of looking at the big universe of data that's
• There's 330 million rows of data in this data set.
• There's 330 million rows of data in this data set.
• Yeah, Deloitte's created, I think, an eight-phase trustworthy data AI platform that looks at everything

Bills: SB1020

Keywords: special plates, Arizona Space Commission, transportation, funding, space exploration, 1182, all

Summary: The committee first took up Senate Bill 1020, which would create Arizona Space Commission special license plates and direct a portion of the plate fee to the Space Exploration and Aeronautics Research Fund. The bill’s sponsor and the Arizona Space Commission chair testified in support, emphasizing Arizona’s growing space industry, the need for a funding stream for the commission, and the bill’s role in promoting aerospace jobs, education, and economic development. They noted a planned floor amendment to extend the implementation deadline from 2026 to 2027. Members expressed strong support and highlighted Arizona’s competitiveness in space-related activity. The committee then heard a presentation from Deloitte on artificial intelligence in government. Deloitte described how AI and predictive analytics can improve state services, but stressed concerns about accountability, data quality, privacy, workforce impacts, and responsible use. The presentation used examples from public-sector data integration and predictive modeling, including how AI can help identify veterans who may qualify for benefits or other outreach, while cautioning that such tools should not be used for yes-or-no eligibility decisions. Members asked about data sources, accuracy, minors, privacy protections, and safeguards, and Deloitte said it follows a trust-and-governance framework and could provide more information later. Finally, the committee heard from Pano AI on wildfire detection technology. The presenter explained that the company uses camera towers, AI, and human review to detect smoke early, provide location data to responders, and improve initial attack on wildfires. She said the system is already deployed across Arizona through utilities, state agencies, and local departments, with more installations planned, and described examples where early detection helped contain fires and support evacuation and jurisdictional response. Members asked about coverage, weather limitations, funding, and future capabilities, and the presenter said the technology is a tool that will continue improving through better prediction and integration with other fire-management systems. The committee adjourned after the presentations.

Transcript Highlights:

• That's a lot of data.
• Or to abusing somebody's privileged data. The state is very rich with data, and that's where.
• Now, AI, based on all the data that it has ingested, can give you a more granular response, such as 87.6
• But that is one portion of AI.
• We are taking a data-first, data protection-first, and AI-smart approach rather than an AI-first approach

Transcript Highlights:

• All AI-driven data collection must strictly adhere to our privacy regulations. purposeful, aligned with
• All<00:31:01.480> AI-driven<00:31:02.760> data<00:31:03.160> collection<00:31:03.840
• > must All AI-driven data collection must All AI-driven data collection must strictly<00:31:04.640
• Also thinking through enhanced data protection requirements, as the unique aspects of generative AI and
• largest AI companies. largest AI companies.

Keywords: 912, senate, all

Transcript Highlights:

• center, is, and that just means that it clarifies it to be in keeping with all the other data center
• That it clarifies it to be in keeping with all the other data center bills.
• center bill to go along with the other data center bills by the definition of large energy use facilities
• So they really cover very different areas of what a data center would be.
• I guess large data centers are definitely going to get the message.

Summary: The House convened on June 30, 2026, with opening ceremonies, guest introductions, and moments of silence for Gerlindy Lancelotti and Iva Durham. Members then took up a long agenda of bills and resolutions, including consent calendar items and several measures related to agriculture, lottery reporting, health care, fire service membership standards, inmate work, telecommunications, rent increases, youth camp licensing, primary elections, respiratory care practice, and marriage equality. The chamber also heard extended debate on Senate Bill 233, concerning removal of snow and ice from vehicles, and on House Bill 188, which would allow unaffiliated voters to choose a party primary while barring participation in both parties’ primaries. Among the notable actions, House Concurrent Resolution 157 passed as amended, directing the State Lottery to report on options to support traditional lottery retailers. Senate Bill 53, preserving the Delaware Farm to Community Program if federal support declines, passed unanimously. Senate Bill 307, giving the Public Service Commission authority to designate eligible Lifeline carriers, and Senate Bill 339, clarifying advance health care directives, also passed. Senate Bill 235, removing a sunset on manufactured home rent increase calculations, passed, as did Senate Bill 325 after House Amendment 1 narrowed disqualifying offenses for fire service membership and adjusted related background-check rules. Senate Bill 309, discharging remaining incarceration-cost balances, and Senate Bill 324, addressing constable-related firearm permit provisions, both passed. The chamber tabled Senate Bill 233 once to consider a proposed amendment for trucks and other hard-to-clear vehicles, but the amendment failed and the bill later passed as amended by the Senate. Senate Joint Resolution 19, directing DHSS to study strategies to reduce health care costs, was tabled pending legal review. Senate Substitute 2 for Senate Bill 100, proposing a constitutional amendment to protect the right to marry, passed after extensive floor debate and personal statements from members on both sides. Senate Bill 293, creating a licensure pathway for summer camps to participate in purchase-of-care, passed after House Amendment 1. House Bill 188 on open primary access for unaffiliated voters passed 22-17, and Senate Bill 94, concerning respiratory care practitioners and ECMO medication delivery, passed after House Amendment 2. The transcript ends as the House begins consideration of House Substitute 1 for House Bill 404.

Transcript Highlights:

• them with the Gen AI update.
• And we are going to start with item number one, Gen AI update. Gen AI Update. Okay.
• assess AI output, which is how they build AI literacy.
• UC Davis already lost a $500,000 NEH grant to establish a center for AI and experimental futures.
• AI is here to stay.

Summary: The subcommittee heard an informational update on the state’s generative AI implementation and related oversight. Administration officials said several proof-of-concept projects have moved into minimum viable product phases, including work at CDTFA and Caltrans, and that CDPH has a May Revision request for up to $8 million to scale up its healthcare facilities inspections project. The Legislative Analyst’s Office urged the administration to publish a report on lessons learned from each POC and recommended limiting the new generative AI approval process to a pilot through the first two rounds of projects, with continued monthly meetings and stronger legislative oversight. Members pressed for more transparency and questioned why the CDPH request was not included in January; the administration said the cost estimate was not available then and that only one project is seeking additional resources beyond existing departmental budgets. The committee then reviewed a proposed $400 million loan from the Labor and Workforce Development Fund to the General Fund. Finance and the Labor Agency said the fund has grown because civil penalty revenues have risen sharply, and the loan would be repaid in 2029-30 with provisional language allowing earlier repayment if needed. The LAO agreed the fund could support the loan but warned that recent PAGA reforms may reduce future revenues. Public commenters, including labor and community groups, argued the money should instead support labor-law enforcement and outreach programs such as CWOP, and urged rejection of the loan. Members also heard a Department of Industrial Relations request for $19.1 million for phase two of Public Works Information Technology System Enhancements, which officials said will support labor-law enforcement and apprenticeship registration. The department said the project was delayed because a prior procurement did not result in a contract award and that completion is now expected in October 2026. The committee then took up an EDD Next reappropriation technical adjustment to extend UI fund spending authority through June 30, 2026; the LAO said the request was fine but again raised concerns about oversight of the larger modernization effort, which EDD said now totals more than $660 million and is expected to continue through 2029. Finally, the committee discussed DGS’s request for new parking facilities near the May Lee Building and a trailer bill shifting statewide telework policy language from DGS to CalHR while also expanding NDI eligibility for certain CEA employees. The LAO said the telework trailer bill should likely go through the policy committee process instead of budget, and union and employee witnesses strongly opposed it, arguing it would undermine bargaining rights and could be used to narrow telework. In a separate item on the governor’s return-to-office order, administration officials said departments are being directed to move to a four-day in-office expectation starting July 1, 2025, but they had no statewide cost estimate yet because departments are still assessing vacancies, exemptions, and space needs. Members criticized the lack of analysis and said the state should have clearer numbers before moving forward.

Transcript Highlights:

• But what happens when AI gets it wrong?
• In the real world, clinical judgment relies on more than data inputs.
• in the data they were trained on.
• in the data they were trained on.
• is low based on certain data in their chart.

Keywords: 987, senate, all

Transcript Highlights:

• data when we have finalized data.
• And it wouldn't just be AI.
• We’ll provide some additional data.
• This generative AI is taking that mass amount of data, giving our traffic engineers and analysts the
• This generative AI is take that mass amount of data, give our traffic engineers rules our analysts the

Keywords: 987, senate, all

Summary: The committee 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 reviewed proposals for EDD Next document management system funding, updated UI loan interest costs, disability insurance and paid family leave benefit and administration adjustments, WIOA funding changes, UI administrative and benefit changes, school employee benefit adjustments, an EMT training reappropriation, and a technical correction tied to EDD Next. PERB discussed funding tied to AB 28 and AB 1, including litigation-related workload and new jurisdiction over 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 on electronic assessment payments and the DWC director salary cap. CalHR proposed additional funding for a consolidated employee assistance program contract, and CalPERS and CalSTRS presented budget adjustments tied to investment costs and state contribution changes. Members focused heavily on UI debt and interest payments, asking the administration for a plan to reduce the outstanding loan and relieve employers. Finance said no specific repayment plan was included in the May Revision, while LAO said the state’s UI tax structure is structurally insufficient and that any debt payoff should be paired with tax-system reform. Senators also questioned EDD Next costs and timelines, PERB’s caseload and staffing needs, and DIR’s emerging technologies unit, with LAO noting that the unit would appear focused on physical workplace safety rather than broader AI labor issues. CalHR said the new EAP contract would consolidate services, improve access to clinicians, and lower costs relative to the current model. CalPERS defended higher external management fees as part of a strategy to pursue higher net returns, while some members pressed for more transparency about private investments; CalSTRS said it was not prepared to address investment-strategy questions at this hearing. Public comment in Part A was dominated by advocates urging support for an immigration enforcement emergency relief fund, along with comments supporting the Jails to Jobs proposal, the Apprenticeship Innovation Fund, and additional PERB funding. The chair noted that many of the immigration-related requests might fall under other committees and said staff would follow up. In Part B, Finance and LAO outlined judicial branch and DOJ May Revision items, including funding for court interpreter services, appellate court security, lactation room implementation delays, courthouse construction reappropriations, and DOJ budget increases. LAO recommended approving the language-access proposal with a report on reducing interpreter cost growth and reducing the General Fund backfill for state court facilities by $10 million on an ongoing basis.

Transcript Highlights:

• we're missing a huge swath of data.
• Um, viewing discharge data from the claims, claims data from Texas statewide, is that sepsis cases have
• Network 14, which is the data, it's a, it's the organization that is federal and does the data for the
• We often emphasize AI, not to, we're we're using this AI to enhance but not to replace the human decision
• AI is definitely the way to go.

Bills: HB46

Keywords: local government spending cap, expenditure limit, political subdivision, property tax, ad valorem tax, budget cap, taxpayer protection, spending restraint, inflation adjustment, population growth, voter approval, supermajority vote, county budget, municipal budget, school district finance, junior college district, hospital district, special district, attorney general enforcement, local fiscal limits

Transcript Highlights:

• We will be back in a few minutes with the gen AI update.
• in writing and requires them to critically assess AI output, which is how they build AI literacy.
• UC Davis already lost a $500,000 NEH grant to establish a Center for AI and Experimental Futures.
• community for faculty to learn how to use AI.
• Use AI. AI is here to stay.

Keywords: 988, house, all

Transcript Highlights:

• Just briefly, we some additional data.
• I hear that every day I talk to service—I even, you call everywhere, it's AI or they move the call center
• I hear that every day I talk to service—I even, you call everywhere, it's AI or they move the call center
• <01:20:25.600> out<01:20:25.840> of AI or they move the call center out of AI or they
• AI. How is that handled? AI. How is that handled?

Keywords: 1183, house