Transcript Highlights:

• And yes, we're dealing with AI in the future, but we're dealing with an economy that needs this experience

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue measures. SB 1277, by Senator Grove, proposed a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide direct relief to low- and middle-income Californians facing high housing, gas, energy, and general living costs. Supporters said it would help working families, farmworkers, teachers, and others; opponents, including the California Tax Reform Association and the California Teachers Association, argued California already has a progressive tax system, that refundable credits are costly and can be difficult to administer, and that the bill would reduce General Fund revenues and Proposition 98 funding. The bill was held on call after extensive debate and no motion was made at that time. The committee then heard SB 1287, which would create a targeted tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the credit would support safety, bridge and track upgrades, emissions reductions, freight efficiency, and rural and agricultural supply chains, while opponents argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call after a motion to move it forward. SB 1407 would exempt military retirement pay and surviving spouse benefits from state income tax, with the author, State Treasurer Fiona Ma, and veterans’ groups arguing it would help retain veterans in California, support second careers, and keep federal retirement dollars in the state. The California Teachers Association and California Tax Reform Association opposed it as another tax expenditure that would reduce General Fund revenue. The committee approved the bill on a due pass as amended vote to the Senate Committee on Military and Veterans Affairs, with several members voting aye and others not voting, and the bill was placed on call. The committee also heard SB 1349, which directs the Legislative Analyst’s Office to review major tax expenditures and evaluate their costs, beneficiaries, and effectiveness. Supporters, including CTA, AFSCME, cities, counties, and many teachers, said the state needs more accountability for roughly $94 billion in annual tax expenditures and their impact on schools and the budget. The bill was moved with committee amendments and placed on call. Additional measures discussed included SB 1078, authorizing Santa Cruz County to seek voter approval for a temporary local sales tax increase to fund health care and safety-net services; SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries; and SB 1275, which would convert the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden. SB 1120 and SB 1275 both received support from business and industry witnesses, with no opposition testimony noted, and were moved on call or with a due pass as amended vote as the committee continued through the file.

Transcript Highlights:

• And yes, we're dealing with AI in the future, but we're dealing with an economy that needs this experience

Summary: The committee heard Senate Bill 1277, which would create a California Cost of Living Tax Credit modeled on the 2022 middle-class tax refund to provide refundable relief to low- and middle-income Californians facing high housing, fuel, energy, and general living costs. Senator Grove and supporters, including the California Policy Center and some local government representatives, argued the bill would put direct relief into the hands of working families. Opposition came from the California Tax Reform Association and the California Teachers Association, which said California already has progressive tax credits and that the proposal would be costly to the General Fund and reduce money for schools and other services. After extended debate, the bill was not advanced; a roll call vote on a motion to pass it to Appropriations failed 1-4, and the bill was held/fails on the floor with a request for reconsideration noted. The committee then heard SB 1287, which would create a capped tax credit to encourage private investment in short-line railroad infrastructure. The author and rail industry witnesses said the measure would improve safety, reliability, emissions, and freight movement, especially for rural communities and agriculture, and that it was a public-private partnership rather than a handout. Opposition from CTA and the California Tax Reform Association argued a direct grant program would be preferable to a tax credit. The bill was accepted with committee amendments and placed on call without a final vote in the transcript. Members also considered SB 1407, which would fully exempt military retirement pay and surviving spouse benefits from state income tax, increasing the prior partial exemption. The author, State Treasurer Fiona Ma, and veterans’ groups said the change would help retain veterans in California, support local economies, and align California with most other states. CTA and CTRA opposed on General Fund grounds. The committee approved the bill on a due-pass-as-amended motion to the Committee on Military and Veterans Affairs, with the roll call showing support and the bill placed on call. Later, the committee heard SB 1349, directing the Legislative Analyst’s Office to review major tax expenditures and evaluate their goals, beneficiaries, and effects on revenues and Proposition 98 funding. CTA, CTRA, and several local government and labor supporters backed the bill as a way to improve accountability for roughly $94 billion in annual tax expenditures. The bill was accepted with committee amendments and placed on call. The committee also heard SB 1078, authorizing Santa Cruz County to ask voters for a temporary half-cent sales tax to help fund health care and safety-net services amid federal cuts; it was placed on call. SB 1120, extending the California Competes Tax Credit through 2035 and making it refundable for certain strategic industries, received strong support from business and manufacturing groups and was passed on a due-pass-as-amended motion to Appropriations. Finally, SB 1275, which would replace the state sales tax on vehicle purchases with a vehicle license fee structure intended to increase federal deductibility for Californians, was passed 4-0 as amended to the Committee on Transportation.

Transcript Highlights:

• And yes, we're dealing with AI in the future, but we're dealing with an economy that needs this experience

Committee: Senate Revenue and Taxation

Keywords: 987, senate, all

Transcript Highlights:

• I have seen a few of those and I'm not sure how much AI was put into that.

Bills: SB1627 , SB227 , SB366 , SB1193 , SB1433 , SB1450 , SB1481 , SB1749 , SB1810 , SB1812 , SB1921 , SB1948 , SB2044 , SB2178 , SB169 , SB1877 , HB1409 , SB1266 , SB1432

Keywords: criminal code cleanup, duplicate statutes, statutory consolidation, repealer bill, emergency clause, Title 21 crimes, Title 47 DUI, child abuse reporting, child neglect, child sexual abuse material, child pornography, sex offenses, rape, stalking, domestic abuse, domestic violence, human trafficking, sex trafficking, gang-related offense, eluding police

Transcript Highlights:

• funds under Title I to include specified technologies and instructional supports in STEM, including AI-related

Summary: The House convened with prayer, the Pledge of Allegiance, quorum calls, and several recognitions before taking up a series of Senate messages and House motions. Members also recognized House Sergeant at Arms staff, visitors in the gallery, and family members. The chamber approved the journal and then moved into message lists and concurrence motions on several bills. On CS/CS/SB 1668, relating to the Florida Birth-Related Neurological Injury Compensation Association (NICA), the House concurred in a Senate amendment that clarified that if the NICA plan lacks adequate cash flow, the Office of Insurance Regulation may authorize a cumulative transfer of up to $20 million over the life of the plan and removed a proposed time limit on provider assessments. The bill then passed 96-2. The House also concurred in a Senate amendment to CS/CS/CS/HB 905, the foreign influence bill, after debate over a proposed strike-all amendment that would have removed surrogacy-related language; that amendment failed. Supporters said the bill still retained key foreign-influence restrictions, while opponents objected to the surrogacy provisions and other remaining restrictions. The bill passed 83-17. The House then took up CS/CS/HB 1279 on education. The Senate amendment added provisions on tuition residency for certain military and State Department families, a one-year deferral option for Benacquisto Scholarship recipients, virtual school notifications, educational emergency authority for persistently low-performing schools, epinephrine flexibility, VPK and New Worlds Reading changes, math pathways, dance credit, IEP service notifications, charter school safety officer options, and FEFP adjustments for Florida advanced courses, while removing several House provisions including the 95% Florida resident requirement for preeminent universities, the 5% cap on undergraduate international enrollment, and DEI-related provisions. Debate focused heavily on the educational emergency and collective bargaining language for persistently low-performing schools, with supporters saying it would help districts improve student performance and opponents warning it would weaken unions and affect schools that are not truly failing. The bill passed 81-16. Finally, the House considered CS/CS/CS/HB 399 on land use and development regulations. An amendment to repeal portions of last year’s SB 180 was ruled not germane. The House then took up a Senate amendment on compost facilities that would bar local governments from conditioning compost-facility approval on the purchase of additional property to expand a privately owned road and would limit local revocation of permits when facilities comply with state or regional environmental regulation; debate began on that motion as the transcript ended.

Transcript Highlights:

• That AI really got it wrong.

Keywords: 1182, all

Transcript Highlights:

• A lot of that's driven by AI and everything happening in the Bay Area economy.

Summary: The hearing was an outcome review of AB 2011, the Affordable Housing and High Road Jobs Act of 2022, focused on whether the law is being used as intended to speed housing production on commercially zoned land while maintaining labor and affordability standards. Chair Haney and Assembly Member Wicks emphasized that the point of the review was not to relitigate the bill, but to assess implementation and results. The first panel of researchers and policy experts said AB 2011 has had real but still limited uptake so far, with roughly 5,800 homes proposed, entitled, or permitted under the law through 2024, concentrated mainly in San Francisco and Los Angeles counties. They also noted that the broader housing market remains constrained by high construction costs, interest rates, and flat rents, making it hard to isolate the bill’s effects from overall market conditions. Witnesses generally agreed that AB 2011 has been most effective for 100% affordable projects and for projects already using public subsidies or prevailing wage, where the ministerial process and CEQA streamlining help move developments forward. Several speakers described the law as a useful bargaining tool that can push jurisdictions to rezone or approve projects more quickly even when AB 2011 is not formally invoked. At the same time, developers and advocates said the mixed-income pathway is much less usable in most of the state because prevailing wage and the 15% affordability requirement add significant cost, especially in lower-rent markets. They also pointed to implementation issues such as narrow site eligibility rules, the “substantially surrounded by urban uses” test, industrial-use exclusions, and confusion about whether the law applies to homeownership projects. The second panel, made up of practitioners using the law, described specific projects that moved forward under AB 2011, including affordable housing developments in the San Joaquin Valley and large mixed-use projects in San Francisco. They said the law’s biggest benefit is certainty: projects that once took years to entitle can now move in months. However, they repeated calls for changes such as clarifying homeownership eligibility, loosening density and site restrictions, narrowing the industrial-use exclusion, and making the law easier to understand for developers and local staff. Members also raised concerns about uneven use across regions, especially the relative lack of AB 2011 activity in Los Angeles and Santa Clara County, and about the accuracy and lag in annual progress report data. The final panel, including the original sponsors, said they remain supportive of the law but are open to adjustments to reduce costs and improve usability while preserving labor protections and affordability goals.

Transcript Highlights:

• to make New Mexico... ...the ability to make New Mexico the most technological place right now with AI

Summary: The committee first heard Senate Bill 152, which would create a low-income telecommunications assistance program and continue support for rural broadband operations and maintenance through the State Rural Universal Service Fund. Senator Padilla and Office of Broadband Access and Expansion Director Jeff Lopez said the bill responds to the loss of federal affordability support and would help low-income households pay for broadband, while also preserving funding for rural carriers and maintenance. Supporters included the Greater Albuquerque Chamber of Commerce, the New Mexico Exchange Carrier Group, tribal telecom representatives, and several rural providers, who said affordability is the main barrier to service and that the bill would help families, students, and rural communities. A few witnesses opposed parts of the bill, arguing that the ARS funding should be redirected entirely to broadband affordability and that legacy POTS-line support should sunset. Committee members asked about ETC requirements, satellite and wireless options, rural density, and the sunset provision; the sponsor said the sunset on ARS would be removed and that stakeholder discussions would continue in the interim. The committee voted due pass on the Senate Finance Committee substitute for SB 152. The committee then took up Senate Rules Committee substitute for Senate Bill 132, which would add software planning and replacement to the state’s equipment replacement fund. The sponsor and expert said state agencies now rely heavily on software for core services and that planning for software alongside hardware would improve efficiency, security, and long-term sustainability. There was no opposition, and the committee voted due pass on the substitute. The meeting then shifted to a lengthy discussion of Senate changes to House Bill 2, the budget bill. Senate Finance staff described roughly 300 changes, including additional funding for fire response, early childhood, housing, health care, quantum initiatives, public safety, courts, transportation, education, and several social service programs. Members questioned cuts or reallocations affecting state employee pay, public school capital outlay, the state fair redevelopment, CARA, personal care services, the Office of Child Advocate, and other items. The presenters repeatedly defended the Senate’s use of funds as a way to preserve reserves while prioritizing health care, housing, education, and other recurring needs, and said reserves would remain above the target level even with the changes discussed.

Transcript Highlights:

• I hope they really will pull out their phone and do an AI search for that question because it's just

Committee: Senate Senate Judiciary

Keywords: 996, all

Transcript Highlights:

• Social is another area; with AI, that is commonly becoming a big issue, and that actually goes across

Bills: SB5439 , SB6109 , SB6304

Committee: Senate Ways & Means

Keywords: investment, thermal coal, divestment, state investment board, fossil fuels, environmental impact, renewable energy, detention facilities, state funds, privatization, criminal justice reform, Washington State Investment Board, responsible investment, sustainability, corporate governance, 904, all

Transcript Highlights:

• And this last weekend when I was in San Diego for a conference on cybersecurity, AI, and data privacy

Bills: HB2439 , HB2483 , HB2400

Committee: House Consumer Protection & Business

Keywords: public health, tobacco regulation, smoking cessation, vapor products, health policy, youth prevention, data broker, registry, consumer protection, privacy, data regulation, social media, content creation, online platforms, digital marketing, user-generated content, 904, all

Transcript Highlights:

• And then we wind up, as we continue to add technology and implement AI into that.

Committee: House Commerce

Keywords: 959, house, all

Transcript Highlights:

• Chairman, that really concerns me because with all of the AI and everything else going on, three years

Keywords: 996, all

Transcript Highlights:

• We often say AI is really going to be sort of something that's going to equalize.

Summary: The joint informational hearing of the Assembly Committees on Economic Development, Growth, and Household Impact and Agriculture, held at Fresno State, focused on cost pressures in California’s food system, household affordability, and the Central Valley’s role in agriculture. Opening remarks emphasized Fresno State’s regional importance, the Central Valley’s outsized contribution to food production, and the connection between agricultural health, food security, and the broader economy. Members also noted the impact of the federal shutdown on CalFresh benefits and the state’s efforts to respond with food assistance funding and National Guard support for food banks. The first panel featured academic and policy experts who described agriculture’s economic importance in the San Joaquin Valley and the rising pressures on farms and households. Dr. Conduro highlighted agriculture’s large share of regional GDP, farm receipts, jobs, exports, and food manufacturing, while identifying water scarcity, SGMA-related land fallowing, labor shortages and rising labor costs, market volatility, invasive pests, and production cost inflation as major barriers. Caroline Danielson of PPIC said food prices remain about 30% above 2019 levels, food insecurity affects about 1.8 million California households, and nutrition programs such as CalFresh, WIC, and school meals are essential in reducing poverty, especially in the Central Valley. Susie Pryor of the Central California Small Business Development Center described technical assistance, capital access, and training for small food and farm businesses, while warning that reduced funding limits support for rural and immigrant entrepreneurs. The second panel brought testimony from a small produce business owner, a food entrepreneur, and the Fresno County Farm Bureau. They said input costs for fertilizer, fuel, irrigation, labor, land leases, and compliance have risen sharply while commodity prices have remained flat or fallen, squeezing small farms and food businesses. Panelists stressed the need for small-batch processing facilities, local supply chains, education on food manufacturing compliance, land access for small farmers, and more pathways into agriculture through trade programs, community colleges, and FFA. Ryan Jacobson said California agriculture is facing a prolonged downturn, with farm bankruptcies, weak commodity prices, export-market uncertainty, water reliability problems, and costly ag-burning rules all contributing to financial strain. No formal votes or legislative actions were taken; the hearing was informational and concluded with discussion of possible policy solutions and continued engagement with stakeholders.

Transcript Highlights:

• Number one is substance use disorder, environmental health, and then data science and AI.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• We have the AI consoles and computing advisory consoles.

Committee: House Water & Natural Resources Committee

Transcript Highlights:

• strengthen and... ...and clarifies the bill's enforceability, particularly in the context of deceptive AI-generated

Bills: HB5560 , HB2 , HB24 , HB3233 , HB1397 , HB2067 , HB3133 , HB5696 , HB5680 , HB2885 , HB3966 , HB3556 , HB3595 , HB144 , HB26 , HB2038 , HB521 , HB4 , HB 1178 , HB42 , HB 1211 , HB783 , HB3963 , HB2240 , HB1690 , HB 1234 , HB3372 , HB27 , HB4211 , HB2243 , HB2853 , HB4638 , HJR7 , HB 100 , HB 126 , HB3783 , HB5138 , HB2512 , HB5616 , HB4751 , SB17 , SB1637 , SB1833 , SB2155 , SB21 , SB2778 , SB260 , SB8 , SB12 , SB37 , SB379 , SB441 , SB1566 , SB2878 , HB4112 , HB3866 , HB4749 , HB2844 , HB150

Keywords: groundwater, civil penalties, water conservation, drought contingency, environmental protection, public education, teacher compensation, certification, funding, school finance, educator rights, education funding, charter schools, staff compensation, state aid, retention allotment, zoning, public notice, local government, residential development

Transcript Highlights:

• It's not only that, but also aerospace and composites, AI. You think AI's cool now?

Summary: The Assembly met in session, established a quorum, and opened with a prayer and the Pledge of Allegiance. Members then moved through guest introductions, including students and fellows from California Lutheran University, UC Merced’s CAPE program, the Maddy Institute, and Madera High School’s Madtown Robotics Team 1323, which was recognized for multiple robotics world championships. The chamber also adopted an adjournment in memory and took up the daily file. Several bills and resolutions were considered and passed, including AB 1390 on school board compensation thresholds, AB 1338 on air district cost recovery for fence-line air monitoring, AB 648 on community college housing, AB 1207 on cap-and-trade price ceilings, ACR 66 recognizing Skin Cancer Awareness Month, AB 49 on keeping ICE out of public schools, AB 317 on a CEQA exemption for certain single-family homes, AB 527 on geothermal exploratory wells, AB 665 on the Department of Financial Protection and Innovation ombudsman report, AB 940 creating quantum innovation zones, AB 1021 on workforce housing for education agencies, AB 1112 on property tax apportionment in Rancho Mirage, AB 1318 on nonprofit eligibility for public funding, and AB 1470 on using student housing loan funds for affordable housing in downtowns and commercial districts. Most measures passed with broad support; AB 49 and AB 1318 were urgency bills and passed with the required higher vote threshold. The floor also adopted H.R. 40, declaring May 25 as Rosenda’s Day to honor a teen killed by a drunk driver, and H.R. 42, recognizing May as Behavioral Health Awareness Month. Both drew extensive personal testimony from members about mental health, suicide, substance use, and the need to reduce stigma and expand access to care. Additional health-related bills passed, including AB 408 creating a physician health and wellness program, AB 546 requiring coverage for HEPA purifiers for certain enrollees after wildfire disasters, AB 967 expediting licenses for out-of-state physicians, and AB 968 expanding pharmacist authority to provide non-hormonal contraception. The Assembly also debated AB 1056 on phasing out gill net fishing and AB 1376 on limiting juvenile probation terms, with supporters framing both as conservation or rehabilitation measures and opponents warning about economic harm or public safety concerns. Both bills ultimately passed. Throughout the session, members repeatedly emphasized public safety, education, housing, climate, health care access, and support for immigrant and youth communities, with recorded roll-call votes and voice votes taken on each measure.

Transcript Highlights:

• with sirens, but we always show up day and night, 24/7, 365 days a year, and 366 on Leap Year. ...by AI

Bills: HB223

Committee: Senate State Affairs

Keywords: municipal budget, county budget, local government finance, spending cap, expenditure limit, inflation plus population growth, taxpayer impact statement, budget transparency, property tax, fees, Legislative Budget Board, voter approval, disaster spending, fiscal restraint, Texas Local Government Code, city budget, county expenditures, 1185, senate, all

Transcript Highlights:

• Get claims level data from Medicaid and build an AI tool to help be able to make that information, uh