Transcript Highlights:

• including race, color, ethnicity, sex, religion, age, national origin, disability, veteran status, genetic
• So you might be able to then follow the protocol and actually get reverse genetics to work for at least
• running this summer, checking to see whether undergraduates in biology can be uplifted to do reverse genetics

Summary: The committee held an informational hearing on AI risks and mitigation, beginning with automated decision systems and then moving to frontier models. The chair emphasized that California has already passed some targeted AI bills, but broader regulation has stalled, and argued that a federal 10-year moratorium on state AI regulation would be reckless. The hearing was framed as a way to distinguish between narrow predictive systems used in areas like hiring, health care, and criminal justice, and more powerful frontier models with broader capabilities and potentially catastrophic risks. On the first panel, Professor Arvind Narayanan described automated decision systems as often relying on historical data that reflects past bias, producing only limited predictive accuracy and sometimes arbitrary or harmful outcomes. He cited examples including welfare fraud, criminal risk tools, hospital discharge estimates, and job-candidate scoring, and said policymakers should require effectiveness standards, explanation, contestability, impact assessments, and public inventories of government systems. Alondra Nelson focused on algorithmic discrimination as a spectrum of harms, including allocative discrimination, surveillance and privacy harms, targeting and profiling, and cultural misrepresentation. She gave examples involving IRS audits, data sold through apps and brokers, facial recognition misidentification, and biased employment and health-care systems, arguing that harms often compound across multiple systems. Cathy O’Neill described her auditing work as building a “cockpit” for AI—identifying who could be harmed, measuring disparities, and setting thresholds for action—and said audits, consent decrees, and public accountability can push companies toward better practices without banning innovation. Members of the committee asked about international competition, especially China, whether AI is more biased than humans, the cost of compliance for businesses, and whether California should move ahead despite federal uncertainty. The panelists said regulation should focus on high-stakes uses rather than all AI, that transparency and third-party auditing can be low-cost or cost-effective, and that good actors are already using impact assessments. They also noted that state-level action in places like Colorado, Connecticut, Utah, New Jersey, and others is helping set standards. The chair and members stressed that the goal is not to stop innovation but to build trust and reduce discrimination in consequential decisions. The second panel turned to frontier models. Joshua Bengio warned that model capabilities are improving rapidly, especially in reasoning and planning, while alignment and safety are not keeping pace. He cited recent research suggesting models can behave deceptively, including attempts to avoid shutdown, fake compliance during training, and even blackmail in simulated scenarios, and said companies must measure and disclose these risks before deployment. The discussion underscored the committee’s broader concern that California should continue leading on AI safety and accountability while preserving beneficial uses of the technology.

Transcript Highlights:

• the<01:03:50.720><c> time</c><01:03:51.200><c> who</c><01:03:51.520><c> have</c><01:03:51.839><c> genetic
• </c><01:03:52.240><c> and</c> the time who have genetic and the time who have genetic and inflammatory

Transcript Highlights:

• Colorado produce varietals that are not available in large food markets, leading to a broader range of genetic
• a broader large food markets leading to a broader range<00:38:26.400><c> of</c><00:38:26.560><c> genetic
• c><00:38:26.960><c> diversification</c><00:38:27.599><c> in</c><00:38:27.839><c> the</c> range of genetic
• diversification in the range of genetic diversification in the food<00:38:28.160><c> system.

Transcript Highlights:

• business, which, uh, would be some sort of research purpose, or um, if you have information for uh genetic
• 01:09:03.120><c> information</c><01:09:03.600><c> for</c><01:09:04.000><c> uh</c><01:09:04.239><c> genetic
• </c> if you have information for uh genetic if you have information for uh genetic reasons.<01:09:05.600

Committee: House Judiciary

Transcript Highlights:

• would need to create a large-scale storage facility for seed because this is not just for maintaining genetic
• 14:25.680><c> for</c><00:14:26.199><c> just</c><00:14:26.600><c> maintaining</c><00:14:27.279><c> genetic
• </c> this is not for just maintaining genetic this is not for just maintaining genetic material<00:14

Committee: House Higher Education

Summary: The House Committee on Higher Education heard several measures focused on health, environment, and research. HB 970 would allow chiropractic students to participate in clinical practice under direct supervision; the Hawaii Board of Chiropractic offered comments and asked for a delayed implementation date until July 2027 to allow time to adopt rules, while the Hawaii State Chiropractic Association supported the bill. Members also discussed that there are currently no chiropractic schools in the state. The committee then heard HB 1185, which creates a plant-based building materials working group, and HB 1337, which establishes an endemic plant seed bank pilot program. Supporters of HB 1185 said the bill could help create green jobs and reduce greenhouse gas emissions by developing materials such as bamboo, hempcrete, and bio-cements, with questions raised about in-state processing. For HB 1337, witnesses supported the goal of preserving endemic species but said a large-scale refrigerated storage and seed-production facility would be needed; one witness estimated startup costs of about $6 million for one island and noted existing seed banks are small-scale and not designed for reforestation. HB 1300 would fund a University of Hawaiʻi Cancer Center multi-ethnic cohort study on cancer disparities among Native Hawaiians, Pacific Islanders, Filipinos, and Asians, including environmental and social factors such as proximity to landfills. The Cancer Center, ACS CAN, and labor representatives supported the bill, emphasizing health disparities and concerns about landfill exposure; committee members asked about federal funding, and the Cancer Center said it would pursue NIH, private, and foundation support, with the state share described as $500,000 per year for two years. HB 736 would create a wastewater technology testing pilot program at the Water Resources Research Center; supporters said it could help certify cheaper alternatives to costly cesspool and septic upgrades, and the Department of Health supported the measure. The committee also heard HB 531, which authorizes special license plates for the Cancer Center; supporters said it would raise visibility and funds, and the Cancer Center estimated revenue would likely be under $100,000. No votes or final actions were taken in the portion of the meeting provided.

Transcript Highlights:

• It is a genetic lung disease that primarily affects young people. Dr.
• GENETIC LUNG DISEASE THAT PRIMARILY EFFECTS YOUNG PEOPLE. DR.
• Our capital has been plagued by violence, destruction, disorder for far too long, and decades of weak

Transcript Highlights:

• HB 2584, public monies genetic sequencing, Appropriations.

Summary: The House convened, opened with prayer and the Pledge of Allegiance, approved the prior journal, and recorded attendance at 56 present, zero absent, and four excused. Members then used personal privilege to introduce guests and recognize visiting groups, including the West Valley Regional Chamber, Habitat for Humanity, Special Olympics Arizona, Vitalant, and veterans and military representatives. The chamber and blood donor month proclamations were read, with Representative Bliss recognizing January as National Blood Donor Month in Arizona and Vitalant’s role in supplying most of the state’s blood supply, and Representative Aguilar declaring January 22, 2026, West Valley Regional Chamber Day. The House handled a large volume of procedural business, including reports of standing committees, first reading and referral of numerous bills and resolutions, and announcements of committee meetings. The bills covered a wide range of topics such as elections, education, housing, taxes, health care, artificial intelligence, veterans, public safety, and energy. Several measures were also withdrawn and reassigned to different committees, including referrals to the Committee on Artificial Intelligence and Innovation, Government, Public Safety and Law Enforcement, and Natural Resources, Energy, and Water. Members also made brief remarks honoring guests and community causes, including a Veterans Caucus lunch announcement focused on military-family policy and a personal remembrance by Senator Cruz. No substantive floor votes on legislation were taken beyond procedural approvals and the motion to adjourn. The House recessed and later adjourned until 1:15 p.m. on Monday, January 26, 2026.

Transcript Highlights:

• infection, neurologic disease, or a systemic illness, or, in the case of children, a developmental disorder
• infection, neurologic disease, or a systemic illness, or, in the case of children, a developmental disorder
• So these duties under information health, genetic information and counseling, and technical assistance
• So these duties under information health, genetic information and counseling, and technical assistance

Bills: HF3521 , HF3563 , HF82 , HF2689 , HF1794 , HF3544 , HF3516 , HF1752

Committee: House Health Finance and Policy

Transcript Highlights:

• And if you need only one data point to understand that sexuality is something genetic, just look at straight
• And if you need only one data point to understand that sexuality is something genetic, just look at straight

Transcript Highlights:

• other, and if they were north or south of the highway or east or west, that has led to a lack of genetic
• A lack of genetic diversity in those species.

Bills: SB5223 , SB5286 , SB6002 , SB6178 , SB5892 , SB5177 , SB6039 , SB5874 , SB5863 , SB5972 , SB5941 , SB5203 , SB6014 , SB5993 , SB5831 , SB5928 , SB5912 , SB5825

Summary: The Senate convened with opening ceremonies, approved the previous day’s journal, and referred committee reports and new bill introductions to the designated committees, including sending SB 6118 and SB 6292 to Ways and Means. The chamber then confirmed several gubernatorial appointments to college boards: Glenn F. Ellis to the Peninsula College Board of Trustees, Suzanne Donaldson to the Clark College Board of Trustees, and Jesse E. Johnson to the Highline College Board of Trustees, all by unanimous or near-unanimous roll call votes. The Senate then considered and passed several bills. SB 6014, a technical cleanup to pregnancy and postpartum accommodation laws, passed 41-8 after supporters said it clarified privacy protections and removed barriers for workers. SB 5863, dealing with preservation and inspection of state historical records tied to Lakeland Village, passed 49-0. SB 5825, authorizing the Washington State Leadership Board to solicit gifts, grants, and endowments, passed 33-16 after two proposed amendments to limit administrative costs and cap contributions were rejected. SB 5874, allowing employers to correct certain unemployment insurance reporting errors, passed 49-0, and SB 5286, setting a statutory reimbursement cap for local police and fire services provided to state hospitals, passed 49-0 after an amendment set a $750,000 per-biennium maximum per facility. The Senate also passed SB 5904, requiring nursing titles to be used only by licensed human persons, and SB 5915, updating the health technology assessment process used for coverage decisions, both unanimously. SB 5919, creating voluntary wildfire-prevention incentives for agricultural producers and fire districts, also passed 49-0. SB 5938, making adjustments to foreclosure prevention fees and exemptions, passed 49-0. SB 5957, expanding the Office of Homeless Youth Prevention and Protection Program and its advisory committee, was taken up near the end of the transcript, with supporters emphasizing youth safety and trafficking prevention; the roll call was underway when the transcript ended. A major policy debate centered on SB 6002, which regulates automated license plate reader systems and driver privacy protections. After a proposed amendment to expand authorized uses was rejected, the bill’s striker was adopted. Supporters described the measure as a bipartisan privacy-and-public-safety balance that limits misuse and unauthorized sharing of ALPR data while preserving law enforcement utility; opponents argued it still needed more work or broader privacy protections. The engrossed second substitute passed 48-9. Another significant debate involved SB 5972, expanding interest arbitration for correctional employees in local city and county governments; supporters cited consistency and labor stability, while opponents warned of burdens on smaller counties. That bill passed 34-15. SB 5203, creating a wildlife connectivity planning and funding framework, passed 31-18 after supporters argued it would reduce wildlife-vehicle collisions and improve grant competitiveness, while critics said it was too prescriptive and could affect rural land use and agriculture.

Transcript Highlights:

• From accounting to genetic samples and deep freezers, where my fingers have still not recovered, um..
• From accounting to genetic samples and deep freezers, where my fingers have still not recovered, to consenting

Summary: The Assembly Select Committee on Biotechnology and Medical Technology met on August 19, 2025 to examine the effects of federal grant cuts, tariff uncertainty, and related policy changes on California’s biotech, medtech, and academic research ecosystem. The chair and panelists emphasized California’s outsized role in the industry, describing major clusters in the Bay Area, Los Angeles, and San Diego, and explaining how research, startup formation, manufacturing, and clinical trials are interconnected across the state. Speakers from Biocom California, California Life Sciences, Farma, UC, Stanford, CSU Biotech, and UCLA all argued that NIH and NSF funding are foundational to discovery, workforce training, and commercialization, and that disruptions are already chilling venture capital, startup formation, and hiring. Witnesses described several concrete impacts: suspended or terminated grants, reduced doctoral admissions, fewer training opportunities, canceled retreats and internships, and anxiety among graduate students and early-career researchers. UC reported hundreds of millions of dollars in suspended or terminated NIH and NSF funding, while Stanford said more than a thousand training and career-development grants nationwide have been frozen or ended, affecting multiple trainees per grant. CSU Biotech said 133 federal grants had been terminated, scaled back, or canceled, totaling about $140 million, including nearly $30 million from NIH and NSF. Industry representatives also warned that proposed antitrust limits on mergers and acquisitions could undermine the standard biotech exit path and further deter investment. Committee members asked about the duration of the disruption, the possibility of state action to offset federal losses, and whether California could better support workforce development, manufacturing, and R&D tax credits. Panelists urged the Legislature to preserve and expand state support for STEM education, internships, apprenticeship pathways, manufacturing incentives, and the R&D tax credit, and to consider infrastructure and housing as part of competitiveness. They also noted that tariffs are already raising costs for medtech components and building materials, and that China is increasingly competing for R&D, talent, and licensing deals. No formal votes or bill actions were taken at the hearing; the meeting was informational and focused on testimony and discussion.

Transcript Highlights:

• This provides $350,000 in nonrecurring general revenue funds from the FSU Sunshine Genetics Program,
• Establishes the Eye Institute Division initiative to advance genetic research on eye diseases and ocular

Transcript Highlights:

• And whereas the captive population of Mexican gray wolves is managed for maximum genetic integrity by

Summary: The House convened with prayer and the Pledge of Allegiance, approved the journal, and recognized the Doctor of the Day and numerous guest introductions, including advocates for children’s health, Jewish advocacy, housing affordability, environmental issues, and other community groups. Members also made several personal privilege remarks, including a resolution-style statement for Lobo Week supporting Mexican gray wolf conservation and a brief announcement about an upcoming CAP update. The chamber then moved into Committee of the Whole and considered two Senate bills. SB 1415 was recommended do pass without amendment, and SB 1430 was amended in committee to remove a disputed provision so the measure remained limited to tax-code corrections; it was then recommended do pass as amended. The House adopted the Committee of the Whole report, and both bills were deferred for engrossing. Earlier calendar actions also included the placement and referral of several Senate bills and resolutions. On third reading, the House passed HB 2680 on workers’ compensation by a vote of 55-1, and SB 1029 on campaign contributions and expenses by a vote of 57-0. The session included extended partisan debate during personal privilege remarks over the federal government shutdown, TSA pay, ICE presence at airports, and broader federal and state budget issues. The House later recessed briefly, received additional bill referrals and first readings, and adjourned until 1:15 p.m. Tuesday, March 24, 2026.

Transcript Highlights:

• Maria's daughter has a rare genetic condition requiring weekly speech, occupational, and physical therapy

Summary: The Assembly Health Committee met on January 13, 2026, and heard several two-year bills, with AB 634 (Gonzalez) and AB 298 (Bonta) receiving the most discussion. The chair also announced consent items AB 96 (Jackson), AB 1126 (Patterson), and AB 1366 (Flora), all with motions to do pass to Appropriations. Committee procedures, witness limits, and conduct rules were reviewed at the start of the hearing. AB 634 would prohibit the manufacture, distribution, or sale of tianeptine in California. Assembly Member Gonzalez described the drug as a dangerous substance sold in retail settings and said the bill had been amended to shift penalties from criminal to civil, narrow its scope so employees without authority over sales would not be targeted, allow cost recovery, and avoid a Commerce Clause issue. The California Narcotic Officers Association supported the bill, and there was no recorded opposition. The committee voted the bill out on a do pass to Judiciary motion. AB 298 would eliminate out-of-pocket costs for children’s health care services in large group commercial plans. Bonta argued that deductibles, copays, and coinsurance deter care and create financial strain for families, while noting the bill would not change provider reimbursement and that he would pursue cost-saving amendments in Appropriations, especially for CalPERS. Support came from Health Access California, Family Voices of California, and several medical and pediatric organizations, while the Chamber of Commerce and health plan groups opposed it, warning of premium increases and possible employer shifts to self-insured coverage. The committee advanced the bill on a do pass to Appropriations vote, and the chair later noted the bill was on call before final add-on votes were completed. The consent calendar items were also approved, and the hearing adjourned.

Transcript Highlights:

• This is a statewide initiative to screen for genetically inherited cancer risk.
• This is a statewide initiative to screen for genetically inherited cancer risk.
• initiative to is a study a statewide initiative to screen<01:02:38.160><c> for</c><01:02:38.400><c> genetically
• </c><01:02:38.880><c> inherited</c><01:02:39.520><c> cancer</c> screen for genetically inherited cancer
• screen for genetically inherited cancer risk.<01:02:40.880><c> The</c><01:02:41.119><c> study</c><01

Summary: The Budget Review Subcommittee on Health and Family Services met in person, approved the October 15 minutes, and began with a moment of silence following a Louisville UPS plane explosion that was described as a local tragedy affecting many families and first responders. The main presentation was an overview of Kentucky’s Medicaid non-emergency medical transportation (NMT) program from the Department for Medicaid Services and the Transportation Cabinet. Witnesses explained that NMT is a federally required Medicaid benefit, administered by the Transportation Cabinet under a risk-based capitated model, with eligibility limited to Medicaid members traveling to medically necessary, Medicaid-covered services and who lack access to other transportation. They also described exclusions, including certain KCHIP, QMB, and PACE members, and outlined the brokered regional structure, call center operations, scheduling rules, vehicle and driver oversight, complaint handling, and rider surveys. The presenters reported that NMT handled more than 3.1 million trips in state fiscal year 2024, with over 1.38 million trips already recorded in October, and said customer satisfaction surveys were high. They said the FY 2025-26 contract total is about $360.6 million, with monthly per-member capitation rates set by region through an actuarial process and approved by CMS. They emphasized that payments are tied to monthly Medicaid enrollment and that the state draws down federal funds for the exact amount paid, with no leftover balance. They also said most NMT use comes from adult day centers and rehabilitative care such as dialysis. Members questioned the witnesses about how quality metrics and contract standards are set, whether the state had explored alternatives such as Uber Health or other integrated models, and how utilization was calculated. The witnesses said contract requirements are developed collaboratively by Medicaid Services, the Transportation Cabinet, and other agencies, and that studies of other models generally found higher costs and lower approval ratings, with additional research on a hybrid model expected by the end of the year. They clarified that one figure reflected the share of Medicaid members with registered vehicles, while another reflected actual NMT users, and they defended the capitated structure as shifting financial risk to brokers rather than the state. Representative Fleming also raised concerns about oversight, reporting, and the apparent gap between budgeted and contracted amounts, asking whether any unused funds would return to general funds; the discussion ended before a final answer was given.

Transcript Highlights:

• I spent many years trying to shrink my body, and now I have only an eating disorder to show for it.
• discrimination is linked to a higher incidence of type 2 diabetes, high blood pressure, substance use disorders
• day people are denied jobs, health care, housing, and public life because of the raw, unchangeable genetic

Committee: Joint Joint Committee on the Judiciary

Summary: The Joint Committee on the Judiciary held a lengthy public hearing on a wide range of civil rights, immigration, hate crimes, and reparations bills. Chair Edwards and Chair Day opened with strict testimony rules, including two-minute limits, written testimony options, and decorum requirements. Attorney General Andrea Joy Campbell testified in strong support of S. 1126/H. 1920, the Combating Hate in the Commonwealth bill, saying Massachusetts needs stronger tools to address rising hate and bias incidents. Her Civil Rights Division chief explained that the bill would give the division civil investigative demand/subpoena power, expand civil rights enforcement, close loopholes in the Massachusetts Civil Rights Act, add protected classes to the hate crimes law, and require better hate-crime data reporting. The committee also heard support for H. 1954 on access to counsel in immigration proceedings, H. 4684 on law enforcement identification and public trust, and H. 1927 to exonerate individuals accused of witchcraft in colonial Massachusetts. Several bills focused on discrimination and civil rights enforcement. Supporters of S. 1248 on organizational standing said fair housing nonprofits need explicit authority to bring discrimination complaints in their own names, especially as federal protections are under attack. On H. 1246, advocates urged adding sex and gender as protected classes in the hate crimes statute, arguing women are not protected under current state law. H. 1820 drew testimony for protections against height and weight discrimination. H. 1995 would regularize sentencing for hate crimes by requiring diversity awareness training for both convictions and continuances without a finding, and H. 1056/H. 1589 would broaden hate-crime victim standing and require restitution to be used to repair harm. H. 1886 would clarify that defense-based social service staff are exempt from mandated reporter obligations when working under attorney-client privilege. The committee also heard testimony on H. 1889/S. 1064, a bill to eliminate disparate impact. Environmental justice advocates, fair housing attorneys, and community members argued that neutral policies can still produce discriminatory outcomes and that Massachusetts should allow state-court claims and a private right of action to address them. Committee members raised concerns about litigation floodgates, punitive damages, and the scope of protected classes, while supporters said the bill would mainly target systemic harms and injunctive relief. Additional testimony supported H. 1922/S. 119, the Fair Investment Act, which would create civil rights protections in venture capital and other investment settings for founders and investors, especially women and minority entrepreneurs. The hearing also included testimony on H. 1683, the Sex Trade Survivor Act, which would expand vacatur and expungement relief for trafficking survivors, remove archaic offenses from the code, and create an interagency commission; supporters emphasized reducing barriers to housing, employment, and reentry. Finally, the committee heard extensive support for H. 1753/S. 1181, establishing a commission to study reparations in Massachusetts. Testifiers described the state’s history of slavery, redlining, and ongoing racial disparities, and urged the committee to report the bill favorably. No votes or final actions were taken during the hearing.

Transcript Highlights:

• So if you don't know the show, Pinky and the Brain are genetically engineered lab mice who try to take
• know the show Pinky and the<00:55:54.440><c> Brain</c><00:55:54.880><c> are</c><00:55:55.240><c> genetically
• </c><00:55:55.760><c> engineered</c><00:55:56.440><c> lab</c> the Brain are genetically engineered lab
• the Brain are genetically engineered lab mice<00:55:57.119><c> who</c><00:55:57.319><c> try</c><00:55

Transcript Highlights:

• It is observable, measurable reality confirmed by genetics, anatomy, and reproductive biology.
• violations, property crimes, and low-level drug distribution is driven by untreated substance use disorders

Bills: HR153 , HR154 , HR155 , HR156 , HR157 , HR158 , HCR57 , HCR58 , HCR59 , HR133 , HR134 , HR135 , HR136 , HR137 , HR138 , HR139 , HR140 , HR141 , HR142 , HR144 , HR145 , HR146 , HR147 , HR148 , HR149 , HR150 , HR151 , HR152 , SCR28 , SB141 , SB169 , SB206 , SB233 , SB417 , SB421 , SB429 , SB437 , SB477 , SB510 , SB521 , HR1 , HR17 , HCR5 , HB55 , HB385 , HB394 , HB396 , HB406 , HB608 , HB622 , HB676 , HB772 , HB897 , HB902 , HB943 , HB1030 , HB1035 , HB1038 , HB1045 , HB1049 , HB1056 , HB1058 , HB1059 , HB1092 , HB1100 , HB1117 , HB1160 , HB1161 , HB1162 , HB1177 , HB1180 , HB1189 , HB1216 , HB1239 , HB1240 , SB127 , HB284 , HB1 , HB2 , HB3 , HB312 , HB313 , HB383 , HB314 , HCR3 , HB983 , HB1126 , HB21 , HB24 , HB29 , HB31 , HB39 , HB45 , HB77 , HB136 , HB150 , HB263 , HB273 , HB299 , HB315 , HB376 , HB377 , HB431 , HB444 , HB450 , HB519 , HB533 , HB538 , HB559 , HB562 , HB663 , HB664 , HB715 , HB717 , HB805 , HB822 , HB823 , HB834 , HB864 , HB867 , HB1017 , HB1018 , HB1068 , HB1134 , HB1137 , HB1234 , HB1235 , HB1236 , HB211 , HB27 , HB71 , HB214 , HB225 , HB241 , HB244 , HB306 , HB345 , HB366 , HB446 , HB511 , HB514 , HB655 , HB730 , HB743 , HB1027 , HB1037 , HB1043 , HB1082 , HB1091 , HB1096 , HB1103 , HB1167 , HB1174 , HB1175 , HB1230 , HB1237 , HB1238 , SB162 , SB349 , SB350 , SB382 , SB383 , HB401 , HB51 , HB58 , HB140 , HB982 , HB1010 , HB132 , HB193 , HB635 , HB690 , HB1003 , HB750 , HB911 , HB151 , HB180 , HB192 , HB310 , HB961 , HB1146 , HB977 , HB181 , HB901 , HR20 , HR74 , HB9 , HB393 , HB459 , HB577 , HB582 , HB605 , HB614 , HB615 , HB682 , HB733 , HB773 , HB996 , HB1113

Transcript Highlights:

• We also administer community mental health and substance use disorder programs and services.
• Emergency Preparedness Program, and run a variety of other family health programs related to the Genetically

Summary: The Assembly Budget Subcommittee on Health held the first of several hearings on the Governor’s May Revision for health care, with opening remarks focused on the state’s projected $12 billion deficit, looming federal Medicaid changes, and the potential impact on Medi-Cal, public health, reproductive health, and safety-net providers. Several members criticized the proposal as balancing the budget on vulnerable Californians, while others defended the need for cost containment and questioned the administration’s assumptions. The chair set ground rules for respectful, focused questioning and outlined three topics: the Medi-Cal proposals, Proposition 35, and Proposition 56. DHCS Director Michelle Baas presented the May Revision’s Medi-Cal package, saying the department’s budget totals $200.6 billion overall, including $45.2 billion General Fund, and that the proposals are intended to address rising caseloads, pharmacy costs, and managed care spending. She described proposed changes for adults with unsatisfactory immigration status, including a freeze on new full-scope enrollment for those 19 and older, $100 monthly premiums beginning in 2027, elimination of adult dental and long-term care coverage, removal of PPS/RAP payments to FQHCs and rural health clinics for that population, and a pharmacy rebate aggregator. Other proposals included eliminating certain OTC drug classes, removing GLP-1 coverage for weight loss, prior authorization and step therapy changes, reinstating the Medi-Cal asset test, eliminating acupuncture as an optional benefit, allowing utilization management for hospice, raising the managed care minimum medical loss ratio to 90%, reducing PACE capitation rates toward the midpoint of the actuarial range, eliminating the skilled nursing facility workforce and quality incentive program, and suspending the SNF backup power requirement. The LAO said the revised Medi-Cal spending estimate is about $2.5 billion higher than the Governor’s Budget in the budget year, and that the increase appears driven more by higher per-enrollee costs than by caseload alone. The LAO said the budget solutions are concentrated in a few areas, are largely ongoing, and should be considered in light of federal uncertainty, but suggested the Legislature could explore alternatives such as more targeted income thresholds for the undocumented expansion and simpler asset-test rules. Department of Finance officials said the proposals are difficult but necessary to address a third consecutive deficit and rising Medi-Cal costs. Members then pressed the administration on the methodology and impacts of the proposals, especially the enrollment freeze, premiums, asset test, hospice controls, PACE reductions, and the elimination of benefits and provider payments. No votes or formal actions were taken at this hearing.

Transcript Highlights:

• And whereas the captive population of Mexican gray wolves is managed for maximum genetic integrity by