Transcript Highlights:

• As one of the senior leaders, along with the CFO, we didn't have a CEO at the time.

Summary: The Committee on Director Nominations met with four members present and approved the prior minutes without objection. Chair Jay Kaufman outlined the committee’s role in reviewing executive nominations and explained the hearing process for three nominees: Mary Foote for the Office of Economic Opportunity, Debbie Johnston for the Department of Health Services, and Chuck Bassett. Foote did not appear for her hearing, and members discussed her absence and alleged omissions in her disclosure materials, including prior service with Planned Parenthood-related organizations. The committee then moved to reject her nomination, and the motion passed 3-2, recommending that the full Senate reject Mary Foote. Debbie Johnston, nominee to lead the Department of Health Services, appeared and gave an opening statement describing her Arizona background, prior Senate staff work, and more than 20 years with the Arizona Hospital and Health Care Association. She said her priorities at ADHS include rebuilding trust in public health licensing, improving stakeholder engagement, standardizing rulemaking communication, addressing alleged religious discrimination and retaliation concerns in licensing, and using technology and AI to improve efficiency. In questioning, senators pressed her on her management style, conflict-of-interest safeguards given her prior industry role, enforcement priorities, budget pressures, behavioral health and assisted living oversight, and the department’s response to COVID-19. Johnston said she would follow statutes, recuse herself from enforcement matters involving former contacts, and resign if directed to carry out an unlawful policy. She also said the department does not regulate therapy itself, only facilities, and that it would rely on legal counsel regarding the governor’s conversion-therapy executive order and related federal civil-rights allegations. Several senators focused on public health trust and the department’s pandemic response, with Johnston acknowledging concerns about closures, data collection, and communication during COVID-19 while saying she would review past after-action materials and be better prepared in the future. Public testimony from stakeholders in aging services and health care strongly supported her confirmation, praising her accessibility, responsiveness, and collaborative approach. After testimony, the vice chair moved to recommend Johnston’s confirmation to the full Senate. The roll call was underway when the transcript ended, with several members voting aye and one member expressing reservations about her not reviewing the pandemic after-action report before another crisis occurs.

Transcript Highlights:

• And so we were heading into legislative sessions as one of the senior leaders, along with the CFO.

Committee: Senate Director Nominations

Transcript Highlights:

• I'm the CFO for the Department of General Services.

Summary: The subcommittee heard May Revision proposals from the Department of Food and Agriculture, the Government Operations Agency, the Department of Technology, and the Franchise Tax Board, with public comment to come later and all items held open. CDFA presented funding for the animal care program implementing Proposition 12, including a one-time $5.2 million General Fund transfer to the Ag Fund and $2.8 million ongoing, and the LAO recommended approval while noting the Legislature should revisit the funding once litigation and federal preemption questions are resolved. CDFA also proposed ending state oversight of industrial hemp and moving to the federal USDA program by January 1, 2028, with an $8.3 million General Fund transfer to cover startup and transition costs; the LAO supported the transition. Additional CDFA items included $204,000 ongoing and one position to preserve agricultural statistics reporting after USDA reorganization, and trailer bill changes to clarify the department’s 5% indirect cost cap; both drew no objections from Finance or LAO. The Government Operations Agency and Cradle to Career items focused on implementing the new federal Workforce Pell program. Finance described trailer bill language establishing state eligibility processes, with the California Student Aid Commission as the authorizing entity in consultation with the Workforce Development Board, and proposed $1.3 million one-time General Fund for Cradle to Career to build data linkages. The LAO urged caution because federal rules were just finalized and said more information was needed on workload, costs, and whether existing data systems could support the work. Senators raised policy concerns about limiting the program to public institutions and about aligning the proposal with broader workforce and labor goals. The committee also briefly discussed SB 53/Cal Compute, with GovOps saying no appropriation had been provided for its consortium work, and Finance saying the administration was not proposing funding at this time. The Department of Technology presented a $30 million operational backstop for the Middle Mile Broadband Initiative, intended to cover any shortfall if expected revenues from the Golden State Net third-party administrator do not materialize in time. The LAO initially recommended rejection over broad spending authority, then suggested amendments with stronger reporting and legislative review; committee members questioned the revenue assumptions, oversight, and whether the request could recur. CDT also sought $1 million for Poppy, the state’s GenAI digital assistant, to expand secure statewide use; the LAO had no concerns, and members asked about data security, model bias, training restrictions, and possible local-government use. Finally, FTB proposed realigning CalFile resources after the federal Direct File program was discontinued, retaining three ongoing positions and returning the rest of the funding and positions to the General Fund; the LAO said the reduced scope was reasonable, and members discussed keeping the free filing system user-friendly and ready for future federal changes. The committee also heard the administration’s digital pre-written software tax proposal, which would extend sales tax to electronically delivered software and SaaS beginning January 1, 2027, generating an estimated $450 million General Fund in 2026-27 and $900 million ongoing, plus local revenue. The LAO supported modernizing the tax base but recommended broadening the proposal to include more digital products while considering a business-use exemption or reduced rate, and flagged a newly added video game exemption as a revenue downside. Senators generally supported the goal of raising revenue and aligning California with other states, but questioned the local revenue distribution and equity effects, and one senator said they would not support expanding the tax to books, music streaming, and similar consumer products. All items were left open without votes.

Transcript Highlights:

• I am Stacey Donnelly, and I professionally am a CFO of Condominium Financial Management in Walnut Creek

Summary: The Assembly Housing and Community Development Committee heard a long agenda of housing-related bills, beginning with AB 1892 on HOA/Davis-Stirling Act cleanup provisions. The author and sponsor said the bill would clarify HOA responsibilities for utility service repairs in common areas, align election notice timelines, and require electronic voting ballots to be sent at least 30 days before an election. No opposition was presented, and the bill was set aside to be taken up later when a quorum was available. The committee then heard AB 1708, which would revise the Homeless Housing, Assistance and Prevention (HHAP) program to give smaller cities a clearer role in regional homelessness planning and access to funding. Mayors and city representatives from Bellflower, Paramount, and other cities testified that smaller jurisdictions are spending significant local funds on shelters and services but lack direct access to HHAP dollars. Some larger-city and housing advocates opposed or were opposed unless amended, arguing the bill could add administrative burden, but committee members broadly supported the goal of including smaller cities in regional responses. Members also heard AB 2058 on factory-built housing, AB 2576 on historic-resource protections under SB 79, AB 1751 on missing-middle townhomes, AB 1924 on homelessness prevention, AB 2626 on waiving certain monitoring fees for at-risk affordable housing developments, and AB 2089 on welfare-exemption and recertification procedures for affordable housing. Testimony generally emphasized reducing duplicative local permitting for factory-built housing, protecting state and national historic resources while still allowing housing near transit, expanding ministerial approval for townhomes, creating a statewide homelessness-prevention strategy with accountability measures, giving HCD flexibility to waive fees to preserve financially stressed affordable housing, and streamlining property-tax exemption recertification. Several bills were voted out of committee, including AB 1751 and AB 2626, both passing on 8-0 and 7-0 votes respectively, while other measures were discussed with motions pending or held open for absent members.

Transcript Highlights:

• I am Stacey Donnelly, and I professionally am a CFO of Condominium Financial Management in Walnut Creek

Committee: House Housing and Community Development

Transcript Highlights:

• we're trying to do is to ensure that those elected officials that worked, let's say, for a teacher or a CFO

Committee: House House Appropriations Committee of Reference

Summary: The committee first took up a discussion-only strike-everything amendment to HB 2211, which would make it unprofessional conduct for certain health care providers to submit offers in independent dispute resolution above 300% of Medicare or the qualified payment amount. The chair said he was not ready to move the bill because more stakeholder meetings were needed. Testimony split between insurers, who said a small number of providers were abusing the No Surprises Act and driving up costs, and provider representatives, who argued the proposal would improperly cap rates, relied on opaque insurer-set QPAs, and could threaten licensure in a billing dispute. No vote was taken on HB 2211. The committee then considered HB 4028 on accessory dwelling units. The bill would remove the 1,000-square-foot cap, change setback rules, bar municipalities from requiring an administrative use permit and certain elevation criteria, and extend the deadline for cities to adopt ADU regulations. The sponsor argued it would give homeowners more flexibility and help address housing affordability, while cities, neighborhood groups, and residents warned it would allow oversized ADUs, reduce local control, create density and safety concerns, and invite investor-driven development. After extensive debate, the committee voted 8-9 with one present, and HB 4028 failed. Next, the committee heard HB 2620, as amended, which appropriates $300,000 annually for five years from the General Fund to the Department of Veterans’ Services for grants to emergency shelters. An amendment removed age and non-congregate-setting conditions for eligibility. The sponsor and a shelter provider said the funding would help shelters better serve homeless veterans and connect them to services. The committee adopted the amendment and then passed HB 2620 on a 17-0 vote with one member not voting. The committee then considered HB 2960, as amended, which creates a veterans specialty court grant program and a dedicated fund to support local veterans treatment courts. An amendment shifted administration of the fund to the Office of the Courts and allowed support for expansion of existing programs. The sponsor, a Lake Havasu judge, and a veteran graduate testified that veterans courts reduce recidivism and save lives by linking veterans to treatment and support. The bill was still being taken up when the transcript ended, with testimony continuing from supporters including a veterans shelter founder.

Transcript Highlights:

• But also being in the capacity of working for cities, towns, or school districts myself, my job as a CFO

Committee: Joint Joint Legislative Audit Committee

Summary: The committee first heard a follow-up on the Arizona State Board of Chiropractic Examiners special audit. The Auditor General’s contractor reported that the board has made progress on most of the 28 recommendations from the 2024 audit, with 25 in process and three not yet implemented. Remaining concerns included complaint investigations not being resolved within 180 days, continued open meeting law compliance problems, and failure to consult the Attorney General’s open meeting law experts. The follow-up also identified new issues with posting disciplinary/non-disciplinary actions and maintaining a complete public records request log. Board staff said they had adopted new complaint timelines, subpoena limits, conflict-of-interest procedures, public meeting guidance, training, and a new licensing platform, and they described efforts to professionalize investigations and improve transparency. Members pressed the board on open meeting violations, complaint backlogs, lobbying activity, and the resignation of the board chair, while the executive director said the audit findings were being treated as a roadmap for reform. The committee then received the January 2026 Arizona school district financial risk analysis. The Auditor General’s office said the number of highest-risk districts rose from two to nine, and districts approaching highest risk increased from seven to nine. The report highlighted common risk factors such as declining student counts, budget reserve problems, use of capital funds for operations, and weakening general fund positions. Tucson Unified was used as an example of a highest-risk district, with declining enrollment, reserve declines, and capital funds redirected to operations; Scottsdale Unified was cited as approaching highest risk. The office explained its web-based dashboard, district action plans, and ongoing outreach to affected districts. Sierra Vista Unified School District superintendent Terry Romo then presented the district’s response to its financial risk designation. She said she inherited the problems, quickly developed an action plan, and is working to stabilize enrollment, reduce staffing through attrition, close an elementary school, freeze nonessential spending, tighten purchase controls, and renegotiate or cancel high-cost contracts. She also said the district is redirecting DAA funds, considering sale or lease of property, and improving communication with families through letters, videos, and enrollment outreach. Committee members questioned the district about declining enrollment, school safety, academic performance, and the pace of corrective action, while Romo emphasized that the district is trying to protect both students and finances and avoid returning to the high-risk list.

Transcript Highlights:

• My job as a CFO or director of the agency or the local agency was to make sure my board members were

Committee: Joint Joint Legislative Audit Committee

Transcript Highlights:

• Hannah Christian, CFO Blazing Goalya, waving in support. Anthony, you go. Golia waving in support.

Summary: The subcommittee first took up HB 387 on ADS-B airport billing. The sponsor and supporters said the bill would stop airports and third-party vendors from using federally required automatic dependent surveillance broadcast data to calculate landing or touch-and-go fees, arguing the technology was intended for safety and collision avoidance, not invoicing. An amendment clarifying touch-and-go landings and other fee calculations was adopted, and the bill was reported favorably 15-0. Members then heard several local and policy bills. CS/HB 803 on private-provider building permits and inspections drew broad support from industry groups and was reported favorably 14-1. HB 451 and HB 4053, local fire-district assessment bills, were presented as relief for homeowners and churches facing higher non-ad valorem assessments; both were reported favorably after amendments, with testimony emphasizing impacts on houses of worship and local communities. PCS/HB 1329 on local government spending transparency prompted extensive debate over searchable budget formats, posting requirements, and possible unfunded mandates; supporters framed it as taxpayer access and accountability, while opponents argued many local governments already provide this information and that the bill could impose costs. It was reported favorably 8-4. The committee also advanced PCS/HB 927 on local land planning and development, which would allow qualified professionals to assist with pre-application reviews; local government representatives raised concerns about preemption and environmental restrictions, but the bill was reported favorably 13-2. HB 929 on chickee huts, PCS/HB 4081 on expanding a local water and sewer district by referendum, and HB 489 conveying the Trenton Train Depot to the city and county all passed unanimously or near-unanimously. HB 1211, a Department of Military Affairs bill updating leave and assistance-program provisions, was amended and reported favorably. HB 1041, creating business incentives for veteran- and military spouse-owned businesses, also passed 13-0 after amendment and supportive testimony from members and veterans. The final item shown was HB 1001, a bill restricting county and municipal DEI-related actions and contracting; the sponsor described it as a response to division and waste, and members began questioning its definitions, scope, and potential effects on training and civil actions, but the transcript cuts off before any vote or final action on that bill.

Transcript Highlights:

• . >> Tribun is our CFO. >> Okay, no problem. And what's your name?

Committee: Joint Appropriations

Transcript Highlights:

• When the commissioners and I put together the budget, and I'm sorry, I should have recognized our CFO

Committee: Senate Senate Finance

Transcript Highlights:

• In addition to LOFT, the state CFO, and a consultant hired by the governor we helped identify the agency's

Committee: House A&B General Government Subcommittee

Transcript Highlights:

• Patrick Lubering, current CFO for the Department of Social Services, said he would be in that role for

Committee: House Budget

Transcript Highlights:

• lawsuit at this point in time, and I think the bill for the first lawsuit, I'd have to work with our CFO

Bills: HB4 , HB20

Committees: Senate Education , Senate Education K-16

Keywords: district composition, congressional election, Texas, legislature, voting districts, fraudulent solicitation, disaster relief, nonprofit organizations, criminal penalties, consumer protection, fraud prevention, charitable donations

Summary: The committee first took up House Bill 2853, which would allow the UT System Board of Regents to adjust the University of Texas at El Paso student union fee above the current statutory cap, subject to student approval, to help fund a new student union building. Senator Blanco explained the bill and the committee substitute, there were no questions or witnesses, public testimony was closed, and the committee adopted the substitute and left the bill pending subject to the call of the chair. The committee then heard House Bill 610, which would limit severance payments for terminated independent school district superintendents to six months’ salary and benefits. Senator Paxton described large severance payouts and said the bill had passed the House overwhelmingly. There were no witnesses, public testimony was closed, and the bill was left pending. A lengthy hearing followed on House Bill 4623, which would waive school district immunity in certain cases involving negligent hiring, supervision, or employment of professional school employees who commit abuse or related misconduct against students. Senator Paxton and several witnesses, including survivors and parents, argued the bill was needed to address cover-ups, delayed reporting, and repeated failures to remove dangerous employees; some members raised concerns about liability caps, litigation, and how the bill would interact with the Tort Claims Act. The committee also heard from TEA staff and employee-group witnesses who discussed possible injunctions and stronger no-hire protections. Public testimony was then closed and the bill was left pending. Finally, the committee heard House Bill 4, an accountability and assessment bill that would restore A-F ratings, change the state testing system, and replace STAAR with shorter, more instructionally useful assessments. Senator Bettencourt explained the committee substitute, including annual ratings, limits on taxpayer-funded lawsuits, and a phased-in testing redesign with beginning, middle, and end-of-year assessments. Testimony was generally supportive from education and business groups, though some witnesses favored norm-referenced testing while others emphasized criterion-referenced, TEKS-aligned assessments; one witness noted social studies assessments were restored in the bill. The hearing concluded with additional invited testimony and no final vote reported in the transcript.

Transcript Highlights:

• I'm Jason Mallet, CFO of the CDTFA.

Transcript Highlights:

• CFO Bill Seiber at the University also has been really key to this, but as we said, the challenge with

Committee: Senate Higher Education

Transcript Highlights:

• have to play And one of the things that is just a reality of higher education and state agencies, CFOs

Committee: House Higher Education

Transcript Highlights:

• start, of course, by thanking my team who are here today: my Deputy Secretary, Marcos Martinez; my CFO

Committee: House House Appropriations & Finance

Transcript Highlights:

• Chairman, I would have to—I don't see your CFO here, so that's not a huge issue if you don't have that
• to I<00:15:48.160><c> don't</c><00:15:48.360><c> see</c><00:15:48.480><c> your</c><00:15:48.600><c> CFO
• </c><00:15:49.160><c> here</c><00:15:49.400><c> so</c><00:15:49.640><c> that's</c> I don't see your CFO
• here so that's I don't see your CFO here so that's not<00:15:51.680><c> a</c><00:15:51.760><c> huge<

Committee: Joint Transportation, Highways & Military Affairs

Transcript Highlights:

• And I guess I'm a CFO. My numbers guy.
• And I guess I'm<02:00:30.000><c> a</c><02:00:30.239><c> CFO.
• </c><02:00:31.840><c> So</c><02:00:31.920><c> when</c> I'm a CFO. My I'm a numbers guy.
• So when I'm a CFO. My I'm a numbers guy.