Transcript Highlights:

• From this pool of money, the state would fund the grants...”
• From this pool of money, the state would fund the grants to businesses pursuant to the new grant program
• allows voluntary withholdings from independent contractors for purposes of an approved Department of Labor
• Bureau of Labor Statistics.
• Bureau of Labor Statistics.

Keywords: 994, senate, all

Summary: The Senate Finance Committee met with a quorum present, approved the prior meeting minutes, and then took up several House bills with strike-and-insert amendments. House Bill 5510 was amended to incorporate provisions from Senate Bills 1065 and 928, modernizing Alcohol Beverage Control licensing and adding rules for low-proof spirit alcohol products, including a $1.25 per gallon tax; the committee adopted the amendment and reported the bill to the full Senate with a do-pass recommendation. The committee then considered House Bill 5453 on school funding. After discussion of a proposed block-grant system and supplemental aid for special education, the committee adopted an amendment replacing much of the bill with weighted funding for level two and level three special education students, exempting those funds from block grant rules and limiting their use to direct instruction. The committee also adopted a clarification to extend the special education funding to charter school students and reported the amended bill to the Senate. House Bill 5412, dealing with multi-year technology licensing contracts for local fiscal bodies and science-of-reading training for K-5 teachers, was amended to clarify contract language, delay implementation dates, change “endorsement” to “training,” and require charter school teachers to participate; it was then reported. The committee next amended and reported House Bill 4006, which creates aerospace development and workforce grant programs, changing the funding mechanism to use Department of Commerce reporting and personal income tax proceeds rather than direct employee withholdings. It also took up House Bill 4009, combining voluntary portable benefits for independent contractors with microcredentialing and an expanded apprenticeship tax credit, adopted the Finance Committee amendment, and reported it. Finally, House Bill 4004 creating the Recharge West Virginia training reimbursement program was amended to raise the annual employer reimbursement cap from $50,000 to $100,000 while keeping the $10,000 per-employee limit, and the committee reported the bill. The meeting ended with adjournment.

Transcript Highlights:

• in the labor market, and that has declined over the years as well.
• There's no pool to bring it back to. There's no way to go backwards anymore.
• There's no pool to bring it back to. There's no way to go backwards anymore.
• And that was very frightening. ...pool to bring it back to.
• Some of them have central storage, but in pools.

Summary: The Advanced Nuclear Energy Committee met to hear a series of presentations on the economics, financing, workforce, and community impacts of advanced nuclear deployment in North Dakota. William Bridge of Nucleon Energy presented the committee’s economic impacts and private-sector financing report, estimating construction and operating job impacts, local spending, and state/local tax effects for hypothetical SMR projects. He said the report assumes first-of-a-kind costs are still high, used a $6 million per megawatt nth-of-a-kind proxy, and estimated peak construction workforces of about 500 for a 200-MW plant and 1,000 for a larger facility, with roughly 100 operating jobs for a 200-MW plant. Committee members questioned security costs, capital cost assumptions, water and transmission siting constraints, and whether the model included fuel and waste; Bridge said the report included initial fuel in capital cost and that waste disposal is funded through existing federal mechanisms. Lori Brady of the Nuclear Energy Institute then outlined national nuclear workforce needs and NEI’s strategic workforce planning efforts. She described declining labor-force participation, retirements, and the need for a much larger future workforce, and said NEI has organized recommendations around career awareness, pipelines, training and qualification, policy support, retention, and nontraditional recruitment. She highlighted tools such as the Nuclear Works career website, the Nuclear Energy Academic Roadmap, the new federal Energy and Natural Resources career cluster, and the Nuclear Uniform Curriculum Program for community colleges. Members asked about AI, timing for training relative to plant development, and whether advanced manufacturing would reduce staffing needs; Brady said AI is not expected to replace workers and that training timelines depend on the specific project and staffing plan. The committee also heard from Gary Yaco, mayor of Red Wing, Minnesota, who described Prairie Island’s role in his community. He said the plant provides a large share of local property tax revenue, supports well-paid jobs, contributes to emergency preparedness funding and training, and is broadly supported by the city despite periodic protests and public concerns. He emphasized the plant’s security, regular drills with local and federal responders, and the absence of problems with dry cask storage. Later, Benton Arnett of NEI discussed the current financing landscape for advanced nuclear, explaining how tax credits, federal loan support, off-take agreements, and new business models are helping projects move forward. He said early projects face high upfront costs and long lead-time procurement, but that investor confidence is improving as federal policy and regulatory streamlining continue. The committee asked about waste funding, comparisons with natural gas, the effect of political shifts on investor confidence, and whether the market will narrow to a few winning technologies; Arnett said the industry is still sorting that out, but expects clearer winners in the late 2020s and early 2030s. The meeting concluded with an introductory presentation from Julie Kazeraki of DOE’s Office of Energy Dominance Financing, who said the office is focused on accelerating nuclear deployment through financing support.

Transcript Highlights:

• First items on the pool list are with the Department of Education.
• Next<00:29:39.679> item<00:29:39.919> on<00:29:40.080> the<00:29:40.240> pool
• list is with the Next item on the pool list is with the office<00:29:41.520> of<00:29:41.679>
• The next item on the pool list is here.
• The next item on the pool list is with<00:36:53.520> the<00:36:53.680> Department<00:36

Keywords: 958, all

Summary: The committee met after several reschedulings due to flooding, welcomed a new assistant, and confirmed a quorum. It first approved the March 11 minutes, then reported that the day’s agenda included 310 items totaling about $139.4 million, with all vendors registered with the Secretary of State. The committee then approved deferred items involving the Transportation Cabinet/Department of Highways, including one routine PSC green-list item and one PSC amendment item, after hearing from the Transportation Cabinet’s Division of Professional Services and noting prior questions had been answered. The bulk of the meeting focused on Department of Education contracts tied to reading and literacy initiatives. Officials described a competitive grant program for high-quality instructional resources and related professional learning, explaining that resources are selected through evidence-based reviews and a quality curriculum task force, and that districts apply using an instructional resources alignment rubric. Members questioned the program’s reach, whether districts opt in, how many schools applied, and whether the effort is producing measurable reading gains. Department witnesses said about 155 schools applied and were awarded, the program is voluntary, and the University of Louisville’s Reading Research Center is collecting qualitative and quantitative data to evaluate effectiveness. Several members expressed concern that the state has repeatedly funded literacy efforts without improving reading scores, though the committee ultimately approved the education items, with Senator Meredith noting support but frustration about the lack of progress. The committee also approved an MOA amendment item supporting the Principal Partnership Project, which provides tools, resources, and professional learning for administrators and helps meet statutory evaluation-training requirements. Members asked about the use of nonrecurring federal funds and whether the arrangement affects retirement benefits; staff said the contract pays districts based on daily wage and additional workdays, which does increase retirement packages. Representative McCool voted yes but voiced caution about possible supplanting. Finally, the committee took up an Office of the Controller contract for a brokered insurance-related procurement. Representative Balman moved to disapprove the contract, arguing the winning broker was not the low bidder and that the committee lacked answers about how technical scoring outweighed a roughly $600,000 price difference. The motion to disapprove did not prevail, and the contract was approved after further discussion about procurement scoring and the committee’s limited information.

Transcript Highlights:

• Where our issues come in is where the mandates come in on labor for us.
• As we look to diversify and expand our contractor pool on public works projects, these types of mandates
• pool and the opposition saying that it would preclude those not using skilled and trained.
• thought I heard different things whenever your witnesses saying that this is not picking among the labor
• to add additional requirements into public works projects, we are only going to have a certain bid pool

Keywords: 988, house, all

Transcript Highlights:

• Where our issues come in is where the mandates come in on labor for us.
• As we look to diversify and expand our contractor pool on public works projects, these types of mandates
• pool and the opposition saying that it would preclude those not using skilled and trained.
• thought I heard different things whenever your witnesses saying that this is not picking among the labor
• to add additional requirements into public works projects, we are only going to have a certain bid pool

Summary: The Assembly Higher Education Committee heard several Senate measures focused on community college procurement, higher education access, and student support. SB 1154 by Senator Reyes would allow community college districts to use best-value procurement for public works projects over $1 million. Supporters, including San Bernardino Valley College, the San Bernardino Community College District, labor groups, and several districts, said it would improve delivery of complex facilities and align community colleges with other education systems. Opponents, including the Associated General Contractors, argued the bill’s skilled-and-trained workforce requirements and labor-compliance scoring would narrow the bidder pool and raise costs. The committee passed the bill to the Assembly Floor on a due-pass vote, with some members voting no or not recorded. SB 1255, also by Senator Reyes, would create a California Hispanic-serving institution designation. Supporters from HACU, the CSU Chancellor’s Office, UC, community colleges, and other education organizations said the designation would recognize campuses that serve large numbers of Latino and low-income students and strengthen accountability and student success. The committee approved the bill as amended and re-referred it to Appropriations, with one no vote. SB 1328, presented on behalf of Senator Cervantes, would require LGBTQ+ points of contact at satellite or branch campuses of CSU and community colleges, either through designated staff or regular office hours. Testimony emphasized gaps in access at remote centers and the need for confidential support; one member raised concerns about staffing, costs, and whether existing systems could meet the need remotely. The bill was passed as amended and sent to Appropriations. The committee also considered SB 960 by Senator Cabaldon, which would expand the circumstances under which community colleges could offer bachelor’s degrees in response to unmet workforce needs, especially where CSU programs are impacted or not realistically accessible locally. Supporters said the bill would help meet workforce demand and expand access for place-bound and adult learners. CSU and faculty representatives opposed unless amended, urging stronger partnership requirements, clearer workforce-need standards, and safeguards around duplication and Prop 98 funding. Members discussed impaction, regional access, and the role of partnerships; the bill was passed as amended and re-referred to Appropriations. Finally, SB 632 by Senator Otagan would extend the California College Promise fee waiver to part-time community college students enrolled in nine units. Supporters said many students cannot attend full time because of work, caregiving, and living costs, and the bill would better reflect student realities; the transcript ends during testimony on this measure, before any vote is shown.

Transcript Highlights:

• I believe first up is labor to talk about the second injury fund, is that right?
• So, for the record, I'm Ken Marfield, Commissioner at the Department of Labor.
• since I have been at the labor since I have been at the labor department<00:09:01.640> and
• It'll go to the Labor Committee and all the sort of stuff, right?
• It'll go to the Labor Committee and all the sort of stuff, right?

Keywords: 928, house, all

Summary: The committee first discussed a proposed increase to the annual elevator certificate fee in the Department of Labor. The commissioner said the fee had been $50 for years and generated just under $300,000 annually, while the Inspection Division’s broader revenue far exceeded its expenses. Members noted the fee only covered the certificate, not the inspection itself, which is billed separately at $100 per hour. After comparing the fee to neighboring states and discussing the department’s revenue and staffing, the committee agreed to rewrite the language to set the fee at $75 and to vote on an amendment later. The committee then took up Section 139, which would expand the list of labor-law violations that can be penalized without first issuing a warning. The Department explained the change was meant to align House Bill 157 with other chapters, including youth employment and workers’ compensation provisions, where immediate civil penalties are already allowed. The section was accepted unanimously. A longer discussion followed on the Second Injury Fund. The commissioner explained that the fund reimburses insurers for certain workers’ compensation costs tied to claims involving pre-existing conditions, is financed by assessments on insurers, and requires notice within 100 weeks of injury plus a $10,000 deductible before reimbursement. He said the fund currently holds roughly $16 million to $22 million, one full-time employee administers it, and total staff involvement is about five to six people. Members questioned whether the fund should be sunset, but the department said the current House Bill 2 language does not propose a sunset; instead, it addresses increased hearing and litigation burdens after a recent Supreme Court decision. Sections 140 and 141, dealing with hearings, were then accepted unanimously. The committee also briefly discussed fines for late insurance coverage reporting, with the department noting the current rubric allows up to $50 per day but uses $112 per day, and members suggesting a lower amount.

Transcript Highlights:

• Um, but I understand what labor has done.
• And, um, like what what labor has done.
• Um, but said, I'm I'm not against labor.
• , not just voting on here affects labor, not just voting on labor<02:02:55.760> bills.
• <02:09:50.079> So, that's what labor represents. So, that's what labor represents.

Keywords: 981, all

Summary: The House convened with a color guard presentation by Colorado Military Academy cadets and the pledge led by Olivia and Owen Curry. After roll call established a quorum, members approved the journal of Friday, March 6, 2026, as corrected. Several committees then announced upcoming hearings, including Agriculture, Water, and Natural Resources; State, Civic, Military, and Veterans Affairs; and Finance. The chamber then took up House Joint Resolution 1020, designating March 8, 2026, as International Women’s Day in Colorado. The resolution praised women’s contributions across history and society, highlighted Colorado’s early adoption of women’s suffrage, and recognized trailblazing women in the General Assembly. Sponsors and supporters spoke at length about women’s leadership, economic and civic contributions, and the need to continue advancing equality. The resolution also drew recognition of women and advocacy organizations present in the chamber. Representative Bradley and other Republican members criticized the resolution as partisan and said Republican women were not included in drafting or sponsoring it. They argued the measure should have been more inclusive and should have better reflected women’s roles in the home and the broader bipartisan history of women’s history observances. Bradley announced she would vote no. In response, Representative Ricks said an amendment would be accepted from the minority caucus to address concerns about traditional roles of women, and he moved Amendment L002 for consideration.

Transcript Highlights:

• the workers that we have in North Dakota; unemployment insurance for over 26,000 employers; and then labor
• market info, you know, making it so you can make informed decisions on labor data.
• The Workforce Development Council, which is comprised of labor and employees around the state, recommended
• The Senate transfers for the new and vacant FTE pools were also included.
• The Senate transfers for the new and vacant FTE pools were also included.

Keywords: 908, all

Summary: The committee met to consider three measures, beginning with Senate Bill 2016 for Job Service. Testimony described Job Service’s workforce, unemployment insurance, and labor market functions, its long-term reduction in FTEs and budget, and its reliance on federal funding that does not keep pace with inflation. The bill included funding for an additional FTE for the H-2A housing inspection program, continued support for the JP3 offender placement pilot, and one-time funding for IT and mainframe costs tied to a system modernization effort. The committee approved the bill 20-0, with Representative Swiontek named as carrier. The committee then discussed Senate Bill 2305, which would allow family members to be paid as caregivers for certain young people with disabilities instead of only licensed outside providers. Members noted the specialized, 24-hour nature of the care, workforce shortages, waiting lists, and the potential to avoid more expensive institutional care. Questions focused on how the program would be structured, including certification requirements and whether it would remain a pilot or become part of the broader human services budget. The committee passed the bill 20-0, with Representative Roar as carrier and Representative Nelson available as backup. Finally, the committee took up Senate Bill 2024 for the Department of Environmental Quality. The House change was limited to increased special-fund support for water and wastewater operator certification testing to expand availability, while the Senate version already included added FTEs for emerging contaminants and fuel inspection work. Members discussed federal funding uncertainty, including IIJA and ARPA-related concerns, but the department said its major projects, including the new laboratory, were not currently in jeopardy. The committee adopted the amendment and then passed the bill as amended 22-0, with Representative Berg as carrier.

Transcript Highlights:

• have on the MassHealth population and get your sense of whether that will affect us or if there's a pool
• will have on the mass health population and get your sense of if that will affect us or if there's a pool
• and something that we're talking a lot about, is the health safety net and the uncompensated care pool
• think that's one point is that, you know, we continue to see restriction or downward pressure on the labor
• I mean, I think, you know, even in the best of circumstances, we had a tough labor market.

Keywords: 995, all

Summary: The subcommittee opened with roll call and approved the November 2025 minutes. Commissioner Charlie Carr then introduced Leslie Darcy, chief of LTSS at MassHealth, who provided an update on the PCA working group and on federal and state budget pressures affecting MassHealth and long-term services and supports. Darcy said the PCA working group had completed its work and submitted recommendations, including reinstating the 66-hour overtime cap, strengthening program integrity, and ending paid paperwork time for EVV users; she said those changes were implemented on 11/26 and were expected to save $7.4 million. She also described additional consensus recommendations to lower the overtime cap from 66 to 60 hours, create a seven-hour weekly meal-prep support limit, and continue exploring benchmarks, though the group could not reach consensus on a benchmark standard. Darcy warned that a federal bill enacted about six months earlier would significantly affect MassHealth, with an estimated $3.5 billion loss to the Commonwealth by 2028. She outlined upcoming changes including revised immigrant eligibility rules in October 2026, work requirements for certain non-disabled adults beginning in January 2027, six-month redeterminations for some adults, and shorter retroactive coverage periods. In response to questions, she said people with disabilities and Medicare beneficiaries would be exempt from the work and six-month redetermination requirements. She also explained that reduced federal ACA subsidies were being offset in Massachusetts by state spending, including $250 million in additional state support to keep premiums lower for middle-income families. Members raised concerns about community hospitals, the health safety net, and the impact of federal funding changes on provider rates and uncompensated care. Darcy said restrictions on provider taxes would limit MassHealth’s ability to use those revenues to support rates, and she noted a current $300 million shortfall in the health safety net. She said FY27 would likely include a rate freeze, targeted reductions, one-time budget measures, and further work groups to examine programs such as adult foster care, which she said had grown 40% in two years. Carr emphasized that the situation was serious but potentially fluid, and the meeting ended with no further business; the subcommittee agreed to adjourn before the next meeting and noted an upcoming February presentation from the Department of Public Health.

Transcript Highlights:

• the rest of the savings are in labor the rest of the savings are in labor costs<00:39:56.640>
• <02:01:02.400> that pool that pool that um<02:01:04.599> gets<02:01:04.840> into
• about Surplus and some of the pools about Surplus and some of the pools didn't<02:04:38.239>
• stability in the risk Pool stability in the risk Pool Management<02:06:25.679> um<02:06:25.800
• sufficient funds in the in the risk pool sufficient funds in the in the risk pool too<02:07:01.639

Keywords: 1191, senate, all

Transcript Highlights:

• Again, the trade war is weighing heavily on the labor market.
• A tight labor market puts upward pressure on wages.
• in the total labor pool, in part because of immigration action and also self-deportations.
• That labor force in the future.
• So they are actually self-funding this insurance pool, like a localized pool, and they bear all the liability

Transcript Highlights:

• Sometimes there are employers that are more competitive than the state and getting that limited pool
• And so when you have this large pool of vacant positions, we're increasing the amount of funding that
• So it's not just that there's this pool of funding, but it's a growing pool of funding every year.
• So it's not just that there's this pool of funding, but it's a growing pool of funding every year, while
• You have labor market issues. So there are various reasons that the vacancy rate remains high.

Keywords: 987, senate, all

Summary: The subcommittee heard an extensive discussion on the Governor’s proposal to eliminate vacant positions across several environmental and natural resources departments, including Fish and Wildlife, Parks, the Coastal Commission/BCDC, DPR, DTSC, CalRecycle, and the State Water Resources Control Board. The Legislative Analyst’s Office explained that the JLBC had already not concurred with 650 of roughly 1,000 positions under review, citing concerns that many of the vacancies support core functions such as law enforcement, permitting, public safety, sea-level rise planning, and implementation of recently enacted laws. The Department of Finance defended the vacancy reduction exercise as a way to capture savings from a statewide pool of about 40,000 vacancies, arguing that departments need flexibility to manage operations and that some vacancies are used to cover operating costs or hard-to-fill roles. Several department representatives testified that the cuts would reduce capacity and could slow permitting or enforcement, though they said they would try to reclassify positions and prioritize the highest-need work. No vote was taken and all items were held open for a future hearing. Members focused heavily on the practical effects of the cuts. Senators questioned whether vacant positions should be treated as a budget savings tool, whether special-fund positions should be eliminated when they do not affect the General Fund, and whether long-vacant positions should simply be removed if they have not been filled for years. Fish and Wildlife and Parks described impacts to permitting, wildlife conflict response, and law enforcement; Parks said its academy can train only about 50 rangers a year, leaving many vacancies even after the proposed reductions. The Coastal Commission said the affected positions support SB 272 sea-level rise planning with local governments. DPR said the proposed cuts would affect multiple branches involved in pesticide registration, enforcement, and safety review, while DTSC said it was still hiring from a large 2022 reform package and had reduced its vacancy rate from about 30 percent to 15 percent before the drill. The State Water Board said its proposed reductions would be spread across programs and could lead to slower permitting and backlogs, though it would protect drinking water functions as much as possible. The committee then moved to a State Water Resources Control Board overview and a new budget proposal tied to the U.S. Supreme Court’s Sackett decision. Chair Esquivel described the board’s responsibilities for water quality, water rights, drinking water, and financial assistance, and said the board is updating the Bay-Delta Plan while also pursuing voluntary agreements and broader water-rights administration. He said federal workforce reductions and the Sackett ruling have increased pressure on state programs. The board requested $2.6 million and 12 permanent positions from the Waste Discharge Permit Fund to address permitting and enforcement gaps created by the narrowing of federal Clean Water Act jurisdiction. The LAO said the request met its high bar for new proposals because it was supported by the board’s data and would help maintain water-quality protections, though it noted that state processes are less efficient than the federal framework they are now partially replacing.

Transcript Highlights:

• victimized by labor trafficking. victimized by labor trafficking.
• c> at<00:22:05.360> the experienced labor trafficking at the experienced labor trafficking
• It could be uncompensated care pool.
• <01:07:03.200> or if there's an income city care pool or if there's an income city care pool
• If they can centralize it and pool their resources.

Keywords: 1187, senate, all

Transcript Highlights:

• It is manual labor, but it is skilled manual labor that does require special training.
• UNM pays about 9 million into the pool, right?
• Do you have a pool of money built up when they pay their premiums? Mr. Chair, Senator Munoz.
• pool of money that has been built up.
• And so, are you running a deficit in that pool every year?

Transcript Highlights:

• organization or perform labor organization activities during working hours.
• We stand by our labor unions, and we stand by the ability to organize ourselves.
• the voters, and I truly think that if it actually makes the ballot, voters are going to support our labor
• We stand by our labor unions, and we stand by the ability to organize ourselves.
• not the only insurers that provide workers' comp to firefighters; there's also a public insurance pool

Keywords: 1182, all

Summary: The caucus reviewed a long list of bills and resolutions, with staff giving brief descriptions and members flagging which items were on consent, had unanimous committee votes, or should be pulled for further discussion. Topics included education, health care, public safety, labor, water, taxation, housing, and elections. Several measures were noted as party-line or mixed votes, while many others were reported as unanimous and placed on third-read or consent calendars. Among the more discussed items were bills on school and labor policy, including a proposal to prohibit teacher strikes, a measure restricting school district bond actions, a bill requiring school safety protocols and assigning felony penalties for noncompliance, and a resolution limiting public money for labor organization activities. Members also raised concerns or requested further review on bills involving pharmacist testing authority, expired opioid antagonists, a county sheriff-related measure, a housing affordability district proposal, and a tobacco/vape regulation bill. Some measures were explicitly pulled from consent, including a Medicaid audit resolution, a budget-related pay-withholding resolution, and several education and public safety bills. The caucus also heard multiple health and human services measures, such as genetic counselor licensing, nursing board and pharmacy board continuations, foster care rights, psychiatry access funding, and free school meals. In addition, there were water and energy bills on Colorado River management, groundwater, transmission-line review, and renewable energy valuation, plus election and campaign-related proposals. The meeting ended with announcements, including an upcoming Colorado River breakfast briefing and an internal award recognizing Representative Brian Garcia, followed by adjournment.

Transcript Highlights:

• Labor as the broad umbrella of all of the labor that goes into developing new housing.
• is used to build new construction, whose labor is used to maintain existing rentals, whose labor is
• So at the same time, our county and neighboring counties where we've generally pulled our labor pool
• labor pool from are generally pulled our labor pool from are experiencing<01:18:28.560> significant
• your area but also respect labor rights. your area but also respect labor rights.

Keywords: 1187, senate, all

Transcript Highlights:

• . ...by allowing nonprofit housing developers to join a risk-pooling joint powers authority that pools
• It has a project labor agreement with the local laborers union, Local 89, and the plans for the subdivision
• The whole idea of building four large towers without wage and labor standards, or labor standards, is
• Labor, wage standards, yes, but there are safety standards.
• IBW 477 joins other labor, business, and local government partners, IBW 477 joins other labor, business

Keywords: 988, house, all

Transcript Highlights:

• But this committee has heard earlier this year that Cal Competes has accumulated a credit pool of...
• But this committee has heard earlier this year that Cal Competes has accumulated a credit pool of...
• The prorated journalist fund and the needs-based bonus pool. Is that correct? Yeah, that’s correct.
• Eduardo Martinez here on behalf of Actors Equity with the National Labor Union, Reversight.
• We’ve had a very robust conversation about, you know, as Labor Chair, I oversee a lot of the labor bills

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.

Transcript Highlights:

• Their pool is going to get these other folks mixed into it, and the cost just, they have to go up.
• You're mixing these, these two pools together now.
• We're talking about adding anywhere from 5 to 10,000 more to the risk pool.
• By doing so, what they're doing is reducing the pool of people that are coming in that are healthy.
• It's very heavy labor intensive, as you pointed out, Mr. Chair.

Transcript Highlights:

• But the same labor market factors are affecting physicians.
• Bureau of Labor Statistics. It's, yeah, it's government data.
• The demand for labor went up.
• I have a question regarding the risk pools.
• And there is actually good labor force data that.

Keywords: 1184, house, all