Transcript Highlights:

• As amended, SB 347 will reduce the state annual tax from $800 to...
• SB 347 will reduce the state annual tax from $800 to $600 for every LLC, LLP, limited partnership, S
• Currently, under state law, California imposes an annual tax of $800 on all businesses, is... ...to all
• Paying such a high annual rate creates a financial burden for family-owned and small businesses who can
• To hear that veterans are leaving the state is not acceptable.

Committee: Senate Revenue and Taxation

Summary: The committee heard several tax and local revenue measures. SB 288, by Senator Seyarto, would clarify that for inherited homes going through probate, the Proposition 19 one-year deadline to move in and claim the homeowner exemption begins when the property is legally declared to belong to the heir, rather than during probate. The author accepted committee amendments; Howard Jarvis Taxpayers Association supported the bill, and it passed 4-0 to Appropriations. SB 347, by Senator Choi, would reduce the state annual minimum tax from $800 to $600 for LLCs, LLPs, limited partnerships, S corporations, and C corporations. The bill was supported as a small-business tax reduction and passed 5-0 to Appropriations. The committee also considered two veterans property tax measures. SCA 4, by Senator Archuleta, would allow eligible veterans to stack the homeowners exemption with the veterans’ or disabled veterans’ exemption and remove outdated property-value limits in the constitutional veterans’ exemption. Testimony from veteran advocates and the Howard Jarvis Taxpayers Association supported the measure, and it was adopted 5-0 and referred to the Committee on Elections and Constitutional Amendments. SB 623, the companion statutory bill, would make conforming changes to implement SCA 4; it also drew support from veterans’ groups, the County of San Diego, and Howard Jarvis Taxpayers Association, and passed 5-0 to the Committee on Military and Veterans Affairs. SB 762, by Senator Archuleta, would authorize the city of Hercules to place before voters a local sales tax increase of up to 1% to help fund public safety, parks, infrastructure, and other services. Supporters described it as a narrowly tailored local control measure, while the committee noted it would let residents decide whether to tax themselves. The bill passed 4-1 to Local Government. SB 575 by Senator Laird was taken up on the consent calendar, the committee adopted technical amendments, and the consent calendar passed 5-0. The meeting then adjourned after all business was concluded.

Transcript Highlights:

• We'll be tracking the annual turnover rate and exit-reason trends.
• From fiscal years 2022 to 2025, DOH annually spent between $321,000 and $527,000 for oversight.
• So statute directs DOH to set annual fees to cover its oversight costs.
• So statute directs DOH to set annual fees to cover its oversight costs.
• Since 2022, annual fee revenue has not covered DOH's expenses.

Summary: The Joint Legislative Audit and Review Committee met on January 7, 2026, approved the December minutes, and adopted an amended work plan. Staff proposed moving the drug takeback program sunset review up to 2026 and delaying the thermal energy network pilot review to 2028, which would free capacity for new studies. Members also noted bills that would eliminate two recurring JLARC reports, including one on unemployment insurance training benefits and one on lodging tax revenue reporting. The committee then discussed JLARC’s own performance measures and a pilot approach for evaluating tax preference performance statements in fiscal notes. Staff said JLARC will begin surveying members and the full legislature on satisfaction, track invitations to present to other committees, monitor recommendation resolution rates, staff retention, on-time report delivery, peer review results, and national recognition. For tax preference reviews, staff proposed a standard rubric to assess whether performance metrics match policy goals, are measurable, use reliable data, and allow enough time for evaluation; members generally supported the effort. Staff also outlined planned changes to public records reporting, including allowing agencies to opt out of tracking low-volume metrics, targeted outreach to nonreporting agencies, better data validation, clearer online guidance, and a survey of public records officers. The main audit presentation was a preliminary report on ignition interlock device compliance and monitoring. JLARC found that about 41% of drivers required to install devices had done so, with installation rates rising sharply with income; half of affected drivers earned less than $28,000 a year, and the typical annual device cost was about $2,700. Staff said the state’s financial assistance program has limited reach and lacks clear goals, performance measures, and coordination between the Department of Licensing and State Patrol. They recommended that the agencies formalize their roles and develop a coordinated strategy to improve installation rates. State Patrol and Licensing said they support the findings, described recent outreach pilots, and said they would work on a management plan and possible expansion of outreach efforts. JLARC also presented an expedited preliminary report on the drug take-back program’s fee setting and expenditures. Staff concluded that the current fee design limits the Department of Health’s ability to recover oversight costs and that public reporting of oversight expenditures would improve transparency. They recommended that DOH publicly report its oversight activities and that the legislature amend the fee structure to remove the cap tied to program operator expenditures. DOH agreed the current structure does not fully recover costs and said it would support a statutory change. The committee adjourned after noting its next regular meeting is scheduled for April 8, 2026.

Transcript Highlights:

• As you know, the department publishes this report annually.
• And what it is You know, the department publishes this report annually.
• One, provide an annual accounting of hate activity in California.
• Leave laws could be expanded to meet the needs of more victims by ensuring job-protected leave is available
• And that's the story I want to leave you with, because that's the hopeful half.

Summary: The committee on Hate, Racism, and Xenophobia met to review California hate-crime trends and hear from state agencies and community organizations about current impacts and policy responses. The California Department of Justice reported that 2025 hate-crime events declined modestly from 2024 but remained historically elevated, with race and ethnicity still the largest category, anti-Black bias the most frequently reported, and notable increases in anti-Hispanic/Latino and citizenship/immigration-status bias. The California Commission on the State of Hate said its research and victimization studies show hate is broader than official crime data alone, with millions of Californians experiencing hate incidents and many victims needing services beyond law enforcement, including mental health care, legal help, and workplace protections. The commission also emphasized online radicalization, the need for better data infrastructure, and stronger training and support systems. Members then heard from the NAACP, LULAC, Jewish California, CHIRLA, Asian Americans Advancing Justice, CAIR California, and Equality California. Testimony described fear, underreporting, and the effects of rhetoric, federal policy changes, and online misinformation on Black, Latino, Jewish, immigrant, Asian American, Muslim, and LGBTQ+ communities. Witnesses urged sustained funding for Stop the Hate and nonprofit security grants, stronger language access, civic education, and community-based reporting and victim services. Several groups also called for specific legislation, including measures on racial profiling, immigration detention oversight, Jewish ethnicity recognition, safe worship zones, anti-Muslim hate prevention, and LGBTQ+ data privacy and health protections. Committee discussion focused on the conditions that fuel hate, especially political polarization, social media radicalization, and the role of public figures and institutions in normalizing dehumanizing language. Members and witnesses discussed the limits of current data, the need for long-term research and prevention strategies, and the importance of solidarity across communities. No formal votes or final committee actions were taken in the transcript, though members referenced existing and pending bills and ongoing efforts to expand training, funding, and anti-hate infrastructure.

Transcript Highlights:

• Did she leave you speechless, Senator Sharer?
• Did she leave you speechless, Senator Sharer?
• And finally, Madam Chair, it requires annual reporting.
• It requires one annual report a year.
• It requires one annual report a year.

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

Committee: Senate Senate Tax, Business & Transportation

Keywords: horse racing, program training, program owning, state licensing, racehorses, regulation, local news, newspaper printing, journalism, media tax credit, print media, digital news, news publisher, newsprint, press operator, printing industry, local journalism, tax credit, income tax, corporate income tax

Transcript Highlights:

• The total cost of the governor shift is nearly $3.2 million annually for Clay County, and that cost is
• </c> shift is nearly $3.2 million annually shift is nearly $3.2 million annually for<00:04:19.919><c>
• However, the governor's current budget proposal, which includes tax shifts of over $800,000 annually
• to Carlton County $800,000 annually to Carlton County alone<00:14:57.839><c> will</c><00:14:58.040><
• Paid family and medical leave is expected to total around $200,000 if using the 50/50 split.

Transcript Highlights:

• has annually adjusted the grant amounts by a cost-of-living adjustment, a COLA.
• A couple eighth graders leave us.
• I only have nine of my 11 states border another state, and they're leaving the state, and they're leaving
• We have an annual item that we prepare for the State Allocation Board to indicate the annual self-reporting
• an annual basis in some cases.

Transcript Highlights:

• I always leave out one word. All right. Let's go to any other sponsors here?
• Lastly, the bill requires ADE to annually compile and post on its website an annual report that includes
• He also received an annual performance pay of over $72,000 and 50 days...
• He also received an annual performance pay of over $72,000 and 50 days of personal leave and vacation
• And once they did understand it, that superintendent was put on leave.

Committee: Senate Senate Education Committee of Reference

Summary: The committee heard and advanced several education-related bills. HB 2395 would create a voluntary Arizona School Fitness Program in ADE to recognize schools that participate in nationally recognized fitness testing, allow schools to note the designation on report cards, and direct ADE to issue guidelines and best practices. Supporters argued it would encourage student activity and improve health and achievement without penalties; it passed with a due pass recommendation on a 6-0 vote, with two members not voting. HB 2409, the Getting Arizona Ready for AI Act, would create an Arizona Artificial Intelligence Program in ADE to offer voluntary summer AI courses around the state, including digital hygiene/civic integrity and small-business/entrepreneurship components, with optional facility use and possible academic credit. The sponsor said the bill was meant to prepare students for AI-driven job disruption while keeping the program voluntary and low-cost. It passed 4-2 with one not voting. HB 2203 would require ADE to review school and agency reporting requirements, identify duplicative or obsolete reports, and recommend consolidation or repeal; a technical amendment was adopted and the bill passed unanimously by those voting. HB 2008 would bar school libraries from using public funds to pay professional associations for libraries and librarians; opponents called it unnecessary and constitutionally problematic, while supporters framed it as limiting public spending. It passed 4-2 with one not voting. The committee also heard HB 2075, which would require school districts to submit superintendent and CFO contracts to ADE, post them online, and maintain a searchable database and annual compensation report. Supporters said it would improve transparency and prevent excessive or hidden compensation, while opponents argued it unfairly targeted district schools and should, if anything, apply to all publicly funded schools. After extended debate over transparency and comparisons to charter schools and ESAs, the bill received a due pass recommendation on a 4-2 vote with one not voting.

Transcript Highlights:

• We've increased the maximum number of children served annually from 294,000 at the very beginning to
• We now serve more than 3,500 children annually.
• They rate you every five years, and then they do annual monitoring.
• And I am speaking on behalf of our member, Monica Andrade, who had to leave to catch a flight.
• No matter what, I have to leave in 15 minutes.

Transcript Highlights:

• Members, SB 409 is the Louisiana Living Donor Leave Protection Act.
• I want to be clear that this is not an open-ended leave mandate.
• the leave runs concurrently with any unpaid FMLA leave for employees who are eligible.
• The bill also makes it clear that this paid leave is in addition to accrued sick, annual, or military
• leave, but it has no cash value.

Summary: The House Labor and Industrial Relations Committee met on May 7, 2026, and first deferred several measures, including House Bill 460, Senate Bill 322, Senate Bill 32, Senate Bill 22, and House Bill 561. The committee then took up House Bill 819 by Chairman Cruz, which would replace Louisiana’s current workers’ compensation medical treatment schedule with the Official Disability Guidelines (ODG) by MCG as the primary guideline, while keeping the existing variance and appeal process. Cruz and MCG representative Troy Prevo argued that ODG is more comprehensive, updated more frequently, and used in many states, and said it could reduce delays, disability duration, and costs. Dr. Jason Picard, the state medical director, testified that Louisiana already uses ODG as a secondary reference in many cases because the state schedule lacks coverage for some body parts and treatments, and said the bill would not otherwise change the appeals process or care delivery. Committee members focused heavily on whether the bill would delay care or improve it. Several members questioned the private-company nature of ODG, the $400 annual subscription cost, and whether Louisiana doctors would be forced to rely on an out-of-state guideline. Rep. Glorioso and others raised concerns about preauthorization delays and proposed amendments to create tacit approval when treatment follows the schedule, require payment within 30 days, and make the carrier prove by clear and convincing evidence that care was not medically necessary to challenge it. Chairman Cruz said he was willing to work with those ideas, and the committee also discussed adding an on-ramp or legacy language so current patients would not be disrupted. Opposition testimony came from injured-worker advocates and representatives of medical and labor groups, including Joseph Jola St. and Robin Krumholt. They argued that Louisiana’s current guidelines are already working, that rates have fallen over time, and that the real problem is delay in approval rather than the content of the schedule. They said ODG is overly rigid, cost-driven, and can lead to denials that shift costs to workers, Medicaid, or private health insurance. They urged the committee to keep Louisiana’s existing system and instead adopt tacit approval under current law. The bill was still under discussion at the close of the transcript, with amendments being read and no final vote shown.

Transcript Highlights:

• :14.480><c> provides</c> and parenting leave uh provides and parenting leave uh provides employees<00
• It also covers of unpaid leave.
• , kind of interacts with paid leave.
• medical leave and that the amount of uh medical leave and that the amount of uh teachers<01:13:20.080
• </c> is um specific to unpaid leave. is um specific to unpaid leave.

Bills: HF3707 , HF3732 , HF2581 , HF3731

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

Summary: The committee first adopted the minutes from February 26 and then heard House File 2581, authored by Representative Frazier, which sought $1 million for Fortis Capital, a nonprofit economic development lender. Frazier and Fortis CEO Brian Smith described Fortis as a gap-financing lender that helps underserved entrepreneurs who cannot meet traditional bank underwriting standards. They said the organization has made 37 loans totaling more than $4 million since 2021, leveraged another $29.5 million, and created 314 jobs. Smith said Fortis typically charges around 6.5% interest, has had two defaults, and uses a revolving loan fund model that recycles repayments; members discussed how the proposal fits with other state economic development programs and whether Fortis should instead be part of a competitive grant process. The chair laid HF 2581 over for possible inclusion in a budget bill. The committee then heard House File 3707, brought by Representative Berg, which would extend confidentiality protections to unemployment insurance and paid leave judges and related staff by adding them to the definition of judges for purposes of protecting personal information. Berg and testifiers from the Department of Economic Development and MAPE said the bill responds to harassment and safety concerns, including threats, doxxing, and an attack near an office, and is intended to protect people making sensitive determinations. MAPE supported the bill as an update to existing protections for similar workers. Members raised concerns that the bill’s language was too broad, especially the reference to the paid leave division, and questioned whether it should cover only judges or also call-center and other staff. Department and committee members agreed the language likely needed narrowing and discussed possible amendments and whether to move the bill to Judiciary and then revisit it. No final vote was taken on HF 3707 during the discussion, and the bill remained under consideration for further language work.

Transcript Highlights:

• The annual total surcharge was brought in 138.8 million.
• The PCG estimated annual fee is $2 million.
• I mean, there’s a reason they’re leaving.
• I mean, there’s a reason they’re leaving.
• We need to leave time for others.

Bills: HB99 , HJR5 , HM39 , HB206 , HB213 , SB41 , SB153 , SB165 , SB261 , SB264

Committee: Senate House Judiciary

Summary: The committee first took up a lengthy informational presentation on the Patient Compensation Fund (PCF) and New Mexico medical malpractice insurance. Teresa Hassey, a plaintiffs’ attorney, described the PCF’s origin in the 1976 Medical Malpractice Act, its role as a state-backed excess coverage system, and her view that it was mismanaged when hospital participation expanded without individualized risk assessments. She argued that hospitals underpaid surcharges, that the fund was depleted by claims, and that the 2021 amendments and later legislative infusions were meant to shore up deficits and phase hospitals out. Superintendent of Insurance Alice Kane and LFC analyst Julia Rodriguez presented a different perspective, emphasizing recent general fund infusions, current surcharge collections, the use of actuarial reviews, and the PCF’s budget and settlement activity. Kane said the market is highly concentrated, New Mexico’s malpractice costs and defense expenses are high, and the fund still provides lower-cost coverage than the open market, while also noting ongoing issues with future medical claims, TPA transition, and investment management. Committee members questioned the presenters at length about why New Mexico malpractice premiums are so high, whether defense costs were being conflated with claim payouts, how the PCF works with primary coverage and excess coverage, and whether hospitals were properly assessed when they entered the fund. Several senators raised concerns about punitive damages, corporate practice of medicine, and whether the state’s legal environment is driving doctors away. Others challenged the data comparisons, noting differences between one-year figures and multi-year averages, and asked why New Mexico’s costs remain far above neighboring states. Kane and Hassey disagreed on the causes, with Kane pointing to high claims and defense costs over time and Hassey arguing that hospital participation and punitive-damage exposure distorted the market. The chair concluded the discussion by saying the committee had not exhausted the topic and that he still wanted a clear path to reducing doctors’ insurance costs. After a break, the committee moved on to Senate Bill 41. Senator Charlie introduced the bill, which would eliminate the statute of limitations for the most serious sexual crimes in New Mexico. He argued that trauma, coercion, fear, and delayed disclosure often prevent survivors from reporting promptly, and said the law should reflect that reality. The bill was presented as a response to survivor testimony heard in a prior hearing, and the sponsor framed it as part of a broader effort to modernize the justice system for sexual violence cases.

Transcript Highlights:

• Mercy for legislation to establish a sick leave bank for Courtney Cochran, an employee of the Department
• Mercy for legislation to establish a sick leave bank for Courtney Cochran and employee of the Department
• Salem to convert seasonal licenses for the sale of alcoholic beverages to be drunk on the premises to annual
• Salem to convert seasonal licenses for the sale of alcoholic beverages to be drunk on the premises to annual
• Salem to convert seasonal licenses for the sale of alcoholic beverages to be drunk on the premises to annual

Summary: The House opened with the Pledge of Allegiance and then took up several Committee on Rules reports. It adopted resolutions congratulating Auburn on the 100th anniversary of the first liquid-fueled rocket launch and welcoming Boston’s new National Women’s Soccer League team, the Boston Legacy. The House also adopted orders extending the reporting deadlines for the Committee on Revenue on certain House documents into 2026. The chamber then suspended joint rules to allow several petitions to be referred to committees, including a proposal to regulate social media accounts for children under 16, a sick leave bank for a Department of Children and Families employee, creditable service for a probation employee, taxation of certain foreign government pension benefits, and a bill naming the American Lobster the official crustacean of the Commonwealth. The Steering, Policy and Scheduling Committee reported a slate of bills for House consideration, including measures on private road maintenance in Gloucester, property valuation and tax assessment fairness, municipal tax collectors, historic resources in community preservation funds, and Salem alcohol license changes; the House suspended Rule 7A and ordered these bills to a third reading. The House then passed to be enacted several local bills, including legislation for Revere, Wellesley, and Hopkinton, and passed to be engrossed a bill directing the Boston Police Department to waive the maximum age requirement for a named applicant. The session also included a moment of silent tribute to Adrian Dolan of South Boston, a former correction officer and special state police officer. Finally, the House adopted an adjournment order and recessed until Thursday at 11 a.m. in informal session.

Transcript Highlights:

• You know, they always had an annual inspection.
• In the direction and the mandate that they will have that plan reviewed on an annual basis.
• On an annual basis. And they are currently on an annual basis.
• It'll never leave us. The debris, the...
• She gave every person a hug and would not let anyone leave her presence without a huge one.

Bills: SB 9 , SB 7 , SB 17 , SB 4 , SB 1 , HB4 , HB4 , SB9 , SB7 , SB17 , SB4 , SB1 , SB2 , SB5

Transcript Highlights:

• We went from $11 billion to $17 billion annually in expenses in the last five years.
• And then we started doing the annual budgets. So we've done it before. We can do it again.
• So on page two, we provide a list of, or the history of annual and biennial budgeting.
• Then there was a constitutional amendment passed, and we started to meet annually.
• And at that point, the legislature then converted to annual budgeting.

Bills: HB2014 , HB2156 , HB2180 , HB2554 , HCR2047 , HR2002

Committees: House Appropriations , House House Appropriations Committee of Reference

Keywords: air emissions, fuel blends, environmental quality, feasibility study, Arizona Department of Agriculture, livestock, compensation, funding, ranching, agriculture, appropriation, University of Arizona, education, state budget, biennial budget, state funding, appropriations, budget procedures, fiscal years, Judea

Transcript Highlights:

• OSPI assumes a total annual cost of about $46,000 per year to implement the bill.
• So it would take effect just at one particular point in time annually.
• These also leave scars, some physical, some emotional, in a lifetime of recovery.
• These also leave scars, some physical, some emotional, in a lifetime of recovery.
• Prior to House Bill 1169, many counties averaged under $50,000 in annual collections.

Bills: HB1316 , HB2401 , HB2557 , HB2720 , HB1073 , HB2685 , HB2640 , HB2403

Committee: House Appropriations

Keywords: postsecondary education, homelessness, foster youth, education access, support programs, commission, gender equity, boys, men, advocacy, state policy, special education, parental rights, educational access, evaluation reports, disability services, behavioral health, emergency services, health insurance, provider access

Transcript Highlights:

• We do go out annually and purchase excess property insurance and basically to, We do go out annually
• However, that $40 million self-insured retention is an annual aggregate.
• Now we know when we leave a scene, that's got to be clean.
• So they do have to report annually to the state to maintain that entity.
• Do have to report annually to the state to maintain that entity.

Summary: The subcommittee heard presentations from the Department of Financial Services and the Department of Business and Professional Regulation, then returned to its ongoing budget workshop with the Department of Management Services. DFS’s Division of Risk Management described its role as the state self-insurance fund, covering about 200,000 employees and 27,000 vehicles, paying roughly $150 million in claims last year, and managing a pilot ETS treatment program for veterans and first responders that had 49 patients and 804 treatments as of the latest report. The Division of State Fire Marshal outlined its fire prevention, training, emergency response, and grant programs, including hurricane deployments, the Florida State Fire College, and several capital and grant requests for roof, courtyard, memorial, and equipment needs. The Division of Rehabilitation and Liquidation explained how it handles insolvent insurers under Chapter 631, currently administering 14 estates with $1.2 billion in assets and $3.7 billion in liabilities, and said no new receiverships had been opened since February 2023. Members asked about grant backlogs, fire truck procurement delays, memorial repairs, and whether affiliate transfers were occurring in insurer liquidations. Secretary Griffin then updated the committee on DBPR’s implementation of House Bill 1021 on community associations. He said the department had used the new authority to expand education, complaint handling, and ombudsman services, including 10 free standardized courses, a new condo website, and a four-hour board certification course that had already drawn more than 12,000 attendees. He reported that outreach to condominium communities had increased by more than 60%, that complaint filings were up 39% while jurisdictional dismissals dropped to 11%, and that about 81% to 82% of the 65 new positions had been filled. Members pressed him on whether the department had enough authority and funding, how condominium counts are determined, how self-reported structural integrity reserve study data is verified, and whether more public-facing complaint tracking and better reporting from local governments or developers would improve the system. The committee then resumed questioning Secretary Allende of DMS about outstanding budget and operations issues. Members focused on the delayed People First contract extension required by statute, with the secretary saying the delay involved technical and contractual complexity in moving a legacy hard-coded system to the cloud. They also revisited the state data team and data catalog project, asking why a statutory 2022 deadline had not been met, how the four-person team and broader data staff were organized, how many applicants were considered for key positions, and what each role was doing. The secretary said the catalog work was being simplified into six metadata fields and supported by a broader community of practice, but no firm completion date was given during the exchange.

Transcript Highlights:

• The water board conducts an annual drinking water needs assessment.
• At the statewide level, the Coastal Conservancy reports annually on our work with an annual report to
• It's a little different in that our annual allocations have historically been smaller.
• And just as you're getting ready to leave, our thanks to you also for pulling forward.
• Water Board's annual needs assessment.

Transcript Highlights:

• It appropriates $50 billion, or $10 billion annually for federal fiscal years 2026 through 2030.
• For the 9% credits, it makes permanent the 12% increases in annual state credit allocations.
• And for the 9% credits, it makes permanent the 12% increases in annual state credit allocations.
• Managing MS requires lifelong care at an average annual cost of over $88,000 per year.
• And again, it is a cost savings of $50 billion annually to the state of California.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• The 1.2 billion allocated annually through the California Climate Credit.
• It has also saved a lot of the tenants about $10,000 in rent annually.
• So yeah, I'll leave it at that.
• We'll leave that with milestones. Anything else, Assemblymember?
• And the transit stop has to leave at least, the vehicle has to leave at least- More than twice a day.

Transcript Highlights:

• Are all these pilots and mechanics and personnel leaving with them too?
• Some leave, some stay.
• People are leaving, but not just the big companies.
• People are leaving, but not just the big companies. He is a small company.
• They're planning to leave to Idaho.

Summary: The committee first held a public hearing on House Bill 2410, which would establish a commercial truck safety and education council, increase the commercial vehicle safety enforcement fee from $16 to $32, and direct the new revenue to a dedicated account for truck safety and training programs. Committee staff outlined the bill’s CDL and training requirements, council structure, confidentiality provisions, and fiscal impacts. The prime sponsor said the bill was intended to improve truck safety through industry-led education and noted that a substitute was expected because details still needed work. Testimony from the Washington Trucking Associations, insurers, the Association of Washington Business, and the Washington Traffic Safety Commission was generally supportive of the safety goals, though the commission said operational details and agency roles still needed clarification. No vote was taken on the bill during the hearing. The committee then heard House Bill 2347, which would repeal the recently enacted luxury aircraft tax on non-commercial aircraft valued above $500,000. Staff explained that the tax is scheduled to take effect April 1 and that repeal would reduce revenue to the Sustainable Aviation Fuel account. Representative Dent, the sponsor, argued the tax is harming business aviation, emergency services, wildfire response, agricultural operations, and rural access, and said aircraft and related jobs were already leaving the state. Most public testimony came from aviation businesses, airport operators, industry associations, and related employers, all urging repeal and warning of aircraft departures, lost hangar tenants, reduced fuel sales, and job losses. One witness from the Port of Seattle supported addressing the tax’s impact but urged working toward a narrower fix rather than full repeal so sustainable aviation fuel funding would remain stable. After closing the hearing on HB 2347, the committee received a work session on tolling technology. Transportation Commission staff presented the results of a pilot using a smartphone app to support toll collection, explaining that the current tolling system remains accurate but that new technologies could reduce costs and improve flexibility over time. The pilot found high accuracy when the app was paired to a vehicle by Bluetooth, lower accuracy without pairing, strong customer satisfaction, and some privacy concerns. The commission recommended keeping the current system in place for now, conducting a more fully operational smartphone-based pilot in the near term, and eventually developing a broader technology marketplace for future tolling systems. Members asked about the role of tags versus apps, video tolling accuracy, and the timeline for replacing existing tolling methods. The meeting ended with adjournment for caucus.