Transcript Highlights:

• The result is that many individuals who call California home have a California premium added to the cost
• not being done in California.
• of California, 40 million-plus members of California, constituents of California, do the math, because
• In California, yes.
• Jay Mason, teacher in Campbell, California, and living in Dublin, California, is opposing.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and revenue-related bills. 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, fuel, and utility costs. Supporters argued it would help families struggling with affordability, while opponents, including the California Tax Reform Association and CTA members, said California’s tax system already provides relief and that the bill would reduce General Fund revenue and harm schools. After extended debate, the bill was put on call and later failed on a 1-4 vote, though reconsideration was granted. SB 1287, by Senator Retado, would create a performance-based tax credit for short-line rail investments; supporters said it would improve freight efficiency, safety, emissions, and rural access, while opponents preferred direct grants. The bill was placed on call and later passed 5-0 to Transportation. SB 1407, by Senator Archuleta, would exempt military retirement pay and survivor benefits from state taxes; the author, State Treasurer Fiona Ma, and veterans’ groups said it would help retain veterans and their economic contributions in California, while CTA and CTRA opposed on General Fund grounds. The bill passed 5-0 to Military and Veterans Affairs. SB 1349, by Senator Gonzalez, would direct the LAO to review major tax expenditures for effectiveness and impacts on schools and the budget; CTA and CTRA supported it as a way to increase accountability, and it passed 4-1 to Governmental Organization. SB 1120, by Senator McNerney, would extend the California Competes Tax Credit through 2035 and make credits refundable for certain strategic industries; business and industry witnesses said this would help startups and manufacturers monetize credits and attract investment, and it passed 5-0 to Appropriations. SB 1275, also by Senator McNerney, proposed converting the state sales tax on vehicle purchases into a deductible vehicle license fee to reduce Californians’ federal tax burden; the LAO provided technical testimony, and the bill passed 4-0 to Transportation. The committee also heard SB 1078, by Senator Laird, to let Santa Cruz County voters consider a temporary local tax increase for health and safety-net services, but it was put on call. Later, the committee returned to SB 1314, by Senator Min, addressing youth tobacco and illicit smoke shop sales, but the transcript cuts off before final action on that bill.

Transcript Highlights:

• This is California.
• This is what made California, or as a part of the fiber of what made California what it is today.
• What made California, or as a part of the fiber of what made California what it is today, and to be able
• The California film and television industry has helped California become what it is.
• Housing California in support.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• This is California.
• This is what made California, or as a part of the fiber of what made California what it is today. ...
• The California film and television industry has helped California become what it is.
• California Nurses for Environment and Health and Justice, Children Now, Courage California, Defender
• , California, in support.

Summary: The committee heard and advanced several tax-related bills, beginning with AB 760, which would exempt settlement payments tied to the Garden Grove chemical incident from California income tax. The author and a school district trustee described evacuations, school closures, and losses to residents, businesses, students, and staff, arguing the payments should make victims whole rather than be taxed. There was support from the Orange County Board of Supervisors, no opposition, and the bill passed 3-0 to Appropriations, with committee amendments accepted. Members then heard AB 2319, creating a California post-production tax credit for film and television work done in-state, even when principal photography occurred elsewhere or the project did not receive the existing film credit. The author and supporters from the Motion Picture Editors Guild, California Post Alliance, and others said post-production jobs and facilities are leaving California and that the bill would help retain high-wage work; opponents were not present. The committee members generally supported the measure, and it passed 3-0 to Appropriations. AB 2186 followed, excluding future reparations benefits for descendants of formerly enslaved people from state income tax. The author and NAACP California-Hawaii State Conference said taxing such benefits would undermine reparative justice; there was no opposition, and the bill passed 3-0. The committee also heard AB 762, which would ban the sale of disposable nicotine vapes and add enforcement tools. Supporters, including waste, recycling, local government, and public health groups, said disposable vapes create fire hazards, waste problems, and costs for local agencies; opponents argued the bill would mainly eliminate the legal market while leaving illicit products untouched and urged stronger enforcement instead. The author accepted committee amendments adding CDTFA enforcement, but the bill was not voted on because a motion was pending and members were absent. Later, AB 1519, AB 2172, AB 2222, AB 1793, AB 2089, and AB 1265 were heard and each received support from committee members and passed 2-0 or 3-0 to Appropriations, with amendments accepted where noted. AB 1519 clarified that the 20-year tax collection statute of limitations should not be reset by later fees or penalties; AB 2172 would let large counties use a single assessment appeals commissioner for complex property tax appeals; AB 2222 would create a temporary tax credit for local news organizations to retain and hire journalists; AB 1793 would authorize symmetrical cash rounding to the nearest nickel after the federal penny phaseout; AB 2089 would streamline the welfare exemption filing process for affordable housing; and AB 1265 would extend and revise the historic building tax credit to encourage adaptive reuse for housing and mixed-use projects.

Transcript Highlights:

• If the label says California, it means 100% California-grown.
• That particular case had to do with California wines made in California that carry a California appellation
• That particular case had to do with California wines, made in California that carry a California Appalachian
• In California that are using a California appellation.
• So if we're talking about California and being California, this is not helping California.

Summary: The committee heard several bills, with extensive testimony and debate. AB 2507 by Assembly Member Wynn would strengthen state consultation with federally recognized tribal governments by requiring clearer tribal liaison roles, a tribal advisory committee, and more consistent early engagement across agencies. Support came from Wilton Rancheria and the California Tribal Business Alliance, with members praising the bill as improving respect, coordination, and outcomes for tribes. AB 2024, also by Wynn, would require the Outdoor Advertising Act permitting process to reach a determination on submitted applications, aimed at reducing delays and uncertainty; it drew support from the outdoor advertising industry and the California Association of Realtors, with members describing it as a technical cleanup measure. Both bills were later moved to Appropriations, along with a consent calendar of several other measures. AB 1585 by Assembly Member Connolly would require wine labeled as American to be made from 100% American-grown grapes, aligning the federal “American” label with California’s existing 100% state-origin standard. Supporters, including California wine grape growers, family wineries, consumer advocates, and several local agricultural groups, argued the bill would improve truth in labeling and help struggling growers. Opponents from major wine companies and industry groups warned it could reduce flexibility, create labeling complications, and limit the ability to list varietal and vintage on some blended wines. After a lengthy debate over labeling standards, consumer expectations, and impacts on interstate wine sales, the committee passed the bill to Appropriations. AB 1605 by Assembly Member Ransom would allow judges to place a no-alcohol-sales notice on the licenses of repeat or serious DUI offenders, restricting their ability to purchase alcohol as a preventive measure. Supporters, including the California Police Chiefs Association, the Safe California Roads Coalition, and the California Association of Highway Patrolmen, said the bill would give courts another tool to reduce recidivism and save lives. Retailers and restaurant representatives raised concerns about implementation and ID-checking burdens, but the bill was amended and passed to Appropriations. AB 2211 by Assembly Member Hoover, which would allow craft distillers to operate a second tasting room, also advanced with support from the California Distillers Association. Finally, AB 1578 by Assembly Member Jackson, presented by Assembly Member Solache, would require anti-hate speech training for local and state elected officials; it drew strong opposition over First Amendment and definitional concerns, and members pressed for a clearer definition of hate speech before further action.

Transcript Highlights:

• California is the...
• Those same California invented and innovation spillovers outside of California.
• California dealing with the affordability issues of California.
• Can we help you stay in the state of California and grow in the state of California?
• California has the demand.

Summary: The committee held an informational hearing on California’s industrial policy and manufacturing, with opening remarks emphasizing the state’s large manufacturing base, the need to retain and scale advanced manufacturing in California, and the tension between economic growth, climate goals, labor standards, permitting, and energy reliability. Senators and witnesses repeatedly noted that California has strong innovation assets, but companies often face uncertainty around regulation, power availability, and the cost of expanding here, leading some to locate manufacturing elsewhere. Senator Wahab highlighted Fremont as a major manufacturing hub and stressed apprenticeship pathways, community college partnerships, and good-paying jobs for both college-educated and non-college workers. California Forward’s Agon Turplin and Jake Higden argued for a durable statewide regional economic development system with ongoing funding, regional strategic plans, and sector-specific roadmaps. They said California Jobs First and related regional planning efforts created useful infrastructure, but the system remains fragmented and one-time funded. Higden focused on “green industrial policy,” especially batteries, bioeconomy, and other clean manufacturing sectors, arguing California often funds R&D but loses the manufacturing scale-up phase to other states. Priyanka Mohanti of the Center for Manufacturing a Green Economy said climate policy must be paired with industrial policy so Californians can actually benefit from the transition through affordable clean products, good jobs, and domestic supply chains. She pointed to international examples such as India, Brazil, and China, and urged tools like public investment, procurement, loan guarantees, and supply-chain planning. Industry witness Josh Richmond, drawing on experience at Bloom Energy and Cy Quantum, said energy and economic development are inseparable and that “time to power” is often decisive in site selection. He argued California needs better coordination among the state, utilities, universities, national labs, and economic development agencies, and that the state should be more proactive and creative in helping strategic industries scale. Committee members discussed the role of high energy costs, regulatory burdens, K-12 education, and cap-and-trade, with Senator Niello raising concerns about business climate, education outcomes, and the cost impacts of climate regulations. Witnesses responded that California should balance regulation with benefits, and that regional coordination and state partnership can help companies navigate red tape and stay in-state. The second panel, from labor, supported a worker-led industrial policy. Sarah Flox of the California Labor Federation said manufacturing jobs can be good jobs only when paired with labor standards, apprenticeship pipelines, and public support tied to worker protections. Tom Hincey of UAW Region 6 said California should use public financing, procurement, off-take agreements, and, where appropriate, public ownership or equity stakes to localize supply chains and create union jobs in batteries, offshore wind, and heat pumps. The final panel featured Fremont economic development director Donovan Lazaro, who said Fremont has become California’s top manufacturing city by preserving industrial land, allowing by-right zoning, reducing permitting delays, and building in-house technical expertise to support advanced manufacturers. He said the city’s approach has helped double its manufacturing workforce and strengthen its tax base. No votes were taken; the hearing was informational and ended with committee members indicating they would continue working on follow-up legislation and coordination efforts.

Transcript Highlights:

• Armenians have been immigrating to California as early as the 1880s, and today California is home to
• California State Assembly for organizing the Select Committee on California and Armenia Mutual Trade,
• and Armenian companies wishing to learn more about doing business with California and in California.
• to the state of California.
• The startups our accelerators bring to California and support in California incorporate here, hire here

Summary: The inaugural meeting of the Select Committee on California and Armenia Mutual Trade, Art, and Cultural Exchange focused on strengthening California-Armenia ties through trade, investment, education, culture, and diplomacy. Chair Harabedian and Assemblymember Caloza opened by emphasizing the importance of the Armenian-American community in California and the committee’s goal of expanding opportunities for business, job creation, cultural preservation, and academic exchange. The Republic of Armenia’s ambassador and the Armenian Consul General both described Armenia as a growing strategic partner for California, highlighting recent peace and connectivity developments, Armenia’s diversification strategy, and the role of the Armenian diaspora in linking the two places. The first panel featured Lieutenant Governor Eleni Kounalakis and Go-Biz trade specialist Trisha Utterback. Kounalakis reviewed the 2019 California-Armenia framework agreement and the opening of the California trade and services desk in Yerevan, noting growth in academic ties and California’s support for Armenia’s sovereignty and territorial integrity. Utterback outlined Go-Biz’s trade and investment programs and reported that California-Armenia two-way trade has more than doubled since 2019, with exports rising sharply; she cited examples of California companies expanding into Armenia and Armenian businesses seeking California opportunities. Members asked about future priorities, and panelists pointed to tech, clean energy, agriculture, and continued outreach through trade and investment programs. A second panel centered on Glendale’s role as a gateway for the partnership. Mayor Ara Najarian described Glendale’s large Armenian-American population, the Armenian American Museum, sister-city relationships, and the city’s role in cultural and economic diplomacy, while also raising concerns about Artsakh, displaced Armenians, detainees, and discrimination against Armenian Americans. Vahe Kozoyan of ServiceTitan shared his company’s growth from a Glendale startup to a global firm with major operations in Armenia, and Armina Galstian of SmartGate VC and Hero House Glendale described a California-Armenia innovation corridor supporting startups, AI, robotics, cybersecurity, and neuroscience. Committee members discussed how the state can further support the partnership through investment, delegation visits, education, innovation hubs, and ensuring Armenian-owned businesses are not excluded from supplier diversity and anti-discrimination protections.

Transcript Highlights:

• The result is that many individuals who call California their home have a California premium added to
• not being done in California.
• In California, yes.
• Jay Mason, teacher in Campbell, California, and living in Dublin, California. I am opposing.
• It keeps industries and their knowledge and skills in California, and it keeps jobs in California.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• California is not a passive actor.
• Visit California.
• to reinvest into California.
• California.
• There's no California dollar.

Summary: The Assembly Select Committee on Asia, California, Trade and Investment held its first informational hearing to examine California’s trade, tourism, and investment ties with Asia and the effects of federal tariffs. Chair Jessica Caloza opened by emphasizing California’s role as the world’s fourth-largest economy and a major exporter to Asia, and several members and guests highlighted the importance of subnational diplomacy, sister-city relationships, and coordinated trade missions. Lieutenant Governor Eleni Kounalakis described California’s long-standing engagement with Asian partners, citing trade missions, the 2023 APEC summit in California, and the state’s large Asian American and Pacific Islander population as reasons to deepen these relationships. The first panel focused on trade, tourism, and foreign investment. Leaders from the Los Angeles County Economic Development Corporation, the San Francisco Chamber of Commerce, and Visit California said California’s economy depends heavily on Asia-linked trade, tourism, and direct investment. They warned that federal tariffs and related policy uncertainty are disrupting ports, logistics, manufacturing, education, and travel, with impacts on longshore work, shipping volumes, international students, and visitor spending. Visit California reported a decline in 2025 visitation, especially from Asia and Canada, and urged stronger promotion, partnerships, and state-level support to maintain California’s global brand. The second panel examined tariff impacts in more detail. Glenn Fukushima and Dr. Kyle Handley said tariffs function as taxes on imports, raising costs for businesses and consumers and discouraging investment when policy changes are frequent and unpredictable. They argued California is especially exposed because of its ports, supply chains, and cross-border trade with Asia and Mexico, and warned that new vessel fees and rerouted freight could further harm California shippers. Both said tariffs are unlikely to achieve clear strategic goals quickly and may damage U.S. credibility and long-term trade relationships, while recommending that California focus on making itself more competitive through infrastructure, permitting reform, export assistance, and other measures within state control. The final panel turned to future opportunities and the role of small businesses. Speakers from the San Diego Regional Chamber of Commerce, the Asian Business Association California, and the Small Business Development Center network stressed that small and minority-owned firms often feel trade disruptions first and need more access to trade missions, capital, technical assistance, and large events that generate business spillover. They said California should continue investing in ports, business support systems, and international partnerships so that trade and tourism gains reach businesses across the state.

Transcript Highlights:

• California is not a passive actor.
• , have travel and many sales missions around the world, selling California, talking about California,
• Visit California.
• state of California.
• Between California and Asia.

Summary: The Assembly Select Committee on Asia, California, Trade and Investment held its first informational hearing to examine California’s economic ties with Asia, the effects of federal tariffs, and ways the state can strengthen trade, investment, tourism, and subnational diplomacy. Chair Jessica Caloza opened by emphasizing California’s role as the world’s fourth-largest economy and a major exporter to Asia, and several members and guests highlighted the importance of AAPI communities, sister-city relationships, and coordinated state outreach. Lieutenant Governor Eleni Kounalakis described California’s trade missions, APEC hosting, and ongoing climate and trade partnerships, while Japan’s deputy consul general underscored Japan’s role as a major investor and trading partner and encouraged continued engagement. The first panel, featuring leaders from the Los Angeles County Economic Development Corporation/World Trade Center Los Angeles, the San Francisco Chamber of Commerce, and Visit California, focused on trade, tourism, and investment trends. Witnesses said tariffs and federal uncertainty are disrupting logistics, manufacturing, business travel, higher education, and tourism, with particular concern about port activity, international student declines, and reduced visitation from Asia. They urged California to remain “open for business,” invest in promotion and infrastructure, and use trade missions, MOUs, and sister-city ties to maintain relationships and attract investment. The second panel, with economist Kyle Handley and trade expert Glenn Fukushima, focused on the mechanics and consequences of tariffs. Both said tariffs function as taxes on importers and consumers, raise costs for businesses, and create uncertainty that delays investment, hiring, and supply-chain decisions. They warned that California is especially exposed because of its ports, cross-border trade, and reliance on global supply chains, and said new federal vessel fees and shifting trade routes could divert commerce away from California. They argued that the long-term damage includes lost growth and reduced U.S. credibility, and recommended that California “tariff-proof” its economy through faster ports, better infrastructure, export assistance, and reduced permitting barriers. In the final panel, representatives from the San Diego Regional Chamber of Commerce, Asian Business Association California, and the Small Business Development Center emphasized future opportunities and the needs of small businesses. They said California should deepen ties with Asia through conventions, tourism, and sector-specific partnerships in life sciences, clean tech, semiconductors, hospitality, and small business trade. The witnesses stressed that small and minority-owned businesses need more access to trade missions, capital, technical assistance, and state support, and that California’s economic strength depends on coordinated efforts across regions and industries.

Transcript Highlights:

• If California wants to win, we have to be able to say credibly and early that if you choose California
• California dealing with the affordability issues of California.
• Can we help you stay in the state of California and grow in the state of California?
• California has the demand.
• When California made innovation, When California made innovations move manufacturing out of California

Transcript Highlights:

• Coalition, California Child Care Resource and Referral Network, California Commission on the Status
• Coalition, California Child Care Resource and Referral Network, California Commission on the Status
• , California Child Care Resource and Referral Network, California Commission on the Status of Women and
• California, and Child Poverty, California, Family Values at Work, Gender Affirming Professionals, and
• Council of Sheet Metal Workers, the California State Pipe Trades Council, the California Coalition of

Committee: Senate Labor, Public Employment and Retirement

Summary: The committee heard and advanced several labor-related bills. SB 1166 would place AC Transit employees under PERB jurisdiction for unfair labor practice disputes; supporters said it would reduce cost and delay compared with court litigation, AC Transit was neutral, there was no opposition, and the bill passed 4-1 and later 4-1 on call. SB 1054 would add wage-data elements to state reporting to improve Medi-Cal and other eligibility verification and strengthen workforce-program data; supporters emphasized reducing administrative burden and improving accountability, and it passed 4-0, later 5-0 on call. SB 1149 would expand bereavement leave to cover a “designated person” and align it with other family-leave laws; it drew broad support from caregiving, LGBTQ+, labor, and advocacy groups, no opposition, and passed 3-0, later 5-0 on call. The committee also considered SB 909, which would raise and index public works contractor registration fees and prevailing-wage penalties and direct more penalty revenue to enforcement. Supporters argued it would deter wage theft and fund enforcement staffing, while contractor groups warned it would raise costs, increase uncertainty, and not solve staffing delays; the bill passed 2-1 and later 4-1 on call. SB 1132 would require a standardized know-your-rights curriculum through the workforce development system; supporters said workers need rights education at job-entry points, especially immigrants and other vulnerable workers, and the bill passed 3-1, later 4-1 on call. SB 1241 sought to strengthen enforcement of skilled-and-trained workforce requirements on public works projects by defining substantial compliance, limiting repeated reliance on compliance plans, and increasing accountability for reporting failures. Labor supporters said it would close loopholes and protect apprenticeship-trained workers, while contractor groups argued the market lacks enough qualified workers and that the bill could increase penalties and debarment risk; after extended debate it passed 4-1. Finally, SB 1038 would require CalPERS to notify unions when employer audits are initiated so they can assist members facing repayment or pension adjustments; supporters said it would help workers navigate audit consequences, there was no opposition, and it passed 4-0 before the committee adjourned.

Transcript Highlights:

• California patients.
• AB 54 affirms that doing so is legal in California, AB 54 affirms that doing so is legal in California
• And like California Bridge did with addiction care in California and emergency... ...intended pregnancy
• California.
• Black Women for Wellness Action Project, the California Black Women's Health Project, the California

Committee: House Health

Summary: The Assembly Health Committee met on April 8 and heard a long series of bills focused largely on reproductive health, public health, housing, and health workforce issues. Early items included AB 54 and AB 260, both aimed at protecting access to medication abortion in California by shielding providers, manufacturers, pharmacies, and others from liability and by preserving access through telehealth and other delivery methods. Supporters, including the Attorney General’s office, Planned Parenthood, Black Women for Wellness, and other reproductive justice groups, argued the bills were needed to preserve access after Dobbs and amid federal threats. Opponents from the California Family Council and California Catholic Conference argued the measures removed safeguards and promoted unsafe abortion access. Both bills were moved forward on committee votes. The committee also heard AB 551, which would create a pilot program to help emergency departments provide evidence-based reproductive health services, and AB 309, which would remove sunset dates on laws allowing pharmacists to sell syringes without a prescription and clarifying that possession of sterile syringes for personal use is not a crime. AB 551 drew support from emergency physicians and reproductive health organizations, while opponents said it would expand abortion access without adequate safeguards. AB 309 was supported by public health, pharmacy, and harm-reduction groups as a proven HIV and hepatitis prevention tool; the California Narcotic Officers Association opposed it. AB 309 was approved, while AB 551 was also advanced. Other measures advanced included AB 536, which would preserve colorectal cancer screening coverage if federal preventive-care rules are disrupted; AB 804, which would make housing support services a Medi-Cal benefit and seek federal matching funds; AB 594, which would protect students from being charged for school health insurance after they withdraw and require notice of premium increases; AB 836, which would study and expand California’s midwifery education pipeline; AB 1418, which would require reporting on health coverage trends for eligible employees; and AB 1500, which would expand and preserve abortion.ca.gov as a trusted reproductive health information resource. Each drew supportive testimony from sponsors, health care providers, and advocacy groups, with some opposition to AB 1500 arguing the state should provide broader women’s health information rather than an abortion-focused site. Most of these bills were moved out of committee on party-line or near-party-line votes, and several measures were placed on call before final roll calls.

Transcript Highlights:

• Jane Salmalley with AFTS ME California and strong support. Connie Chan on behalf of California...
• and for California.
• So today, California... ...that California deserves from its public servants.
• California needs firefighters.
• California.

Summary: The committee heard a series of bills focused largely on labor, education, workforce, and public employment issues. AB 65 would provide public school employees up to 14 weeks of leave with full benefits for pregnancy and pregnancy-related health issues; supporters said current rules force educators to exhaust sick leave and suffer long-term retirement penalties, while the bill’s author noted it mirrors budget trailer language. AB 1818 would change HEERA procedures for CSU bargaining by shifting certain renegotiation disputes to PERB; Teamsters and other labor groups supported it as a way to stop CSU from unilaterally refusing agreed raises, while CSU moved from opposed to neutral after amendments. AB 1940 would explicitly reference menopause, perimenopause, and postmenopause in workplace protections; supporters said it would clarify rights and improve awareness, while business opposition argued existing reasonable-accommodation law already covers these issues and warned of expanded liability. AB 1534 would add guardrails for new short-term Workforce Pell programs, including tuition caps, limits on income-share agreements, and transparency around partnerships with unaccredited entities; the author later said the bill would be amended to include private institutions. AB 1896 would bar people who participated in immigration enforcement from holding California public jobs during a specified period; supporters framed it as a public-trust measure, while police and public-safety groups opposed categorical exclusion and urged a more individualized vetting approach. AB 2300 would streamline distribution of WIOA workforce funds and reduce delays in local workforce board contracting, with supporters emphasizing faster service delivery and no reduction in accountability. AB 2223 would require CDCR to report standardized data on contracted medical and mental health staffing, vacancies, and costs, following an audit that found heavy reliance on contractors and poor transparency. AB 2483 would create a pathway and certification for formerly incarcerated firefighters to move into firefighting careers after release, with strong support from the author and witnesses who described the work as a real career path and reentry opportunity. AB 2142 would require temporary classified school employees working more than 75% of the school year to receive permanent-employee benefits and protections; school administrators and community college groups opposed it as too rigid for grant-funded and fluctuating positions. AB 2367 would require quarterly reporting from state-run health care facilities on vacancies, overtime, registry/contract staffing, and missed staffing minimums, building on state auditor recommendations; health care workers supported it as a transparency and accountability measure. Several measures were voted out of committee or placed on call. AB 1818, AB 1534, AB 2300, AB 2483, and AB 2223 all received do-pass votes to the Senate Appropriations Committee, though each was placed on call after roll call. AB 65 and AB 1940 also advanced on do-pass motions but were placed on call. AB 2142 received a do-pass vote with opposition and was placed on call. S.J.R. 15, a resolution urging Congress to protect California employers from higher federal unemployment taxes tied to the state’s UI debt, drew divided testimony: business groups supported it, while labor and some members argued California should solve the problem itself and keep the unemployment system solvent; the resolution was also placed on call. The transcript also included committee discussion about working with authors on amendments, especially for AB 1940 and AB 1534, and several members noted support or co-authorship while raising concerns about implementation details and fiscal impacts.

Transcript Highlights:

• Those same California invented and innovation spillovers outside of California.
• If California wants to win, we have to be able to say credibly and early that if you choose California
• Can we help you stay in the state of California and grow in the state of California?
• California has the demand.
• We have California Competes.

Summary: The Select Committee on Economic Development and Technological Innovation held a hearing on California’s industrial policy and manufacturing competitiveness. In opening remarks, the chair and Senator Wahab emphasized manufacturing’s role in good jobs, climate leadership, and regional economic growth, while noting barriers such as regulatory uncertainty, energy costs, permitting delays, and the loss of manufacturing jobs over time. They highlighted California Jobs First, workforce development, and the need to keep innovation and manufacturing in-state rather than losing scale-up opportunities to other states. The first panel featured California Forward and the Center for Manufacturing a Green Economy, along with an industry representative. Witnesses argued that California needs a durable, regionally based economic development system with ongoing funding, stronger state coordination, and sector-specific industrial roadmaps. They focused on advanced manufacturing and clean industry, especially batteries, bioeconomy, offshore wind, and heat pumps, and said industrial policy should help bridge the “missing middle” between research and commercial production. The industry witness stressed that power reliability, time to power, and coordinated utility engagement are decisive in site selection, and that California must better align utilities, state agencies, universities, and labs to compete for major projects. Senator Niello raised concerns about California’s business climate, including regulations, labor laws, energy reliability, K–12 education outcomes, and the cost impacts of climate policy. Panelists responded that California can compete by improving coordination, packaging existing state resources, and targeting strategic industries rather than racing to the bottom on taxes or wages. The second panel, from labor organizations, supported a worker-led industrial policy with strong labor and environmental standards, public financing, procurement, and targeted support for manufacturing firms. They cited examples such as union apprenticeship pathways, revolving loan funds, and programs with labor standards, and argued that manufacturing jobs can support both climate goals and middle-class employment. The final panel began with Fremont city officials, who described Fremont as the state’s leading manufacturing city and a model of intentional local policy. They said the city has protected industrial land, streamlined support for manufacturers, and doubled its manufacturing technician workforce over the past decade. The hearing concluded with discussion of how state and local governments can better coordinate to attract and retain manufacturing investment, with members and witnesses agreeing that California has strong assets but needs more proactive, integrated economic development tools.

Transcript Highlights:

• , and Vets Department of California, the California State... ...representing the American Legion, Department
• of California, MVETS Department of California, the California State Commanders Veterans Council, the
• This bill keeps revenues in California. We must keep our veterans in California.
• SB 1407 gives California a choice.
• If anyone deserves to live in California, to afford to live in California, it is our veterans.

Committee: House Military and Veterans Affairs

Transcript Highlights:

• So it's Maxwell Johnson, who is with California Competes, and Zima Creason with the California Edge Coalition
• Coalition, California Child Care Resource and Referral Network, California Commission on the Status
• Coalition, California Child Care following organizations, Breastfeet LA, California Breastfeeding Coalition
• , California Child Care Resource and Referral Network, California Commission on the Status of Women and
• California, and Child Poverty, California, Family Values at Work, Gender Affirming Professionals, and

Committee: Senate Labor, Public Employment and Retirement

Transcript Highlights:

• or taxed in California.
• Most commonly, this is done in California by the percentage of sales that occur in California.
• When a corporation derives income both in and outside of California, California may tax a portion of
• Ronald Reagan threatened to preempt California. California backed down in 1987.
• We save California money. Every time we go into the home, we make... We save California money.

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the Water’s Edge election versus worldwide combined reporting. Chairs opened by framing the issue as a review of whether current rules fairly and sufficiently tax foreign subsidiary income, given profit shifting concerns, budget pressures, and the long history since Water’s Edge was adopted in the 1980s. The first panel from the Legislative Analyst’s Office and Franchise Tax Board explained the mechanics of unitary taxation, apportionment, and the Water’s Edge election, and provided filing data showing Water’s Edge filers are a small share of returns but account for a large share of corporate tax liability. FTB witnesses said the agency already administers both methods and could handle a shift to mandatory worldwide reporting with education and outreach, though revenue estimates are difficult because foreign affiliate information is not directly available. Committee members asked about foreign government pushback, administrative burden, industries with more profit shifting, revenue uncertainty, and whether companies would leave California. LAO and FTB witnesses said pushback from foreign governments was plausible, but they did not expect major business flight because California’s tax is largely based on sales rather than physical presence. They also said worldwide reporting could reduce profit shifting but might increase revenue volatility and litigation risk. A second panel of academic and tax policy witnesses argued that Water’s Edge is a loophole that rewards aggressive tax planning, that worldwide combined reporting would better capture income tied to California, and that modern federal and international rules such as NCTI/GILTI, CAMT, and Pillar Two reduce compliance concerns and make a return to worldwide reporting more feasible. They also said California’s current system can create selection effects and may under-tax large multinationals. In the next panel, a California Budget and Policy Center witness urged eliminating the Water’s Edge election, calling it a costly loophole that benefits large global corporations over smaller domestic businesses and deprives the state of billions in revenue that could support health care and other services. A Silicon Valley Leadership Group witness gave historical context for why Water’s Edge was adopted and began outlining concerns about compliance, double taxation, and the risk of overreaching beyond income truly connected to California. No bill was voted on or advanced; the hearing was informational only, with members using the testimony to weigh the policy trade-offs and possible transition periods if the Legislature were to change the current rules.

Transcript Highlights:

• not being done in California.
• In California, yes.
• When the medium home value in California is $855,000, roughly, the medium home value in California is
• Jay Mason, teacher in Campbell, California, and living in Dublin, California. I am opposing.
• It keeps industries and their knowledge and skills in California, and it keeps jobs in California.

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:

• or taxed in California.
• Most commonly, this is done in California by the percentage of sales that occur in California.
• When a corporation derives income both in and outside of California, California may tax a portion of
• facilities in California.
• Ronald Reagan threatened to preempt California. California backed down in 1987.

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• Sarah to Kett on behalf of the rural county representatives of California and the urban counties of California
• , California, Jewish Center for Justice, Lyon Martin Community Health Services, Parent Voices, California
• Also registering support for the following: California Breastfeeding Coalition, California Partnership
• of California Caregiver Resource Centers, California Work and Family Coalition, and Equal Rights Advocates
• Sarah Ducat on behalf of the Rural County Representatives of California and the Urban Counties of California

Committee: House Labor and Employment