Transcript Highlights:

• Although I didn't come to the budget committee, so Diane is super smart here, but we were able to retain

Summary: The hearing began with a vote-only agenda and then focused first on San Mateo County’s request to restore in-lieu vehicle license fee (VLF) funding. County officials, city leaders, labor representatives, nonprofits, and public safety advocates argued that the loss of roughly $157 million would force major cuts to homelessness services, housing assistance, mental health programs, libraries, parks, fire and police staffing, and other local services. They described the current formula as outdated and unfair, tied to school funding and basic-aid dynamics that no longer work for San Mateo County, and urged both an immediate budget restoration and a permanent legislative fix. The Department of Finance said the payments are discretionary, not statutorily required, and noted the administration does not view the expenditure as sustainable in the current fiscal climate. Committee members expressed sympathy, questioned the formula, and said they would keep the issue under consideration; the committee later voted to move the two vote-only items on the agenda. The committee then received an update from the Department of General Services on state property redevelopment, including the Hillcrest DMV site in San Diego, the Fell Street DMV site in San Francisco, and other state-owned properties. DGS explained that Hillcrest is not currently an active project, while the Fell Street project shifted from an integrated DMV-housing plan to a more feasible relocation of the DMV into leased commercial space, with a budget change proposal pending. Members pressed DGS on the slow pace of redevelopment, the potential for housing on state sites, and the costs and feasibility of adaptive reuse. DGS said many state buildings are aging and that adaptive reuse depends heavily on building design, floorplate depth, light, and risk from unknown conditions behind walls. The Government Operations portion then turned to the California Education Learning Lab, which supports intersegmental higher education innovation grants. The Lab asked for permanent restoration of $4 million in ongoing funding and a move of its home agency from the Office of Land Use and Climate Innovation to GovOps, along with technical trailer bill changes. Supporters said the program has funded more than 120 projects reaching thousands of faculty and hundreds of thousands of students, including work on generative AI in higher education. The Legislative Analyst’s Office recommended rejecting the restoration and continuing the wind-down, citing the state’s projected deficit and suggesting the California Education Interagency Council could pursue non-state-funded grant opportunities instead. The committee held the item open. Finally, GovOps presented the new California Education Interagency Council staffing request, seeking four ongoing positions to support the council, with funding already included in last year’s budget. The department said the governor has appointed Debbie Cochran as executive officer and that the remaining positions are being recruited. Finance and LAO had no objections, and the committee began questions about how the council will be staffed and organized.

Transcript Highlights:

• Although I didn't come to the budget committee, so Diane is super smart here, but we were able to retain

Keywords: 988, house, all

Transcript Highlights:

• Very smart. We like that.

Keywords: 959, house, all

Transcript Highlights:

• Very smart. We like that.

Summary: The chamber first established a quorum, then moved through House Bills for Perfection. The first major measure discussed was House Bill 305, which would set policies for reconsideration of library materials in public and school libraries, require appeals processes, and prohibit tracking or retaining personalized user data, especially for minors. Supporters framed it as a local-control and parental-rights bill that largely codifies existing library practices, while some members raised concerns about the privacy language and whether materials should be removed during reconsideration. After discussion, the House adopted the committee substitute and ordered the bill perfected and printed. Members then took up House Bills 2366 and 2511, a bipartisan construction-industry bill aimed at combating illegal labor and off-the-books hiring. The bill would give the Attorney General more investigative authority, including subpoena power, require complaints to be made by affidavit, and impose stronger penalties on violators. Supporters said it would protect law-abiding contractors and workers and level the playing field, while some members asked about possible overreach and whether the bill could be used against businesses unfairly. The substitute was adopted and the bills were ordered perfected and printed. House Bill 2409 followed, proposing child care tax credits for contributions to providers, employer assistance, and provider expansion; it was presented as a response to Missouri’s child care shortage and workforce challenges. Members from both parties largely supported it as an economic and family policy, though one member noted the bill’s fiscal cost and contrasted it with recent budget cuts to child care subsidies. The House adopted the substitute and ordered the bill perfected and printed. The chamber also considered House Bill 1885, which makes changes to the Missouri Clean Water Commission by adjusting membership qualifications and conflict-of-interest rules to make appointments easier while adding recusal procedures. Members said the changes would help fill vacancies and bring in knowledgeable members, and the bill was ordered perfected and printed. House Bill 2658 addressed telephony laws, expanding the no-call list to any phone subscriber, adding anti-spoofing provisions, and creating penalties for caller ID spoofing; an amendment adding misdemeanor penalties for spoofing was adopted, and the bill was then perfected and printed. House Bill 1919 would require more employers to file certain tax withholding documents electronically, aligning state practice with IRS rules; it passed with support and was ordered perfected and printed. Finally, House Bill 1871, an omnibus elections bill, proposed several election administration changes, including electronic receipt of notices, shifting filing deadlines away from holidays, expanding testing windows for voting equipment, protecting the confidentiality of the permanently disabled voter list, requiring tax compliance for certain local candidates, and tightening write-in candidate rules. A key amendment removed an expansion of no-excuse absentee voting to keep the fiscal note at zero; that amendment was debated at length and then adopted before the bill moved forward.

Transcript Highlights:

• You know, we rely on people that we identify as experts in certain fields and stuff, which is smart,

Committee: House House and Governmental Affairs

Summary: The committee took up several House bills dealing mainly with ethics, elections, and legislative procedure. HB 858 by Rep. Riser, creating a public records exception for GPS data on wildlife and aquatic life held by the Department of Wildlife and Fisheries, was reported favorably without objection. HB 661, which expands existing nepotism exceptions to allow school board members and superintendents to hire immediate family members as paraprofessionals and janitors, drew support from members concerned about staffing shortages in schools; the Ethics Administrator noted the board’s concern that repeated exceptions erode the nepotism rules, but the bill was still reported favorably without objection. HB 359, a cleanup bill on the death of a non-major-party primary candidate, was also reported favorably without objection. HB 258, which clarifies that volunteer firefighters are not subject to dual office-holding restrictions and allows retired judges to serve on certain boards while still being available for ad hoc judicial service, passed on an 8-4 roll call vote. Rep. Newell’s HB 705, which would strengthen contempt of the legislature penalties and add provisions addressing disorderly conduct and interference with legislative proceedings, generated the most debate. Members raised concerns about the proposed jump in fines from $1,000 to $50,000, due process, and the breadth of language that could be read to cover ordinary advocacy or passionate testimony. After discussion, the author agreed the bill needed more work, and it was voluntarily deferred in committee. The committee also heard HB 177, allowing retired court reporters to return on a contractual basis to address shortages, which was amended and then reported favorably without objection. HB 238, which would remove a waiting period and population-based restriction for former school board members or certified psychologists to return to work in school districts, prompted a lengthy debate about the judiciary and per diem rules because of related ethics concerns raised in the discussion; the author ultimately asked to voluntarily defer the bill, and the committee agreed. Finally, HB 398, which would cap lodging, meal, and incidental expense reimbursements for state officials and employees at GSA rates and limit emergency exceptions, drew sharp opposition from several members and a retired judge who argued the current judicial per diem is reasonable and tied to safety and travel needs. The author said he would work on amendments and voluntarily deferred HB 398. The committee then began discussion of HB 752, which would move the timing of regular legislative sessions into joint rule and change the session start/end dates, with the author explaining it was intended to give the Legislature more flexibility without needing constitutional amendments.

Transcript Highlights:

• Alicia Pregow, Chamber of Progress: With smart, safety-first policy and intentional workforce development

Summary: The Senate Transportation Committee held an informational hearing on autonomous vehicle technology in California, with testimony from industry, safety advocates, first responders, drivers, and state regulators. The chair framed the hearing as an overview of AV deployment, safety, first responder interactions, and current and future regulation. Witnesses from the AV industry argued that autonomous vehicles can reduce crashes and injuries, create jobs, and support California’s leadership in innovation, while critics and crash survivors described serious safety failures, including phantom braking, inadequate transparency, and crashes involving Tesla’s Autopilot/Full Self-Driving systems. Several witnesses urged stronger disclosure, data preservation, independent safety validation, and clearer accountability for companies deploying these systems. First responder and labor witnesses described operational problems in San Francisco and elsewhere, saying AVs have blocked fire engines, ambulances, and police responses, shut down in emergency scenes, and caused major delays during outages. They asked for faster and more reliable remote support, a public safety manual override, clearer enforcement authority, and limits on deployment in complex conditions. A police chief representative said law enforcement supports innovation but needs standardized protocols, training, and clear statutory authority. A Teamsters representative criticized proposed DMV rules for heavy-duty autonomous trucks, arguing they rely too heavily on manufacturer self-certification and do not impose enough independent safety review or geographic limits. State regulators from the DMV and CPUC defended California’s existing AV framework, saying the state has regulated AVs since 2014 and now has an end-to-end system with permits, reporting requirements, enforcement tools, and first responder coordination. DMV officials said the new rulemaking would add more reporting, address heavy-duty AVs, and require compliance with emergency geofence messages and law enforcement direction. CPUC testimony emphasized that its role is limited to passenger service and ride-hail operations. Committee members asked about crash data, remote operations, liability, response times, and whether California should adopt more uniform standards and stronger guardrails. No votes or formal actions were taken, as the hearing was informational.

Transcript Highlights:

• With smart, safety-first policy, and intentional workforce development, California can capture these

Committee: Senate Transportation

Keywords: 987, senate, all

Transcript Highlights:

• It was a risk, but we felt it was a smart investment, and it was our nest egg. Sorry.

Summary: The Assembly Banking and Finance Committee held an outcomes review of AB 238, the wildfire mortgage forbearance law, focused on how the law has worked for survivors of the Eaton and Palisades fires. Chair Valencia and Assemblymember Harabedian said the hearing was intended to hear directly from survivors, assess whether the law is being implemented as intended, and identify fixes. Several survivors described losing homes, facing long rebuild timelines, and struggling with insurers, housing costs, and mortgage servicers. Many said they encountered confusion, inconsistent information, requests for financial documentation, lump-sum repayment demands, credit reporting problems, or loan modifications that they viewed as undermining the law’s purpose. Some urged clearer consumer education, a consumer bill of rights, and an extension of forbearance relief; one witness specifically advocated for AB 1847 to extend forbearance to 36 months. DFPI Chief Deputy Commissioner Suzanne Martindale said the department had received about 300 wildfire-related consumer complaints, mostly about mortgage forbearance, and that more than 91% had been resolved in the consumer’s favor. She said the department works with both state-licensed and federally regulated institutions, but its authority is limited when national banks are involved, so it often uses outreach and direct contact with lenders and federal partners to resolve complaints. She also described recurring complaint themes such as difficulty obtaining forbearance, customer-service breakdowns, withholding of insurance funds, and non-interest-bearing impound accounts. Committee members pressed DFPI on which institutions were noncompliant, what enforcement tools were available, and how much data the state could collect and make public. Representatives of the California Bankers Association and California Mortgage Bankers Association said lenders had provided early disaster relief and were working to comply with AB 238, but emphasized that mortgage servicing is constrained by federal law, investor requirements, and secondary-market guidelines. They argued that forbearance is temporary relief, not forgiveness, and warned that extending it without a clear repayment path can create future payment shock or larger debt burdens. They also said many servicers use disaster protocols tied to federal declarations and that clearer communication is needed. In response to committee concerns, the mortgage bankers said they would continue working with the Legislature and federal agencies, but could not promise changes beyond investor and agency rules. No votes or formal committee actions were taken during the hearing.

Transcript Highlights:

• It was a risk, but we felt it was a smart investment, and it was our nest egg. Sorry.

Committee: House Banking and Finance

Keywords: 988, house, all

Transcript Highlights:

• Because I know the POS systems are smart enough and have recorded enough data to easily tell us, are

Committee: House General Laws

Keywords: 959, house, all

Transcript Highlights:

• It's such a smart move. We heard the motion.

Committee: House Commerce and Human Resources

Keywords: 989, all

Transcript Highlights:

• That was a smart move from me to say, but I like where you're going.

Committee: House Joint Committee on Transportation Oversight

Summary: The committee first took up House Bill 2759 in executive session. The sponsor explained a committee substitute that would shift the bill’s disclosure requirement so project completion dates would be posted when work is awarded, rather than during the bidding process. Members discussed the fiscal note and whether the change could affect contractor pricing and MoDOT costs. The committee adopted the substitute and then voted the House Committee Substitute for House Bill 2759 “do pass” by a roll call of 13 ayes and one present. The committee then moved to public hearing on House Bill 1741, which would create procedures for non-consensual towing of commercial vehicles, including a towing and recovery review board, limits on storage charges while disputes are pending, restrictions on liens, access requirements, and penalties for violations. Representative Griffith said the bill is aimed at protecting independent truckers from excessive towing charges while still allowing emergency road clearance. Members raised concerns about the scope of the bill, the lack of a dispute timeline, the proposed $25,000 penalty, the ban on per-pound billing, and whether the bill could interfere with emergency towing or create litigation involving the state. Supporters, including representatives from trucking groups, described large and sometimes excessive tow bills, argued that small owner-operators can be bankrupted by these costs, and said Missouri lacks a meaningful complaint process. Opponents from towing associations said the bill, as written, could prevent non-consensual commercial tows because towers need a lien or other leverage to get paid, especially when vehicles or cargo are abandoned or out of state. They also argued that emergency recoveries are dangerous, expensive, and highly variable, and that the bill should be narrowed and clarified. The sponsor and witnesses on both sides indicated a willingness to keep working on amendments, and no final action was taken on House Bill 1741 during the hearing.

Transcript Highlights:

• That was a smart move from me to say, but I like where you're going.

Committee: House Transportation

Keywords: 959, house, all

Transcript Highlights:

• But nevertheless, it did a series of smart things, some of which California has done, some of which it

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:

• But nevertheless, it did a series of smart things, some of which California has done, some of which it

Keywords: 988, house, all

Transcript Highlights:

• But nevertheless, it did a series of smart things, some of which California has done, some of which it

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.

Transcript Highlights:

• But nevertheless, it did a series of smart things, some of which California has done, some of which it

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• this big giveaway and I take you to your point about parental choice and parental choice is great as smart

Bills: HB2352 , HB2388 , HB2418 , HB2499 , HB2500 , HB2579 , HB2584 , HB2804

Committee: House Appropriations

Keywords: funding, auditor general, county treasurer, procedural reviews, state appropriations, HB2388, Arizona Commerce Authority, ACA, small modular reactor, SMR, nuclear energy, advanced nuclear, data center, data centers, economic development, study, appropriation, general fund, jobs, wages

Transcript Highlights:

• Smart investment of local, state, and federal resources is our goal.

Committee: House Budget

Keywords: 959, house, all

Transcript Highlights:

• Smart investment of local, state, and federal resources is our goal.

Committee: House Budget

Summary: The committee heard the Missouri Department of Health and Senior Services present its FY 2027 budget request, with Director Sarah Wilson and budget staff describing the department’s mission, major divisions, and the impact of federal funding shifts, especially the FMAP change that will shift costs to general revenue. Wilson emphasized prevention, public health infrastructure, workforce capacity, and data modernization, while several members praised the department’s responsiveness and cost-cutting efforts. The discussion repeatedly focused on lapses, excess authority, and the department’s stated practice of spending federal and other funds before general revenue where possible. Members asked detailed questions about local public health agency support, nutrition programs, rural health and primary care, newborn screening, the state public health lab, and the department’s use of flexibility and reallocations. There was extended discussion of substance use disorder funding: the department explained that some funding is being reduced in its own budget because transfer authority is being added for the Department of Mental Health and the Department of Corrections, while some other SUD-related lines are actual reductions. Members also questioned tobacco prevention and cessation cuts, maternal and infant health programs, fetal infant mortality review, and minority health initiatives, with staff explaining program purposes and noting that some reductions were tied to excess authority or to moving programs to other departments. The committee also reviewed specific operational items such as the Health Initiatives Fund transfer, debt offset escrow for loan repayment defaults, donated funds authority, emergency preparedness, environmental health, health informatics, HIV/STI/hepatitis services, local public health incentives, and the COVID/ARPA authority reductions. Several members requested follow-up information on vacancies, lapse trends, grant spending plans, and program details. No final vote or formal action was taken in the portion provided; the chair recessed briefly and the hearing continued with additional budget testimony.