Transcript Highlights:

• involved with office, research and development, lab, industrial, mixed-use, affordable, and market-rate
• And of course, interest rates are prohibitive now too. Absolutely. Thank you, sir.
• And of course, interest rates are prohibitive now too. Absolutely. Thank you, sir. Jim?
• There and, of course, interest rates are prohibitive now too. Absolutely. Okay, thank you so much.
• There will be the creation of new market-rate apartments; there will be a creation, by percentage, of

Committee: Joint Joint Committee on Housing

Summary: The Joint Committee on Housing held a hybrid hearing on zoning, Chapter 40B, and related housing bills. Much of the testimony focused on the “Yes in My Backyard” bill (H. 1572/S. 962), which would expand by-right development of missing middle housing, reduce barriers such as minimum lot sizes and parking mandates, and support duplexes, triplexes, and other small-scale housing. Supporters included housing advocates, developers, local officials, and municipal leaders from places like Cambridge, Salem, and Braintree, who argued that state action is needed because local zoning often blocks needed housing and that the bill would help create more affordable, neighborhood-compatible homes. Several witnesses also backed a companion “Yes in God’s Backyard” bill (H. 2347), which would allow faith-based institutions to build housing on their property by right, with testimony emphasizing the potential for new units, added municipal tax revenue, and partnerships between religious organizations and housing developers. The committee also heard testimony on Senate Bill 1021 to modernize Chapter 40R incentives. Senator Pavel Payano and others said the program’s payments have not kept pace with inflation since 2004 and should be increased to better encourage smart-growth zoning near transit and town centers. Another major topic was H. 2298 on site plan review, which would codify and standardize the process in state law. Rep. Kristin Kassner and witnesses from MAPC and NAIOP said current site plan review practices vary widely across the state, creating confusion, delays, and litigation, while a uniform framework would give municipalities clearer tools to review by-right projects without undermining local oversight. The hearing also included testimony on Chapter 40B reform, including S. 1005 and H. 1537. One witness supported further review of 40B and stronger regional planning, while another backed a proposal to allow certain pre-2010 40B condominium owners to sell at market value under a framework that would recapture some of the subsidy benefits. Committee members asked several questions about local zoning changes, housing goals by county, and how the proposed bills would affect communities. No votes were taken during the hearing, and the chairs indicated that written testimony would be welcomed for technical details and additional comments.

Transcript Highlights:

• California residents do face the second-highest utility rates in the nation.
• California residents do face the second-highest utility rates in the nation, while utility companies
• California residents pay the highest energy rates in the continental U.S., while our investor-owned utility
• Many critical and necessary programs are funded through rates, but as we scrutinize what could be pruned
• The SB 695 report shows trends, what's driving rates, how to reduce costs, recommendations, short term

Summary: The Assembly Committee on Utilities and Energy heard several bills focused on utility affordability, transparency, clean energy, and consumer access. SB 327 would bar investor-owned utilities from using ratepayer funds to oppose municipal utility formation and would clarify the Public Advocates Office’s authority to inspect utility books; supporters framed it as a ratepayer protection and accountability measure, while utilities and industry groups raised concerns about municipalization language and data-request procedures. After discussion about the scope of the bill and existing guardrails from prior legislation, the committee voted SB 327 out on a due pass as amended basis to Appropriations, with the roll left open and later updated to 12-2. SB 1350, a hydrogen bill, would allow renewable portfolio standard credit for power plants using green hydrogen in turbines. The author and supporters said it would help California meet clean energy goals, support the Lancaster hydrogen project, and create jobs, while opponents, especially environmental groups, warned about NOx emissions, the risk of paper transactions, and the need for stronger safeguards on feedstocks and delivery. Members discussed amendments already taken and the need for continued work on environmental protections; the committee passed the bill 14-0 to Natural Resources. SB 868 would create a framework for plug-in or balcony solar devices for renters and others without rooftop solar, with safety standards and a cap on system size. Supporters said it would lower bills and expand access to solar, while utilities and some others raised safety and backfeed concerns and asked for more review through existing interconnection processes. The author and witnesses said the devices are small, non-exporting, and covered by safety certifications; the committee approved the bill 17-0, later updated to 18-0, and sent it to Appropriations. SB 1233 would require additional disclosure about utility cash on hand, capital structure, and related information in existing reports to help inform rates and affordability. Utilities opposed the measure as duplicative of existing proceedings and potentially delay-inducing, while supporters said it would improve transparency for ratepayers. The committee passed SB 1233 10-3 to Appropriations. The committee also dispensed with the consent calendar, passing the remaining consent items, including SB 925, SB 667, SB 952, SB 742, SB 929, SB 943, and SB 1138, and noted that SB 905 had been pulled from the agenda.

Transcript Highlights:

• California residents do face the second highest utility rates in the nation.
• California residents do face the second highest utility rates in the nation, while utility companies
• California residents pay the highest energy rates in the continental U.S. while our investor-owned utility
• Many critical and necessary programs are funded through rates, but as we scrutinize what could be pruned
• The SB 695 report shows trends, what's driving rates, how to reduce costs, recommendations, short term

Committee: House Utilities and Energy

Transcript Highlights:

• President Trump's approval rating now stands at 37%. That's a pretty low approval rating.
• stabilized HCMC and invested in distressed hospitals with $30 million in uncompensated care and a rate
• </c><00:01:50.080><c> increase</c> uncompensated care and a rate increase uncompensated care and a rate
• Critical access payment rate increase for our critical access hospitals, another $15 million.
• Critical<00:12:58.920><c> access</c> Critical access Critical access payment<00:13:00.520><c> rate</c

Summary: Senate Majority Leader Erin Murphy said the 2026 session ended with major accomplishments despite frustration over what did not pass. She highlighted a $1.2 billion bonding bill, housing and rental investments, property tax reductions, support for HCMC and distressed hospitals, public safety and crime victim funding, IT modernization, and fraud-prevention measures. She also said the Senate pushed a tab fee holiday, though she criticized Republicans for delaying its start until January, and described the session as focused on a “fair deal” for Minnesotans facing higher costs. Murphy said some of the most difficult work involved human services and fraud oversight. She said lawmakers created an independent inspector general office, funded the Attorney General’s Medicaid fraud unit, added training and electronic visit measures, and included payment-withholding language with due-process protections and continuity-of-care safeguards. She said the Senate tried to balance fraud enforcement with preserving access to Medicaid-funded services, and emphasized that legislators must continue oversight and follow audit recommendations. She also expressed deep disappointment that a comprehensive gun violence prevention package did not pass the House, saying it included prevention, intervention, harm reduction, school safety, and mental health provisions. She said the package was rejected by House Republicans and that she would keep fighting for it. On immigration enforcement, she said the Senate proposed protections against ICE actions but could not get them enacted. She also discussed campaign strategy, saying Democrats would defend frontline seats and emphasize health care, housing, jobs, and affordability, while continuing to support roads, bridges, and transit.

Transcript Highlights:

• Good Morning America segment, a quite lengthy segment, about people's concerns about raising utility rates
• These same principles guided Tacoma Power as we designed our large load rate in 2024.
• up to $1,500 a megawatt hour to import power, and ratepayers saw tens of millions in unanticipated rate
• Our levy rates have dropped by over 64 percent, and as such, we've seen a great amount of benefit from
• What we'd like to see in the bill is a more explicit recognition of utilities that already have a rate

Summary: The committee first took up House Bill 2515, which addresses emerging large energy use facilities, especially data centers. Staff explained that the bill requires utilities to adopt tariffs or policies for data centers, adds reporting and sustainability requirements, sets renewable energy targets, and creates a sales tax exemption for certain eligible data center equipment in eastern Washington. The House sponsor said the bill is intended to protect ratepayers, grid reliability, water resources, and Washington’s climate goals as data center growth accelerates. Tribal representatives and several environmental and labor witnesses urged restoring provisions removed from the House version, especially authority to curtail data center load during energy emergencies and to refuse service if reliability or affordability would be harmed; they also asked for stronger water reporting and protections for salmon. Utility, business, and data center industry witnesses supported the bill’s general framework but raised concerns about implementation, costs, and some of the added requirements, while some opposed the tax exemption and the loss of earlier protections. No final action on 2515 was taken during the hearing portion shown. The committee then heard and acted on several bills in executive session. It passed Substitute House Bill 1302, which allows municipal utilities to waive connection charges for industrial symbiosis projects. It also passed House Bill 2338 on community-scaled weatherization projects after rejecting an amendment, and House Bill 2367 on eliminating preferential treatment for a coal-fired plant after rejecting an amendment. Substitute House Bill 2496 on tribal consultation by the Energy Facility Site Evaluation Council was amended and then passed, while amendments to change public meeting and tribal summary provisions were rejected. Engrossed Substitute House Bill 2225 on AI companion chatbots, House Bill 2426 on PCHB efficiency and appeals, House Bill 2606 on the Office of Privacy and Data Protection, Engrossed House Bill 2575 on reducing reporting obligations, and Engrossed Second Substitute House Bill 2215 on Climate Commitment Act compliance for fuels were also advanced, with some amendments adopted and others rejected. The committee then reopened public hearing on House Bill 2416, which would treat a Spokane waste-to-energy facility differently under the Climate Commitment Act by allocating no-cost allowances in the second compliance period and requiring a decarbonization and waste-reduction plan. Spokane city officials, labor, environmental groups, and Ecology generally supported the bill as a balanced approach that protects ratepayers while allowing the facility to decarbonize, though Avista raised a concern about language implying a utility compliance obligation. After that, the committee resumed testimony on House Bill 1170, which requires large AI providers to offer provenance tools and disclosures for AI-generated or altered images, video, and audio. Supporters said the bill would help workers and consumers identify synthetic media and prevent impersonation and misinformation, while industry and civil liberties witnesses argued the bill is technically difficult, uses new definitions, and may be unworkable or premature compared with California’s evolving approach.

Transcript Highlights:

• It's really important because New Mexico has one of the highest traffic fatality rates in the nation,
• New Mexico has one of the highest traffic fatality rates in the nation, and a significant number of those
• making ...and raise people's rates.
• Number two, it prohibits utilities from raising people's rates from purchasing microgrid power.
• Madam Chair, members of the committee, and a special... protects our rate payers.

Bills: SB251 , SB150 , SB154 , SB73 , SB111 , SB172 , SB76 , SB181 , SB235

Committee: Senate Senate Tax, Business & Transportation

Transcript Highlights:

• It's owned as a public asset forever, and it's designed for people who are priced out of market-rate
• the supply of affordable workforce housing to low-income households and those priced out of market-rate
• 1, 2027, and it specifies that scissor stairs are separately enclosed, divided by fire-resistance-rated
• assemblies as opposed to fire-resistance-rated walls.
• assemblies as opposed to fire-resistance-rated walls.

Bills: SB6069 , SB6167 , SB6201 , SB6205 , SB6001 , SB6026 , SB6054 , SGA9278 , SGA9279

Committee: Senate Housing

Transcript Highlights:

• We've had a very good success rate.
• We've had a very good success rate.
• We've had very good success rate.
• Our interest rates vary. We are currently below market about 0.375.
• And the turnover rate and ...staff does tremendous damage to families and children.

Bills: HB70 , HB93 , HB95 , HB139 , HB140 , HJR4

Committee: House House Government, Elections & Indian Affairs

Transcript Highlights:

• We have continued to cut individual income tax rates.
• Um, restrain the growth rate of spending. Mr.
• Um, restrain the growth rate of spending. Mr.
• Our revenues are income tax rates.
• </c><01:22:29.840><c> Speaker,</c> rate of spending. Mr. Speaker, rate of spending. Mr.

Transcript Highlights:

• This was relative to the toll rate adjustments.
• the envelope too much to have the Department of Transportation have the ability to raise the toll rates
• </c> ability to raise um the toll rates. ability to raise um the toll rates.
• </c><00:13:10.320><c> and</c><00:13:10.639><c> so</c> uh looking at inflation rates and so uh looking
• at inflation rates and so forth<00:13:11.200><c> and</c><00:13:11.440><c> then</c><00:13:11.760><c>

Committee: Senate Transportation

Transcript Highlights:

• And those are things that insurers have to take into account to accurately price and rate their risk.
• these measures, and assurance that we can keep our homes insured, and even potentially get a lower rate
• Third, the rate of assessment should be based upon a percentage of gross revenue, which can simply be
• Even though the rate of return seems to be fairly significant if we had that funding from the state,
• The bill creates a rate payer oversight board to be appointed by the WTMA and it consists of at least

Summary: The committee first heard Senate Bill 6137 on sports wagering. Staff explained that the bill would allow wagering on collegiate events involving Washington colleges, but would continue to prohibit bets on the performance of individual college athletes. Tribal representatives from the Jamestown S’Klallam, Puyallup, and Kalispel tribes testified in support, saying the bill would keep wagering within the regulated tribal marketplace, protect integrity, and help smaller tribal casinos participate through a hub-and-spoke model. University of Washington and Washington State University representatives supported the ban on individual prop bets and emphasized student-athlete safety, while WSU also argued the bill would expand exposure to harassment and online abuse. No vote was taken. The committee then heard Senate Bill 6079, which would create the Strengthen Washington Homes wildfire mitigation grant program. Staff said the bill would fund grants for wildfire-hardening homes to IBHS standards, authorize pilot projects, and prohibit insurers from using wildfire risk to disqualify homes that meet the standards. Insurance Commissioner Patty Kuder and Senator Marcus Riccelli supported the bill, arguing that wildfire losses and non-renewals are increasing and that upfront mitigation is cheaper than recovery. Local officials and advocates from Medical Lake, Washington Realtors, and climate and wildfire groups also supported the measure. Insurance industry representatives supported the mitigation goals but objected to the bill’s requirement that insurers provide coverage based on IBHS designation and to using the commissioner’s regulatory account as a funding source, saying underwriting still needs to consider broader risk factors. No action was taken. The committee next held a work session and public hearing on Senate Bill 6061, which would create a tourism self-supported assessment program. State of Washington Tourism, the Washington Wine Commission, the Washington Hospitality Association, the Brewers Guild, the Port of Seattle, and rural economic development representatives said the state’s tourism program is underfunded and that an industry-led assessment could provide a stable, competitive funding source. They said the model would be governed by a ratepayer oversight board, subject to ratification, and could generate significant visitor spending and tax revenue over time. Some testimony raised concerns about the scope of eligible businesses and the bill’s references to other industries, but supporters said friendly amendments would refine those details. The committee then heard Senate Bill 5844 on self-storage rental agreements, which would allow electronic agreements, clarify acceptance by continued occupancy, and create a uniform process for termination or nonrenewal for nonpayment or nonmonetary defaults. Self-storage operators supported the bill as a modernization measure that would improve safety and consistency, and no vote was taken on any of the bills heard.

Transcript Highlights:

• So it would have the effect of actually raising rates. One more question from Representative Walsh.
• So it would have the effect of actually raising rates. One more question from Representative Walsh.
• , Medicare and Medicaid, being less than... ...caused by our own state reimbursement rates, Medicare
• I 100% agree that reimbursement rates, I 100% agree that reimbursement rates, particularly for primary
• That is impacted by reimbursement rates. And so I 100% agree we need more of those.

Summary: The committee held public hearings on House Bill 2255, House Bill 2548, and House Bill 2320. HB 2255 would regulate third-party litigation funding by requiring disclosure of funders and agreements, prohibiting funder control over litigation, capping funder recovery at 25%, and creating enforcement remedies. Supporters, including the sponsor, insurance groups, and liability reform advocates, described it as a transparency and consumer-protection measure that could improve court efficiency and reduce costs. Opponents, including the Washington State Association for Justice and the commercial litigation funding industry, argued it would burden plaintiffs, reveal protected work product, chill access to justice, and create satellite litigation. No vote was taken; the chair closed the hearing and asked testifiers to submit written comments. HB 2548 would expand state oversight of health care market transactions by broadening the types of mergers, acquisitions, asset sales, and ownership/control changes that trigger notice to the Attorney General, pausing transactions until information requests are substantially complied with, expanding interagency data sharing, and revoking nonprofit status in certain transactions. Supporters, including patient advocates, nurses, the Office of the Insurance Commissioner, the Attorney General’s office, physicians, and individual health care workers, said private equity and consolidation are driving higher costs, reduced access, and lower quality. Opponents from the Washington State Hospital Association and MultiCare said the bill is unclear, may contain drafting errors, does not adequately target private equity structures, and could create problems around nonprofit status and charitable assets. The hearing ended with the committee moving on to the next bill. HB 2320 would update Washington’s ghost gun laws to address 3D-printed firearms, CNC manufacturing, digital firearm manufacturing code, and the sale of machines marketed for firearm production, and would make certain violations per se Consumer Protection Act violations. The sponsor and supporters, including school officials, gun violence prevention advocates, a trauma survivor, a 3D-printing industry representative, and others, said the bill closes a public safety loophole and responds to the growing availability of untraceable weapons. Opponents, including the NRA, makerspace representatives, and some industry witnesses, argued the bill is overbroad, may sweep in lawful 3D-printing and CNC activity, raises First, Second, and Fifth Amendment concerns, and could create uncertainty through rebuttable presumptions and the CPA provisions. The transcript ends during the HB 2320 hearing, with additional testimony panels still to come and no final committee action recorded.

Transcript Highlights:

• More than half—in fact, more than 60%—of our bridges are rated fair or poor.
• At that funding rate, present day, we estimate our preservation backlog to be about $231 million.
• At the current funding levels, if we kind of flatline that rate out into the future...
• If your condition rating is below a certain amount, you're colored red.
• Ratings below a certain amount, you're colored red.

Summary: The committee first met in brief executive session and advanced Senate Bill 5989 without recommendation to the Ways and Means Committee. Staff explained the bill would redistribute sales tax on aircraft fuel, affecting general fund revenue, which was why it was better suited for Ways and Means. The motion passed by voice vote. The committee then heard a presentation from Transportation Secretary Julie Meredith on WSDOT’s 2025 work and 2026 priorities. She highlighted agency reorganization, safety initiatives, preservation needs, bridge strikes and storm damage, ferry service improvements, major projects such as Revive I-5, the Interstate Bridge Replacement Project, fish passage work, and preparations for the World Cup. Members praised the department’s communication and work, and asked about additional paving and preservation funding; Meredith said WSDOT had prepared projects that could be advanced if more money were available. Washington State Ferries Assistant Secretary John Vizina and staffer Jenna Forty followed with a detailed briefing on vessel and terminal preservation. They described the aging fleet, the need for new hybrid-electric vessels, the governor’s proposed funding for three additional ferries and life-extension work on older vessels, and the importance of terminal upgrades such as Fauntleroy. Senators asked about service contingency planning, the cost and timing of hybrid versus diesel vessels, and whether additional vessels would require rebidding; staff said hybrid-electric construction is the fastest path and that any expansion would depend on statutory direction and legal review. The committee then heard from local government representatives on preservation and storm recovery. The Association of Washington Cities and the Transportation Improvement Board described city road and bridge needs, limited local funding, and the importance of sustained preservation investment and programmatic grants. County representatives from the Washington State Association of County Engineers, Snohomish County, and the County Road Administration Board discussed the December flooding, road washouts, bridge damage, and recovery costs, emphasizing that counties face large preservation backlogs and need state and federal help for repairs and resiliency.

Transcript Highlights:

• RDA is charged with producing the authoritative data on exits, rates of homelessness among youth exiting
• any system of care... ...homelessness at one year upon an exit of any system of care, foster care rates
• We still have concerningly high rates in the criminal legal space. Thanks, slide.
• They have elevated rates of unemployment, homelessness, and incarceration, and under this version of
• Youth who have transitioned out of foster care face disproportionate rates of housing instability and

Summary: The Senate Human Services Committee held a work session focused on housing and services for youth and young adults, especially those exiting public systems of care. DCYF Assistant Secretary Vicki Ibarra described existing supports, including family reconciliation services and the youth and young adult housing response team, which coordinates with other agencies to help young people ages 12 to 24 avoid homelessness. Office of Homeless Youth Director Casey Hannawer Sutton outlined the office’s role in reducing youth homelessness, citing a 40% reduction since 2016, expansion of services to 37 counties, and ongoing work on prevention and “functional zero” efforts. Treehouse and the Mockingbird Society testified about education, transition, and housing barriers for foster youth and young adults, including funding cuts to Treehouse’s Graduation Success program, eligibility gaps, and the need for peer supports, financial literacy, and housing stability. A health impact review from the State Board of Health on a prior version of the extended foster care housing proposal found the bill would likely improve housing stability, health outcomes, and equity for some young adults in extended foster care. The committee then heard public testimony on Senate Bill 5911, which would stop DCYF from using Social Security benefits of young adults in extended foster care to reimburse the state for care costs. Sponsor Sen. Emily Alvarado said the bill would protect federal benefits that belong to the young person and help them meet basic needs; supporters from Partners for Our Children, TeamChild, Mockingbird Society, and a former foster youth testified that the current practice harms housing, education, and stability and urged the state to end it. Members discussed the need for financial literacy and the federal government’s recent direction discouraging the practice. The committee also heard Senate Bill 5940, a two-year extended foster care housing pilot that would provide rental assistance for up to 50 eligible youth in extended foster care who are homeless or at risk of homelessness, with transition planning required before age 21. Sen. Wilson said the bill is intended to keep young people in care from having to choose between foster care support and housing assistance. Testimony from Mockingbird Society, current and former foster youth, and Communities in Schools supported the bill as a way to reduce homelessness and improve educational and health outcomes. The committee briefly heard Senate Bill 5942, which would rename the DCYF Oversight Board as the DCYF Accountability Board and shift its reporting structure while keeping its oversight role, and Senate Bill 5957, which would expand the Office of Homeless Youth Advisory Committee to include additional members with lived experience and representation from disproportionately affected communities.

Transcript Highlights:

• has spread all the way throughout the Keys, there is a very, very high, over 90 percent mortality rate
• both asexual and sexual reproduction, a microfragmentation technology rapidly speeding up the growth rates
• asexual and sexual reproduction, a micro fragmentation technology, rapidly speeding up the growth rates
• We find we have a higher survival rate if that happens, and then we go out to the field for outplanting
• those smaller corals with some of the branching coral, and we're finding a very, very high success rate

Committee: Senate Environment and Natural Resources

Summary: The Committee on Environment and Natural Resources heard a series of presentations focused on coral reef restoration, artificial reefs, biosolids management, and a proposed biosolids processing facility. Mote Marine Laboratory described the severe decline of Florida’s coral reefs, its restoration methods using microfragmentation, genetic banking, selective breeding, nurseries, and outplanting, and asked for a long-term state commitment to help restore reef areas. The Keys Marine Laboratory and Florida Institute of Oceanography highlighted their role as a hub for coral rescue, holding, propagation, and research, including emergency response during the 2023 bleaching event. The Fish and Wildlife Conservation Commission discussed the scale of reef loss, the state’s coral rescue and propagation efforts, and the economic and habitat value of artificial reefs, while noting permitting delays and material-selection concerns for reef projects. The committee then received a DEP update on the Osborne Reef tire cleanup. DEP explained that the original tire reef was a failure, that nearly 500,000 tires had been removed by 2024, and that the current effort is funded at $5 million for the fiscal year, with cleanup now shifting from large tire clusters to more difficult individual tires and coral relocation. Members asked about the future of the site after cleanup; DEP said that phase two decisions, such as whether to restore or monitor the area, have not yet been made. DEP also presented on biosolids rules, explaining that the 2021 rule tightened nutrient management, groundwater, and surface water protections, reduced the number of active land-application sites, and contributed to a shift away from Class B land application toward Class AA, landfill, or out-of-state disposal. Senators raised concerns about PFAS, nutrient loading, and the loss of disposal options, and a public speaker warned of a statewide septage disposal crisis. Finally, Sedron Technologies presented its VARCOR system and a planned Indiantown facility that would process dewatered biosolids into clean water, ammonia, and a dry Class AA product or fuel, with the company saying the process can destroy PFAS and help relieve regional disposal pressure. Senators expressed support for the technology as a potential solution to Florida’s biosolids challenges. No formal votes were taken on the presentations themselves, and the only action at the end of the meeting was adjournment after Senator Polsky moved to do so.

Transcript Highlights:

• So, at today's market rate, it would be well over a million.
• Another issue we have is that premiums are unsustainable at the current rate, and I will talk more about
• I don't know what the rates are now, but simplifying that and allowing small hospitals to participate
• Observation status gets paid a much lower rate than an inpatient. That's.
• So the USDA put out a really excellent report last year that shows an analysis of mortality rates in

Committee: House Legislative Health & Human Services Committee

Transcript Highlights:

• The home loan program helps veterans purchase market-rate homes and is over a hundred years old.
• We were able to maintain four- and five-star ratings all throughout COVID.
• You know, Civil War veterans, of course, at the time, you know, rates of literacy in the nation were
• Our vacancy rate within our enforcement division is about 15%, which is consistent with the rest of the
• But you are right, the combined tax rate can be extremely high.

Summary: The Assembly Budget Subcommittee 5 on State Administration held an informational hearing on budget issues for the Department of Veterans Affairs, the Department of Cannabis Control, the Department of Consumer Affairs, the Commission on the Status of Women and Girls, and the California Arts Council. The chair noted there would be no votes. CalVet gave an overview of its programs serving veterans and families, including transition assistance, county veterans service officers, education approvals, housing and homelessness programs, home loans, long-term care homes, and state veterans cemeteries. Members asked about future long-term care needs for aging veterans, staffing and recruitment challenges at veterans homes, and the Yountville steam infrastructure replacement project, for which CalVet sought a $38.8 million reappropriation and said federal reimbursement was expected. CalVet also discussed the role of county veterans service officers in helping veterans file claims and avoid predatory unaccredited representatives. The Department of Cannabis Control described its regulatory role from seed to sale and requested one position to implement SB 1064’s combined activities license. Members and public witnesses focused heavily on the illicit cannabis market, enforcement staffing, and the impact of taxes and fees on the legal market. DCC said it had roughly 87 enforcement positions with about a 15% vacancy rate and more than 200 compliance staff. Its economist presented the 2024 cannabis market report, which found licensed production and retail quantity were up, but retail value and prices were down, with an estimated 11.4 million pounds of illicit production and about 60% of California consumption still coming from the illicit market. Industry witnesses argued the legal market is in crisis, urged repeal of the scheduled excise tax increase, stronger enforcement against illicit cannabis and hemp-derived intoxicants, and expanded retail access. The Department of Consumer Affairs briefly presented nine budget proposals, including a $2.6 million ongoing request to maintain a business modernization system for several boards and bureaus. The Commission on the Status of Women and Girls described its work on economic and educational equity, health care, violence prevention, student rights, and archival and outreach projects, and said its budget request would convert limited-term positions to permanent. A member urged the commission to narrow its priorities toward current issues such as affordability, child care, and women’s health. The California Arts Council outlined its role as the state’s only statewide arts funder and requested restoration of $5 million in local assistance; supporters testified that the funding would leverage additional local investment and help sustain arts access, especially in rural communities. The hearing ended after the non-presentation items were noted and no further public comment was offered.

Transcript Highlights:

• if it were to be viewed as those accounts were being rated for other purposes.
• progress rate, and bachelor salaries.
• Conversely, while focusing on outcomes, FAMU has seen its Pell access rate drop from 65% to 56.1%.
• now at UCF, one of the younger universities in the system, but we are growing at a very, very high rate
• What is the market rate for a comparable program?

Committee: Senate Appropriations Committee on Higher Education

Summary: The committee held an informational hearing on higher education funding, focusing on how Florida’s university system should be financed and whether a new funding model is needed. University system financial officers and Chancellor Ray Rodriguez discussed major cost drivers, including wages and benefits, utilities, maintenance, financial aid, research, and the effects of geography, institutional mission, and student mix. UF highlighted the cost of research and graduate programs; UCF and FAU pointed to growth, location, and cost of living; FAMU emphasized recruiting top-tier talent while relying on other revenue sources; and UNF noted the challenges of growth and long-term planning. Members also discussed the role of internal controls and audits in addressing excessive spending and questioned whether out-of-state tuition should be adjusted to help offset costs. On revenue sources beyond state appropriations and tuition, the panel described auxiliaries, restricted funds, capital projects, and component units such as foundations and health systems. Several universities noted that some revenues are restricted to specific purposes and cannot be used for general operations. FAMU explained that a large share of its capital project funding reflected active campus construction, while UF said its component-unit revenue is largely tied to UF Health. The Chancellor emphasized that the system’s low tuition and strong state support are central to Florida’s national standing, but also noted that some auxiliary revenues are pledged to debt and must be managed carefully. When discussing the current funding process, witnesses praised Florida’s performance-based funding model for aligning incentives with student success, transparency, and accountability. They also raised concerns about non-recurring appropriations, rising employee benefit costs, unfunded mandates, deferred maintenance, and the difficulty of multi-year planning. Suggestions for improvement included more recurring funding, better coverage of mandated costs, greater flexibility in fee-setting, and possible weighting for mission, geography, and institutional type. The Chancellor said the Board of Governors is considering a “version 3.0” of performance-based funding that would benchmark institutions against peers and Carnegie classifications, but any changes would require legislative action. On out-of-state tuition, most universities said they would prefer local board flexibility, while the Chancellor cautioned that increasing out-of-state enrollment or fees could affect future state support and should be balanced carefully.

Transcript Highlights:

• Since June, personal income tax withholding, for example, is growing at an annual rate of around 10%.
• The school meals funding provides a much higher reimbursement rate for students who are eligible for
• decline is still the decline, and I think you all know this; it's predominantly driven by low birth rates
• Historically low birth rates. Other factors exist, but the birth rates are the number one issue.
• Generally, school districts don't get favorable rates because it's done on a meter-by-meter basis, right

Transcript Highlights:

• Um, we have among the worst facility conditions ratings of all state agencies.
• I just ratings of all state agencies.
• </c><00:03:26.480><c> this</c> one of the worst incidents rates this one of the worst incidents rates
• them I think you I I think Mindot rates them I think you rate<01:33:11.199><c> them</c><01:33:11.280
• I know rate them as number one and two.

Committee: Senate Capital Investment