Transcript Highlights:

• We actually heard this in the Budget Sub-5 Committee.
• So I'm very pleased to see it as part of our budget item.
• So I'm very pleased to see it as part of our budget item.
• The veto message stated that it should be included in the budget.
• California Tax Reform Association.

Summary: The Assembly Committee on Revenue and Taxation held its second regular hearing of the 2025-26 session and announced that, under reinstated suspense-file rules, every bill on the agenda would be referred to suspense rather than voted on immediately. The committee first heard AB 53, which would create a state income tax exemption of up to $20,000 for military retirees and certain survivor benefits. Supporters, including veterans’ groups, military retirees, and local officials, argued California is the only state taxing military retirement pay in full and that the exemption would help retain veterans and their families. Committee members voiced strong support, but the bill was sent to suspense. The committee then heard several wildfire-related tax relief bills. AB 429 would exempt certain wildfire settlement payments from gross income for victims of fires from 2020 through 2026; the author and a Greenville fire victim described the burden of taxing settlement funds, and rural county and forestry groups supported the measure. AB 97 proposed similar relief for Bobcat Fire settlement payments, and AB 389 would create a personal income tax credit for home-hardening expenses in high fire-risk areas, with Cal Fire and realtor representatives supporting the bill as a way to reduce future losses. Each of these measures drew no formal opposition in the hearing and was referred to suspense. AB 386 would create a tax credit for employers that help full-time employees repay student loans, up to $3,000 per employee per year. Supporters said it would help recruit and retain workers and reduce student debt burdens, while the California Tax Reform Association opposed the bill because it lacked allocation criteria and would reduce General Fund and education revenues. Committee members expressed interest but asked for clearer eligibility standards, and the bill was sent to suspense. AB 490 would allow a deduction for interest paid on qualified personal vehicle loans; the author framed it as relief for families dependent on cars, but opposition again came from the tax reform group, which argued the deduction would mainly benefit higher-income taxpayers. The bill also went to suspense. The committee also heard AB 547, which would create a tax credit of up to $5,000 for IVF and other fertility-treatment expenses. The author and a witness who described a long and costly IVF journey said the credit would help families afford treatment and support parenthood; members responded sympathetically and asked why the proposal was structured as a tax credit rather than a health coverage mandate. Finally, AB 330 would extend the prepaid mobile telephony services collection act through 2031, preserving an 80-cent surcharge that supports 911 and local government revenues; local government representatives and cities supported the extension, and it too was referred to suspense. The hearing ended with the committee adjourning after all measures were held for suspense-file consideration.

Transcript Highlights:

• Given that this is budget testimony, a lot of Well, given that this is budget testimony, a lot of what
• And the governor's budget for FY26 proposed DMH's budget at about $1.275 billion, almost $1.3 billion
• This is actually the largest budget we've ever seen. That's a 7% increase over last year's budget.
• In addition to DMH's budget, the governor's budget, the governor's budget, In addition to DMH's budget
• And is there money in your new budget to keep Pocasset open in the next budget?

Committee: Joint Joint Committee on Ways and Means

Summary: The committee heard budget testimony from Department of Mental Health Commissioner Brooke Doyle, who said DMH serves about 29,000 people and is facing rising demand, higher operating costs, and uncertainty about federal funding. She explained that the FY26 budget prioritizes fully funding the state-operated inpatient system, which is at 100% occupancy and often serves people transferred from Bridgewater State Hospital, while making reductions in other areas to balance the budget. Those reductions include a 50% cut to case managers, a pause on closing the Pocasset unit pending a working group on Cape access, and changes to youth and contracted services such as right-sizing IRTP and CIRT, reducing Youth PACT from seven teams to three, scaling back flex and jail diversion grants as ARPA funds wind down, and preserving the behavioral health helpline and community-based crisis services. Members from Western Massachusetts and the Cape raised concerns about access, staffing, and the impact of cuts, and Doyle said the department would continue operating IRTP services, improve the referral process, and work with stakeholders on the Pocasset review and other access issues. The committee also discussed school-based mental health, 988, loan forgiveness for workforce recruitment, and the role of co-response programs for law enforcement. Secretary Robin Lipson then testified for the Executive Office of Aging and Independence, describing a proposed FY26 budget increase of about 21% to support councils on aging, home care, elder abuse investigations, caregiver support, care transitions, and nutrition programs. She said the agency is managing rising demand, especially from the growing 80-plus population, and noted uncertainty around federal Older Americans Act funding after the federal disbursement agency was disbanded. To control costs, the office will manage intake and caseload growth in a fully state-funded home care program, but current clients will not lose services. Lipson also highlighted a new $1 million line item for local mini-grants to support age-friendly initiatives. In questions, members focused on elder scams, and Lipson said scams are increasing and the agency is working with banks, district attorneys, and public awareness campaigns. The Health Policy Commission’s Executive Director David Seltz presented the agency’s FY26 request and said the biggest challenge is health care affordability, with family premiums near $29,000 annually and many residents delaying care because of cost. He emphasized that recent legislation significantly expands HPC’s role through a new Office of Pharmaceutical Policy and Analysis, which will examine the drug supply chain and pricing, and a new Office of Health Resource Planning, which will support statewide planning around closures and access gaps. The new law also creates task forces on maternal health access and primary care, and adds transparency and oversight for private equity in health care. Members asked about pharmaceutical costs, GLP-1 weight-loss drugs, 340B, and maternal health closures; Seltz said the data show rapid growth in GLP-1 spending and that the new offices will help the state better understand cost drivers and access problems. The Center for Health Information and Analysis then began its testimony, describing its role as the state’s data hub for health care spending, utilization, quality, and affordability analysis.

Transcript Highlights:

• That's exactly why permitting reform is needed, and it's needed now.
• That's exactly why permitting reform is needed, and it's needed now.
• That's exactly why permitting reform is needed, and it's needed now.
• S BUDGET.
• Now here's the irony of our budgeting.

Transcript Highlights:

• A former House budget chair and former House Senate budget chair, same person, said, the Speaker of the
• House does not control the budget, the Senate President does not control the budget, the governor does
• not control the budget, Medicaid controls the budget.
• The governor does not control the budget. Medicaid controls the budget.
• First, because Medicaid is the dominant feature in budget negotiations and in budget planning.

Bills: S0036 , S0864 , S0268 , S0844 , S0514 , S1404 , S0914 , S1758

Committee: Senate Health Policy

Summary: The committee first considered SB 268, a public records exemption for emergency physicians. Senator Rodriguez’s strike-all amendment narrowed and clarified the exemption, and testimony from an emergency physician described threats, harassment, and safety concerns tied to mandatory reporting and patient encounters. The committee adopted the amendment and reported the bill favorably as a committee substitute. Members then heard SB 514, creating the Dula Support for Healthy Births Pilot Program in Broward, Miami-Dade, and Palm Beach counties for pregnant and postpartum women affected by substance use disorder. Senator Osgood explained the pilot would provide non-medical doula support and data collection, and an amendment changed the funding source to specific appropriations in the General Appropriations Act. Supporters said doula care can improve maternal and infant outcomes and complement medical providers. The committee adopted the amendment and reported the bill favorably as a committee substitute. The committee also approved SB 36 on use of professional nursing titles after extensive debate over whether nurses with doctoral degrees should be allowed to use “doctor” in clinical settings, with concerns raised about patient confusion and the need for clearer identification. The bill was amended to align with the House version and then reported favorably as a committee substitute. The committee next approved SB 864, a public records exemption for uterine fibroid research data, after a technical amendment setting a July 1, 2026 effective date; Senator Sharif said the exemption is needed so the Department of Health can collect sensitive data for the related research bill. SB 844, requiring continuing education on sickle cell disease care management for certain licensed physicians and nurses, was also reported favorably after emotional testimony from patients and advocates describing delayed care and bias. Later, the committee approved SB 1404 on memory care, after a strike-all amendment creating a new memory care specialty license for assisted living facilities that advertise or provide specialized memory care services, while allowing optional supportive services without the new license. Supporters from the senior living industry backed the clarification. The committee then passed SB 914, which clarifies that licensed occupational therapists may perform dry needling, after an amendment adjusting supervision and continuing education language. Finally, the committee took up SB 1758, a broad Medicaid and SNAP reform bill that would strengthen fraud enforcement, impose Medicaid work requirements for certain able-bodied adults, expand behavioral health services, modernize drug purchasing and prior authorization, and require SNAP fraud-reduction measures. Several amendments were adopted, and members questioned the work requirement, implementation costs, EBT card photo identification, and due process concerns; debate continued as the transcript ended.

Transcript Highlights:

• So first of all, the medical malpractice reform. So how do we reform medical malpractice?
• So these are ways to reform punitive damages.
• So we need to reform our malpractice law.
• Now, finally, on the medical malpractice reform, we need to reform the Medical Review Commission.
• Medicaid reform, we got screwed by the feds.

Summary: The committee first approved the minutes from its fourth meeting, held October 27-28 in Santa Fe, with Representative Duncan moving approval and no opposition. The chair then introduced a panel on the cost of providing medical care in New Mexico, focusing on physician shortages, rising practice costs, and access problems, especially in southern New Mexico and Las Cruces. Panelists included family physicians, a pediatrician, a cardiologist/electrophysiologist, and a community health center medical director, who described their backgrounds and practices before turning to the policy discussion. The doctors argued that New Mexico is losing physicians because of three main pressures: medical malpractice exposure, gross receipts tax on medical services, and low Medicaid reimbursement. They said malpractice premiums are much higher than in neighboring states, punitive damages and venue shopping increase risk, and the patient compensation fund and attorney fee structure create additional costs. They also described administrative burdens from insurance billing and referrals, the high debt and long training period for physicians, and the effect of corporate medicine and private equity on practice decisions. One panelist emphasized the economic impact of each physician on jobs and local spending, while another noted that shortages force patients into emergency rooms and delay specialty care. The panel presented a list of proposed solutions: reform punitive damages, limit venue shopping and stacking, restore lifetime medical payments from the patient compensation fund, enact apology protections, cap attorney fees, continue Medicaid funding improvements, and eliminate gross receipts tax on medical and dental services. Committee members generally agreed the presentation was thorough and useful, but several noted that some proposals fall outside this committee’s jurisdiction and would likely need to move through other committees, especially judiciary and tax. Some members supported drafting legislation or working on separate bills, while others urged caution, requested more input from hospitals and economists, and raised concerns about local government revenue impacts from GRT changes. The chair concluded by encouraging members to continue discussions offline and noted that the tax-related issue would be taken up further in the next day’s work.

Transcript Highlights:

• It is funded only in strong budget years, only with non-Prop 98 General Fund dollars, meaning Prop 98
• constitutional mechanism that diverts additional resources into Proposition 98 without it being a budget
• the key breakthrough of the Local Control Funding Formula was the state's finance... share of the budget
• We've got a state budget with a structural deficit that we're worried about that might be $14 to $20
• While we are grateful that Assembly Member Alvarez recognizes the need for LCFF reform and the intent

Summary: The Senate Committee on Appropriations heard SCA 5, the Education Equalization Act, which would create an Equalization Reserve in the General Fund funded only in strong budget years with non-Prop 98 dollars. Senator Cortese and supporters argued it would provide a stable, ongoing stream of funding to reduce per-pupil disparities between basic-aid and non-basic-aid districts without reducing the Prop 98 minimum guarantee. Supporters included education foundation, school board, administrator, employee, and business representatives. Opponents, including the California Charter Schools Association, argued the measure unfairly excludes charter and county school students and could worsen inequities; some committee members also raised concerns about its fiscal effects and constitutional structure. The committee ultimately voted 4-0 to adopt SCA 5, with the measure kept on call for additional members. The committee then took up a series of Assembly bills, most of which were suspense-file candidates and were moved without objection after brief or waived presentations and no opposition testimony. AB 402, AB 708, AB 1080, AB 1126, AB 1235, AB 1555, AB 1641, ACA 7, AB 1672, AB 1943, AB 2565, and AB 2571 were all sent to suspense. AB 1204 drew testimony from school district leaders and coalition members who said it would worsen LCFF funding disparities by shifting future growth away from the base grant; the bill was opposed and moved to suspense. AB 1672 received support from CalPACE. The Department of Finance did not attend and had no comments on the measures. Finally, ACA 18 was presented as a constitutional amendment to double student voting seats on the UC Board of Regents, creating separate undergraduate and graduate student representation. The author and UC student witnesses said the change would strengthen student voice on issues such as tuition, housing, basic needs, and free speech, and would align UC with CSU and community college governance. There was no opposition testimony, but the committee treated ACA 18 as a suspense-file candidate and moved it to suspense without objection. The hearing then adjourned.

Transcript Highlights:

• Where does their budget come through?
• Increasing it, so they're their own separate budget that you'll see through the budget development process
• But then Carly has the second section on proposed reforms and best practices.
• Yeah, I was going to say, Madam Chair, Representative, the CASA budget is actually in the court's budget
• As I was alluding to earlier, there were a number of SCAC reforms, Substitute Care Advisory Council reforms

Transcript Highlights:

• I'm referring to the specials budget. And that CTE, I'm going to second the...
• Again, not referring to this budget, I'm looking at the specials budget that they're working with in
• We also have, I think, some budget considerations for you all to consider.
• I mean, it all has budget implications, but certainly is very policy heavy.
• Chair: in the language for the budget, it says if a district...

Transcript Highlights:

• For a budget conference.
• We will embrace any and all ideas that curb the state budget.
• This budget would bank all the extra money into reserves.
• When we finally put a budget on the desk for its 72-hour waiting period, let it be a budget that was
• When we finally put a budget on the desk for its 72-hour waiting period, let it be a budget that was

Summary: The House convened with prayer, the Pledge of Allegiance, and a quorum present, then approved the journal and received a Senate message transmitting SB 2510, the pre-K through grade 12 education conforming bill. The House waived rules, read the bill by title, and heard brief explanation that the Senate version contained budget-related funding and policy changes, including adjustments to acceleration course weighting and CAPE funding. Members adopted a blank strike-all amendment to place the bill in the proper posture for conference, then advanced it to third reading and passed SB 2510 on final passage by a vote of 88 yeas to 10 nays. After passage, the House agreed to accede to the Senate’s request for a budget conference. The Speaker then delivered extended remarks criticizing the Senate for breaking a prior budget deal and arguing that state government spending has grown too much. He said the House remained committed to reducing state revenue and spending, discussed possible budget and tax-cut approaches, and emphasized that property tax reform and state revenue reduction were separate issues. He also noted that the House select committee on property taxes would continue its work and rejected the idea of mailing $1,000 checks as a substitute for tax relief. Finally, the House took up HCR 1633, a concurrent resolution extending the 2025 regular session until 11:59 p.m. on June 30, 2025. The resolution was read by title, explained as identical to a prior extension resolution except for the new end date, and adopted. The House then approved a motion to adjourn subject to the call of the chair for committee and subcommittee meetings and other House business.

Transcript Highlights:

• I'm just going to put in the plug for the specials on line 193, not of... this budget.
• Again, not referring to this budget, I'm looking at the specials budget... that they're working with
• We also have, I think, some budget considerations for you all to consider.
• Not, I mean, it all has budget implications, but certainly is very policy heavy.
• If you include higher ed, 50% of the budget is education.

Transcript Highlights:

• I would say more than outcomes, it's really about transformational reform in the housing finance system
• But through the new housing agency, and thank you for that reform as well, a very important creation
• And then my final point is that reform cannot end at the award...
• And then my final point is that reform cannot end at the award stage of the process.
• We have the dubious distinction of having had to reform many of those with the legislature.

Summary: The committee held an outcome review hearing on AB 519, focused on streamlining California’s affordable housing finance system. State housing officials described the work group process and the resulting report, which calls for a consolidated application and coordinated review process across HCD, CalHFA, TCAC, and CDLAC, while preserving a separate direct path for projects that do not need state subsidy. They said the goal is to reduce duplication, align timelines, and get projects to construction faster, with implementation now being carried forward through the new Housing Development Finance Committee (HDFC) and related reorganization changes. Officials from HCD, CalHFA, and HDFC said the new committee launched July 1 and is developing regulations, a unified application workbook, and review procedures, with public comment and hearings planned before final adoption. They emphasized a two-track system: one for projects needing state subsidy and one for tax credits/bonds only. Members also discussed the transition period in 2027, the need to clear existing pipeline projects first, and the possibility of construction financing tools. Committee members raised concerns about transparency, stakeholder feedback, and whether additional statutory changes would be needed; staff said current authority appears sufficient. Affordable housing developers and advocates generally supported the reforms but said the work must go beyond a single application. They urged fully funding projects, simplifying post-award functions, modernizing asset management, preserving a direct path for locally funded and rehab projects, and improving geographic equity, especially for rural and farmworker housing. Several witnesses stressed that the system also needs stable funding, including general fund support and the proposed housing bond, and that the state should continue engaging stakeholders as the new process rolls out. Public comment echoed those themes and included a veteran describing the difficulty of navigating housing and VA-related systems, reinforcing the hearing’s focus on simplifying access to housing resources.

Transcript Highlights:

• We believe in its promise, but we also believe in the need for reform.
• We believe in its promise, but we also believe in the need for reform.
• </c> beside you to thoughtfully reform PSO. beside you to thoughtfully reform PSO.
• ><c> can</c><00:21:42.880><c> protect</c> With thoughtful reform, we can protect With thoughtful reform
• Um and then can um impact their budget.

Committee: Senate Education Policy

Transcript Highlights:

• And so having a few percent hit on their budget would be impactful.
• And we don't have the money to budget.
• This comes out of our budgets, the assessors' budget. Budgetary impact on state funding.
• This comes out of our budgets, the assessors' budgets, our district's budgets.
• There would be triggers when we have budget surplus.

Summary: The committee first took up HB 620, a constitutional amendment and companion legislation to centralize collection of state and local sales taxes. The author and supporters from the Tax Foundation, COST, NFIB, and LABI argued that Louisiana’s decentralized system creates high compliance costs, inconsistent administration, and lost revenue, especially for small businesses and out-of-state sellers. Several members raised concerns about the recent rollout of the hybrid e-file system, the effect on local cash flow and auditability, and whether the state could implement a fully centralized system without disrupting parish and municipal revenues. The author ultimately agreed to voluntarily defer HB 620 and its companion HB 658 so the committee could see how the current system performs and continue working with local stakeholders. The committee then heard HB 898, which would dedicate a portion of surplus revenue to reducing and eventually eliminating the state income tax. The author described it as a gradual, revenue-triggered approach to tax elimination, while another member suggested pairing it with reductions in tax exemptions and credits. The bill was voluntarily deferred for future consideration. Next, the committee considered HB 217 and HB 214, a bill and constitutional amendment creating an optional property tax exemption for rehabilitated blighted or derelict properties. Support came from local government and law enforcement groups, who said the measure would give parishes and municipalities a tool to encourage redevelopment and reduce blight. Members discussed safeguards, including local option, whether the exemption should follow the property for 20 years, and whether a step-down at the end of the exemption period should be considered. HB 217 was reported favorably as amended, and HB 214 was also reported favorably. The committee also advanced HB 514 and HB 561, both by Rep. Farnum, which expand property tax relief for seniors and certain trusts. HB 514 creates an optional additional ad valorem tax exemption for homeowners age 65 and older, and HB 561 extends eligibility to certain trusts when the qualifying owner occupies the home. Both measures were described as local-option tools to help seniors remain in their homes, and both were reported favorably as amended. Finally, HB 812, by the vice chair, was heard to allow limited annual compensation increases for parish assessors. Assessor representatives said their duties have expanded and their pay has fallen behind clerks of court; members questioned the lack of direct local voter input, but the bill was presented as optional and funded locally, with discussion of transparency and a possible task force to coordinate future compensation policy.

Transcript Highlights:

• CEQA exemptions and reforms.
• So, last year when we put together the budget bill that took several different CEQA reform bills and
• That was a long-overdue reform.
• It then got pulled into the budget, which happens.
• This bill makes some long-overdue reforms.

Summary: The Senate convened with a quorum, approved prior journals, and moved through confirmations and floor items. Doreen DiAmico was confirmed to the State Water Resources Control Board by a 34-1 vote, Dr. Anne Maria de Mars was confirmed to the State Athletic Commission by 36-0, and Ronald Fiore was confirmed to the State Athletic Commission by 36-0. The body then took up SB 73 on election security, with supporters arguing it would protect ballot chain of custody and prevent intimidation or unauthorized access to voting materials, while opponents raised concerns about transparency, federal preemption, and the bill’s impact on investigations. SB 73 passed on concurrence and urgency with 29 ayes and 8 noes on both the urgency clause and the measure. The Senate also approved SB 929 on annual Energy Commission oversight (37-0), SB 1370 on wildfire-related testimony/oversight (28-5), SB 983 authorizing Port of San Diego job order contracting (28-8), SB 1367 restricting local approval of new or converted private detention facilities (28-8), SB 1257 requiring annual reporting on immigration enforcement incidents (28-8), and SB 1103 requiring large home improvement retailers to report immigration enforcement activity and related records (23-8). SB 1399, which removes the sunset on DOJ reviews of immigration detention facilities, passed 28-7, and SB 873, “ICE Out of Courts,” passed 28-7 to limit arrests near courthouses without a judicial warrant. Later, the Senate passed SB 1292 creating a pilot for camera- or sensor-based curb management with human review and privacy safeguards, despite opposition over privacy and automation concerns, by 28-7. SB 878 strengthened prompt-payment insurance penalties for delayed claims after disasters and passed 29-6. SB 958, a CEQA clarification related to housing and building height impacts, passed unanimously 37-0. SB 924 modernized low-income energy assistance services and passed 35-1. SB 1057 on certification for nurse assistants and home health aides passed, as did SB 1092 giving mobile home residents a chance to bid on park sales (29-7), SB 1123 requiring agencies to consider consumer and other benefits in rulemaking (26-8), SB 1233 increasing utility rate transparency (29-8), SB 1237 strengthening pay data reporting enforcement (28-6), SB 886 shifting data center infrastructure costs away from existing ratepayers (28-6), SB 905 reforming utility incentives and performance metrics (28-8), and SB 909 strengthening public works wage enforcement (28-7). The final item shown, SB 925 on fusion energy roadmap development, passed unanimously 37-0, while SB 954 on CEQA and advanced manufacturing drew extensive debate over environmental guardrails versus economic competitiveness; the transcript cuts off during closing remarks before the vote is shown.

Transcript Highlights:

• Looking ahead to the budget year, we are encouraged by the increased Looking ahead to the budget year
• The governor's budget does not include an appropriation for Cal Grant reform.
• The governor's budget does not include an appropriation for Cal Grant reform, and that is due to the
• here and this little budget there.
• changes to the state library budget.

Transcript Highlights:

• </c><00:01:33.520><c> bill</c> work done and uh pass this budget bill work done and uh pass this budget
• </c> governor's budget. governor's budget.
• </c> the governor's budget. the governor's budget.
• There's no change to their budget, so their total budget is $2.14 million in 2026-27 and also the tails
• to their budget, so their total<00:19:23.480><c> budget</c><00:19:23.840><c> is</c><00:19:24.000><c>

Transcript Highlights:

• And it's not just this budget area, it's every budget area.
• And it's not just this budget area, it's every budget area.
• c><01:31:52.800><c> every</c><01:31:53.120><c> budget</c> this budget area, it's every budget this budget
• How much of our budget that we passed last year, this current budget, as the budget projections came
• budget, passed last year, this current budget, as<01:37:30.639><c> the</c><01:37:30.880><c> budget</

Transcript Highlights:

• Especially where we are in the session, the budgets have already... in the session, the budgets have
• to... substantial increase in next year's budget in pardons and paroles.
• The growth in that budget has been brought back down, so I don't remember the net.
• So, how many chances have we given pardons and paroles to reform their guidelines and provide... to reform
• our system or not reform our system.

Bills: HB202 , HB42 , HB146 , HB492 , HB285 , HB7 , HB454 , HB42 , HB7

Committee: House Judiciary

Transcript Highlights:

• Increasing your use of multi-year budgeting.
• How come the LASC budget doesn't do that? Mr.
• John, this is going to be a budget bill.
• Significant budget cut again for us, almost 7%, with only six weeks' notice before our budget due date
• New Mexico School Budget Revenue Stream is already coming late in the budgeting process, and adding a

Transcript Highlights:

• That's why the Disaster Loan Accountability Reform Act, or DLARA, is necessary.
• , create specific budget line items for disaster loans, and direct the U.S.
• Cities like Detroit need zoning reform to create affordable housing.
• That's why the banking reforms in this bill are also critical.
• And the president's latest budget cuts...