Transcript Highlights:

• The engines are all running smooth.

Committee: House Human Services

Transcript Highlights:

• The engines are all running smooth.

Committee: House Human Services

Keywords: 1184, house, all

Transcript Highlights:

• So all of the engineering work is now done, and they were ready to start the project and realized they
• So, all of the<00:57:07.680><c> engineering</c><00:57:08.160><c> work</c><00:57:08.400><c> is</c><00:
• 57:08.640><c> now</c><00:57:08.799><c> done</c><00:57:08.960><c> and</c> the engineering work is now
• done and the engineering work is now done and they<00:57:09.359><c> were</c><00:57:09.520><c> ready</

Keywords: 1191, senate, all

Transcript Highlights:

• loved it and was thriving in computer science, physical education, food and nutrition, discovering engineering
• education, food and nutrition, physical education, food and nutrition, discovering<01:07:57.440><c> engineering
• ,</c><01:07:58.400><c> innovation</c><01:07:58.880><c> lab,</c> discovering engineering, innovation lab
• , discovering engineering, innovation lab, and<01:07:59.440><c> digital</c><01:07:59.760><c> art.

Committee: House Education Policy and Administration

Keywords: 1189, house, all

Transcript Highlights:

• The idea being that if, as an engineer, I never design a system to 100 percent. Why?
• that</c><01:25:31.280><c> if</c><01:25:31.520><c> as</c><01:25:31.679><c> an</c><01:25:31.920><c> engineer
• ,</c><01:25:32.400><c> I</c><01:25:32.560><c> never</c> being that if as an engineer, I never being that
• if as an engineer, I never design<01:25:33.040><c> a</c><01:25:33.280><c> system</c><01:25:33.520><c

Keywords: 1191, senate, all

Transcript Highlights:

• is comprised of multidisciplinary professional expertise with accountants, attorneys, economists, engineers
• professional expertise with accountants, attorneys,<00:55:46.000><c> economists,</c><00:55:46.480><c> engineers
• ,</c> attorneys, economists, engineers, attorneys, economists, engineers, scientists<00:55:47.280><c>

Keywords: 912, senate, all

Summary: The Senate Commerce and Consumer Protection Committee held an informational briefing on the Public Utilities Commission’s performance-based regulation (PBR) framework and the Department of Commerce and Consumer Affairs’ whistleblower complaint process. Chair Jared Kohole opened the meeting, noted it was informational only with no public testimony, and explained that members would hear presentations and then have an opportunity for questions. The committee heard first from Ulupono Initiative, which provided background on why utilities are regulated, how Hawaii’s cost-of-service model and rate cases work, and why PBR was adopted to shift utility incentives away from a capital-investment bias and toward performance, efficiency, cost control, and policy goals such as renewable energy and reliability. Ulupono described Hawaii’s PBR structure as a five-year multi-year rate plan with annual revenue adjustments, a customer dividend, a Z factor for extraordinary exogenous events, and an exceptional project recovery mechanism for large projects. It also outlined performance incentive mechanisms tied to renewable portfolio standard progress, interconnection speed, reliability, and shared savings. The presentation said the current docket is evaluating a possible hybrid approach that would combine forward-looking forecasting with historical results, and Ulupono advocated for stronger incentives, arguing the current rewards are too small relative to utility revenues and should be more meaningful to better align utility behavior with legislative intent. The PUC then presented its own overview, emphasizing that the PBR docket is open and active and that the briefing was limited to the record to avoid ex parte concerns. The commission described the development of PBR in Hawaii through multiple phases beginning in 2018: an initial collaborative phase to set goals, a formal contested-case phase that produced the initial framework, later phases adding scorecards, reported metrics, and additional performance incentive mechanisms, and subsequent refinements including sunset of some mechanisms and adjustments after the August 2023 Maui wildfires. The PUC said the framework is intended to be customer-centric, administratively efficient, and protective of utility financial integrity, and that current work includes evaluating how to balance forward-looking and historical test-year approaches within the rebasing process. No votes or formal actions were taken at the briefing.

Transcript Highlights:

• They have had cases where erosion problems required an engineer to make sure the geotechnical work was
• 05.120><c> an</c> problems, you know, you need to have an problems, you know, you need to have an engineer
• 06.240><c> make</c><00:20:06.320><c> sure</c><00:20:06.400><c> that</c><00:20:06.640><c> the</c> engineer
• involved to make sure that the engineer involved to make sure that the geotechnical<00:20:07.679><c>

Keywords: 928, house, all

Summary: The committee heard testimony on Senate Bill 110, as amended by the Senate, which would establish fees for alteration-of-terrain applications and direct the Department of Environmental Services to adopt rules for a permit-by-notification process for certain projects. Trisha Milo introduced the bill for Senator Lang and noted that the department had worked on the amended language. Matt Mayberry of the New Hampshire Homebuilders Association said the industry strongly supported the bill, describing it as a public-private partnership that would speed review for developers without affecting local control, with builders paying the costs rather than taxpayers. Members focused heavily on how the bill’s fee structure and permit thresholds would work, especially for projects near shoreland, wetlands, and protected water bodies. Representative Opel raised concerns about whether the bill reduced review of habitat and shoreland impacts or shifted costs unfairly; Philip Trobridge of DES explained that the bill does not eliminate those reviews and that shoreland projects still receive greater scrutiny. He said the bill creates different tiers, with the permit-by-notification process applying to certain projects between 100,000 and 150,000 square feet that are not in protected shoreland, while larger or shoreland-affected projects remain under the standard review process. He also said the proposed fees were based on sustaining the program, covering added habitat and species review responsibilities, and keeping reviews efficient. Trobridge said the new fee structure would generate about $1.2 million in additional revenue and help fund additional staff and related program costs. He stated that the department had worked with the regulated community and believed the fees were fair and reasonable, though he acknowledged the bill’s wording was confusing and that the threshold could be revisited later if the new process works well. Members also discussed how the state process interacts with local approvals, and Trobridge said both state and local approvals are required before a project can begin. No vote or final action was taken in the portion of the meeting provided.

Transcript Highlights:

• Chamber of Commerce, that they're very concerned about that because obviously tourism is one of the big engines
• is one<04:54:05.558><c> of</c><04:54:05.680><c> the</c><04:54:05.798><c> big</c><04:54:05.958><c> engines
• /c><04:54:06.320><c> that</c><04:54:06.480><c> drives</c><04:54:06.760><c> our</c> one of the big engines
• that drives our one of the big engines that drives our economy<04:54:09.520><c> yeah</c><04:54:10.520

Keywords: 928, house, all

Summary: The committee first took up a House Bill 2 amendment to remove a bail-related section that had already passed in another bill and was now considered duplicative. Members discussed the earlier change to how bail commissioners are reimbursed, concerns that the Judiciary was losing money collecting the fees, and whether the magistrate-related language would still be needed. They noted the bill had already crossed over to the Senate, that the section was obsolete, and that any remaining issue about magistrates’ five-year terms might need to be raised with the Criminal Justice Committee. Amendment 997H, deleting section one, was moved, seconded, and adopted unanimously. The committee then reviewed a package of HB 1 position transfers involving the Department of Environmental Services, Fish and Game, and the Department of Natural and Cultural Resources. Staff explained that several positions were being shuffled to correct position numbers and align permitting functions, including one Fish and Game position moving back to Fish and Game, one DEES position remaining funded after ARPA money ends, and adjustments to hours for permitting and environmental services positions. Members discussed whether the Fish and Game position had been intended to be temporary, but ultimately agreed to accept the first four Environmental Services items and the last two Natural and Cultural Resources items as a package; that motion passed unanimously. They then also accepted sections 2 through 8 of HB 1 with the related amendments and footnote language. The committee next turned to dredge-and-fill fee changes in section 11, where one member objected to a 50% fee increase for seasonal docks, arguing it could discourage permitted work and might apply to repairs that only require notification. Staff said the increase was intended to help cover the cost of additional positions in future biennia, but members decided to hold that section for more information, including how many seasonal dock repair fees are actually collected. Finally, the committee began discussing HB 215 and a proposed tipping-fee/surcharge structure to make a solid waste accounting unit self-funded, with members saying the fee could offset about $2.9 million in general fund costs and support the grant program, but no final action was taken on that item in the portion of the meeting provided.

Transcript Highlights:

• I'm a system engineer for my professional background, but it's a system here with all these towns, and
• /c><00:16:36.880><c> I'm</c><00:16:37.000><c> a</c><00:16:37.120><c> system</c><00:16:37.800><c> engineer
• </c><00:16:38.800><c> um</c><00:16:39.399><c> for</c> think of it I'm a system engineer um for think
• of it I'm a system engineer um for my<00:16:40.360><c> uh</c><00:16:40.839><c> professional</c><00:16

Committee: House Municipal and County Government

Keywords: 1189, house, all

Transcript Highlights:

• Our engineer has met with them on a regular basis.
• dredging project we're proposing a dredging project th<02:33:20.960><c> our</c><02:33:21.200><c> engineer
• 22.439><c> met</c><02:33:22.680><c> with</c><02:33:22.840><c> them</c><02:33:22.960><c> on</c> th our engineer
• he has met with them on th our engineer he has met with them on a<02:33:23.319><c> regular</c><02:33

Committee: House Judiciary & Hawaiian Affairs

Keywords: 910, house, all

Summary: The committee heard testimony on several measures. On HB 211 relating to stream maintenance, DLNR supported the intent but requested amendments to clarify that responsibility for removing abandoned property rests with the entity that has jurisdiction or ownership of the stream, and asked for appropriations to help cover cleanup costs. Members discussed existing county authority to clean streams and then seek reimbursement from private owners, and the City and County of Honolulu’s written testimony was noted as arguing the bill conflicts with a federal court stipulation requiring notice and storage of personal property before disposal. On HB 502 relating to land use, OPSD and the Land Use Commission supported the bill’s intent but raised concerns about the short timeline and the need for rule changes, with OPSD recommending a more permanent county plan-based district boundary amendment process instead of a temporary one. The Department of Agriculture asked counties to make concurrent revisions to ordinances and rules affecting agricultural land partitioning. Testimony also noted the bill is aimed at legacy agricultural subdivisions and would require Land Use Commission rulemaking. On HB 510 relating to declaration of water shortage and emergency, DLNR and the Board of Water Supply strongly supported the measure, saying it would give CWRM a more timely tool to respond to emergencies outside designated water management areas and would require rulemaking, permit classifications, and criteria for declaring shortages. In response to opposition concerns from the Land Use Research Foundation and the Hawaii Farm Bureau, DLNR said the rulemaking process would allow public input and that permit classifications could help balance agricultural and other water uses. On HB 511 relating to public lands, DLNR, the Department of Agriculture, and Hawaii Farm Bureau supported removing the survey requirement before setting aside public lands between state agencies, saying it would speed Act 90 transfers and save time and money, though one testifier cautioned against misuse of agricultural lands. No votes were taken during the excerpted portion of the meeting.

Transcript Highlights:

• think we've had a lot of revenue come into the state that was not particularly driven by our economic engines
• 10:17.840><c> economic</c> particularly driven by are economic particularly driven by are economic engines
• <03:10:20.160><c> uh</c> engines uh engines uh and<03:10:22.600><c> I</c><03:10:22.720><c> think</c><

Keywords: 1189, house, all

Summary: The committee received a Department of Revenue Administration update from Commissioner Lindsay Stepp focused on revenue estimates for fiscal years 2025, 2026, and 2027. She explained the department’s forecasting method, which uses five scenarios based on the first seven months of actual collections and different assumptions for the remaining months, then selects a reasonable high and low range for FY 25 and applies projected growth rates for FY 26 and FY 27. Members asked several clarifying questions about how the scenarios are chosen and how the estimates relate to economic growth and taxpayer behavior. For business taxes, Stepp reported FY 25 year-to-date collections of $110.3 million, 18.2% below plan and 17.2% below prior year. She said the shortfall reflects both economic conditions and a resetting of estimated payments after unusually strong pandemic-era profits, and noted that the department cannot fully separate changes in taxpayer liability from changes in estimated payment behavior. She said approximately just under $72 million was refunded in FY 24 due to the CCO cap, and that FY 25 year-to-date refunds are at 41.7%. For business taxes, the department’s FY 25 range was based on either continued underperformance versus plan or a return to prior-year levels, with FY 26 and FY 27 growth projected at 3% to 8%. The committee also reviewed meals and rooms tax, tobacco tax, and related trends. Meals and rooms revenue was $6.9 million, or 3.3%, ahead of plan and prior year; the FY 25 gross estimate was $475.894 million, with a net range of about $331.82 million to $335.259 million after municipal transfers and school building aid. Stepp said recent monthly results suggest some fluctuation tied to disposable income, weather, and travel patterns, but no clear sustained decline. Tobacco tax was $18.1 million, 14% below plan and 4.8% below prior year; she said cigarette stamp sales are declining while e-cigarettes and other tobacco products are growing, with FY 25 tobacco revenue projected at $182.5 million to $185.3 million and FY 26-FY 27 growth ranging from -5% to flat. No votes or formal actions were taken.

Transcript Highlights:

• I was in computer software engineering for 30 years, and now I'm learning about energy policy.
• out I'm not a business person I was in computer<02:01:32.400><c> software</c><02:01:33.400><c> engineering
• </c><02:01:33.920><c> for</c><02:01:34.199><c> 30</c> computer software engineering for 30 computer software
• engineering for 30 years<02:01:35.159><c> and</c><02:01:35.320><c> now</c><02:01:35.480><c> I'm</c><

Keywords: 928, house, all

Summary: The committee held a public hearing on House Bill 233, which would impose transparency and reporting requirements on the New Hampshire Vaccine Association. The prime sponsor, Representative Comto, said the bill and a proposed amendment were intended to increase public access by requiring a physical meeting location, making meetings available online, and publishing a complete list of vaccines and pharmaceutical products purchased. She argued the association should be more transparent because it is involved in vaccine purchasing and public trust is important, especially given controversy around vaccines. Committee members questioned the sponsor about the association’s legal status, who sets vaccine requirements, whether other private entities would be covered, and whether the proposal should instead apply more broadly to all meetings or include recordings. The sponsor said the association was created by the legislature, that childhood vaccine requirements come from DHHS and CDC-related processes, and that she would be open to broader recording requirements. Some members raised concerns about misinformation and whether requiring answers to public questions could be problematic in a contentious policy area. Patrick Miller, executive director of the Vaccine Association, and attorney Mark McHugh testified in opposition. They described the association as a not-for-profit voluntary corporation created by statute in 2002 to serve as a funding mechanism for the state’s universal childhood vaccine purchase program, with no policymaking role and no public funding. They said the association already posts notices, agendas, minutes, and allows public webinar access and comments, while also providing annual audits and reports and other statutory reporting. They argued HB 233 would impose unnecessary administrative costs on a private entity, interfere with its limited charitable purpose, and ultimately increase costs borne by insurers, employers, and consumers. No vote or final action was taken during the hearing.

Transcript Highlights:

• There are something in engineering that’s called unintended consequences, and what I’d like to avoid
• /c><02:03:40.360><c> in</c> now there are something in the in now there are something in the in engineering
• <02:03:41.960><c> that's</c><02:03:42.159><c> called</c><02:03:42.440><c> unintended</c> engineering
• that's called unintended engineering that's called unintended consequences<02:03:44.040><c> and</c><02

Committee: Senate Education

Keywords: 1191, senate, all

Transcript Highlights:

• So I was a computer engineering professor, and I got my job based on my degree, but I don't know that
• certified credential so I was a<01:14:16.960><c> u</c><01:14:17.159><c> Computer</c><01:14:17.560><c> Engineering
• /c><01:14:18.280><c> professor</c><01:14:18.800><c> and</c><01:14:18.960><c> I</c> a u Computer Engineering
• professor and I a u Computer Engineering professor and I got<01:14:19.360><c> my</c><01:14:19.600><c

Keywords: 928, house, all

Summary: The committee first heard HB 295, which would make school building aid funds non-lapsing/non-APS. Representative Cahill said the bill was intended to keep any unused building aid money available for future projects, potentially helping move projects up the priority list or provide a little more funding for school construction. Members asked about how much money has lapsed in past years, whether the education trust fund and building aid are separate, and whether any lapsing dollars could be used to pay down debt. Department of Education official Jim Carney said about $29.1 million would be available if building aid is funded to the $50 million maximum in FY26, confirmed that the fund currently lapses, and said the department would gather historical lapse data. Committee members also discussed whether a dedicated fund structure could achieve the same goal, and the chair noted that the education trust fund statute includes school building aid as one of its uses. No vote was taken; the hearing was closed and the committee said it would later hold a work session after receiving more information. The committee then took up HB 237, introduced by Representative Dan McGuire, which would prohibit the use of special education state funds and differentiated aid for students not receiving special education services. The New Hampshire School Boards Association, through Becky Wilson, opposed the bill as written, saying it was unclear, potentially unnecessary, and difficult to implement because adequacy and differentiated aid are distributed as part of a districtwide lump sum rather than as student-specific dollars. She explained that special education costs are embedded across district budgets, including staffing, training, transportation, and instruction, and that some staff and services benefit both special education and general education students. Wilson also said differentiated aid is not tied to a specific pupil and is used at the district’s discretion, though it is intended to support students with greater needs. Committee members pressed on whether the bill would require districts to track money by individual student, whether it could conflict with federal special education law, and whether it would affect least restrictive environment requirements. Wilson said making the funds student-specific could create privacy and accounting problems and could make it difficult to staff inclusive classrooms, though she did not give a definitive legal opinion on federal compliance. She agreed that students who are not eligible for special education would not be included in the separate catastrophic/special education aid reimbursement program. The discussion continued into the second section of the bill, with members exploring how adequacy aid and differentiated aid are used in practice, but no action was taken during the portion provided.

Transcript Highlights:

• two positions in the Clean Water Branch for enforcement; Wastewater Branch, we're asking for an engineer
• 10.960><c> um</c> Wastewater Branch we're asking for a um Wastewater Branch we're asking for a um engineer
• 13.479><c> um</c><02:26:14.479><c> um</c><02:26:14.760><c> accountant</c><02:26:15.720><c> to</c> engineer
• and a um um accountant to engineer and a um um accountant to assist<02:26:16.319><c> us</c><02:26:16.640

Keywords: 912, senate, all

Summary: The joint Ways and Means and Health and Human Services committees heard Hawaii Health Systems Corporation’s biennium budget request, with testimony from HHSC leadership on the Hilo/Big Island region (HTH 212) and the Oahu region (HTH 215), plus discussion of capital improvement projects and systemwide partnerships. HHSC described its role as the rural healthcare safety net, serving a high share of Medicare, Medicaid/Quest, and uninsured patients, and said its costs are elevated by state employee fringe benefits, which it said are about 64% compared with roughly 30% in the private sector. HHSC also said pandemic-era federal aid, including relief funds and PPP loans totaling about $100 million, reduced the need for general fund support in prior years. For HTH 212, HHSC said its general fund request for fiscal years 2026 and 2027 was higher than the governor’s recommendation because of rising insurance, pharmaceutical, and contractor labor costs, and because it includes $13.2 million in FY 2026 and $2.3 million in FY 2027 for Epic electronic medical record implementation in East Hawaii. For HTH 215, HHSC said the requested general funds were aligned with the governor’s recommendation, in part because of increased Medicaid reimbursement rates for long-term care facilities under prior legislation. HHSC also said it was restoring a special fund ceiling so the region could spend its cash collections on operations. Members asked about the 64% fringe rate, and HHSC explained the difference was mainly due to defined-benefit pension and retiree health insurance costs, which private hospitals generally do not bear at the same level. Members also asked about the Daniel K. Akaka State Veterans Home, and HHSC said operations would be funded through the general fund corporation for the home when it opens, with management by Ohana Pacific, but no additional legislative operating funds were being requested at that time. Other questions focused on staffing and vacancies, including an abolished procurement position and an ongoing IT help desk recruitment need. HHSC highlighted several capital and partnership projects, including a $25 million state CIP request matched by $25 million from the Benioff family for the Benioff Health Center, an ER expansion and reconfiguration at Corner Community Hospital, and $7.5 million in each fiscal year for Kauai EMR capital funds to join the Epic platform. Testimony also described collaborations with Queen’s, the University of California San Francisco, Hawaii Pacific Health, the Hawaii Cancer Consortium, the Department of Health, and the state hospital to improve specialty access, clinical trials, behavioral health, and patient placement across the system.

Transcript Highlights:

• provided dedicated multimillion-dollar investments for HSIs' upgrades in their science, technology, engineering
• Socially engineering our college enrollment, rather than putting effort toward improving the persistent

Summary: The Senate convened with a quorum, offered prayer and the Pledge of Allegiance, and then moved through confirmations and floor legislation. Three California Housing Finance Agency and State Mining and Geology Board appointments were confirmed unanimously. The chamber then took up several policy bills, with debate often focusing on housing, public safety, energy, and local government impacts. Among the major measures, SB 1173 on lesser related offense jury instructions passed after supporters argued it would give judges limited discretion and improve fairness, while opponents warned it could create inconsistency. SB 1354, barring out-of-state military or law enforcement activity in California without the Governor’s permission, passed despite objections that it conflicted with federal commander-in-chief authority. SB 1090, the Altadena disaster-speculation bill, passed to restrict unsolicited purchase offers in fire-affected areas, and SB 966 passed to preserve refinery worker safety participation rights. SB 1256, a local housing/land-use bill, passed unanimously after discussion of fire-safety concerns and ongoing amendments. The Senate also approved SB 865 on music festivals, SB 866 on homelessness planning and regional coordination for jurisdictions not receiving HAP funds, SB 938 on peace officer training requirements for certain immigration-enforcement-related applicants after the author committed to major amendments, SB 1359 on natural gas planning to reduce ratepayer costs, SB 923 on privacy rights under the CCPA, SB 1098 on utility memorandum and balancing accounts, SB 1010 on refrigerant recovery for cooling appliances, SB 937 on restricting flashbang use in crowd control and immigration enforcement, SB 1082 on inter-district pupil transfers, and SB 1087 on modernizing regional transportation planning. Several bills drew split votes and pointed debate over mandates, taxes, local control, and regulatory certainty, but most ultimately passed.

Transcript Highlights:

• provided dedicated multimillion-dollar investments for HSI upgrades in their science, technology, engineering
• Socially engineering our college enrollment, rather than putting effort toward improving the persistent

Keywords: 987, senate, all

Transcript Highlights:

• plan for the Innovation Partnership Fund, intends to be the state's dedicated statewide innovation engine
• plan for the Innovation Partnership Fund, intends to be the state's dedicated statewide innovation engine

Summary: The committee heard opening budget remarks from the Department of Finance and the Legislative Analyst’s Office on the May Revision for Health and Human Services. Finance said the proposal significantly reduces projected out-year operating deficits through a mix of revenue increases and program cost reductions, while the LAO warned that even with booming revenues the state still faces a structural deficit and should prioritize reserves and avoid new ongoing commitments. The chair and members echoed concern about cuts to vulnerable populations, but also noted the need to maintain the overall level of budget solutions and add to reserves. The hearing then moved through a series of CalHHS and HCAI proposals, mostly held open after presentation. CalHHS requested additional legal support to respond to federal H.R. 1-related issues and a net-zero transfer of positions for a shared eligibility/data-sharing platform. Other items included ongoing funding for the 988 Behavioral Health Crisis Service Fund and a request for EMSA to fund maintenance of its enterprise data management system. HCAI presented proposals for hospital fair pricing implementation, the data exchange framework, the all-payer claims database, CalRx insulin development, the diaper access initiative, distressed hospital grants, opioid settlement fund reversion, and the Rural Health Transformation Program. Members questioned funding sources, special fund use, contracting exemptions, timelines, and whether some proposals should be more targeted or supported by alternative funding. A major discussion centered on HCAI’s diaper access initiative and the use of a Public Contract Code exemption to continue contracting for free diapers distributed through hospitals. The chair and some members criticized the optics of the selected vendor and questioned the lack of an income threshold, while HCAI said the program was designed to be universal and administratively simple, with future phase-two direct-to-consumer purchasing to be handled by a different vendor. Another extended exchange focused on distressed hospital funding, where HCAI said the May Revision would provide up to $50 million for hospitals at immediate risk of closure, but members argued the repeated annual need shows a structural problem and asked for broader reforms to hospital payment and care transitions. The final major topic was the Behavioral Health Services Oversight and Accountability Commission’s budget. The Commission opposed the May Revision’s reduction of the Innovation Partnership Fund from $20 million to $10 million and a $6.7 million cut to community advocacy contracts, arguing both are core Proposition 1 tools for statewide innovation and community engagement. Finance responded that the proposal is within Proposition 1’s allowable maximums and that prior unspent appropriations could be redirected if the Legislature wanted to restore the full amount. No votes were taken; items were generally held open for later action.

Transcript Highlights:

• I'm a full-time engineer. Thank you. Hi, my name's Gabby. I'm a full-time engineer.

Summary: The committee heard an overview of the May Revision’s Proposition 98 changes for K-12 and community colleges. The Department of Finance said the minimum guarantee rises by $6.4 billion over the Governor’s Budget across the three-year window, with higher guarantees in each year, full payment of the prior settle-up, and larger deposits into the school rainy-day fund. The LAO said the revenue and LCFF updates were reasonable, but urged caution about the settle-up approach and recommended using more of the available funding to protect ongoing programs and build budget resilience. Members focused heavily on the size of the proposed $3.9 billion settle-up, the $10.3 billion reserve deposit, declining K-12 enrollment, and how much of the new funding should be ongoing versus one-time. The committee then reviewed the community colleges portion of the budget. Finance described the May Revision’s higher SCFF COLA, additional funding for enrollment growth, a student support block grant, apprenticeship adjustments, and continued funding for deferred maintenance, Calbright, Common Cloud, and credit for prior learning. The Chancellor’s Office supported the core investments but asked for more funding for enrollment growth, changes to the growth formula, and a COLA for Student Equity and Achievement. The LAO recommended prioritizing the statutory COLA increase, noted that more than half of districts are already above current-year growth targets, and said the new adult learner demonstration project should be rejected because districts already have tools to support similar services. Members also discussed a $52 million current-year apportionment shortfall, which Finance said was discovered too late for the May Revision and would need to be addressed later. Finally, the committee took up the proposed implementation of the federal Workforce Pell program. Finance proposed one-time funding for the California Student Aid Commission and Cradle to Career to build eligibility and data systems, along with trailer bill changes to set up state approval processes. CSAC said the program is promising but highly complex, that California lacks the needed infrastructure, and that the state will need emergency regulations, data linkages, and ongoing funding beyond the one-time proposal. The LAO agreed that some initial funding is needed but warned that the amounts and ongoing costs remain uncertain and that the Legislature should carefully draft the trailer bill language. Members asked about timing, other states’ actions, and how the state would ensure the program is ready for students and institutions.

Transcript Highlights:

• The bill does not phase out internal combustion engine sales.
• Connor Gussman, on behalf of the Engineers and Scientists of California and our 4,700 employees at PG

Summary: The committee heard several energy, water, and utility bills, with extensive testimony on cost, ratepayer impacts, and climate or reliability goals. SB 919 by Senator Grayson would extend the biomethane monetary incentive program through 2030 and support renewable natural gas development by reducing interconnection cost barriers. Supporters said RNG helps methane reduction and organic waste diversion, while opponents, including TURN and environmental groups, argued the bill could shift costs to ratepayers and subsidize combustion-based fuels, especially dairy digesters. The author said committee amendments removed the rate-basing provisions and instead urged the CPUC to act quickly on its pending decision; the bill was left for a later vote. SB 931 by Senator Laird would reauthorize the Diablo Canyon Community Impact Mitigation Program through 2030. Supporters said San Luis Obispo County and local schools rely on the funding for emergency preparedness and public safety, while TURN argued the extension would add about $47 million in statewide ratepayer costs and should instead be paid from existing PG&E deal revenues. Members discussed the bill as a continuation of the 2022 Diablo Canyon agreement, and the author said the measure simply restores the five years omitted from that deal. The committee also heard SB 1215 by Senator Cortese, which would direct the CPUC to set deployment targets for EV charging in multifamily housing. Supporters said renters and apartment residents are largely shut out of home charging, and that prior utility programs showed the model can be cost-effective and beneficial to ratepayers. The bill was amended to address affordability, ratepayer benefits, and limits on major system upgrades. SB 1295 by Senator Stern would create a framework for using distributed batteries and other local resources to solve grid constraints more cheaply than traditional infrastructure. Supporters said it could improve reliability and reduce costs by targeting batteries where they provide the most grid value, while utilities said they were open to continued discussion. SB 1359, also by Senator Stern, would require the CPUC to more carefully evaluate major gas infrastructure investments and alternatives such as electrification before approving new spending. Environmental groups supported the bill as a guardrail against stranded assets, while gas utilities opposed it, warning it could undermine the obligation to serve, create safety and reliability risks, and retroactively change the rules for approved investments. On water policy, SB 1125 by Senator Menjivar would create a statewide low-income water rate assistance program upon appropriation. Supporters said about 1.6 million households have water debt and that affordability is a statewide issue, not just a problem for disadvantaged communities. Some members raised concerns that the bill lacked a funding source and that state mandates, such as chromium-6 treatment requirements, already strain local water agencies; the author and supporters responded that the bill includes administrative caps and transparency measures and is intended to work alongside future funding. The committee then heard SB 1098 by Senator Pérez, which would restrict the use of utility memorandum and balancing accounts by requiring exceptional circumstances, adding sunset dates, and creating cost-sharing or lower-return rules for certain spending. TURN and other supporters said the accounts allow utilities to recover costs after the fact with too little discipline, while Edison and PG&E opposed the bill, arguing that some costs are unpredictable and that the CPUC already has a formal review process. SB 1125 was moved to Appropriations with a roll call, and the roll was left open for additional votes; the other measures were discussed with no final committee actions announced in the excerpt.