Transcript Highlights:

• Is there a motion on item number nine, H.R. 115? I heard a motion.
• Motion on item number nine, H.R. 115. I heard a motion, a second. Secretary, please call the roll.
• On item number nine, H.R. 115 by Assembly Member Ward. Absent members, Lackey. Thank you.

Summary: The Rules Committee was called to order, a roll call was taken, and a quorum was established. The committee then considered its consent agenda, with items 9 and 12 removed for separate action. The remainder of the consent agenda was approved by roll call vote. Item 9, H.R. 115 by Assembly Member Ward, was then taken up separately and approved by roll call vote. The transcript includes repeated clarifications about members who were absent or not voting, including Assembly Member Lackey. No testimony or substantive debate on the bill is reflected in the excerpt. After completing action on the consent agenda and H.R. 115, the committee adjourned.

Transcript Highlights:

• H.R. 1 augmented the 9% tax credit program by 12% in perpetuity.
• After H.R. 1 was passed... Us the 4% tax credit program.
• After H.R. 1 was passed, this threshold, which was referred to earlier, was reduced to 25%.
• No, other than just kudos to CDLAC and TCAC for moving so fast, you know, after H.R. 1 passed to be able
• So it could be the— I'm just using the 2-1-1 numbers.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• There was a lot of stones being thrown in glass houses over the summer, about H.R. 1 and taking cutting
• Well, all the while, that $782 million cut happened before H.R. 1 was ever signed or even thought of
• And we could throw all the stones we want at H.R. 1, Madam Speaker, but H.R. 1 would blush at the Medicaid
• The Medicaid cuts in this budget had nothing to do with H.R. 1. That had everything to do...
• The Medicaid cuts in this budget had nothing to do with H.R. 1.

Bills: HB2720 , HB2073 , HB2681 , SB5467 , SB5820 , SB5863 , SB5892 , SCR8406 , HB2487 , HB2711 , SB5816 , SB5919 , SB5995 , SB6278

Summary: The House convened, established a quorum, approved the prior day’s minutes, and then moved through caucuses and a series of transportation, elections, energy, historical records, cannabis, abortion-access, and fiscal bills. Members repeatedly emphasized that several measures were supplemental or technical updates to existing law, while others involved larger policy disputes over taxes, fees, clean energy, election security, and reproductive health. The chamber also received Senate messages on other bills and briefly recessed for caucus during the day. The most prominent action was final passage of Engrossed Substitute Senate Bill 6005, the supplemental transportation budget, after adopting a technical amendment and a larger striker amendment. Supporters highlighted preservation and maintenance funding, rail investments, ferry maintenance, road safety, and continued work on major projects statewide; opponents largely reserved comments or noted concerns about future needs. The House passed the bill 93-0 with five excused. The House also passed Engrossed Substitute House Bill 2711 on transportation resources, after adopting a technical amendment that removed the aircraft tax and delayed an RV-related tax change; supporters said it protected businesses and jobs, while opponents objected to trade-in treatment and other tax changes. That bill passed 83-10. On elections, the House considered Senate Bill 5892 to protect the voter registration database. An amendment to reduce penalties from a felony to a civil infraction and remove the emergency clause failed, while the committee amendment passed 50-34. Supporters said the bill was needed to safeguard sensitive voter data and clarify access; opponents argued it created conflicts with federal law and imposed excessive penalties on local election officials. The bill then passed 57-36. On energy, Substitute Senate Bill 5982 updating consumer-owned utility provisions drew debate over carbon capture, resource adequacy, data centers, and clean energy policy. Amendments on carbon capture and blackout-triggered termination failed, while an amendment preserving cogeneration exceptions passed; the bill then passed 57-37. The House also passed Senate Bill 5863 on preservation and inspection of state historical records, after rejecting an amendment to require longer retention but adopting the committee amendment; supporters stressed preserving the history of residential habilitation centers and the value to families seeking records. Substitute Senate Bill 5874, allowing the Employment Security Department to waive penalties for minor employer reporting errors, passed unanimously. Engrossed House Bill 2681, raising cannabis license fees while removing an escalator, passed 52-42. Finally, Substitute Senate Bill 5917 on access to abortion medications saw several failed amendments from opponents seeking to narrow, reframe, or add fiscal limits to the bill; supporters said it preserved flexibility to ensure access and avoid waste, and the bill passed 57-36.

Transcript Highlights:

• Is there a motion on item number nine, H.R. 115? I heard a motion.
• Motion on item number nine, H.R. 115. I heard a motion, a second. Secretary, please call the roll.
• On item number nine, H.R. 115 by Assembly Member Ward. Absent members, Lacky.

Committee: House Rules

Transcript Highlights:

• would have had to be able to enforce such an idea is going to be cleared away by the requirement from H.R
• . 1.
• would have had to be able to enforce such an idea is going to be cleared away by this requirement from H.R
• . 1.

Summary: Senate and House Democratic leaders said they were pleased with progress before cutoff, highlighting work on immigration/federal-overreach protections and affordability measures. They cited bills such as restrictions on ICE activity in private spaces, employer notice requirements for ICE worksite actions, housing expansion in commercial and mixed-use zones, limits on medical debt interest, senior property tax relief, grocery-store covenant restrictions, preventive health care access, energy relief for low-income households, and the proposed millionaire’s tax, which they said would support tax credits and long-term fiscal sustainability. They also noted strong bipartisan movement on many bills and said they were now focused on processing House bills in the Senate and vice versa. Several stalled or controversial measures were discussed. Leaders said the JR bill did not advance in the House because it lacked votes, though support had grown and stakeholder engagement continued. Child welfare and controlled-substance/endangerment bills were described as still under discussion, with lawmakers saying there were differing views on the best way to protect children and that some proposals were paused for further work. The Senate-side transmission and cultural resources package also ran into procedural and timing problems, with one bill ultimately not moving after a request for a full reading delayed the plan. The governor’s comments on the millionaire’s tax and the updated revenue forecast were a major topic. Democrats said they welcomed the governor’s tax ideas, were aiming to balance meaningful tax relief with a sustainable budget, and saw the forecast as providing some breathing room and more reserve capacity, though much of the new revenue would be absorbed by caseload growth and maintenance costs. They also discussed a proposed employer assessment tied to Medicaid-funded health coverage, saying it was intended to address federal cuts and shifting costs, while acknowledging concerns from employers and nonprofits. Other items included the tort-liability/survivor claims bill, which leaders said would preserve jury trials and damages while creating a claims process, the 0.05 BAC impaired-driving bill, and a pension-related proposal to terminate and restate LEOFF Plan 1, with some related transfer ideas still unresolved.

Transcript Highlights:

• H.R. 1, the federal reconciliation bill signed last year, makes significant changes to Medicaid eligibility
• This fund would capture any savings resulting from reduced Medi-Cal enrollment caused by H.R. 1.
• . 1.
• We will open up file item number 1, SB 895.
• So this one, 8-1. 8-1, that bill is out. I want to thank everyone who presented today.

Committee: Senate Health

Summary: The Senate Health Committee heard several bills focused on health care access, research funding, consumer protection, and insurance administration. SB 895 by Sen. Wiener would create the California Foundation for Science and Health Research and place a bond measure on the November 2026 ballot to support scientific and health research in California; supporters from UC, labor, and patient groups said it would protect jobs, public health, and the state’s research leadership amid federal funding cuts, while the committee later voted 6-0 to pass it as amended and re-refer it to Natural Resources and Water. SB 944 would make acupuncture a permanent Medi-Cal benefit regardless of federal matching funds; acupuncture providers, patients, health systems, and API community advocates testified in strong support, and the committee voted 6-0 to pass it as amended and re-refer it to Appropriations. The committee also considered SB 987, which would create a California Health Access Fund to capture state savings if federal Medicaid changes under H.R. 1 reduce Medi-Cal enrollment and redirect those funds to care for people who lose coverage and to reimburse safety-net providers. Support came from disability, consumer, family physician, emergency physician, hospital, and reproductive health groups; members discussed prioritizing indigent care, prevention, and safety-net needs, and the bill was moved on a unanimous vote to Appropriations. SB 964 would let a licensed provider adjust the dose or frequency of an already covered medication up to two times without prior authorization when clinically appropriate, with Crohn’s and Colitis advocates describing delays that harmed patients and insurers warning about safety and cost concerns; after committee discussion about off-label use and clinical safeguards, the bill passed 11-0 and was sent to Appropriations. Later, SB 1099 clarified local governments’ authority to provide state or local public benefits to all residents under PRWORA, with city and county counsel and local officials saying it would preserve flexibility for homeless outreach, street medicine, crisis lines, and other low-barrier services; it passed 11-0 and was re-referred to Human Services. SB 1033 would require protein product manufacturers to test for heavy metals and disclose results, prompted by Consumer Reports findings and supported by consumer, health, and women’s health groups; industry witnesses asked for narrower scope and source-level testing, and the committee voted 11-0 to pass it as amended and send it to Environmental Quality. The committee then began SB 1049, which would give providers a 90-day window after a plan’s latest action to correct certain claim errors and prevent denials based solely on missed filing deadlines; the author said it would address honest billing mistakes and recoupments, and the bill was introduced with support from medical groups and ongoing discussions with health plans.

Transcript Highlights:

• On July 4, 2025, H.R. 1, commonly known as the Big Beautiful Bill, became law.
• For SNAP recipients who seek to receive benefits past the federal three-month limit, H.R. 1 now requires
• In H.R. 1, that bill specifically mandates work requirements in states that have expanded Medicaid.
• In H.R. 1, that bill specifically mandate.
• In H.R. 1, that bill specifically mandates work requirements in states that have expanded Medicaid.

Summary: The Senate convened with a quorum, opened with prayer and the Pledge of Allegiance, and recognized several introductions and memorials, including a resolution designating August 9, 2026, as Bob Graham Day and a moment of silence for firefighter Roger Timmy Miley. The chamber then moved through a long special-order calendar, with several bills substituted with House companions and adopted by voice vote or recorded vote. Early measures included a tax conformity bill tied to federal Internal Revenue Code changes, which passed 34-0, and a Medicaid/public assistance bill that drew extensive debate over work requirements, fraud reduction, behavioral health services, and SNAP/EBT reforms. Amendments offered by Senators Berman and Osgood to condition or soften the work and photo-ID provisions were rejected, and the underlying bill was placed on the third-reading calendar after lengthy questioning about implementation, exemptions, and eligibility effects. The Senate also passed bills on computer science education and AI instruction, a Parkinson’s disease registry public-records exemption and registry update, designation of the SS American Victory as Florida’s official state flagship, electronic payments for local governments, repeal of the legal-tender sunset for gold and silver, public-records protections for gold/silver custodians and stablecoin-related entities, a Florida stablecoin pilot program, and local government budget transparency/spending measures. Most of these measures were adopted after minor amendments or technical substitutions, with votes generally ranging from 31-3 to 34-0. The chamber also recognized the Florida Channel’s 30 years of legislative coverage. Later, the Senate approved a digital voyeurism bill expanding the reasonable-expectation-of-privacy definition to include private fenced yards, and an insurance customer representative licensing bill allowing high school students to complete insurance/personal finance coursework and later qualify for licensure. The final major item was a medical freedom bill that would expand parental vaccine information requirements, add a conscience-based exemption to immunization mandates, allow behind-the-counter ivermectin for adults, and repeal the sunset on the mRNA mandate prohibition; two amendments clarifying anti-kickback rules and requiring vaccine information to include risks, benefits, safety, and efficacy were adopted, while questions from Senators Smith and Massullo focused on public-health impacts and the content of the required materials. The transcript ends during discussion of that bill, with no final vote shown in the excerpt.

Transcript Highlights:

• The gentleman from Texas is recognized for 1 hour. Mr.
• But let's be honest, the CMS itself said that there is less than 1% of fraud in the system.
• Votes will be taken in the following order: motions to suspend the rules and pass H.R. 1442 and H.R.
• Without objection, the title of H.R. 1442 is amended.
• </c><08:04:37.920><c> of</c> are vulnerable because even if 1% of are vulnerable because even if 1% of

Bills: HJR60 , HB1442 , HR859 , HR1402 , HR354

Keywords: Glen Canyon, National Park Service, environmental regulation, motor vehicles, congressional disapproval, sodium nitrite, poisoning prevention, consumer product safety, banned hazardous product, youth poisoning, public health, toxic chemicals, online sales, retail regulation, industrial chemicals, food additives, meat curing, poultry products, egg products, FDA

Transcript Highlights:

• And whereas in 1979, Washington State Congressman Mike Lowry introduced H.R. 5977 to provide reparations
• And whereas in 1979, Washington State Congressman Mike Lowry introduced H.R. 5977 to provide reparations
• third highest agricultural commodity produced in Washington, with an economic impact valued at over $1

Summary: The Senate first handled routine business, including approving the previous day’s journal, receiving House messages transmitting House Bill 73 and Second Substitute House Bill 1784, and referring Senate Bill 6353 to the Committee on State Government, Tribal Affairs, and Elections. It then moved to resolutions. Senate Resolution 8687, commemorating the 84th anniversary of Executive Order 9066 and acknowledging the incarceration of Japanese Americans during World War II, drew extensive remarks in support from several senators. Speakers emphasized the injustice of the internment, the contributions of Japanese American veterans and civil rights activists, the importance of remembrance, and the need to prevent similar abuses in the future. The resolution was adopted by voice vote. The Senate also considered Senate Resolution 8688, recognizing Washington’s dairy farms and the role of dairy producers in the state’s economy and communities. Senators shared personal ties to dairy farming and praised the hard work of family farms, dairy workers, and industry representatives. The resolution was adopted by voice vote, and visiting members of the Washington State Dairy Council, Dairy Women’s Organization, and Dairy Ambassadors were recognized in the gallery. At the close of business, the Senate agreed to adjourn until 12:30 p.m. on Thursday, February 19, 2026.

Transcript Highlights:

• H.R. 1, the federal reconciliation bill signed last year, makes significant changes to Medicaid eligibility
• . 1.
• But just my two cents is we've got to figure out what are the biggest holes we have left after H.R. 1
• We will open up file item number 1, SB 895.
• So this one. 8-1. 8-1, that bill is out. I want to thank everyone who presented today.

Summary: The Senate Committee on Health heard several health-related bills, with extensive public testimony and multiple roll-call votes. SB 895, by Senator Wiener, would create the California Foundation for Science and Health Research and place a bond measure on the November 2026 ballot to support science and health research in California amid federal funding cuts. The author and UC researchers argued the measure would protect jobs, public health, and the state’s research leadership; many universities, labor groups, and patient advocates testified in support, and there was no opposition. The committee members praised the bill, and it passed 6-0 to the Committee on Natural Resources and Water. SB 944, also by Senator Wiener, would make acupuncture a permanent Medi-Cal benefit regardless of federal matching funds. Supporters, including acupuncturists, patients, community organizations, and health access advocates, described acupuncture as effective, low-cost, and culturally important care; there was no opposition. The committee discussed access for API communities and Medi-Cal patients, and the bill passed 6-0 to the Committee on Appropriations. SB 987, by Senator Wiener, would create a California Health Access Fund to capture state savings if federal Medicaid changes cause Medi-Cal enrollment losses, with the goal of redirecting those savings to care for affected patients and providers. Support came from disability, consumer, family physician, emergency physician, psychiatric, medical, and safety-net hospital groups. Committee members discussed prioritizing indigent care, prevention, and other vulnerable populations if savings materialize. The bill passed 8-0 to Appropriations. SB 964, by Senator Smallwood-Cuevas, would limit prior authorization barriers by allowing certain dose or frequency adjustments for covered medications without repeated authorization, up to two clinically appropriate changes. The bill was supported by a Crohn’s and colitis patient and sponsor testimony describing delays in care, while health plans and insurers opposed it over safety, FDA-labeling, and cost concerns. Committee members raised questions about off-label use and clinical standards, but the author said the bill was intended to reduce delays and avoid emergency care; it passed 11-0 to Appropriations. SB 1099, by Senator Reyes, would clarify local governments’ authority to provide state and local public benefits to all residents under PRWORA-related exemptions, to reduce legal uncertainty for local safety-net programs. County counsel and city attorney representatives said the bill would preserve local flexibility to provide services such as health care, shelter, crisis response, and food distribution without unnecessary eligibility barriers; there was no opposition, and the bill passed 11-0 to the Committee on Human Services. SB 1033, by Senator Padilla, would require manufacturers of protein products to test for heavy metals and disclose results. Supporters cited Consumer Reports findings of lead, cadmium, arsenic, and mercury in protein powders and beverages, while opponents asked for narrower scope and raised concerns about naturally occurring metals and over-warning consumers. The committee discussed narrowing the bill and the need for transparency, and it passed 11-0 to the Committee on Environmental Quality. Finally, SB 1049, by Senator Weber-Pearson, would give providers a fair opportunity to correct certain claim errors after a health plan action, rather than being barred by original filing deadlines. An OBGYN testified that a missing diagnostic code led to large clawbacks and delayed payments despite appropriate care; the bill was presented as a limited fix for honest mistakes. The transcript ends during testimony on SB 1049, before a final vote is shown.

Transcript Highlights:

• H.R. 1, the federal reconciliation bill signed last year, makes significant changes to Medicaid eligibility
• This fund would capture any savings resulting from reduced Medi-Cal enrollment caused by H.R. 1.
• . 1.
• We will open up file item number 1, SB 895.
• We will move back to file item number 1, SB 895.

Committee: Senate Health

Transcript Highlights:

• And then, to look at our report and give you a synopsis of the way that it's organized: Tables 1 through
• And of course, we know the crisis is compounding with H.R. 1.
• Won't go through all the details of the implications of H.R. 1, but one is that humanitarian immigrants—so
• going to lose Medicaid funding and the Covered California premium assistance because of this change in H.R
• . 1.

Transcript Highlights:

• I rise today to present H.R. 35, designated in the month of May as Asian American and Pacific Islander
• Ayes 62, noes 1, the measure passes. Item 69 and 70, pass and retain.
• Ayes 53, noes 1, the measure passes. Item 89 through 93, pass and retain.
• Ayes 64, noes 1. The measure passes. Item 96, pass and retain.
• All those in favor, call the roll and tally the votes, ayes 69, noes 1, the measure passes.

Transcript Highlights:

• Jeremy Woldridge, State Representative, District 1.
• We now have West Little Rock as Title Town for the 1 to 4A State Championship swim and dive team.
• I'd like to go to H.R. 1048.
• H.R. 1048. Would you please introduce yourself again for the record, and then you may begin?

Committee: All HOUSE MANAGEMENT

Transcript Highlights:

• is less than 1% of our budget
• Receive a nearly $1 million loan minute.
• Over 1 billion of Department of Justice.
• And in this reconciliation bill, H.R. 1, there is a provision that would ignite a school choice revolution
• . 1.

Bills: HB2966

Keywords: citizenship, small business, loan eligibility, immigration status, entrepreneurship

Transcript Highlights:

• First, file item number 1, AB 1088 by Assembly Member Baines.
• File item number 1, AB 1088 by Assembly Member Baines, and file item 5, AB 1779 by Assembly Member Davies
• Recent analysis projects the federal health care coverage reductions associated with H.R. 1 could result
• When H.R. 1 is inevitably enacted, it will result in significant coverage losses, clinicians will need
• . 1 cuts and what it's going to do to those same communities as well.

Committee: Senate Health

Transcript Highlights:

• 14, 11, 14, 11, 1, 15, 1, 14, 1, 14, 1, 14, 1, 14, 1, 1, 15, 1, 15, 1, 15, 12, 12, 14, 14, Thank you
• Ayes 58, noes 1. The measure passes.
• Ayes 61, noes 1. The measure passes.
• 1 sports within the last decade.
• 1 sports within the last decade.

Summary: The Assembly convened after a quorum call, prayer, and pledge, then moved through a long Daily File with several major policy bills and multiple commemorative resolutions. The most debated measure was AB 379 on human trafficking and child exploitation. The bill was presented as a stronger, more comprehensive version that increases penalties for adults soliciting minors, adds a loitering offense tied to purchasing commercial sex, raises fines for businesses that facilitate trafficking, creates a Survivor Support Fund, and establishes grants for victim services and vertical prosecution. Several members spoke in support, while Assemblymember Sharp-Collins raised concerns that the loitering provision could be vague and disproportionately enforced against Black, Brown, and LGBTQIA+ people. The bill passed after debate, with the clerk reporting 72 noes and the measure still passing. The Assembly also passed AB 1415, which expands the Office of Health Care Affordability’s authority to review more health systems, private equity and hedge fund acquisitions, and managed service organizations in order to better track cost drivers and medical debt. Other policy bills approved included AB 711 on coordinating court reporters for motion hearings, AB 1142 on horse event entry fees, AB 309 on preserving access to sterile syringes for HIV and hepatitis prevention, AB 358 on allowing victims to consent to searches of hidden surveillance devices like AirTags and spy cameras, AB 592 on outdoor dining for restaurants, AB 1341 on clarifying contractor licensing violations, AB 752 on easing child care center siting, AB 1166 on extending debt-settlement rules to commercial financing, AB 806 on mobile home resident cooling rights, AB 972 on explicit sex discrimination protections in higher education, AB 416 on emergency room 5150 authority, AB 632 on expedited collection of penalties for serious local code violations, AB 672 on PERB notification and intervention rights, AB 876 on CRNA scope of practice, and AB 760 on temporary mobile home housing after disasters. Most of these measures passed with broad bipartisan support, though AB 672 drew sharp opposition from Assemblymember DeMaio over concerns about PERB and state bureaucracy. The chamber also adopted several resolutions recognizing May observances and public service groups. These included ACR 63 designating May as California Fairgrounds Appreciation Month, ACR 69 for California Physical Fitness and Mental Well-Being Month, ACR 76 for California Small Business Month, ACR 77 for Drowning Awareness and Prevention Month, HR 36 for Lung Cancer Action Week, HR 39 for National Public Works Week, and HR 41 for National Hospital Week. Members used the resolutions to highlight local institutions, public health, and community services, and each was adopted after co-author rolls and voice votes. The session ended after the Assembly completed the day’s file and moved through a series of routine procedural motions and adjournment-related business.

Transcript Highlights:

• And do you know if that's like 1 percent of total filings? Is it 2?
• Providing health care for Californians here in California and the impact of H.R. 1.
• These Section 530A accounts were created under federal H.R. 1 and enacted in July 2025.
• I mean, there's so many other needs, not even counting the challenges that we're facing from H.R. 1,
• I mean, there's so many other needs, not even counting the challenges that we're facing from H.R. 1,

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

Transcript Highlights:

• Clerk, please record. 43 ayes, 1 nay; the at-large reading is dispensed with. Mr.
• All those in favor, vote aye; all those opposed, vote nay. 45 ayes, 1 nay.
• Clerk, please record. 41 ayes, 1 nay. The at-large reading is dispensed with. Mr.
• 2026, including any food offered to students after August 1, 2027, no public elementary or secondary
• Blue No. 1; B. Blue No. 2; C. Green No. 3; D. Red No. 40. A. Blue No. 1; B. Blue No. 2; C.

Bills: LB737 , LB753 , LB788 , LB913 , LB1055 , LB1195 , LB1216 , LB1256 , LB429 , LB721 , LB722 , LB727 , LB743 , LB745 , LB749 , LB778 , LB787 , LB365A , LB823 , LB900 , LB903 , LB940 , LB954 , LB1127 , LB1127A , LB1205 , LB1240 , LR293 , LR296 , LR422 , LR505 , LR507

Transcript Highlights:

• Pursuant to clause 1 of rule 1, the Journal stands approved.
• The Clerk: H.R. 2483.
• Under clause 13 of rule 1.
• The Speaker: Pursuant to clause 13 of rule 1, the House stands adjourned until 10:00 a.m. on SPEAKER
• THE SPEAKER: PURSUANT TO CLAUSE 13 OF RULE 1, THE HOUSE STANDS ADJOURNED UNTIL 10:00 A.M.