Transcript Highlights:

• informational briefings on Hawaii P20 Partnerships for Education and Department of Education budget and capital
• with that, [laughter] Hawaii P20 Partnerships for Education and Department of Education budget and capital
• See, okay, budget and capital improvements.
• Thank you for the opportunity to provide an update on the department's capital improvement program.
• What was— >> 42 capital projects in active construction with balances exceeding $1 million. Okay.

Bills: SB2901 , SB2902 , SB2903 , SB2904 , SB2905 , SB2906 , SB2907 , SB2908 , SB2909 , SB2910 , SB2911 , SB2912 , SB2913 , SB2914 , SB2915 , SB2916 , SB2917 , SB2918 , SB2919 , SB2920 , SB2921 , SB2922 , SB2923 , SB2924 , SB2925 , SB2926 , SB2927 , SB2928 , SB2929 , SB2930 , SB2931 , SB2932 , SB2933 , SB2934 , SB2935 , SB2936 , SB2937 , SB2938 , SB2939 , SB2940 , SB2941 , SB2942 , SB2943 , SB2944 , SB2945 , SB2946 , SB2947 , SB2948 , SB2949 , SB2950 , SB2951 , SB2952 , SB2953 , SB2954 , SB2955 , SB2956 , SB2957 , SB2958 , SB2959 , SB2960 , SB2961 , SB2962 , SB2963 , SB2964 , SB2965 , SB2966 , SB2967 , SB2968 , SB2969 , SB2970 , SB2971 , SB2972 , SB2973 , SB2974 , SB2975 , SB2976 , SB2977 , SB2978 , SB2979 , SB2980 , SB2981 , SB2982 , SB2983 , SB2984 , SB2985 , SB2986 , SB2987 , SB2988 , SB2989 , SB2990 , SB2991 , SB2992 , SB2993 , SB2994 , SB2995 , SB2996 , SB2997 , SB2998 , SB2999 , SB3000

Keywords: geological subsurface characterization, groundwater, geothermal resources, environmental review, Hawaii groundwater and geothermal resources center, scientific research, non-extractive, public trust doctrine, clean energy, greenhouse gas, carbon sequestration, climate change, energy policy, Hawaii state energy office, emissions reduction, sustainable development, fare-free transportation, greenhouse gas emissions, public transit, tax on petroleum

Transcript Highlights:

• Would you call that a regional asset? An asset? No. And not from a financial perspective.
• A regional asset from a business revenue generation perspective? No. Is that a cultural asset?
• as much as just a regional asset.
• spent in capital improvements or operations, the decision as to which capital improvements and what
• support the regional asset.

Committee: House Government Efficiency

Transcript Highlights:

• Thus, Morgan Stanley's net zero targets will help determine "how the firm allocates capital."
• Another study by the American Council for Capital Formation found that 175 asset managers controlling
• Again, if we were to talk about their net zero asset management commitments to push all assets toward
• managers and proxy advisors promoting stakeholder capitalism.
• which collectively manage approximately $24.5 trillion in assets as of the end of 2024.

Bills: SB312 , SB945 , SB946 , SB1367 , SB1861 , SB2044 , SB2337 , SB2403 , SB2819 , SJR54

Committee: Senate State Affairs

Transcript Highlights:

• The real danger comes from how the estate tax applies to non-liquid assets.
• In the course between 2018 and 2022, the tax treatment for these formerly depreciable capital assets
• Capital purchases like equipment or new technology are foundational to long-term growth. Mr.
• At the same time, with no support, no capital and no road map moving forward.
• So you have this tax that's imposed on assets beyond a certain level.

Committee: Senate Small Business and Entrepreneurship Committee

Keywords: joint hearing, small business, Tax Cuts and Jobs Act, economic recovery, tax relief, job creation

Summary: In this joint hearing of the House Committee on Small Business and the Senate Committee on Small Business and Entrepreneurship, the primary focus was on the importance of making the Tax Cuts and Jobs Act of 2017 (TCJA) permanent. The chair emphasized that small businesses are crucial for the nation's economic recovery, especially in the wake of current federal policies perceived as detrimental. Witnesses shared their experiences and highlighted how the tax cuts facilitated job creation and business expansion, stressing the need for continued support through ongoing tax relief measures. The meeting included discussions about the economic implications of the TCJA's potential expiration, with members voicing their concerns regarding how this could impact small businesses and the broader economy.

Transcript Highlights:

• You build these assets with the goal of satisfying a demand.
• Who would control the asset, the generation asset? Who would own it in your model?
• It's an asset that we understand.
• And likewise with the nuclear asset in later years.
• The redundancy of the gas asset is a really good question.

Committee: House Utilities

Transcript Highlights:

• , even though DOT is a national leader on asset management.
• These are all risk-based asset plans that we do.
• It's really asset planning.
• And so it's these small assets here, the small, relatively inexpensive asset that we struggle to stay
• And it's just like these other assets.

Committee: Senate Transportation

Summary: The Senate Transportation Committee devoted the meeting to state highway preservation needs, with testimony from Troy Suing of the Department of Transportation’s Capital Program Development and Management program. Suing said the department is a national leader in asset planning, but current funding is not enough to keep up with preservation needs. He distinguished preservation from operations and maintenance, and outlined the main highway preservation categories: pavements, bridges, and other highway facilities such as slopes, rest areas, signal systems, retaining walls, and culverts. Suing presented data showing that many assets are already past the optimal “lowest life cycle” point for repair. He said about 40% of roads are overdue for preservation now, and roughly 85% could need some form of preservation within 10 years under current funding. For bridges, he said Washington has about 3,400 bridges, with an average age of 52 years, and about 9.9% are currently in poor condition, putting the state near the federal 10% threshold that could trigger more federal oversight. He also described culvert failures and bridge closures, including the Carbon River Bridge, as examples of how deferred maintenance can quickly disrupt communities. Committee members asked about liability risk, bridge project costs and regulatory burden, traffic data, and whether DOT is using more in-house crews for bridge work. Suing said deterioration increases tort and closure risks, bridge projects can involve significant design, environmental, permitting, and outreach costs, and DOT is relying more on maintenance forces in part because of the volume and urgency of repairs. He said the department’s 2026 supplemental budget identified preservation as one of five underfunded critical priorities and estimated a 10-year preservation need of $8 billion to address the backlog and become more proactive. No votes were taken; the meeting was informational and ended with committee appreciation for DOT staff and a brief birthday announcement from Senator Alvarado.

Transcript Highlights:

• projects fund for major capital purposes including... ...format prescribed by OSPI and in conformity
• account or some other funding mechanism to replace that asset that I've just sold.
• Is there some mechanism in this bill that enables an outlook relative to those assets?
• And that's... ...that asset management?
• and that's that enables an outlook relative to those assets and that asset management is there some

Summary: The House Education Committee heard public testimony on three bills focused on school district finances and education ombuds confidentiality. House Bill 2593, an OSPI request, would require school districts to maintain minimum general fund balances beginning in the 2031 school year, with OSPI calculating district-specific amounts and adopting rules. It would also require monthly financial reporting starting in 2028-29 and allow OSPI to withhold apportionment for late reporting or require repayment plans if districts fall below the minimum. Supporters, including OSPI and the prime sponsor, said the bill is intended to prevent districts from reaching binding financial conditions and to provide earlier intervention; opponents from WASDA, rural districts, and school boards argued it would reduce local control, create cash-flow problems, and impose rigid limits that do not fit different district circumstances. Several witnesses also raised concerns about the proposed maximum fund balance and the impact on districts with enrollment volatility, federal impact aid, or special project savings needs. The committee also heard House Bill 2551, which would let school districts with estimated ending fund balances at or below 3% of revenues seek OSPI approval to sell real property before entering binding financial conditions, with proceeds used to restore solvency rather than being deposited into capital or debt service funds. The prime sponsor and Tacoma School District testified that the bill would give districts flexibility to avoid deeper fiscal distress, while OSPI said it supported the concept but suggested a higher threshold and broader minimum fund balance policy. Testimony in opposition or concern focused on the risk of selling appreciating assets, the possibility of one-time sales being used to solve ongoing budget problems, and the need for stronger state funding rather than asset liquidation. The committee also heard House Bill 2440, which would make identifying information in Office of Education Ombuds complaint records confidential, allow limited disclosure by consent or under legislative or gubernatorial subpoena, and require release of a complainant’s own records with redactions; the bill was supported by the ombuds office and its sponsor as a way to protect complainants and encourage reporting. No votes or executive actions were taken. The committee closed the public hearings after hearing testimony and recorded sign-ins, and the chair noted that the bills could be eligible for executive action beginning the following Monday.

Transcript Highlights:

• </c><00:08:18.120><c> are</c> bill um and you know Farmers assets are bill um and you know Farmers assets
• Every single year that asset, that is the only asset of most middle-class and working-class people, is
• Every single year that asset, that is the only asset of most middle-class and working-class people, is
• Every single year that asset, that is the only asset of most middle-class and working-class people, is
• assets of the wealthy or the assets of regular working-class and middle-class people. ...but now I'm

Transcript Highlights:

• assets.
• assets.
• Capital-intensive industry, is that correct? Yes. Yes.
• Where do we get the capital to be able to serve this capital-intensive industry?
• I agree with you that these are capital-intensive. This is a capital-intensive industry.

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• The bill requires that the utilities have 300 percent capital spend versus the depreciation.
• It allows them to put rates in and put assets. That's in rates on day one.
• So, it's comparing your capital expenditures annually to your depreciation.
• Standards that apply to reviewing the assets remain the same.
• We've talked a lot. about the cost of capital. We talked about that in utilities.

Bills: HB 106 , HB144 , HB145 , HB252 , HB1732 , HB2221 , HB2467 , HB2468 , HB2517 , HB2518 , HB2963 , HB3016 , HB3689 , HB3960 , HB4386 , HB4490 , HB4751 , HB5247 , HJR175 , HB2213 , HB106 , HB144 , HB145 , HB252

Committee: Senate Business & Commerce

Transcript Highlights:

• First, distributions are limited to net interest and dividend income, excluding capital gains from asset
• </c><00:27:10.000><c> gains</c><00:27:10.559><c> from</c><00:27:10.880><c> asset</c> excluding capital
• gains from asset excluding capital gains from asset appreciation<00:27:12.640><c> from</c><00:27:12.960
• ><c> if</c> Furthermore, capital gains and if Furthermore, capital gains and if necessary,<00:27:19.039
• Capital gains, meaning the increase in asset value of a stock or bond, are a significant source of investment

Bills: HF3900

Committee: House Education Finance

Transcript Highlights:

• There's secure assets, which is government-backed assets, and there's non-government-backed assets.
• </c> in risk assets?
• When you say risk assets in risk assets?
• No risk assets. I mean high high risk. No risk assets.
• know old and new asset classes. know old and new asset classes.

Summary: The committee held a work session on HB 302, which would add precious metals and digital assets as potential investment options. State Treasurer Monica Misipelli said she took no position on the bill and did not see an immediate fiscal impact or operational problem, but explained that the state’s operating funds and rainy day fund require liquidity and stability, so they would not be suitable for volatile assets like precious metals or digital assets. She said the only funds that might potentially use such investments would be certain trust funds held in perpetuity, which are managed by an outside investment advisor under a contract and investment policy. Members asked about the treasurer’s current investment practices, including the types of funds managed, the role and discretion of the investment advisor, the state’s risk profile, and whether the bill would affect existing authority. Misipelli said the office follows RSA 11 and related statutes, with different objectives ranging from conservative to aggressive depending on the fund, and that the advisor meets with the office regularly, with formal performance reviews on a quarterly basis. She also said the office recently centralized management of about 40 trust accounts totaling roughly $60 million into five combined portfolios under a five-year contract with an RFP-selected vendor. When asked whether precious metals or digital assets are already indirectly available through mutual funds, she said that was possible for some mutual funds, but she was not certain about digital assets. Representative Ammon, the bill’s sponsor, said similar legislation had passed the Oklahoma House, the Texas House and Senate, and had advanced in Arizona. He argued the bill was intended to give the treasurer more tools to help balance portfolios and hedge inflation, noting concerns about federal debt and inflation. No vote was taken in the excerpt, and the chair ended the questioning after thanking the treasurer and asking her to remain available in case further questions arose.

Transcript Highlights:

• Over time, additional asset classes, including stablecoin, tokenized assets, and non-fungible tokens
• efforts would digital assets be transferred to a state-contracted digital asset custodian.
• , a digital asset in this way.
• California is the innovation capital of the world. A digital asset reserve fund is a natural fit.
• asset format.

Summary: The Assembly Banking and Finance Committee held an informational hearing on digital asset innovation, with opening remarks framing cryptocurrencies, blockchain, stablecoins, tokenization, and decentralized finance as a growing part of the financial system. Dennis Porter of Satoshi Action Fund presented on the market size, institutional adoption, use cases such as remittances and small-business payments, and policy developments at the federal and state levels. He also discussed risks including volatility, cybersecurity, and illicit use, while arguing that clear regulation can support innovation and consumer protection. State Controller Malia Cohen then updated the committee on implementation of SB 822, California’s unclaimed digital asset law. She explained that the law applies to custodial accounts, not self-custodied wallets, and requires holders to conduct outreach before dormant digital assets are transferred to the state in native form. Committee discussion focused on how abandonment is determined, what counts as account activity, the expected timeline for notices and custodian procurement, and the administrative costs and staffing needed to run the program. Controller staff said the state is still building procedures, working with Oregon, and expects a significant increase in claims once the program is operational. Porter returned with a proposal for a California digital asset reserve fund built on unclaimed digital assets under SB 822. He argued the fund could be cost-neutral, use only high-quality digital assets, and include guardrails such as an advisory board, audits, and public reporting. Committee members expressed interest in diversification and consumer protection, but also raised concerns about volatility, documentation, and market downturns. The hearing ended after public comment from industry and advocacy representatives, including support from the California Blockchain Advocacy Coalition, the Crypto Council for Innovation, and Coinbase, all urging clear, technology-neutral policy to keep innovation and jobs in California.

Transcript Highlights:

• Cash-like assets like Treasuries.
• , a digital asset, in this way.
• California is the innovation capital of the world. A digital asset reserve fund is a natural fit.
• They have easier ways to get their digital assets or their financial assets if they're digital.
• So I think it's risky to keep digital assets in very low-quality types of digital asset formats.

Committee: House Banking and Finance

Transcript Highlights:

• The county owns the capital assets, as you can see, and has invested hundreds of millions of dollars
• </c> As the campus continues to age and asset As the campus continues to age and asset preservation<00
• </c><00:20:36.880><c> preservation,</c> to 30 million for asset preservation, to 30 million for asset
• At the essentially a statewide asset.
• </c> preservation and capital improvements. preservation and capital improvements.

Committee: House Taxes

Transcript Highlights:

• Next, the distributed energy backup assets program, what we call our DIBA program.
• What cost did the state pay for these resources, capital costs excluding staff and fuel?
• So these assets that we're talking about today, these three different assets that DWR owns, actually
• They're long-lived assets. So that's the process.
• Also, a number of the assets are actually partially split both in capital as well as labor across the

Summary: The hearing was an informational budget session on energy agency proposals, with no votes taken. Early discussion focused on Proposition 4 climate bond implementation, including funding for demand-side grid support, offshore wind development, and transmission financing. The Department of Finance said the budget includes allocations for demand-side grid support and offshore wind, but not yet for the $325 million transmission financing piece pending a required study. The Legislative Analyst’s Office urged the Legislature to consider whether to wait on offshore wind funding, whether to keep shifting funds into demand-side grid support, and how to direct future transmission financing. Members also raised concerns about local technical assistance for offshore wind, Salton Sea priorities, and the need for more information before final decisions. The California Energy Commission and CPUC then reviewed the broader energy package. The CEC highlighted the demand-side grid support program’s growth, distributed energy backup assets, long-duration storage, hydrogen grants, and the SIRP clean energy reliability program. CPUC testimony emphasized affordability, wildfire mitigation costs, rooftop solar cost shifts, and efforts to reduce rates while maintaining reliability and clean energy goals. Members questioned CPUC staffing, delays in proceedings, coordination with the CEC and CAISO, and the impact of rate increases on customers. The agencies also discussed the AB 3264 transmission financing study, with CPUC saying work on the study had already begun and was on track for the July 1 deadline. Several trailer bill and implementation items were also discussed. The committee reviewed a proposal to extend the Deaf and Disabled Telecommunications Program surcharge, with members split over whether it should be handled in budget trailer bill language or policy legislation; the administration said the surcharge supports a critical program serving about three-quarters of a million Californians. The committee also heard a CPUC data-sharing proposal to allow nondisclosure agreements for transmission and reliability data, which members generally supported as a technical fix. DWR explained a proposal to clarify language for the Electricity Supply Strategic Reliability Reserve so it can potentially sell three gas-fired units it owns, and the CEC presented a federal transmission grant proposal tied to grid-enhancing technologies and ratepayer cost recovery. Finally, the committee discussed California Lifeline and possible broadband pilot reforms in light of uncertainty around federal Universal Service Fund support, with CPUC saying it is exploring a statewide standalone broadband option for eligible customers.

Transcript Highlights:

• </c><00:31:17.120><c> updates</c> they require a lot of capital updates they require a lot of capital
• </c> be more interested in taking a capital be more interested in taking a capital offer<00:31:48.480
• </c> capital to do the updates? capital to do the updates?
• Asset stripping can take a number of forms. My notes... Asset stripping can take a number of forms.
• </c> asset of the the property. asset of the the property.

Committees: Senate Health and Human Services , Senate Human Services

Transcript Highlights:

• We really look forward to sharing our 2026 capital request with you.
• </c> forward to sharing our 2026 capital forward to sharing our 2026 capital request<00:20:49.679><c>
• As always, asset preservation is our first priority.
• Chair, and thank you for being here today and presenting your capital appropriations request.
• </c> we've spent, but um those are assets we've spent, but um those are assets that<00:46:16.160><c>

Bills: HF4266

Committee: House Higher Education Finance and Policy

Transcript Highlights:

• So the cost of capital is divided between capital raised through debt, usually by selling bonds, and
• IOUs have a higher cost of capital.
• It includes costs like operations and maintenance and long-lived capital assets that are recovered over
• Utilities operate in capital markets. They compete for investment capital just like other firms.
• We have a cost of capital adjustment mechanism that can move the cost of capital over time.

Summary: The Senate Committee on Energy, Utilities and Communications held an oversight hearing focused on electric rates, utility regulation, affordability, reliability, and wildfire-related costs. The chair framed the discussion around the challenge of transitioning to a cleaner grid while keeping bills affordable and the system reliable, and noted the hearing also served as the annual update from the CPUC and Public Advocates Office. Professor Severin Borenstein gave a primer on utility regulation, explaining the split between deregulated generation and regulated transmission/distribution, the basics of cost-of-service regulation, and the role of return on equity. He argued that high allowed returns can encourage capital-intensive spending and that many public policy costs now embedded in rates would be better funded through the state budget, while warning that price caps or performance-based regulation are not silver bullets. CPUC President-designate Alice Reynolds described the commission’s role as economic regulator of investor-owned utilities and said affordability is being addressed through rate case scrutiny, reasonableness reviews, and legislative direction. She said wildfire mitigation and insurance costs have been major drivers of rate increases, but some wildfire-related costs are time-limited and will roll off rates over time. She also highlighted progress on clean energy procurement, battery storage growth, and integrated resource planning to meet climate goals while maintaining reliability. Reynolds said the CPUC is reviewing utility spending, disallowing imprudent costs where appropriate, and litigating at FERC to challenge transmission costs. Members pressed both witnesses on several issues, including whether rates are being inflated by legislative mandates and balancing accounts, whether utility returns are too high, and whether the state should shift more public-policy costs off electric bills and into the General Fund. Senators also raised concerns about load growth from data centers and ports, gas-system stranded assets as electrification advances, and whether the CPUC is over-regulating or discouraging innovation. Reynolds said the CPUC is working with the Energy Commission, CAISO, and the Air Resources Board on a holistic planning process, and pointed to tools such as interconnection reforms and demand flexibility. No votes were taken; the hearing was informational, with several follow-up requests for reports and data.

Transcript Highlights:

• Every single year that asset, that is the only asset of most middle-class and working-class people, is
• Every single year that asset, that is the only asset of most middle-class and working-class people, is
• You don't liquidate your asset.
• assets of the wealthy or the assets of regular working-class and middle-class people.
• </c><01:07:23.839><c> of</c> assets of the wealthy or the assets of assets of the wealthy or the assets

Committee: House Taxes