Transcript Highlights:

• I cannot thank the Legislature enough for the tools that were given.
• You know, we look to the legislature on this dialogue.
• You know, we look to the legislature on this dialogue.
• Like I said earlier, the legislature and administration are at a historic moment.
• I just hope the legislature goals. Thank you. Goals, thank you. Thank you.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy, Transportation, and Natural Resources focused on California’s transportation fuels sector, especially the state’s response to refinery closures and the broader transition away from fossil fuels. Opening remarks emphasized the tension between climate and air-quality goals, fuel affordability, refinery jobs and local tax bases, and the need to avoid crisis-driven responses as Phillips 66 and Valero consider shutting refineries in Wilmington and Benicia. Professor Emily Grubert framed the issue as a long-term managed transition in which the public already bears much of the risk and should also capture benefits from a well-planned shift. CARB Chair Leanne Randolph reviewed the state’s emissions and fuel policies, including AB 32, the low-carbon fuel standard, clean vehicle programs, and the at-berth regulation for ocean-going vessels. She said California’s transportation sector remains the largest source of greenhouse gases and a major source of smog-forming pollution, but that the state has made substantial progress and still needs to reduce demand for fossil fuels while maintaining compliance with federal air-quality standards. Randolph also said CARB’s recent LCFS amendments had not caused the predicted spike in gas prices and explained that compliance pathways for the at-berth rule include emissions-reduction technologies or payments into a remediation fund. CEC Vice Chair Gunda described declining gasoline demand, shrinking in-state refining capacity, and growing dependence on imports, arguing that the state is in a “mid-transition” period that requires both support for legacy infrastructure and continued investment in cleaner alternatives. He outlined the administration’s petroleum market stabilization proposal, which aims to return California crude production to 125 million barrels a year through four components: codifying the ban on fracking, validating the Kern County oil-and-gas permitting ordinance, creating a temporary CEQA exemption paired with a two-for-one plug-and-drill framework, and strengthening pipeline and spill-safety requirements. Department of Conservation Director Jennifer Lucasey said the proposal is intended to stabilize crude supply and pipeline throughput while preserving health and environmental protections, and noted that CalGEM would still review permits and enforce other requirements. Mayor Steve Young of Benicia testified that a Valero closure would significantly reduce city revenue and leave the community facing years of cleanup and redevelopment challenges. He said the city supports environmental protection but is worried about the economic hit, the possibility that Benicia becomes a fuel-import terminal, and the lack of local influence over refinery decisions. Members pressed the panel on the CEQA exemption, tribal and habitat review, disclosure of closure liabilities, fuel-demand projections, and whether the proposal should include more demand-side measures. No formal votes were taken; the hearing was informational, and officials said some proposals, including a margin-cap pause and further transition planning, would be taken up later in the process.

Transcript Highlights:

• And respectfully request that the legislature retain the program as proposed and the governors may This
• I'm here to thank the governor and legislature for the continued commitment to California students in
• The rub here is that under this Mayor Vision that $1.3 billion is going to go to the legislature. $1.3
• And a report to the legislature at the end that could then be used to inform future conversations.
• Any other members of the legislature here? Okay, seeing none, we'll continue with the public.

Transcript Highlights:

• SO, I THINK THE LEGISLATURE IN ITS WISDOM RECOGNIZED WE NEED TO HAVE SOME CONTROLS OVER THIS PROCESS
• THE FIRST CALCULATION MADE BY THE LEGISLATURE IN MARCH 2024 AND THEN THE SECOND CALCULATION.
• SENT A LIST OF 23,700 AND STUDENTS THE LEGISLATURE HAD FLAGGED AS POTENTIALLY BEING MATCHES BETWEEN
• WE COMPARED THE LEGISLATURE MOST OF THE DEPARTMENTS THERE IS SURVEY DATA 620 ETC., ETC., AND FOUND THAT
• AS NECESSARY THE DEPARTMENT SHALL WORK WITH THE LEGISLATURE TO ENSURE IT HAS SUFFICIENT AUTHORITY FOR

Transcript Highlights:

• We have stepped it up with a legislature that was signed by our governor just a few years ago.
• I want to suppress my gratitude to the legislature and the governor for funding our priority from last
• Thank you to the Legislature and thank you to the government for supporting the men and women of law
• Specifically that part of the statute was actually put in by the Legislature back in 2023.
• I hope, you know, you have friends here in the Florida legislature.

Transcript Highlights:

• Whereas the legislature established a joint select committee...
• Speaker, we have committees here in the legislature to do this very work.
• or could function as a proxy legislature.
• This was actually brought to the legislature by industry. It's been well worked.
• It cleans up a bill that the legislature passed last year.

Bills: HB2720 , HB2073 , SB5467 , SB5820 , SCR8406 , HB2487 , SB5816 , SB5919 , SB5995 , SB6278 , SB5831 , SB5915 , SB5963 , SB6025 , SB6046 , SB6084 , SB6134 , SB6136 , SB6137 , SB6188 , SB6291 , HB2689 , SB5922 , SB5944 , SB5957 , SB5988 , SB5994 , SB6011 , SB6065 , SB6103 , SB6151 , SB6244

Keywords: behavioral health, emergency services, health insurance, provider access, mental health funding, premium assistance, funding, healthcare, subsidies, SB 5467, water-sewer district, water sewer district, surplus property, public property sale, local government, RCW 57, real property disposal, personal property, notice of intent to sell, public auction

Summary: The House received several messages from the Senate announcing passage of engrossed or substitute versions of House Bill 2294, House Bill 2472, Senate Bill 606, Senate Bill 6335, engrossed substitute Senate Bill 6266, and engrossed substitute House Bill 3. The chamber then moved through second and third reading on a series of measures, often suspending the rules to advance bills to final passage. A major floor debate centered on Senate Concurrent Resolution 8406, which would reestablish the Joint Select Committee on Civic Health and expand its membership. Amendment 2131, offered to keep the committee at its current size rather than expanding it, was rejected after debate over fiscal restraint, committee scope, and whether the body functioned like a “proxy legislature.” The resolution then passed 83-10. The House also passed engrossed substitute Senate Bill 6200 on portable cooling devices for renters and mobile home occupants, Senate Bill 6084 on clarifying the prohibition on voting in more than one election, second engrossed substitute Senate Bill 5105 on sexually explicit depictions involving minors, and Senate Bill 6046 authorizing the Civil Air Patrol to be used by the governor in emergencies; each drew debate over policy scope, enforcement, and state-federal authority, but all ultimately passed. The House next passed substitute Senate Bill 6054, limiting HOA and common-interest community restrictions that conflict with wildfire-hardening measures; substitute Senate Bill 6091, requiring greater transparency in real estate broker practices; Senate Bill 6291, giving more time to train and certify on-site wastewater inspectors; substitute Senate Bill 6081, creating a Public Records Act exemption for sex designation information to protect transgender people from doxxing and harassment; Senate Bill 5963, automatically enrolling certain vulnerable students in the Washington College Grant; and substitute Senate Bill 6226, addressing audiology scope-of-practice and telemedicine concerns. Most of these bills passed with broad bipartisan support, though some drew dissent over added regulation, privacy, or scope-of-practice issues. The final portion of the transcript focused on Senate Bill 6106, which the Speaker ruled had an out-of-scope amendment related to agricultural seasonal workers; the bill itself passed 75-18 after debate over layoff notices and tribal sovereignty. Substitute Senate Bill 6014, dealing with pregnancy accommodations and related public records issues, saw a failed amendment to replace gender-neutral language with “pregnant woman” and then passed 68-25. The House also debated Senate Bill 5820, with multiple amendments concerning freight rail, greenhouse gas calculations, county planning, property rights, and rail safety; the excerpt ends amid that amendment debate before final action on the bill is shown.

Transcript Highlights:

• So that's something that has been a priority of our legislature.
• So I think from one vantage point, the legislature could view that as good news.
• Now, if the legislature does provide funding for UC to replace students, presumably the legislature wants
• Yeah, traditionally, the legislature has set targets for UC and CSU.
• Yeah, traditionally, the legislature has set targets for UC and CSU.

Transcript Highlights:

• You know, unlike the Great Recession when I first came to the legislature, this isn't an economic issue
• I'm very glad to know that the Legislature is having this conversation. As you said, Mr.
• You either invest now or the state legislature will pay later.
• And I sit back and I... ...and the Legislature are really concerned about child care as well.
• And I feel that the Legislature is more and more committed to try to figure this out.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held a hearing on the Trump administration’s freeze of federal child care and social services funding and its potential impact on California. The chair opened by emphasizing that child care is economic infrastructure and warning that the freeze could destabilize California’s $10 billion child care system. The Legislative Analyst’s Office and the Department of Social Services explained that California child care programs rely on roughly $1.4 billion in federal CCDF and TANF funds, which are blended with state dollars and support hundreds of thousands of children and families. CDSS said the state and four other Democratic-led states quickly sued, obtaining a temporary restraining order that has kept the funds flowing for now. Witnesses including Los Angeles County Supervisor Holly Mitchell, child care provider Amisha Griffin, and parent advocate Mara Linda Bustamante described the practical consequences of a funding interruption: providers could lose reimbursement, close centers, cut enrollment, or lay off staff; parents could lose child care, jobs, or school opportunities; and counties could not backfill the lost federal dollars. Several speakers stressed that child care centers also provide wraparound supports such as nutrition, developmental screening, and referrals, especially in rural and low-income communities. Mitchell and others argued that the freeze would worsen child care deserts and disproportionately harm women, single parents, and communities of color. Members repeatedly challenged the federal rationale of “waste, fraud, and abuse,” asking for oversight details. CDSS said providers face extensive audits, fraud policies, monitoring, and recoupment procedures, and that identified fraud amounts to about $7 million over two years compared with roughly $6.5 billion in annual child care spending. Several members said the fraud rate is under 1 percent and criticized the freeze as politically motivated and illegal. They also discussed the need for a state “bridge plan” to protect families if federal funds remain disrupted, and some members referenced prior legislation to modernize CalWORKs and child care eligibility. During public comment, parents, providers, county representatives, and advocacy groups echoed the same concerns, citing waiting lists, workforce losses, and the risk of families falling back into homelessness or poverty. No formal vote was taken; the hearing concluded with broad bipartisan expressions of support for child care funding and a commitment to continue working on state protections and federal advocacy.

Transcript Highlights:

• Finally, WSDA must also submit a preliminary report to the Legislature and governor by December of 2027
• resolution to the issue, but we think it’s important that since the legislature generously invested
• I don't know what the legislature will do this session.
• So we didn't go to 100%. ...to the legislature, to give y'all a chance to look at it.
• And will, at some point, the legislature get a number?

Bills: SB5816 , SB5971

Committee: Senate Agriculture & Natural Resources

Keywords: juice grapes, agriculture, commerce, state regulation, market access, green fertilizer, low-carbon, sustainability, incentive program

Transcript Highlights:

• This was the funding we started in the legislature is getting close to two decades ago.
• That's a basic part that their legislature funds for other schools across the state.
• That's a basic part that their legislature funds for other schools across the state.
• </c> Kentucky stats and their legislature Kentucky stats and their legislature uses<00:09:32.560><c>
• </c> the great things that the legislature the great things that the legislature did<00:10:44.079><c>

Summary: The committee heard an Office of Education Technology presentation on the Kentucky Education Technology System (KTS) and a request to increase its annual budget from $15.4 million to $30 million, including an additional $14.6 million. The witness described KTS as a statewide service model that provides districts with student information and financial systems, internet bandwidth, regional support, cybersecurity, online registration, learning management and email services, and collaborative instructional technology support. He argued the state’s centralized purchasing saves districts 40% to 60% compared with buying services individually, and said federal internet discounts and district matching funds create a strong return on investment. He also said KTS has faced long-term funding cuts, has not received a cost-of-living increase since 1992, and is now at a “breaking point” where some services may have to be shifted to districts at higher cost. The request was broken into six main items: restoring funding for the computer science and information technology academy; strengthening cybersecurity defenses in response to sharply rising attacks on K-12 systems; funding online registration through Infinite Campus; stabilizing ongoing support costs for Infinite Campus; providing cost-of-living increases for KTS services; and increasing the KTS financial assistance sent to districts, which requires local matching funds. Members asked about the current appropriation, and the witness said it is $15.4 million. One member praised the office’s work and support for districts, while another noted the district had been an early adopter of one-to-one technology. The committee then received an overview of the KRS 156 salary schedule and step-and-rank system for state-operated career and technical education staff at area technology centers. Officials explained that salaries are set under statute and regulation based on years of service and educational rank, with annual calculations tied to statewide teacher salary averages and retroactive adjustments to July 1. They said the current ABR request is $325,000 over the biennium to cover step and rank increases. The presentation noted that KRS 156 salaries are generally comparable to local districts but are less competitive with business and industry, making recruitment and retention difficult, especially for instructors coming from the trades. Members agreed that trade instructors are underpaid relative to the market and said the issue deserves further review, with department officials indicating they are considering possible statutory revisions and a delayed implementation in a future biennium.

Transcript Highlights:

• program, but the legislature did not actually fund grants.
• So actually putting that program into function would require additional work from the legislature. >>
• to start to stand from the legislature to start to stand up<00:43:31.119><c> uh</c><00:43:31.200><c>
• </c> additional uh work from the legislature. additional uh work from the legislature.
• </c><01:02:00.720><c> I</c> does the legislature impact that? I does the legislature impact that?

Transcript Highlights:

• Depending on available funding, the amount of funding that the Legislature provides for enrollment growth
• In terms of budget control, you ultimately, as a legislature and as a state, control the overall amount
• So with this startup period for Calbright ending, the Legislature faces a decision about how to fund
• So if that is the will of the Legislature, we'd certainly look at it.
• We respectfully urge the Legislature to fully restore Strong Workforce Program funding. Thank you.

Summary: The committee heard an overview of the California Community Colleges budget proposal, including Proposition 98 funding, a 2.41% COLA for apportionments, enrollment growth funding, repayment of an apportionment deferral, and one-time investments for a student support block grant and deferred maintenance. The Department of Finance described the Governor’s package as providing significant new resources, while the LAO recommended prioritizing COLA and enrollment growth within available funds but raised concerns about some smaller proposals, including making the Healthy School Food Pathways Program ongoing and adding more funding for credit for prior learning before outcomes are known. The Chancellor’s Office supported the COLA, enrollment growth, and one-time investments, and said current projections suggest enrollment growth closer to 3%, with about $85 million to $90 million in ongoing costs if fully funded. Members focused heavily on enrollment growth, the 10% district cap, and whether the state should continue funding growth in the current year and budget year. The Chancellor’s Office said some districts, especially in the Inland Empire and Central Valley, are growing rapidly and that about seven districts are above the cap, with roughly 1,563 FTES and about $30 million in ongoing costs tied to that issue. Members also discussed hold-harmless districts and whether declining campuses should be required to produce turnaround or right-sizing plans. The Chancellor’s Office said districts are already having local conversations and that state funding provides time to adjust, but no formal plan requirement was proposed. The committee then took up common course numbering, where the Chancellor’s Office said all 115 community colleges have implemented the first phase and more than 550,000 students enrolled in the first six commonly numbered courses. The office argued that CCN improves clarity but does not yet guarantee that credits will transfer with full value across UC and CSU, because articulation is still handled campus by campus and can require more than 3,500 separate reviews. Members expressed concern that students can still be forced to retake courses such as calculus or ethnic studies even when they have the same common number, and urged the systems to develop a stronger statewide articulation mechanism tied to outcomes and transparency. The item was left open. Finally, the committee heard the Governor’s proposal to make Calbright College’s funding ongoing at $53.1 million. The LAO recommended instead transitioning Calbright to the student-centered funding formula, with one-time bridge funding in the meantime, arguing the Governor’s proposal lacks a clear enrollment-based rationale and performance expectations. Calbright’s leadership defended the college’s competency-based, flexible model for adult learners, citing more than 6,800 students served, over 2,200 certificates awarded, and wage gains for graduates; they said enrollment is expected to grow from about 7,000 students now to roughly 8,000 to 9,000 next year and around 10,000 over the next couple of years. Members pressed for clearer enrollment and funding data before deciding how Calbright should be funded going forward.

Transcript Highlights:

• So all that stuff is available for the legislature to consider.
• That would give that opportunity to future legislatures.
• It started by a different legislature back in...
• Before I was in the Legislature, going back, I got that $50 check.
• Because it's statutory, it's whatever this Legislature or the future legislatures want to do with it.

Bills: HB3257 , HB3176 , HB3544 , HB3619 , HB3546 , HB1782 , HB2293 , HB4358 , HB3081 , HB3983 , HB3790 , HJR1023 , HB4139 , HB3297 , HB3041 , HB3673 , HB4105 , HB3338 , HB3048 , SR33 , SCR21 , SCR20 , HB4030 , HB4031 , HB4032 , HB4034 , HB4036 , HB4037 , HB4038 , HB4040 , HB4041 , HB4042 , HB4043 , HB4045 , HB4046 , HB4047 , HB4048 , HB4044 , HB4050 , HB4051 , HB4052 , HB4053 , HB4054 , HB4056 , HB4057 , HB4071 , HB4065 , HB4067 , HB4072 , HB2992 , HB4338 , HB4170

Summary: The Senate opened with roll call, prayer, and several gallery introductions recognizing guests and honorees, including the Medford Cardinals football team for their academic and athletic success, Guthrie Day, the Oscar J. Upham post office designation, the OKC Spark professional softball team, the Elks organization, and the YMCA’s 175th anniversary. Senators also welcomed a new intern and acknowledged Senator Carl McDowell’s return to the chamber. Most of the early floor time was devoted to ceremonial citations and concurrent resolutions, all of which were adopted without recorded opposition. The chamber then moved through a series of Joint Committee Reports and third-reading votes on appropriations and related measures. HB 4031 reauthorized $41 million for previously approved ODAA projects and passed 36-8, declared an emergency. HB 4032 redirected industry fees to the Department of Mines and passed 34-11, emergency. HB 4034 appropriated $142,137 for salary increases for certified shorthand reporters and passed 45-0, emergency. HB 4036 transferred $5 million from the Film and Oklahoma revolving fund to a new sitcom-related revolving fund and passed 30-15. HB 4037 raised the Ethics Commission Fund retention cap from $150,000 to $250,000 and passed 45-0, emergency. Several transportation, health, and public safety measures also advanced. HB 4038 moved $5 million for the eight-year road plan and additional project funding, passing 28-17 and then as an emergency measure after vote changes. HB 4040 set up cash-flow funds for the State Department of Health’s $223 million federal award and passed 45-0, emergency. HB 4041 appropriated $2.25 million to the Attorney General, including $2 million for a trafficking victim pilot program and $250,000 for a public safety technology fund, and passed as an emergency. HB 4042 appropriated $500,000 for the Commerce census revolving fund and passed 35-9. HB 4043 transferred $1 million to Emergency Management for Oklahoma Task Force 1 and passed 44-0, emergency. The most extended debate centered on HB 4045 and HB 4046, which expanded and funded the Military Readiness, Innovation, Education, and Aviation program. Supporters said the measures would help military bases, schools, infrastructure, simulation training, and defense-related economic development; critics questioned the broad language, lack of detail, and whether the projects fit a broader strategy. HB 4045 passed 37-7 and HB 4046 passed 39-7, both as emergency measures. HB 4047 funded Commerce projects including housing for aged-out foster youth, the State Fair, a university upgrade, and a COG-related economic development request; it passed 30-16 and then 40-6 as an emergency. HB 4048 appropriated $13 million for transportation infrastructure, drew criticism for bypassing the eight-year plan, and passed 36-10 before being declared an emergency. Finally, HB 4030, the Education Budget Limits Bill, was explained in detail, including $43.75 million for the Strong Readers formula, $5 million for literacy coaches, and $5 million for a charter school revolving loan fund; after questions about bonds, charter schools, and the revolving fund, it passed 39-5 and was declared an emergency measure.

Transcript Highlights:

• But with every legislature, we turn over every two years.
• on this when this joint committee is already a body of the state legislature.
• Why wouldn't we have it go to the entire legislature?
• They can kick it to the legislature...
• They can kick it to the legislature for all the reasons Senator Shamp just said.

Committee: Senate Senate Natural Resources Committee of Reference

Summary: The committee first heard House Bill 2787, which would bar the state and its political subdivisions from using personnel or financial resources to enforce or cooperate with the federal Mexican wolf reintroduction program, while exempting the Livestock Loss Board’s livestock loss program. Sierra Club and animal welfare advocates opposed the bill as harmful to wolf recovery and unnecessary given the livestock loss reimbursement data. The committee approved HB 2787 on a 4-3 vote. Members then considered House Bill 255, which would create a Brackish Groundwater Recovery Program Fund and authorize the Water Infrastructure Finance Authority to administer projects using long-term water augmentation funds. Opponents argued brackish groundwater is still groundwater and pumping it could cause localized impacts and land subsidence, while supporters framed it as a water-supply solution. The bill failed on a 2-4 vote. The committee next advanced House Bill 2782, requiring disclosure rules for regulatory assets included in utility rates, and House Bill 2781, which would impose financial assurance, insurance, decommissioning, and site-restoration requirements on solar energy power plants. HB 2781 drew stakeholder testimony from solar industry, utilities, and local-government interests; an amendment to revise financial assurance and remove a remediation fund was adopted, but the bill itself then failed on a 4-4 vote. The committee also approved House Bill 2975, which would suspend State Land Department solar scoring maps and require new mining and housing resource maps, despite opposition that it would reduce transparency and favor certain land uses over solar. Later, the committee approved House Bill 2696, as amended, directing the Arizona Commerce Authority to prioritize fuel and gas price reduction and create a fuel resiliency task force, after debate over whether the bill should focus more broadly on energy resilience and whether the ACA was the right agency. The committee also passed HCM 2009, urging Congress to streamline mining access, compensate states for subsurface mineral rights, and require legislative approval for new national monuments, and HB 2889, which would fund ADEQ monitoring of uranium contamination and create a statewide registry and tribal-partnered monitoring program. Finally, the committee heard HB 2763, which would require a legislative joint resolution before the Game and Fish Commission could close a shooting range; Game and Fish said it would add another step to the closure process and mainly affect the Ben Avery facility, but no vote was taken in the portion provided.

Transcript Highlights:

• Had the legislature followed its own rules, this bill would have been dead for the season.
• Had the legislature followed its own rules, this bill would have been dead for the season.
• It's really up to the Legislature on how much they want to invest.
• by power costs and policies adopted by this Legislature.
• This is our third year working with the legislature related to this bill.

Summary: The committee first suspended the five-day notice rule and then heard House Bill 2521 on firearm background check fees. Staff explained that the bill would remove the $18 fee cap and allow Washington State Patrol to set fees based on actual program costs, which could be about $33 to $35 per check. Supporters said the change was needed to keep the background check system operating and avoid delays and layoffs; opponents argued it would burden lawful gun owners and amount to an unconstitutional tax or barrier to a constitutional right. No vote was taken in the hearing. Members then heard Substitute House Bill 2475 on language-accessible public programs, which would direct the Office of Equity to develop uniform language-access guidelines, address interpreter and translator shortages, and require agency implementation reporting. Testimony was strongly supportive, emphasizing the need for consistent access for limited-English-proficient residents and the benefits for schools, families, and state services. The committee also heard Second Substitute House Bill 2479 on wage recovery, which would create a wage recovery fund to provide partial advance payments to low-wage workers with meritorious unpaid wage claims and adjust wage penalty provisions. Employers, labor advocates, and legal services representatives largely supported the bill as a bipartisan, worker-protection measure funded by penalties rather than the general fund. The committee next took up Engrossed Third Substitute House Bill 1960 on renewable energy tax incentives, which would replace existing property tax and excise tax provisions with a new state and local renewable energy excise tax structure and related grant programs for local governments and tribes. Counties, utilities, developers, and tribal representatives generally supported the bill’s goal of stabilizing tax treatment for renewable projects, though several witnesses said they wanted amendments to address rates, timing, and late-stage project impacts. The committee also heard Substitute Senate Bill 5932 on alternative jet fuel incentives, which would change the timing and duration of existing tax preferences; supporters said it would provide certainty for emerging sustainable aviation fuel projects, while one refinery sought clarification and a broader county threshold. Later, the committee heard Engrossed Substitute House Bill 2238 on statewide food security, directing the Department of Agriculture to monitor food system performance and develop a statewide food security strategy. Agricultural groups, grocers, anti-hunger advocates, and farmers supported the bill as a coordination effort to improve food access, affordability, and supply chain resilience. The committee then heard Engrossed Second Substitute House Bill 1903, which would create a statewide low-income energy assistance program through the Department of Commerce; supporters said it would address growing unmet need and complement existing utility programs, while opponents said it did not address the root causes of rising energy costs. Finally, the committee heard Engrossed Second Substitute House Bill 2416 on waste-to-energy facilities under the Climate Commitment Act and Engrossed Second Substitute House Bill 2515 on large energy-use facilities (data centers), both of which drew mixed testimony centered on balancing emissions, ratepayer impacts, reliability, and environmental or tribal concerns. No final votes were taken in the hearing.

Transcript Highlights:

• the bill that came from the Legislature.
• I want to begin by applauding the governor and the legislature for...
• The legislature is looking for ways to deal...
• The legislature is looking for ways to deal. using their medical coverage.
• We hope the Legislature will take action.

Summary: The Senate Budget and Fiscal Review subcommittee heard four budget trailer bills: AB 110, AB 122, AB 125, and AB 177. AB 110 was described as a budget bill junior identifying budget-related legislation. AB 122 would extend sales tax to electronically delivered or remotely accessed prewritten software, extend and later limit business tax credits, reduce the annual LLC/LLP/LP tax for first-year businesses for three years, and impose a 100% tax on certain federal anti-weaponization fund settlements. AB 125 would renew the managed care organization (MCO) tax for three years beginning in 2027 to support Medi-Cal and targeted provider rate increases. AB 177 would require the Department of Finance to return by March 1, 2027 with options for assessing large employers for the Medi-Cal costs of employees enrolled in the program, including at least one employer-paid premium option for firms with 250 or more employees, and would appropriate $1,000 General Fund for implementation. Administration witnesses said AB 122 modernizes the tax system and helps create general fund revenue, while AB 125 is needed to preserve Medi-Cal financing and targeted rate increases under new federal constraints from H.R. 1 and to avoid a budget hole if the MCO tax expires. On AB 177, Finance said the bill is only a study and does not itself impose a tax, but would direct the administration to develop options for future consideration. Supportive members argued the package is part of a balanced approach to address the structural deficit, protect health care and other safety-net programs, and ensure large corporations pay more of their share. They also said AB 177 is a necessary step toward asking large employers to help cover public health care costs for workers who rely on Medi-Cal. Opponents, led by Vice Chair Niello and several other Republicans, argued the state does not have a revenue shortage but a spending problem, warning that the proposals would raise costs on consumers and businesses, discourage innovation, and expand taxes beyond their intended scope. They criticized AB 122 as potentially taxing labor-like services and limiting research and development credits, and said AB 125 would increase premiums for commercial enrollees and employers. On AB 177, they questioned the lack of definitions and specifics, saying the bill is too vague and could eventually burden employers, including hospitals and part-time workers, without clear standards. No votes were taken in the portion of the hearing provided; the committee heard testimony and questions before public comment and later action.

Transcript Highlights:

• And annual report to the legislature.
• </c><00:02:40.480><c> has</c> And it's one that um the legislature has And it's one that um the legislature
• </c> influence on how the legislature influence on how the legislature procures<00:04:23.720><c> and<
• Um 12 members of the legislature Chair.
• </c> 12 members of the um of the legislature 12 members of the um of the legislature and<00:16:24.480

Committee: Senate Rules and Administration

Transcript Highlights:

• And I just want to say for the record, providing a two-page letter to this legislature, where we have
• The legislature has sent a number of letters requesting the status of enforcement actions, both to the
• That's something that this legislature can request.
• So I think those are really important, and those are questions that this legislature can ask as part
• to the legislature and that the legislature itself has that information to move forward and do what

Summary: The Assembly Health Committee held an informational hearing on Kaiser Permanente’s behavioral health care system, focusing on Department of Managed Health Care enforcement actions, Kaiser’s corrective action work plan, and testimony from patients, advocates, and union representatives. DMHC officials reviewed a long history of complaints, surveys, fines, and settlements involving Kaiser’s access to behavioral health services, including deficiencies found in 2012 and 2016, a 2022 non-routine survey, and a 2023 settlement that imposed a $50 million penalty and required $150 million in community investments over five years. DMHC said it continues to monitor Kaiser through quarterly meetings, complaint review, follow-up surveys, and a reimbursement process for members who could not obtain timely in-network care. Committee members pressed DMHC on what “timely access” and continuity of care mean in practice, how virtual care and group therapy fit into the standards, and what triggers a non-routine survey. DMHC said initial behavioral health appointments generally should not take more than two weeks, urgent care should be within days, and follow-up care within 10 days, with out-of-network care required when plans cannot meet standards. Officials also said Kaiser’s initial corrective action work plan lacked detail, but the revised plan was accepted and will be tracked through quarterly reporting and possible additional enforcement if Kaiser fails to comply. The second panel featured testimony from a Kaiser enrollee, a behavioral health policy expert, a Kaiser therapist, and the NUHW president. The enrollee described serious delays and inadequate treatment for his daughter after a suicide attempt, while the therapist and union leader said Kaiser’s behavioral health system is understaffed, relies too heavily on short appointments, group therapy, and webinars, and treats behavioral health as less important than medical-surgical care. They argued Kaiser’s one-appointment-at-a-time scheduling rule and limited treatment time violate parity requirements and harm continuity of care. Several members criticized Kaiser for not appearing at the hearing and said the testimony underscored the need for stronger oversight, clearer metrics, and faster remedies for patients.

Transcript Highlights:

• </c> manner in a ways that uh the legislature manner in a ways that uh the legislature has has has directed
• </c> workforce grants that the legislature workforce grants that the legislature has<00:47:45.680><c>
• ><c> not</c> However, the legislature has not However, the legislature has not directed<00:48:23.359>
• <c> to</c><00:51:52.000><c> establish</c> legislature direct deed to establish legislature direct deed
• </c> legislature um around developing goals? legislature um around developing goals?

Committee: House Workforce, Labor, and Economic Development Finance and Policy

Transcript Highlights:

• But that would be something to be cognizant of as the Legislature thinks about assisting hospitals.
• And if the Legislature and administration are considering additional funding, we support the existing
• If there is consideration for expansion of the scope of the program, we would point the Legislature to
• The intent of the Legislature in creating this program was to increase transparency about health care
• In 2018, the Legislature authorized $60 million in one-time funding for planning, implementation, and

Summary: The Assembly Budget Subcommittee on Health heard updates on five health-related budget items. First, members reviewed state support for distressed hospitals and health facilities. The California Health Facilities Financing Authority and HCAI described the Distressed Hospital Loan Program as a lifeline for 16 hospitals, many of which remain financially strained and are expected to seek loan forgiveness rather than repayment. Speakers cited reduced contract labor, new service lines, strategic partnerships, and the reopening of Madera Hospital as signs of progress, but also warned that federal policy changes under H.R. 1 will likely increase uncompensated care and pressure emergency departments. Public commenters from hospital, dental, and consumer groups supported additional funding, including a request to refresh the program with another $300 million. The committee then heard HCAI’s update on the California Rural Health Transformation Program, a five-year federal initiative funded at $233.6 million for California. HCAI said the program will focus on rural care models, workforce development, and health technology, with grants to be rolled out on a fast timeline and all funds obligated by October 30, 2026. Members raised concerns about rural provider capacity to apply for grants, and HCAI said it will use a third-party administrator, a technical assistance center, webinars, and other supports to help applicants. HCAI also presented its budget request for the health care payments database, seeking ongoing non-General Fund support to continue operations and expand data, including pharmacy benefit manager data. The Emergency Medical Services Authority presented three budget change proposals: funding to replace disaster medical services fleet vehicles, funding for IT security work, and additional positions for HR, enforcement, and legal workload. A member also raised concern that EMSA has not yet completed the annual ambulance rate reporting required by AB 716, and EMSA said it remains committed to the requirement but lost prior funding through later budget reductions. Covered California reported that it is still finalizing its own budget, but expects a lower operating budget due to efforts to reduce baseline costs and align spending with actual expenditures; it also projected enrollment declines tied to the expiration of enhanced premium tax credits, H.R. 1, and federal rule changes, while noting that revenues may still rise because premiums are expected to increase. Finally, the Department of Managed Health Care outlined budget proposals tied to menopause coverage and education, PBM licensure and enforcement under AB 116 and SB 41, credentialing reforms under AB 1041, and prior authorization reporting under SB 306. Public testimony generally supported the menopause and PBM proposals, while also urging clearer language and attention to Medi-Cal parity. The hearing concluded after public comment, including additional advocacy for sickle cell services and rural health workforce funding.

Transcript Highlights:

• As sort of coming out of that has also been increasing concern from the Legislature about wanting to
• So it was intended... ...subject to appropriation by the Legislature.
• But ultimately, the Legislature would have to appropriate any additional projects funded from the fund
• So all the projects are going to come back to the Legislature anyway, which is...
• The legislature—we haven't been involved in that. You know, here we're handed this.

Bills: SB234 , SB210 , SB243 , SB244 , SM16 , HB8

Committee: Senate House Education

Summary: The Senate Education Committee began by announcing that SB 210 would be rolled over to Friday and would not be heard. The committee then returned to SB 234, which would provide foster child school transportation funding statewide rather than only for Albuquerque Public Schools. Members adopted an amendment striking the APS-only language and making the bill statewide after testimony from the sponsor, PED, and others that foster youth transportation is a growing issue and should have its own funding stream. The committee discussed how the money might be distributed and whether the $1.2 million appropriation would be sufficient, then voted do pass on SB 234 as amended. The committee next heard HB 8, which creates a Higher Education Major Projects Fund for large capital projects that are difficult to fund through existing capital outlay processes. Testimony from the sponsor, LFC, HED, and university representatives explained that the bill would support projects such as the UNM School of Medicine, an NMSU multidisciplinary building, student housing, student life projects, and certain Division I athletic facilities, while requiring design readiness, institutional matches, and legislative oversight. Several senators raised concerns about the clarity of the prioritization process, the Division I-only athletics language, the recurring nature of future funding, and the relationship to other capital funding streams, but the committee ultimately voted do pass on HB 8. The committee then considered SB 243 and SB 244, nearly identical bills for UNM and NMSU that would each appropriate $5 million for student health, student support, nutrition, travel, scholarships, and other athletic department needs. Athletic directors testified that conference realignment, higher travel costs, nutrition demands, and new revenue-sharing/NIL obligations have increased expenses, and sponsors said the bills were intended as one-time appropriations. Some senators questioned whether the requests should be recurring or funded through university revenue rather than the state, but both bills received do pass recommendations. Finally, the committee heard SM 16, as amended, which asks HED to convene a task force to study parenting students in higher education and recommend ways to collect data and improve support. Supporters said better data is needed to understand barriers such as child care and transportation, and the memorial passed with a do pass recommendation. The committee then adjourned until Friday morning.