Transcript Highlights:

• for a contract for that... ...solicitation of a request for proposal for a contract for that internal
• Yes, we oversee the contracts.
• and searchable state contracts.
• The first is OAG attorney's fees.
• , and technology contracts.

Summary: The Senate Finance Committee met to hear interim charges on higher education transparency and on preventing fraud, waste, and abuse in state government. The chair emphasized accountability for taxpayer dollars and asked witnesses to address financial reporting, audit practices, and whether more frequent or comprehensive audits would improve oversight. Legislative Budget Board staff described how public university systems and most community colleges respond to requests about internal audit practices, noting that university systems generally follow a similar annual audit timeline and that community colleges use a more varied mix of internal and external audit arrangements. Members focused on gaps in reporting, especially Texas Southern University’s missing submissions for several years and Collin County Community College’s nonresponse to the LBB survey. The State Auditor’s Office then outlined its higher education audit work, including mandatory statewide single audits, DEI compliance audits, HUB and State Use Program audits, benefits proportional audits, and discretionary audits based on risk. The auditor said the office has released 43 higher-ed audit reports since fiscal year 2021 and has two audits in progress, and explained that internal audit reports from institutions help guide future audit selection. Senators pressed the office on the lack of enforcement authority, the value of internal auditors at each institution, and whether community colleges should have more standardized reporting and audit requirements. The auditor and general counsel said the SAO can refer suspected fraud to law enforcement but cannot itself enforce findings, while several senators suggested stronger clawback authority and more robust internal audit structures. The Texas Higher Education Coordinating Board explained that it collects annual financial reports, sources-and-uses data, and community college finance reports, and uses them for funding formulas and other reporting. It also trains governing board members and said it has limited regulatory authority, though community colleges must certify compliance annually and can lose eligibility for state funds if they do not. Members questioned the reliability of self-attested data, the adequacy of board training, and whether a single reporting structure would be more efficient. During public testimony, a ScholarShot representative argued for clearer, student-facing financial transparency so students can see total cost of attendance and the gap they must cover before enrolling.

Transcript Highlights:

• Um, we have contract deputies that we've, uh, we have the largest contract, uh, deputy program in Harris
• Uh, with, with current contracts right now.
• value for the, uh, for the contract going forward.
• So, first of all, go back into the, uh, the contract, Deputy.
• So the county deputy contracting, the contract program saves the county a tremendous amount of money

Transcript Highlights:

• </c><00:03:38.640><c> The</c> 2115, the first engrossment. The 2115, the first engrossment.
• The first engrossment as amended. 2115. The first engrossment as amended.
• This is contracted case management.
• This is contracted case management.
• </c><00:12:29.279><c> The</c> first engrossment as amended. The first engrossment as amended.

Transcript Highlights:

• And with that, I think we'll begin with our first panel. So, folks, we're going up.
• First, delayed payments.
• We had to stop operating this contract as the payments had been delayed.
• You're operating a contract for two, three months and not being paid.
• You're operating a contract for two, three months, and not being paid.

Summary: The joint Senate and Assembly Select Committee hearing focused on the nonprofit sector’s mounting challenges in 2025 and possible state responses. Opening remarks emphasized the sector’s size and importance in California, the impact of federal funding disruptions and new federal tax policy, and the need for stronger public-private coordination, especially during disasters. Witnesses and members repeatedly pointed to nonprofits as essential providers of food, housing, health, education, environmental, and emergency services, while warning that sudden funding losses are forcing layoffs, service cuts, and operational instability. Testimony from community foundations and food bank leaders described how federal cuts, delayed reimbursements, and disaster-related demand are straining nonprofits. Monica White of Food Share Ventura County said H.R. 1 and USDA food cancellations are worsening hunger needs, while immigration enforcement fears are keeping some families from seeking help. Abby Browning of Cal OES outlined how the state coordinates with nonprofits, philanthropy, and businesses through VOADs and long-term recovery groups in wildfire response. Bruce Yerman of the Camp Fire Collaborative said recovery groups are effective but lack dedicated funding, and urged flexible spending, sustainable support, and streamlined partnerships. The second half of the hearing focused on institutional reforms, including a proposed Office of Nonprofit Empowerment, advance payments, prompt payment, and higher indirect cost coverage. Jeff Green of CalNonprofits argued for a central state office to coordinate policy, technical assistance, and interagency alignment. Annie Chang of Nonprofit Finance Fund cited survey data showing widespread late payments, low cash reserves, and indirect cost rates below federal guidance. Alfredo Cruz Jr. of Community Resource Project described how reimbursement-only contracts, delayed payments, and underfunded overhead create cash-flow crises and staffing problems. Members discussed possible interim steps, including expanding advance pay, improving payment timeliness, modeling best practices, and using state leadership to spotlight nonprofit needs. The hearing ended with public comment from nonprofit, labor, and advocacy representatives, and no votes or formal actions were taken.

Transcript Highlights:

• First order of business is minutes from the March 25th meeting, 2026. Mr.
• First order of business is minutes from the March 25th meeting, 2026. Mr.
• It's an adhesive contract.
• It's an adhesive contract, but it's still a contract.
• And I think cost-benefit analysis is first and foremost.

Committee: Joint Legislative Task Force on Government Efficiency

Transcript Highlights:

• We need to read it in first, of course. Mr.
• First, good morning.
• He's a colleague of mine from the first term here.
• He's a colleague of mine from the first term here.
• “The first line of 7A of the bill—I'm sorry.

Summary: The committee first handled House Bill 232 by Rep. Carlson, which would shift the process for minors’ employment certificates away from schools and school boards and instead have Louisiana Works create and collect the forms directly from employers. An amendment set was adopted to update the title, revise a section heading, add a collection procedure, and make the bill effective upon the governor’s signature. Carlson and supporters, including members of the Legislative Youth Advisory Council, said the change would reduce burdens on schools, make it easier for 16- and 17-year-olds to enter the workforce, and better fit summer hiring. The secretary said the department could move quickly to notify schools and employers. The bill was reported with amendments. The committee then took up House Bill 951 by Rep. Bamberg, which creates an Office of the Talent Accelerator within Louisiana Works and a business workforce committee to coordinate employer-facing workforce services. After adopting a large amendment set, Bamberg and Secretary Schowan said the office would help Louisiana respond more quickly to business needs, especially as major economic development projects create demand for skilled labor. Supporters from Leaders for a Better Louisiana and Bollinger Shipyards described similar results in Mississippi’s centralized workforce model and said employers need a one-stop, regional approach to training and recruitment. Members discussed needs in welding, electrical, HVAC, data centers, and other sectors. The bill was reported with amendments. House Bill 923 by Rep. Barrault, a technical cleanup bill related to the reorganization of Louisiana Works and related workforce and social service statutes, was then amended and reported with amendments. Finally, House Bill 301 by Rep. Weibel, which would create a voluntary portable benefits framework for independent contractors and gig workers, drew the most debate. Supporters said it would let contractors and hiring entities voluntarily contribute to portable benefit accounts for health, retirement, and similar needs, with examples from other states and the gig economy. Opponents from labor and injured workers argued it could encourage misclassification, weaken workers’ compensation protections, and shift costs to workers and the state. The discussion continued with questions about who would benefit and how the bill would interact with existing contractor law and protections.

Transcript Highlights:

• and contract amendments.
• So is this something we're going to continue to do, to review these past contracts and future contracts
• and is bidding on a new contract.
• An existing contract and is bidding on a new contract—that wouldn't be a conflict of interest, correct
• So what she's noting is, per state law, any contracts or contract amendments in excess of $100 million

Summary: The Assembly Transportation Committee held an oversight hearing on California High-Speed Rail, focusing on the authority’s supplemental project update report and the newly released 2026 draft business plan. Committee leaders emphasized transparency, the project’s funding challenges, and the need for clear answers on costs, schedule, and scope. The High-Speed Rail Authority said the project has made major progress in the Central Valley, including substantial construction completion, right-of-way acquisition, and railhead development, and highlighted over $14 billion in savings from a rebased project plan, plus an additional $2 billion in savings in the draft business plan. The authority also said it expects to begin laying track by the end of the year and continues to pursue private-sector partnerships and clean-energy opportunities. The Legislative Analyst’s Office and the Inspector General both raised concerns about whether the current funding plan is sufficient and whether the authority has clearly identified the timing of future expenditures versus revenues. The LAO said the project likely still faces a funding gap for Merced-to-Bakersfield once financing costs and the loss of $4 billion in federal funds are considered, and warned that cap-and-invest revenues are volatile and may not be well suited for borrowing without additional safeguards. The Inspector General said the authority still has not provided a precise funding plan, estimated the project is about two years away from lacking funds on hand to stay on schedule, and urged lawmakers to focus on financing costs, procurement timing, schedule risks, and distinguishing true cost cuts from scope changes. Members questioned the authority about proposed statutory changes, including CEQA and permitting streamlining, court resources, third-party process changes, sales tax exemptions on materials, and expanded land-use/value-capture tools. They also pressed the authority on the loss of federal funds, the withdrawal of litigation over those funds, and whether the project’s revised savings depend on moving station locations away from downtown Merced and Bakersfield and on other scope changes such as more single-tracking and blended operations south of Palmdale. The authority said it is still committed to Merced-to-Bakersfield, believes the business plan shows a path to completion with sufficient funding, and will work with the Legislature on any needed changes before the final plan is submitted.

Transcript Highlights:

• That is rejecting the contract.
• When communities come to us and want a contract, we would enter into a contract with them.
• cost of the contract.
• Commissioner Ramsey, how long is a contract for when you get a contract? Is it a year?
• This is a three-year contract.

Bills: HB26 , HB73 , SB 14 , HB46

Committee: House Intergovernmental Affairs

Transcript Highlights:

• And the first bill we have today.
• being locked into contracts.
• , then they feel like they're trapped in the contracts, and a lot of times the contracts are written
• I do want to take that first.
• And, you know, so just first, first, There's some, and I took a few notes.

Committee: House Commerce, Consumer Protection, and International Affairs

Summary: The committee first heard House Bill 267, which would change the membership rules for the Louisiana State Board of Home Inspectors by adjusting appointment qualifications, term limits, and nomination procedures. Vice Chair Thomas explained the bill was meant to address the lack of nominations from existing entities and to allow the governor more flexibility, especially in smaller districts. After adopting a technical amendment, the committee reported HB 267 favorably. The committee then considered House Bill 478 on utility overcharge reimbursements. The bill, as amended, requires utilities to clearly label reimbursements on customer bills and sets a deadline for issuing refunds. After discussion with the Public Service Commission and utility representatives, the committee changed the reimbursement timeline from 45 days to 90 days and clarified that the bill would not interfere with larger settlement or regulatory credits. HB 478 was then reported favorably as amended. The longest discussion centered on House Bill 924, a consumer protection measure aimed at contractors who solicit residential property owners after declared disasters. The author said the bill was intended to curb predatory storm-chasing and fraudulent insurance-related practices, while still allowing emergency mitigation work. The committee adopted technical amendments and then a conceptual amendment shortening the catastrophe response period from six months to 30 days. Testimony was split: the Insurance Commissioner and some roofing industry witnesses supported the bill as a way to deter fraud, while other contractors argued it would hurt small businesses, limit legitimate door-to-door work, and not solve enforcement problems. The bill remained under consideration after extensive testimony and public comment.

Transcript Highlights:

• , a specific contract with the contract, a specific contract with the food<00:05:55.840><c> bank</c><
• We have a contract.
• So, that is what with the contract.
• The first part is accepting money.
• The contract is support the contract.

Summary: The Fiscal Committee met with replacement members noted at the start and took up one emergency item from the Department of Health and Human Services: approval to accept and expend $2 million to support SNAP recipients during the federal shutdown. Commissioner Lori Weaver and CFO Nathan White explained that USDA/FNS had notified the state it would not receive November SNAP funds, affecting about 74,000 recipients. The department said it activated a contingency plan to contract with the New Hampshire Food Bank to expand mobile food pantries, targeting SNAP households and prioritizing locations based on need, with evening and daytime access and outreach through mail, text, email, social media, partner organizations, and a shutdown webpage. Committee members asked about timing, locations, reimbursement, and whether the state would be repaid by the federal government. Department staff said the food bank would likely need about a week to mobilize once the contract was approved, and that the contract would be cost-reimbursement based, with faster turnaround than usual but not advance payment. White explained the money would come from excess Medicaid Enhancement Tax revenue from state fiscal year 2025, which can be used only for Medicaid purposes under state law and SB 249, allowing general funds to be shifted to the food bank contract. Members also asked about other affected programs; the department said WIC had funding through November 10, energy assistance was expected to continue through December, and school breakfast/free and reduced lunch were not impacted. Members discussed broader public outreach, including a possible PSA and use of the New Hampshire Food Bank’s network of 417 partners, and one member suggested religious leaders or the governor might be better positioned to make donation appeals. The committee then voted unanimously to adopt the item (motion by Senator Gray, second by Senator Waters). The meeting ended with notice of the next meeting on November 21 at 11:00 and a motion to adjourn, which was approved.

Transcript Highlights:

• So I want to first of all thank you all for being here today, and I would like to start by first asking
• The word lobbying is not used in their contract, and I do have their contract here.
• Yes, that a number of state agencies contract with.
• You know, at first I thought it was a grant when I was first looking at your documentation paperwork,
• and then I First, I thought it was a grant when I was first looking at your documentation paperwork,

Summary: The follow-up informational hearing focused on the State Library’s oversight of the statewide Imagination Library and the Strong Reader Partnership (SRP), including how the original $68.2 million state investment was spent, why funds were not redirected sooner to the Dollywood Foundation, and whether spending complied with AB 157 and later SB 105. Committee members repeatedly raised concerns that SRP and the State Library had been slow to provide documents, that quarterly reporting and other contract requirements were not met on time, and that the State Library did not escalate issues earlier. State Librarian Greg Lucas said the library sent one demand letter, relied on counsel’s view that SRP could continue spending its $4.8 million so long as it furthered the program, and later redirected about $55 million to the Dollywood Foundation after paperwork was submitted. He also acknowledged the library should have shared SRP’s final report with the committee sooner and said the materials eventually received appeared satisfactory, though the chair and Senator Grove remained concerned that there was still no clear accounting of books delivered by SRP. A major portion of the hearing examined SRP’s expenditures and vendor contracts, including Shipyard for marketing and web services, SAGE Strategies for management consulting, Lotus Financial Solutions and other financial vendors, and United Way California Capital Region for a small marketing grant. Committee members questioned whether some spending, especially Changecraft’s work during the AB 157 period, amounted to lobbying or attempts to influence legislation, which the grant agreement prohibited. SRP representatives said the work was communications and stakeholder outreach, not lobbying, and that invoices reflected the board’s oversight and the nonprofit’s startup and closeout phases. They also said some work continued during the rescission and closeout period to unwind contracts and return funds, and that any reporting delays were due to transition, lack of a reporting mechanism from the State Library, and the need to collect records after vendors were canceled. Members of SRP said the nonprofit was created to build the infrastructure for a self-sustaining statewide program, expand local partnerships, and support multilingual outreach in underserved counties. They described a working board that met regularly, selected vendors collectively, and used multiple financial and administrative contractors to maintain checks and balances. However, committee members pressed them on the lack of detailed invoices, the absence of clear metrics showing how many books SRP actually delivered, and the limited apparent return on spending such as the $581,708 Shipyard contract, the $125,000 website work, and the $5,000 United Way grant. No formal vote or legislative action was taken during the hearing; it was an oversight session aimed at obtaining explanations and additional documentation.

Transcript Highlights:

• Some contracts have been canceled; others were halted mid-negotiation.
• First, Ruben Mercado Jr. Thank you. Good afternoon.
• Last Monday, I lost a $2 million multi-year contract with UTMD Anderson.
• The HUB certification positioned us to compete for state contracts.
• It was a two-year, $2 million contract.

Transcript Highlights:

• I think we'll first hear from HPIA.
• </c> the losses in the tower above that first the losses in the tower above that first uh<00:20:35.600
• </c><00:20:54.840><c> 10</c> million hpia would pay out the first 10 million hpia would pay out the first
• </c> response to um what the Contracting response to um what the Contracting Provisions<01:04:04.039>
• </c> to us I don't think this is a contract to us I don't think this is a contract that<01:21:04.000>

Transcript Highlights:

• To first evaluate.
• So the first-year contract was $6.2 million for 40 million diapers.
• We're going to dive even further on the first issue. Let's hear that first.
• intake process is the first That the first day of the intake process is the first day is determined the
• Well, first, LAO...

Transcript Highlights:

• contracts.
• of contracts.
• Contracts live at many different levels and many different kinds of contracts.
• Our first three years of real operation, let's call it what it is, we had contracts in place where we
• We know this is the first of many.

Summary: The subcommittee held its first meeting to examine Florida’s information technology governance, budgeting, cybersecurity, data management, and telecommunications operations. Chair Schneider and other members framed the panel as a new joint policy-and-budget forum focused on reducing jargon, improving accountability, and asking whether technology investments are feasible, aligned with state goals, cost-controlled, and secure. State Affairs Chairman Will Robinson and members emphasized that the committee should avoid buying “shiny new objects” without clear business cases and should focus on long-term value, cybersecurity, and operational efficiency. Florida Digital Service and Department of Management Services leaders provided an overview of the state IT enterprise. Secretary Pedro Allende described DMS as the state’s business, workforce, and technology service provider, while State CIO Warren Spanholz outlined Florida Digital Service’s four core areas: cybersecurity, project success, data interoperability, and enterprise architecture. Chief Data Officer Ed Ryan said the state data catalog is about 400,000 elements and roughly half of agencies are participating, and he described efforts to identify authoritative data sources and improve interoperability. Chief Information Security Officer Jeremy Rogers discussed the state cybersecurity operations center, enterprise risk management, incident response exercises, and a recurring $35 million cybersecurity resiliency budget. Chief Technology Officer Leo Schoonover described oversight of major IT projects over $10 million, updated project management standards, and a shift toward smaller phased implementations and more flexible methodologies to reduce delays and overruns. Other presenters covered telecommunications, data center operations, and cybersecurity workforce development. Director Denise Atkins said the Division of Telecommunications manages Suncom and MyFloridaNet, with nearly $336.9 million appropriated for fiscal year 2024-25, and is procuring the next network contract while emphasizing security controls and vendor flexibility. Tim Brown said the Northwest Regional Data Center operates on a chargeback basis, serves state and local customers, and returned surpluses to customers in recent years. Cyber Florida Director Ernie Ferraroso described training, workforce pipelines, K-12 outreach, a cyber range, and research programs aimed at building Florida’s cyber workforce and improving public-sector readiness. Members asked about budget setting, project delays, change orders, cybersecurity reporting, data catalog participation, interoperability, and expanding cybersecurity operations centers. Officials said chargeback rates are based on actual direct and indirect costs, project delays often stem from unclear scope and insufficient upfront planning, and cybersecurity success is measured by mean time to detect, respond, and recover. They also said the state is moving toward more modular project delivery, broader agency participation in shared cybersecurity services, and expanded CSOC locations within existing staff and budget where feasible.

Transcript Highlights:

• </c> contract not to exceed? contract not to exceed?
• Contract Amendment Ivory List. If the Contract Amendment Ivory List.
• Uh first of all, I'd like to point out this is yet another contract we have with Seven Counties Services
• Uh first of all, I'd like to point out this is yet another contract we have with Seven Counties Services
• </c> existing contract. existing contract.

Summary: The committee first approved the September 19 meeting minutes and then took up a deferred University of Kentucky personal services contract amendment for guardianship services. UK officials explained that the contract covers court-appointed guardians for patients who cannot make medical decisions and are not eligible for state guardianship, with the work funded by UK Medical Center agency dollars rather than the general fund. Members questioned the large increase in the not-to-exceed amount, the number of cases, the hourly billing structure, and whether there are safeguards to prevent unnecessary costs or reimbursement issues if a patient later has resources. UK said the increase reflects shifting work from a prior firm, anticipated new cases, a move from a monthly fee to hourly billing, and the need for a second firm because one prior attorney died and another firm has had difficulty appearing in court promptly. The committee ultimately approved the contract, while Senator Thomas said he would vote aye but urged future review of attorney fee limits and broader guardianship statutes, which he described as outdated and inconsistent. The committee then deferred three Office of Energy Policy memorandum of agreement items to the November 2025 meeting without objection. After that, it approved the remaining agenda items, including the contract lists and deferred items not separately selected for review. The final major item was a University of Kentucky personal services contract related to fundraising and philanthropic outreach. UK representatives said the contract supports marketing and donor engagement efforts to grow the university’s endowment pipeline and philanthropic support. The transcript cuts off before the committee finished its questions or took final action on that item.

Transcript Highlights:

• Go first. John? Thank you.
• So I think first, this is the first I've heard about no MOUs, so I'm not quite sure how to respond to
• Go first. John? Thank you.
• So I think first, we already, this is the first I've heard about no MOUs, so I'm not quite sure how to
• Do you want to go first? Mr. Long, you can go first.

Committee: Senate Children, Families, and Elder Affairs

Summary: The committee held a panel discussion on Florida’s domestic violence system, focusing on how state and federally funded services are coordinated, the role of the Florida Partnership to End Domestic Violence (FPEDV), the Florida Domestic Violence Collaborative, DCF, and certified domestic violence centers. Members reviewed the post-2020 restructuring after the dissolution of FCADV, the current hotline, legal services, training, and technical assistance contracts, and the Legislature’s recent work on lethality assessments under SB 1224. Panelists also described prevention, shelter, counseling, child advocacy, and legal support services, along with the statewide network of 41 certified centers serving all 67 counties. Testimony highlighted both collaboration and tension. FPEDV and Women in Distress described overlapping training and technical assistance roles, but FPEDV said its relationship with DCF has been difficult and at times obstructive, while DCF said communication and coordination are ongoing. Women in Distress and other providers emphasized the importance of direct services, the statewide hotline, injunction assistance, child welfare co-located advocates, and prevention programs. Several members asked about funding flows, certification, and whether the current structure is sufficient for rural counties; witnesses said federal FVPSA funds are formula-based, DCF contracts directly with centers, and rural programs face staffing and fundraising challenges that limit beds and services. A major portion of the discussion centered on the lethality assessment work group and implementation of the new statewide tool. FDLE explained that the work group concluded the Maryland model was copyrighted and costly to replicate exactly, so Florida adopted a statutory assessment that is not evidence-based in the same way, with training available online and 46 of about 400 law enforcement agencies having completed it so far. Senators raised concerns about multiple assessments, redacted police reports, and whether the tool will be useful without better coordination and data collection. Witnesses also discussed rising domestic violence, teen dating violence, and strangulation cases, with providers reporting increased demand, full shelters, and greater use of hotels and mobile crisis responses. No formal votes or actions were taken.

Transcript Highlights:

• First is going to be HB 2467. That is Representative Timmons.
• First is... Thank you, Mr. Chair. We have six testifiers for this bill.
• We opened our first Washington location in 2012, located in Fife, Washington.
• contracting methods to award contracts to responsible bidders for project delivery.
• , the general contracting/construction manager method, and job order contracting.

Summary: The committee held public hearings on three transportation-related bills. HB 2467, sponsored by Rep. Timmons, would clarify how fifth-wheel RVs are measured for length purposes by measuring from the king pin to the rear-most point, allowing fifth wheels up to 46 feet under that method without increasing the current roadway length limits. The staff report said the bill has no fiscal impact for most agencies and a small indeterminate impact for Labor and Industries; the proposed substitute makes technical clarifications. The sponsor and several RV dealers, the Association of Washington Business, and the RV Industry Association testified in support, saying the bill would improve clarity, preserve safety, and help Washington dealers compete with neighboring states. No one testified in opposition during the hearing. The committee briefly suspended HB 2467 to hear HB 2495, sponsored by Rep. Thomas, which would give the City of Seattle authority to immediately remove vehicles blocking streetcar tracks or otherwise jeopardizing streetcar operations without waiting for police to first cite the vehicle. Staff said the bill applies only to Seattle, includes an emergency clause, and has no fiscal impact because impound fees are expected to offset costs. Rep. Thomas and Seattle Streetcar Program Manager Alison Redenz supported the bill, describing frequent track blockages and delays to service, especially after hours, and saying the change would speed restoration of transit operations. The committee then heard public testimony on HB 2552, which would authorize WSDOT and Sound Transit to use multiple award task order contracting (MATOC) for transportation construction projects. Staff explained that MATOC would let agencies prequalify contractors and then compete task orders among them, with required award and protest processes. Rep. Zahn said the bill would give agencies another tool to streamline delivery while preserving competition and including WMBE firms. Sound Transit supported the bill as a faster, more flexible procurement method that could broaden opportunities for smaller firms, while the Washington Aggregate and Concrete Association opposed it, arguing the approach is not well tested in Washington, could reduce competition, and should be reviewed by the Capital Projects Advisory Review Board. After testimony, the committee closed the public hearing on HB 2552 and adjourned after caucusing.

Transcript Highlights:

• Your first question requested an overview of the Governor's budget related to child care, Your first
• For contract slots.
• contracts.
• First, we cannot afford to delay the implementation of the so-called first-in-the-nation child welfare
• Nine of them rely on that contract.

Summary: The committee heard an extensive Department of Social Services presentation on child care budget issues, including the Governor’s proposed 2026-27 budget, federal CCDF changes, Prop. 64 revenue adjustments, and a one-time $11.5 million disaster-related infrastructure grant for licensed child care facilities affected by 2025 declared disasters. DSS said federal formula updates and lower Prop. 64 revenues would reduce funding and could result in about 4,176 CCTR slots being reduced, but the department said it was working to avoid impacts to currently enrolled children. The LAO supported aligning general child care funding with lower revenues and asked for more detail on the disaster grant. Members pressed DSS and Finance on why reductions were not being backfilled and why so many awarded slots remain uncontracted or unused; DSS said delays are largely due to providers building new infrastructure, licensing, staffing, and enrollment challenges, and that some unspent funds revert to the General Fund. The committee also discussed whether some contract dollars should be shifted to vouchers and whether more flexibility should be allowed for infrastructure and expansion costs. A second panel focused on the state’s commitment to expand child care and on rate reform. DSS reported that nearly 125,000 new slots have been awarded since 2021-22, but speakers from Stanislaus County Office of Education, Parent Voices California, and the California Budget and Policy Center argued that unmet need remains large and that the system still leaves many families without access. Stanislaus County described a large local shortage of infant and toddler care and said reimbursement disparities between child care programs and state preschool create disincentives for providers. Parent Voices gave testimony about the burdens and instability families face when trying to access care, especially for survivors and low-income parents, and called for a universal, publicly funded system. The Budget Center said only about 16% of eligible children were enrolled in 2024, urged expansion across the mixed delivery system rather than concentrating investment in TK, and called for faster rate reform and new revenue. LAO estimated that bringing certain CCTR adjustment factors up to CSPP levels would cost $88 million to $131 million ongoing. Members and witnesses discussed the single rate structure, automation needs, and the need for deadlines and a ramp-up plan; DSS said the goal is to eliminate disparities, but that policy decisions are still needed before automation can proceed. The committee then reviewed several trailer bill proposals. DSS outlined a 2026-27 COLA proposal that would apply a 2.41% increase through cost-of-care-plus payments, though the department said it had inadvertently excluded CalWORKs Child Care and the Emergency Child Care Bridge Program and would revise the proposal; LAO recommended making the COLA methodology uniform across programs. DSS also proposed replacing the market rate survey with the federally approved alternative methodology on a triennial schedule, limiting temporary absences in family child care homes to 20% of monthly hours, defining excessive unexplained absences as more than 30 days in a year, and aligning family fee deductions with new federal requirements so providers receive the full voucher value. Members generally supported the temporary absence change and asked about implementation timing for the family fee deduction, with DSS saying it was in contact with Riverside County. The committee also heard a brief update on the Early Childhood Policy Council reappropriation, which would extend unused funds through June 30, 2028 because prior costs came in higher than expected.

Transcript Highlights:

• To be clear, AB 1048 does not require the IBR review every contract.
• contract I have, or I don't recall signing a contract like that, show me the contract.
• This is not for contract dispute. This is for transparency. Show me the contract that I signed.
• They say, we don't recall at all signing a contract like that. Can you show us the contract?
• not the contract applies.

Committee: House Insurance

Summary: The Assembly Committee on Insurance met as a subcommittee and heard several bills, with most focused on workers’ compensation, insurance access, and climate-related risk. AB 815 by Assembly Member Ortega would prevent social service workers who use personal vehicles to transport or assist clients from being misclassified as commercial or for-hire drivers under personal auto policies; supporters said the current practice leads to unaffordable premiums and denied claims, while no opposition testified. AB 1329, also by Ortega, would reform the Subsequent Injury Benefit Trust Fund to reduce litigation and administrative costs; supporters said it would lower employer assessments while preserving protections for hiring previously disabled workers, and opponents said they were working on amendments but raised concerns about fund costs and eligibility language. Both bills were approved and sent to Appropriations. The committee also approved the consent calendar, which included AB 1125, AB 1293, and AB 1398, and later approved AB 1048 by Assembly Member Chen. AB 1048 would allow disputed unauthorized or silent-network medical payment reductions in workers’ compensation to be reviewed through the independent bill review process; supporters framed it as a transparency measure to address unexplained underpayments, while opponents argued the bill would improperly use IBR to resolve contract disputes and could conflict with existing arbitration provisions. Despite opposition, the bill passed to Appropriations. AB 1236 by Assembly Member Celeste Rodriguez was approved with broad support. The bill would create a Climate and Sustainability Insurance and Risk Reduction Grant Program at the Department of Insurance to fund pilot projects aimed at improving insurance availability, affordability, and resilience in communities facing wildfire, flooding, heat, and sea level rise. Supporters, including the Department of Insurance, described it as implementing recommendations from the state’s climate insurance report, and several committee members asked to be listed as coauthors. AB 1336 by Assembly Member Addis, the Farmworker Heat Illness Prevention Act, also passed after extensive debate; it would create a rebuttable presumption that a heat-related injury arose out of employment when an agricultural employer failed to comply with heat illness prevention standards. Supporters said it would incentivize compliance and protect farmworkers, while opponents argued it inappropriately used workers’ compensation to enforce safety rules and raised implementation concerns. All of the approved bills were reported out to the Committee on Appropriations, and the committee adjourned after recording final roll-call votes.