Transcript Highlights:

• tribal labor relations ordinance, terms requiring the tribe to pay covered employees' state minimum wage

Committee: House Governmental Organization

Summary: The Assembly Governmental Organization Committee held an informational hearing on four Tribal-State Gaming Compacts and amendments, with Chair Blanca Rubio noting that no formal vote would be taken because the Legislature cannot amend the compacts. The hearing was framed as a briefing on AB 1527 and SB 864, the ratification bills for the agreements, and committee members were told the compacts reflect negotiations under the Indian Gaming Regulatory Act and recent Ninth Circuit guidance in Chicken Rancheria v. State of California. Governor’s Office Senior Advisor Matthew Lee explained the first compact, with the Sherwood Valley Indian Community of the Trinidad Rancheria, as a 25-year agreement consistent with recent compacts: up to 1,200 gaming devices at three facilities, worker protections through a tribal labor relations ordinance, minimum wage and anti-harassment/retaliation provisions, state regulatory cost recovery, and revenue-sharing tied to operations above 350 devices. He said the second item, a fourth amendment with the Picayune Rancheria of Chukchansi Indians, would extend the existing compact to preserve the status quo while the parties continue litigating in federal court, and would add the state’s standard off-track wagering appendix. Lee then described the first amendment with the Pinoleville Pomo Nation as an update to an older compact to align it with current law and recent agreements, including removal of environmental review and family law provisions, narrowing of tort requirements, revised revenue-sharing, and updated financial disclosure rules. For the first amendment with the Sycuan Band of the Kumeyaay Nation, Lee said the parties used a collaborative dispute-resolution process to remove Chicken Ranch-related provisions, narrow tort and facility definitions, extend the compact through 2016, and add a commitment to bargain in good faith over any future legalization of new class III gaming forms. Sycuan Chairman Cody Martinez testified in support, thanking the Governor’s Office and noting the tribe employs more than 3,000 people, most of whom are non-Indian, and that the tribe has operated Indian gaming since 1983. No opposition was recorded, and the committee adjourned after the presentations.

Transcript Highlights:

• What started as an emergency response has proven to be highly effective, increasing independence, access
• Our food banks reported significant increases in people seeking out food assistance.
• Labor costs have increased 106%.
• California increased the minimum wage since 2010 from $8 per hour to $16.50.
• And we have had increased program integrity measures.

Summary: The committee heard several bills focused on disability services, food security, veterans, aging services, and child care. SB 969 by Senator Reyes would make permanent the option for Californians with intellectual and developmental disabilities to receive certain regional center services remotely; supporters said remote services improve access, continuity, safety, and choice, and there was no opposition. The committee initially lacked a quorum, so action on the bill was delayed until later in the hearing, when it was moved on a 4-0 vote to Appropriations. SB 1025 by Senator Hurtado would create an Office of Food Security and Affordability to coordinate state food programs, improve CalFresh enrollment, reduce duplication, and support a 24-hour hunger hotline; supporters framed it as a coordination and strategic-planning measure, while some members questioned whether existing programs should be evaluated first and whether the bill needed stronger reporting and accountability. It passed 3-0 to Governmental Organization. The committee also heard SB 1052 by Senator Gonzalez, which would allow the State Council on Developmental Disabilities to appoint contingent authorized representatives so people with developmental disabilities are not left without support if a parent or other primary helper becomes unavailable. Supporters, including families and disability advocates, described emergencies, immigration enforcement fears, and service interruptions as reasons for the bill; members asked about the current approval and renewal process and whether the annual renewal requirement could be streamlined. The bill passed 3-0 to Appropriations. SB 1077, also by Senator Gonzalez, would require the Department of Social Services to prepare for future federal shutdowns by creating a communications and contingency plan for CalFresh disruptions and a state-backed emergency benefits mechanism; supporters cited the 43-day federal shutdown and delays in benefits, and the bill passed 4-0 to Appropriations. Other measures discussed included SB 1201 by Senator McNerney, the No Hungry Heroes Act, which would seek waivers and direct referrals to protect veterans from federal SNAP changes and job-search-related income calculations; it passed 3-0 to Military and Veterans Affairs. SB 1261 by Senator Laird would let aging and disability resource connections continue operating during partner transitions so people do not lose access to “no wrong door” services; it passed 3-0 to Appropriations. SB 1110 by Senator Becker would update child care subsidy funding and reimbursement structures to better reflect direct family services and stabilize providers; the author said a provision tied to the budget would be removed, and the bill passed 4-0 to Education. Finally, SB 991 by Senator Menjivar was presented to improve how abuse and neglect findings in residential care facilities for the elderly are categorized in the licensing database, so serious abuse is not lumped together with lesser violations; testimony described examples of sexual assault and restraint being recorded as generic residents’ rights violations.

Transcript Highlights:

• Those rules may not render the use of the materials infeasible or increase the cost by more than 10%
• and increasing.
• Ultimately, again, increasing lengths of project review and application timelines.
• It also increases the percentage of total project costs from 20 to 50 for the purpose of determining
• loan award amounts and increases the loan repayment timeline to no more than 48 months rather than 36

Summary: The committee heard public testimony on several housing-related bills. On SB 6054, Senator Hunt’s bill to prohibit common-interest community rules from blocking wildfire home-hardening materials, staff explained that HOA and condominium governing documents could still impose reasonable aesthetic rules, but not ones that make fire-resistant materials infeasible or more than 10% costlier. The sponsor described the bill as a response to HOA requirements for less fire-resistant roofs. Testifiers generally supported the goal but objected to the 10% cost cap, saying it could limit community-specific design choices and create unintended conflicts with aesthetic standards. The committee also heard SB 601 on scissor stairs in the building code. The sponsor and supporters from Futurewise, architects, and housing advocates said scissor stairs could make mid-rise and high-rise housing more efficient, reduce corridor space, and improve unit layouts without sacrificing life safety. They noted the design is used in places like Vancouver, B.C. and in some Washington venues, and argued the bill would help lower costs and increase housing supply. No opposition was presented during the hearing. For SB 6015 on permit-ready residential plans, staff said L&I would create a process for publishing approved plans for factory-built housing and certain small residential types, with local governments required to approve applications using those plans on qualifying lots starting in 2027. Supporters from builders, architects, Habitat for Humanity, and Sightline said statewide standard plans could reduce duplication, speed permitting, and help scale factory-built and potentially site-built housing. Counties and L&I were supportive in concept but raised concerns about mandating local adoption of model ordinances and about whether the bill should include site-built plans as well. The committee also heard SB 5470 on detached ADUs outside urban growth areas, with supporters saying it would help rural homeowners and intergenerational living, while Futurewise opposed the bill as written and sought tighter density, lot-size, and metering limits. Finally, the committee heard SB 5729, a permit-streamlining bill that would deem completeness for applications prepared by licensed professionals and limit local governments to three review cycles. Builders and business groups supported it as a way to reduce delays and costs, while counties, cities, and Futurewise argued it could lead to more denials, less communication, and unintended liability concerns. In executive session, the committee adopted the proposed substitute for SB 5884 and moved it forward with a do-pass recommendation to Ways and Means.

Transcript Highlights:

• </c><02:36:38.319><c> transparency,</c> by increasing transparency, by increasing transparency, strengthening
• 25.120><c> reporting</c> sharing, and increases reporting sharing, and increases reporting requirements
• </c><04:48:51.680><c> administrative</c> families by increasing administrative families by increasing
• Wage growth is slowing alarmingly.
• </c> president of the United States is waging president of the United States is waging an<07:57:47.280

Transcript Highlights:

• It also keeps students interested in school, improves attendance, and increases graduation rates.
• </c><00:06:05.120><c> graduation</c> attendance, and increases graduation attendance, and increases graduation
• </c> changes in the design actually increase changes in the design actually increase space<03:40:12.560
• </c><04:48:05.840><c> I</c><04:48:06.160><c> urge</c> times and wage data are public.
• I urge times and wage data are public.

Transcript Highlights:

• And so we want to increase awareness for all of our school communities. ...every adult in every young
• And so we want to increase awareness for all of our school communities. as if people take it.
• This underscores the importance of increased awareness and investment in research and treatment.
• Delays in diagnosis are associated with larger tumors, increased risk of metastases, and increased risk
• It is crucial that we raise awareness and increase public knowledge of sarcoma.

Transcript Highlights:

• If this bill does not pass, wait times will increase and patient outcomes will worsen.
• This is likely to reduce any revenue previously generated from this increased fee.
• Allowing patients to test in their homes expands access for rural and working Californians, increases
• Research from the CDC shows that increased screening has reduced cervical cancer incidence and deaths
• Our city of Los Angeles' temporary emergency outdoor dining program increased our seating capacity by

Summary: The committee heard AB 2575 on health care AI guardrails, with the author and supporters from the California Nurses Association and labor groups arguing that AI should support, not replace, clinical judgment. They said the bill would require basic disclosures about AI tools, protect workers from retaliation for overriding AI in good faith, and prevent developers or employers from shifting liability to frontline clinicians. Opponents including the California Medical Association, CalChamber, hospitals, and other health care organizations argued the bill would add costs, create uncertainty, and discourage useful AI applications. Committee members discussed bias in health care and accepted amendments narrowing the disclosure provisions; the bill was moved with a 7-1 vote and re-referred to Labor, Public Employment, and Retirement. AB 634 would ban the manufacture, sale, and distribution of products containing tianeptine, described by supporters as “gas station heroin.” The author and law enforcement supporters said the substance is dangerous, easily accessible, and can cause opioid-like addiction, while no opposition came forward. The committee also heard AB 1607 to extend the Maddy EMS Fund, which reimburses emergency providers for uncompensated care. Supporters said the fund is essential to keeping emergency departments staffed, especially amid expected coverage losses; an ACLU representative opposed the funding source because it relies on criminal and traffic fines. Members supported the need for the fund but raised concerns about the fairness and long-term stability of the revenue source, and the bill advanced on a 8-0 vote. AB 1906 would require coverage of at-home cervical cancer screening tests without cost sharing, and the author said the bill would improve early detection and reduce disparities, especially for rural and working Californians. Support came from Planned Parenthood, Health Access, and several health and labor organizations; insurers said they appreciated the amendments and were reviewing their position. The committee adopted amendments aligning the bill with clinical guidelines and passed it 6-0 to Appropriations. The committee also took up AB 2247, the Thrive Act, to create a pilot program for trauma and mental health services for youth affected by gun violence in four counties. Supporters described barriers survivors face in accessing counseling, while members questioned the narrow focus on gun violence, the choice of counties, documentation requirements, and whether the program should instead be housed in victim compensation. The bill passed 8-0 to Judiciary. Later, AB 2531 would expand California’s uncompensated care program so veterans denied abortion care through the federal VA system could receive coverage in California, and would add an abortion resources link for veterans. Supporters framed it as filling a gap created by federal restrictions; opponents argued state funds should not support abortion. Members noted the VA already provides many reproductive services but not this one, and the bill passed 7-0 to Military and Veterans Affairs. The committee also heard AB 1915, which would modernize restaurant facility rules and create a self-certification pathway for some equipment installations. Restaurant and business groups supported the bill as a way to reduce costly delays, while the Contractor State License Board opposed the self-certification provision over safety and inspection concerns. Members generally supported streamlining but echoed public safety concerns and indicated further work was needed.

Transcript Highlights:

• This amendment aims to find a $100 tax increase to $200. A $100 tax increase to $200.
• With increased costs to projects, and that's what the big concern is.
• The mitigation offsets, according to MnDOT, increase project costs between 5 to 30 percent.
• We have an increase in maintaining and building projects, and this is a huge concern.
• Increased loneliness also correlates, unfortunately, with increased deaths.

Transcript Highlights:

• It can lead to increased or 90% mortality rate in cattle that have no exposure. to the disease.
• Those hatcheries, those processing plants, and those wages bring in. and $2.4 billion to the state.
• And so the northern climate seems to increase. production and breeding and makes animal husbandry much
• Increasing cost and also increasing land fragmentation make it really difficult for for our members to
• However, we face increasing challenges ranging from competitive advantages in transportation logistics

Committee: House Agriculture & Livestock

Transcript Highlights:

• Since 2015, Chinese companies have increased Their presence and influence throughout Panama.
• Volumes, with an 8% increase.
• How effective do you think investments in increasing that fresh water store are?
• The regular toll revenue has increased in terms of the canal.
• However, what has really increased is the special revenue they get from various fees and from this.

Committee: Senate Commerce, Science, and Transportation Committee

Transcript Highlights:

• And then we increased it to 1.4.
• Expanding transmission will create family wage jobs across Washington while also preparing us for future
• This bill will increase those fires.
• It's a reasonable increase.
• The downside is it's just yet one more fee increase that tends to fly in the face of public affordability

Bills: SB6061 , SB6234 , SB6176 , SB6335 , SB6047 , HB2235 , HB2272 , HB2340 , HB2543 , HB2554 , HB2632 , HB2464 , HB2619 , HB1376 , HB1796 , HB2091 , HB2249 , HB2254 , HB2353 , HB2431 , HB2441 , SB5808 , SB5949 , SB6006 , SB6260 , SB6297 , SB6351 , SB6354 , SB6355 , HB2124 , HB1069 , HB2104 , HB2624

Keywords: tourism, self-supported assessment, funding, statewide promotion, economic development, sewage, grinder pumps, residential buildings, regulation, construction, vehicle registration, enforcement, renewal, transportation, state law, state commission, infrastructure, traffic safety, responsibilities, state capital projects

Transcript Highlights:

• Beginning January 1st of '27, any increase in aggregate value of personal property for the current year
• Beginning January 1st of 27, any increase in aggregate value of personal property for the current year
• I believe that the increase in property tax should be treated separately in order to benefit our taxing
• No, this is a positive net increase of revenue to the state.
• “That minimum-wage convenience store employee, that bartender, they don’t have time to focus on the people

Summary: The House convened with prayer and the Pledge of Allegiance, approved the prior day’s journal by a 134-0 roll call vote, and then moved through a series of introductions recognizing guests and student groups at the Capitol, including Turning Point USA chapters, CASA volunteers and staff, JAG students, university groups, nursing students, and several legislative interns. The chamber also handled a point of order about an unauthorized prop in the room, which was removed. The first major bill taken up was House Bill 1766, dealing with personal property tax treatment and new construction calculations. Supporters argued it would treat personal property more like real estate under Hancock-style limits and provide fairness to taxpayers, while opponents warned it could reduce revenue for taxing districts. After debate, the House passed HB 1766 by a vote of 94-50. The House then considered House Committee Substitute for House Bill 2989, a major gaming measure that would criminalize illegal gaming machines, create a regulated framework for video lottery terminals, give local governments an opt-out, and expand enforcement authority for the Attorney General and prosecutors. Members debated whether the bill was a needed enforcement tool or an inappropriate expansion of gambling, with concerns raised about addiction, local control, revenue distribution, and whether the bill should have gone to Fiscal Review. A motion to refer the bill to Fiscal Review failed 69-44, and the bill itself passed 83-66 with one present. The chamber next took up House Committee Substitute for House Bill 2014, the supplemental appropriations bill. The sponsor said it provided just over $3 billion in additional authority, including tax refund authority, disaster relief, St. Louis tornado recovery funding, and major MoDOT funding, along with other smaller items. Members from both parties supported the bill, while also noting concerns about reliance on supplementals and the need to budget more accurately in the future. The House adopted an amendment reducing some general revenue authority, then adopted the bill and perfected and printed it. The meeting ended with announcements, including a notice that the Super Committee on Tourism would meet immediately in Hearing Room 6.

Transcript Highlights:

• It's also tasked with advocating for policies that increase the sense of belonging and decrease isolation
• It's also tasked with advocating for policies that increase the sense of belonging and decrease isolation
• the state, local, tribal, territorial partners, we would integrate our National Guard forces to increase
• bill and for continued collaboration to build a system that supports both economic growth and family-wage
• This indexing indicated an increase in searches for the same.

Summary: The committee held public hearings on several bills. HB 2462 would direct the governor to create rules for countering threats from unpiloted aircraft systems and authorize National Guard support for law enforcement in certain circumstances; the prime sponsor and National Guard witnesses said it would improve coordination for events like the FIFA World Cup, while one testifier supported it with amendments related to law enforcement authority, data privacy, and a web portal. HB 2401 would create a Washington State Boys and Men’s Commission, contingent on non-state funding through 2029; supporters described concerns about boys’ and men’s mental health, suicide, loneliness, education, and workforce outcomes, while some asked that physical health and fatherhood be more explicitly addressed. HB 2198 would expand and standardize statewide credential and permit reporting, require agencies to publish timelines and fee refunds for missed deadlines, and consolidate reporting; the governor’s office, business groups, labor, ports, and the Department of Health testified in support, citing faster processing, predictability, and economic benefits. HB 2419 would extend Address Confidentiality Program eligibility to administrative law judges and certain Office of Administrative Hearings staff; OAH, county officials, and county clerks supported the bill, citing threats and safety concerns, and some asked to include county clerks as well. The committee then took executive action on HB 2210, HB 2205, and HB 2249. It adopted an amendment to HB 2210 preserving existing ranked choice voting systems and advanced the bill 4-2 with one excused. It adopted an amendment to HB 2205 making threats against sports officials, coaches, or participants involved in wagered events a Class C felony and barring offenders from future wagering, and advanced the bill 5-1 with one excused. HB 2249, reclassifying certain WATEC employees performing network and security duties, was advanced unanimously 6-0 with one excused.

Transcript Highlights:

• cost of bingo supplies, property taxes, and wages.
• It increases the prize amount used to calculate prize fees, and it allows the creation of a nonprofit
• HB 2820 would relieve financial strain on charitable bingo organizations by increasing the operating
• So some of that may just involve increased costs. So each location requires their own license?
• These logistical complications have come with increased costs that ultimately have been passed on to

Bills: HB 1301 , HB2278 , HB2776 , HB2820 , HB3848 , HB3920 , HB4172 , HB4215 , HB4284 , HB4285 , HB4463 , HB4517 , HB4690 , HB4765 , HB4766 , HB4767 , HB4768 , HB4769 , HB4773 , HB4830 , HB5506

Committee: House Licensing & Administrative Procedures

Summary: The Committee on Licensing and Administrative Procedures met with a quorum present, corrected the minutes from April 8, and then took up a long list of pending bills, most of which were reported favorably or left pending after hearing testimony. Early action included HB 1764 (accounting practice for certain out-of-state CPAs), HB 1788 (continuing education for barbers and cosmetologists on recognizing and assisting victims of sexual assault, domestic violence, and human trafficking), HB 2204 (land surveyor regulation), HB 2885 (local option elections on alcohol sales), HB 2996 (gambling offense definitions and prosecution), HB 3250 (real estate appraisals and appraisal management companies), HB 3352 (driver education on work zones), HB 3385 (farm winery permit), HB 3756 (powers of certain nonresident sellers’ permit holders who also hold a winery permit), HB 3816 (cruelty to livestock animals), HB 3913 (real estate licensing), and HB 3928 (electronic notice of towed vehicles), all of which were advanced with unanimous or near-unanimous votes. Several of these bills were reported with committee substitutes, and some were also sent to the Committee on Local and Consent Calendars. The committee then heard testimony on HB 2278, which would legalize limited home distilling of spirits for personal or family use and add honey as an approved ingredient; supporters framed it as a consistency and freedom issue, and the bill was left pending. HB 3920, a TDLR workforce/CTE bill, and HB 1301, which would allow beer or malt beverages to be sold at certain wineries with on-site restaurants, were also laid out and left pending after discussion. HB 2776, aimed at tightening massage therapy licensing restrictions for people convicted of sexual and trafficking-related offenses and strengthening TDLR enforcement, and HB 3848, which would allow electronic filing of elevator and escalator inspection reports, were both heard and left pending as well. A major portion of the meeting focused on alcohol-related bills. HB 4215 would place delivery network companies under a statewide TDLR regulatory framework; Favor Delivery supported it, and it was left pending after the committee substitute was withdrawn. HB 4172 and HB 2820 would raise bingo reserve limits and update charitable bingo rules; supporters from veterans and nonprofit groups argued the changes would help charities, but both bills were left pending after the substitutes were withdrawn. HB 4463, a broadly supported bill allowing contract brewing and alternating brewery proprietorships, was also left pending. HB 4284 would remove the “excessive discount” prohibition in alcohol sales, HB 4285 would allow airlines to store alcohol within five miles of an airport in the same county, HB 4517 would create a complaint process for Texas distillers not paid by wholesalers, and HB 4773 would let breweries and brewpubs transport their own beer between facilities; HB 4773 drew the most debate, with supporters citing efficiency and opponents warning about unintended consequences and possible effects on the three-tier system, but it too was left pending. The committee also heard and left pending a series of TDLR cleanup bills and other measures, including HB 4765 through HB 4769, HB 4830 on service contracts for lease vehicles, HB 5506 giving civil immunity to ringside physicians at combative sports events, and HB 4690 on gasoline vapor pressure compliance. The meeting ended after all business was completed and the committee adjourned.

Transcript Highlights:

• competitive awards program for employers to get training for their employees, talent enhancement, increased
• district that can't even go to Starbucks right now with the monies that they're making and the minimum wages
• that they're making that we won't increase.

Bills: HB316 , HB549 , HB646 , HB752 , HB824 , HB873 , HB1129 , HB1157 , HB1170

Committee: House Appropriations

Summary: The House Appropriations Committee met on April 22 and first considered Chairman Beaulieu’s House Bill 646, a constitutional amendment limiting the amount of State General Fund money that may be appropriated in a fiscal year. After adopting a set of amendments creating the Louisiana Income Tax Elimination Fund and making conforming changes, the committee reported the bill favorably as amended. The companion bill, House Bill 824, which establishes the growth limit formula based on CPI, medical CPI, and population change, was also amended and reported favorably as amended. Supporters framed both measures as a way to keep spending within recurring revenues and create a path toward reducing or eliminating the state income tax. The committee then reported favorably as amended House Bill 1157, creating the Louisiana State Infrastructure Fund to help finance infrastructure-related projects, with testimony that it would leverage private and federal dollars and initially focus on rail, port, road, and bridge projects. House Bill 316, which provides a framework for student literacy reforms for grades four through eight, was presented as having no new cost because the Department of Education said the work was already covered by existing resources; it was reported favorably. House Bill 549, creating the Bayou Growth Opportunity Workforce Program to provide employer-based training grants, also received support from business groups and was reported favorably as amended. House Bill 1129, dealing with the sale of state-owned surplus movable property, drew support from Louisiana auctioneers who argued local firms should be allowed to bid on the state’s auction contract instead of relying on an out-of-state vendor; it was reported favorably. House Bill 873, which would fund pursuit intervention technology through a $2 driver’s license fee, generated significant concern about adding fees and whether the money should instead come from existing budgets. After discussion of the proposed technologies and training, the committee deferred the bill voluntarily to work on alternatives, including a possible sunset and other funding options. Finally, House Bill 752, which would change the timing and duration of regular legislative sessions by joint rule, was reported without action after members noted the revised fiscal note showed a decrease in state general fund expenditures. The meeting then adjourned.

Transcript Highlights:

• We should be doing everything we can to increase... Access to reading.
• In particular, we want to ensure that your bill emphasizes high-wage jobs in the areas of nuclear, electrical
• This described Texas's increasing wildfire risk.

Bills: SB34 , SB75 , SB330 , SB1535 , SB18 , SB 18 , SB 34

Committee: House State Affairs

Transcript Highlights:

• This not only causes ...psychological harm, but also increases recidivism rates, making it more likely
• in communities where they share their values, and it's costing them the ability to earn a livable wage
• the fact that research also shows that holding 17-year-olds in the adult justice system does not increase

Bills: HB1511 , HB1831 , HB1988 , HB2147 , HB2234

Committee: House S/C on Juvenile Justice

Transcript Highlights:

• It means police and fire trying to find wages for those, infrastructure.
• less than a minute, but the majority of questions that were issued in the analysis ask if the bill increases
• Further, I'll read from this note: "Expanding this tax credit to corporate entities further increases

Committee: House House Taxation & Revenue

Transcript Highlights:

• and Means Committee and I commend wage and Means Committee and I commend wage and Means Committee and
• uh from 1 million mobile was increased uh from 1 million mobile was increased uh from 1 million to 2
• that by 7.5 million and we increased that by 7.5 million and we increased that by 7.5 million which
• which are going very well we increased which are going very well we increased them by $1 them by $1
• for percentage number of increased for percentage number of increased for grades it has increased I

Bills: HB 9 , HB 22 , HB 908 , HB 1392

Transcript Highlights:

• What I will point out is that we also saw revenues continue to increase.
• We need our local assistance funding through our state arts agency increased.
• The increase is needed to protect against potential fee exposure.
• I'm also here requesting an additional increase for that.
• We understand there were fee increases about two years ago and whether any increases would need to take

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.