Transcript Highlights:

• </c> private plan. private plan. &gt;&gt; Vice<00:52:28.720><c> Chair</c><00:52:28.960><c> Mecclin.
• What will be the backup plan?
• What will be the backup plan?
• What will be the backup plan?
• plan.

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

Keywords: 1183, house

Transcript Highlights:

• </c><00:03:23.200><c> These</c><00:03:23.360><c> are</c> new plan for these workers.
• These are new plan for these workers. These are tough<00:03:23.760><c> jobs.
• They're currently not covered in the local pension plans.
• They're currently not covered in the local pension plans.
• </c> the same time, keeping that pension plan the same time, keeping that pension plan healthy<00:14:

Keywords: 919, house, all

Summary: House File 4074, the second engrossment of the retirement bill, was presented as a broad pension package with changes affecting multiple public retirement systems. Rep. Lilly described provisions including bringing St. Paul teachers closer to parity with TRA, reducing the COLA waiting period for police and fire retirees from two years to one, lowering the retirement age for certain probation, corrections, and 911 telecommunicator workers from 60 to 55, addressing a State Board of Investments fix, and creating or continuing work on Secure Choice and other retirement-related issues. Members also noted help for volunteer firefighters, EMS-related workers, and a local fix for Maple Plain’s volunteer fire system. The bill was repeatedly described as bipartisan and the product of successful working groups and negotiations with the Senate. Several members spoke in support, emphasizing the importance of public pensions, the impact of inflation on retirees, and the value of the bill’s targeted improvements for workers who are often not covered by Social Security. Rep. Johnson, Rep. Hill, Rep. Vega, Rep. Robbins, Rep. Cha, and others praised the work of the pension commission, staff, and the co-chairs. They highlighted the St. Paul teachers changes, the police and fire COLA adjustment, and the bill’s efforts to honor promises made to public employees. Some members also pointed to the importance of work groups as a way to develop better long-term solutions. The main point of debate centered on the duty disability amendment, which would have addressed disability issues for first responders. Supporters said the issue is serious and needs a work group solution rather than piecemeal changes, while Rep. Johnson and others warned that the proposal could create problems by treating psychological injuries differently from physical injuries. Rep. Roach said the body should not have passed the prior law and urged a fix for disabled law enforcement and first responders. After discussion, Rep. Lilly withdrew the A3 amendment. Earlier technical amendments A9 and A10 were adopted by voice vote, with members noting they were non-substantive and intended to keep House and Senate language identical and avoid a conference committee. The bill then moved to third reading as amended, with members urging a green vote.

Transcript Highlights:

• </c> capacity planning. capacity planning.
• Well, I'll start, and then I think we can get an idea of what the plans were.
• Seeing none, members, here's the plan for today. This bill has our approval. We're fond of it.
• Uh this bill uh plan for today.
• Now, to explain what future planning.

Keywords: 1187, senate, all

Summary: The committee heard an introductory presentation from Sam Daily of Believe It Canine Service Partners, a nonprofit that trains service dogs free of charge for disabled veterans. Daily described the organization’s work with veterans, including placements with MACV and a service dog at Veteran Village in Eagan, and said the group has placed 80 teams so far. Senator Howe asked whether the organization had pursued Support Our Troops grants, and Daily said it had received two SOS grants. The first bill taken up was Senate File 4172, as amended, which would expand eligibility for burial in Minnesota state veterans cemeteries to honorably discharged reservists, National Guard members, and Air National Guard members, and would allow some honor guard use for eligible people. Senator Howe said the bill corrects an inequity for Guard and reserve members who served honorably but are not currently eligible. Glenn Pence testified in support, saying the bill recognizes National Guard service and should allow those veterans to be buried with others they served alongside. MDVA’s David Swantek supported the concept but warned that expanded eligibility would increase demand, especially at Little Falls, and could shorten its projected capacity timeline from about 48 years to about 30 years. The committee adopted the A1 amendment and then laid the bill over for inclusion in the Veterans and Military Affairs Finance Omnibus Bill. The committee then heard Senate File 4026, which sets standards for MDVA competitive grants and adds accountability and residency requirements. Senator Koran said the bill would help the department review grants and ensure funds serve Minnesota veterans and families. MDVA chief of staff Dave Belfi supported the bill, saying it reflects agency feedback, aligns with existing residency rules, and does not affect CVSO, VSO, or Support Our Troops grants. The A1 amendment was adopted, and the bill was laid over for inclusion in the omnibus bill. Next, Senate File 4807 was heard, a bill to update pay for National Guard soldiers and airmen called to state active duty. MDVA and National Guard officials said the bill would simplify statute language and raise the minimum base pay for lower ranks to the E5 level, with future adjustments tied to federal pay tables. Senator Kunesh asked about funding, and staff explained the cost would come through an open general-fund emergency appropriation, estimated at about $30,000 annually but varying with activations. The committee adopted amendments to incorporate SF 4172 and SF 4026 into SF 4807, made technical corrections, and then recommended SF 4807, as amended, to pass and be referred to the full committee. Finally, the committee heard Senate File 3603, which would create a program allowing school districts to issue high school diplomas to Minnesota veterans who left school to serve during the Korean conflict or Vietnam War. Senator Rasmussen said the bill recognizes veterans who interrupted their education for service. MDVA’s John Kelly supported the bill, noting it reflects input from MDVA and the Department of Education and that similar programs exist in other states. The committee voted to recommend the bill to pass and refer it to the full committee. The meeting also began discussion of Senate File 4560, which would formalize the Commander's Task Force, but the transcript cuts off before that bill was acted on.

Transcript Highlights:

• And we are not planning on that.
• That in our contingency planning and our risk mitigation.
• We're planning to go down a path of six-month buckets of effort.
• One of the outcomes of that will be a firm plan for the next six months and what we're planning on doing
• Many small city plans will typically have a small staff because they're small plans.

Keywords: 908, all

Summary: The Budget Section met with a quorum, approved the December 10, 2025 minutes, and received a general fund and revenue update from the Office of Management and Budget. OMB reported the state was about $2 million ahead of forecast biennium-to-date, with an estimated ending general fund balance of about $397.5 million. Joe Morset also reviewed balances in major funds, oil tax revenues, interest income, federal grant reporting, fiscal irregularities, the voluntary separation incentive program, vacancy savings, and the FTE pool. Members asked about the higher-than-forecast interest income, the effective oil tax rate and stripper-well production, the impact of temporary pay adjustments and vacancy savings, and whether the voluntary separation program could reduce institutional knowledge or shift duties to remaining staff. The committee then approved four Emergency Commission requests: $5.26 million for DPI to support an AI-enabled tutoring platform, $105,000 from the general fund contingency for Corrections GPS monitoring, about $1.963 million for HHS SPACES eligibility system upgrades tied to Medicaid work requirements, and about $1.2 million for SNAP eligibility IT improvements. Legislative Council reported remaining interim spending authority after those approvals, and NDIT gave an update on digital accessibility compliance efforts, saying the state has made substantial progress on websites and PDFs but that applications will take longer to remediate. NDIT also reported on the Infinite Campus student information system rollout, noting data migration remains the biggest challenge and that a supplemental vendor is being brought in to help get districts ready for summer go-live. Greg Hoffman then gave a brief update on NDIT’s operational fund, saying cash remains negative in PeopleSoft but accounts receivable keeps the fund functioning within federal limits. The Supreme Court reported on its new and vacant FTE funding pool, saying it has filled 7 of 10 new positions and has realized some vacancy savings, and Legislative Council provided a similar report for the legislative branch along with a reminder that budget action reports are available online. The Department of Transportation presented its Flexible Transportation Fund, explaining the fund’s allocation formulas and ranking process, and sought Budget Section approval for two projects over the $10 million threshold: a Medora city streets and sidewalk project and a Cass County bridge replacement. Members questioned whether funding Medora streets could set a precedent for city street reconstruction and whether the bridge application process fully reflects statewide needs. DOT said the projects were scored competitively and that the bridge list does not capture all deficiencies statewide.

Transcript Highlights:

• So PED's plans are to begin some type of programming in that building in FY27.
• So here in Santa Fe, school boards they didn't have a plan to use the funding.
• So don't plan on coming hoping to get your bill endorsed by LASC on that day.
• It talks about plan and professional development.
• that plan should include those following things.

Keywords: 996, all

Transcript Highlights:

• How did you plan to submit this amendments if you were planning to end discussion?
• Angela Pontis on behalf of Planned Parenthood Affiliates of California in support.
• If California voters approve this plan, the temporary maps only happen if D.C.
• It has to do with our poor planning of our leaderships and lawsuits.
• It was previously whole and is split by this plan.

Committee: House Elections

Keywords: 988, house, all

Transcript Highlights:

• And as I said, each state developed their own plan for how they would address these rules.
• The second workshop is planned in Los Angeles at our CPUC office; that will be in person.
• That fiber plan is already pre-established.
• ...And their fiber plan, as detailed, is about half their network.
• Or at least not without a thorough, airtight plan that no one will be left out.

Summary: The committee held an informational hearing on Carrier of Last Resort (COLR) to examine its history, current operation, and possible future changes in California. Chair Tasha Berner said the hearing was prompted in part by AT&T’s 2023 request for relief from COLR obligations and by broader concerns about public safety, affordability, universal service, and access to modern broadband and telecommunications. The first panel featured a telecommunications expert who traced COLR back to universal service principles and explained how states have handled COLR differently, including full deregulation, limited rural obligations, or transition pathways tied to competition and customer protections. Members asked about affordability, federal and state processes for service withdrawal, and whether COLR remains necessary given modern competition. CPUC staff then described California’s COLR framework, explaining that universal service rests on access, reliability/quality, and affordability, and that COLR requires carriers to provide basic service, including voice-grade calling, 911 access, relay services, and Lifeline. Staff said AT&T’s application sought relief in nearly all of its territory, but no replacement COLR came forward during the proceeding, and public participation hearings drew thousands of comments and strong concern from rural and vulnerable customers. The CPUC outlined its ongoing rulemaking to reconsider whether the 1996 COLR rules and 2012 basic-service definition still fit current conditions, with workshops and public hearings scheduled and a proposed decision expected later in the year or into 2026. Members pressed staff on geographic outreach, wireless coverage, whether broadband can be part of basic service, public safety during wildfires, and what reporting and complaint processes currently exist. In the final panel, industry and public-interest witnesses sharply disagreed. A U.S. Telecom representative argued COLR is outdated, costly, and copper-focused, and said reform should allow technology-neutral alternatives such as wireless, fiber, and satellite while preserving reliable voice and emergency access. The CPUC Public Advocates Office countered that COLR remains a necessary public safeguard, especially for rural and low-income customers, and argued that any transition should maintain or improve service, with public benefits such as broadband investment and continued protections for 911, disability access, and affordability. Committee members focused on the difference between an obligation to serve everyone and a mere option to serve, and on whether the Legislature should provide clearer guidance as the CPUC’s rulemaking moves forward.

Transcript Highlights:

• These are American Rescue Plan Act appropriation requests.
• These are pay plan appropriation requests.
• These are pay plan appropriation requests.
• What under that is in the pay plan? That just looks like grants disbursement, not pay plan.
• We're on H, the pay plan. Where are you referencing, please? We're on H, the pay plan.

Committee: All JBC-PEER REVIEW

Summary: The PEER Review Subcommittee met to consider a large agenda of budget, appropriation, transfer, and contract items. Members approved temporary appropriation requests for several agencies, including the Auditor of State, Department of Education, and Labor and Licensing; ARPA return requests from Workforce Services; Infrastructure Investment and Jobs Act requests for State Police and Agriculture; restricted reserve transfers for teacher scholarships, school facilities, and economic stimulus; a Commerce reallocation of positions and spending authority; cash fund, budget classification, overtime, and pay plan requests; and 17 methods of finance items for universities and other agencies. Most items were approved without objection after brief explanations from staff and agencies. Several items drew questions and were held or discussed further. A Department of Human Services discretionary grant package for the RSVP program was held over after Senator Irvin raised concerns about whether the grants were an effective use of state general revenue and asked for more information on administration costs and program operations. In the contracts section, Representative Richardson questioned a DHS sole-source contract with EMS Link for document management software and a DHS contract with Presidio; the EMS Link item was held for additional answers, while the Presidio item was clarified as not sole-source and was allowed to proceed. Members also asked for more information on a Department of Education mental health referral contract with Care Solace, which officials said is a statewide concierge/referral service connecting students to Arkansas providers and telehealth options. The committee also reviewed monthly reports, including the Medicaid Trust Fund. DHS and DFA officials said the fund was currently sufficient to finish the fiscal year, though it was being drawn down and would likely require a $100 million transfer from restricted reserves in FY27, with another $100 million set aside in the governor’s budget as a backstop. Members discussed the need to define a minimum reserve level and to better account for ongoing Medicaid costs in the budget. The meeting ended with no further business and adjournment.

Transcript Highlights:

• So in our state plan, we have an approved plan of the upper payment limit program for private hospitals
• We really have a lot of trouble with Medicare Advantage plans and some commercial payer plans because
• I believe it's driven by our state planning calculations.
• So we have a plan in place for that. Yes, ma'am.
• No, the overall plan for the waiver plan.

Committee: All ALC-HOSPITAL, MEDICAID, & DEVELOPMENTAL DISABILITIES STUDY SUBCOMMITTEE

Keywords: 1204, all

Transcript Highlights:

• The Construction and Properties Department reviews and approves all construction plans, awards contracts
• However, OMES was limited to proposing this criteria to the Long Range Capital Planning Commission as
• Statute also gives the Long Range Capital Planning Commission a mandate to work toward eliminating the
• However, OMES was limited to proposing this criteria to the Long Range Capital Planning Commission as
• Texas's plan began in 2016 and is currently in phase two.

Summary: The LOFT Oversight Committee met with a quorum, approved the prior minutes, and then received LOFT’s report on state office space utilization in Oklahoma City and Tulsa. LOFT presented three main findings: OMES is not fully exercising its statutory authority over state property and relies on flawed self-reported data; state office space is being used inefficiently and often below policy benchmarks; and better use of state-owned space could save tens of millions in private lease costs. LOFT also described errors in the state’s real property inventory, low utilization rates across OMES-owned, agency-owned, and privately leased space, and recommended stronger data verification, clearer space standards, and more active oversight of underused property. OMES responded that it believes it is meeting its statutory obligations and said it tries to balance oversight with being a partner to agencies, placing them in space that best fits their mission and service needs. OMES officials said they rely on agency-reported data, do not have enough staff to independently verify all inventory information, and do not “police” daily occupancy. Members questioned the distinction between meeting statutory duties and exercising full authority, the use of “shall” versus “recommend,” the lack of enforcement for agencies that decline space recommendations, and whether OMES should more aggressively consolidate or divest underused buildings. LOFT and OMES also discussed the methodology behind utilization calculations, including badge-swipe data, space standards, and common-area adjustments. In the final finding, LOFT estimated that relocating agencies from private leases into existing state-owned space could save roughly $16 million to $28.8 million annually, depending on the scenario used. LOFT cited other states and federal reforms as models and recommended that OMES more actively assess underutilized properties, verify data, and use actual utilization analysis to reduce private leasing. OMES said it would review the comments and work to improve. The committee then unanimously approved a rapid-response evaluation request for LOFT to examine DHS child care subsidy verification and reimbursement processes, citing concerns about possible improprieties and the need to confirm whether fraud or waste is occurring.

Transcript Highlights:

• There are strategic plans. Yeah. And you...
• They would come up with that plan.
• It basically, the master plan needs to show today's downtown, tomorrow's downtown.
• It basically the master plan needs to show today's downtown, tomorrow's downtown.
• So I simply wish more information, more discussion take place so we can formulate a smoother plan.

Committee: House Commerce

Keywords: 959, house, all

Transcript Highlights:

• assessment, the 2015-to-2020 plan, and the 2025 game management plan soon to be adopted next month.
• It simply codifies existing policy already contained in the four WDFW agency plans.
• My full speech that I had planned on giving you earlier today. Thank you, Kelsey.
• I'm a past WDFW commissioner that was on the commission and helped write the work plan.
• And what this bill does is ask the department... ...right to the wolf plan.

Bills: SB5838 , SB5960 , SB6097

Committee: Senate Agriculture & Natural Resources

Keywords: tribal representation, natural resources, board of natural resources, environmental policy, community involvement, ungulate populations, wildlife management, habitat restoration, conservation, sustainability, Indian tribes, conservation futures program, federal recognition, environmental protection, 904, all

Transcript Highlights:

• In our experience, impact 2030 plan. Technology and innovation is key.
• We created our or we decided to half-hour equality and has been planned.
• And the 3rd one that they know how to apply asset quality housing plan.
• Our board just adopted a new strategic plan. They did that in January.
• in 2026. accountability plans that are produced beginning in 2026.

Transcript Highlights:

• We also plan to purchase property. We just missed out on 100 acres.
• I do plan... This coming year, I plan to be more involved with the legislature, as Mr.
• Plans for our future plans. Okay, is this... that's yours? That's not the one.
• We have other plans for revenue, but this is just one of our plans for revenue.
• So we see a 20- to 30-year plan.

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• an adult film content creator, and I myself was a prostitute for 30-plus years, and I pretty much plan
• the wildfires from happening, but we have to have literally a martial combination of the Marshall Plan
• Water suppliers need to be provided the adequate resources and the flexibility to plan for these events
• Assembly Bill 615, Davies, regarding emergency response plans for power facilities.
• The plan must be developed in coordination with the local emergency agencies.

Summary: The Emergency Management Committee met to adopt its rules and hear a series of disaster- and public safety-related bills. Several measures were placed on consent and approved, including bills sending items to Appropriations, Natural Resources, Judiciary, Labor and Employment, and Environmental Safety and Toxic Materials. AB 262, by Assembly Member Caloza, proposed a California Individual Assistance Act to create a state grant program for disaster-related costs when federal aid is unavailable; supporters cited Rio Dell’s earthquake recovery as an example, while some members raised concerns about eligibility, cost, and whether the bill could aid undocumented residents. The bill passed to Appropriations on a 4-2 vote. AB 549, by Assembly Member Gabriel, would create an interagency coordination framework for major sporting events such as the 2026 World Cup, 2027 Super Bowl, and 2028 Olympics, with supporters emphasizing public safety and anti-trafficking planning. An opposition witness argued the bill could be used to justify prostitution arrests and misuse trafficking funds, but the committee members largely supported the coordination concept, and the bill passed 6-0 to Arts, Entertainment, Sports, and Tourism. AB 270, by Assembly Member Petrie-Norris, would establish a three-year pilot for autonomous aerial firefighting helicopters overseen by the Orange County Fire Authority; supporters described it as a way to extend wildfire response into conditions where crewed aircraft are limited, and the bill passed 6-0 to Privacy and Consumer Protection. Later, AB 367, by Assembly Member Bennett, sought to require Ventura County water districts in high fire-risk areas to top off tanks during red flag warnings, maintain backup generators, and harden critical water infrastructure. Water agencies opposed the bill unless amended, citing cost, flexibility, and liability concerns, while the author argued the requirements were necessary after failures during the Thomas Fire; it passed 6-1 to Utilities and Energy. AB 615, by Assembly Member Davies, required emergency response plans to be submitted with initial applications for battery energy storage and other energy facilities and to be reviewed with local responders; it passed 7-0 to Utilities and Energy. AB 1075, concerning privately contracted firefighters, also passed on consent to Natural Resources. Finally, AB 1143, by Assembly Member Bennett, would create a voluntary statewide home hardening certification program through the State Fire Marshal; supporters called it a best-practices approach to reduce wildfire losses and insurance risk, and it passed to Natural Resources. The committee then completed roll calls for absent members and adjourned after all bills were moved out.

Transcript Highlights:

• </c> needs to go through the 10-year plan needs to go through the 10-year plan process<00:33:01.039><
• but</c><00:34:19.159><c> there</c><00:34:19.280><c> should</c><00:34:19.440><c> be</c> the 10-year plan
• One of the big... this again in in the 10-year plan uh we this again in in the 10-year plan uh we do<
• I will understand if you've already got holiday plans or something.
• or something the older holiday plans or something the older members<00:44:38.079><c> that</c><00:44:

Keywords: 928, house, all

Summary: The committee met in executive session on several House bills and first took up HB 181, which would have made the state responsible for maintaining Opticon systems for fire and emergency on state roads. Members noted that a system already exists and that towns are generally responsible for maintenance once they choose a system, so the committee voted ITL/OTL-style recommendation by a unanimous 18-0 roll call and discussed placing it on the consent calendar. The committee then considered HB 7113, concerning mile markers along Route 112/Kancamagus Highway. Supporters argued the markers would improve safety and help locate stranded motorists in a rural area with poor cell service, while another member noted the bill’s language should be clarified to refer specifically to the Kancamagus and to DOT’s usual 0.2-mile spacing. The committee voted 18-0 to recommend OTP with a fiscal note, and because it was a money bill it would not go on the consent calendar. HB 300, directing DOT to seek proposals on the Conway Branch rail line and creating a rail study committee, was recommended ITL after members said the issue had already been studied and the corridor had already been designated for rail trail; that vote was unanimous and the bill was placed on the consent calendar. HB 375, allowing municipalities to designate sections of state and local highways for all-terrain vehicles, was also recommended ITL. Members said there is already a process for towns to authorize such use and expressed concern about a blanket approach and possible local conflicts; the motion passed unanimously and was sent to the consent calendar. HB 578, relating to a sound barrier along the F.E. Everett Turnpike, drew more discussion: some members said the project should go through the 10-year plan and environmental review process, while others cited local impacts and the need for some barrier or privacy protection. The committee ultimately voted 16-2 to recommend ITL, and it was not placed on the consent calendar. Finally, the committee took up HB 561, concerning transfer of state-owned real property to municipalities. Members voted to retain the bill, with supporters saying they wanted more information, including a site visit to Merrimack’s Continental Boulevard and further discussion of how state roads are handled in other towns. The retain motion passed unanimously 18-0, and members noted that retained bills do not go on a calendar. The chair then announced the committee’s next full meeting would be on February 24 at 10:30 a.m., with a briefing on the capital budget process and a meeting with the Secretary of the Treasury.

Transcript Highlights:

• The department conducted a test of its disaster recovery plan in August 2022 for its offender management
• Testing the disaster recovery plan is vital to evaluating whether the plan would be effective in an actual
• Testing the disaster recovery plan is vital to evaluating whether the plan would be effective in an actual
• So on that disaster recovery plan, I know DIS was going through a lot of upgrades at that time, and it
• So what's the plan? Do we know what happens if nobody still responds to that?

Committee: All LEGISLATIVE JOINT AUDITING-STATE AGENCIES

Keywords: 1204, all

Transcript Highlights:

• OHA's budget request, and it really reflects our strong commitment and confidence in our strategic plan
• And we plan to do this several ways, including leveraging our existing relationships and partnerships
• And we plan to do this several ways, including leveraging our existing relationships and partnerships
• Mana Imalola to be our strategic plan Mana Imalola to be able<00:04:08.959><c> to</c><00:04:09.200><
• </c><00:04:20.959><c> several</c><00:04:21.440><c> ways,</c> we plan to do this several ways, we plan

Committee: Senate Hawaiian Affairs

Keywords: 912, senate, all

Summary: The Committee on Hawaiian Affairs met in decision-making sessions on March 18 and considered several House bills. On HB 576 HD2, the chair proposed an amendment clarifying that the bill would not apply to transfers of Hawaiian Homes lands under the Hawaiian Homes Commission Act of 1920, including lease conditions for 99-year terms; the committee adopted the recommendation to pass with amendments, with one no vote. On HB 606, the chair recommended passing the bill with amendments and a committee report requesting a $50 million appropriation; that recommendation was also adopted, again with one no vote. HB 1408 was recommended for indefinite deferral, and no discussion was recorded before adjournment. In a later portion of the meeting, the committee heard testimony on HB 410, which was described by the Office of Hawaiian Affairs as its budget request. OHA testified in strong support, saying the measure would help advance its strategic plan, reduce disparities affecting Native Hawaiians in health, housing, economic development, and education, and improve transparency and data-driven oversight. The committee noted additional support and opposition testimony counts on other measures, including HB 871 and HB 1091, and then moved into decision-making. The committee ultimately adopted the chair’s recommendations to pass HB 410 HD1 unamended, HB 871 HD1 unamended, and HB 1091 HD1 as is. Senator Ihara was noted as excused for part of the later voting. The meeting concluded with no further testimony or discussion and the committee adjourned.

Transcript Highlights:

• ,</c> repayment plan.
• And in this plan, repayment plan.
• </c> they call a repayment assistance plan. they call a repayment assistance plan.
• </c> an income based repayment uh plan an income based repayment uh plan system.<00:31:35.600><c> And
• plan by July 1st of 2028.

Keywords: Call to Order and Roll Call: 0:00:00 Approval of Minutes: 0:01:45 Federal Education Updates 0:02:12 Dual Credit Updates: 0:43:38 Kentucky State University's Doctoral Program Request: 01:27:08 Postsecondary Accreditation: 1:49:05 Consideration of Referred Administrative Regulations: 2:14:48 Adjournment 2:16:31, 958, all

Summary: The committee met with a quorum, approved the previous meeting minutes, and heard a presentation from Austin Reid of the National Conference of State Legislatures on education-related provisions in the federal One Big Beautiful Bill Act (H.R. 1). Reid said the law is projected to increase the federal deficit over 10 years, with major savings coming from Medicaid, student loan changes, and SNAP. He focused on how those changes could affect schools, including possible effects on free and reduced-price meal certification, state funding formulas that use SNAP as a proxy for low-income status, and Medicaid-funded school services for students with disabilities. Reid also outlined the new federal scholarship tax credit, which gives a dollar-for-dollar credit for donations to qualifying scholarship-granting organizations. He said families up to 300% of area median income may benefit, the program begins in 2027, and states must opt in and designate eligible organizations. He noted unresolved questions about whether states can add their own criteria and said Treasury regulations will be important. He also described the expansion of 529 plans to cover more K-12 and postsecondary expenses. On higher education, Reid explained a new workforce Pell grant option for short-term programs, with states and governors playing a role in determining eligible programs. He said the programs must meet placement, completion, and earnings measures and that implementation is expected to be tight before the July 1, 2026 effective date. He also reviewed student loan changes, including lower institutional loan limits, prorated borrowing for part-time enrollment, new caps on graduate and Parent PLUS loans, and a new earnings-based accountability standard that could make some programs ineligible for student loans if graduates earn too little. No votes were taken beyond approval of the minutes.

Transcript Highlights:

• We are in support of the reorganization plan.
• What is the plan? I mean, why don’t you bring us a proposal?
• The controller has an audit plan. They’ve been working through an audit plan.
• The controller is, has an audit plan. They've been working through an audit plan.
• It would behoove the Comptroller to come back with a plan.

Summary: The subcommittee first heard an informational presentation on the May Revision’s proposed reorganization of the Business, Consumer Services and Housing Agency into separate housing-focused and consumer/business-focused entities. Administration officials said the split would improve oversight, streamline decision-making, and create a dedicated California Housing and Homelessness Agency with a new housing development and finance committee. The Department of Finance said funding was needed in 2025-26 to begin implementation, while the LAO recommended rejecting the proposal without prejudice because the Little Hoover Commission review was still pending and the plan would require ongoing General Fund costs. Members raised concerns about the timing, the lack of alignment with the budget process, and whether the reorganization would improve accountability for homelessness spending; several public witnesses supported the concept but stressed it could not substitute for new housing and homelessness dollars. The committee then took up the Department of Veterans Affairs. CalVet requested funding for phase three of its electronic health care record project and a trailer bill to preserve authority for federal background checks, but the May Revision withdrew requests for deferred maintenance and additional administrative support. The LAO noted deferred maintenance can prevent larger future costs, and the chair criticized the withdrawal of less than $1 million for veterans’ homes as short-sighted given existing repair needs. No vote was taken. Next, the Department of Housing and Community Development presented its budget. HCD said the May Revision provides no new affordable housing or homelessness funding, but does retain existing rounds of funding and proposes a $31.7 million reversion from undersubscribed housing programs. Members from both parties expressed concern about zeroing out ongoing housing and homelessness investments, especially for LIHTC, the Multifamily Housing Program, and HAP. HCD also defended its homelessness accountability and compliance work, saying the unit includes about 30 program staff and six attorneys, with three additional attorneys requested mainly to handle public records and litigation workload. Public commenters largely opposed the lack of new funding and urged continued support for housing and homelessness programs, while some supported the reorganization and accountability efforts. Finally, the committee heard Go-Biz proposals. The administration requested authority to increase funding for a federal trade program match if needed, plus reappropriations for administrative funds tied to the Containerized Ports Interoperability Grant Program, zero-emission vehicle operations, and the Women’s Business Center Enhancement Program. It also proposed withdrawing the Cal Competes grant request and reverting remaining funds from the Performing Arts Equitable Payroll Fund. The LAO said Cal Competes is generally effective but could be cut as a budget solution, while warning that the performing arts fund was close to awards and should be considered carefully. Members objected to pulling back committed funds for performing arts organizations and questioned why the state would withdraw support after applications had already been submitted.