Transcript Highlights:

• We have increased the maximum number of children served annually from 294,000.
• Maximum number of children served annually from 294,100 in 2019-20 to more than 366,700 per month currently
• And finally, families and providers must share power in shaping this system.
• But given the outputs we're seeing... ...furthest away from the cost of care.
• My name is Odessa Powers, and I'm an immigration attorney with the Children's Law Center.

Summary: The committee heard a lengthy budget hearing focused on child care, child welfare, and immigration-related services, with most of the discussion centered on child care funding, slot utilization, and rate reform. Department of Social Services officials said the Governor’s budget would provide $6.8 billion for child care programs in 2026-27, including $11.5 million in Prop. 64 funds for mini-grants to licensed facilities affected by 2025 disasters. They also described federal CCDF and Prop. 64 revenue reductions that would reduce general child care funding by about 4,176 slots, while emphasizing that the cuts should not affect currently enrolled children. The LAO supported aligning spending with lower revenues and asked for more detail on the disaster grant program. Members questioned why so many awarded slots remain uncontracted or unfilled, and DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment work. One senator criticized the repeated explanation, argued unspent funds revert to the General Fund instead of being redirected to child care, and urged shifting more funding from contract slots to vouchers and increasing flexibility for infrastructure and expansion costs. DSS said it is exploring more flexibility, better readiness screening, and quicker redistribution of relinquished slots. The committee also discussed the Emergency Child Care Bridge program, with DSS saying it can redistribute funds among counties to avoid disenrolling children. A second panel addressed the state’s broader commitment to expand child care and move toward a single rate structure. DSS reported that since 2021-22 nearly 125,000 new slots have been awarded across CCTR, CAPP, CMAP, and the Emergency Child Care Bridge program, bringing monthly service levels to more than 366,700 children. The department and CDE described progress on rate reform, including completion of the alternative methodology and joint recommendations from the labor-management committee on a single-rate framework. County and provider testimony emphasized persistent unmet need, especially for infant and toddler care, and argued that current reimbursement disparities between CDSS-funded programs and state preschool create inequities and discourage expansion. Stanislaus County Office of Education said rate differences can materially affect local program revenue and staffing, while Parent Voices California described the child care system as difficult to navigate and inequitable, especially for Black families and survivors of domestic violence. The California Budget and Policy Center argued that only a small share of eligible children are served, that Universal TK has concentrated investment in school-based settings, and that providers are still paid far below the cost of care. Members pressed the administration for deadlines on automation and implementation of the single-rate structure, and DSS said some work can proceed before collective bargaining concludes, though policy decisions are still needed. The committee also reviewed several trailer bill proposals. For the COLA, DSS proposed applying the 2026-27 increase through cost-of-care-plus payments, but acknowledged it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge from the initial calculation; the LAO recommended making the COLA increase uniform across child care and state preschool programs. On the alternative methodology survey, DSS proposed replacing the market rate survey with the federally approved alternative methodology and aligning the timing with the federal CCDF state plan cycle. On licensed family child care homes, DSS proposed limiting temporary absences to 20% of monthly care hours and allowing more flexibility for medical appointments, jury duty, training, and union activities. On excessive unexplained absences, DSS proposed a statutory definition to align state policy with federal rules allowing disenrollment after 30 days of unexplained absences. The committee also discussed a proposal to require contractors to collect family fees directly so the full voucher value reaches providers, with DSS saying it is working with Riverside County on implementation and CDE asking that the same policy apply to state preschool. Finally, the committee reviewed an Early Childhood Policy Council reappropriation and reporting proposal, with DSS explaining that prior funds were underused because participation costs are hard to estimate and that additional staffing and contractor support would be needed for the expanded annual report requirements.

Transcript Highlights:

• We provide health organizations with AI-powered tools and products to make workflows more efficient,
• You know, we have a physician in the loop reviewing the outputs of all of these for accuracy.
• It's just what you do with the output of that.
• And I've seen firsthand that our current laws are very powerful tools for prosecuting people who use
• You know, the need to review the AI outputs, correct errors, and that sort of thing.

Summary: The joint informational hearing by the Assembly Health and Privacy Committees focused on generative AI in health care, with opening remarks emphasizing both the promise of improved care and the risks around privacy, bias, workforce impacts, reimbursement, and liability. Members and witnesses repeatedly stressed that AI should augment clinicians rather than replace them, and that California has a role in shaping responsible adoption. The first panel featured health systems and developers describing current uses such as ambient scribes for physicians and nurses, imaging triage, maternal-fetal risk prediction, and administrative automation. Speakers from Cedars-Sinai, Kaiser Permanente, Penguin AI, and Google highlighted efficiency gains, reduced clinician burnout, faster treatment, and some reported patient-safety benefits, while also noting the need for human review, governance, and ongoing monitoring. Committee members pressed the panel on bias, especially for multilingual patients, women of color, and Medi-Cal populations, and on whether predictive tools could worsen disparities or drive unnecessary interventions such as C-sections. Witnesses said tools must be tested in real-world settings, with humans in the loop and outcomes tracked by demographic group. They also discussed the legal landscape, with concerns that liability may fall more on hospitals and physicians than on developers, and that clearer rules may be needed for clinical, clinical-adjacent, and administrative uses. Several speakers argued that administrative uses like prior authorization and coding are lower-risk and ripe for automation, while clinical applications require much stronger safeguards. The second panel shifted to broader policy and equity issues. The California Health Care Foundation described early AI adoption in the safety net, including a Los Angeles County homelessness-risk model and AI tools supporting community health workers, and said safety-net providers want guidance on privacy, liability, safety, bias, and workforce impacts. Dr. Ziad Obermeyer described research showing racial bias in widely used risk algorithms and argued for accountability, access to data under strong protections, public-sector leadership, and partnerships to steer AI toward better outcomes. Dr. Michelle Mello said most organizations lack strong governance, that monitoring is difficult and costly, and that states could require AI governance structures as a condition of licensure. The discussion closed with calls for clearer standards, better data access for evaluation, and policy approaches that protect patients while allowing beneficial AI to spread beyond large health systems.

Transcript Highlights:

• Witness: The amount that was allocated to this project this year was the maximum amount.
• Representative Freeman, now that this has come from the conference, what is the maximum fine now?
• It is the maximum is... Hold on one second.
• The maximum is, hold on one second, $50,000 or 15% of the assessed value.
• Martinus creates and provides for the Louisiana Energy and Power Authority Municipal Utility Task Force

Bills: HR310 , HR314 , HR316 , HR317 , HR321 , HR275 , HR276 , HR279 , HR282 , HR286 , HR289 , HR292 , HR295 , HR302 , HR319 , HCR112 , HR307 , SCR59 , SCR61 , SCR62 , SCR68 , SCR69 , SCR70 , SCR54 , SCR55 , SCR64 , SCR75 , HCR79 , HCR104 , HB75 , HB410 , HB719 , HB750 , HB944 , HB1098 , HB1220 , HB1252 , HB359 , HB210 , HB468 , HB1117 , SB382 , HB368 , HB552 , HB732 , HB870 , HB1236 , SB29 , SB42 , SB43 , SB149 , SB208 , SB274 , SB300 , SB312 , SB387 , SB389 , SB401 , HR74 , HB998 , HB901 , HR20 , HCR65 , HCR71 , HCR98 , HB284 , HB306 , HB341 , HB366 , HB393 , HB458 , HB577 , HB603 , HB605 , HB614 , HB625 , HB646 , HB733 , HB752 , HB773 , HB798 , HB911 , HB955 , HB996 , HB1035 , HB1069 , HB1113 , HB1140 , HB1180 , HB1191 , HB1240 , HB1255 , SB82 , SB89 , SB97 , SB123 , SB237 , HB36 , HB42 , HB74 , HB119 , HB159 , HB258 , HB259 , HB302 , HB414 , HB459 , HB848 , HB956 , HB1017 , HB1028 , HB1095 , SB217 , SB283 , SB469

Keywords: oil and gas, orphan wells, inactive wells, shut-in wells, marginal wells, plugging and abandonment, well decommissioning, site remediation, site restoration, Oilfield Site Restoration, OSR program, financial security, bonding, taxpayer liability, public liability, offshore wells, onshore wells, coastal erosion, Department of Conservation and Energy, natural resources

Transcript Highlights:

• What this does is flip the inputs and the outputs.
• What this does is flipping the inputs and the outputs.
• We've diversified power in different levels: federal, state, and local.
• We've also diversified power by having three branches of government.
• And a certain power company related to Lava Ridge is not on here.

Transcript Highlights:

• I think our district was very hard hit by the loss of the power plants.
• I'm hoping that our community will pursue other power generation sources, including gas-fired power plants
• All of the power plants were open, including El Segundo and the power plants in Kayenta. ...in Kayenta
• I was the mayor when the mine and the power plant shut down.
• On behalf of the Navajo Nation, we own 7% of the Four Corners Power Plant.

Committee: House Economic & Rural Development & Policy Committee

Transcript Highlights:

• </c> &gt;&gt; So, the first question was total output.
• </c> together in order to increase our output together in order to increase our output in<02:53:20.320
• From a high level, you talked about output volume, you know, 2013 to 2025.
• </c> Powers Logging out of Douglas. Powers Logging out of Douglas.
• </c><03:10:40.680><c> I'm</c> So, that's what probably powers I'm So, that's what probably powers I'm

Committee: Joint Select Federal Natural Resource Management Committee

Transcript Highlights:

• a child would come with a risk of court-imposed penalties for the online service, giving them a powerful
• a child would come with a risk of court-imposed penalties for the online service, giving them a powerful
• AI-powered chatbots are everywhere.
• That's effectively the same output, right? That's effectively the same output, right?
• Please today to present AB 1150, which, if approved, would increase the daily maximum user fee that airports

Committee: House Privacy and Consumer Protection

Summary: The committee heard several privacy and consumer protection bills. AB 1405 by Assembly Member Bauer-Kahan would create a state registry of AI auditors and set baseline transparency and ethics requirements for auditors, with the author accepting committee amendments. Supporters said the bill would help establish independent oversight and consumer trust in AI, while some members questioned whether government should be creating the registry rather than industry groups and raised concerns about unclear standards. The bill passed the committee on a 5-1 vote and was sent to Appropriations. AB 2 by Assembly Member Lowenthal would impose enhanced financial penalties on large social media companies when their negligence causes harm to children and teens. The author and supporters, including grieving parents and Common Sense Media, argued that platforms know their products can contribute to addiction, self-harm, drug sales, and other harms but have not done enough to protect young users. Opponents from TechNet, EFF, CCIA, and CalChamber warned the bill was vague, could chill speech, invite broad litigation, and raise First Amendment and Section 230 concerns. Several members expressed support for the goal but asked for changes, especially around the private right of action and clearer standards; the bill passed 6-0 to Judiciary. AB 410 by Assembly Member Wilson would expand California’s bot disclosure law so bots must identify themselves up front and not misrepresent themselves as human. Supporters said the bill would reduce deception in online interactions and help vulnerable users, while some members worried it was too broad and could affect ordinary automated responses or out-of-state users. After amendments and discussions, opposition softened or withdrew, and the bill passed 9-1 to Appropriations. AB 1327 by Assembly Member Aguirre-Currie would let consumers cancel home improvement contracts by email instead of only by mail, with a phone-number assistance requirement added in committee; the Contractors State License Board withdrew opposition, and the bill passed 11-0 to Judiciary. The committee also heard AB 566 by Assembly Member Lowenthal, which would require browsers and mobile operating systems to support one-step opt-out privacy signals across online businesses, but the transcript cuts off before testimony or a vote on that bill.

Transcript Highlights:

• , we would just review it, give them our review of it, they'd go and produce another output, we would
• They'd go and produce another output, we would review it.
• Our next steps are mostly hinged upon the outputs that the consultant groups are going to be presenting
• Our next steps are mostly hinged upon the outputs that the consultant groups are going to be presenting
• You take one of them away, it gives monopoly power to the one that's remaining.

Committee: Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and Jacobs described the study’s phases, including current work on geology, infrastructure risk, and a total logistics cost model. They explained that the study is examining how freight now moved by barge—especially wheat, fertilizer, and wood—could shift to rail and roads, and they outlined several scenarios ranging from no-dam future conditions to new unit-train terminals, short-line rail options, and a combined “many solutions” scenario. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could estimate transportation effects if grain volumes decline. The presenters said the study assumes current production levels continue, does not model irrigation changes or broader farm-economics impacts, but does account for transloading costs and can estimate transportation impacts under different volume assumptions. WSU’s independent review team said the model has improved substantially but still needed refinement, especially in routing, road data, and spatial detail, and that stakeholder engagement had been strong though delayed by model development. No votes were taken. The committee then received a presentation on the alternative sidewalk funding study. Staff and consultants said the study is exploring ways local governments could sustainably fund sidewalk maintenance, repair, and new construction, using a statewide survey, interviews, national research, and case studies in eight jurisdictions. They noted sidewalks are important for pedestrian safety and connectivity, but there is no dedicated funding source in Washington, and existing grants and local revenue tools are highly competitive or limited. The consultants highlighted sidewalk fees or utility-style charges as the most promising option to study, while a parcel tax was largely set aside because of state property-tax uniformity concerns. Members asked whether the study would duplicate existing funding or add to current taxes, and how a sidewalk fee would be collected; the consultants said the goal is to expand local options, not mandate adoption, and that fees would likely be billed through utilities rather than property taxes. A preliminary draft report is due December 15, with a final report due in mid-June. Next, staff gave a brief update on the ocean-going vessels study, which is examining shore power and emissions rules for vessels at berth. The presenter explained that federal Clean Air Act rules and California waiver authority create legal limits on how far Washington can go if it wants to adopt similar standards, and that deviations from California’s approach can increase litigation risk. The report will summarize stakeholder outreach and will be presented in draft form at the next JTC meeting. Finally, county engineers from Chelan and Douglas counties began a presentation on county transportation challenges, with the association’s director emphasizing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs. The county presentation was only beginning when the transcript ended, and no committee action or votes were recorded.

Transcript Highlights:

• They know what they need to do to achieve that release, and there's a 24-month maximum of on-time payments
• So with that, right, we have to check for bias on both the inputs and outputs the insurer does.

Committee: Senate Banks

Summary: The Senate Banking Committee met for its first meeting of the session, with Chair James Sanders Jr. and Ranking Member George Borrello opening the hearing and noting a collaborative approach to committee work. The committee first considered and advanced several bills: S.114, which would prohibit state-chartered banks from investing in or financing private prisons; S.2040, which would require money transmitters to provide a consumer warning; S.5473, which would require disclosures in advertisements involving virtual tokens; and S.8406, Sanders’ bill to amend the community bank deposit program. Each bill was moved and approved by committee, with S.8406 passing unanimously. The committee then heard from Caitlin Azar, Acting Superintendent of the Department of Financial Services (DFS), who outlined her background and DFS priorities. She emphasized affordability, consumer protection, stability, and innovation, and discussed DFS-led initiatives in the governor’s budget, including Banking Development Districts, non-bank mortgage CRA regulations, CDFI investment guidance, and consumer restitution. She also said DFS plans to issue buy-now-pay-later regulations in February, expand student lending protections and borrower education, and continue work on insurance affordability, including auto and homeowners insurance reforms, anti-fraud efforts, and discounts tied to telematics, dash cameras, and safe-driving courses. Members questioned Azar about the balance between regulation and access, especially in crypto, buy-now-pay-later, and insurance markets. She said DFS aims to preserve competition while preventing discriminatory or excessive practices, and described existing oversight of virtual currency, including coordination with federal regulators. Another member asked about AI in auto insurance underwriting and pricing; Azar said DFS requires transparency, bias review, governance controls, and consumer recourse, and that credit scores cannot be used to deny or increase rates. The chair also raised concerns about foreclosure in Southeast Queens, improving BDD paperwork and data collection, and increasing the number of state-chartered credit unions. Azar said DFS is working on process improvements, community input, and maintaining open communication with the committee, but no additional votes or formal actions were taken during the DFS hearing.

Transcript Highlights:

• , we would just review it, give them our review of it, they'd go and produce another output, we would
• Our next steps are mostly hinged upon the outputs that the consultant groups are going to be presenting
• Our next steps are mostly hinged upon the outputs that the consultant groups are going to be presenting
• You take one of them away, it gives monopoly power to the one that's remaining.
• Right now, they get their onboard power from shore power, and this is having them plug in instead of

Committees: Joint Transportation , Joint Joint Transportation Committee

Summary: The committee first heard an update on the Joint Transportation Committee study of transportation impacts if the Lower Snake River dams were removed. WSDOT and its consultant described the study as focused on transportation mitigation, not on whether dam removal should occur. They outlined geologic risk work on drawdown and erosion, identified vulnerable embankments and nearby roads, rail, and utilities, and explained a total logistics cost model used to compare base conditions and several future scenarios. Those scenarios included no-dam conditions with new unit-train terminals, short-line rail options, a combined “many solutions” scenario, and a future scenario still to be defined. Members asked about irrigation, impacts in Idaho and Oregon, port capacity, emissions, competition, EV trucks, and whether the model could test reduced grain volumes; staff said the model can estimate transportation changes and costs, but not broader farm-economics impacts. WSU’s independent review said the model had improved but still had limitations in spatial detail, routing accuracy, and testing, and that stakeholder engagement remained important though delayed by model development. No votes were taken. The committee then received an update on the alternative sidewalk funding study. Consultants said the study is in its early information-gathering phase, with a statewide survey of cities and counties, interviews, national research, and legal review of possible funding mechanisms. They described current sidewalk funding as fragmented, with grants, transportation benefit districts, levies, and some utility-tax allocations used in Washington, but no dedicated statewide source. They said the study is especially examining a possible sidewalk utility fee, while parcel taxes appear unlikely under Washington’s property-tax rules. Members asked whether any new mechanism would duplicate existing taxes, how a sidewalk fee would be collected, and whether development requirements for sidewalks count as dedicated funding; the consultants said the study is aimed at expanding local options rather than mandating adoption. Deliverables include a preliminary draft by mid-December, a “Sidewalks 101” document by year-end, and a final report by mid-June next year. The committee also heard a brief update on the ocean-going vessels at berth emissions study. Staff explained that the report is nearing completion and will be presented at the next JTC meeting. They highlighted federal Clean Air Act constraints, noting that Washington’s options are shaped by California’s waiver-based standards and that deviations from California’s vessel-at-berth rules could invite litigation. Staff said stakeholder outreach is underway and asked for any missing participants to be identified before the final report is issued. Finally, the committee began hearing from county representatives on local transportation challenges. The county engineers’ association emphasized ongoing collaboration with state agencies and local partners on issues such as fish passage barriers and infrastructure needs, but the presentation was cut off as the meeting moved on to the next item.

Transcript Highlights:

• So AB 1340 uses our state's authority to give power back to rideshare drivers.
• Green jobs offer a powerful rehabilitative strategy for all stakeholders.
• Basically, under existing law, if you generate power as a private citizen, you can provide that power
• Lost economic output is in the billions.
• AB611 is a simple but powerful step in the right direction.

Summary: The committee heard several labor-related bills, with AB 1424, AB 1340, AB 288, and AB 746 all advancing on due-pass motions to Appropriations after testimony and roll calls. AB 1424 would require climate resiliency and extreme-heat protections in CDCR facilities; supporters described dangerous heat conditions for incarcerated workers and staff, while no opposition testified. AB 1340 would allow rideshare drivers to unionize and collectively bargain; drivers, labor groups, and researchers testified that app-based work is low-paid and unstable, while TechNet, Uber, Lyft, and other business groups argued the bill conflicts with Proposition 22 and could raise costs. AB 288 would let PERB step in when federal labor remedies are unavailable; supporters said it is needed because of NLRB dysfunction, while the Chamber of Commerce raised preemption and enforcement concerns. AB 746 would create an inmate cooperative program and a green reentry reserve; supporters framed it as a recidivism-reduction and reentry strategy, and there was no opposition testimony. The committee also heard AB 858, which would extend hotel and hospitality worker recall rights after declared emergencies and extend existing COVID-era protections. Hospitality workers and unions supported the bill as a way to protect jobs after pandemics, wildfires, and other disasters, while hotel, chamber, retail, restaurant, trucking, travel, and attractions groups opposed it, saying the current recall rules were meant to sunset and that the bill would create broad liabilities and hiring complications. The bill was moved to Appropriations but remained on call after the roll. AB 291, creating a credentialed educator apprenticeship program to address teacher shortages and improve diversity, drew support from education groups and stakeholders who said apprenticeships could lower preparation costs and provide better support; it was also moved to Appropriations and placed on call. Later, the committee took up AB 1104, a solar-energy bill intended to clarify that private solar customers are not “awarding bodies” and to ease certain business-to-business solar transactions while preserving prevailing wage and apprenticeship requirements for contractors. Supporters said the current interpretation has chilled commercial solar adoption and harmed jobs, while opponents from electrical workers, PG&E, and others warned about expanded “over-the-fence” power sales and the need for clearer limits. Members questioned the lack of a definition of “small,” and the bill was held without a second. The committee also heard AB 338, which seeks $50 million for Los Angeles and Ventura wildfire workforce recovery; the author and county officials described major job loss and business destruction and said the funds would support displaced workers and rebuilding, with the testimony continuing beyond the excerpt provided.

Transcript Highlights:

• And of course, what is a virtual power plant?
• That's very powerful.
• Basically, that's a virtual power plant.
• I was at a panel on virtual power plants.
• The proposed rule basically references virtual power plants.

Committee: House Science, Technology & Telecommunications Committee

Transcript Highlights:

• Vice Chair Powers: Chair Hauck: Here. Vice Chair Powers.
• Does that account for the power plant, too?
• Century Code says you can bond up to six years of your maximum levy.
• Boards had always said, okay, our maximum levy is this, multiply it by six.
• Aaron Burst: Correct, Chair and Representative Powers.

Committee: Joint Agriculture and Water Management Committee

Transcript Highlights:

• Garcia here, your story was very powerful. And I can't imagine the loss that you have.
• That's the root of what we're trying to get to: to make sure that the utility and the outputs of new
• context, whether it was in the early 20th century or in the early 21st century, to monetize that to the maximum

Summary: The Assembly Privacy and Consumer Protection Committee heard several bills focused on AI, immigration-related health care protections, digital financial assets, and online cannabis/hemp sales. SB 69 by Senator McNerney would create an AI-focused team within the Department of Justice to build enforcement expertise on civil rights, public safety, and legal issues tied to AI. SB 81 by Senator Arreguín would codify hospital and health facility policies limiting disclosure of patient immigration status and restricting immigration enforcement access without a judicial warrant. SB 97 by Senator Grayson would update and clarify California’s digital financial assets licensing law. SB 243 by Senator Padilla would impose guardrails on AI companion chatbots, including disclosures, anti-addictive design limits, self-harm protocols, and a private right of action. SB 378 by Senator Wiener would allow civil penalties against online marketplaces that advertise illicit intoxicating hemp and unlicensed cannabis products. Testimony on SB 69 emphasized that California needs in-house AI enforcement expertise at the DOJ; supporters said AG offices generally lack tech-policy specialists, while members asked about the Attorney General’s role and noted the office was neutral. SB 81 drew broad support from nurses, immigrant advocates, hospitals, labor, and community groups, who argued that hospitals should remain safe places for care regardless of immigration status; there was no opposition. SB 97 was described as a technical cleanup bill with stakeholder consensus, and the main public comment focused on ensuring blockchain-based nonfinancial products are not unintentionally swept into the law. SB 243 generated the most debate. Supporters, including the mother of a Florida teen who died by suicide after interacting with a chatbot, urged stronger protections for minors and vulnerable users. Opponents argued the bill’s definitions were too broad and could capture general-purpose AI systems, and raised concerns about privacy, cost, and a private right of action. Committee members largely supported the bill’s intent and discussed the need for guardrails without stifling innovation. SB 378 was supported by cannabis workers, retailers, and local government representatives who said online sales of untested intoxicating hemp and illegal cannabis are harming public health and the legal market; opponents from hemp and tech groups argued the bill could sweep in lawful hemp businesses and that definitions need refinement. The committee ultimately passed SB 69, SB 81, SB 97, SB 243, and SB 378, with SB 81 and SB 243 amended, and all five bills were sent onward to their next committees.

Transcript Highlights:

• Garcia here, your story was very powerful. And I can't imagine the loss that you have.
• that the, That's the root of what we're trying to get to, is to make sure that the utility and the outputs
• context, whether it was in the early 20th century or in the early 21st century, to monetize that to the maximum

Committee: House Privacy and Consumer Protection

Summary: The Assembly Privacy and Consumer Protection Committee heard several bills focused on AI, health privacy, digital assets, and cannabis enforcement. SB 69 by Senator McNerney would create an AI-focused team within the Department of Justice to build expertise on civil rights, public safety, and consumer protection issues tied to AI; supporters said California needs in-house technical and legal capacity, and the bill drew no opposition. SB 81 by Senator Arreguín would codify hospital and health-facility protections limiting immigration enforcement access and disclosure of patient citizenship status absent a judicial warrant; nurses, immigrant-rights groups, hospitals, labor, and many local and advocacy organizations supported it, while no opposition was heard. SB 97 by Senator Grayson would update California’s digital financial assets law with technical clarifications developed with DFPI, industry, and consumer groups; it was described as a consensus bill with no opposition. SB 243 by Senator Padilla would regulate AI companion chatbots by requiring disclosures, limits on addictive engagement, and crisis-response protocols for self-harm or suicidal ideation, with a private right of action; the bill was strongly supported by the mother of a teen who died by suicide after interacting with a chatbot, while TechNet, CalChamber, CCIA, EFF, and CJAC opposed it over scope, definitions, First Amendment concerns, and cost. SB 378 by Senator Wiener would let consumers seek civil penalties against online marketplaces that advertise illicit intoxicating hemp and unlicensed cannabis products; supporters argued it would protect public health and the legal cannabis market, while hemp and tech groups warned it could sweep in lawful hemp products and needed narrower definitions. After quorum was established, the committee voted all five bills out: SB 69 passed 14-0, SB 81 passed 11-3, SB 97 passed 13-0, SB 243 passed 11-1, and SB 378 passed 13-0.

Transcript Highlights:

• They can fine, they can sanction, they have a lot of power to punish bad actors within the industry.
• They can fine, they can sanction, they have a lot of power to punish bad actors within the industry.
• They can fine, they can sanction, they have a lot of power to punish bad actors within the industry.
• And yet, the maximum fine malreatment.
• </c> to require um not uh an increased output to require um not uh an increased output in<01:27:07.920

Committees: Senate Health and Human Services , Senate Human Services

Transcript Highlights:

• So if demand goes up, the compute power goes up instantly. So it covers that.
• But the power of Poppy is that it uses definitive government sources like CA.gov.
• We want to make sure we have the maximum amount of streamlining.
• We want to make sure we have the maximum amount of streamlining.
• We want to make sure we have the maximum amount of streamlining.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• One, my overall concept is if we expand this too much, we dilute the ability to get the maximum bang
• to fund fire prevention activities related to things like electricity transmission, undergrounding power
• fire prevention activities related to things like electricity transmission, you know, undergrounding power
• We've made a fundamental shift in how we determine this from output-based measures to outcome-based,
• so from output to outcome.

Transcript Highlights:

• One, my overall concept is if we expand this too much, we dilute the ability to get the maximum bang
• to fund fire prevention activities related to things like electricity transmission, undergrounding power
• fire prevention activities related to things like electricity transmission, you know, underground and power
• fire prevention activities related to things like electricity transmission, you know, undergrounding power
• So from output to outcome.

Summary: The subcommittee began by announcing a change in the agenda order, moving item 6 ahead of item 1 and then item 7, and noting there would be no votes taken on any items that day. Item 6 covered a proposed operational efficiencies control section for the Natural Resources Agency that would let multiple departments jointly fund landscape-scale or multi-jurisdictional projects and allow Finance to transfer climate bond funds to a lead state entity. The LAO said the proposal was reasonable but suggested the Legislature consider requiring summary notification on how it is used; Finance said it would consider that request. Item 7 focused on the 2026-27 biodiversity and nature-based solutions spending plan. Finance and the Wildlife Conservation Board described the climate bond funding for habitat restoration, wildlife crossings, public access, tribal nature-based solutions, and related work, including $111 million proposed for WCB and $30 million for Salton Sea habitat and public access projects. The LAO supported the overall approach but flagged the San Andreas Corridor Program as an area where the Legislature may want to specify geographic priorities. Members discussed the pace of Salton Sea work and whether the proposed projects would count toward disadvantaged community goals. Item 8 addressed Cal Fire’s aviation contract and staffing needs for wildfire response. Cal Fire said year-round fire activity, a larger and more complex aircraft fleet, and labor market pressures justified the proposed contract increase, including more mechanics, pilots, and maintenance support. The LAO recommended approval, saying the proposal addressed health and safety concerns. Members asked about contractor staffing, competition in the bidding process, and future technology for early fire detection and suppression. The committee then took up item 1 on golden mussel containment. Fish and Wildlife described the invasive species’ spread in the Delta, the task force and response framework, and a request for eight new positions funded by Prop. 4 to support control plans, outreach, monitoring, research, and coordination with partners and law enforcement. Members pressed the department on whether the state should fund more direct decontamination infrastructure and grants to local water managers, and on the realistic goal of containing the mussel. The chair and several members emphasized the urgency of the threat and requested an itemized breakdown of the $20 million request. The hearing then moved to a broader LAO overview of wildfire prevention and response funding, where the LAO summarized the state’s funding mix and warned that ongoing wildfire resilience funding will likely decline as one-time bond and GGRF funds are exhausted, prompting discussion of long-term funding options and the balance between prevention, suppression, and community hardening.

Transcript Highlights:

• One is that it creates maximum on the constitutional share of the budget stabilization account to 10%
• percentile and so going forward, essentially what this means is that when I talk about our model outputs