Transcript Highlights:

• nonprofit ownership providers.
• None of that, none of that, ...against nonprofits, which is really a large scale from other nonprofits
• So Habitat for Humanity and other nonprofit home providers are not looking to compete.
• You know, if we're granting funds to nonprofits and then nonprofits now have the ability to purchase
• The Casita Coalition is a California-based nonprofit with a national reach.

Committee: House Housing and Community Development

Transcript Highlights:

• </c> 592 individual unique nonprofit 592 individual unique nonprofit organizations<00:12:35.760><c> that
• </c> state funded grants to nonprofit state funded grants to nonprofit organizations<00:14:09.199><c>
• </c> funded grants per year to nonprofit funded grants per year to nonprofit organizations<00:20:15.000
• 2.6 billion dollars to 2,500 nonprofits, unique nonprofits, and we don't even have a system to get to
• </c> which ones were uh nonprofit which ones were uh nonprofit organizations<00:53:29.280><c> did</c>

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• model, reducing financial strain as nonprofits continue to provide services.
• The nonprofits who do apply must either take on high-interest loans to cover startup costs… The nonprofits
• target vulnerable populations supported by nonprofits every day.
• We can do better, and nonprofits deserve better.
• We can do better, and nonprofits deserve better.

Summary: The Governmental Organization Committee heard a series of bills focused largely on alcohol licensing, nonprofit funding, tribal grants, public transparency, and tobacco policy. AB 342 (Haney) would allow local governments to create hospitality zones with extended last-call hours on certain days; supporters argued it would boost tourism, nightlife, and major-event readiness, while opponents warned of alcohol-related harms and public safety risks. AB 684 (Patel) would subject the UC Board of Admissions and Relations with Schools to open-meeting requirements, with supporters saying admissions-related changes should be more transparent and allow schools time to adjust. AB 1008 (Addis) would authorize up to 10 new on-sale general licenses in San Luis Obispo County to meet tourism demand, and AB 1039 (Hart) would require state agencies to offer advance payments on new nonprofit grants and contracts, which supporters said would help cash-strapped nonprofits deliver services. AB 221 (Ramos) would revise the Tribal Nation Grant Fund to provide more predictable annual distributions to eligible non-gaming and limited-gaming tribes, and it drew broad support from tribal representatives and others. AB 795 (Jeff Gonzalez) would create a California commission for the nation’s 250th anniversary celebration, with supporters describing it as a privately funded, nonpartisan planning body. AB 828/AB 28 (Mark Gonzalez, as referenced in the transcript) would expand neighborhood-restricted liquor licenses in Los Angeles County to reduce costs and support restaurant recovery, and AB 1246 (Hoover) would increase craft distillers’ direct sales limits and address barrel-storage rules; both were supported as small-business measures. AB 1428 (Ta) would require reporting of all surplus and underutilized state land, and AB 957 (Ortega) would prohibit tobacco sales in pharmacies, with strong public health support. Several bills were voted out on motions to Appropriations, some with amendments, while others were held or left on call until quorum was established; the committee also adopted a consent calendar and left rolls open for absent members on multiple measures.

Transcript Highlights:

• I'm the CEO of the New Hampshire Center for Nonprofits, which is a nonprofit organization that exists
• </c> is of the charitable or nonprofit is of the charitable or nonprofit organization<01:35:55.760><c
• </c> whether a community and a nonprofit whether a community and a nonprofit hospital<01:48:52.239><c
• </c> filing P penalty causing the nonprofit filing P penalty causing the nonprofit to<02:31:34.399><c
• </c> filing this bill will allow nonprofits filing this bill will allow nonprofits the<02:32:36.399><

Committee: House Municipal and County Government

Transcript Highlights:

• Kill, we're legally a 501(c)(3) nonprofit. We are a fee-based consulting nonprofit.
• And just to your comment on the nonprofit, I know both sides sometimes lump nonprofits all into one,
• right</c><01:25:05.080><c> uh</c> nonprofits or another nonprofit right uh nonprofits or another nonprofit
• </c><01:26:45.199><c> be</c> these companies these nonprofits be these companies these nonprofits be
• Propel Nonprofits supports over 600 nonprofits each year throughout the state of Minnesota.

Committee: Senate Jobs and Economic Development

Transcript Highlights:

• So their nonprofit status, they may have the same name on the store.
• Which ones are nonprofit and which ones are for-profit?
• And I would agree, nonprofit corporations, there's nothing that says they can't...
• They're going to want to get in on this as soon as they turn into a nonprofit.
• They're going to want to get in on this as soon as they turn into a nonprofit.

Summary: The conference committee on HB 1428 met to discuss amendments affecting sales tax treatment of clothing sold by nonprofit thrift stores. Members explained that the original bill focused on used clothing, but the language was changed in appropriations to “all clothing” after concerns were raised that the term “used clothing” was too vague under North Dakota’s sales tax code and could create compliance problems with the streamlined sales and use tax agreement. Testimony and discussion focused on practical issues such as distinguishing new from used clothing, whether items with tags donated by retailers would qualify, the burden on volunteer-run nonprofits to determine taxability, and whether the change would put nonprofit stores in competition with for-profit retailers and consignment shops. Several members supported the policy goal of encouraging reuse and reducing landfill waste, while others argued the broader exemption would be unfair to taxable businesses and could invite more nonprofits to seek similar treatment. Senators emphasized that staying in compliance with the streamlined agreement was necessary to avoid jeopardizing reciprocal agreements with other states, while House members noted the original used-clothing concept had support in both chambers. No final compromise was reached, and the committee adjourned to be rescheduled.

Transcript Highlights:

• It allows for a for-profit entity and a nonprofit...
• Essentially, it allows nonprofit entities and for-profit entities to partner, with the nonprofit entity
• It's allowing nonprofit entities and for-profit entities to partner, with the nonprofit entity being
• an Idaho-based nonprofit to keep that benefit here in the state.
• nonprofit, so it can't be a Montana- or California-based nonprofit.

Committee: House Revenue and Taxation

Transcript Highlights:

• If this bill closes that... ...and the mission that nonprofits are alleged to serve.
• And I think we all went to celebrate nonprofits about a month ago, or not that long ago.
• And not one of us, I think, would have brought up an ICE detention as our nonprofit of the year.
• One, I don't believe this is what we mean when we talk about nonprofits.
• This is not what we mean in terms of nonprofits.

Summary: The Assembly Committee on Revenue and Taxation heard several bills focused largely on veterans’ tax relief, disaster-related property tax rules, contractor tax compliance, and nonprofit property tax exemptions. The chair reviewed committee procedures, including the suspense file process for bills with significant revenue impacts, and noted that only one bill would be voted on immediately. Most measures were presented with supportive testimony and then referred to suspense. SB 888 would exclude VA service-connected disability compensation from household income when determining eligibility for the low-income disabled veterans’ property tax exemption. The author argued the bill would prevent disabled veterans from being unfairly penalized and help them remain in their homes; a VFW representative testified in support, and there was no opposition. SB 1053 would allow county boards of supervisors, for disasters declared on or after January 1, 2026, to extend the five-year period for transferring a damaged property’s base-year value by up to three years. Support came from the California Assessor Association, and the bill was also sent to suspense. SB 1407 would exempt the first $40,000 of military retirement pay and surviving spouse benefit payments from state income tax for qualifying filers, with the author and witnesses arguing it would improve veteran retention in California and support the state economy. Multiple organizations and veterans spoke in support, and the committee members expressed strong sympathy for the measure, but it too was referred to suspense. SB 420 would deny charitable property tax exemption to organizations tied to private immigration detention facilities; the author and supporters said the bill would close a loophole that had allowed a detention facility in Imperial County to avoid millions in property taxes. Members voiced strong support and concern about the reported conditions at the facility, and the bill was also sent to suspense. The only bill taken up for a vote was SB 1165, which would improve coordination between the CDTFA and the Contractors State License Board so unpaid tax liabilities by contractors could be used in licensing enforcement, while preserving due process and installment agreement flexibility. After supportive testimony from the author and the California Tax Reform Association, the committee approved a due pass motion to Appropriations on a 7-0 vote. The committee then adjourned.

Transcript Highlights:

• . nonprofits, they give it tenfold back to the community.
• And also Jennifer Fearing on behalf of Cal Nonprofits. And we'll start with Susie.
• And now, more than ever, we must prioritize resources to nonprofits.
• That target nonprofits on ideological grounds, including our very 501c3 tax-exempt status.
• AB 265's definition of a qualified nonprofit, including the state nonprofit designation, helps ensure

Committee: House Economic Development, Growth, and Household Impact

Transcript Highlights:

• In 2023, we went directly to the nonprofits themselves.
• 44.040><c> kind</c><01:12:44.159><c> of</c> to the nonprofit can you just kind of to the nonprofit can
• <01:14:06.159><c> um</c><01:14:06.400><c> cuts</c><01:14:06.800><c> that</c> nonprofit um cuts that nonprofit
• So the fiscal agent is not a government entity; it's a nonprofit.
• </c><01:18:34.840><c> or</c> rental agreement with the nonprofit or rental agreement with the nonprofit

Committee: Senate Capital Investment

Transcript Highlights:

• House Bill 2610 concerns the property tax exemption for nonprofit homeownership development.
• House Bill 2610 concerns the property tax exemption for nonprofit homeownership development.
• As background, property owned by nonprofits is generally subject to property tax.
• So the dance group or whatever also has to be a nonprofit, that's what the bill would require?
• It excludes presentations given by nonprofits from the definition of live presentations.

Summary: House Finance held public hearings on several tax and property-related bills. HB 2584 would create a sales and use tax exemption for qualifying farm machinery and equipment purchased by eligible farmers, with supporters arguing it would ease financial pressure on farmers, encourage investment in more efficient and environmentally friendly equipment, and help rural economies. County officials opposed extending the exemption to local sales taxes, warning of cumulative revenue losses for local governments. HB 2376 would consolidate the state school property tax levy and expand property tax relief for seniors, people with disabilities, and veterans by raising income thresholds, increasing exemption amounts, and simplifying the income calculation; county assessors and local officials supported the bill as a way to help residents age in place, while opponents argued it would raise taxes for others and weaken the 1% cap. HB 2610 would broaden the nonprofit homeownership development property tax exemption to allow limited interim rental or community use without losing the exemption, and testimony from affordable housing groups supported the change as a practical way to keep projects moving and reduce costs. HB 2615 would codify the Department of Revenue’s voluntary disclosure program and create a temporary tax amnesty period for certain unpaid business taxes; supporters said it would bring businesses into compliance and generate revenue, while one sponsor noted technical issues still needed to be resolved. In executive session, the committee advanced four bills. HB 2194, allowing a county and city within it to concurrently impose a cultural access program sales tax, passed 10-5. Substitute HB 2257, a broad tax code cleanup and technical changes bill, passed unanimously 15-0 after members said it clarified ambiguities from prior legislation. HB 2528, which would remove voter-approval requirements for certain cities to impose a local real estate excise tax, passed 11-4 despite objections that it reduced voter control over tax increases. HB 2175, exempting certain nonprofit providers of free durable medical equipment from sales tax on repair parts, also passed unanimously 15-0. The chair announced that HB 2584, HB 2610, and HB 2615 would be scheduled for executive action the following day, with no amendments allowed.

Transcript Highlights:

• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• Nonprofit home developers like Habitat for Humanity, Self-Help Enterprises, and others are prohibited
• If these are deed-restricted units, I'm trying to understand what the risk is with a nonprofit buyer
• We are often not engaged in the contractual provisions with the nonprofits themselves, but we do sell
• So it's not as if the nonprofit is getting to mandate that.

Summary: The Senate Committee on Housing met without a quorum at first and operated as a subcommittee, then later established a quorum and took up several housing-related bills. Early presentations included AB 2390, a cleanup bill on housing streamlining and project modifications, which was described as clarifying that minor and subsequent modifications are reviewed under the standards in effect when the original application was filed; there was no opposition, and the bill was moved on a due pass motion but held on call for absent members. AB 1890, which would increase state matching support for Napa County farmworker housing centers from $250,000 to $500,000 annually and extend the program through 2036, drew strong support from Napa County officials, the Farm Bureau, hospitals, and vintners, and was also moved to Appropriations and held on call. AB 956, an ADU bill allowing more flexibility in how accessory dwelling units are built and clarifying application of ADU law in common interest developments, drew support from housing advocates and opposition from the League of California Cities over density, infrastructure, and local control concerns; the committee discussed amendments to avoid triggering density bonus law, then passed the bill as amended to Local Government, with some members expressing reservations or abstaining. The consent calendar, including AB 739, AB 2162, AB 2320, and AB 2692, was also acted on and held on call for absent members. Later, the committee heard AB 939, which would remove a 180-day resale restriction for certain income-restricted ownership units when a nonprofit affordable housing organization is ready to buy and sell them to qualified low-income buyers. Supporters, including Habitat for Humanity and California YIMBY, said the bill would reduce vacancy, carrying costs, and delays in getting affordable homes to buyers; the California Association of Realtors opposed unless amended, arguing the bill could limit buyer choice, codify first-right-of-refusal provisions, and reduce wealth-building opportunities. Members questioned those concerns, and the author said amendments were being worked on; the bill was moved to Appropriations and held on call. AB 1165, the California Housing Justice Act, would require state housing agencies to develop a fiscal analysis and long-term financial plan for ending homelessness and addressing housing affordability; it received broad support from supportive housing, civil rights, and homelessness organizations, with no opposition filed, and was moved to Appropriations and held on call. AB 1184, an HOA transparency bill requiring more notice and access around litigation and recordings, was moved to Judiciary after discussion about whether it duplicated existing HOA law and whether the proposed amendments were too broad. AB 2035, a narrowly tailored bill for Laguna Woods Village to lower the vote threshold needed to petition a court to amend outdated CC&Rs, was supported as a one-time fix and moved to Judiciary. Finally, AB 1573, pulled from consent, would add survivors of domestic violence, sexual assault, and human trafficking to housing element target populations; supporters said these groups are overrepresented among people experiencing housing instability and should be explicitly included in local housing planning.

Transcript Highlights:

• The bill before you today would simply ensure that the tax dollars received by nonprofit organizations
• </c> directly to earmark nonprofit directly to earmark nonprofit organizations<00:03:54.720><c> who</
• </c><00:04:42.000><c> status</c><00:04:42.720><c> for</c> who utilize their nonprofit status for who
• I guess we go back to the term nonprofit means different things, right?
• </c> direct Appropriations towards nonprofit direct Appropriations towards nonprofit entities<00:30:45.279

Bills: HF72 , HF66 , HF69 , HF73

Committee: House Elections Finance and Government Operations

Transcript Highlights:

• Leaving out nonprofits leaves out a huge element of this.
• Leaving out nonprofits leaves seriously.
• ><c> a</c> out a grants to nonprofits leaves out a out a grants to nonprofits leaves out a a<00:14:02.560
• </c> were a business. they are a nonprofit were a business. they are a nonprofit and<00:14:57.440><c>
• ,</c> we don't include grants to nonprofits, we don't include grants to nonprofits, we<00:15:26.800><

Transcript Highlights:

• This bill is about leveling the playing field among our nonprofit child care centers.
• Currently, nonprofit child care centers that own their building are exempt from property taxes, but those
• With me today I have the director of another one of our amazing nonprofit daycares in St.
• </c> reduces the overhead costs for nonprofit reduces the overhead costs for nonprofit child<00:02:53.319
• I just wondered why it is limited to nonprofits that rent.

Transcript Highlights:

• </c> funded grants per year to nonprofit funded grants per year to nonprofit organizations<00:06:55.680
• </c> figure out which ones were uh nonprofit figure out which ones were uh nonprofit organizations<00
• </c><00:40:24.240><c> over</c> 2.6 billion dollar to nonprofits over 2.6 billion dollar to nonprofits
• unique nonprofits and to 2500 nonprofits unique nonprofits and we<00:40:33.440><c> don't</c><00:40:33.640
• </c><01:07:38.160><c> or</c> government providers or nonprofits or government providers or nonprofits

Transcript Highlights:

• </c><01:28:26.560><c> organize</c> certainly help those nonprofits organize certainly help those nonprofits
• </c><01:40:47.480><c> organizations,</c> volunteer with nonprofit organizations, volunteer with nonprofit
• </c><01:43:49.679><c> looking</c> great there a lot of nonprofits looking great there a lot of nonprofits
• They lower the risk, especially for nonprofit boards.
• </c> services to nonprofits around the state. services to nonprofits around the state.

Committee: Senate Executive Departments and Administration

Transcript Highlights:

• a bit of gratitude, recognizing the time and collaboration and the experiences that many of our nonprofits
• Today, we will hear from participants in successful models of collaboration in our state, from nonprofits
• This is a collaboration of nonprofit organizations, philanthropy, government, the private sector, and
• States, nonprofits, and industry overall. Are we okay to go in order? Are we okay?
• organizations, Together, more than 200 partners from industry, education, government, and nonprofit

Transcript Highlights:

• of that nonprofit.
• But you went out and started your own nonprofit.
• to use existing nonprofits.
• nonprofits.
• Institute, a 100-year-old nonprofit.

Summary: The subcommittee opened with remarks on the state budget and K-12 education, noting the large increase in the Proposition 98 minimum guarantee, the use of deferrals and reserves in the prior budget, and the challenge of balancing education funding against other state priorities. Superintendent Tony Thurmond described California education as improving overall, citing gains in test scores, graduation, and college readiness, but said major gaps remain for low-income students, students of color, agricultural communities, English learners, foster youth, and students with disabilities. He praised recent investments in universal meals, transitional kindergarten, community schools, arts, broadband, and special education, while warning that declining enrollment, chronic absenteeism, and the proposed $5.6 billion Prop. 98 settle-up create uncertainty for districts. He also urged a long-term literacy plan, expanded tutoring, universal kindergarten, and continued protections for students and families affected by immigration enforcement, including ICE-related fear and attendance loss. The committee then heard a detailed presentation on Proposition 98 from the Department of Finance and the Legislative Analyst’s Office. Finance explained that the Governor’s budget projects the minimum guarantee will rise by about $21.7 billion over three years, with a $5.6 billion settle-up obligation in 2025-26 intended to avoid overappropriation if revenues weaken. Finance also described revised reserve deposits and withdrawals, ending with about $4.1 billion in the Public School System Stabilization Account by 2026-27. The LAO said recent revenue collections were stronger than expected in the current year but warned that the outlook for 2026-27 is weaker and that stock-market-driven revenues remain volatile. The LAO supported maintaining reserves and one-time spending buffers, but recommended fully funding the guarantee and using other budget solutions rather than shifting the settle-up into future deficits. Members asked about the settle-up process, certification timeline, the effect of attendance declines tied to immigration enforcement, and wildfire-related impacts, including Pasadena Unified’s $4 million special appropriation. On LCFF and necessary small schools, Finance proposed a 2.41% COLA and about $2.2 billion in additional LCFF funding for districts and charters in 2026-27, plus a $30.7 million ongoing increase to raise the necessary small schools allowance by 20%. The LAO supported funding the COLA but said the small-school increase was not tied to a specific cost study and could be redesigned to better target small districts, noting that only a fraction of very small districts would benefit. Questions focused on how small schools access supplemental and concentration grants and how attendance recovery programs are being implemented. The Department of Education said only 130 LEAs had reported attendance recovery so far, likely because it is a new program with compliance requirements, though interest appears to be growing. FICMAT then reviewed the fiscal health of local districts, reporting an uptick in qualified and negative certifications, though still far below Great Recession levels. It said declining enrollment, rising special education costs, and higher labor and insurance costs are the biggest fiscal pressures, and that some districts are using fiscal stabilization plans and staff reductions ahead of second interim reports. FICMAT also discussed wildfire impacts on Pasadena Unified and Los Angeles Unified, explaining that Pasadena’s $4 million state appropriation was based on an early post-fire assessment and that the district is being monitored with the county office of education. Members raised concerns about Pasadena’s leadership, special education staffing shortages, AB 218 sexual abuse litigation costs, insurance premium increases, and the need for stronger prevention and training measures. FICMAT said SB 848 and related policies address some of those concerns by strengthening standards, training, and reporting requirements.

Transcript Highlights:

• I mean, there's lots of small nonprofits and large nonprofits, 501(c)(3)s, C-4s, variations of that,
• Speaker and gentlelady, what my amendment does is it says that any nonprofit, an employee of a nonprofit
• It only includes an employee of that nonprofit or a board member of that nonprofit. Okay, so Mr.
• Gentlelady, I actually, in listening to the debate about the nonprofits, I actually do believe nonprofits
• There are some very large nonprofits and there are some very small nonprofits.

Bills: HB145 , HB164 , HR1 , HB20 , HB65 , HB66 , HB80 , HB306 , SB29 , SB37 , HB99 , HB206 , HB213 , HB270 , SB104 , SB193 , HB38 , HB254 , HB256 , SB58 , SB64 , HJM1 , HM7 , HM17 , HM4 , HM22 , HM23 , HM24 , HM26 , HM2 , HM16 , HM32 , HM13 , HM47 , HM20 , HM51 , HM1 , HM31 , HM35 , HM36 , HM46 , HM53 , HM54 , HM39 , HM29 , HM43 , HM59 , HM11 , HM14 , HM21 , HM34 , HM50 , HB253

Summary: The House opened with quorum, invocation, pledge, and several announcements recognizing guests and Early Childhood Day at the Roundhouse, including remarks supporting New Mexico’s universal child care efforts. The chamber then received and adopted a long series of committee reports, moving multiple bills forward, including HB 303, SB 96, HB 195, HB 279, HB 292 (with a Judiciary substitute), SB 30, HB 234, SB 35, SB 40, SB 43, HB 153 (with an Appropriations substitute), HB 253, HB 255, HB 287, HB 371 (with an Appropriations substitute), SB 143, HB 248 (with a Taxation and Revenue substitute), HB 309, SB 48, and enrollment/signing reports for memorials. The House also received Senate Judiciary Committee substitute for SB 41, which would eliminate the statute of limitations for certain sexual crimes and was referred to Judiciary. The main floor debate centered on House Judiciary Committee substitute for HB 99, a medical malpractice reform bill. Supporters said it would balance patient compensation with provider stability by capping punitive damages, raising the burden of proof for punitive damages, and limiting when such claims can be pleaded. Several members described the bill as the product of months of bipartisan work and argued it would help retain doctors, especially in rural areas. The House passed HB 99 on final passage by a vote of 16-3. The House also passed HB 66, expanding the health care provider loan repayment program, by 69-0; HB 306, addressing unexpected patient-facing facility fees, by 69-0; HB 38, adding wheelchairs to insurance coverage for certain prostheses-related benefits, by 69-0; HB 20, allowing Native American applicants to request a distinguishing designation on driver’s licenses and ID cards, by 66-3; and HB 253, preserving and regulating virtual education with an emergency clause, by 69-0. The chamber then took up HB 213, which expands optometrists’ scope of practice to include certain laser eye procedures. A proposed amendment requiring patients to sign a disclosure acknowledging that optometrists are not MDs or DOs and did not attend medical school was debated at length, with supporters framing it as informed consent and opponents calling it demeaning and unnecessary. The House tabled that amendment 35-19, and the underlying bill continued in debate at the end of the transcript.