Transcript Highlights:

• . evaluations, flood mitigation projects, and flood management strategies.
• projects.
• And so the rationale behind doing that is flood projects, unlike water projects or wastewater projects
• managers.
• The 2023 Region XI Flood Plan identified more than 200 flood management projects, strategies, and evaluations

Committee: House Disaster Preparedness & Flooding, Select

Transcript Highlights:

• It'll help us perform these critical fuel management projects much faster.
• projects as well.
• And the Coastal Act already has a streamlined process for fire management projects specifically.
• projects as well.
• And the Coastal Act already has a streamlined process for fire management projects specifically.

Summary: The committee heard a long series of bills, beginning with AB 2026 on groundwater recharge. The author and supporters said the bill would streamline permitting for recharge projects, codify long-standing CEQA exemptions for flood diversions to recharge, and add tribal consultation and other guardrails. Water agencies and local districts supported the measure as a way to capture high-flow water and reduce groundwater subsidence, while environmental groups and some irrigation districts opposed it, warning that the bill’s exemptions and broader diversion authority could harm rivers, Delta resources, and public trust values. The bill was discussed but not voted on because the committee lacked a quorum at that point. The committee then took up AB 1577 on data center energy accountability, which would require monthly reporting of energy-use data and permit-related estimates of energy and water demand. The author and the Little Hoover Commission argued the bill would improve transparency, help protect ratepayers, and give regulators better information for grid planning. Data center industry representatives opposed it as duplicative, burdensome, and uniquely targeted, while local governments, environmental groups, and some utilities supported it or supported it if amended. The bill was later reported out with a due pass recommendation once a quorum was established. Members also heard AB 2245 on a producer responsibility program for lubricant products and containers, AB 2170 on CEQA language-access and environmental review protections for overburdened communities, AB 2059 on rural transportation and VMT mitigation, AB 1808 on Western Joshua tree permitting and fee relief, AB 2182 on industrial energy efficiency program changes, and AB 2231 on streamlining two hospital projects. Testimony was mixed on most of these bills: supporters emphasized affordability, local control, environmental justice, or project urgency, while opponents raised concerns about CEQA scope, regulatory duplication, costs, and environmental impacts. Several measures received due pass recommendations and roll-call votes, including AB 2170, AB 2059, AB 1808, AB 2182, and AB 2231, with some members voting no or not voting and some bills left open for absent members.

Transcript Highlights:

• </c> to finance and develop these projects to finance and develop these projects provided<00:05:15.960
• Manager Moroka. No. Recommendation is adopted. And Manager Pierick. And Manager Pierick.
• And manager Elefante, I. And manager Elefante. I. Um, may I take the vote on behalf of the House?
• </c><00:13:56.280><c> is</c> specific income groups the project is specific income groups the project
• </c> preventing the project from proceeding. preventing the project from proceeding.

Bills: HB2241 , HB1163 , HB1514 , HB1696 , HB2021 , SB2135 , SB2466 , SB2727 , SB3082 , SB3097 , SB2861 , SCR100 , SB3096 , SB99 , SB2138 , HB2289 , HB2319 , HB1711 , HB2270 , SB3138 , SB3076 , HB1642 , HB2338 , HB2171 , HB1785 , SB2881 , HB2505 , SB2552 , HB1518 , HB1815 , SB3125 , SB3234 , SCR162 , SB2614 , SB3118 , SB2053 , SB2494 , SB2851 , SB3073 , HB1678 , HB1721 , HB2475 , HB2246 , HB1667 , HB1516 , SB2532 , SB3131 , SB3154 , HB2297 , HB1737 , SB2143 , SB2398 , SB2623 , HB1740 , HB1920 , HB1682 , SB2153 , SB3140 , HB2158 , HB1718 , HB2207 , HB1801 , SB3229 , SB2338 , SB3069 , SB2600 , HB2300 , HB1800 , HB1960 , SB2999 , SB2060 , SB2866 , SB2239 , HB1741 , HB1713 , HB2023 , HB2417 , SB2877 , SB2598 , SB2921 , SB2645 , HB2547 , HB2275 , HB2452 , HB2329 , HB2339 , HB1838 , HB1509 , HB1661 , HB2271 , HB2272 , HB2344 , HB1888 , HB1707 , SB2340 , HB2474 , HB1576 , HB1853 , HB1804 , HB1854 , HB2095 , HB2050 , HB472 , SB3215 , SB2247 , SB2400 , HB1618 , HB1802 , HB1969 , HB1541 , HB2310 , HB2498 , HB2443 , HB2218 , HB649 , HB2104 , HB1710 , SB2802 , HB1973 , HB1974 , HB1894 , HB1891 , HB1890 , SB177 , SB2101 , SB3320 , SB2487 , HB2429 , HB1870 , HB1839 , HB2583 , HB1391 , HB2094 , SB2671 , SB2673 , SB2892 , SB2057 , SB3245 , HB306 , HB2592 , SB3157 , SB3204 , SB3324 , SB2580 , SB2074 , SB411 , SB3025 , SB2934 , SB2567 , SB2125 , SB3238 , SB2367 , SB2599 , SB3007 , SB2001 , SB2756 , SB3029

Transcript Highlights:

• Without knowing what the numbers are, you can't manage it.
• And so, who do you really have managing the district?
• As a landowner, I want the management as close to me as possible because I want it managed effectively
• So any export projects that were...
• The fact that these projects were going to happen.

Bills: HB24 , HB27 , HB24 , HB27

Committee: House Natural Resources

Transcript Highlights:

• prior to their project submission.
• executed by granting state funding for projects and allowing the project...
• Based on the project.
• Some notes on the 2020 projects: the Fairchild REPI project received notice this past week from their
• So now for some project highlights.

Summary: The Joint Committee on Veterans and Military Affairs met to hear updates from Joint Base Lewis-McChord, the Washington Military Department, the Washington Department of Veterans Affairs, and the Department of Commerce on federal and state impacts affecting veterans, military families, and military installations. JBLM’s garrison commander said the base remains focused on housing, child care, and spouse employment, but is facing workforce reductions tied to federal personnel actions, especially in air traffic control, 911 dispatch, and firefighting. He also said JBLM is preparing for increased mutual-aid needs during fire season, and that the Army Transformation Initiative could change unit composition at JBLM over time without a major overall population shift. He confirmed that the Lewis Army Museum is on a closure list, but said the building will remain in use for training and that the base is exploring partnerships to keep museum functions operating, possibly with volunteers or local partners. The Washington Military Department reported about 400 Guard members deployed on federal missions and described ongoing state missions in cybersecurity and firefighting. The department said the Army National Guard’s 81st Stryker Brigade will transition to a mobile combat team, with associated changes in equipment, manning, and end strength. It also warned that continuing resolutions are delaying funding, limiting new military construction starts, and increasing costs. The Washington Department of Veterans Affairs outlined a $3.2 million reduction from the governor’s budget and related cuts affecting internships, vacant positions, outreach travel, claims support contracts, counseling and wellness, veterans’ innovation assistance, and the military transition and readiness council staff position. WDVA said it is ending or scaling back several programs, including in-house nursing assistant training, the veteran farm at Ordean, Vet Corps due to AmeriCorps funding changes, and the tobacco cessation program, while noting that the legislature funded about $23.7 million in capital projects for veteran homes, cemeteries, and transitional housing. The Department of Commerce presented on the Defense Community Compatibility Account, which funds projects that reduce conflicts between military installations and nearby communities. The program currently has 10 projects across five legislative districts, including school and child care improvements, water wells, land acquisition, and a joint firefighting training center in Everett. The presenter said the main challenge is that DCCA projects often need non-state funding secured before they can compete, which can make it hard to leverage federal Defense Community Infrastructure Program dollars; he recommended more flexible state timing to help projects qualify for federal funding. In closing discussion, members raised possible future agenda items including child care near bases, veteran homelessness, suicide prevention, Navy Day, military family housing, and a possible Department of Licensing issue involving guard and reserve designations on driver’s licenses. No formal votes were taken, and the meeting adjourned after members were invited to suggest topics for the October and December committee meetings.

Transcript Highlights:

• They're our owner project representative on the project, and going to start with having Eric walk through
• Joe Stalman with Mocha, owner’s project manager, has two more slides on schedule and budget.
• That’s what we have engaged with our construction manager in GMP project delivery.
• </c> manager in uh con uh GMP project manager in uh con uh GMP project delivery<00:09:24.560><c> is</
• ><c> management</c> for all the design uh project management for all the design uh project management

Transcript Highlights:

• ADCAP is not just a housing project.
• Funding for this project is critical because it will Carbonization project on our Seattle campus.
• In fact, there was one project that.
• And you'll hear from some of the project sponsors of these really exciting projects in following testimony
• We could not fund all the project requests that we received, including $161 million in eligible projects

Bills: SB6003

Committee: Senate Ways & Means

Keywords: capital budget, funding, infrastructure, state projects, budget allocation

Transcript Highlights:

• </c> configured um by our director of project configured um by our director of project management<02:
• huge</c> increase so project management is a huge increase so project management is a huge culture<02
• management in our better project management in our organization<02:28:06.200><c> as</c><02:28:06.319>
• </c> team who's the sponsor who's the project team who's the sponsor who's the project manager<02:33:
• The head of our PMO, project management office, St.

Summary: Finance Division 3 met for a work session on House Bill 519, which concerns funding for Waypoint. The chair noted general support for the organization but said the bill would likely need to be suspended and folded into the budget process because the committee did not yet know available revenues or what amount, if any, could be committed. Kya Fox, director of the Division for Behavioral Health, testified that the department supports the bill and the program, explaining that it had been funded with other available funds, including $100,000 for 2024 and $400,000 for 2025, under a contract running through June 30 of this year. She said the shelter serves a unique population of young adults and is part of the department’s children’s system of care and Mission Zero efforts to reduce barriers to psychiatric discharge and emergency department use. Members questioned Fox and Waypoint representatives about the budget placement of the request, the difference between the efficiency budget and prioritized needs, and whether state budget documents would show any internal Waypoint revenues. Fox said the request appears as a general fund item and that the state would not see Waypoint’s internal financial operations in the budget. A legislative member explained that prioritized needs are critical services already in place but not necessarily included in the efficiency budget, and another member said the distinction is not strictly applied. The committee also raised a separate question about how DHHS would handle any future state or federal restrictions on DEI practices; Fox said that was a question for department leadership and legal staff, but that the department follows state law and contract requirements. Waypoint CEO Bor Alvare and Director Mandy Lancaster then described the shelter and related services. They said the shelter serves ages 18 to 24, is a 14-bed open-room facility with half walls, and is staffed overnight by two full-time workers. They said admission is first come, first served, with some vulnerability factors considered, and that they do not discriminate by race, gender, or sexual orientation. They reported no known incidents of sexual violence, though some youth are turned away each night because the shelter is full. They also explained that Waypoint provides broader services beyond the shelter, including outreach, drop-in centers, housing support, rental assistance, and family mediation, and said they serve about 400 youth and young adults in Manchester alone. The discussion ended with questions about whether lowering the upper age limit would affect the program; Waypoint said most residents are already in the 18-to-23 range, but that housing shortages make the current age span important for helping young adults avoid chronic homelessness.

Transcript Highlights:

• These proposed projects are then evaluated for alignment with our strategic plans, and then projects
• management staff and physical constraints on how many projects can proceed concurrently.
• Construction projects.
• of the remaining funds for modernization projects and 35% for growth projects.
• safety projects.

Summary: The committee’s first major discussion focused on higher education facilities across UC, CSU, and the community colleges, with Chair Alvarez framing the issue as a final budget hearing before the May Revise. The LAO presented findings that campuses have grown substantially in buildings and square footage, while classroom and lab utilization remains below legislative standards and deferred maintenance backlogs continue to rise. The LAO also emphasized that the state and segments lack comprehensive data on capital renewal spending and recommended better reporting, clearer funding targets, and long-term planning for renewal and maintenance. UC, CSU, and community college representatives each described large five-year capital plans, aging facilities, seismic and deferred maintenance needs, and the role of student housing, while noting that construction costs are rising faster than inflation. Members questioned the segments about debt service, utilization rates, and how projects are prioritized. UC said its debt service tied to state support is about $665 million annually and described a $30 billion five-year capital financial plan, including housing, medical centers, and building renewal. CSU said it has about $31 billion in five-year needs and more than $8 billion in deferred maintenance, with funding coming from a mix of state-related and one-time sources since the state shifted capital responsibility to CSU. Community colleges said their unmet facilities needs total about $33.5 billion and explained their use of a scoring matrix and FUSION system to rank projects. The chair and members pressed all three systems to better distinguish between projects that are truly shovel-ready and those that are long-term needs, and discussed whether facilities condition data, total cost of ownership, and more standardized metrics should guide future bond proposals. The committee then turned to Proposition 2 and the Governor’s proposed community college capital outlay projects. The Department of Finance said Prop. 2 provides $1.5 billion for community colleges and that the Governor’s budget proposes 29 projects, with two continuing Prop. 51 projects also included. The LAO supported the overall use of the funds but raised concerns about the current 65/35 split between modernization and growth, the unusually large share of gymnasium projects, and some scoring metrics that favor larger campuses and certain regions. Community college officials said the scoring system was developed through participatory governance and would take one to two years to revise, but they supported the funding and agreed to follow up on questions about project categories and the rationale for the weighting. Members also suggested giving more weight to modernization, regional access, and intersegmental or collaborative projects. A final item addressed the CalKids program. The Department of Finance proposed $56,000 ongoing General Fund for three positions, while the LAO recommended approving two positions but rejecting a manager position until the current $7.5 million marketing campaign is evaluated. ScholarShare’s executive director said CalKids has enrolled more than 5 million children, with nearly 600,000 claims and over $45 million distributed, and argued that additional staff and outreach are needed to reach a goal of 1 million claimed scholarships by the end of 2025 and to implement AB 2808. Members asked about marketing effectiveness, data sharing, and eligibility rules, and the program said it is expanding partnerships with Cradle to Career and CSAC. No final vote was taken in the hearing, and the chair indicated the facilities item would be held open.

Transcript Highlights:

• recommends funding for 21 projects.
• project cost.
• And the total estimated project cost will be $14 million for this specific project.
• That's three years for the project.
• This project combined.

Committee: House House Appropriations & Finance

Summary: The meeting began as an informal education budget work group focused on reviewing a revised House Appropriations and Finance Committee scenario and flagging concerns rather than taking votes. Staff outlined the main changes from the LFC recommendation, including moving the statewide student information system appropriation, adding funding for the Black, Bilingual, Multicultural and Hispanic Education Act, universal school meals overrun costs, an evidence-based CTE pilot with a 50% local match, STEM network funding, wellness room pilots, Martinez-Yazzie action plan items, and changes to innovation zone and out-of-school time appropriations. A separate handout on the seven-year CTE pilot explained spending patterns, reversions, and possible federal maintenance-of-effort concerns if the state continues funding beyond a true pilot. Members then debated CTE extensively, with several arguing it improves attendance, graduation, and career readiness and should be sustained or expanded, especially in rural areas, while staff and others emphasized that much of the current funding has gone to general operational costs rather than intentional program design and that regional or matched funding models may be more effective. Members also discussed STEM and math initiatives, the need for more industry involvement, and whether the proposed match requirements would be too burdensome for smaller districts and BIE schools. The discussion also covered the Black, Hispanic, and Multilingual Education Acts and the Martinez-Yazzie lawsuit. Some members stressed that the acts should be explicitly named in the budget language and not merely implied, while staff said the scenario reaffirms prior commitments by building the costs into agency operating budgets. Members raised concerns about charter school hold-harmless funding, declining enrollment, and the need to align spending with the needs of at-risk students. The work group ended the education portion without any votes, with staff noting they would incorporate the feedback and return with clarifications, including on CTE funding, the educational acts, and the charter hold-harmless item. The meeting then shifted to the child well-being and early childhood work group, where staff presented a revised Early Childhood Education and Care Department scenario. The proposal moved money toward child care assistance and early pre-K, kept the FIT program funding level unchanged, and used a mix of trust fund, TANF, federal, and operating-budget adjustments to close part of the gap between the executive and LFC recommendations. Members questioned the policy direction, especially the shift toward infant and toddler care and pre-K expansion, the impact on school-age child care, and the implications for continuity of care and provider costs. Staff explained that the scenario prioritizes younger children and at-risk families, includes language for a wage and career ladder, and would require legislation to raise the early childhood trust fund distribution cap from 500 to 525. Members also discussed a separate proposed CYFD pilot bill (HB 65), which would be distinct from ECECD funding. No votes were taken, and staff said they would return with more cost information on full pre-K plus wraparound care. A final work group reviewed C2 and Department of Information Technology-related appropriations. Staff compared the LFC and executive recommendations for new funding and reauthorizations, noting that the LFC generally limited new projects while the executive funded more. Members discussed several IT modernization requests, including the Secretary of State’s voter registration and election management systems, the Spaceport Authority, Game and Fish, the State Engineer’s WATERS system, ECECD’s FitKids and EPIC replacement discovery, and Aging and Long-Term Services’ enterprise system modernization. The main themes were whether to fund planning versus full replacement, how to avoid piecemeal spending, and whether new systems should wait for incoming leadership. The Secretary of State’s office said its system is nearing end of life and the planning funds would help prepare a realistic replacement request, while other agencies described aging infrastructure, cybersecurity risks, and the need for modernization. The work group did not vote on any of the items and ended with staff noting additional follow-up on funding needs and reauthorization details.

Transcript Highlights:

• The 2 and 1/2 uh, or sub projects.
• </c><00:10:48.640><c> of</c> developer owner and manager of developer owner and manager of wheelchair
• The Minnesota Management and Budget requested this change because ASI manages the property sites, but
• So once a bond project, always a bond project. So now the dollars cannot go.
• We are near the end of the project.

Committee: Senate Capital Investment

Transcript Highlights:

• </c><00:07:21.080><c> within</c> Improvements or capital projects within Improvements or capital projects
• three other smaller projects that add up three other smaller projects that add up to<00:20:29.720><c
• </c> 1.1 billion dollars worth of projects 1.1 billion dollars worth of projects the<00:20:49.440><c>
• um the the cost of projects have incre um the the cost of projects have incre increased<00:47:57.480>
• </c> to repurpose those funds to projects to repurpose those funds to projects that<01:00:51.160><c>

Summary: The Public Works and Highways committee held a capital budget orientation led by Legislative Budget Assistant Office staff, who walked members through the budget materials, the capital budget process, and the committee’s compare sheet. The presentation explained that agencies begin developing capital requests nearly a year in advance, submit them by May 1, and that the governor’s recommended capital budget is a reduced version of the much larger agency wish list. Members were told the agencies initially requested about $1.1 billion in projects, the catalog was trimmed to just over $400 million in general fund projects, and the governor’s recommendation in the pink book totals about $143 million in general fund capital appropriations. The committee also reviewed the prior capital budget and related statutes and committee procedures. Several specific projects drew discussion. The Department of Education’s CTE projects were explained as having been shifted into the operating budget in the prior cycle and now returning to the capital budget recommendation; members asked whether there was a backup CTE project and whether local approval had been secured for the named project. The Cannon Mountain tramway request was highlighted as a $20 million recommendation, with the presenter explaining that an earlier $18 million appropriation would be lapsed back to the general fund to help balance the budget. The Department of Corrections’ new prison project was also discussed; members were told the state has already appropriated $50 million for planning and site evaluation, but the governor’s current capital budget does not include a new prison construction appropriation because the project is not yet ready for that phase and may need to be funded differently, possibly through a separate, staggered appropriation. State Treasurer Monica Mezzapelli then presented on debt affordability and the state’s borrowing capacity. She said the state’s credit position has improved, with the debt-to-revenue ratio falling from 8.2% in 2015 to 3.8% in 2024, and explained that RSA 6-C limits debt authorization to 10% of unrestricted prior-year revenue. She noted that the Treasury’s planning assumes $60 million in annual bond issuance, with the prison-related $40 million now expected to be issued in 2026 rather than 2025 because the project is not ready to spend the funds. She said the state can still borrow more, but additional debt service must be paid from operating funds, and recommended keeping capital bonding in the $120 million to $130 million range to preserve affordability and the state’s credit rating. Members asked for clarification on the CTE funding shift, the prison schedule, and the meaning of the large agency request totals. The chair and treasurer discussed the governor’s $143 million recommendation versus the committee’s usual target range, and the treasurer said $130 million would be more comfortable than $140 million, with $135 million described as a possible compromise. No formal votes or committee actions were taken in the portion provided; the meeting was informational and ended with the presenters offering to answer follow-up questions as agencies come before the committee.

Transcript Highlights:

• an HOA manager nor an HOA management company is subject to licensing and oversight by any state agency
• HOA manager and management company cannot be held responsible for any activity that the HOA management
• This ensures that HOA managers can no longer exploit a loophole in current law that allows HOA managers
• to managers throughout California.
• to managers throughout California.

Summary: The committee heard several housing-related measures. SB 866 by Senator Blakespear would require jurisdictions that do not receive HAP homelessness grants to include homelessness data strategies and regional coordination in their housing elements. Supporters said the bill would close a planning gap and improve transparency and accountability; opponents, including the League of California Cities and several cities, argued it would impose costly, duplicative reporting requirements and ask cities to collect data outside their control. Members raised concerns about burden on small cities and possible amendments for lower-population or low-homelessness jurisdictions, but no final vote was taken because the committee initially lacked a quorum. SB 967, also by Senator Blakespear, would allow qualifying interim housing units to count toward a portion of a jurisdiction’s RHNA obligation for acutely low-income housing, with safeguards against double counting and reporting requirements. Supporters said the bill would incentivize rapid, dignified interim housing and help move people out of encampments; opponents warned it would blur the line between temporary shelter and permanent housing and could reduce pressure to build deeply affordable permanent units. After extensive debate, the committee reached quorum and voted the bill out on a due pass basis to the Senate Appropriations Committee, with members noting continued work on amendments. The committee also considered SCR 131, a resolution calling for a coordinated state effort to end unsheltered homelessness and prioritize a broad range of interventions, including interim housing, permanent supportive housing, and prevention. Supporters emphasized the scale and urgency of unsheltered homelessness and the need for clearer state goals and funding. One member said the resolution’s language was too broad and abstained, but the author agreed to consider wording changes. The resolution was adopted on a roll call vote and held on call for absent members. Finally, SB 1238 by Senator Wahab would increase oversight and transparency for homeowners associations and HOA managers, including disclosures, reserve-fund rules, and a proposed fiduciary-duty standard. Realtors and homeowner supporters backed the bill as a way to improve accountability, while community-manager groups opposed the fiduciary-duty provision and raised concerns about litigation and insurance costs. Members discussed the reserve-fund language and fiduciary-duty issue, noting that further changes would be considered in the Judiciary Committee; the bill was not yet voted on in this hearing.

Transcript Highlights:

• County and Boyle County projects that County and Boyle County projects that came<00:02:24.040><c> out
• </c><00:14:04.320><c> Many</c> staff and program management. Many staff and program management.
• </c> they will manage about 25 staff members. they will manage about 25 staff members.
• </c> intensive case management with the CDWs. intensive case management with the CDWs.
• The architect has been selected on that project, and construction manager selection is ongoing.

Summary: The Budget Review Subcommittee on Justice and Judiciary received an update from the Administrative Office of the Courts on implementation of House Bill 504, the judicial branch budget, and court facility projects. AOC leaders said they do not anticipate problems balancing the outgoing biennium or fiscal year 2026, and explained that the budget changes were driven by the need to reduce costs while preserving required constitutional, court-rule, and statutory services. They also said the new filing fee increases authorized by HB 504 took effect that day and are expected to generate up to $5 million, while the reorganization is projected to save about $3 million in general fund dollars. The bulk of the presentation focused on a major reorganization of the Office of Statewide Programs, which includes specialty courts, family and juvenile services, and pretrial services. AOC said the plan eliminates 170 positions and creates 109 new ones, mainly by reducing middle-management layers, expanding regional service delivery, and cross-training staff. Officials said 110 employees had already been offered or accepted placements, 24 had chosen voluntary separation, and the final number of employees leaving remains fluid until the process concludes around August 1. They emphasized that specialty court programs were not eliminated, but state-funded treatment court contracts and behavioral health liaison positions were removed, with treatment costs shifted to Medicaid or participants where appropriate. Members asked about the process, staffing impacts, specialty court participation, juvenile services, and how AOC will monitor the changes. AOC said the reorganization was developed by leadership, HR, and legal staff under direction of the Chief Justice and approved by the Supreme Court, and that it is intended to improve efficiency and frontline support rather than reduce services. They said specialty court participant levels are being watched closely, that CDW services will continue to use outside providers for programming, and that the agency will keep judges and stakeholders informed as the new structure goes into effect. No votes were taken, and the committee did not approve minutes because a quorum was not present.

Transcript Highlights:

• the existing water management...
• It ensures the projects are technically sound, coordinated with existing water management strategies,
• So we need to be able to... ...fund this project and have the desal projects capable of getting state
• Project and Webb is constructed.
• We know our projects. We're going to have big water projects coming online. We do the management.

Committee: Senate Water, Agriculture and Rural Affairs

Summary: The committee met with limited attendance at first, then took up a series of water, agriculture, and rural affairs measures. HB 3898 would allow the Texas Water Development Board to provide financial assistance for brackish water desalination projects in certain border counties and related nonprofit suppliers even if the projects are not in the state water plan. Supporters said it is needed to address severe water shortages in places like Webb County and to support future planning; opponents, including the Texas Alliance of Groundwater Districts, argued it bypasses the regional and state water planning process. The bill was left pending after testimony. The committee also heard HB 5339, which would create a higher-education grant program for regenerative agriculture research. A rancher testified that regenerative methods improved soil health, water retention, and farm viability, while a senator noted existing university research but said better coordination could help. Public testimony was closed and the bill was left pending. Members then heard HB 1523, a temporary prohibition on TCEQ issuing Austin a Class 5 injection well permit for an aquifer storage and recovery project in Bastrop and Lee counties until December 2027. Local officials from Bastrop supported the pause, citing unanswered questions about water treatment, recovery rates, and impacts on the aquifer, while Austin Water opposed the substitute, saying the project is central to its long-term water plan and that stakeholder talks were already underway. TCEQ explained its ASR permitting process and said public participation is possible but not always used in the current authorization process. The bill was left pending. HB 5659, concerning the Northeast Texas Municipal Water District and requiring majority city-council approval before certain water sales or interbasin transfers, drew testimony from district officials who said the change could interfere with existing contracts and district authority, but the chair emphasized the need for local buy-in and said the stakeholders had reached a workable compromise; testimony was closed and the bill was left pending. The committee also heard HB 1690, which would expand notice requirements for groundwater export permits so neighboring landowners and potentially affected aquifer areas are informed by certified mail and publication. The sponsor tied the bill to impacts from the Vista Ridge project, and no one testified against it; it was left pending. HB 3333 would prohibit TCEQ from issuing new wastewater discharge permits directly into the Devils River in Val Verde County. The sponsor and a conservation witness said the bill protects one of Texas’s most pristine rivers and reflects a local stakeholder agreement, while TCEQ said it can ensure water quality but acknowledged the river’s unique sensitivity; the bill was left pending. The committee also heard HCR 108 urging continuation of the U.S.-Mexico tomato suspension agreement, with supporters warning of major Texas job and consumer-price impacts if it ends, and HCR 76 urging federal action on imported shrimp, citing public health and industry concerns; both were left pending. Additional measures heard and left pending included HB 4158 on compensation for Texana Groundwater Conservation District directors, HB 654 creating a dismissal path for certain first-time deer hunting violations after self-reporting and hunter education, HB 4530 requiring Texas Water Development Board review of groundwater rights placed in the Texas Water Trust, HB 2128 directing a study of rural versus urban firefighting and rescue disparities, and HB 278 requiring groundwater districts and management areas to track progress toward desired future conditions over shorter intervals. On HB 278, witnesses split over whether the bill’s interim tracking would improve accountability or create new triggers that could be used against local districts, but no final vote was taken and the bill was left pending.

Transcript Highlights:

• In terms of the management of the fund, as Representative Garcia mentioned, this would be managed by
• with their projects.
• Then we get the planning dollars out the door, and if it's a project-ready project, then we can go to
• be drawn down from those project funds to pay for whatever the project is.
• Since then, the Interstate Stream Commission has managed to approve more projects.

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• , which would be the first large reservoir project in a generation; and open space projects that are
• It's what's called a beneficiary-pays project. So the water agencies... ...taxpayer-funded project.
• Our State Water Project... Our State Water Project, south of the Delta, needs help.
• Project.
• those 20 projects are.

Summary: The Senate Budget Subcommittee on Resources, Environmental Protection, and Energy convened for its first hearing and heard an overview from the Legislative Analyst’s Office and the Natural Resources Agency. The LAO emphasized California’s strong current revenues but warned of a structural budget problem, projected out-year deficits, and the need for a high bar on new spending. It generally supported the administration’s Proposition 4 spending plan as reasonable and consistent with bond requirements, while urging legislative oversight and caution about using special funds and adding ongoing commitments. Secretary Wade Crowfoot responded with an overview of climate, wildfire, water, coastal, and conservation challenges and highlighted progress under the Newsom administration, including clean energy growth, wildfire resilience investments, land conservation, tribal co-management, and outdoor access initiatives. He also discussed federal staffing cuts affecting California’s response capacity and said the state has had to fill gaps in flood forecasting, land management, and park access. Members then questioned the secretary about the Delta conveyance tunnel and broader water reliability issues. Crowfoot said the project remains important, is being pursued as a beneficiary-pays project, and is moving through the State Water Resources Control Board’s permitting process, while also stressing that it is only one part of a broader water strategy that includes levee strengthening, subsidence, groundwater storage, recycling, and conservation. Senators also raised concerns about permitting delays, invasive species, and the impact of position cuts on agency capacity; Crowfoot said streamlining is needed but that staffing remains essential. The committee then moved to the Department of Parks and Recreation, where Director Armando Quintero described the state park system, tribal agreements, wildfire and deferred maintenance work, and outdoor access programs such as the State Library Park Pass and Adventure Pass. The LAO recommended rejecting the proposed ongoing $6.75 million General Fund transfer for the library park pass, arguing it did not meet the high bar for new ongoing spending, but several senators strongly supported the program as a low-cost way to expand access. Members also pressed Parks on reservation system problems and campsite no-shows. Department staff said they are updating website guidance, working with the reservation vendor, and implementing new no-show and reservation-modification rules effective July 1, including penalties for repeated no-shows and immediate reopening of vacant sites. The committee then heard a low-cost accommodations proposal, which Parks said would fund planning and construction at several sites using Proposition 68, reimbursements, and donations; the LAO said it had no concerns. Finally, the new director of the Department of Fish and Wildlife, Megan Hurdle, introduced herself and outlined the department’s mission, staffing, service-based budgeting, and Proposition 4 requests, including funding for salmon genetic tagging, hatchery repairs, and public access improvements. She said the department is focused on biodiversity, permitting streamlining, law enforcement, and human-wildlife conflict prevention, and noted that the agency is still updating its service-based budgeting analysis to identify gaps and priorities.

Transcript Highlights:

• Chairman, members of the committee, my name is Justin Data, and I head up the project management office
• The next one, Medicaid Management Information System Modernization Program System Integrator Project,
• We have RIO's investment management systems strategy project, also under budget and ahead of schedule
• For finance, EPM, and projects. So EPM stands for enterprise performance management.
• Project management, organizational change management—huge. OCM, I can't explain.

Committee: Joint Information Technology Committee

Transcript Highlights:

• are, these are projects that they're not one-and-done projects.
• are, these are projects that, they're not one and done projects. these projects are, these are projects
• of where all the different projects are the different plan projects so that we can get a better sense
• But when you group those projects, it allows you to measure how they... Projects.
• “Projects. Yeah, no, I appreciate it.

Summary: The joint Senate hearing focused on California wildfire resilience funding, the SB 254 report on natural catastrophe resilience, and how the state should better prioritize community hardening, recovery, and financing. Senators emphasized that catastrophic wildfires have driven major property losses, insurance cancellations, and affordability problems, and several members argued that prevention and home/community hardening should receive far more attention than they have to date. Members also raised concerns about CEQA and other permitting delays, the need for ongoing rather than one-time funding, and whether the state should rely more on the General Fund, utilities, or other sources such as polluter-pays approaches. The Legislative Analyst’s Office said the state has appropriated about $4.7 billion for wildfire resilience since 2018-19, with most funding going to forest health, fuels reduction, and related landscape work, while only about $65 million has been specifically targeted to community hardening. LAO also noted that future one-time funding is likely to decline, that GGRF revenues may be limited under the new cap-and-invest structure, and that maintenance costs for treated areas could be substantial over time. Senators pressed LAO on why wildfire resilience is not more often funded through the General Fund and on whether current spending matches the scale of the risk. Cal Fire’s State Fire Marshal described the state’s community wildfire preparedness strategy, centered on home hardening, defensible space, and neighborhood-scale mitigation, and said the SB 254 report aligns with Cal Fire’s direction. He said California has roughly 4 million homes in the wildland-urban interface, most built before modern wildfire-resistant standards, and highlighted recent streamlining that approved 383 fuels-reduction projects in under 30 days during an emergency proclamation. Cal OES described the AB 38 pilot and FEMA hazard mitigation work, saying federal approval delays have been a major barrier and that the state has hardened 155 properties so far through the pilot, with many more in process. The Wildfire and Forest Resilience Task Force said the state has coordinated more than $6 billion in state and federal investments, treated over 700,000 acres annually, and is shifting toward more regional, data-driven planning and block grants. Task force staff and Cal Fire both said they are moving beyond simple acreage metrics toward models that estimate avoided loss and community risk reduction, but acknowledged major data gaps on parcel-level home hardening and defensible space. No formal votes were taken; the hearing was informational, with members discussing possible future legislation and budget changes, including home inspection reforms and continued CEQA streamlining.

Transcript Highlights:

• So this has really been that our managers and our internal team, our cash... ...that our managers and
• So those performance fees to GPs, you know, like infrastructure managers and private equity managers
• and some public market managers perform so well... ...and some public market managers perform so well
• An external manager in equity's example would have fees around 27 basis points; a fixed income manager
• If I may just continue: you know, some of these projects, the commercial infrastructure projects, are

Committee: Joint Legacy and Budget Stabilization Fund Advisory Board

Summary: The committee met with a quorum, approved the October 22 minutes, and received an update on the planned Legacy Fund transparency website. Jody Smith said the site is in contract negotiations after six bidders responded, with a target go-live around November 1 after added security review. The website is intended to provide downloadable, more detailed public information on the Legacy Fund, including historical changes, legislative allocations, and investment breakdowns. Members asked about comparables and data detail, and Smith said North Dakota would likely be the first state to offer this level of sovereign wealth fund transparency. Scott Anderson of the Retirement Investment Office then reviewed Legacy Fund performance through January 31, 2026, describing strong returns, low fees, and the benefits of diversification. He noted that real estate had been a drag on returns, but it is a small portion of the portfolio, and he discussed market effects from geopolitical events, inflation, credit spreads, and private credit. Members also questioned the in-state investment program and the BND CD-Match program. Representative Bosch moved to pause new transfers to the CD-Match program until the bank reports back, and the motion passed on a roll call vote. The committee also agreed to request a cost-benefit analysis from RVK on that change. After lunch, the committee heard from RVK consultant Jim Voidko on the investment policy statement, focused on the in-state investment provisions. He reported that, after interviews with implementers and stakeholders, RVK found no major policy impediments in the current IPS and no strong calls to change the size limits or core guardrails. He emphasized the importance of risk-adjusted returns, diversification, pacing, exit strategies, and governance, and warned that foregone returns or higher spending obligations can pressure the fund’s long-term mission. He also recommended clearer terminology around “infrastructure,” distinguishing public infrastructure from commercial infrastructure, and noted unresolved policy questions about nexus and economic diversification. The committee then began reviewing proposed IPS updates with Rio staff.