Transcript Highlights:

• 24.520><c> uh</c> in uh in uh uh<00:09:25.680><c> in</c><00:09:25.839><c> both</c><00:09:26.080><c> 27
• 27.400><c> So,</c><00:09:27.680><c> it</c><00:09:28.280><c> it's</c><00:09:28.839><c> um</c> uh in both 27
• So, it it's um uh in both 27 and 28.
• So, although we've been monitoring this issue since the passage of H.R. 1 last summer, which increased
• So, although we've been monitoring this issue since the passage of H.R. 1 last summer, which increased

Bills: HF3396

Committee: Senate Taxes

Keywords: property tax, task force, assessment, state revenue, local government

Transcript Highlights:

• Across counties, the shares range between 5% and 27%.
• Across counties, the shares range between 5% and 27%.
• These programs help families balance. 5% and 27%.
• Longer term, H.R. 1, which was passed in July 2023, makes pretty big changes to CalFresh.
• in California and 125,000 of their family members are affected by the work requirements specified in H.R

Summary: The joint informational hearing of the Assembly Committees on Economic Development, Growth, and Household Impact and Agriculture, held at Fresno State, focused on cost pressures in California’s food system, household affordability, and the Central Valley’s role in agriculture. Opening remarks emphasized Fresno State’s regional importance, the Central Valley’s outsized contribution to food production, and the connection between agricultural health, food security, and the broader economy. Members also noted the impact of the federal shutdown on CalFresh benefits and the state’s efforts to respond with food assistance funding and National Guard support for food banks. The first panel featured academic and policy experts who described agriculture’s economic importance in the San Joaquin Valley and the rising pressures on farms and households. Dr. Conduro highlighted agriculture’s large share of regional GDP, farm receipts, jobs, exports, and food manufacturing, while identifying water scarcity, SGMA-related land fallowing, labor shortages and rising labor costs, market volatility, invasive pests, and production cost inflation as major barriers. Caroline Danielson of PPIC said food prices remain about 30% above 2019 levels, food insecurity affects about 1.8 million California households, and nutrition programs such as CalFresh, WIC, and school meals are essential in reducing poverty, especially in the Central Valley. Susie Pryor of the Central California Small Business Development Center described technical assistance, capital access, and training for small food and farm businesses, while warning that reduced funding limits support for rural and immigrant entrepreneurs. The second panel brought testimony from a small produce business owner, a food entrepreneur, and the Fresno County Farm Bureau. They said input costs for fertilizer, fuel, irrigation, labor, land leases, and compliance have risen sharply while commodity prices have remained flat or fallen, squeezing small farms and food businesses. Panelists stressed the need for small-batch processing facilities, local supply chains, education on food manufacturing compliance, land access for small farmers, and more pathways into agriculture through trade programs, community colleges, and FFA. Ryan Jacobson said California agriculture is facing a prolonged downturn, with farm bankruptcies, weak commodity prices, export-market uncertainty, water reliability problems, and costly ag-burning rules all contributing to financial strain. No formal votes or legislative actions were taken; the hearing was informational and concluded with discussion of possible policy solutions and continued engagement with stakeholders.

Transcript Highlights:

• I too rise in support of H.R. 118, and I want to thank the member from Rancho Cucamonga for bringing
• and hopefully successful time for all of us, and with that, I respectfully ask for your aye vote on H.R
• I rise in great support of H.R. 118 by our colleague.

Summary: The Assembly convened after a quorum call, offered prayer and the Pledge of Allegiance, and then handled a series of procedural motions, including re-referrals of several bills and permission for committee notice changes. Members also made guest introductions, including anesthesia residents, family members, and a legislative intern. The body then took up House Resolution 118 by Assembly Member Garcia, welcoming the 2026 FIFA World Cup to California and highlighting the state’s host cities, economic benefits, and international goodwill. Several members spoke in support, emphasizing local hosting roles, cultural connections, and anticipated tourism and revenue. The resolution received 64 co-authors and was adopted by voice vote. On the daily file, the Assembly passed and retained or continued a number of items, then considered Assembly Concurrent Resolution 193 by Majority Leader Aguiar-Curry proclaiming 2026 the International Year of the Woman Farmer. Supporters described the role of women in California agriculture and the barriers they face; the resolution received 69 co-authors and was adopted. The Assembly also adopted Assembly Concurrent Resolution 210 by Assembly Member Jackson, establishing a sister-state relationship with Gauteng province in South Africa, with members speaking to economic, educational, and cultural ties; it received 65 co-authors and was adopted by voice vote. The second-day consent calendar was then taken up. House Resolution 113 by Assembly Member Jeff Gonzalez, on focal segmental glomerulosclerosis, was added to by 68 co-authors and the consent calendar passed 73-0. The remaining consent items were listed, and the Assembly proceeded to adjournment in memory statements for Norman L. Ford, Jr. and James McCain, Sr., followed by a moment of silence for each. The desk was ordered to remain open for budget-related business, and the House adjourned until Monday, June 15, upon the call of the Speaker.

Transcript Highlights:

• I too rise in support of H.R. 118, and I want to thank the member from Rancho Cucamonga for bringing
• fun and hopefully successful time for all of us, and with that, respectfully ask for your aye vote on H.R
• I rise in great support of H.R. 118 by our colleague.

Transcript Highlights:

• We are at the highest level ever in history and 27% increase just this year.
• This includes appropriations for fiscal year 27 for DED, DCI, and DOLIR.
• Because of the changes in H.R. 1.
• With 122 ayes and 27 nays, you have truly agreed and finally passed.
• I see the $27 million in there. Yes.

Summary: The House convened with prayer, approved the House Journal by a 107-1 vote, and then spent much of the day on introductions of guests, family members, interns, and public servants. Members recognized visitors including family of legislators, a park ranger honored for life-saving work, substance-use treatment advocates, nonprofit and apprenticeship program representatives, students, and staff. The chamber also received committee reports and Senate messages, including a conference committee appointment on House Bill 2818 and fiscal review reports recommending passage of Senate Bill 1020 and Senate Bill 1062. The main floor action centered on the state budget, especially House Bill 2 on public education. The budget chair explained the conference report as providing $8.4 billion for K-12 and the Office of Childhood, with disputes over funding sources and the foundation formula. Several members argued the bill underfunded schools by about $190 million and objected to using blind pension and projected ARPA/lottery-related funds; others defended the budget as record-level funding and emphasized that the total education dollars were unchanged, only the funding mix differed. A substitute motion to reject the conference report and send the bill back to conference failed 62-89, and the conference report on House Bill 2 was then adopted 83-68; the bill was third read and passed 83-68. The House then adopted and passed House Bill 3 on higher education, after debate over a proposed performance-based funding model and language directing the department to develop a new formula by the end of the year. Members generally supported keeping funding flat this year while studying a longer-term model. House Bill 4, covering Revenue and Transportation, was adopted 128-21 and passed 127-27, with discussion of rural roads funding and transportation investments. The House also took up House Bill 5 on the Office of Administration and IT consolidation/accountability, with the sponsor describing it as the central state-government operations bill; debate on that measure began before the transcript ended.

Transcript Highlights:

• accepted</c><00:27:49.200><c> to</c><00:27:49.360><c> the</c><00:27:49.440><c> United</c><00:27:49.679
• I am proud to<00:27:56.399><c> represent</c><00:27:56.880><c> each</c><00:27:57.120><c> one</c><00:27
• </c><02:27:06.399><c> We</c><02:27:06.800><c> must</c><02:27:07.760><c> and</c><02:27:08.000><c> we</
• /c><02:27:10.399><c> put</c><02:27:10.640><c> the</c><02:27:10.880><c> safety</c><02:27:11.359><c> of
• President<02:27:18.800><c> Trump's</c><02:27:19.439><c> tax</c><02:27:19.840><c> cuts</c><02:27:20.160

Bills: HR981 , HR1228 , HB1526 , HCR14 , SJR18 , SJR28 , HR313

Keywords: federal budget, deficit reduction, economic growth, national debt, bipartisan support, House resolution, congressional subpoena, subpoena enforcement, Oversight Committee, House Oversight and Government Reform, judicial proceedings, declaratory judgment, injunctive relief, House counsel, private counsel, contempt of Congress, Pamela J. Bondi, Department of Justice, DOJ records, Jeffrey Epstein

Transcript Highlights:

• I move to suspend all necessary rules to take up and consider H.R. 1339.
• You might want to look at lines 22 through 27. But these both apply.
• Lines 21 through 27: If a voting recommendation is made on a shareholder sponsor...
• There being 108 ayes and 27 nays, SB 2781 is finally passed. SB 2781 is finally passed.
• SCR 27 is out as a matter of postponed business on third reading.

Bills: SB15 , SB646 , SB800 , SB790 , SB748 , SB571 , SB1957 , SB1923 , SB1896 , SB1760 , SB1335 , SB2368 , SB2477 , SB2587 , SB2986 , SB2965 , SB1563 , SB1467 , SB1164 , SB1137 , SB614 , SB705 , SB918 , SB955 , SB869 , SB850 , SB863 , SB1055 , SB2206 , SB457 , SB2337 , SB1610 , SB1362 , SB926 , SB1494 , SB251 , SB456 , SB500 , SB1307 , SB2615 , SB2995 , SB2321 , SB2972 , SB973 , SB865 , SB506 , SB1522 , SB1558 , SB510 , SB667 , SB763 , SB2073 , SB1858 , SB1660 , SB2900 , SB1433 , SB1540 , SB1964 , SB1300 , SB1644 , SB2217 , SB2373 , SB2431 , SB1758 , SB974 , SB2480 , SB3039 , SB3047 , SB2781 , SB826 , SB766 , SB527 , SB1946 , SB2885 , SB1243 , SB2610 , SB857 , SB2501 , SB66 , SB268 , SB331 , SB1302 , SB519 , SB2807 , SB13 , SB7 , SB1718 , SB1567 , SB1233 , SB413 , SB2177 , SB30 , SB2024 , SJR1 , SCR27 , SB2018 , SB1580 , SB2121 , SB1049 , SB1266 , SB1400 , SB1596 , SB2753 , SB2221 , SB1719 , SCR9 , SB204 , SB437 , SB568 , SB612 , SB672 , SB710 , SB823 , SB876 , SB904 , SB905 , SB968 , SB1084 , SB1207 , SB1230 , SB1313 , SB1504 , SB1790 , SB2232 , SB2366 , SB2367 , SB2398 , SB2515 , SB2520 , SB2589 , SB2786 , SB2790 , SB3048 , SB3050 , SB3052 , SB3053 , SB3056 , SB3029 , SCR3 , SCR18 , SCR30 , HCR146 , HCR148 , HCR149 , HCR153 , HCR155 , HCR157 , HB5560 , HB762 , HB1584 , HB 107 , HB 114 , HB138 , HB4386 , HB2495 , HB581 , HB3348 , HB5323 , HB4341 , HB6 , HB2712 , HB171 , HB3153 , HB143 , HB2688 , HB3464 , HB449 , HB3486 , HB4263 , HB2 , HB1522 , HB24 , HB 1237 , HB2637 , HB3126 , HB3233 , HB4310 , HB3487 , HCR9 , HB5331 , HB1397 , HB163 , HB3250 , HB3071 , HB3463 , HB5033 , HB35 , HB3824 , HB216 , HB4226 , HB3512 , HB18 , HB5154 , HB 103 , HB851 , HB647 , HB4520 , HB3016 , HB2313 , HB2818 , HB2851 , HB4486 , HB4264 , HB1500 , HB5081 , HB2974 , HB2080 , HB4384 , HB5659 , HB493 , HB4903 , HB2516 , HB4488 , HB4530 , HB3689 , HB145 , HB43 , HB5247 , HB2221 , HB5671 , HB700 , HB3711 , HB 120 , SB17 , SB1637 , SB1833 , SB2155 , SB21 , SB2778 , SB379

Keywords: SB 15, Texas Local Government Code, zoning preemption, housing affordability, small lots, lot size, lot density, single-family zoning, residential subdivision, municipal land use, local control, state preemption, parking requirements, setbacks, infill development, missing middle housing, lot width, lot depth, homebuilders, housing supply

Transcript Highlights:

• Madam Chair, I'd like to go to H.R. 1048.
• Steven Walker, District 27. You may begin. Thank you, Madam Chair and committee.
• This year, the deadline was March 27, which is Friday.

Committee: All HOUSE MANAGEMENT

Summary: House Management considered a series of House resolutions honoring individuals, teams, and organizations. Resolutions passed recognizing April as Child Abuse Prevention Month and commending CASA programs, the Mountain Home Bombers’ boys and girls cross-country championships, a corrected honor for a girls’ team roster, Mount St. Mary Academy’s state golf title, Central Arkansas Christian High School Choir, a local candy shop, Joe T. Robinson’s football and swim/dive state championships, Arkansas Tech University’s Golden Suns and their cross-country team, and North Little Rock’s girls basketball championship. One resolution honoring the Passion Play was pulled from the agenda and moved to regular session. Most of the honors were approved without opposition after brief presentations and no questions. The committee then took up House Resolution 1052, which drew extended discussion. Sponsors and several legislators argued that many Arkansas girls selected for Girls State were being denied participation because school counselors missed an application deadline, despite the students meeting requirements and similar deadline flexibility having been granted in prior years. They said the issue affected roughly 150 girls statewide, that the American Legion Auxiliary board had not been responsive to calls or requests for a meeting, and that the legislature was offering to help with space, funding, or volunteers if needed. Supporters framed the resolution as a matter of fairness, civic opportunity, and not punishing students for adult mistakes, especially since Boys State deadlines had been extended in some cases. Committee members asked about the impact on girls whose brothers were allowed to attend Boys State and whether the situation sent a negative message about equal opportunity. Sponsors said the girls were being treated unfairly and that the resolution was intended to urge the Auxiliary to allow participation. After discussion, the committee voted to pass the resolution. The meeting then adjourned.

Transcript Highlights:

• This H.J.R. 154 is intended to mirror the legislation that was passed in Washington, D.C., as part of H.R
• Well, because this is going to take effect January 1 of '27 irrespective of what we do or do not do here
• We've talked, as you said, a lot about H.R. 1 implementation and the potential financial repercussions
• on whether or not the language in your H.J.R. would be helpful or hurtful to the implementation of H.R

Summary: The House first established a quorum after introductions of special guests, then moved to bills for perfection. House Bill 2016, concerning anti-Semitism in Missouri schools, colleges, and universities, drew extensive debate. The sponsor said the bill would require educational institutions to adopt non-discriminatory policies protecting Jewish students from harassment and intimidation, use the IHRA definition as a guide, and preserve First Amendment rights. A Pulaski County member offered and secured adoption of an amendment clarifying that protected political, religious, and expressive speech would not be reported, cataloged, or used to create records. Supporters said the bill was needed because of rising anti-Semitic incidents and student safety concerns; opponents argued it singled out one group, could chill discussion of Israel and Palestine, and created a reporting hierarchy. The chamber ultimately adopted the amendment and then ordered the bill perfected and printed. House Bill 2384, a housing and building-code measure, was then taken up. The sponsor said it was aimed at reducing housing costs by rolling back energy-code mandates to 2009 standards, setting clearer permitting timelines, and allowing certain multifamily buildings to use a single staircase. Supporters framed it as a response to Missouri’s housing shortage and rising home prices, while opponents criticized the bill as preempting local control, especially in Kansas City and other municipalities that had adopted newer codes. A Pulaski County amendment was adopted to reduce the number of required hard copies of municipal ordinance books when ordinances are available online. After debate over energy efficiency, safety, and local authority, the House moved the previous question, then adopted the committee substitute and ordered the bill perfected and printed. House Bill 1766, dealing with personal property tax and Hancock limitations, was also perfected and printed. The sponsor said the bill would treat personal property tax growth more like real property under Hancock-style limits, arguing that rapid increases in vehicle values had created windfalls for political subdivisions. Members questioned whether the change would reduce local revenue needed for schools and other services, while supporters said it would protect taxpayers and still allow growth. The House then took up House Joint Resolution 154, which would place a Medicaid work requirement in the Missouri Constitution by mirroring federal policy. The sponsor said it would require able-bodied adults ages 19 to 64 to work, volunteer, attend school, or participate in a work program for 80 hours a month to remain eligible. Opponents raised concerns about administrative burden, documentation requirements, and the impact on vulnerable recipients, while supporters argued the measure should be made permanent through the constitution. The transcript cuts off during that debate, before final action on the resolution is shown.

Transcript Highlights:

• We've lost military retirees by 27% since 2000, while the U.S. has gained.
• this tax credit so that it didn't fall on the counties, especially as they're looking at the cost of H.R

Summary: The Committee on Revenue and Taxation met with a quorum and heard five bills, most of them tax exemptions or credits aimed at housing, veterans, and seniors. SB 1096, as amended, would provide a $1,500 tax credit for certain grandparents and other caregivers for tax years 2026 through 2030, with income-based phaseouts, a seven-year carryforward, and exclusions for dependents receiving foster care payments. Members praised the author’s amendments and the bill passed unanimously to Appropriations. The committee also heard AB 672, extending a property tax welfare exemption for community land trust projects that create or rehabilitate low-income housing, and AB 1668, extending for five years the welfare property tax exemption for nonprofit land trusts that protect open space and recreational lands. Supporters for both bills emphasized permanent affordability, stewardship of natural lands, and relatively small public costs compared with the housing and conservation benefits. AB 672 and AB 1668 each passed unanimously to Appropriations, though AB 1668 drew one respectful opposition from the California Teachers Association. AB 2022 would expand the property tax exemption for disabled veteran homeowners, increasing the exemption for low-income veterans to 100% and to 50% of assessed value for others, while preserving current benefits through a loophole-closing amendment. The author and veteran advocates argued the bill would help keep disabled veterans and their families in their homes and make California more competitive with other states. The bill passed 5-0 to the Committee on Military and Veterans Affairs. AB 2641 was placed on the consent calendar and adopted without objection.

Transcript Highlights:

• We've lost military retirees by 27% since 2000, while the U.S. has gained.
• this tax credit so that it didn't fall on the counties, especially as they're looking at the cost of H.R

Committee: Senate Revenue and Taxation

Transcript Highlights:

• And whereas in 1979, Washington State Congressman Mike Lowry introduced H.R. 5977 to provide reparations
• and whereas cows were first brought to Washington in 1838, and whereas dairy farms can be found in 27

Summary: The Senate opened by approving the previous day’s journal, receiving messages from the House, and referring newly introduced Senate Bill 6353 to the Committee on State Government, Tribal Affairs, and Elections. The chamber then moved to resolutions. Senate Resolution 8687, commemorating the 84th anniversary of Executive Order 9066 and recognizing Japanese American veterans, incarcerees, and civil rights activists, was presented and adopted. Several senators spoke in support, describing the wartime incarceration of Japanese Americans as a grave civil rights injustice and emphasizing remembrance, healing, and the need to prevent similar abuses in the future. The Senate also adopted Senate Resolution 8688 honoring Washington’s dairy farms and dairy workers. Senators highlighted the industry’s economic importance, family farm traditions, and the hard work involved in dairy production, with some members sharing personal family and farming experiences. After adoption, the Senate welcomed representatives of the Washington State Dairy Council, Washington State Dairy Women’s Organization, and Dairy Ambassadors Apprentices to the gallery. The Senate then adjourned without objection until 12:30 p.m. on Thursday, February 19, 2026.

Transcript Highlights:

• </c><00:27:03.840><c> or</c><00:27:04.080><c> do</c><00:27:04.240><c> you</c><00:27:04.400><c> want</
• </c><00:27:24.240><c> is</c><00:27:24.480><c> about</c><00:27:25.360><c> defunding</c><00:27:26.240><
• ><c> the</c><00:27:32.559><c> Republican</c><00:27:33.360><c> one</c><00:27:33.760><c> big</c><00:27:
• </c><00:27:42.000><c> a</c><00:27:42.159><c> trillion</c><00:27:42.559><c> dollars</c><00:27:43.039><
• ><c> in</c><00:27:48.559><c> their</c><00:27:48.799><c> one</c><00:27:49.039><c> big</c><00:27:49.440

Bills: HB7147 , HR1142

Keywords: appropriations, fiscal year, budget, consolidated spending, government funding, consolidated funding, government spending

Transcript Highlights:

• DOR estimates a decrease in the general fund of $1.3 million in the 2025-27 biennium and a decrease of
• And they anticipate expenditures of about $731,000 in the 2025-27 biennium and $851,000 in the 2027-29
• And in this time when we've got a budget issue, we've got impacts from H.R. 1.
• A lot of those folks are on Medicaid, Medicare, and we're seeing H.R. 1 decreases.

Summary: The committee heard briefings, sponsor presentations, and public testimony on several finance bills. HB 2038 would impose an additional B&O tax on businesses operating social media platforms beginning in 2027 and create a youth behavioral health account funded by the tax. The sponsor argued the bill would help address youth mental health harms linked to social media and support implementation of the Washington Thriving plan. Supporters in testimony, including youth advocates and some public health voices, said social media contributes to youth anxiety and addiction and that the revenue should be used for behavioral health services. Opponents, including technology and business groups, argued the tax unfairly singles out one sector, could be passed on to consumers, and may violate federal internet tax law. The hearing on HB 2038 was suspended and later reopened for public testimony; no vote was taken. HB 2297 would create tax incentives for grocery stores in underserved communities, including local B&O preferences, a sales tax exemption for security services, a 30-year property tax exemption program, a B&O tax credit, and a B&O exemption for certain locally owned or employee-owned stores. The sponsor and supporters said the bill is intended to preserve and attract grocery stores in food deserts, especially after recent store closures, and to help communities with limited transportation and access to healthy food. County representatives supported the goal but raised concern about the bill’s sales tax exemption and its effect on local revenues. Public testimony was largely supportive, with advocates, local officials, grocers, and residents describing grocery stores as essential community infrastructure. No action was taken. HB 2382 would raise cigarette taxes by $2 per pack, restructure vapor and other tobacco product taxes, and dedicate portions of the revenue to a time-sensitive emergency system, tobacco enforcement, and the foundational public health services account. The sponsor said the bill would generate needed revenue, support cancer research funding, and strengthen public health and enforcement. Supporters said higher tobacco taxes reduce use and help cover long-term health costs, while some public health witnesses supported the revenue but suggested directing more funds to existing tobacco prevention accounts. Opponents from retail and industry groups argued the proposal is regressive, could increase illicit sales and cross-border purchasing, and would hurt small businesses and low-income consumers. The committee also heard HB 2487, a Department of Revenue request bill that would narrow the B&O exemption for insurers to clarify that it applies only to premium income subject to insurance premium tax, and apply the change retroactively to 2019. The sponsor and supporters said the bill closes a loophole created by a recent Supreme Court ruling and preserves tax equity, while insurers and business groups objected to the retroactive application, warning of higher premiums and unfair taxation. Finally, HB 2018 would increase the solid waste tax by 0.5% per year for five years and direct the new revenue to a local government solid waste assistance account for county and city waste management plans. County officials supported the bill as a way to stabilize funding for solid waste systems, and testimony emphasized rising disposal and infrastructure costs. No votes were taken on any of the bills during the hearing.

Transcript Highlights:

• The add-on rate stays the same currently, but recent federal regulations from H.R. 1 prohibit states
• I've been in EMS for 27 years. The QAF is probably the most impactful bill that we've seen.
• Without this new alignment with H.R. 1, this program becomes at risk, and we really don't want to go
• emergency hospital if the facility was enrolled and certified to participate in Medicare as of December 27

Bills: SB5845 , SB5916 , SB6102 , SB6071 , SB6103 , SB6159 , SB5877 , SB5967 , SB5904 , SB5915 , SB6025

Committee: Senate Health & Long-Term Care

Keywords: health insurance, health carrier, insurance carrier, prompt pay, timely payment, claims processing, clean claim, remittance advice, provider reimbursement, hospital billing, medical billing, prior authorization, claims denial, interest on late claims, administrative penalty, Washington insurance commissioner, RCW 48, public employees benefits board, school employees benefits board, Medicaid managed care

Transcript Highlights:

• program, one to check in on how things are going with the Rural Health Transformation Program as part of H.R
• state of Oregon and what's going on with the marketplace in light of some things from last year in H.R
• Check in on how things are going with the Rural Health Transformation Program as part of H.R. 1.
• state of Oregon and what's going on with the marketplace in light of some things from last year in H.R
• This is all pre-H.R. 1, sure. Yes. There are some people who... H.R. 1, sure. Yes.

Summary: The committee held an informational hearing focused first on Oregon Medicaid coordinated care organization (CCO) finances and rate setting. Oregon Health Authority staff explained how 2025 CCO financial results will inform 2027 capitation rates, including reserve requirements, subcapitation arrangements, and major cost drivers such as behavioral health, pharmacy, rural hospital costs, and dental directed payments. They said the Legislature’s added 2025 funding materially improved CCO margins and that, without it, the program would have been negative overall. Members asked about retained earnings, subcapitation, behavioral health utilization, ABA therapy, and whether outcomes are being evaluated; OHA said rate setting is actuarial and that CCOs, OHA, and other partners all play roles in monitoring efficacy and access. OHA also reviewed House Bill 4039 changes intended to increase transparency and give CCOs earlier access to rate information and reconciliation exhibits. CCO representatives then testified that the system is under significant financial pressure and that behavioral health state-directed payments, benefit changes, and federal uncertainty from H.R. 1 are reducing flexibility. CareOregon said it has lost more than $500 million over the last couple of years and is now making provider terminations and other network changes to align spending with available funding, while emphasizing that CCOs must make hard decisions about which services and providers can be sustained. Eastern Oregon CCO said rural and frontier factors, cost-based hospitals, air ambulance needs, and statewide efficiency adjustments are not fully reflected in rates, and that dental funding is especially strained. Trillium similarly warned that state-directed payments and benefit expansion pressures are constraining the global budget model and that H.R. 1 could worsen acuity and volatility. Members pressed the witnesses on who is responsible for evaluating treatment effectiveness, especially for ABA and psychotherapy, and on how utilization limits and reimbursement changes are being used to control costs. The committee then shifted to an overview of the Affordable Care Act and Oregon’s commercial insurance market. Department of Consumer and Business Services staff explained actuarial value, metal tiers, premium tax credits, medical loss ratio rules, and the main drivers of premium rates: cost trend, utilization trend, and administrative costs. They said mandates have likely added only a limited amount to premiums over the past decade, though the exact effect is difficult to isolate, and they gave examples of how high-cost, low-volume services versus broad, high-utilization services can affect rates differently. Staff also noted that Providence Health Plan and PacificSource Health Plans are withdrawing from the individual market, though consumers should still have at least three insurer options in every county and may have four in many counties. The division said it is in the middle of reviewing proposed 2027 rates and will continue its public rate review process, including hearings and written comment.

Transcript Highlights:

• For favor, no agraven the cruelty of H.R.1.
• Please do not put H.R.1 in this state of California? Sorry. No in English, it's okay. Sorry.
• For favor, no agraven the cruelty of H.R.1.
• Please do not put H.R.1 in this state of California? Sorry. No in English, it's okay. Sorry.
• Particularly with H.R. 1, working families are hurting while these exact companies achieve record profits

Transcript Highlights:

• For favor, no agraven the cruelty of H.R. 1.
• Please do not put H.R. 1 in this state of California. Sorry. Really sorry.
• For favor, no agraven the cruelty of H.R.1.
• Please do not put H.R.1 in this state of California. Sorry. Really sorry.
• Particularly with H.R. 1, working families are hurting while these exact companies achieve record profits

Summary: The joint informational hearing examined California’s taxation of multinational corporations, especially the state’s water’s-edge election versus worldwide combined reporting. The LAO and Franchise Tax Board explained the basic mechanics of unitary taxation, apportionment, and how water’s-edge generally excludes most foreign subsidiaries while worldwide reporting includes the full unitary group. FTB officials said water’s-edge filers are a small share of corporate filers but account for a large share of tax liability, and they described filing trends, industry mix, and the administrative steps needed to administer either system. Members and witnesses debated the policy trade-offs. Supporters of moving away from water’s-edge argued that it enables profit shifting, especially for large multinational and IP-heavy firms, and that eliminating it could raise significant revenue and improve fairness for smaller domestic businesses. They cited estimates of billions in potential revenue and said California already has the audit and reporting infrastructure to handle worldwide reporting, though some transition time would be needed. Opponents argued that worldwide reporting would tax foreign activity unrelated to California, create double taxation, increase compliance burdens and litigation, and could be difficult for foreign-based multinationals to document. They also warned that some of the revenue estimates are highly uncertain because foreign affiliate income is not directly observable. Committee members asked about foreign government pushback, the risk of companies leaving California, the effect on intellectual property shifting, and whether federal or Supreme Court action could block a change. Witnesses generally said major firms would be unlikely to leave because California taxes sales rather than physical presence, but some costs could be passed on to consumers. The panel also discussed alternatives such as conforming to federal international tax rules like NCTI/GILTI and adding anti-abuse rules. No vote or bill action was taken; the hearing was informational only.

Transcript Highlights:

• last session, the amount was changed to be 50 percent of the research rate starting in fiscal year 27
• regional and state college rate instead of 50 percent of the research rate, starting in fiscal year 27
• The fiscal impact of the bill before you was $3.3 million in fiscal year 27 and $18.6 million in GFO
• Chair, there are 27 ayes, two nays, and two excused. Mr.
• Chair, there are 27 ayes, two nays, and two excused.

Summary: The committee heard public testimony on Substitute Senate Bill 5828, which would restore and adjust Washington College Grant and College Bound Scholarship award levels for students attending private, not-for-profit four-year institutions. Staff explained the bill would set the awards at 90 percent of the regional and state college rate rather than 50 percent of the research rate, with an estimated fiscal impact of $3.3 million in fiscal year 2027 and $18.6 million over four years. Testimony was largely in support from private college presidents, students, and school counselors, who said the bill would help low-income and first-generation students and preserve access and enrollment choices; some public college student representatives said they did not oppose the bill but argued that cuts to public-school aid should be restored first. The committee also heard Substitute Senate Bill 5911, which would prohibit DCYF from using benefits or funds of youth in extended foster care as reimbursement for their cost of care beginning in 2027, while requiring support for benefit management and payee arrangements and allowing protected accounts such as ABLE accounts. Staff estimated a net fiscal impact of $608,000 in fiscal year 2027 and $2.2 million per biennium thereafter. Testimony in support said the bill would end the practice of withholding SSI and other benefits from youth in care and better support disabled youth transitioning to adulthood. Members asked questions about fiduciary responsibility and representative payee arrangements. In executive session, the committee adopted amendments and advanced several bills. It adopted Amendment Clark 350 to House Bill 2689, raising the required provider response rate for the child care market rate survey to 65 percent, and then reported the bill out with a due pass recommendation by a vote of 18-11, with two excused. It adopted Amendment H-3743.1 to Engrossed Second Substitute Senate Bill 5395 on retrospective prior authorization denials and reported that bill out unanimously. It also adopted Amendment Pool 272 to Senate Bill 5420 and reported that bill out unanimously. For Engrossed Second Substitute Senate Bill 5496, the committee adopted several amendments clarifying scope and penalties but rejected amendments that would have delayed the bill or replaced it with a study; the bill was then reported out with a due pass recommendation. The committee also heard amendment briefings on other bills, including 5981, 6026, 6160, 6184, and 6211, but deferred action on some items heard that morning.

Transcript Highlights:

• There is a motion by Vice Chair Ogeron to move favorable on H.R. 279. Is there objection?
• We have 10 yeas and three nays, and we'll report H.R. 279 favorable.
• H.R. 279? Ms. Stalder, could you read that in, please? Thank you, Mr. Chairman.
• Okay, move favorable is the motion by Representative McHugh on H.R. 289.
• Seeing no objection, H.R. 289 is reported favorable.

Committee: House Natural Resources & Environment