Transcript Highlights:

• Now I'd like to turn the mic over to my colleague at the Chancellor's Office for updates on increasing
• So this is a great example of bridging data silos to increase opportunities for students.
• This is a great example of bridging data silos to increase opportunities for students.
• We have seen participation in CCAP programs in particular increase significantly in recent years.
• We are in strong support of the increased funding for dual enrollment.

Summary: The committee heard an update on the administration’s Career Education Master Plan and the new California Education Interagency Council. Administration and agency staff described efforts to better connect K-12, higher education, workforce, and data systems, including the California Cradle to Career Data System, e-Transcript California, and a proposed career passport. They emphasized regional coordination with workforce boards and community colleges, and said the new council’s immediate tasks are to hold its first meeting by the end of June, enter into a data-sharing MOU, and complete a strategic plan by the end of November. Members asked about the council’s authority, reporting requirements, and how it would relate to the broader Master Plan for Higher Education; staff said the council will make recommendations but does not have implementation authority. The committee then took up the Governor’s proposed $100 million one-time expansion of dual enrollment grants and related changes to instructional minute requirements. Finance and the Department of Education said the proposal would support middle college, early college, and CCAP programs, add technical assistance, prioritize high-need LEAs, and reduce the minimum instructional day for certain dual enrollment students from 240 to 180 minutes to ease scheduling barriers. The Chancellor’s Office strongly supported the investment, citing access, acceleration, and equity benefits, while the LAO recommended rejecting the funding, arguing the state already provides ongoing support and that the proposal does not address major barriers. Members raised questions about adult learners, A-G alignment, reporting on outcomes and expenditures, rural access, transportation, staffing, and whether the funding would create lasting program capacity. The item was left open after discussion. The committee also considered trailer bill language to align the definition of long-term English learners across data systems. Finance and CDE said the change would simplify identification by defining LTELs as students who have not attained English proficiency within seven years and RTELs as students not proficient within six years, matching the dashboard and research-based timelines. CDE said the current mismatch between dashboard and assessment definitions creates confusion and delays, while some members and advocates worried the change could reduce earlier intervention or should be handled through policy committees rather than the budget process. The committee voted to reject the proposal and refer it to policy, though the administration said it still supports the budget language. Finally, the committee heard a proposal to extend the Supporting Inclusive Practices project by one year, through June 30, 2027. CDE said the project is promising but raised concerns about the contract structure and fiscal management, while Marysville Joint Unified School District testified that SIP had helped expand inclusive preschool and district-wide practices and reduce reliance on more restrictive placements. Members questioned why funds had not been fully encumbered and whether the remaining money should be redirected to areas with greater implementation need. The item was discussed but no final action was described in the excerpt.

Transcript Highlights:

• property or automobile rate filings require approval from the TDI Commissioner if the proposed rate increases
• Tax revenue, jobs, and labor wages would increase dramatically if, in fact, we would help send this industry
• There is a load expectation that is increasing by 70% over the next six years.
• realizing other benefits throughout the economy, including benefits to the state and local economy, increases
• Currently in Texas, we do not have anyone that can help our constituents reduce their demand and increase

Bills: SB1468 , SB1612 , SB1789 , SB2530 , SB2571 , SB2717 , SB2967

Committee: Senate Business & Commerce

Transcript Highlights:

• It eliminates provisions in the bill that increase the per-petition reimbursement amount for certain
• Members, this is the bill on increasing the sovereign immunity caps, which we passed off the House floor
• In the last three months alone, GRU customers have seen three rate increases.
• We're also increasing the availability to the extent that a developer obtains a building permit.
• Well, we've... ...would like to address through increased transparency, putting in the voters' hands,

Summary: The House met with a quorum present, heard prayers and ceremonial remarks, and then took up a series of returning messages from the Senate. The first major item was CS/CS/HB 1503 on computer science education and certification. Members explained that the House concurred in a Senate amendment that restored teacher certificate language, kept computer science and AI-related content in the bill, and delayed implementation to give the Department of Education time to develop curriculum. The House adopted the amendment and then passed the bill 105-0. The House also considered CS/CS/HB 1085 on local government cybersecurity. Members adopted a House amendment allowing local governments to buy into the cyber grant program even if they do not receive a grant, adding a five-year sunset and reporting provisions. The House then concurred in the Senate amendment shifting grant administration from a university to the Florida Digital Service, and passed the bill 104-1. Several other returning messages were rejected or sent back to the Senate. The House refused to concur in Senate amendments to CS/HB 351 on concurrent legislative jurisdiction over military installations and HB 6011 on reporting gifts or honoraria, as well as CS/HB 851 on professional learning for instructional and school administrative personnel. The most contentious debate came on CS/CS/HB 1471, which concerns systems of law and terrorist organizations; the Senate amendment defined “promote,” refined notice and timeline requirements, and retained references to Sharia law. Opponents argued the bill was overbroad, lacked due process and evidentiary standards, and threatened First Amendment rights, while supporters said it targeted conduct, not speech, and protected against terrorist support. The House adopted the amendment and passed the bill 80-25. The House then took up a related public records bill, CS/CS/HB 1473, which made a technical conforming change to align with HB 1471; debate focused on transparency and due process concerns.

Transcript Highlights:

• Law enforcement agencies from across the nation have reported triple- and quadruple-digit increases in
• This legislation will also increase damaged structures or vehicles left behind in a disaster zone.
• Increased punishment and more crimes are not the answer to our problems.
• We're just trying to increase it for those that do it in these areas.
• AB 1187 is a common-sense, reasonable bill to reduce gun violence and increase gun safety.

Summary: The committee first adopted a seven-bill consent calendar, then heard several public safety measures. AB 1127 by Assembly Member Gabriel would restrict sale of certain semi-automatic handguns that can be easily converted to automatic weapons with “switches”; supporters, including Everytown and Moms Demand Action, said it targets a specific Glock-style design flaw linked to mass shootings, while the NRA and gun-rights groups argued the bill duplicates existing federal law and effectively bans popular handguns. The bill was moved on a due-pass-as-amended motion to Judiciary and remained on call. AB 468, also by Gabriel, would increase penalties and clarify offenses involving looting and impersonating emergency personnel in evacuation zones and during disasters; firefighters, district attorneys, and law enforcement supported it as a deterrent, while public defenders and justice advocates warned it was overbroad and could worsen racial profiling. The committee approved the bill on a due-pass-as-amended motion to Appropriations, also held on call. The committee then heard AB 1187 by Assembly Member Celeste Rodriguez, which would require eight hours of firearm safety training, including live-fire instruction, before obtaining a firearm safety certificate and would add a requirement for new residents who import firearms. Supporters said California should require training comparable to other safety-sensitive activities and that the measure would reduce gun deaths; opponents argued the bill misunderstands the existing FSC process, would be hard to implement because of range and instructor limits, and would burden a constitutional right. The bill passed on a due-pass-as-amended motion to Appropriations and was held on call. The committee also heard AB 1424 by Rodriguez, which would require CDCR climate resiliency and heat-safety measures in prisons, including temperature monitoring, shade, showers, fans, and emergency planning. Prisoner-rights and labor groups strongly supported the bill, citing extreme heat, wildfire, and flooding risks, while one opponent said the monitoring mandate could be too costly; the bill was moved on a due-pass motion to Labor and Employment and held on call. Finally, the committee began hearing AB 1258 by Assembly Member Kalra, which would extend the sunset of the Young Adult Deferred Entry Program through 2029 for selected counties. Kalra and Santa Clara County Judge Erica You described the program’s success in reducing recidivism and providing wraparound services for young adults with felony charges, including housing, counseling, and parenting support. The transcript cuts off before the committee completed action on AB 1258.

Transcript Highlights:

• Two did indicate marginally increased costs.
• It will increase public trust. Energy bills are gonna be in the news for the next decade.
• It will increase public trust. Energy bills are gonna be in the news for the next decade.
• Cardiff. ...expansions of the gas system and increase heat pump adoption.
• With the warming climate, we have also seen a dramatic increase in infectious diseases.

Committee: Joint Joint Committee on Telecommunications, Utilities and Energy

Summary: The hearing focused on several climate and utility-related bills, especially H. 3449/S. 2292 to expand the municipal fossil fuel-free building demonstration program from 10 to 20 communities and related home rule petitions for Somerville and other municipalities. Witnesses from Somerville, Salem, Worcester, Cambridge, Newton, Arlington, Wellesley, Watertown, and the Massachusetts Municipal Association argued that local governments should be allowed to opt into fossil fuel-free or net-zero building standards, citing climate goals, environmental justice concerns, housing production, and data showing all-electric construction can cost about the same as or less than mixed-fuel construction. Committee members repeatedly pressed witnesses for cost data and asked for written follow-up, while also discussing whether strong environmental standards affect housing supply; witnesses responded that the main housing constraints are financing and that they would provide more data from local projects and state studies. A second major topic was H. 3564, which would require gas companies to provide municipalities with detailed multi-year pipe replacement plans, allow local review and objections, and limit reimbursement for projects not previously disclosed except in emergencies. Municipal leaders and advocates said the bill would improve coordination of street work, reduce disruption and costs, and help cities plan for electrification, network geothermal, and non-pipeline alternatives. Testimony from Wellesley, Cambridge, Arlington, Newton, and others emphasized repeated problems with last-minute gas main work, the need for advance notice, and the value of municipal participation in planning gas system retirement and alternatives. The committee also heard testimony on the “tactical transition” bills, S. 2249/H. 3539, aimed at managing the gas-to-clean-energy transition. Supporters from Gas Transition Allies, Rewiring America, and 350 Mass said the bills would require joint gas-electric planning, create an advisory council, eliminate subsidies for new gas hookups, shift investment toward repairs and clean alternatives, protect workers through retraining, and make utility plans more transparent. They argued these changes would reduce ratepayer costs, avoid stranded gas assets, and support orderly decarbonization. In addition, HEET testified on H. 3541, which would update greenhouse gas accounting to better reflect methane’s short-term climate impact, and H. 3543, which would establish a framework for managing shared thermal resources and thermal energy networks; committee members asked several questions about the meaning, ownership, and consumer-cost implications of the proposed “thermal commons.” No votes were taken during the hearing.

Transcript Highlights:

• We've worked with DECAM and the Office of Livable Communities to allow for this increase in units.
• This will allow us... ...increase in units. Again, the cap was 180.
• At the end of the day, that means housing costs increase for everyone.
• We strongly support the structural reforms that will meaningfully increase housing supply.
• Now, that was in 1991, and regulatory costs have only increased since then.

Committee: Joint Joint Committee on Housing

Summary: The Joint Committee on Housing opened a hybrid hearing focused on housing production bills, with Chairs Julian Cyr and Rich Haggerty emphasizing Massachusetts’ housing shortage and the need to produce more than 200,000 units over the next decade. The committee then heard testimony on a wide range of proposals, including social housing, starter homes and the “missing middle,” accessory dwelling units (ADUs), single-stair residential buildings, permanent affordability homeownership, and housing for people with disabilities. Several witnesses framed the bills as tools to expand supply, lower costs, and address racial and generational wealth gaps. Representative Connolly testified for H. 1478 on the Massachusetts Social Housing Program, describing publicly owned, mixed-income housing financed through a revolving loan fund. Senator Feeney testified for S. 989 on missing middle starter homes, arguing for zoning changes, incentives, and affordability tools to support smaller starter homes and duplexes, triplexes, and fourplexes. Multiple witnesses, including housing advocates, real estate representatives, and local officials, supported the ADU trust fund bill and the single-stair study bill, saying they would reduce barriers, support homeowners, and enable more family-sized and infill housing. Some witnesses opposed bills they said would weaken ADU reforms or add new restrictions, while others urged broader deregulation to speed production. A major portion of the hearing focused on H. 1576/S. 1010, the Homes for Lasting Affordability bill, which would create a permanent affordability homeownership program for low- and moderate-income buyers and support small developments with long-term affordability restrictions. Testimony from community land trust leaders, legislators, and housing advocates emphasized that permanent affordability can preserve public investment, stabilize neighborhoods, and help families build wealth over generations. Senator Miranda and Representative Worrell tied the bill to closing the racial wealth gap and expanding access to homeownership for Black and Latino residents. The committee also heard testimony on S. 971, which would reform the Housing Development and Incentive Program to require more affordability in Gateway City projects. The committee additionally heard from Senator Kennedy and disability advocates on S. 1004, which would strengthen the Alternative Housing Voucher Program for people with disabilities by codifying project-based vouchers and aligning the program more closely with other voucher systems. Witnesses described long waitlists and the lack of accessible, affordable units as major barriers that can lead to homelessness or unnecessary institutionalization. No votes were taken during the hearing; the session was devoted to testimony and questions from committee members.

Transcript Highlights:

• So this is a great example of bridging data silos to increase opportunities for students.
• This is a great example of bridging data silos to increase opportunities for students.
• And the dashboard does include information on wage earnings by degree type.
• at those charter schools, or if a new charter school has increased ADA.
• We are in strong support of the increased funding for dual enrollment.

Transcript Highlights:

• in the budgetary amount other than the salary increases that are passed legislatively.
• As you can see this fiscal year, we are projecting a sharp increase in our spend.
• As you can see this fiscal year, we are projecting a sharp increase in our spend.
• Projected to increase.
• So you're asking for an increase of $759,000 for licensing.

Summary: The subcommittee heard updates on several state technology modernization efforts, beginning with the Florida Division of Emergency Management’s Enterprise Business Solution (DEMS). FDEM said DEMS is about 50% complete, with some grants and finance functions already live, and is intended to replace manual disaster and grants processing with a cloud-based system. Officials described faster reimbursement timelines after recent storms, major return-on-investment claims, and a planned final phase focused on design, testing, communications, data governance, and additional functionality. Members asked about the total cost, the role of Florida Digital Service, deliverables-based contracting, and how much of the system is live; FDEM said the project is expected to cost about $16 million to $16.8 million and finish by June 2027, with some follow-up information to be provided. The Department of Legal Affairs presented its Office of Attorney General Modernization Program, a follow-up to an earlier effort that failed after spending about $26 million. Acting Attorney General John Gard said the department has now moved to an off-the-shelf case management product, LawBase, and is in development and testing, with the Office of Statewide Prosecution already live and full implementation expected by the end of the fiscal year. The request includes funding for staff augmentation, cloud storage, the LawBase license, redundancy through a backup site in Orlando, and OnBase support. Members questioned the prior failure, the use of Florida Digital Service standards, data location and cloud migration, and the redundancy plan; Gard said lessons learned included better scoping and that the current effort is on track. The Department of Highway Safety and Motor Vehicles then updated the committee on Motorist Modernization, including the Orion system and the MyDMV portal. Officials said Phase 1 and Phase 2 have modernized driver license and motor vehicle services, with Phase 2 statewide rollout scheduled to begin in April 2025 and Phase 3 proposed at $16.5 million for dealer services, data warehouse improvements, and call center modernization. Members asked about payment options, organ donor questions, staffing, cybersecurity, cloud strategy, and the digital driver license program. The agency said the portal already allows some sanctions to be cleared online, an ACH option is being developed, the digital driver license vendor has changed with a fall go-live anticipated, and the department is using security testing and a managed security service provider. Officials also said the system is currently on an on-prem private cloud, with future workloads expected to move to public cloud where appropriate. Finally, Florida Commerce presented on the Reemployment Assistance modernization system, Reconnect, and the FLWINS workforce system. Commerce said Reconnect is hosted in the Azure Government Cloud, has reduced claim filing time, improved fraud detection, and increased appeals capacity, and now needs $4.9 million in recurring funding to cover ongoing operations, cloud hosting, licenses, and staff augmentation. Members asked about adjudication issues, wait times, fraud prevention, and whether the system stores caller identifiers; Commerce said the average wait to speak to a representative is about 18 minutes and claims are generally processed in four to six weeks. The committee then began hearing about FLWINS, which is intended to create a “no wrong door” workforce portal under the REACH Act, but the transcript cuts off before that presentation concluded.

Transcript Highlights:

• It increases the damage threshold for crash reports, revises motor vehicle registration Representative
• I expect both to increase, Representative.
• We feel the need to carry our little blue books with us because there is a war being waged on us.
• Jonathan Weber: states, including Florida were able to enact election changes without advanced review, increasing

Transcript Highlights:

• increase volatility in our revenue stream, which is not a good thing.
• One is that the trend has been for it to increase.
• Is it more progressive than other taxes, say increasing the retail sales tax?
• Increasing school funding directly supports our students.
• Increasing school funding directly supports our students.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the Water’s Edge election versus worldwide combined reporting. Chairs opened by framing the issue as a review of whether current rules fairly and sufficiently tax foreign subsidiary income, given profit shifting concerns, budget pressures, and the long history since Water’s Edge was adopted in the 1980s. The first panel from the Legislative Analyst’s Office and Franchise Tax Board explained the mechanics of unitary taxation, apportionment, and the Water’s Edge election, and provided filing data showing Water’s Edge filers are a small share of returns but account for a large share of corporate tax liability. FTB witnesses said the agency already administers both methods and could handle a shift to mandatory worldwide reporting with education and outreach, though revenue estimates are difficult because foreign affiliate information is not directly available. Committee members asked about foreign government pushback, administrative burden, industries with more profit shifting, revenue uncertainty, and whether companies would leave California. LAO and FTB witnesses said pushback from foreign governments was plausible, but they did not expect major business flight because California’s tax is largely based on sales rather than physical presence. They also said worldwide reporting could reduce profit shifting but might increase revenue volatility and litigation risk. A second panel of academic and tax policy witnesses argued that Water’s Edge is a loophole that rewards aggressive tax planning, that worldwide combined reporting would better capture income tied to California, and that modern federal and international rules such as NCTI/GILTI, CAMT, and Pillar Two reduce compliance concerns and make a return to worldwide reporting more feasible. They also said California’s current system can create selection effects and may under-tax large multinationals. In the next panel, a California Budget and Policy Center witness urged eliminating the Water’s Edge election, calling it a costly loophole that benefits large global corporations over smaller domestic businesses and deprives the state of billions in revenue that could support health care and other services. A Silicon Valley Leadership Group witness gave historical context for why Water’s Edge was adopted and began outlining concerns about compliance, double taxation, and the risk of overreaching beyond income truly connected to California. No bill was voted on or advanced; the hearing was informational only, with members using the testimony to weigh the policy trade-offs and possible transition periods if the Legislature were to change the current rules.

Transcript Highlights:

• </c><00:36:55.839><c> the</c> necessary, thus increasing the necessary, thus increasing the likelihood
• The research also suggests that fines and fees increase recidivism in youth.
• </c> for survivors as well as increase for survivors as well as increase accountability<01:02:24.400>
• </c><01:04:15.280><c> survivors</c> SB295 as it will increase survivors SB295 as it will increase survivors
• Increase military families to the state.

Committee: House Judiciary & Hawaiian Affairs

Summary: The committee heard testimony on several measures. SB 1296 HD1, relating to disaster recovery, would exempt reconstruction of lawfully constructed structures damaged or destroyed in a declared disaster from special management area permits under certain conditions. OPSD, DLNR, the County of Maui, Front Street Recovery, and the Grassroot Institute supported the bill, saying it would speed rebuilding after disasters like the Maui fires; one witness noted the bill would not cover shoreline parcels unless amended, and members asked about the five-year rebuild window, the meaning of “lawfully constructed,” and whether unlawful structures were excluded. Testimony was also heard on SB 1413, which would allow the Hawaii Public Housing Authority to dispose of abandoned property in federal public housing projects after notice and within five days; HPHA said the bill would help address illegal dumping and clarify procedures. SB 31 HD1, concerning discriminatory restrictive covenants, was briefly described and had support from the Hawaii Civil Rights Commission and comments from the Uniform Law Commission, with no in-person testimony. The committee then heard SB 1341, which would add HEMA and the Office of Homeland Security to agencies allowed to review energy industry information and would expand the program’s emergency-management purpose. The Hawaii State Energy Office supported the measure, saying the data is important for emergency response and fuel-supply planning. SB 10008 HD1 would authorize counties to adopt ordinances enforcing accessible parking space requirements and clarify county enforcement of EV-related parking provisions; the Disability and Communication Access Board strongly supported the accessible-parking provisions, saying current enforcement is weak, while noting section three on EV spaces is already largely in statute and could be struck if the committee preferred. Tina Yamaki of the Retail Merchants of Hawaii testified in opposition. Finally, the committee heard SB 1028 SD1 HD1, which would eliminate fees, fines, and court costs for offenses committed by minors, discharge existing related debt, limit community service for minors to 72 hours, and repeal certain penalties tied to minors and their parents or guardians. The Office of the Public Defender, Office of Hawaiian Affairs, the Juvenile Justice State Advisory Council, Community Alliance on Prisons, and DebtFree Justice Hawaii supported the bill, arguing that youth fines burden families, worsen poverty, and disproportionately affect Native Hawaiian youth. The Department of the Attorney General offered comments, raising possible constitutional title issues because the current draft incorporates material from HB 129 and includes sections that may relate more to restitution or curfew than to fines and fees; supporters responded that the title is sufficient and cited case law. No votes or final actions were taken on the measures in the portion of the meeting provided.

Transcript Highlights:

• And so, you know, a lot of our effort is continuing to press the federal government to increase the pace
• relates to augmenting or increasing firearms fees due to potential constitutionality concerns.
• That was an increase effective 2020. Prior to that, it was $19.
• Another DROS fee increase at this time is not advisable.
• Another DROS fee increase at this time is not advisable.

Summary: The committee heard an overview from Cal OES on disaster response, LA wildfire recovery, federal FEMA reimbursements, security monitoring, and the state’s 911 transition. Cal OES said its budget supports disaster preparedness and recovery, including ongoing work in Los Angeles, where it reported about 700 FEMA public assistance applications totaling roughly $1.2 billion and about $545 million in state wildfire response and recovery funding already allocated under AB 100. Members pressed for more detail on FEMA delays, hazard mitigation grants, federal event planning, and the status of Operation Stonegarden, while also raising concerns about small-disaster recovery, federal shutdown impacts, and the need for more timely reporting. A major portion of the hearing focused on Next Generation 911. Cal OES described problems with the current regional deployment, especially call-routing and transfer failures, and said it now plans to shift to a statewide provider as an interim step, then run an open procurement for a long-term vendor. The agency said it expects to execute a bridging contract in the coming weeks, release an RFP in the second quarter of 2026, award a long-term contract in the fall, begin transitioning Los Angeles-area PSAPs ahead of the 2028 Olympics, and complete statewide migration by summer 2030. The LAO urged the Legislature to pause further implementation until it has more information on the problems, alternatives, costs, privacy/security issues, and oversight needs, and recommended quarterly and monthly reporting if the project proceeds. Several senators echoed concerns about cost, redundancy, cybersecurity, and whether the statewide model could create new risks, and the chair said she would pursue a joint oversight hearing with the Emergency Management Committee and seek input from the State Auditor. The Department of Justice then presented its overall workload and budget pressures. DOJ highlighted its work on fentanyl enforcement, human trafficking, firearms recovery, housing enforcement, consumer protection, environmental and civil rights litigation, and a large federal litigation workload, saying it has filed 59 lawsuits against the Trump administration and won most of them. DOJ said the added federal cases and other mandates have strained existing staff, though 44 additional hires have been made. Members praised DOJ’s work on immigration, housing, and federal accountability, and asked for more information on detention facilities and staffing. The committee also reviewed DOJ’s firearms-related budget proposals. DOJ requested funding for continued firearms IT modernization, implementation of SB 704 on firearm barrels, and a temporary shift of Bureau of Firearms costs to the General Fund. The LAO supported the IT modernization request but recommended funding SB 704 from the Dealer’s Record of Sale Special Account, with startup costs covered by a loan from the Firearm Safety and Enforcement Special Fund, and suggested limiting the General Fund shift to one year and treating it as a loan. The LAO also asked DOJ to develop a framework by January 10, 2027, for deciding which firearm and ammunition workload should be supported by fee revenue rather than the General Fund.

Transcript Highlights:

• One is that the trend has been for it to increase.
• One is that the trend has been for it to increase.
• Is it more progressive than other taxes, say, increasing the retail sales tax?
• Increasing school funding directly supports our students.
• Increasing school funding directly supports our students.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the state’s water’s-edge election versus worldwide combined reporting. The LAO and Franchise Tax Board explained the basic mechanics of unitary taxation, apportionment, and how water’s-edge generally excludes most foreign subsidiaries while worldwide reporting includes the full unitary group. FTB officials said water’s-edge filers are a small share of corporate filers but account for a large share of tax liability, and they described filing trends, industry mix, and the administrative steps needed to administer either system. Members and witnesses debated the policy trade-offs. Supporters of moving away from water’s-edge argued that it enables profit shifting, especially for large multinational and IP-heavy firms, and that eliminating it could raise significant revenue and improve fairness for smaller domestic businesses. They cited estimates of billions in potential revenue and said California already has the audit and reporting infrastructure to handle worldwide reporting, though some transition time would be needed. Opponents argued that worldwide reporting would tax foreign activity unrelated to California, create double taxation, increase compliance burdens and litigation, and could be difficult for foreign-based multinationals to document. They also warned that some of the revenue estimates are highly uncertain because foreign affiliate income is not directly observable. Committee members asked about foreign government pushback, the risk of companies leaving California, the effect on intellectual property shifting, and whether federal or Supreme Court action could block a change. Witnesses generally said major firms would be unlikely to leave because California taxes sales rather than physical presence, but some costs could be passed on to consumers. The panel also discussed alternatives such as conforming to federal international tax rules like NCTI/GILTI and adding anti-abuse rules. No vote or bill action was taken; the hearing was informational only.

Transcript Highlights:

• By contrast, other options such as increasing taxation of specific categories of foreign income might
• increase volatility in our revenue stream, which is not a good thing.
• One is that the trend has been for it to increase.
• Is it more progressive than other taxes, say increasing the retail sales tax?
• Increasing school funding directly supports our students.

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• But also, wage theft and construction fraud are intended to be focused as well.
• The AGO will have limited authority and serve these electronic search warrants regarding wage theft,

Bills: HB1160 , HB1289 , HB1339 , HB1798 , HB1065 , HB2113 , HB2124 , HB2125 , HB2134 , HB2140 , HB2185 , HB2191 , HB2205 , HB2219 , HB2245 , HB2283 , HB2343 , HB2406 , HB2501 , HB2574 , HB1544 , HB1834 , HB2156 , HB2188 , HB2206 , HB2478 , HJM4012 , HB1104 , HB1152 , HB1254 , HB1443 , HB1982 , HB2006 , HB2179 , HB2203 , HB2297 , HB2322 , HB2329 , HB2379 , HB2388 , HB2399 , HB2462 , HB2464 , HB2495 , HB2544 , HB2551 , HB2636 , HB2192 , HB2251 , HB2262 , HB2266 , HB2298 , HB2320 , HB2323 , HB2351 , HB2401 , HB2405 , HB2442 , HB2523 , HB2593 , HB2632 , HB2661 , HB1496 , HB1898 , HB2095 , HB2157 , HB2225 , HB2274 , HB2311 , HB2325 , HB2333 , HB2476 , HB2508 , HB2552 , HB1343 , HB1634 , HB1707 , HB1906 , HB1909 , HB2196 , HB2244 , HB2339 , HB2361 , HB2384 , HB2389 , HB2410 , HB2468 , HB2475 , HB2521 , HB2548 , HB2619 , HB2637 , HB2720

Summary: The House first took up House Bill 2156, which would expand the Attorney General’s investigative authority, especially for organized retail crime and related economic and financial crimes. Members debated a series of amendments on training standards, background checks, warrant service, scope limits, and definitions. Some amendments were adopted, including provisions clarifying electronic service of search warrants, background-check expectations, decertification standards, and a definition of economic and financial crimes; others were rejected or ruled out of scope. The bill was then amended, advanced, and passed 54-43. The House then considered several other measures. Engrossed Substitute House Bill 2219 on child care operational efficiency passed overwhelmingly after amendments addressing opioid-related safety standards in licensed child care settings. House Bill 2124, adjusting the lump-sum retirement allowance threshold, passed unanimously. Engrossed Substitute House Bill 2266, dealing with permanent supportive housing, traditional housing, and indoor emergency shelters, was amended to add local notice, transparency, community meeting, and siting protections, then passed 56-40. The chamber also passed Engrossed Second Substitute House Bill 1784, which updates certified medical assistant supervision rules for diagnostic radiologic procedures, by 96-0. Engrossed Second Substitute House Bill 2523, codifying the Community Reinvestment Program, passed 88-9 after amendments adding accountability and local-government provisions. House Bill 2113, clarifying supervision authority for diagnostic radiologic procedures in rural hospitals, passed 97-0. House Bill 2632, modernizing statutory terminology by replacing “alien” with “non-citizen,” passed 58-39. Engrossed Substitute House Bill 2476, expanding theater seating rules for venues serving alcohol, passed 81-50. The House then began House Bill 2320 on regulating firearms manufacturing involving 3D printing and CNC milling; several narrowing amendments were rejected, a striking amendment was adopted, and debate continued with supporters citing ghost-gun risks and opponents raising constitutional concerns.

Transcript Highlights:

• Tutors should be paid at least minimum wage, and there should be ongoing statewide monitoring of effectiveness
• Tutors should be paid at least minimum wage, and there should be ongoing statewide monitoring of effectiveness

Transcript Highlights:

• It says a 190.1% increase over last year.
• Fee increases generated $450,000, and the appropriation was increased by $400,000 to mitigate the impact
• It does show a little bit of increase, but there is a 5% increase because of the statewide adjustments
• You’ll see underneath the dedicated column a 13.5 percent increase.
• This supplemental amount is a one-time increase of $17,802,700.

Transcript Highlights:

• Eliminating water's edge could increase volatility in our revenue stream, which is not a...
• One is that the trend has been for it to increase.
• Is it more progressive than other taxes, say, increasing the retail sales tax?
• Increasing school funding directly supports our students.
• Increasing school funding directly supports our students.

Transcript Highlights:

• Um, we are looking at ways to increase the teaching workforce."
• "We haven't come back to ask for an increase in Grow Our Own, though, since we have the wait list.
• "We haven't come back to ask for an increase in Grow Our Own, though, since we have the wait list.
• "We haven't come back to ask for an increase in Grow Our Own, though, since we have the wait list.
• "We haven't come back to ask for an increase in Grow Our Own, though, since we have the wait list.

Committee: Senate Economic Development and Tourism

Summary: The Senate Committee on Economic Development and Tourism and Higher Education heard HB 1494, relating to sports facilities. Testimony was largely in opposition to the bill as drafted from the Stadium Authority, the Department of Accounting and General Services, and the Department of Business, Economic Development and Tourism, with several other written comments also opposing; each asked that if the measure advances, Senate language from related stadium bills be incorporated instead. The University of Hawaiʻi testified in support of the Nāʻid project and said it wants the project delivered at Halawa so the university can have a football facility, though members pressed the university on whether it was effectively supporting both the project and the bill’s current approach. A substantial portion of the hearing focused on the stadium project’s financing, schedule, and oversight. DAGS and Public Works discussed a consultant contract that had grown to about $28 million and an audit that recovered $441,000 after improper travel and expense reimbursements, including first-class airfare and other personal expenses; officials said the audit exposed weak internal controls and led to revised reimbursement policies. Members questioned whether the problems would have been found without media reporting and whether stronger oversight should have been in place earlier. The committee also discussed the current Ching Field setup for UH football, with witnesses describing it as less than ideal and temporary until the new stadium is built. Stadium Authority representatives said the current preferred offeror is Aloha Halawa Development Partners, negotiations have recently accelerated, and the goal remains a contract this summer and a fall 2028 opening. They said the state is committed to $350 million in general obligation bonds, with the overall project expected to cost more, and that the developer is exploring other financing sources such as TIF or CFD while the state and city work to expedite permits and demolition. No vote or final action on the bill was taken in the portion provided.

Transcript Highlights:

• law of general application at the detention center in Tacoma and say that they had to pay minimum wages

Summary: Senate and House Democratic leaders used the meeting to preview several bills they expect to move quickly, while framing much of their agenda as a response to federal ICE actions and broader concerns about public safety and accountability. They said the Senate will pass a bill banning law-enforcement masking, with the stated goal of requiring identification and transparency for officers, and that the House will likely take it up after House-of-Origin cutoff. They also said a bill restricting Flock automated license plate readers will move from rules to the floor, and they discussed a separate proposal to bar people hired as ICE agents under Trump’s second term from later serving in Washington law enforcement, though leaders said they had not yet reviewed its details. The leaders repeatedly criticized ICE and said the state must do what it can to protect residents, especially immigrants, while also defending Washington’s law enforcement training and accountability systems. They said the bill on face coverings is aimed at federal agents, though they also argued it is a general standard for all law enforcement and may serve to “enunciate” a norm even if its legal scope is tested in court. They also discussed concerns about fraud and misuse of funds in state programs, saying Washington has checks and balances and that accountability measures are appropriate, while cautioning against baseless claims. On budget and policy matters, they said a Senate bill to restore Washington College Grant and Washington Promise scholarship funding would be considered in the operating budget process, but it was too early to know what reductions could be reversed. They expressed openness to a House bill limiting non-emergency charity care to Washington residents, citing border-community strain and examples from eastern Washington hospitals. They also said they were still evaluating a House bill on camping enforcement tied to shelter availability and a tort-liability measure, noting that any savings would likely come from reduced litigation costs rather than caps on damages. Other topics included a possible income tax proposal, which leaders said could be introduced as soon as Friday or next week with offsets included or outlined; House Bill 1607 on a beverage container recycling/deposit system, which they said could reach executive action soon; and a floor vote expected on the BAC bill the next day. They also said they were not inclined to hear the recently arrived voter initiatives in committee, describing them as likely headed to the ballot instead.