Transcript Highlights:

• . >> Chair McClain: DAVID CRUZ? YOU ARE RECOGNIZED. >> DAVID CRUZ FLORIDA LEAGUE OF CITIES.
• I AM FORMER COUNTY COMMISSIONER OF SANTA ROSA COUNTY.
• STUDY WHERE WE COMPARED OUR CLEANUP DATA FROM TWO RIVERS AND ALLOWED SOME OF THE CONTAINERS IN THE SANTA
• ON THE SANTA FE THAT YEAR WE REMOVED 11,000 POUNDS OF TRASH WHILE IN RAINBOW 60 POUNDS AND ON THE SUWANEE
• SANTA FE THERE ARE NO REGULATIONS IN PLACE, I KNOW THAT BECAUSE I PICK UP GARBAGE EVERY DAY ON MY TOURS

Transcript Highlights:

• San Francisco Bay Area Water Emergency Transportation Authority, San Mateo County Transit District, Santa
• Cruz Metro, and SunLine Transit Agency, all in support.
• Francisco Bay Area Water Emergency Transportation Authorities, San Mateo County Transit District, Santa
• Cruz Metro, and Sunline Transit Agency, all in support.

Summary: The Assembly Public Safety Committee met to consider several bills, with six measures approved on consent, including bills on background checks, female offender prison facilities, a juvenile justice hunger survey, protective orders and firearms, a youth offender camp pilot, and peace officer behavioral health training. AB 710 and AB 848 were pulled by the authors. The committee also took up AB 458, AB 394, AB 1094, AB 1092, and AB 1036, with extensive testimony on each. AB 458, by Assembly Member Stephanie, would require state agencies purchasing firearms, ammunition, or accessories to vet vendors for compliance with firearms laws and procurement standards. Supporters, including Brady and the California Police Chiefs Association, said taxpayer funds should not go to dealers with serious violations; opponents argued the bill added burdens and vague standards. The committee approved the bill as amended and sent it to Appropriations. AB 394, by Assembly Member Wilson, would expand protections for transit workers and riders by broadening enhanced battery penalties, clarifying who may seek temporary restraining orders in the transit context, and making those orders system-wide. Transit agencies, labor groups, and law enforcement supported the bill, while public defender and civil liberties groups raised concerns about vagueness, duration, and impacts on access to transit. The committee passed AB 394 to Judiciary as amended. AB 1094, by Assembly Member Baines, would raise the minimum parole eligibility term for child torture convictions involving a child under 14 in the perpetrator’s care or custody from seven years to 20 years. Prosecutors, sheriffs, and police groups supported the bill, citing the severity of the abuse and the need to protect child victims; opponents argued the parole system already screens for risk and that harsher sentences do not improve public safety. The committee approved the bill as amended to Appropriations. AB 1092, by Assembly Member Castillo, would extend concealed carry weapon license renewals from two years to four years; supporters said it would reduce costs and administrative burdens, while the chair and others opposed it as unnecessary. The committee ultimately voted the bill down. AB 1036, by Assembly Member Schultz, would expand post-conviction discovery access for people convicted of felonies with sentences of one year or more, including Brady materials and jury selection notes. Innocence organizations and defense groups supported it, while district attorneys opposed the broader discovery obligations; the committee passed it to Appropriations as amended.

Transcript Highlights:

• San Francisco Bay Area Water Emergency Transportation Authority, San Mateo County Transit District, Santa
• Cruz Metro, and SunLine Transit Agency, all in support.
• Francisco Bay Area Water Emergency Transportation Authorities, San Mateo County Transit District, Santa
• Cruz Metro, and Sunline Transit Agency, all in support.

Committee: House Public Safety

Summary: The Assembly Public Safety Committee heard several bills and adopted a consent calendar of six measures, including bills on background checks, female offender prison facilities, a juvenile justice hunger survey, protective orders and firearms, a youth offender camp pilot, and peace officer behavioral health training. AB 710 and AB 848 were pulled by the authors. The committee also took up AB 458, AB 394, AB 1094, AB 1092, and AB 1036, with extensive testimony on each. AB 458, by Assembly Member Stephanie, would require state agencies buying firearms, ammunition, or accessories for law enforcement to vet vendors for compliance with firearms laws and procurement standards. Supporters, including Brady and the California Police Chiefs Association, said it would prevent taxpayer dollars from going to irresponsible dealers; opponents argued it imposed unnecessary bureaucracy and vague standards. The bill passed the committee on a due-pass-as-amended vote to Appropriations. AB 394, by Assembly Member Wilson, would expand protections for transit workers and riders by clarifying battery penalties, allowing restraining orders in the transit context, and making those orders system-wide. Transit agencies, labor groups, police chiefs, and other supporters backed the measure, while public defenders and civil liberties groups raised concerns about clarity, judicial discretion, and impacts on riders who rely on transit. The bill passed unanimously to Judiciary. AB 1094, by Assembly Member Baines, would raise the minimum parole eligibility term for child torture cases from seven to 20 years; supporters emphasized the severity of the abuse and the need for stronger accountability, while opponents argued the parole system already screens risk and that prevention would be more effective. It passed to Appropriations. AB 1092, which would extend concealed carry permit renewals from two to four years, drew support from gun rights groups and sheriffs but was opposed by the chair, who called it a solution in search of a problem; the bill failed. AB 1036, by the chair, would expand post-conviction discovery access for people serving felony sentences of one year or more, including Brady material and jury selection notes; innocence organizations supported it, while district attorneys objected that it was too broad and burdensome. It passed to Appropriations, with members noting ongoing negotiations over amendments.

Transcript Highlights:

• And with me to testify is Susie Meriam from the Development Director of the Housing Authority of Santa
• Cruz County and Jessica Kwan, Director of Occupancy and Housing Compliance, the Housing Authority in
• And with me to testify is Susie Meriam, Development Director of the Housing Authority of Santa Cruz County
• Similarly, programs in Los Angeles County, Santa Clara County, Denver, and New York all provide long-term

Summary: The committee heard a long agenda of housing-related bills, beginning with AB 249, which would require youth-specific coordinated entry assessments for homeless services. The author and supporters from Larkin Street Youth Services and the California Coalition for Youth argued that current vulnerability tools are adult-focused and can disadvantage young people; the bill was described as a developmentally appropriate fix to better connect youth to housing and prevention services. There was no opposition, and the bill passed 7-0 to Human Services. Members then heard AB 239 and AB 1206. AB 239 would create a state-led disaster housing task force, a state disaster housing coordinator, and regular legislative reporting to speed recovery after disasters; it passed 7-0 to Emergency Management. AB 1206 would let local agencies pre-approve plans for single-family and small multifamily homes of up to 10 units to reduce permitting delays and costs; the League of California Cities opposed it unless amended, citing local variation and staffing concerns, but the author and supporters said it would preserve local control and help speed housing production. The bill passed 9-0 to Local Government. The committee also took up AB 57, which would reserve at least 10% of California’s home purchase assistance funds for descendants of formerly enslaved people. Supporters framed it as reparative justice and a way to address longstanding racial disparities in homeownership, while Pacific Legal Foundation argued it likely violated constitutional limits on race-based government action and urged a race-neutral approach. After discussion about reparations criteria and the bill’s intent, it passed 6-0 to Judiciary. The consent calendar, including AB 480, AB 726, and AB 1154, was approved 8-0. Later, AB 282 was heard to allow housing providers to prefer applicants who participate in rental assistance programs, such as Housing Choice Vouchers, despite existing source-of-income discrimination law. Supporters said it would help voucher holders find units and improve affordable housing operations; no opposition testified, and the bill passed 6-1 to Judiciary. AB 1229 followed, restructuring the adult reentry grant program to focus on permanent housing for people leaving prison by moving administration to HCD and using regional administrators; supporters emphasized the link between housing stability and reduced recidivism, and the bill passed 7-0 to Public Safety. The committee then approved AB 670, which would let local governments count preservation of naturally occurring affordable housing toward housing element goals and require better demolition reporting, and AB 750, which would strengthen oversight and reporting for homeless shelters after a prior reporting law saw very low compliance. AB 670 passed 8-0 to Local Government, and AB 750 was presented with testimony from a shelter resident describing abuse and lack of accountability in shelters.

Transcript Highlights:

• hall meeting to publicly discuss a $21 million budget deficit, and the town hall was covered in the Santa
• That's the equivalent of a campus about the size of Santa Cruz, which is 20,000 students.
• Riverside has room to grow, and Santa Cruz has some room to grow there, but space is constrained, so

Transcript Highlights:

• together in Santa Cruz, inspired to serve by his legacy and the spirit of Mike Rothkin.
• </c><02:11:42.079><c> But</c> anyone in the history of Santa Cruz.
• But anyone in the history of Santa Cruz.
• </c><02:12:16.159><c> Cruz</c><02:12:16.480><c> community</c> although we in the Santa Cruz community
• </c> today just as we stand together in Santa today just as we stand together in Santa Cruz,<02:12:22.320

Bills: HCR39 , HR275 , HR875

Keywords: social work, mental health, community health, social justice, addiction support, veteran assistance, child welfare, disability rights, intellectual disabilities, inclusion, The Arc, community support

Transcript Highlights:

• Susan Salcedo, Santa Barbara County Superintendent of Schools. Dr.
• Susan Salcedo, Santa Barbara County Superintendent of Schools. Thank you so much.
• Eight years ago, I led a team that brought scalp cooling to our practices in Santa Barbara.
• I'm Susan Salcido, and I serve as the elected Santa Barbara County Superintendent of Schools.
• Cruz County Board of Supervisors, in support.

Summary: The Assembly Health Committee heard a long agenda of health-related bills, with most items presented for later vote once quorum was reached. Early in the hearing, the committee adopted a consent calendar of multiple bills with motions for due pass to Appropriations, and it noted that AB 2029 had been pulled from the agenda. The committee also took up AB 1973, a bill by Aguiar-Curry to expand who may provide procedural abortion care. Supporters, including physicians and certified nurse midwives, argued the bill would align law with current training and improve access, while opponents said later-term abortion procedures require physician-level surgical training and raised safety concerns. The author emphasized hands-on training, consultation, and transfer protocols, and the bill was held pending quorum with a motion and second recorded. The committee then heard AB 1558 by Arambula, which would adopt the Uniform Emergency Volunteer Health Practitioners Act to speed the use of out-of-state licensed volunteers during declared disasters. Supporters from the Uniform Law Commission and the Red Cross said the bill would reduce delays and clarify legal authority for volunteer health workers; there was no opposition testimony. AB 2282 by Alanis, a temporary rural emergency stabilization center for Patterson while a permanent hospital is built, drew support from local emergency responders and a late opposition from the California chapter of ACEP. The chair praised the bill as a creative local solution and agreed to coauthor it; a motion and second were recorded, with the vote to occur later. Several public health access bills followed. AB 1843 by El-Hawari would limit prior authorization and align hepatitis C treatment coverage with medical guidelines; supporters said it would remove barriers to a curable disease, while health plans opposed it as a mandate, citing premium impacts and the recent SB 306 prior-authorization process. AB 2247 by El-Hawari would create the THRIVE program for mental health services for youth affected by gun violence; Youth Alive and other supporters described trauma-informed, community-based care, and the chair and another member asked to be added as coauthors. AB 2138 by Krell would expand access to certified peer support specialists in enhanced care management and remove automatic disqualifications based solely on criminal history; supporters said peers are essential to engagement and recovery, and the bill was held with a motion and second. Later, AB 1682 by Hart would require coverage of scalp cooling for chemotherapy patients, with emotional testimony from cancer survivors and clinicians; insurers opposed it as another mandate, but the author stressed the modest per-member cost and the bill was moved with a motion and second. AB 1879 by Dixon would standardize data reporting for alcohol and drug treatment facilities, including private providers, to improve statewide information on outcomes and access; the bill drew broad support from recovery organizations and the prior opposition was withdrawn after amendments. AB 1906 by Aguiar-Curry would require coverage of at-home cervical cancer screening kits without cost sharing; supporters cited improved access for rural and working Californians, insurers opposed it on affordability grounds, and the bill passed on a recorded roll call after quorum was established. Finally, AB 1556 by Haney would clarify and support drug-free recovery housing and return-to-use policies; supporters said it would expand sober housing options, while opponents warned it could allow evictions after relapse and conflict with Housing First principles. The hearing ended with the bill still under discussion and opposition-unless-amended concerns noted.

Transcript Highlights:

• Susan Salcedo, Santa Barbara County Superintendent of Schools. Dr.
• Susan Salcedo, Santa Barbara County Superintendent of Schools. Thank you so much.
• Eight years ago, I led a team that brought scalp cooling to our practices in Santa Barbara.
• I'm Susan Salcido, and I serve as the elected Santa Barbara County Superintendent of Schools.
• Cruz County Board of Supervisors, in support.

Committee: House Health

Transcript Highlights:

• higher-cost counties: Alameda, Marin, Monterey, Orange, San Diego... ...San Francisco, San Mateo, Santa
• Clara, and Santa Cruz, just to name a few.
• In Santa Clara County, the Home Safe Program has served nearly 400 APS-referred older adults.
• I'm the CEO of Community Bridges, serving Monterey, San Benito, and Cruz counties, and an operator of
• Good evening, Chair George Cruz with the California Behavioral Health Association.

Summary: The Assembly Budget Subcommittees held a joint hearing on older adults and long-term care supports and services, with members and witnesses focusing on the growing “forgotten/overlooked middle” of Californians who are too wealthy for Medi-Cal but unable to afford long-term services and supports (LTSS). Administration witnesses from DHCS and the Department of Aging described Medicare’s limited long-term care coverage, Medi-Cal’s role for low-income residents, and ongoing state work on LTSS financing, including a 2024 financing initiative and a final report due in 2026. Testimony emphasized rising costs, caregiver shortages, homelessness among older adults, and the need to preserve home- and community-based services to avoid more expensive institutional care. Several advocates urged immediate action, especially Medi-Cal share-of-cost reform, housing supports, and protection of HCBS funding. Members asked for the most urgent budget priorities and were told to focus on share-of-cost reform and assisted-living rate protections, along with broader system navigation and caregiver support. The committee also heard testimony on the Community-Based Adult Services (CBAS) program. CDA reported that CBAS serves about 42,000 participants through 304 centers, with demand generally stable but geographic gaps in some regions and staffing challenges after the pandemic. DHCS explained a rate-setting issue: a 10% CBAS rate increase had been mistakenly posted on the Medi-Cal fee schedule in 2024, and while Proposition 35 later made the targeted SB 159 rate increase inoperative, DHCS said any repayment by managed care plans would depend on contract terms and the department would not require clawbacks. CBAS providers and advocates warned that the program is in a financial crisis, with six center closures since June 2024, and requested $74.8 million ongoing General Fund to close about half the gap between current reimbursement and costs. Members expressed concern that clawbacks could accelerate closures and noted the program’s role in preventing institutionalization and supporting family caregivers. In the final panel, CDSS presented on In-Home Supportive Services (IHSS) provider recruitment and retention and on the AB 102 statewide bargaining report. CDSS said the IHSS Career Pathways program has concluded successfully, with more than 59,000 providers completing training, and that the AB 102 report—based on workgroup meetings and consultant analysis—will be sent to the Legislature shortly. The department said the workgroup viewed statewide bargaining as more viable than regional bargaining, but identified major issues around consumer participation, county fiscal impacts, administrative responsibilities, and the need to define bargaining scope in statute. CDSS estimated that each $1 per hour statewide wage increase would cost at least $1.3 billion to $1.5 billion annually. Provider unions supported statewide bargaining, arguing it would improve wages, benefits, and workforce stability, while county representatives said any statewide model should preserve consumer focus, protect county finances and realignment funds, and keep core administrative functions with local public authorities. The hearing concluded without votes, with members requesting additional follow-up information and urging continued engagement ahead of the May revise.

Transcript Highlights:

• Our colleague from Santa Clarita raised a very important issue.
• Our colleague from Santa Clarita raised a very important issue.
• I represent Santa Ana, Anaheim, Garden Grove, La Habra.
• members because over the holidays, 157 individuals had been detained from Santa Maria in northern Santa
• But I want to wind back to the last Republican governor, as the Senator from Santa Cruz did as well.

Transcript Highlights:

• Chairman Cruz. Here. Present. Representative Bamberg. Present. Representative Schassel.
• We don't do that in our committee, but thank you, Representative Cruz.
• Thank you, Chairman Cruz. Go ahead on your bill.
• And I have to mention, great job, all green cards, Chairman Cruz.
• Thank you, Representative Cruz. And on closing again. Thank you, Representative Cruz.

Summary: The Labor and Industrial Relations Committee first took up House Bill 680 by Rep. Weibel, which proposes a major overhaul of Louisiana’s workforce development system. The bill and a large amendment package were described as modernizing workforce planning, consolidating some state-level strategy and administration, and strengthening coordination with local workforce partners, employers, and regional stakeholders. A transition advisory team with an 18-month sunset was added to help implement the changes, and members repeatedly raised concerns about preserving local input for different regions, parishes, and cities. Rep. Weibel, the secretary of Louisiana Works, parish officials, and other supporters said the goal is to shift more resources from overhead to training and direct services while keeping local boards and parish involvement in place. Testimony from a Utah official and from local government and business representatives emphasized that similar consolidations can create efficiencies without eliminating local responsiveness. The committee adopted the amendments and then reported HB 680 with amendments. The committee then heard House Bill 780 by Rep. Furman on workers’ compensation. The bill seeks to streamline disputes over compensation and medical benefits, reduce litigation, and lower costs by restoring an expedited preliminary determination process and changing the standard for penalties and attorney fees to an arbitrary-and-capricious standard. Supporters, including lobbyists and defense attorneys, argued that the current process is outdated, overly technical, and too litigious, especially because adjusters now often work remotely and the statute still relies on fax and certified-mail procedures. They said the bill would speed up decisions, reduce unnecessary attorney-fee claims, and help employers and injured workers alike. Opponents, including attorneys for injured workers, argued the bill would make it harder for workers to recover penalties when benefits are delayed, shift the burden in favor of insurers, and fail to address understaffing and defense costs. Members debated whether the bill’s new standard should replace the current “reasonably controverted” language; an amendment to restore that language was offered but opposed by the author and other members and was not adopted. The committee adopted technical amendments and other committee amendments, heard additional testimony, and continued debating the bill’s substantive changes.

Transcript Highlights:

• It's the sheriff of Santa Cruz County. Well, thank you, Senator Laird, for moving that one.
• In January, the operator of Santa Anita Park installed more than two dozen racing-on-demand machines,
• And I was born and raised right above Santa Anita, a few blocks away.
• And serve California, all of California, not just Santa Anita.
• At Santa Anita. And he is one of the most successful trainers.

Summary: The Senate Committee on Rules convened with a quorum and first took up several governor’s appointments not required to appear. It approved Paulette Brown Hines, PhD, to the California Transportation Committee, Christopher Clark and Maggie Hallahan to the Board of State and Community Corrections and Boating and Waterways Commission respectively, Kent Sasaki to the Building Standards Commission, and Danielle N. Munoz to the Board of Barbering and Cosmetology, with one appointment receiving a 3-1 vote and the others passing unanimously or 5-0. The committee also approved a reference of bills to committees by a 5-0 vote. The committee then heard Tanya Pacheco Warner, PhD, for reappointment to the San Joaquin Valley Unified Air Pollution Control District Board. She described her public health background, her family’s experience with asthma, and her work on agricultural burning phase-outs and AB 617 community efforts. Members questioned her about the cumulative economic impact of air rules on Valley agriculture, mobile-source emission strategies, the FARMER tractor replacement program, collaboration with fellow board members, and how to communicate climate and air-quality risks to the public. After public comment, her appointment was approved 4-0 and sent to the full Senate. Next, the committee considered three reappointments to the California Horse Racing Board: Dennis Alfieri, Damascus Castellanos, and Thomas Hudnut, J.D. The nominees emphasized horse and rider safety reforms, reduced equine fatalities, the impact of Golden Gate Fields’ closure on Northern California racing, and the need for new revenue sources and possible legislative support to strengthen purses and keep the industry viable. Senators pressed them on safety, HISA relations, gambling-related revenue options, and the decline of racing in the North. Public witnesses from the racing industry supported the nominees, and all three appointments were approved 3-0. Finally, the committee heard Julie Lee and Ann Patterson, J.D., for the Delta Stewardship Council. Both stressed the Delta’s importance to statewide water reliability, ecosystem health, and climate adaptation, and highlighted the council’s science program, performance metrics, and community engagement efforts. Senators asked about the co-equal goals, the role of science and social science in building trust, the council’s future mission, and how to communicate climate impacts such as sea-level rise and salinity intrusion. The hearing continued into discussion of balancing water supply and ecosystem protection, with the members framing the Delta as a statewide system requiring coordinated management.

Transcript Highlights:

• Cruz and Irvine.
• Let's take, for example, the Santa Barbara proposed project is $640,000.
• On the Santa Barbara project, the distinction is far greater.
• You gave me the total of Santa Barbara.
• And at Santa Barbara, it's 240? 240.

Transcript Highlights:

• In addition, on behalf of the Land Trust of Santa Cruz County and the Conservation Fund, we'd like to
• Delaney Hunter, on behalf of the Santa Clara Valley Transportation Authority, the San Bernardino County
• I'm reading a statement from Leah Stokes, a professor at UC Santa Barbara who was unable to be here today
• , extreme heat disrupted school for roughly half a million students in Los Angeles, San Diego, and Santa

Summary: The Assembly Budget Committee held a weekend informational hearing on the final 2026-27 budget package, with no votes taken. The Department of Finance presented 16 bills, including two budget bill juniors and 14 trailer bills, covering climate bond and greenhouse gas reduction fund appropriations, health care, education, housing, labor, transportation, wildfire mitigation, and technical cleanup items. Major items included funding for Proposition 4 climate programs, a state-only dialysis program for restricted-scope Medi-Cal enrollees, 988 crisis center governance and interoperability with 911, CalFood, child nutrition, workforce and housing programs, and a package of film tax credit changes. Trailer bills also addressed TK-12 and higher education technical changes, developmental services, early education, the 2028 Olympics, transmission projects, wildfire mitigation tax exclusions, and other implementation fixes. Members highlighted several provisions, including the extension of CalSHAPE deadlines for school HVAC projects, funding for geothermal and wildfire prevention, restoration of goat herder wage parity to support prescribed grazing, and support for state scientists’ labor contracts. There was also discussion of trauma recovery and training funding for women’s prisons, 988 and LGBTQ+ youth crisis services, and the need to address county indigent care and AB 85 technical issues in the future. Public commenters largely praised funding for transit, housing, food assistance, air quality programs, and film tax credit fixes, while some expressed disappointment over the lack of funding for part-time faculty office hours, county indigent care technical corrections, expanded immigrant food assistance, and additional support for certain health and energy programs. A major point of contention in public testimony was SB/AB 194, with one group opposing it as a threat to a Los Angeles street safety project near Forest Lawn Avenue, while supporters argued it was needed to ensure a transparent public process for roadway changes affecting cemetery access and traffic. Other commenters supported or criticized specific budget items such as GGRF allocations, CalSHAPE, the Demand Side Grid Support Program, the FARMER program, and funding for regional housing and transit agencies. The chair closed by thanking members, staff, and the public, noting the committee’s work over two years and indicating the package would move to floor action the following week.

Transcript Highlights:

• Members, I respectfully ask, on behalf of the chair member from Santa Monica, with many people having
• Members, I respectfully ask, on behalf of the chair member from Santa Monica, Their community.
• Members, I respectfully ask, on behalf of the Chair member from Santa Monica and myself, to join us in
• So, those stories—when I tell these stories, and my colleague from Santa Monica had the same stories—traveled
• Chenea Coats with So Visible and George Cruz with the California Behavioral Health Association.

Summary: The Assembly met with a quorum call at the start, then proceeded with Black History Month observances, including a libation ceremony, the Pledge of Allegiance, and remarks emphasizing remembrance, ancestry, and the importance of honoring Black history. The chamber also handled routine procedural matters, including dispensing with the journal, re-referring certain Senate budget items to the Budget Committee, and allowing guest introductions and other unanimous-consent requests. The main floor action was on Assembly Concurrent Resolution 134, recognizing Black History Month. Members from multiple caucuses spoke in support, highlighting the historical contributions of Black Americans, the ongoing effects of slavery and segregation, the need to protect voting rights and education, and the importance of solidarity across communities. The resolution was adopted by voice vote after 74 co-authors were added. The Assembly also adopted Assembly Concurrent Resolution 132, declaring February 28 as Rare Disease Day. Members shared personal stories about ALS and other rare diseases, described barriers to diagnosis, treatment, and insurance coverage, and called for more research and support. The resolution received broad bipartisan support, with 71 co-authors added before adoption by voice vote. The chamber then recognized a series of Black History Month Unsung Heroes honorees, including community leaders, health professionals, advocates, and public servants, and later heard additional guest introductions. The meeting concluded with adjournments in memory of Peyton Trilling and John Jackson, followed by announcements and adjournment until February 26 at 9 a.m.

Transcript Highlights:

• My name is Koichi Masuda, CEO and founder of Liberty Fusion, a Santa Fe-based fusion company right here
• This is a lithium enrichment company based here in Santa Fe, but we are currently expanding.
• This is a lithium enrichment company that is based here in Santa Fe, but we are currently expanding.
• We expect to double our workforce. company that is based here in Santa Fe, but we are currently expanding
• Representative De La Cruz? Yes. Madam Chair Cadena? Yes. Vitalia? Oh, Chairman Lente.

Summary: The committee first took up House Bill 108, which amends the Watershed District Act to fix a problem created by last year’s changes: appointed watershed district boards could not legally levy taxes, even though several districts already had mill levies. The sponsor and staff explained the bill would preserve the existing tax authority by tying it to the soil and water district responsible for the watershed district. There was no public opposition, and the committee voted do pass on HB 108 as amended. The committee then heard House Bill 154, a tax credit bill intended to decouple New Mexico’s Advanced Energy Equipment Tax Credit from changing federal definitions and to add fusion machines and related components to the state definition. Supporters from economic development, industry, utilities, and education argued the bill would provide certainty, attract advanced manufacturing, and help New Mexico compete for investment without changing the credit’s caps or fiscal impact. Members questioned why hydrogen, geothermal, and small modular reactors were not included; staff said those technologies were not in the federal definition and that adding them now could create unintended consequences. The committee voted do pass on HB 154, with one member voting reluctantly yes. House Bill 291, the Taxation and Revenue Department’s annual tax code cleanup bill, was then presented and amended twice. The first amendment preserved New Mexico’s independent definition of qualified research for the tech jobs and R&D credit. The second removed a proposed expansion of the film tax credit to certain tribal expenditures after concerns about fiscal impact; members discussed possible future approaches for tribal film activity and the film partner loophole. The bill also makes technical and policy changes including rounding certain payments to the nearest nickel, waiving interest when tax deadlines are extended for good cause, removing small late-filing penalties in some cases, allowing delinquent taxpayers to renew permits under installment agreements, intercepting excess delinquent property tax auction proceeds for other state tax debts, clarifying tobacco tax treatment for larger vape cartridges, and tightening film credit rules. After public opposition from business groups and discussion from members, the committee voted do pass on HB 291 as twice amended.

Transcript Highlights:

• Mariposa serves about 30,000 patients in Santa Cruz County, the smallest county in Arizona, through seven
• Chair recognizes Representative Cruz. Representative Cruz: Mr.
• President Cruz. Contreras. President Cruz. The clerk will record the vote.
• Representative Cruz. Mr.
• Representative Cruz. Mr.

Transcript Highlights:

• Is there a way that the department can, you know, like if Santa Barbara...
• Is there a way that the department can, you know, like if Santa Barbara?
• Riverside in Santa Ana. We're here in support. Good afternoon.
• We're based in San Diego, Los Angeles, Riverside, and Santa Ana.
• George Cruz, on behalf of the California Behavioral Health Association.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• Cruz County Sheriff's Office, and $600,000 to Yavapai County Sheriff's Office. $150,000 to Santa Cruz
• I push for Pima, Graham, Santa Cruz, all these different counties because we need Arizona to grow.
• For Senator Dutley, I actually think we have Karen Cruz here to speak about it.
• I think Karen Cruz is here to speak about it.
• For the record, my name is Karen Cruz with the Cruz Group, and I'm here in support of Senate Bill 1488

Bills: SB1041 , SB1050 , SB1131 , SB1138 , SB1249 , SB1267 , SB1272 , SB1317 , SB1461 , SB1488 , SB1504 , SB1517 , SB1523 , SB1580 , SB1582 , SB1584 , SB1585 , SB1602 , SB1630 , SB1654 , SB1672 , SB1673 , SB1718 , SB1761 , SB1819 , SB1826 , SB1827

Committee: Senate Appropriations, Transportation and Technology

Keywords: electronic monitoring, nursing care, assisted living, resident rights, privacy, consent, surveillance, veterans, lifetime pass, state parks, Arizona, access, disabled veterans, cardiac arrest, defibrillators, school safety, emergency response, CPR training, Arizona education funding, automated license plate readers

Transcript Highlights:

• I work in the activities department for 19 years at a nursing home in Santa Clara.
• George Cruz is on behalf of the California Behavioral Health Association.
• My name is Laura Marcus, and I serve as CEO of Deentes Community Dental Care, serving Santa Cruz County
• My name is Laura Marcus, and I serve as CEO of Deentes Community Dental Care, serving Santa Cruz County
• Erin Evans, on behalf of the County of Santa Clara, said the committee has paid attention to the needs

Summary: The subcommittee heard an overview of the Department of Health Care Services’ proposed budget, including a $229.1 billion total-funds budget and projected Medi-Cal enrollment decline as redeterminations continue. Members focused heavily on the fiscal and programmatic effects of prior budget solutions and federal changes, especially the elimination of General Fund-supported Prop. 56 dental supplemental payments beginning July 1, 2026, the hospice utilization-management change, and the impact of reduced caseloads alongside rising health care costs. DHCS said it is still completing required access and rate-reduction analyses for the dental cuts and has been engaging stakeholders, but could not yet quantify the real-world effect on utilization or provider participation. The committee also reviewed the November 2025 Medi-Cal local assistance estimate, which shows higher General Fund spending despite lower enrollment, driven by managed care rate growth, Medicare cost growth, state-only claiming, and federal policy changes. The hearing then turned to provider taxes and federal H.R. 1 constraints, with extensive discussion of the MCO tax, the hospital quality assurance fee, and other health care-related taxes. DHCS explained that H.R. 1 phases down allowable tax levels and tightens “generally redistributive” rules, making the current MCO tax structure and the proposed higher hospital fee levels difficult or impossible to renew as originally designed. Staff and the LAO described the tradeoff between preserving Medi-Cal funding and avoiding higher costs on private providers and consumers. Members asked about options for preserving revenue, including possible amendments to Prop. 35 or returning to voters, and were told the department is still evaluating approaches while federal guidance remains in flux. The committee also reviewed hospital payment increases already implemented through state-directed payments, with DHCS noting that H.R. 1 will force those payments down to Medicare levels over time. Several budget change proposals were discussed and left open, including requests tied to the managed care final rule, managed care operations, hospital value strategy, long-term care payment transparency, and interoperability requirements. The committee also heard about a one-year trailer bill extension for skilled nursing facility financing, including continuation of the SNF workforce standards program, the SNF quality assurance fee, and annual rate growth, while the department develops a longer-term financing redesign for 2027-28. Members expressed skepticism about repeated rate reform efforts and questioned whether a one-year extension of the eliminated workforce quality incentive program should be restored during the transition. Finally, Covered California presented its budget and enrollment update, reporting that the expiration of the federal enhanced premium tax credit is expected to reduce affordability significantly, with average premiums roughly doubling for many enrollees and as many as 400,000 Californians potentially losing marketplace coverage over time. The exchange said California’s $190 million subsidy program is helping lower-income enrollees, but not enough to offset the federal loss, and it is also implementing a new gender-affirming care benefit and awaiting federal action on benchmark plan changes.