Transcript Highlights:

• those small businesses are LLCs. those small businesses are LLCs.
• Or maybe I own four LLCs with this sister and two LLCs with my brother and two more with my mother.
• four LLCs with this sister and two LLCs four LLCs with this sister and two LLCs with<01:08:44.280
• have crafted ownership interest in LLCs. have crafted ownership interest in LLCs.
• So, I've got Montana LLC one, Montana LLC two, three, four, five.

Keywords: House streaming session for Friday, April 3, 2026, 957, house, all

Summary: The House convened with 113 members present and took up House Bill 774, a local enabling bill on residential landlord-tenant good-cause termination and eviction standards. The sponsor and floor leader described the bill as intended to create stability for families and communities by limiting nonrenewal of leases without good cause, while emphasizing that it would only take effect if adopted by local counties. The bill’s stated good-cause grounds include repeated late rent payment, lease violations, and other specified reasons. Several amendments were offered and debated. One amendment sought to require tenants to keep paying rent, late fees, and other lease obligations during any legal challenge to a nonrenewal; the floor leader argued this was redundant because existing law already requires payment during holdover proceedings, and the House rejected the amendment by roll call, 79 in the negative. Another amendment added a good-cause ground where housing is tied to employment on the property and the employment ends; the floor leader accepted it as a friendly amendment, and it was adopted. A further amendment exempted short-term rentals such as VRBOs from the bill; it was also accepted as friendly and adopted. The House then rejected another amendment that would have changed the late-rent good-cause standard from four notices in a 12-month period to three. The sponsor argued the change would reduce the time and financial burden on small landlords, while the floor leader responded that the bill did not alter existing eviction timelines for nonpayment and that the current four-instance standard was appropriate. Finally, an amendment to extend access to the state’s eviction counsel fund to low-income landlords was offered, with the sponsor arguing for fairness to small property owners; the floor leader opposed it, saying the fund was created to represent low-income tenants and that most landlords are already represented. The transcript cuts off before the final vote on that amendment.

Transcript Highlights:

• A series LLC consists of a parent or umbrella LLC from which one or more sub-LLCs, or series, branch
• A series LLC consists of a parent or umbrella LLC from which one or more sub-LLCs, or series, branch
• Without a series LLC, they have to form separate LLCs for each business.
• There are currently 23 jurisdictions in the United States that allow series LLCs to be formed.
• Anybody have any thrilling questions about LLCs? About series LLCs, excuse me. Seeing no questions.

Summary: The Committee on Commerce and Tourism convened with several members present and Senators DiCeglie and McClain excused. The committee first heard a presentation from Greg Britton, State Director of the Florida Small Business Development Center Network, who described the network’s statewide small-business assistance, including startup support, export and contracting help, disaster recovery, and rural outreach. He highlighted reported 2023 impacts such as $3.9 billion in sales generated, $575.9 million in government contracts, $346.2 million in capital, and support for 2,009 new businesses, including 130 manufacturing firms over the past two years. Members asked about comparisons with SCORE and about measuring rural success, with the chair suggesting jobs and wages in rural areas would be useful metrics; Britton said he could provide job data but was unsure about wage information. The committee then took up SB 320 by Senator Gates, which creates a five-year demonstration project for an alternative licensure pathway for surveyors and mappers. The bill would allow a “first-step” probationary license based on industry certification, apprenticeship, recommendation from a licensed Florida surveyor, and passage of the Department of Agriculture exam within the five-year period, without requiring a four-year degree. Senators asked about the labor shortage, education requirements, foreign workers, and moral character standards. Gates said the shortage is chronic and worsening, the bill has no degree requirement, and anyone meeting the qualifications could proceed regardless of visa status. The committee voted to report SB 320 favorably. Next, the committee considered SB 316 by Senator Berman, which authorizes series limited liability companies in Florida and sets rules for how Florida and foreign series LLCs may operate and transact business in the state. Berman explained that the bill is intended to let businesses isolate liabilities across separate series while providing clearer rules for Florida citizens and businesses dealing with such entities. There were no substantive questions, one appearance form in support, and the committee voted to report SB 316 favorably before adjourning.

Transcript Highlights:

• A SERIES LLC CONSISTS OF A PARENT OR UMBRELLA LLC FROM WHICH ONE OR MORE SUB LLCS OR SERIES BRANCH OFF
• WITHOUT A SERIES LLC THEY HAVE TO FORM SEPARATE LLCS FOR EACH BUSINESS.
• AND THERE ARE CURRENTLY 23 JURISDICTIONS IN THE UNITED STATES THAT ALLOW SERIES LLC TO BE FORMED.
• HAVE FOREIGN SERIES LLC THAT WOULD NOT TRANSFER OVER INTO FLORIDA AND THAT IS HOW FORIEGN SERIES LLCS
• ABOUT SERIES LLCS? SEEING NO QUESTIONS ARE THERE APPEARANCE FORMS? DOUGGAN BELL. THANK YOU.

Keywords: 999, senate, all

Transcript Highlights:

• But it is difficult to know who they are when you're just dealing with an LLC.
• Can you tell us why this bill only deals with LLCs and not any other structure?
• >> SO THE LLC TRANSPARENCY ACT So the LLC Transparency Act and the requirements, from what I recall
• as opposed to other LLCs throughout the country.
• LLCs fail miserably often in this regard, and that is why Disclosure is needed.

Keywords: 993, senate, all

Summary: The Senate opened with prayer, the Pledge of Allegiance, and approval of the prior day’s journal, then moved through a series of introductions and resolutions recognizing Women’s History Month honorees, Prince Hall Masons and Eastern Stars, Agriculture Week, Pakistan-American Heritage Day, visiting Mercaz Academy students, and the 175th anniversary of Albany Law School. Several senators spoke in support of the commemorations, and each resolution was adopted. The chamber then took up a number of bills on the calendar. Among the measures passed were bills related to insurance, private housing finance, public health, mental hygiene, real property, elder law, public authorities, and environmental conservation. One bill on the Environmental Conservation Law drew a procedural challenge over a proposed amendment; the Chair’s ruling that the amendment was nongermane was upheld by a show of hands, after which the bill passed. Another bill amending the Emergency Tenant Protection Act was debated on the issue of vacant rent-stabilized units and LLC ownership transparency, with supporters saying it would help identify responsible owners and opponents arguing it was too broad and could impose unclear penalties; it ultimately passed. The most extended debate centered on a real property bill concerning electronic rent payment systems and automated clearinghouse fees. Supporters framed it as a transparency measure that lets tenants choose whether to use such systems, while critics questioned how fees would be handled and whether the bill would affect landlord costs. After debate, the bill passed. A public health bill sponsored by Senator Webb also passed after she explained it was intended to improve transparency and oversight of changes to maternity and perinatal services amid concerns about maternal health deserts and hospital closures. The Senate then completed the calendar and adjourned until the next day.

Transcript Highlights:

• A series LLC consists of a parent or umbrella LLC from which one or more...
• A series LLC consists of a parent or umbrella LLC from which one or more sub-LLCs or series branch off
• And instead, there are 23 other jurisdictions now that allow LLCs to be formed as series LLCs, and we
• And instead, there are 23 other jurisdictions now that allow LLCs to be formed as series LLCs, and we
• That transact business to have our own Florida series LLCs, as well as allow foreign series LLCs that

Summary: The Judiciary Committee considered a long agenda of claims bills, housing and business measures, and court-administration legislation. It reported favorably several claims bills, including SB 20 for J.N., a minor, SB 14 for the estate of Pennial Janvier, SB 10 for Sidney Holmes, SB 8 for Marcus Button, SB 22 for Eric and Jennifer Miles, and SB 26 for Kristen and Leah McIntosh. Members also approved SB 520 on curators of estates, SB 386 on self-storage lien-sale notices, SB 362 on reusable tenant screening reports, SB 316 creating series LLCs in Florida, and SB 1650 and SB 1652 on vexatious litigants and related public-records issues. SB 248, expanding eligibility for private school and homeschool students to participate in FHSAA sports at public schools, also passed after amendment. Most of the claims bills were described as settled cases with amounts above sovereign-immunity limits, and several senators spoke in support of compensating victims of catastrophic injury or wrongful conviction. SB 10 drew comments about the 34 years Sidney Holmes spent incarcerated after a wrongful conviction, and SB 8 prompted discussion about the long delay in resolving Marcus Button’s injuries from a 2006 school-bus crash. SB 26 was presented as an uncontested claim arising from a DACS employee’s fatal crash that severely injured two teenage girls, and the committee adopted an amendment placing funds for the minor claimant into trust. The policy bills drew more substantive debate. SB 386 would let self-storage operators use websites instead of newspaper ads for lien-sale notices, with newspaper representatives opposing the change and storage-industry witnesses supporting modernization and lower costs. SB 362 would let renters reuse tenant screening reports for 30 days, with the sponsor saying it would reduce repeated application fees. SB 316 would authorize series LLCs while adding record-keeping protections, and SB 1650/1652 would broaden Florida’s vexatious-litigant rules and create a public-records exemption for certain stricken filings. SB 248 passed over concerns from private-school and public-education witnesses about instructional time, funding, and fairness in athletic participation. All measures were reported favorably, with recorded votes ranging from 7-2 on SB 248 to unanimous or near-unanimous support on the other bills.

Transcript Highlights:

• This changes it so that in your LLC... changes it so that in your LLC agreement or operating agreement
• So your companies like your LLC and your... so your companies like your LLC and your nonprofit.
• Are you saying LLC to LLC, or it could be... It could be any number of things.
• If you have an LLC, you're a member... if you have an LLC and you die, currently the way to transfer
• It's the actual legal document that governs the LLC, that's usually created at the inception of the LLC

Keywords: 1136, house, all

Transcript Highlights:

• A SERIES LLC CONSISTS OF A PARENT OR UMBRELLA LLC FROM WHICH ONE OR MORE SUB LLCS OR SERIES BRANCH OFF
• EACH CHILD SERIES OR SUB LLC WILL HAVE ITS OWN BANK ACCOUNT, NAME, AND RECORD.
• SERIES LLCS ARE USEFUL FOR LLCS THAT OPERATE MULTIPLE LINES OF BUSINESS OR INVESTMENTS AND WANT TO INSULATE
• INSTEAD THERE ARE 23 OTHER JURISDICTIONS NOW THAT ALLOW LLCS TO BE SERIES LLCS TO BE FORMED AND WE HAVE
• SOME OF THOSE COMPANIES COMING IN AND THESE ARE OUR FOREIGN LLCS HERE.

Keywords: 999, senate, all

Transcript Highlights:

• there are single-person LLCs or maybe two siblings or two friends that come together in a formed LLC
• there are single-person LLCs or maybe two siblings or two friends that come together in a formed LLC
• there are single-person LLCs or maybe two siblings or two friends that come together in a formed LLC
• there are single-person LLCs or maybe two siblings or two friends that come together in a formed LLC
• there are single-person LLCs or maybe two siblings or two friends that come together in a formed LLC

Keywords: 1187, senate, all

Transcript Highlights:

• Because you're legally setting up LLC in Montana. And, you know, you could...
• Because you're legally setting up an LLC in Montana.
• They say, well, we created this LLC. I don't have to register it here.
• Somebody can get an LLC in Montana, and they have buildings that probably have LLC...
• Somebody can get an LLC in Montana, and they have buildings that probably have LLC on the side.

Keywords: 959, house, all

Transcript Highlights:

• protection, shielding their personal assets from business debts or lawsuits, and LLC also helps with
• protection, shielding their personal assets from business debts or lawsuits, and LLC also helps with
• protection, shielding their personal assets from business debts or lawsuits, and LLC also helps with
• not the type of LLC we want to include.
• They could each apply, but not if they had an LLC together. Okay.

Bills: HF363, HF2155, HF1524, HF821, HF1677, HF1292

Keywords: HF363, property tax credit, agricultural water quality credit, Minnesota agricultural water quality certification program, clean water fund, class 2a, class 2b, certified acres, conservation incentive, water quality, agricultural property, county assessor, county auditor, Department of Revenue, Department of Agriculture, property tax reimbursement, school district reimbursement, legacy finance, taxes committee, southeastern Minnesota

Bills: SB1041, SB1088, SB1118, SB1128, SB1168, SB1176, SB1189, SB1207, SB1250, SB1272, SB1274, SB1286, SB1428, SB1457, SB1461, SB1503, SB1519, SB1537, SB1582, SB1618, SB1654, SB1713, SB1827, SCR1012, SCR1020

Keywords: electronic monitoring, nursing care, assisted living, resident rights, privacy, consent, surveillance, cybersecurity, homeland security, artificial intelligence, state appropriation, VPN security, zero trust, housing, zoning, middle housing, urban development, duplexes, triplexes, fourplexes

Summary: The committee began with Senate Bill 1272, which would provide $5 million for the City of Douglas as a state match for the Douglas Port of Entry project. The chair adopted a Livingston amendment changing the funding source from the General Fund to the Water Supply Development Revolving Fund. Senator Gowen, Douglas Mayor Jose Grijalva, and city staff testified that the project could unlock $678 million in federal funding, create jobs, improve trade and national security, and generate future tax revenue. The bill passed 15-0 with three present and one not voting. Senate Bill 1503 was then amended with a strike-everything to expand the state death benefit for first responders to include pilots employed by law enforcement agencies, retroactive to January 1, 2026, and subject to voter approval. Senator Gowen and DPS Director Colonel Jeffrey Glover said the change would ensure the family of a DPS aviation supervisor killed in a helicopter crash would qualify for the benefit. The committee approved the bill 18-0 with one not voting. Senate Bill 1274 was converted by strike-everything amendment into a timeshare salesperson licensing measure, creating a separate license and training path focused on timeshare sales. Supporters said the change would better prepare salespeople and streamline licensing, while the sponsor said it would make government more efficient. The bill passed 17-1 with one not voting. Senate Bill 1286, dealing with veterinary telemedicine, was also approved after negotiated changes extended most telemedicine prescription periods to 30 days, kept antimicrobials at 14 days with no renewal, and allowed longer flea-and-tick prescriptions; supporters said it would help rural and disabled pet owners. It passed 18-0 with one not voting. The committee next considered Senate Bill 1519 on off-highway vehicles. A hostile strike-everything amendment proposing paid family and medical leave failed 7-11 with one not voting. The committee then adopted a Lopez amendment and advanced the underlying bill, which raises the OHV weight threshold from 2,500 to 3,500 pounds and adjusts registration and funding provisions. Supporters said it reflects newer enclosed and electric vehicles and helps trail funding, while opponents warned of trail damage and said the issue should wait for the study committee. The bill passed 10-7 with one present and one not voting. Senate Bill 1618, which updates the Military Affairs Commission, expands its membership and duties, and creates a military affairs fund, drew mixed testimony about whether it would strengthen Arizona’s ability to attract and retain military missions or shift the commission away from its traditional support role; it passed 10-6 with two present and one not voting. Finally, Senate Concurrent Resolution 1020, which would send to voters a CPI-based annual adjustment to legislative salaries, passed 9-8 with one present and one not voting after members debated legislative compensation, citizen-legislator concerns, and whether the change would broaden access to public service.

Transcript Highlights:

• can also be members of an LLC.
• The LLCs targeted by the bill are not typical small businesses.
• can also be members of an LLC.
• <04:18:03.080> and percentage interest in the LLC and percentage interest in the LLC and corporations
• be members of an LLC the bill makes<04:18:10.960> LLC<04:18:11.720> subject<04:18:12.279

Keywords: 1189, house, all

Transcript Highlights:

• We have a lot of examples of LLCs being created to secure contracts with other districts to promote..
• Again, from a business standpoint, I would have an LLC, and the reason you have an LLC is to do what?
• That person probably has an LLC because they would have to have something at the Secretary of State to
• I have an LLC for game...
• Well, I mean it's got to be a sole proprietorship, it could be an LLC, it could be a partnership.

Keywords: 1185, senate, all

Transcript Highlights:

• Well, as a Again, if the From a business standpoint, I would have an LLC, and the reason you have an
• LLC is do what?
• They were providing services to District B, making money off of it through their LLC.
• I'm just I have an LLC for games. Well, I mean, it's got to be a sole proprietorship.
• It's got to be, it could be an LLC. It can be a partnership.

Transcript Highlights:

• . who is running the is running the LLC. who is running the LLC.<01:12:40.159> All<01:12:40.480
• All this bill does is take it one LLC.
• > was<01:17:58.560> first Wyoming's LLC law that was first Wyoming's LLC law that was first
• Wyoming and register as an LLC. Wyoming and register as an LLC.
• Somebody finds out that Sunshine and Shadows LLC lives at that address.

Keywords: 916, all

Transcript Highlights:

• LLCs represent about 85% of the total number of those three entities I described—the LLCs, LPs, and LLPs—in
• LLCs represent about 85% of the total number of those three entities I described, the LLCs, LPs, and
• And so because many of these LLCs, for example, would have formed regardless of the exemption.
• I would say certainly there are some larger businesses that use LLCs, and we acknowledge that.
• , or LLCs that file as a partnership, this means they just have more than one owner.

Summary: The committee opened with the State Controller’s Office May Revision requests, including funding for Fiscal book-of-record stabilization, a Broadcom IDMS licensing adjustment, the California State Payroll System, ACFR reporting automation, and $3 million for unclaimed property outreach. Testimony emphasized progress on Fiscal becoming the state’s accounting book of record in July, faster ACFR publication, and the move to electronic unclaimed property claims. Members asked about the size of the unclaimed property fund and how quickly money is transferred to the General Fund; the Controller’s office said about $15 billion is held, with most excess transferred regularly, and the LAO noted the fund is the General Fund’s fourth-largest revenue source. No concerns were raised by Finance or the LAO, and the item was closed after no public comment. The committee then heard the administration’s proposal to tax prewritten digital software and software-as-a-service, with Finance saying it would modernize sales tax treatment and raise an estimated $450 million General Fund and $560 million local revenue in 2026-27. The LAO supported modernizing the tax but suggested broader digital goods coverage and a business-use exemption; industry and taxpayer groups opposed the proposal, warning of higher costs for consumers and businesses. Members also heard CDTFA’s administrative request tied to the proposal, plus a separate CDTFA budget reduction reflecting lower operational needs; that reduction was presented as a savings item and drew positive reactions. Next, the committee considered federal conformity for “Trump accounts,” which would align California tax treatment with federal rules for tax-deferred children’s accounts and avoid tracking burdens for families. The LAO recommended approval, and the item drew no opposition. The committee also heard a proposal to cut the first-year $800 annual business tax to $400 for LLCs, LPs, and LLPs; Finance argued it would lower startup costs and encourage new business formation, while the LAO said the benefit was not well targeted and could subsidize entities that would form anyway. Members discussed the policy tradeoff, and public commenters split between support for small business relief and concern about revenue loss. The final major revenue item was a permanent business tax credit limitation, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability, while excluding the low-income housing tax credit and personal income tax credits. Finance said it would raise significant revenue from large profitable corporations, and the LAO said it was a reasonable option but noted it would mainly affect the R&D credit and could have future implications for programs like California Competes. Public testimony was sharply divided, with business groups opposing the cap and anti-poverty advocates supporting it as a way to recapture revenue. The committee also heard FTB’s CalFile realignment request, which would return most of the direct-file-related resources to the General Fund while retaining a smaller staff to improve CalFile, and the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which members and advocates supported despite relatively modest annual donations. The hearing continued with GoBiz proposals on civic media funding, CA RISE reappropriation, and a semiconductor facility reversion, with the LAO supporting the latter two and members raising questions about the civic media program’s scope, outreach, and inclusion of broadcast and ethnic media.

Transcript Highlights:

• Number 15, Department of Veterans Affairs with two magnets, LLC. This is $65,000. Magnets LLC.
• Number four, DFA Revenue Services with MHPSI LLC.
• Number six, DHS with Infinity Therapy, LLC.
• LLC.
• Number six, DHS with Infinity Therapy, LLC.

Summary: The subcommittee first considered a used tire program contract for Arkansas District 4, an $88,000 one-year contract with LTR Intermediate Holdings. Senators raised concerns that the tire district’s revised business plan had not yet been approved and that the contract could leave the district unable to pay. Questions also focused on solicitation language that excluded bidders under corrective action plans. On motion, the committee held the contract until next month and encouraged the tire board to appear. Members then reviewed and, without objection, moved forward a series of methods of finance, alternative delivery projects, and discretionary grants. These included multiple university and college projects such as renovations, roof replacements, a new UCA multipurpose arena, and a revised financing package for UA Fayetteville’s Maple Hill residence hall. The committee also reviewed DHS and Department of Health grants for aging services, substance abuse prevention, mental health, nutrition outreach, hearing-loss follow-up, HIV services, maternal health, and rural hospital quality improvement. The committee next handled contract items, including a UAMS ratification for FMLA Source after an amendment was not submitted for review and payments continued past expiration; UAMS said it had retrained staff and would review for other missed contracts. Members also reviewed numerous construction, intergovernmental, out-of-state, and in-state contracts across state agencies and universities. Questions were raised about an out-of-state aeronautics study, a U of A Fayetteville parking guidance system, and a Veterans Affairs nursing contract. Most items were reviewed without objection, and the meeting adjourned after informational reports on contract amendments and minor contracts.

Transcript Highlights:

• Back in the home country, Sheridan is the epicenter of LLC filings.
• So people are filing companies, filing LLCs in the state and using those as essentially shells to conduct
• is<00:01:29.360> the<00:01:29.520> epicenter<00:01:30.240> of<00:01:30.560> LLC
• <00:01:32.320> I<00:01:32.560> know is the epicenter of LLC filings.
• I know is the epicenter of LLC filings.

Bills: SF0082

Keywords: registered agents, corporate governance, entity ownership, business regulations, transparency, 916, all

Transcript Highlights:

• LLCs are an important business entity for small businesses that they use to receive limited liability
• LLCs represent about 85% of the total number of those three entities I described—the LLCs, LPs, and LLPs—in
• And so because many of these LLCs, for example, would have formed regardless of the exemption.
• or LLCs that file as a partnership, so this means they just have more than one owner.
• California saw a slightly higher raw increase in LLCs percentage-wise, but it's...

Keywords: 988, house, all

Summary: The committee heard a series of May Revision budget items, beginning with the State Controller’s Office. SCO described requests for Fiscal Book of Record stabilization, payroll system implementation, ACFR reporting support, and unclaimed property outreach funding. Members focused on the Fiscal system’s July go-live, the improved timeliness of the ACFR, and the unclaimed property program’s roughly $15 billion balance and outreach efforts. The Department of Finance and LAO raised no major concerns, and the item was closed after discussion of how the new outreach funding would be used. The committee then considered several revenue proposals. Finance presented a proposal to tax pre-written digital software and SaaS, with estimated General Fund gains of $450 million in 2026-27 and $900 million ongoing; LAO suggested broader digital tax changes and a business-use exemption, while industry groups opposed the measure as a tax on essential digital tools. CDTFA also presented an administrative request tied to the software tax, and later a $10 million budget reduction reflecting lower operational needs. The committee then heard a federal conformity proposal for new children’s tax-deferred accounts, which LAO supported, and a proposal to cut the first-year LLC/LP minimum tax from $800 to $400, which Finance said would aid small business formation but LAO argued was poorly targeted and would reduce revenue. Another major item was a permanent business tax credit limitation beginning in 2027, capping credits at the greater of $5 million per corporation or 50% of pre-credit liability. Finance said it would raise about $850 million in 2026-27 and more in later years, while LAO noted it would mainly affect large firms using the R&D credit and could also touch California Competes and other programs. Public testimony split sharply between business groups opposing the cap and advocates supporting it as a progressive revenue measure. The committee also heard FTB’s CalFile realignment proposal, which would retain a smaller staff to continue improving the free filing system and return most of the prior funding to the General Fund. The hearing concluded with the California Arts Council’s request to reauthorize the Keep Arts in Schools voluntary contribution fund, which brings in about $221,000 to $266,000 annually for arts grants and teacher stipends. Members and advocates supported the item but also urged larger arts funding, including the Performing Arts Equitable Payroll Fund. The Governor’s Office of Business and Economic Development then presented proposals for the California Civic Media Program, CA RISE reappropriation, and a reversion of unused Chips for America facility funds; LAO supported the latter two but was cautious about new civic media spending. Members raised concerns about the civic media program’s scope, including the exclusion of broadcast and the lack of a specific ethnic media set-aside, while GoBiz said funds would begin going out in the fall if approved.

Transcript Highlights:

• LLCs represent about 85% of the total number of these LLCs, LPs, and LLPs in California and are much
• LLC registrations increased substantially, averaging about 318,000 per year through 2024.
• And additionally, from 2021 through 2024, the number of LLC returns...
• Do you know what Montana's LLC registration fee is by chance?
• I think they were certainly forming the LLC in Montana that somehow evading tax as a result.

Keywords: 987, senate, all

Summary: The subcommittee heard several May Revision proposals, primarily from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board. CDFA presented funding for the animal care program under Proposition 12, a transition away from the state hemp program to USDA oversight by January 1, 2028, ongoing support for agricultural statistics reporting after USDA reorganization, and trailer bill changes to the department’s indirect cost cap. The LAO generally supported the animal care, hemp transition, and statistics proposals, while also urging future review of the Prop 12 funding once litigation is resolved. The indirect-cost-cap language was described as technical and not increasing charges to programs, and it was held open with no objections from the LAO or Finance. The committee also discussed the new federal Workforce Pell program and related Cradle to Career funding and trailer bill language. Finance said the state is still reviewing federal rules and is focusing on basic implementation steps, with the trailer bill assigning eligibility determinations to the California Student Aid Commission, requiring data sharing through Cradle to Career, and prioritizing public institutions first. The LAO urged caution because the federal rules were just finalized and said the Legislature should better define the process and costs before appropriating the $1.3 million requested for Cradle to Career. Members raised policy concerns about limiting the program to certain institutions and about aligning the proposal with pending legislation and broader workforce policy. The Department of Technology presented a $1 million request for Poppy, the state’s digital assistant, to expand a secure GenAI platform for state employees. Members asked detailed questions about data security, model training, bias controls, and whether the system could eventually support local governments; CDT said the system uses state-controlled cloud infrastructure, does not use user data for training, and quarantines new models for review. CDT also sought provisional authority for the Middle Mile Broadband Initiative to cover possible operating shortfalls while the network is still being built; the LAO remained concerned about broad spending authority, and several members questioned the revenue assumptions and oversight. FTB then proposed retaining a smaller set of CalFile resources after the federal Direct File program was discontinued, with the LAO saying the reduced staffing level was broadly reasonable but still worth legislative scrutiny. The committee also began hearing the administration’s revenue proposals, including a permanent limitation on business tax credits and a tax on electronically delivered prewritten software, with the LAO generally supporting the goal of raising ongoing revenue but recommending changes to the software proposal’s exemptions and business-use treatment.