Transcript Highlights:

• If we aren't happy with just totally eliminating the tariff, we can do something else.
• happy with just totally<00:19:25.200><c> eliminating</c><00:19:25.760><c> the</c><00:19:26.000><c> tariff
• ,</c><00:19:26.559><c> we</c><00:19:26.799><c> can</c> totally eliminating the tariff, we can totally
• eliminating the tariff, we can do<00:19:27.120><c> something</c><00:19:27.360><c> else.

Committee: House Finance

Transcript Highlights:

• We have tariffs. Uh, there's issues with even sourcing them.
• </c><00:37:40.720><c> We</c><00:37:40.960><c> have</c><00:37:41.119><c> tariffs.
• We have tariffs. Uh be shipped here. We have tariffs.

Bills: HB1629 , HB1630 , HB1631

Committee: House Economic Development & Technology

Summary: The committee heard testimony on several bills, beginning with HB 1829 on marine affairs. Most testimony was in strong support, with speakers from state agencies, ocean-tech companies, startups, nonprofits, and community groups backing the creation of an Office of Marine Affairs and a marine affairs coordinator under HTDC. Supporters said the measure would better coordinate ocean policy, strengthen the blue economy, and help Hawaii capture jobs, investment, and innovation in marine-related industries. No vote or final action was taken in the portion provided. The committee then took up HTDC-related measures, including HB 1615 and HB 1613, which also drew broad support from business, technology, and economic development interests. Testifiers said the bills would strengthen Hawaii’s technology and innovation ecosystem, support advanced manufacturing and cybersecurity, and help build a more diversified economy with higher-wage jobs. The committee also heard HB 1607 on public procurement and HB 1772 on small business procurement; state procurement staff and several business groups supported efforts to expand opportunities for local firms, while one speaker from the city’s economic revitalization commission argued that a flat 5% preference could help keep more revenue and jobs in-state. On HB 1636 relating to shopping carts, the Hawaii Food Industry Association and Retail Merchants of Hawaii testified in opposition, saying the bill would penalize businesses for carts that are stolen rather than abandoned and would add costs that could especially burden small and local retailers. HB 1810 on charitable solicitation drew support from Goodwill Hawaii and other nonprofits, who said the bill would improve transparency around donation bins and protect donors from misleading for-profit collection practices; the Attorney General’s office asked for a delayed effective date to allow system changes and staffing. HB 1782 on AI and the protection of minors received broad support from state agencies, educators, and advocacy groups, but some business and retail representatives urged narrowing the definition of covered AI services so ordinary customer-service chatbots would not be swept in. Finally, HB 1759 on theft drew opposition from the Public Defender’s Office, which said the bill could create overly harsh penalties and should include defense representation on any task force; the office also noted existing laws already address conspiracy and related conduct.

Transcript Highlights:

• And then the tariffs.
• The tariffs have been another bomb dropped on our industry where it's made our industry very uncertain
• And then the tariffs.
• The tariffs have been another bomb dropped on our industry where it's made our industry very uncertain

Summary: The joint informational hearing of the Select Committee on Electric Vehicles and Charging Infrastructure focused on California’s EV market, charging infrastructure, and the effects of recent federal actions. The chair opened by emphasizing California’s progress on EV adoption and charging reliability, but also noted ongoing challenges with affordability, access, interoperability, heavy-duty electrification, and federal headwinds. She highlighted interest in technologies such as inductive charging and thanked host organizations and staff before moving to the first panel. State agency witnesses from Go-Biz, CARB, and the California Energy Commission described current programs and priorities. Go-Biz outlined its role in coordinating agencies, supporting permitting, and advancing the state’s ZEV market development strategy and equity action plan. CARB discussed federal attacks on its clean vehicle regulations, litigation to defend waiver authority, and the importance of incentives and regulatory programs such as Advanced Clean Trucks, Advanced Clean Fleets, Clean Truck Check, HVIP, and Clean Cars for All. The CEC detailed its funding and regulatory work on charging and fueling infrastructure, charger reliability, payment methods, roaming, and statewide planning, while stressing the need for more charging in multifamily housing and more public DC fast charging. All three agencies said federal rollbacks and permitting delays are major obstacles, but that California remains committed to expanding ZEV adoption. The second panel featured advocates, local government, utility, and research perspectives. CalETC urged continuous state funding through the Greenhouse Gas Reduction Fund and emphasized the low-carbon fuel standard, multifamily charging, and managed charging. An EV advocacy group proposed a conquest-style state incentive for new and used EV buyers and argued that multifamily housing is a major untapped market, while also favoring Level 2 charging over Level 1 for most home and apartment settings. Los Angeles County and LADWP described large-scale local deployment of chargers, fleet electrification, workforce training, and the need for sustained funding, agency coordination, and streamlined permitting and grid interconnection. UCS recommended prioritizing replacement of older high-emitting vehicles, using fuel policy revenues to support cleaner cars, and expanding bidirectional charging. The chair closed by asking for more discussion on Level 1 versus Level 2 charging and noted the importance of education, affordability, and practical deployment strategies.

Transcript Highlights:

• Even as their tariffs are costing an extra 1,200 bucks, regular people can't afford the rent and Republicans
• EVEN AS THEIR TARIFFS ARE COSTING AN EXTRA 1200 BUCKS.
• When Donald Trump's stupid tariffs are raising the price of groceries, the cost of coffee is up 40% over
• Actually, President Trump moved $300 million of tariff revenue to fund WIC during the shutdown.

Bills: HR874 , HB5371 , HR873

Keywords: Richard B. Cheney, Congress, House of Representatives, respect, resolution, continuing resolution, appropriations, fiscal year 2026, omnibus, government funding, federal budget, USDA, Department of Agriculture, FDA, Food and Drug Administration, Veterans Affairs, VA health care, military construction, legislative branch, Congress funding

Transcript Highlights:

• As of recent, with the uncertainty of the tariffs that’s created some risk adversity in regards to being
• of recent with the uncertainty<00:34:58.880><c> of</c><00:34:59.520><c> the</c><00:34:59.760><c> tariffs
• </c><00:35:00.320><c> that's</c> uncertainty of the tariffs that's uncertainty of the tariffs that's

Summary: The Budget Review Subcommittee on Transportation met on July 15, 2025, approved the June 4 minutes, and heard updates on aviation and riverport funding programs. Commissioner Mark Carter of the Kentucky Department of Aviation reported on the $200,000 grants for general aviation airports included in House Bill 1, saying the money is being used mainly for hangar projects, fuel trucks, parking lot resurfacing, airport equipment, crew cars, and public education efforts. He said about 25 hangar-related projects were reported, with an estimated 60 T-hangars and four or five box hangars supported, and noted that the grants are often used to match federal funds. He also said the state’s jet fuel tax revenue generates about $23 million annually, up from about $19 million in 2021, and that most airports are now compliant with the ADS-B/VOR-related reporting system required in budget language, which has improved reported operations and may help airports qualify for FAA grants. Members asked about the pace of airport projects, the limited number of contractors for hangar construction, and whether airports could finance hangars themselves. Carter said timing has generally been good, though federal projects have slowed somewhat and contractor capacity remains a challenge, and he said there is no statute preventing airports from financing part or all of a hangar project. Questions also focused on the long-term need for hangars and the effect of the jet fuel cap, with Carter saying general aviation airports still have significant hangar demand and rely on state assistance because hangars are a key revenue source. Jeremy Edgeworth of the Transportation Cabinet and Brian Wright of the Kentucky Association of Riverports then reviewed riverport projects funded through House Bill 265 and House Bill 1. Edgeworth said the cabinet’s riverport grant program awarded $500,000 in each of fiscal years 2025 and 2026 for 13 projects under an 80/20 match, and that House Bill 1 provided $7.5 million per year for public riverports with no local match. He described completed or underway projects at multiple ports, including equipment replacements, dock and road repairs, material handling upgrades, mooring cell rehabilitation, and a waterline loop at Owensboro. He said $12.6 million of the KPRCM funds had been awarded across 20 projects, with about $2.4 million still to be awarded later in the fall. Wright said the riverport investments are helping ports replace aging assets, expand capacity, and match federal dollars, but he also said the statewide capital need remains large, with the current list of top projects already in the $90 million range and longer-term needs still estimated at $60 million to $90 million. Members asked about timelines and future needs, and Edgeworth said many of the larger projects will take two to five years because of permitting and coordination with the Army Corps of Engineers. No additional votes or formal actions were taken beyond approving the minutes.

Transcript Highlights:

• That's a law that you can't tariff a movie.
• I do see where tariffs and other sectors, you have industry stepping in to really advocate for the abatement
• Tariffs are increasing the cost of everything from materials to essential services.
• Tariffs are increasing the cost of everything from materials to essential services.

Summary: The joint informational hearing focused on how federal actions are affecting arts, culture, humanities, libraries, museums, and creative industries in California. Chair Ben Allen, Vice Chair Chris Ward, and other members described the moment as a crisis, citing proposed or implemented cuts to the NEA, NEH, and IMLS, grant terminations, leadership removals, and budget proposals to zero out major cultural agencies. Members emphasized that arts and humanities are both culturally essential and economically significant, and they framed the hearing as a chance to hear impacts on the ground and consider state and federal responses. Testimony from Aaron Harky of Americans for the Arts and Jolie Fisher of SAG-AFTRA highlighted the scale of the problem. Harky said federal rescissions and policy changes are causing immediate financial harm, forcing hiring freezes, program cancellations, and emergency fundraising, while disproportionately hurting rural, immigrant, elder, and small community organizations. She noted California’s creative economy generates hundreds of billions of dollars and urged support for restoring state arts funding, museum grants, and legislation such as SB 456 and AB 3149, along with federal measures like the Charitable Act and Performing Arts Tax Parity Act. Fisher focused on film and television production, saying runaway production, outdated tax rules, and weak federal IP protections are harming workers and local businesses; she urged federal production incentives, tax parity for performers, and stronger protections against AI misuse of artists’ voices and likenesses. State agency leaders Rick Noguchi of California Humanities, Greg Lucas of the State Library, and Danielle Purcell of the California Arts Council described direct impacts from federal funding disruptions. Noguchi said California Humanities lost NEH support immediately, putting grants and documentary projects at risk and prompting possible litigation and appeals. Lucas said the State Library initially faced a major IMLS funding loss but has since had part of the money restored, though still with a reduced amount that will limit local assistance. Purcell said the California Arts Council is assessing terminated grants and fielding urgent calls from grantees, while continuing to distribute state arts funds and track the damage. Members asked about bipartisan support, business coalition-building, economic measurement, AI threats to creative work, and the implications of federal leadership changes; no votes were taken, but the hearing ended with calls for continued advocacy, legal action, and possible state investment to stabilize the sector.

Transcript Highlights:

• The tariffs that the Trump administration has introduced means that the industry is now reconsidering
• The tariffs that the Trump administration has introduced means that the industry is now reconsidering
• With rising tariffs, supply chain disruptions, and inflation, AB 405's added burdens come at the worst
• With rising tariffs, supply chain disruptions, and inflation, AB 405's added burdens come at the worst

Committee: House Natural Resources

Summary: The committee heard several bills focused on environmental protection, climate policy, public health, and housing. AB 1425 would prohibit pit dewatering near the San Joaquin River Parkway where groundwater is shallow, with the author and supporters arguing it is needed to protect the river, groundwater, flood safety, tribal and cultural resources, and a nearby restoration area. Supporters included environmental groups, local residents, and Indigenous speakers, while CEMEX, labor representatives, and industry groups opposed the bill as an improper circumvention of the CEQA process that could threaten an existing mine and about 100 jobs. After extensive questioning about hydrology, blasting, and the CEQA record, the committee voted the bill out on a due pass as amended recommendation, with some members not voting and the roll left open for absent members. AB 881 would lift California’s moratorium on carbon dioxide pipeline regulation and direct the State Fire Marshal to develop safety standards for carbon capture and sequestration pipelines. The author and supporters, including SMUD, Calpine, utilities, labor, and industry groups, said the bill is needed to advance carbon removal goals, preserve federal funding, and support clean energy and jobs. Environmental justice and conservation groups opposed or opposed unless amended, warning that CO2 pipelines pose serious safety risks and that state authority and standards need to be stronger. The bill received a due pass as amended recommendation to Appropriations. AB 1207 would tie California’s cap-and-trade price ceiling to the federal social cost of carbon. The author and EDF said the measure would keep the program science-based and protect it from federal political interference, while no opposition was heard in the room. The committee approved the bill on a due pass recommendation. AB 1106, sponsored by air quality agencies, would create a network of regional air quality incident response centers to improve monitoring and public health response during wildfires and other disasters; it also received a due pass recommendation after testimony on mobile monitoring, VOCs, metals, PM, and asbestos sampling. The committee also heard AB 28, the Landfill Fire Safety Act, prompted by the long-running Chiquita Canyon landfill subsurface fire. The author and residents described serious health impacts and argued the bill would require monitoring, reporting, corrective action, and stronger enforcement when landfill temperatures rise. Waste and county representatives opposed the bill as drafted, saying the cause of the event is still unclear and the proposal could impose broad costs on landfills statewide, though they said amendments improved the framework. Members discussed the scale of the fire, possible medical impacts, and whether the bill would punish compliant operators; the bill was sent out on a due pass as amended recommendation. The committee also heard AB 357, which would require the Coastal Commission to act within 90 days on student and faculty housing projects in the coastal zone; supporters said it would help address student homelessness and housing costs, while coastal and planning advocates raised concerns about the amendment and the role of coastal review.

Transcript Highlights:

• Maybe we'll get an easing up of tariffs or whatever it is.
• up of tariffs or<01:51:37.200><c> whatever</c><01:51:37.680><c> it</c><01:51:37.840><c> is.
• They come from tariffs,<02:46:55.520><c> collapsing</c><02:46:56.160><c> commodity</c><02:46:56.680><
• c> markets,</c><02:46:57.520><c> a</c> tariffs, collapsing commodity markets, a tariffs, collapsing commodity
• My response: address the actual causes, challenge the tariffs, reform the subsidy programs, and stop

Summary: The House convened with 58 members present and seven excused, establishing a quorum, and approved the April 15, 2026 journal as corrected. The chamber then moved through announcements recognizing visiting railroad workers, LIUNA Local 720, Colorado West Christian Schools, Religious Freedom Day, and several school and community groups, along with birthday acknowledgments and committee schedule notices. The House also adopted a motion to remove House Bill 1245 from special orders and returned it to the general orders second reading calendar, and set House Bills 1290, 1312, and 1321 as special orders. The House adopted Senate Joint Resolution 18, recognizing Nowruz and expressing support for the human rights and fundamental freedoms of the Iranian people, including the Women, Life, Freedom movement. Supporters described Nowruz as a holiday of renewal and resilience and tied the resolution to solidarity with Iranian communities. Representative Zokaie also spoke at length about the personal impact of war on Iranian families and urged a vote. The resolution passed 59-2 with four excused. The chamber then considered several bills in committee report. House Bill 1290, concerning assault and clarifying sentencing, was amended in Judiciary to remove the medical professional provision and passed after testimony emphasizing strangulation as a serious warning sign in domestic violence cases; it then passed the House. House Bill 1312, dealing with peace officer participation, POST Board composition, academy training, and related grants, was amended for clarity and passed the Judiciary report and then the bill. House Bill 1321, modifying the School Security Disbursement Program, had the Education Committee report defeated, but amendments were adopted to broaden eligible service providers and adjust funding language; the bill then passed as amended.

Transcript Highlights:

• business to, say, our Israeli competitor because they can take advantage of, you know, differences in tariffs
• business to, say, our Israeli competitor because they can take advantage of, you know, differences in tariffs

Committee: House Commerce, Consumer Protection, Energy and the Environment

Summary: The Commerce Committee met with quorum and first took up several bills in executive session. It adopted a House committee substitute for House Bill 2080 and then voted the substitute do pass on a 6-2 roll call. The committee also voted House Bill 1745 do pass by 6-2 and House Bill 3230 do pass unanimously, 8-0. HB 2080 was described as a proposal related to state investment in cryptocurrency, including Bitcoin, other crypto and stablecoins, with a trigger tied to constitutional changes and language allowing staking of assets. In public hearing, House Bill 3490, sponsored by Rep. Mike Jones, would modify Missouri’s Local Historic Preservation Act so that in certain large cities, property owned by public or private colleges and universities could not be designated as historic landmarks by local commissions. Supporters argued the bill would protect property rights and allow universities to develop campus property, while opponents and some members said it appeared aimed at a specific Kansas City dispute and could be overbroad or an overreach into local historic preservation. No one testified in formal support or opposition, and the hearing closed without action. The committee then heard House Bill 3316, a Department of Revenue cleanup bill sponsored by Rep. Jeff Knight. The department said it would simplify vehicle registration and titling, including flat registration fees instead of horsepower-based fees, changes to alternative fuel decals, disabled placards, Real ID document retention, out-of-state vehicle tax collection, legal-name titling, higher late-registration penalties, and ending even-odd year registration. Members asked about water-damaged titles, dealer plate thresholds, emissions inspections, and temporary tags; the department and sponsor said they were open to amendments on some points. Copart testified in informational support, asking that resale exemptions remain intact. The committee then heard House Bill 3027, also by Rep. Knight, which would create tax incentives for companies producing critical minerals, materials, and certain pharmaceuticals in Missouri. The sponsor and supporters said the bill was aimed at reducing dependence on foreign supply chains and encouraging mining and processing in-state; a chemical manufacturer suggested tightening the bill by making credits nontransferable and tying them to actual production and profitability, and the Missouri Chamber supported the concept. After the hearings, the committee adjourned.

Transcript Highlights:

• have the opportunity, as people are concerned about supply chain issues, national security issues, tariffs
• have the opportunity, as people are concerned about supply chain issues, national security issues, tariffs

Committees: House Economic Development , House Joint Committee on Rural Economic Development

Transcript Highlights:

• have the opportunity, as people are concerned about supply chain issues, national security issues, tariffs
• have the opportunity, as people are concerned about supply chain issues, national security issues, tariffs

Committee: House Joint Committee on Rural Economic Development

Summary: The Committee on Economic Development met with a quorum and first heard House Bill 2409 from Rep. Brenda Shields, which would create three child care-related tax credit programs to help address Missouri’s workforce and child care shortages. Shields said the bill is aimed at expanding affordable, reliable child care through community partnerships involving businesses, nonprofits, and providers, with credits for contributions to child care facilities, employer-provided child care assistance, and provider facility improvements. She and supporters cited child care deserts, high costs, and lost economic output, arguing the bill would help parents work and businesses recruit and retain employees. Witnesses in support included the Missouri Chamber, Kids Win Missouri, Associated Industries of Missouri, local chambers, economic development groups, and child care-related organizations; there was no opposition testimony. The committee then moved into executive session and approved House Committee Substitute for House Bill 2508 and House Committee Substitute for House Bill 2517, both by unanimous 12-0 roll call votes and both sent do pass on consent. The 2508 substitute dealt with series LLC language, including searchable records and stand-alone certificates of good standing. The 2517 substitute addressed wholesaling, adding a 14-day disclosure period and changing Attorney General enforcement language from “shall” to “may.” Finally, the committee heard House Bill 2654 from Rep. Knight, which would create a Missouri Works capital investment track for projects with at least $50 million in investment, offering a 2.5% tax credit without requiring new job creation. The sponsor and Department of Economic Development said the proposal is modeled on programs in other states and is intended to help Missouri compete for large investments, especially in manufacturing and automation. Many business and economic development groups testified in support, emphasizing retention, expansion, and regional competition; several members asked whether the $50 million threshold could be lowered, and the sponsor said he was open to discussion. No opposition testimony was offered, and the committee adjourned after the hearing.

Transcript Highlights:

• However, at Grant PUD, there is one tariff, Schedule 13, that is specific to hydro.
• However, at Grant PUD, there is one tariff, Schedule 13, that is specific to Hydro, right?

Bills: HB2436 , HB2322 , HB2343 , HB1420 , HB2426 , HB2271 , HB2215 , HB2421 , HB2301 , HB2296

Committee: House Environment & Energy

Keywords: oil tanker, tank vessel, restricted waters, Puget Sound, San Juan Islands, Rosario Strait, Admiralty Inlet, Discovery Island, New Dungeness, tug escort, pilotage, marine safety, spill prevention, oil transport, petroleum shipment, coast guard authorization, Board of Pilotage Commissioners, articulated tug barge, bunker vessel, refueling vessel

Transcript Highlights:

• state also is working to take care of that, and I know the administration did find some money in tariffs
• We haven't even started addressing the tariff issue, so I'll leave it at that.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• The RO corporate documents and the tariff...
• The RO corporate documents and the tariff must respect California's procurement, resource adequacy, environmental

Summary: The Assembly Committee on Utilities and Energy convened with a quorum and first heard SB 254, a major utility affordability and wildfire package authored by Senator Becker and coauthored by Assemblymember Petrie-Norris. The bill was described as combining wildfire mitigation reforms, $6 billion in securitized financing for future fire-mitigation capital spending, a public ownership/transmission financing program, tighter scrutiny of utility profits, clean energy permitting streamlining, stronger customer connection timelines, and a successor wildfire fund/continuation account to replace the current fund. Supporters, including the Governor’s office, TURN, labor, clean energy groups, utilities, and public advocates, said the measure would lower bills, stabilize utilities, protect fire victims, and reduce wildfire-related bankruptcy risk. Opponents and some local government groups raised concerns about affordability impacts, the volumetric wildfire fee, strict liability, and provisions they said could affect local control. After discussion, the committee approved SB 254 on a 16-0 vote and sent it to the floor. The committee then held an informational hearing on AB 825, which would enable California to participate in a West-wide electricity market. The authors said the proposal could save ratepayers up to $1 billion annually, improve reliability by allowing California to draw on a larger regional supply, reduce curtailment of renewable power, and lower greenhouse gas emissions. Support came from environmental organizations, labor, utilities, community choice aggregators, large energy users, and the Public Advocates Office, all emphasizing cost savings, reliability, and cleaner energy integration. TURN opposed the measure, warning that last-minute amendments removed safeguards against subsidizing out-of-state fossil generation and could expose California ratepayers to unwanted costs. Members questioned governance, exit rights, CPUC oversight, and local control, and the authors responded that the bill includes multiple safeguards, legislative reporting, the ability to exit without penalty, and continued local consultation. No vote was taken because the hearing was informational only.

Transcript Highlights:

• The RO corporate documents and the tariff...
• The RO corporate documents and the tariff must respect California's procurement, resource adequacy, environmental

Committee: House Utilities and Energy

Summary: The Assembly Committee on Utilities and Energy first heard SB 254, a major utility affordability and wildfire-liability package authored by Senator Becker and coauthored by Assembly Member Petrie-Norris. The bill combines wildfire mitigation oversight, $6 billion in securitized financing for future fire-mitigation capital work, a public ownership/transmission accelerator program, tighter scrutiny of utility profits, clean energy permitting streamlining, and a successor wildfire fund to replace the current fund after the January Southern California fires. Supporters, including the Governor’s office, TURN, labor, clean energy groups, utilities, and fire victim advocates, said the measure would lower bills, stabilize utilities, protect victims, and speed grid upgrades. Opponents from large energy users and agricultural interests argued the bill did not go far enough on affordability and that the wildfire fund’s volumetric charge would disproportionately burden business customers; counties also raised local-control concerns about permitting provisions. Committee members focused heavily on the wildfire fund structure, the role of ratepayers versus shareholders, and whether the bill creates enough incentive for utilities to reduce future wildfire risk. Authors and supporters said California’s inverse condemnation framework leaves ratepayers exposed without a fund, that the new continuation account would be split roughly 50/50 between ratepayers and shareholders, and that the bill includes a report on long-term sustainability. Members also discussed the clean energy permitting provisions and local consultation, with authors emphasizing that local land-use review and consultation remain in place. The committee then voted 16-0 to pass SB 254 to the floor. The hearing then shifted to an informational hearing on AB 825, which would enable California to participate in a West-wide electricity market. The authors and supporters said the regional market could save ratepayers up to $1 billion annually, improve reliability by widening access to wind and solar across the West, reduce curtailment, and lower greenhouse gas emissions. Support came from environmental groups, labor, utilities, community choice aggregators, large energy users, and business groups. TURN opposed the measure, warning that last-minute changes removed safeguards against California ratepayers subsidizing out-of-state coal plants and other costly fossil generation. Committee discussion on AB 825 centered on governance, exit rights, and legislative oversight. The authors described safeguards including market rules protecting California policies, consumer advocacy and market monitoring requirements, annual reporting to the Legislature, a delayed 2028 start date, and the ability for California or other members to exit without penalties. Members also raised concerns about the CPUC’s constitutional independence and local consultation, but the authors said the bill preserves local input and gives the Legislature ongoing oversight. No vote was taken because the hearing was informational only.

Transcript Highlights:

• We face tremendous uncertainty with prices, with tariffs, with the situation that's swirling around us

Summary: The House and Senate Transportation Committee conferees met to consider the conference report for SB 5161, the transportation budget for the 2025-27 biennium. Staff explained that the underlying 2023-25 transportation budget was revised downward by about $1.3 billion, from $14.5 billion to $13.2 billion, and the report included a dedication honoring the late Senator Bill Ramos for his service to Washington and its transportation system. Members from both chambers spoke in support of the budget and praised the work of committee staff, noting the difficulty and length of the negotiations. Several conferees said the budget was responsible and cautious given uncertainty around costs and federal funding, while still advancing major priorities such as ferry procurement, fish barrier removal, safety improvements, State Patrol staffing, preservation and maintenance, and key projects including the North Spokane Corridor, SR 520, Gateway, and other Connecting Washington and mega projects. After discussion, the committee adopted the conference report by voice vote, with members then recorded as recommending it. The report was advanced to the House and Senate, and the committee adjourned.

Transcript Highlights:

• I'm not going to debate a tariff policy here, but tariffs on Canadian lumber, tariffs on foreign steel

Bills: S3091 , H5477

Committee: Joint Joint Committee on Financial Services

Summary: The Joint Committee on Financial Services held a public hearing on two late-file matters, centered on S. 3091, a bill to create relief for homeowners affected by the crumbling concrete/pyrrhotite crisis. Senator Peter Durant presented the bill as a way to establish a crumbling concrete assistance fund, administered by CEDAC, to help replace failing foundations and reimburse homeowners who already paid out of pocket. He said the proposal follows recommendations from a state commission and would be funded by a $6 fee on homeowner/condo insurance policies and a $6-per-cubic-yard surcharge on concrete, with the goal of spreading costs broadly rather than placing them on homeowners alone. Several affected homeowners testified about severe financial and emotional harm, including expensive foundation replacements, lost equity, inability to sell or refinance, and long delays in getting help. Homeowners Karen Riani, Michelle Iglesi, Karen Bellotti, and Russell Dupierre described living with homes that became unsellable or unaffordable to repair, and urged the committee to move the bill forward. Committee members asked about inspection practices, whether pyrrhotite can be detected during home sales, whether the bill would ban pyrrhotite, and how much funding the program would need. Witnesses said the problem is broader than originally understood, affecting at least 52 municipalities, and that the only fix is full foundation replacement. They also said the bill includes training and education for inspectors, but does not ban pyrrhotite outright because the issue is now being addressed through quarry testing and material controls. Representatives of the concrete industry, including Craig Dauphinay, Karen Marshall, and Guy Glottis, said they support homeowner relief and the creation of a fund, but strongly opposed the concrete surcharge. They argued the industry has already taken significant steps, including supporting state testing and regulation of aggregate sources, and said the surcharge would unfairly assign blame, raise costs for residential, municipal, and infrastructure projects, and create cross-border competitiveness issues with neighboring states. They favored a Connecticut-style model funded primarily through insurance assessments, noting that Connecticut’s program has been successful and that Massachusetts could adopt a similar approach. No vote was taken at the hearing.

Transcript Highlights:

• talk about international backlash if we eliminate water's edge, but just as an observation, with the tariff
• California's water's edge elimination would be relatively minor compared to what's happening with the tariffs
• possible international and federal backlash against the state, again, which I just talked about with tariffs

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

Transcript Highlights:

• talk about international backlash if we eliminate water's edge, but just as an observation with the tariff
• California's water's edge elimination would be relatively minor compared to what's happening with the tariffs
• possible international and federal backlash against the state, again, which I just talked about with tariffs

Transcript Highlights:

• talk about international backlash if we eliminate water's edge, but just as an observation, with the tariff
• California's water's edge elimination would be relatively minor compared to what's happening with the tariffs
• possible international and federal backlash against the state, again, which I just talked about with tariffs

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the state’s water’s-edge election versus worldwide combined reporting. The LAO and Franchise Tax Board explained the basic mechanics of unitary taxation, apportionment, and how water’s-edge generally excludes most foreign subsidiaries while worldwide reporting includes the full unitary group. FTB officials said water’s-edge filers are a small share of corporate filers but account for a large share of tax liability, and they described filing trends, industry mix, and the administrative steps needed to administer either system. Members and witnesses debated the policy trade-offs. Supporters of moving away from water’s-edge argued that it enables profit shifting, especially for large multinational and IP-heavy firms, and that eliminating it could raise significant revenue and improve fairness for smaller domestic businesses. They cited estimates of billions in potential revenue and said California already has the audit and reporting infrastructure to handle worldwide reporting, though some transition time would be needed. Opponents argued that worldwide reporting would tax foreign activity unrelated to California, create double taxation, increase compliance burdens and litigation, and could be difficult for foreign-based multinationals to document. They also warned that some of the revenue estimates are highly uncertain because foreign affiliate income is not directly observable. Committee members asked about foreign government pushback, the risk of companies leaving California, the effect on intellectual property shifting, and whether federal or Supreme Court action could block a change. Witnesses generally said major firms would be unlikely to leave because California taxes sales rather than physical presence, but some costs could be passed on to consumers. The panel also discussed alternatives such as conforming to federal international tax rules like NCTI/GILTI and adding anti-abuse rules. No vote or bill action was taken; the hearing was informational only.