Transcript Highlights:

• that affected their feeling safe, and another court issue has arisen, such as a child custody modification
• I wonder then what about the survivor where there is a court issue, as I mentioned, a modification perhaps
• Parents file a modification and one has just done it frivolously, they can get zapped with attorney's

Bills: HB809, HB 1193, HB1916, HB2558, HB1973, HB2350, HB2399, HB2340, HB 116, HB330, HB2496, HB116

Keywords: digitized signature, waiver of citation, marriage dissolution, electronic notarization, family law, HB 1193, informal marriage, common-law marriage, declaration of informal marriage, confidentiality, privacy, county clerk, vital statistics unit, Family Code, Health and Safety Code, marriage records, public records, personally identifying information, PII, legal representative

Transcript Highlights:

• Significant changes to the Alamo Complex Rider and the GCPD Rider have been previously discussed and the modification
• Writer changes include minor technical modifications to remove obsolete language, make conforming changes
• Commissioner Hello and just up on the other WB presentation document, page 8, they're talking about the modification

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all

Transcript Highlights:

• The bill would also require a public meeting and hearing before significant modifications are approved
• posing some kind of a problem, nothing would prohibit you from being able to continue to provide modifications
• between removal of, for example, a barrier-protected bike lane that's been built versus making modifications
• And so this allows something different if you're using state funds, whole or in part, a modification
• Because the modification wouldn't be allowed.

Summary: The Assembly Transportation Committee heard several bills focused on active transportation, transit, road safety, and local enforcement. SB 569 would restrict removal or downgrading of bikeways built with state General Fund dollars for at least 20 years, require public hearings before major changes, and was supported by bicycle advocates and some local and environmental groups. The City of Encinitas opposed the bill, arguing it could limit needed safety fixes and should apply only to future projects; committee members discussed whether the bill still allowed safety-based modifications. The bill passed on a due pass vote to Appropriations. SB 741 would streamline the Low-Carbon Transit Operations Program by reducing administrative burden and giving transit agencies more flexibility to use funds for service improvements, fare programs, and other transit needs while maintaining oversight and disadvantaged community requirements. Transit agencies and advocacy groups supported the measure, saying it would help agencies respond to post-pandemic ridership and financial challenges. The committee approved the bill on a due pass as amended vote to Appropriations. The committee also heard SB 1167, which would tighten consumer protections by clarifying that high-powered e-motos and similar motor vehicles are not e-bikes, requiring clearer disclosures and labels, and improving crash reporting. Supporters said the bill would reduce confusion and improve safety for riders, pedestrians, and parents; the Motorcycle Industry Council opposed unless amended, arguing the term “e-bike” is used broadly and the bill could affect existing businesses. The bill passed to Appropriations. Later, SB 953, dealing with vehicular manslaughter cases dismissed through misdemeanor diversion, would add DMV points so fatal conduct remains reflected on driving records; the bill was supported by the victim’s family and safety advocates and passed to Appropriations. The committee then heard SB 1218, which would let local agencies boot vehicles tied to repeated unpaid illegal dumping citations instead of using DMV enforcement. Oakland officials and community groups supported the bill as a needed deterrent, while the ACLU opposed it as punitive debt collection without a sufficient nexus to the vehicle. The bill passed to Appropriations. Finally, SB 739 would revise the Clean Miles Standard for rideshare companies by allowing CARB and CPUC to adjust electric vehicle mileage targets in light of current market conditions; Uber and Lyft supported the flexibility, while clean air advocates began raising concerns about weakening climate goals as the transcript cut off.

Transcript Highlights:

• The bill would also require a public meeting and hearing before significant modifications are approved
• posing some kind of a problem, nothing would prohibit you from being able to continue to provide modifications
• between removal of, for example, a barrier-protected bike lane that's been built versus making modifications
• And so this allows something different if you're using state funds, whole or in part, a modification
• Because the modification wouldn't be allowed.

Keywords: 988, house, all

Transcript Highlights:

• This is an important modification because last year it's estimated that motans... part because I uh did
• This is an important modification because last year it's estimated that motans... section that is in
• 41.600> 1.4<00:16:42.880> um<00:16:43.680> updates Um, this is an important modification
• So 1.5 is just some technical changes, and then lines 1.6 to 1.8 are modifications to reporting requirements
• So, these modifications were offered in consultation with the Attorney General's Office.

Keywords: 1187, senate, all

Transcript Highlights:

• But if you have concerns with, for example, the MBA or Prop. 4 fund shifts, you could make some modifications
• But if you have concerns with, for example, the MBA or Prop. 4 fund shifts, you could make some modifications
• So I would like to advocate for a modification between now and May in the Governor's budget in terms
• Subsequently, AB 126 made some modifications.
• We're getting... ...modifications. So we issued a second staff report to incorporate that as well.

Summary: The committee hearing focused heavily on CARB’s broad trailer bill request for regulatory fee authority. Finance and CARB argued the proposal would let CARB develop fees to recover reasonable costs for implementing and enforcing regulations, while the LAO recommended rejection because the authority was too broad, could apply to an entire division of code, and would delegate core legislative taxing/fee-setting power without enough guardrails. Members from both parties raised concerns about the breadth of the authority, accountability, affordability impacts, and whether the Legislature would be put in an up-or-down position after CARB had already developed regulations. CARB responded that fees would still go through a budget change proposal and legislative approval before collection, and cited existing examples such as transport refrigeration units and commercial harborcraft fees. The committee then reviewed CARB’s request for permanent resources to implement SB 905 on carbon capture, utilization, storage, and carbon dioxide removal. CARB said the Legislature had previously authorized limited-term positions and funding, but it had struggled to recruit and retain staff with specialized regulatory and technical expertise, and that the work had included pre-rulemaking contracts, technology review, and permit-related preparation. Members questioned the pace of work, the use of limited-term positions, and whether additional permitting authority would be needed. CARB said it hoped to begin rulemaking later in the year if permanent resources were approved. Members also discussed the cap-and-trade spending plan, noting lower-than-expected auction revenues but higher interest earnings, and the need to monitor the Greenhouse Gas Reduction Fund and possible May Revision changes. The committee then heard overviews of the zero-emission vehicle package, the Community Air Protection Program, demand-side grid support, and e-bike incentives. CARB described ongoing investments in community-based transportation equity, drayage trucks, harbor craft, and other clean technology demonstrations, while members pressed on affordability, program duplication, and whether enough funding was being directed to incentive programs. No formal votes were taken during the portion provided, and the chair repeatedly indicated that the hearing was intended to surface concerns for later budget negotiations.

Transcript Highlights:

• So we—the modification 108—is a modification to the fiscal year that just ended, and we had to amend
• That's the modification that was to pay expenses that we'd already incurred that ended June 30th, for
• > 108<01:42:16.000> is<01:42:16.159> a So we the modification 108 is a So we the modification
• :42:17.840> year<01:42:18.000> that modification to the fiscal year that modification to
• That's the the modification of >> Right.

Keywords: 958, all

Summary: The committee first approved the June 9 minutes, then reviewed a deferred personnel contract involving workers’ compensation claims administration. Staff explained that the roughly $50 million figure included about $48 million for claims payments and up to $1.45 million per year for administrative services, with billing based on a fee schedule for specific services rendered. Senator Meredith raised concerns about the vendor’s history, the scoring and bid process, and prior allegations involving the company; the administration responded that the procurement had been conducted under 45A through open competition, with outside scorers and no finding of wrongdoing tied to this contract. Meredith moved to disapprove Contract 167, Hart seconded, and the committee voted 5-2 to disapprove it. The committee then deferred a Western Kentucky University personal services contract because the vendors were still not registered with the Secretary of State’s office. Hart moved to defer the contract until the August 2026 meeting, Meredith seconded, and the motion carried. The committee also approved the agenda covering the various contract lists and deferred items. Next, the committee heard from the Cabinet for Health and Family Services on several personal services contracts for medical staffing and related services. Secretary Steven Stack and staff explained that staffing shortages often require outside vendors, that the contracts were competitively bid under 45A, and that the cabinet uses a streamlined vendor pool for specialized needs such as actuaries, auditors, and technical consultants. The committee approved Contracts 52 through 55 without objection. Discussion then began on Contract 61, with Meredith expressing concern that the committee lacked enough detail to judge whether the services could be performed in-house or whether the exchange of resources was appropriate; Stack said the contract was intended to provide efficient access to specialized outside expertise. The transcript cuts off before a final vote on Contract 61 is shown.

Transcript Highlights:

• heat-based modifications. heat-based modifications.
• left to the staff modifications left to the staff discretion,<01:44:47.119> which<01:44:47.360
• > specific due to heat risk, though those specific due to heat risk, though those specific modification
• <01:45:05.520> guidances<01:45:06.159> are<01:45:06.320> still modification guidances
• are still modification guidances are still emerging.<01:45:07.520> Um,<01:45:07.840> happy

Keywords: 910, house, all

Summary: The joint Education and Higher Education committees met on February 10, 2026, first hearing HB 1676, which would create an AI and education task force, require documentation from AI vendors before procurement or use, and appropriate funds. The Department of Education, Public Charter School Commission, and University of Hawaii all supported the bill’s intent and described existing AI literacy efforts, teacher training, guidance for students and staff, and privacy/monitoring safeguards. DOE said it had already convened an AI task force, produced a report, trained over 10,000 educators, and embedded AI into computer science and broader curricular guidance. Members questioned DOE about student privacy, harmful content monitoring, personal devices, cell phone policy, teacher training, and whether AI literacy should extend beyond computer science into all subjects and across rural schools. After discussion, the chair announced HB 1676 would be deferred to Friday, February 13, and that a HD1 draft would be prepared. The chair said the committee would revisit the task force composition and procurement standards, with possible elimination of the procurement section, and circulate the revised draft before the next hearing. The committee then recessed and later reconvened for HB 1811, a student loan repayment program for educators. Testimony from the Department of Education, Public Charter School Commission, University of Hawaii, Hawaii Teacher Standards Board, HSTA, and the Democratic Party of Hawaii Education Caucus was generally supportive, with HSTA and the Teacher Standards Board emphasizing teacher recruitment and retention, student loan burden, and the need to address the teacher shortage. In decision-making on HB 1811, the committees adopted the chair’s recommendation to pass the bill with amendments. The main amendment collapsed the repayment structure into a single disbursement of up to $25,000 after five years of service, with technical/non-substantive changes and a corrected effective date. Both the Education and Higher Education committees voted unanimously in favor. Later in the meeting, the Education Committee began hearing HB 1561 on student meals, which drew broad support from the Public Charter School Commission, Department of Health, HSTA, Hawaii Appleseed, Hawaii Children’s Action Network, and many individuals. Appleseed requested amendments to ensure charter schools are treated the same as other public schools if eligibility expands and to address reimbursement issues for schools already participating in the federal Community Eligibility Provision; members discussed those concerns but no action was taken in the portion of the transcript provided. The committee then moved on to HB 779, on expanding student meal coverage, where DOE supported the intent but said it could not support the bill in its current form because of fiscal constraints.

Transcript Highlights:

• or<00:25:08.240> facing<00:25:08.640> legal<00:25:09.039> challenges modifications
• or facing legal challenges modifications or facing legal challenges later.<00:25:10.279> Furthermore
• have to face costly modifications have to face costly modifications because<00:47:40.160> they
• And as I said earlier, improving our process will avoid costly modifications and delays on the back end
• Harrington. modifications and delays on the back end modifications and delays on the back end when<00

Keywords: 1187, senate, all

Transcript Highlights:

• <00:02:55.880> to<00:02:56.040> remove<00:02:56.360> two small modification
• to remove two small modification to remove two sections<00:02:57.120> that<00:02:57.280> related
• And then the modification made on line 1.10 is to change the term health plan to health plan companies
• <00:20:12.800> made<00:20:13.200> on And then uh the modification made on And then
• uh the modification made on line<00:20:13.760> 1.10<00:20:15.200> is<00:20:15.520> to

Keywords: 1187, senate, all

Transcript Highlights:

• THAT THE ADOPTION OF THE PLAINLY AUDIBLE RULE WOULD DEAL WITH EXCESSIVE EXHAUST NOISE AND ILLEGAL MODIFICATIONS
• IT'S ALREADY ILLEGAL IN FLORIDA TO MODIFY ILLEGAL MODIFICATIONS OF THE EXHAUST SYSTEMS.

Transcript Highlights:

• There are delays in the ECAP Entitlement Day and also other modifications to ECAP slots.
• There's also modifications, particularly to federal authority related to disaster response activities

Summary: The conference committee met on Engrossed Substitute Senate Bill 5167, the state operating budget, and received a detailed staff briefing on the proposed conference report. Staff explained how to read the comparison documents, the four-year balanced-budget outlook, and the main resource assumptions, including use of the March 2025 revenue forecast, exclusion of the statutory 4.5% growth assumption, revenue legislation totaling about $8.7 billion, numerous fund transfers, and reversion assumptions. They also noted the proposal does not include a temporary salary reduction or furloughs. The briefing highlighted major policy areas and their net five-year impacts, including increases for state and higher education employee compensation, K-12 education, long-term care and developmental disabilities, corrections, information technology, and other policy items. It also described net reductions in behavioral health, children/youth/families, higher education, natural resources, other human services, and health care/public health, with many of the changes tied to delayed programs, rate adjustments, fund shifts, and savings options from Governor Ferguson. The committee then heard member comments, with supporters emphasizing K-12 funding and fiscal responsibility, and Senator Gildon opposing the process and the closed-door nature of the budget development. A motion was made and seconded to recommend adoption of the conference report and pass the bill. The roll call showed one member voting do not recommend, one member excused, and the remaining members recommending adoption. By vote of the committee, the conference report was adopted, and the committee adjourned.

Transcript Highlights:

• Um, I might defer to—it is a modification of the definition of security services.
• Um I might defer to um it is a modification<00:09:23.600> of<00:09:23.760> the<00:09:23.920
• > definition<00:09:24.160> of modification of the definition of modification of the definition

Keywords: 1183, house

Summary: The committee took up House File 3363, a bill focused on protecting the privacy and safety of legislators and other candidates by limiting public access to home addresses and related information in campaign finance and election filings. The author said the bill was prompted by the events of June 14 and was intended to make temporary Campaign Finance Board changes permanent. No public testimony was offered, and the author explained that the bill had been narrowed and reorganized after a Senate delete-everything amendment expanded its scope. Members then considered a series of amendments. The A1 amendment, which added security devices and security services as allowable non-campaign disbursements, was adopted after questions about family relationships and whether payments to relatives could qualify. The A2 through A9 amendments were also adopted, covering data classification or redaction of street addresses in Campaign Finance Board reports, lobbyist gift reports, candidate affidavits of candidacy, nominating petitions, local government candidate reports, and retroactive redaction of existing reports. The A4 amendment was modified by A12 to apply city, state, and ZIP code reporting to political committees, political funds, and party units. The A13 amendment removed a proposed misdemeanor penalty tied to disclosure violations, and the A14 amendment was adopted to give caucus and chamber leaders access to actual candidate addresses, though members noted the language still needed refinement and that the intent was to continue working on it. There was discussion about whether the address-access language in A14 would apply to all candidates or only legislative candidates, and whether it would affect residency disputes; staff said it would not change complaint or court processes, but could be a data point. Several members said they had concerns about the breadth of the language but were willing to keep working on it. After the amendments were adopted, the committee moved to the bill as amended and recommended that House File 3363 be re-referred to the Judiciary Committee.

Transcript Highlights:

• Bill 1115 by Representatives Baser and Steuart, also Senators Robertson and Bright, concerning modifications
• Bright<00:43:11.839> concerning Robertson Bright concerning Robertson Bright concerning modifications
• to<00:43:12.960> the<00:43:13.040> prepaid<00:43:13.520> wireless modifications
• to the prepaid wireless modifications to the prepaid wireless telecommunications<00:43:14.880> service

Keywords: 981, all

Summary: The House convened with a quorum, approved the journal, and spent much of the opening portion recognizing visitors and celebrating Colorado FFA Day. Members introduced guests and student groups, including the Colorado Dental Association and 350 Colorado Youth Action Committee, and several speakers highlighted the importance of FFA and agricultural education. Representative Johnson and AML Winter gave extended remarks about FFA’s role in leadership, rural life, and support for students, and the chamber recognized FFA members in attendance. The chamber then adopted a motion making several bills special orders and moved into floor consideration of multiple measures. Senate Bill 10, concerning clarification of agricultural property tax definitions, passed after sponsors explained it would better define agricultural land and pasture-based livestock operations to support small and beginning farmers. Senate Bill 52, concerning coal transition communities, passed after the House adopted amendments L4, L5, and L6 clarifying that hiring preferences apply only to qualified coal transition workers in coal transition communities and that public entities may invest settlement funds related to coal closures. House Bill 1115, modifying prepaid wireless telecommunications service charges, passed after a finance committee amendment exempted federal Lifeline plans; sponsors said the bill reinstates the 911 surcharge on prepaid plans to support 911 and 988 services. House Bill 1182 passed after sponsors and the veterinarian member described it as a sunset repeal of the Veterinary Pharmaceutical Advisory Committee, which had not met since 2021. House Bill 1096, allowing Medicaid members to access direct primary care on a cash-pay basis, passed with a two-year data-review amendment; sponsors said it is aimed at rural health access and health deserts. House Bill 1142, concerning child advocacy centers, also passed after amendment L3 clarified definitions in Title 19; sponsors said it would better define child advocacy centers, multidisciplinary teams, and child maltreatment and support confidentiality and immunity protections for those centers.

Transcript Highlights:

• rules for the purpose of allowing members to co-sponsor bills and resolutions or to submit vote modifications
• or to co-sponsor bills and resolutions or to submit<00:04:29.040> vote<00:04:29.360> modifications
• <00:04:30.160> and<00:04:30.400> have<00:04:30.639> filed submit vote modifications
• and have filed submit vote modifications and have filed the<00:04:31.040> proper<00:04:31.280

Keywords: Convene 00:00 Senate Message 04:45 Calendar/2nd Readings 05:20 Report of Committees 07:05 Orders of the Day 08:23 HB 214 08:33 HB 416 12:26 HB 281 16:20 HB 134 18:13 Motions, Petitions, and Communications 21:08 Introduction of New Bills and Resolutions 37:01 Recess for ConC/Rules Meeting 39:15 ConC/Rules Report 42:29 Floor Amendments 44:27 Correction to Introduction of New Bills and Resolutions 46:14 Adjournment 46:40, 958, all

Summary: The House convened, heard an invocation focused on recovery from a recent storm, and recited the Pledge of Allegiance. A quorum was established with 94 members present, absent members were excused, and the rules were suspended to allow co-sponsorships and vote modifications. The journal was approved, and the clerk reported a Senate message transmitting Senate Joint Resolution 23 for concurrence. The chamber then received second-reading reports on a wide range of bills covering pharmacist reimbursements, grooming a minor, local government liability, water fluoridation, solid waste, highway markings, fiduciary bonds, motor vehicle titles, hearing aid coverage, eating disorder coverage, public safety, pedestrians, cigar bars, backyard chickens, and county law libraries. Committee reports also advanced several bills, including measures on elections, local government, state-operated mental health facilities, prescription drugs, Alzheimer’s services, electric generating unit decommissioning costs, reemployment of retired police officers, and the Kentucky Communications Network Authority. Those favorable reports were treated as first readings and placed on the calendar. The House passed several bills unanimously by roll call, including House Bill 214 on a program to help disabled veterans obtain and install home wheelchair ramps, House Bill 416 on educator preparation and early assessments, House Bill 281 on streamlining food donations by churches and nonprofits for shelters and disaster victims, and House Bill 134 on sexual assault nurse examiners, creating a statewide coordinator, registry, and regional access plan. In each case, sponsors explained the bills and members voiced support; floor amendment 1 to House Bill 416 was adopted before passage. Clinchers were applied after passage of the bills. The House also adopted House Resolution 33 recognizing cancer patients, survivors, and families and designating January 29, 2026 as Suits and Sneakers Day, and adopted House Resolution 43 recognizing the economic and cultural partnership between Kentucky and Japan. Members offered additional citations honoring Newport Central Catholic High School and the YMCA, and the chamber observed a moment of silence for Boone County Sheriff Michael Helmig after a citation honoring his service and legacy. Announcements included committee meetings after adjournment, birthday wishes, and the introduction of numerous new bills and resolutions, including measures on kindergarten, bridges, revenue, retirement benefits, concealed deadly weapons, local taxes, motor vehicles, fiscal reporting, SNAP, families and children, vision testing, and a balanced budget amendment application.

Transcript Highlights:

• going to move on to item number four: draft legislation, Signature Gathering and Verification Modifications
• Signature Gathering and Verification Modifications.
• So the motion before us now is to favorably recommend the signature gathering and verification modifications
• going back to the HOPs section, so if I understand correctly, for those locations, we're making a modification

Keywords: 985, all

Transcript Highlights:

• harshly than female defendants, and mothers are more likely than fathers to be granted custody modifications
• One small modification to that point that could be made is on page four, line 23.
• The council staff considered all comments and proposed modifications received.

Bills: HB 1181, HB3704, HB1363, HB1610, HB1615, HB1620, HB3223, HB1317, HB2884, HB2176, HB4027, HB1664, HB933, HB2613, HB3353, HB2086, HB4101, HB3441, HB4145, HB3455

Keywords: judiciary, judges, justices, retired, legal assignments, judicial conduct, notary public, criminal offense, education requirements, official documents, record retention, implicit bias, bias training, judicial training, judge education, court personnel, continuing legal education, CLE, state bar, Texas Court of Criminal Appeals

Transcript Highlights:

• He recognized Senator Gruters to discuss recommendations for modifications to Chapter 120.
• Are there members of the public that would like to comment on the potential for 120 modifications?
• Are the members of the public that would like to comment on the potential for 120 modifications?

Summary: The Joint Administrative Procedures Committee met on February 3, 2025, with a quorum present and took up three main items. First, the committee considered a large set of recommended objections to Agency for Health Care Administration rules, all centered on sunset provisions stating the rules would expire after five years. AHCA asked for another deferral while it reviewed the rules, arguing the sunset language was a form of self-restraint rather than an invalid exercise of rulemaking authority. Committee leadership disagreed that further delay would resolve the issue and moved to a single vote covering all objections. The motion passed by roll call, and the committee informed AHCA that an objection would be filed unless the agency amended the rules within 30 days. The committee then heard an informational briefing from the Department of Environmental Protection on its Outstanding Florida Springs rule and stormwater rule. DEP explained that it did not prepare a statement of estimated regulatory cost for the springs rule because the proposed standards largely mirror existing water management district rules and the Central Florida Water Initiative framework, so DEP said there was no new regulatory burden. Members asked about permit authority, costs, and whether the rules were functionally different from prior rules. DEP maintained the rules set minimum standards and did not add costs beyond what regulated parties were already doing. DEP also described implementation of the stormwater rule adopted under the 2020 Clean Waterways Act and later ratified by the Legislature in 2024. DEP said the rule was the product of years of workshops and technical advisory committee meetings, and that the final version included lower-cost alternatives, grandfathering, and phased implementation. DEP estimated the rule’s cost at about $2,600 per acre in the revised CERC, while industry witnesses said the real cost could be much higher, especially if land costs are included. A home builders representative argued the estimate understated impacts, while a stormwater engineer said the rule gives more flexible, performance-based tools and could become more cost-effective over time. Finally, Senator Graal presented proposed Chapter 120 changes in SB 108, aimed at tightening and modernizing rulemaking. The proposal would require five-year rule reviews, annual agency reporting, faster notice of proposed rulemaking after authorizing legislation, electronic filing, public access to incorporated materials, clearer tracking of technical changes, and limits on how long rules can remain pending ratification. Members discussed whether the Legislature should be more specific in statutes about rulemaking deadlines and whether agencies should be more accountable when rules stall. No formal action was taken on the Chapter 120 proposals, and the committee adjourned after discussion.

Transcript Highlights:

• And relative to the May Revision proposal, that would involve two major modifications.
• And relative to the May revision proposal, that would involve two major modifications.
• The second modification would be to create an exemption or reduced rate for software purchased by businesses
• I don't know if you had a reaction to anything that they raised for their two suggested modifications
• to the R&D. proving this proposal it may want to look in the future additional modifications to the

Keywords: 988, house, all

Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.

Transcript Highlights:

• Items C and D relate to a modification to the agency's base request.
• There has been a modification since we went to print, and so the total request has been reduced to $34.2
• Recommendations include a modification to Rider Five to remove the inclusion of estimated unexpended
• Most of these in the top portion of the page are modifications to riders that revise to a standardized
• **Page 7**: Rider modifications include a $2.9 million decrease to DIR's capital budget.

Bills: SB1, SB 1

Keywords: appropriations, budget, state funding, education, healthcare, infrastructure, campground safety, youth camp regulations, flood safety, emergency evacuation, health and safety standards, 1185, senate, all