Transcript Highlights:

• In times of division, let unity prevail.
• We passed this bill out in the 88th session and had bipartisan support.

Bills: SJR12 , SJR81 , SB22 , SB32 , SB241 , SB393 , SB414 , SB458 , SB464 , SB568 , SB583 , SB609 , SB660 , SB664 , SB693 , SB731 , SB732 , SB746 , SB779 , SB783 , SB785 , SB868 , SB897 , SB921 , SB955 , SB1008 , SB1029 , SB1036 , SB1057 , SB1059 , SB1120 , SB1122 , SB1147 , SB1163 , SB1188 , SB1197 , SB1209 , SB1245 , SB1321 , SB1332 , SB1365 , SB1394 , SB1396 , SB1470 , SB1484 , SB1494 , SB1537 , SB1596 , SB1598 , SB1637 , SB1644 , SB1809 , SB1814 , SB1822 , SB1841 , SB1948 , SB2064 , SB2065 , SB2112 , SB2155 , SB2226 , SB2320 , SB2406 , SJR36 , SJR81 , SJR50 , SJR4 , SJR40 , SJR27 , SCR22 , SCR12 , SCR39 , SCR38 , SCR37 , SB1396 , SB1209 , SB765 , SB62 , SB666 , SB888 , SB687 , SB847 , SB1248 , SB504 , SB305 , SB296 , SB284 , SB241 , SB304 , SB1023 , SB204 , SB609 , SB670 , SB850 , SB854 , SB413 , SB1346 , SB1033 , SB1220 , SB1073 , SB810 , SB1539 , SB447 , SB1119 , SB1505 , SB1215 , SB1302 , SB583 , SB673 , SB681 , SB1172 , SB955 , SB957 , SB541 , SB266 , SB1415 , SB53 , SB1352 , SB785 , SB1450 , SB1502 , SB1566 , SB1062 , SB711 , SB746 , SB1404 , SB1448 , SB507 , SB1026 , SB1349 , SB1355 , SB1433 , SB1434 , SB1596 , SB1403 , SB667 , SB1059 , SB1567 , SB310 , SB311 , SB505 , SB1210 , SB1470 , SB264 , SB1358 , SB1364 , SB1569 , SB1376 , SB1228 , SB519 , SB1350 , SB462 , SB827 , SB1585 , SB1484 , SB1273 , SB927 , SB1227 , SB1229 , SB1353 , SB1464 , SB1709 , SB1729 , SB1733 , SB1744 , SB1772 , SB1841 , SB1147 , SB1008 , SB2016 , SB1173 , SB1163 , SB996 , SB1370 , SB1321 , SB1101 , SB860 , SB993 , SB693 , SB1537 , SB1332 , SB1307 , SB963 , SB493 , SB984 , SB619 , SB1122 , SB455 , SB522 , SB1057 , SB1239 , SB1254 , SB1255 , SB1259 , SB1341 , SB1877 , SB1277 , SB32 , SB732 , SB660 , SB731 , SB921 , SB268 , SB1822 , SB1589 , SB397 , SB1058 , SB1267 , SB2112 , SB1930 , SB532 , SB2155 , SB508 , SB292 , SB291 , SB901 , SB1333 , SB1436 , SB1494 , SB964 , SB779 , SB1378 , SB2312 , SB1719 , SB287 , SB2143 , SB1245 , SB261 , SB1247 , SB1948 , SB2406 , SB2407 , SB1882 , SB1814 , SB618 , SB38 , SB393 , SB1371 , SB1394 , SB1365 , SB2243 , SB2226 , SB2039 , SB1919 , SB1895 , SB1598 , SB1493 , SB1810 , SB1791 , SB1706 , SB1644 , SB1238 , SB783 , SB458 , SB22 , SB651 , SB897 , SB1809 , SB1080 , SB745 , SB826 , SB989 , SB1320 , SB1437 , SB2320 , SB2289 , SB1171 , SB664 , SB1637 , SB2064 , SB868 , SB1079 , SB1243 , SB1504 , SB1851 , SB1879 , SB2237 , SB1257 , SB2034 , SB1522 , SB883 , SB249 , SB1318 , SB1151 , SB596 , SB1191 , SB226 , SB570 , SB870 , SB991 , SB60 , SB365 , SB1067 , SB1786 , SB326 , SB1401 , SB1592 , SB1728 , SB1265 , SB586 , SB529 , SB217 , SB209 , SB1923 , SB1559 , SB1839 , SB387 , SB1874 , SB1872 , SB1873 , SB1921 , SB1883 , SB1677 , SB95 , SB1620 , SB1838 , SB2024 , SB2429 , SB1999 , SB511 , SB2309 , SB2166 , SB871 , SB510 , SB33 , SB2420 , SB1860 , SB1541 , SB1316 , SB1314 , SB1313 , SB1426 , SB1398 , SB1869 , SB1750 , SB1871 , SB36 , SB855 , SB1233 , SB760 , SB2425 , SB2037 , SB1758 , SB1759 , SB2365 , SB1924 , SB762 , SB1271 , SB1818 , SB605 , SB1405 , SB1762 , SB1968 , SB1977 , SB2077 , SB2148 , SB2321 , SB1967 , SB1662 , SB1663 , SB2124 , SB2204 , SB1855 , SB863 , SB37 , SB241 , SB1147 , SB1394 , SB1814 , SB1948 , SB2155 , SB1209 , SB1396 , SB609 , SB660 , SB921 , SR373 , SR374 , SR376 , SR377 , SR379 , SR381 , SR386 , SB2332 , SB3040 , SB3041 , SB2332 , SB3040 , SB3041

Summary: The Senate opened with a quorum, an invocation, and routine motions to excuse Senator King and dispense with the reading of the previous journal. Members then took up several ceremonial resolutions and recognitions, including honoring Duncanville High School’s boys basketball state championship, recognizing the city of Palestine, welcoming the Texas African American Lawyers Foundation and Barbara Jordan Leadership Institute, acknowledging the Cibolo Chamber of Commerce, and designating Texas County Treasurer’s Day and Mesquite Day. A memorial resolution for Clyde Vance Dunham of Waco was adopted, with multiple senators speaking in tribute to his long legal career and community service; the Senate agreed to adjourn in his memory. The chamber then considered a series of bills, most of which were advanced on expedited motions. Senate Bill 1948, concerning fire prevention standards for certain agricultural facilities, passed after suspension of the rules and the three-day rule. Senate Bill 1394, updating weight and tire-load rules for ready-mix concrete trucks, passed unanimously. Senate Bill 1814, creating an electronic database to provide information to certain veterans, also passed unanimously. Senate Bill 241, tightening enforcement of the public camping ban and authorizing state enforcement and reimbursement mechanisms, drew questions about impacts on unhoused people but ultimately passed. Senate Bill 1147, withdrawing Texas from the Interstate Mining Compact, passed unanimously. The Senate also passed Committee Substitute for Senate Bill 921 on Medicaid ex parte renewals after a narrower vote, and Senate Bill 609, requiring school districts and charter schools to comply with legally required policies, after rejecting an amendment by Senators Menendez and Perry that would have added a good-faith/resource-limitation safeguard for districts. Committee Substitute for Senate Bill 660, requiring bollards or similar barriers near certain hospital emergency rooms, passed with rural exemptions and exceptions for existing protections. Senate Bill 2155, a cleanup bill returning veterinary board authority from TDLR to the State Board of Veterinary Medical Examiners, passed with amendments. Committee Substitute for Senate Bill 1209 on election dates and Committee Substitute for Senate Bill 1396 prohibiting national sex education standards in public schools also passed. The Senate then received first-reading bills and adjourned until the next day.

Transcript Highlights:

• This issue is not only a constitutional one, it's actually a bipartisan issue.
• not merely to win battles but to deter wars altogether, thus ensuring national peace. security and unity

Bills: HB39 , HB227 , HB930 , HB 1078 , HB39 , HB227

Committee: House S/C on Defense & Veterans' Affairs

Keywords: highway designation, veteran recognition, commemorative, transportation, Brazoria County, Texas National Guard, combat duty, military activation, state requirements, emergency response, active combat duty, military service, Congressional action, Governor responsibilities, Congressional declaration, state law, conflict, armed forces, congressional approval, war declaration

Transcript Highlights:

• We believe we must stand in unity with our brothers and sisters to ensure that that dream continues to
• writings and those teachings that's in front of us today, and we need to move forward in 2026 with unity
• Thank you to my colleagues who spoke today, and again it's a week of unity to celebrate both this week

Transcript Highlights:

• valuable vacation brand here in Florida 142 billion and we will lead the charge to make sure there's the unity
• I can take it in and formulate into their marketing campaigns in again, provide swords, unity of messaging
• So we don't want just, you know, there'd be no unity or leadership and how Florida's presented.

Transcript Highlights:

• The bill received broad bipartisan support and enthusiastic support of our Governor.
• The bill received broad bipartisan support and enthusiastic support of our governor.
• I appreciate the bipartisan support. The robust conversation.
• It's where community meets peace, love, unity, and respect.
• And this legislature, I think, has come together in a bipartisan way to get housing done.

Summary: The Assembly convened after a quorum call, prayer, and pledge, then moved through a largely procedural session with several unanimous-consent motions, guest introductions, and budget-related trailer bills. Members also adopted resolutions recognizing June as Dairy Month and June 2026 as Electronic Dance Music Month, and later approved H.R. 88 commemorating the 250th anniversary of the Declaration of Independence. Guest introductions highlighted the Los Angeles Dodgers, San Diego Kappa League, Assembly staff member Mukhtar Ali, and Jennifer Levy, who is advocating against drunk driving after the death of her son. On the floor, the Assembly considered a series of Senate budget trailer bills presented by Assembly Member Gabriel. SB 170 reorganizes housing and homelessness agencies; SB 171 makes labor-related cleanup changes; SB 172 addresses general government, broadband, and NextGen 9-1-1; SB 174 extends remote court hearings and related court provisions; SB 177 advances options related to Medi-Cal and employer contributions; SB 180 extends the California Competes tax credit and conforms tax treatment for certain savings accounts; SB 169 covers transportation and DMV-related provisions; SB 168 creates a zero-emission vehicle incentive program and other clean-energy changes; SB 166 implements natural resources and environmental protection budget items; SB 165 extends the skilled nursing facility financing framework; SB 163 updates developmental services; and SB 135 funds higher education initiatives, including community college enrollment and Cal Grant changes. Most of these measures passed with bipartisan support, though several drew opposition over concerns about bureaucracy, fees, oversight, or policy direction. The Assembly also passed SB 719, which updates vehicle-related protections for domestic violence survivors, SB 97, an urgency bill making clarifying changes to digital financial asset law, SB 1350, which supports hydrogen and clean energy development, and SB 1344, which aims to reduce meritless lawsuits delaying affordable and supportive housing projects. AB 182, which sets the order for proposition numbers on the November ballot, was approved despite criticism that it manipulates the ballot numbering process. Votes on the measures were recorded, with many passing on strong margins and several transmitted immediately to the Senate or Governor as noted in the proceedings.

Transcript Highlights:

• Thank you, Senator Pappas, for getting it launched to a bipartisan vehicle, including getting letters
• I appreciate Representative Nadeau for joining me on this bipartisan, common-sense legislation, and I
• So we have complete unity between the cities as well as the firefighters, and everyone is very united
• So we have complete unity between ranks.
• So we have complete unity between the<00:59:44.280><c> cities</c><00:59:45.040><c> as</c><00:59:45.200

Transcript Highlights:

• I got unity and diversity. That's three words one of you gave me. One said inclusive.
• So I'm going to be praying for this body and unity in this body. Please join me in prayer.
• So in your divine wisdom, you have shown us that unity does not erase distinction, and that diversity
• Speaker, this is a bipartisan bill that has the potential to transform the South Central Texas region

Bills: HB200 , HB541 , HB1803 , HB30 , HB175 , HB249 , HB721 , HB851 , HB897 , HB 1128 , HB1904 , HB1916 , HB5560 , HB3071 , HB5627 , HB5435 , HB3913 , HB2921 , HB2695 , HB2688 , HB3045 , HB3483 , HB3673 , HB4213 , HB4226 , HB783 , HB4373 , HB4735 , HB5155 , HB5057 , HB4984 , HB4944 , HB4813 , HB5339 , HB5196 , HB5033 , HB4853 , HB3486 , HB4211 , HB74 , HB4670 , HB4730 , HB4743 , HB4603 , HB4463 , HB3892 , HB4139 , HB4752 , HB4520 , HB4517 , HB4486 , HB4437 , HB4426 , HB4396 , HB4263 , HB3487 , HB3418 , HB2284 , HB2266 , HB2229 , HB4912 , HB2189 , HB4506 , HB5269 , HB5224 , HB5195 , HB3317 , HB4166 , HB3947 , HB3358 , HB3370 , HB4438 , HB3745 , HB3602 , HB3697 , HB2001 , HB1968 , HB3371 , HB3909 , HCR7 , SB1744 , SB1364 , SB1316 , HB2026 , HB3302 , HB3368 , HB1639 , HB5652 , HB4655 , HB5654 , HB5658 , HB5656 , HB4894 , HB4996 , HB5088 , HB5650 , HB4464 , HB3751 , HB5665 , HB5661 , HB 1237 , HB2802 , HB5437 , HB2703 , HB5666 , HB5667 , HCR113 , HCR86 , SB2196 , SB463 , SB856 , SB1245 , SB1169 , SB509 , SB985 , SB305 , SB552 , HB1535 , HB 123 , HB1804 , HB426 , HB1773 , HB1871 , HB2035 , HB2492 , HB1411 , HB4753 , HB4666 , HB4529 , HB1499 , HB1610 , HB2028 , HB1506 , HB886 , HB3546 , HB796 , HB223 , HB3556 , HB2448 , HB4638 , HB 111 , HB180 , HB 1027 , HB 1178 , HB610 , HB 1277 , HB1615 , HB1620 , HB5342 , HB4885 , HB4751 , HB4530 , HB4488 , HB2149 , HB2071 , HB2282 , HB2248 , HB2243 , HB2522 , HB2310 , HB2513 , HB2300 , HB1902 , HB1813 , HB3719 , HB4284 , HB3743 , HB3778 , HB5153 , HB5147 , HB4877 , HB4850 , HB3261 , HB3005 , HB3033 , HB2849 , HB2967 , HB3531 , HB1768 , HB333 , HB2914 , HB2613 , HB3717 , HB3704 , HB2697 , HB3801 , HB3099 , HB3488 , HB3477 , HB3466 , HB3396 , HB3469 , HB2594 , HB2776 , HB2564 , HB2298 , HB5331 , HB5646 , HB5247 , HB5323 , HB4384 , HB3896 , HB4014 , HB3627 , HB3594 , HB2524 , HB510 , HB561 , HB5111 , HB5446 , HB 1181 , HB3963 , HB2785 , HB1661 , HB2460 , HB200 , HB541 , HB1803 , HB30 , HB175 , HB249 , HB721 , HB851 , HB897 , HB 1128 , HB1904 , HB1916 , HB5560 , HB3071 , HB5627 , HB5435 , HB3913 , HB2921 , HB2695 , HB2688 , HB3045 , HB3483 , HB3673 , HB4213 , HB4226 , HB783 , HB4373 , HB4735 , HB5155 , HB5057 , HB4984 , HB4944 , HB4813 , HB5339 , HB5196 , HB5033 , HB4853 , HB3486 , HB4211 , HB74 , HB4670 , HB4730 , HB4743 , HB4603 , HB4463 , HB3892 , HB4139 , HB4752 , HB4520 , HB4517 , HB4486 , HB4437 , HB4426 , HB4396 , HB4263 , HB3487 , HB3418 , HB2284 , HB2266 , HB2229 , HB4912 , HB2189 , HB4506 , HB5269 , HB5224 , HB5195 , HB3317 , HB4166 , HB3947 , HB3358 , HB3370 , HB4438 , HB3745 , HB3602 , HB3697 , HB2001 , HB1968 , HB3371 , HB3909 , HCR98 , HCR92 , HCR126 , HCR7

Keywords: juvenile offenders, parole eligibility, youth justice, criminal justice reform, inmate rehabilitation, direct patient care, healthcare, physicians, medical services, insurance regulation, dentist, dental hygienist, interstate practice, licensure, compact privilege, public health, military members, disaster relief, tax rates, local government

Transcript Highlights:

• I was trying to be bipartisan. I went... Yeah, right.
• , That we saw after the event is that there were bipartisan groups that came together to hold prayer
• one of the two that was hosted at Texas A&M—and that is just a prime example of complete, just bipartisan
• unity.
• Complete, just bipartisan unity. You know, and Dylan, I'm glad to hear that.

Summary: The joint Senate and House Select Committee on Civil Discourse and Freedom of Speech in Higher Education convened for its first public hearing, adopted its proposed rules without objection, and framed the hearing as an organizational, invited-testimony-only session. Members repeatedly condemned political violence and the assassination of Charlie Kirk, saying the committee was created in response to concerns about civil discourse, intimidation, and hostility on college campuses. Several members emphasized that the goal was not to suppress speech but to protect open expression while maintaining order, due process, and institutional accountability. The first witness, Texas Higher Education Coordinating Board Commissioner Wyn Rosser, outlined implementation of Senate Bill 37. He described the General Education Advisory Committee, which is reviewing broad core-curriculum knowledge and skills and may recommend reducing the current 42-hour core, while leaving review of specific courses to individual institutions. He also explained the new Office of the Ombudsman, the board’s role in supporting it, and existing training and certification requirements for governing board members. Members asked about enforcement tools, transparency, and whether the ombudsman would investigate complaints involving censorship, retaliation, or political bias; Rosser said some enforcement exists in certain laws, but he deferred on the exact scope of the ombudsman’s investigatory authority and on issues outside the agency’s role. University of Texas at Austin President Jim Davis testified that UT Austin supports free speech, academic freedom, and civil discourse, and he described three areas of focus: speech on campus grounds, classroom discourse, and how people treat one another. He said the university enforces time, place, and manner rules, expects professors to present alternative views on controversial topics, and has created internal reporting and appeal processes for students and faculty. Members questioned him about heckler’s veto incidents, protests, off-campus participants, complaints about professors, hate speech, and whether the university would protect speakers and students from disruption or unfair targeting. Davis said the university would not tolerate disruptions, would use due process and factual review, and is working to align campus practices with the new law and regents’ expectations. Ricky Adam Jr. of Turning Point USA’s Club America described the group’s campus and high-school organizing, praised Charlie Kirk’s approach to open debate, and said the organization is expanding in Texas. He raised concerns about school administrators and a counselor at an Early College High School in Killeen allegedly interfering with a student club and withholding footage, and committee members said they would seek information and, if necessary, use legislative process to investigate. Members from both chambers reiterated support for free speech, criticized political violence and campus suppression of viewpoints, and stressed that future hearings would continue examining implementation and enforcement issues.

Transcript Highlights:

• Daffodil Festival has been an anticipated event that continues to bring communities together to celebrate unity
• Royal Court serve as role models for youth around our region. ...communities together to celebrate unity

Transcript Highlights:

• Daffodil Festival has been an anticipated event that continues to bring communities together to celebrate unity
• Royal Court serve as role models for youth around our region... ...communities together to celebrate unity

Summary: The Senate met on Monday, February 23, 2006, approved the previous day’s Journal, and handled routine committee and House message referrals. Among the referral actions, Substitute House Bill 2140, concerning land classified under current use sold or transferred to a governmental entity, was sent to the Committee on Ways and Means. Senate Bill 6355, concerning the electric transmission system, was introduced and held at the desk. The chamber then took up several resolutions honoring individuals and community traditions. Senate Resolution 8685 recognized Steve Nelson for 34 years of public service, including his leadership of the Law Enforcement Officers and Fire Fighters Plan Retirement Board; Senator Holy spoke in support, and the resolution was adopted by voice vote. Senate Resolution 8695 honored the Daffodil Festival and its Royal Court in Pierce County; Senators Gildon, Peterson, and Conway spoke in support, and it too was adopted by voice vote. During personal privilege remarks, a senator paid tribute to Paul Brainerd, founder of Aldus and a major figure in desktop publishing and philanthropy, noting his contributions to technology, nonprofit work, and environmental education. The Senate also announced a Rules Committee meeting after adjournment and then adjourned until Wednesday, February 25, 2006.

Transcript Highlights:

• Pearls, and whereas the sorority seeks to cultivate a high scholastic and ethical standard to promote unity
• The Lunar New Year is a time of reflection, renewal, unity, and a moment of honoring our past, celebrating

Transcript Highlights:

• achievements of Korean Americans and reaffirming California's commitment to diversity, opportunity, and unity
• It is a testament to what happens when diverse communities flourish together in unity, celebrating one
• another, and working together for their... ...together in unity, celebrating one another, and working

Transcript Highlights:

• GOD OF PEACE WE PRAY FOR UNITY IN THIS PLACE. UNITY OF PURPOSE.

Transcript Highlights:

• And um I would just mention that uh there's probably some strong support on a bipartisan basis for the
• </c> um some strong support on a bipartisan um some strong support on a bipartisan basis<00:38:12.480
• He said that is no way to govern and is a way to destroy a country and its unity and its economy.
• Yes, I’m glad to hear the acknowledgement of bipartisan support for clean, reliable, affordable energy
• bill that would allow for the bipartisan bill that would allow for the study<01:08:14.480><c> of</c>

Transcript Highlights:

• Grant these leaders today wisdom beyond their own, clarity in the face of complexity, and unity in the
• > clarity in the face of complexity and clarity in the face of complexity and the<00:07:33.520><c> unity
• </c> the unity in the midst of difference. the unity in the midst of difference.

Transcript Highlights:

• </c> the chamber asking for bipartisan the chamber asking for bipartisan support<00:12:53.760><c> for
• in</c><00:15:21.839><c> the</c> received bipartisan support in the received bipartisan support in the
• </c><00:18:34.640><c> ways</c> so we were looking for bipartisan ways so we were looking for bipartisan
• </c><00:18:45.600><c> as</c> pretty decent bipartisan product. as pretty decent bipartisan product. as
• </c><00:58:41.520><c> So,</c> included with a bipartisan vote. So, included with a bipartisan vote.

Transcript Highlights:

• And so courts have articulated this typically through three related tests, often referred to as unities
• So unity of ownership simply asks whether these entities are commonly owned or controlled, whereas unity
• And so when these unities are judged to be present, the state will treat them as part of a single unit
• ... ...these unities are judged to be present, the state will treat them as part of a single unitary

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:

• And so courts have articulated this typically through three related tests, often referred to as unities
• So unity of ownership simply asks whether these entities are commonly owned or controlled, whereas unity
• And so when these unities are judged to be present, the state will treat them as part of a single unit
• These unities are judged to be present, the state will treat them as part of a single unitary group for

Transcript Highlights:

• And so courts have articulated this typically through three related tests, often referred to as unities
• So unity of ownership simply asks whether these entities are commonly owned or controlled, whereas unity
• And so when these unities are judged to be present, the state will treat them as part of a single unit
• These unities are judged to be present, the state will treat them as part of a single unitary group for

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:

• And unity of these 26 families for these 27 girls to effect positive change.
• For this group of Heaven's 27, I am overwhelmed by the unity the 26 families have had.
• And you don't have to worry about a couple of you mentioned bipartisan.