Transcript Highlights:

• Madam Chair and members, Senate Bill 1308 establishes the Foreign Adversary Fraud Office within the Office
• of the Attorney General to pursue consumer fraud violations involving technology produced by a foreign
• Madam Chair and members, Senate Bill 1308 establishes the Foreign Adversary Fraud Office within the Office
• of the Attorney General to pursue consumer fraud violations involving technology produced by a foreign
• Yes, I just was wondering, so this is the Foreign Adversary Technology Rip and Replace Fund.

Committee: House House Science & Technology Committee of Reference

Summary: The Science and Technology Committee considered Senate Bill 1308, which would create a Foreign Adversary Fraud Office within the Attorney General’s Office to pursue consumer fraud cases involving technology produced by foreign adversaries. The bill also establishes a Foreign Adversary Fraud Fund, includes a $500,000 appropriation for fiscal year 2026-27, and directs any fund balance above $10 million at year-end to the Foreign Adversary Technology Rip and Replace Fund. Staff explained that the office would support investigations and litigation, with delayed repeal dates included in the measure. A representative of State Armor and a local attorney testified in support, arguing the bill would protect consumers and state systems from products with undisclosed security vulnerabilities, citing examples involving cameras and routers allegedly linked to foreign adversary entities. They said the initial appropriation would serve as seed money for enforcement actions that could generate settlements or judgments, and that the resulting proceeds could help replace vulnerable technology in critical infrastructure. Committee members asked about how the rip-and-replace fund would be used, who would identify critical infrastructure, and the effects on government purchasing; the witness said the Department of Homeland Security would identify critical infrastructure and administer the funds. After discussion, a member moved Senate Bill 1308 be returned with a due pass recommendation. The committee approved the motion on an 8-0 vote, with one member absent.

Transcript Highlights:

• There is a foreign terrorist organization list.
• There is a foreign terrorist organization list.
• There are also organizations here that have been delisted as foreign terrorist organizations.
• And then my final question to that is: how will the foreign law, religious law...
• They prepare a... way in which foreign terrorist organizations are designated.

Bills: S0500 , S0536 , S0762 , S1582 , S1632 , S1634 , S1742 , S1750 , S1792

Committee: Senate Appropriations Committee on Criminal and Civil Justice

Transcript Highlights:

• And foreign influence.
• Article 5, the prohibition of any foreign military presence.
• operation of the canal as well as the garrisoning of foreign troops.
• Now, turning to foreign security forces.
• Our foreign investment in Panama is 3.8 billion dollars annually.

Committee: Senate Commerce, Science, and Transportation Committee

Transcript Highlights:

• This is the foreign influence bill that was heard in many committees.
• This is the foreign influence bill that was heard in many committees.
• It does not require them to return to their foreign country.
• government or designated foreign terrorist organization.
• You mentioned something about students and having to leave if they're, is it from foreign?

Summary: The Senate opened with prayer, the Pledge of Allegiance, and a series of recognitions for interns, staff, and guests. Members also honored retiring Senate staffer Susan Miller and recognized a veteran injured in combat. After routine announcements, the chamber moved to returning messages from the House and began taking up bills and amendments. The Senate concurred in House amendments and passed SB 118 on RV park assessments and SB 572 on ethics for public officers and employees, both by 38-0 votes. It then took up the elections bill, CS/CS/HB 991, which drew extensive debate. Supporters said it would strengthen election integrity by tightening citizenship verification and ID rules; opponents argued it would burden eligible voters, especially students, seniors, disabled voters, and others without the newly required documents. The bill passed 27-12. The chamber also passed the education package SB 182 after adopting a Senate amendment to the House amendment, and approved SB 474 on military affairs, SB 425 on historic cemeteries, HB 929 on local regulation of chickees, and HB 35/SB 1370 on habitual traffic offender designation, all with unanimous or near-unanimous votes. The Senate then considered SB 902/ HB 733, the Department of Health package. Members adopted an amendment and amendment-to-amendment that preserved most Senate provisions while modifying or removing several House additions, including some early steps and medical marijuana-related changes, and the bill passed 37-0. The chamber also began work on HB 905, the foreign influence bill, with a strike-all amendment offered to expand restrictions on foreign influence, sister-city agreements, linkage institutes, and related activities, but the debate on that measure was still underway when the transcript ended. Several other returning messages and bills were temporarily postponed, and the Senate recessed briefly before resuming business.

Transcript Highlights:

• An act relating to foreign national participation in Washington state elections, amending RCW.
• There's not currently a federal law that prevents foreign dollars from influencing initiative campaigns
• Effective and didn't really do anything to prevent foreign influence of our elections. And Mr.
• Speaker, let you and I be clear, we don't want foreign influence of our elections.
• Most of the reports about rampant foreign influence of our elections were hoaxes.

Summary: The House convened with a quorum, offered the Pledge of Allegiance and prayer, approved the prior day’s minutes, recognized visitors from the Colville Tribal Business Council, and then caucused briefly before taking up bills. The chamber also received a Senate message announcing passage of Substitute Senate Bill 5000. Members advanced and passed several bills. House Bill 1269, raising pawnbroker interest rates and fees modestly, passed 83-14 after supporters said it would help small businesses serving unbanked customers and maintain operations amid inflation. Substitute House Bill 2123, changing foreign national campaign contribution reporting rules, passed 68-29 amid debate over whether it appropriately reduced burdens on candidate campaigns while still protecting initiative campaigns. Substitute House Bill 2178, a technical court-rules and procedure cleanup bill, passed 89-8; House Bill 2120, which removes two duplicative JLARC reports to free staff for higher-value audits, passed unanimously 97-0; House Bill 2309, eliminating postgraduate degree requirements for certain state jobs to reduce employment barriers, passed 97-0; and Substitute House Bill 2158, allowing electronic remote notarization of physical documents, passed 96-0. The House also passed Substitute House Bill 2411, expanding shared leave eligibility to include absences related to hate crimes and immigration enforcement actions, by a vote of 60-36 after supporters framed it as support for public employees and opponents raised cost and policy concerns. House Joint Memorial 4004, a nonbinding request to Congress concerning sea lion management to protect salmon and treaty fishing rights, passed 80-16 after debate focused on salmon restoration and tribal rights. Finally, Substitute House Joint Memorial 4001, honoring Russell Blount by naming the future East 34th Street overpass over I-5, passed 96-0. The House then adjourned until the next scheduled session.

Transcript Highlights:

• Foreign direct investment: we are one of the primary states for foreign direct investment.
• It's the most important foreign investment event in the world.
• It's the most important foreign investment event in the world.
• We... ...under the California umbrella to meet with foreign investors.
• Many states have foreign investment as sort of a separate part of the work.

Summary: The hearing focused on the Governor’s Office of Business and Economic Development (Go-Biz) and several related budget proposals. Director D.D. Myers described the California Jobs First economic blueprint, regional planning efforts across 13 regions, and the state’s strategy to target sectors such as ag tech, space, life sciences, semiconductors, and emerging technologies. She also discussed the California brand campaign, export promotion, film tax credits, and the California Civic Media Fund, emphasizing job creation, regional equity, and business attraction/retention. Members raised questions about support for journalism, arts and creative industries, AI’s impact on jobs, foreign direct investment, manufacturing, tariffs, and how the Jobs First framework is being implemented across regions. Go-Biz then presented trailer bill language to extend the encumbrance deadline for remaining Jobs First administrative funds and to codify the Office of Regional Economic Development Initiatives. The department said $95 million of the $100 million Jobs First appropriation had already been deployed to grants for counties and tribes, and members asked for more information on regional outcomes, including Orange County and the North State. Public comment supported Jobs First and the Small Business Development Centers’ role in helping businesses access capital and create jobs. The committee also heard a request for ongoing CalExport funding to replace uncertain federal STEP support; the LAO noted the Legislature may want to weigh whether to backfill federal reductions, while Go-Biz argued the state program is needed because federal support appears unlikely to continue and demand exceeds available funding. The committee next heard the film and television tax credit staffing request. Go-Biz asked for funding for three permanent positions to manage the expanded program, and the LAO recommended approval given the increased workload. The Film Commission reported a sharp rise in applications after AB 1138 and the program expansion, with productions taking place both inside and outside the Los Angeles 30-mile zone and activity spread across the state. Finally, Go-Biz presented a request for one permanent position and one graduate student assistant to support innovation and emerging technologies, including quantum and fusion. Members asked about the use of the state’s quantum funding, and staff explained it would support microgrants, state capacity-building, and workforce education. No formal votes were taken in the portions provided, and the chair indicated some items would be moved and heard later in the agenda.

Transcript Highlights:

• It prohibits foreign entities and foreign influence business entities from making contributions, expenditures
• corporation or foreign influence business entity at the time, and will replace that with language that
• corporation or foreign influence business entity for the entire election cycle.
• corporation or foreign influence business entity for the entire election cycle. ...foreign corporation
• corporation or foreign influence business entity for the entire election cycle.

Committee: Senate Judiciary

Summary: The Judiciary Committee met in decision-making only session and took up a series of bills, mostly approving them with amendments. SB 1032 on campaign finance passed with amendments to change the certification process for business entities, add a severability-type provision if foreign-influence conditions are struck down, and note a related Minnesota federal case. SB 401 on firearms passed with amendments to exclude shotguns, grandfather legally registered devices in place as of the effective date, and add committee report findings; SB 382 on procurement confidentiality passed as is; SB 598 extending deadlines for administrative driver’s license revocation review decisions passed as is; SB 771 on HHFDC board leadership passed as is; and SB 1318 clarifying water pollution enforcement jurisdiction passed as is. The committee also approved SB 1657 with an amendment removing authority to condemn public property, SB 1102 with an amendment making the Fire Council the source of nominees for the aircraft rescue fire fighting chief, and SB 100 with amendments replacing the original substance with a prohibition on fingerprinting nonprofit liquor-license board members during background checks and limiting the bill to counties under 500,000 population. SB 170 and SB 1296, both related to special management area exemptions for affordable housing and disaster-related reconstruction, passed with amendments incorporating Office of Planning, Sustainable Development, and Attorney General changes to narrow and clarify the exemptions. Finally, SB 363, a cleanup bill related to firearm parts and ghost gun laws, was considered with amendments that deleted a proposed new penalty section, revised existing firearms statutes, removed an unnecessary definition, and expanded penalties to include indeterminate imprisonment terms. Despite the amendments, the measure was not adopted because the Vice Chair voted no. The committee then adjourned and announced a later joint hearing with Ways and Means.

Transcript Highlights:

• There is a foreign terrorist organization list.
• There are also organizations here that have been delisted as foreign terrorist organizations.
• There is a foreign terrorist organization list.
• There are also organizations here that have been delisted as foreign terrorist organizations.
• It should prohibit the enforcement of any law, foreign or domestic, that conflicts with the U.S.

Bills: S0500 , S0536 , S0762 , S1582 , S1632 , S1634 , S1742 , S1750 , S1792

Committee: Senate Appropriations Committee on Criminal and Civil Justice

Summary: The committee first considered SB 536, which updates Florida’s criminal gang statutes to reflect modern recruitment and communication methods, including social media and encrypted messaging. Senator Martin and supporters said the bill does not criminalize gang membership, but helps law enforcement and prosecutors establish gang-related connections for warrants and sentencing enhancements. Senator Smith raised concerns about the lowered threshold for being observed with gang members and possible unintended impacts on business owners and others; Martin said the language was not intended to cover ordinary business interactions and that a gang tattoo must be one used by the gang. After an amendment aligning the Senate bill with the House version was adopted, the committee reported CS/SB 536 favorably. The committee also favorably reported CS/SB 762, which allows chief judges to assign capital conflict cases across regional counsel offices, with an amendment requiring judges to consider judicial economy and geographic proximity. Testimony from regional counsel emphasized projected long-term savings, estimated at about $150 million over 10 years. The committee then approved CS/SB 1742, creating a new indecent exposure offense involving sexual conduct directed at minors, and CS/SB 1750, which increases penalties for serious sex crimes and child sexual abuse material offenses; both bills were amended before passage, with law enforcement groups appearing in support. The committee next took up SB 1582, which creates statewide data sharing for secondhand dealer and pawnbroker transactions without creating a new state-run database, while preserving confidentiality protections and law enforcement access. An amendment was adopted, and pawnbroker and recycling stakeholders testified in support. The linked public records bill, SB 1792, creating an exemption for those transaction records while allowing certain information to be released to alleged owners, was also reported favorably. The committee then approved CS/SB 500, which provides FDLE protective security details to major party nominees for governor, lieutenant governor, and cabinet offices after primary certification and until the general election is resolved; a technical amendment was adopted, and the bill was described as mirroring federal candidate protection practices. The longest and most contentious discussion was on CS/SB 1632, which would bar Florida courts from enforcing foreign or religious law in a way that overrides the U.S. or Florida constitutions and would create a process for designating foreign or domestic terrorist organizations, with related consequences for schools, funding, and student conduct. Senator Grall said the bill is intended to protect constitutional principles and target violent, criminal conduct rather than protected speech or religious practice, and she explained that designations would follow a public process with judicial review. Senators Smith and Polsky pressed repeatedly on First Amendment, due process, vagueness, and academic-speech concerns, asking how “promotion” would be defined and whether students, attorneys, or advocacy groups could be swept in; Grall said she was open to clarifying language but maintained the bill is aimed at furthering illegal acts, not mere opinion. Numerous speakers opposed the bill, warning it could be used to target Muslim students, religious communities, advocacy groups, and political dissent, while a few supporters argued it was needed for public safety. The transcript ends during public testimony on SB 1632, with no final committee vote shown in the excerpt.

Transcript Highlights:

• </c> egg lands that are owned by by foreign egg lands that are owned by by foreign entities<00:51:27.799
• lands or in foreign entitlement, and of those lands under foreign entitlement, how much are actually
• lands or in foreign entitlement, and of those lands under foreign entitlement, how much are actually
• </c> leasing of your lands to foreign leasing of your lands to foreign corporations<00:53:48.240><c>
• </c> are foreign lands or in foreign are foreign lands or in foreign entitlement<00:55:22.400><c> um<

Committee: Senate Agriculture and Environment

Summary: The joint hearing covered SB 1023, which would create a spay-neuter special fund to reduce pet overpopulation and free-roaming cats, with funding sources including an income tax checkoff. The Department of Taxation had no substantive comment, while the Hawaii Invasive Species Council supported the measure but opposed any trap-neuter-release or re-release approach, saying spay-neuter is important but release does not reduce cats on the landscape. The Tax Foundation of Hawaii raised concerns about creating another special fund and tax checkoff, saying the fund may not meet statutory criteria and could create administrative burdens. The Hawaiian Humane Society strongly supported the bill, arguing the state currently provides little funding for animal overpopulation control and that the measure would help nonprofits and align conservation and animal welfare goals. Several other supporters testified, including a cat sanctuary representative who described the need for a dedicated funding mechanism and a possible Oahu sanctuary to remove cats from sensitive areas. After questions about the effectiveness of trap-neuter-release and the need for alternative management tools, the committees voted to recommend passage with amendments, including blanking appropriation amounts, moving them into the committee report, setting the effective date to July 1, 2050, and noting Budget and Finance concerns; the recommendations were adopted in both committees, with some members voting with reservations. The hearing then moved to SB 1120, relating to transportation and a clean fuel standard. The Department of Transportation said it supported the intent but wanted more information on economic impacts. Electrify America and Neste supported the bill, saying a clean fuel standard would help finance EV charging, encourage investment, and expand lower-carbon fuel options such as renewable diesel. In response to questions from senators about rural and agricultural transportation needs, witnesses said the standard could support both electrification where feasible and cleaner liquid fuels in the interim for equipment that cannot yet be electrified. DOT also described county transit efforts and said it was working with Maui, Kauai, and Hawaii Island on assessments for zero-emission bus replacement and charging infrastructure. The committees also heard testimony on SB 586, relating to climate change and zero-emission buses by 2045, with the State Procurement Office supporting the intent but suggesting the language be moved to a different statute; DOT said it was providing pass-through funding to counties and had some zero-emission bus purchases and charging stations on order. The discussion emphasized infrastructure costs and implementation challenges, but no final vote on SB 1120 or SB 586 was described in the transcript excerpt.

Transcript Highlights:

• ensure that the burgeoning investments that we're making in clean energy actually do help us pay the dividends

Committee: Joint Joint Committee on Telecommunications, Utilities and Energy

Summary: The hearing focused on several climate and utility-related bills, especially H. 3449/S. 2292 to expand the municipal fossil fuel-free building demonstration program from 10 to 20 communities and related home rule petitions for Somerville and other municipalities. Witnesses from Somerville, Salem, Worcester, Cambridge, Newton, Arlington, Wellesley, Watertown, and the Massachusetts Municipal Association argued that local governments should be allowed to opt into fossil fuel-free or net-zero building standards, citing climate goals, environmental justice concerns, housing production, and data showing all-electric construction can cost about the same as or less than mixed-fuel construction. Committee members repeatedly pressed witnesses for cost data and asked for written follow-up, while also discussing whether strong environmental standards affect housing supply; witnesses responded that the main housing constraints are financing and that they would provide more data from local projects and state studies. A second major topic was H. 3564, which would require gas companies to provide municipalities with detailed multi-year pipe replacement plans, allow local review and objections, and limit reimbursement for projects not previously disclosed except in emergencies. Municipal leaders and advocates said the bill would improve coordination of street work, reduce disruption and costs, and help cities plan for electrification, network geothermal, and non-pipeline alternatives. Testimony from Wellesley, Cambridge, Arlington, Newton, and others emphasized repeated problems with last-minute gas main work, the need for advance notice, and the value of municipal participation in planning gas system retirement and alternatives. The committee also heard testimony on the “tactical transition” bills, S. 2249/H. 3539, aimed at managing the gas-to-clean-energy transition. Supporters from Gas Transition Allies, Rewiring America, and 350 Mass said the bills would require joint gas-electric planning, create an advisory council, eliminate subsidies for new gas hookups, shift investment toward repairs and clean alternatives, protect workers through retraining, and make utility plans more transparent. They argued these changes would reduce ratepayer costs, avoid stranded gas assets, and support orderly decarbonization. In addition, HEET testified on H. 3541, which would update greenhouse gas accounting to better reflect methane’s short-term climate impact, and H. 3543, which would establish a framework for managing shared thermal resources and thermal energy networks; committee members asked several questions about the meaning, ownership, and consumer-cost implications of the proposed “thermal commons.” No votes were taken during the hearing.

Transcript Highlights:

• acknowledge and respect that even small investments at the community level reap very, very large dividends

Committee: Joint Joint Committee on Ways and Means

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

Transcript Highlights:

• When we evaluate the cost of hydrogen infrastructure, we must include this health dividend in our balance

Transcript Highlights:

• When we evaluate the cost of hydrogen infrastructure, we must include this health dividend in our balance

Summary: The Senate Select Committee on Hydrogen Energy held an informational hearing on California’s hydrogen leadership, with the chair framing hydrogen as a complementary clean-energy pathway for hard-to-electrify sectors such as heavy-duty trucking, transit, rail, ports, industrial uses, and backup power. The first panel of private-sector witnesses from the California Hydrogen Business Council, Bosch, Hyundai, and Sierra Northern Railway described existing deployments in California, including hydrogen buses, trucks, fueling infrastructure, and the nation’s first hydrogen fuel cell switcher locomotive. They emphasized that the technology is commercially ready but scaling is constrained by permitting delays, high fuel and equipment costs, infrastructure gaps, and uncertainty around federal support and incentives. Witnesses urged stable state policy, targeted investment, and concentrated deployment in high-impact corridors such as ports and freight hubs. Committee members also asked about labor standards, community engagement, and the current size of the hydrogen vehicle fleet in California and abroad. The second panel focused on air quality, climate, safety, and public health. Testimony from CAPCOA, the Coalition for Clean Air, the California State Building and Construction Trades Council, and a UC Berkeley researcher argued that hydrogen fuel cells can reduce diesel-related pollution and health harms when used in the right applications, especially in ports, rail yards, warehouse corridors, transit depots, and backup power for facilities like data centers. Witnesses cautioned that hydrogen should be used selectively, produced as cleanly as possible, and paired with early community engagement, safety planning, and environmental justice protections. The researcher cited projected reductions in NOx, particulate exposure, premature deaths, and health costs under broader hydrogen adoption. Committee members discussed workforce training, apprenticeship programs, and how to balance near-term costs with long-term infrastructure value. The final panel provided public-sector updates from SamTrans, the Governor’s Office of Business and Economic Development, the Port of Long Beach, and First Public Hydrogen Authority. SamTrans described its transition to a large hydrogen bus fleet and said the loss of expected ARCHES funding created a major infrastructure gap; it asked the state to protect transit funding, restore a sales tax exemption for zero-emission buses, and address axle-weight rules. GoBiz said the state should focus on creating demand, reducing costs, and streamlining permitting, while acknowledging the disruption caused by the federal cancellation of ARCHES funding. The Port of Long Beach reported hydrogen truck deployments, port incentives, and a planned public fueling station, but said high costs, fuel shortages, and uncertainty have slowed momentum. First Public Hydrogen Authority described efforts to aggregate municipal demand and support new green hydrogen production projects, stressing the need for long-term market signals and financing. Committee members repeatedly emphasized the need for state support, infrastructure investment, and a diversified fuel strategy to keep hydrogen deployment moving forward.

Transcript Highlights:

• So I think the increase in the budget for FINS will pay triple dividends in helping us get children back

Committee: House Appropriations

Transcript Highlights:

• And if we can make sure we ramp up our efforts on the marine protected areas, that pays huge dividends

Transcript Highlights:

• types of personal income that are much more volatile, including capital gains, partnership income, dividend

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with opening remarks focused on the state’s long history of revenue volatility and the role reserves play in smoothing downturns. The Legislative Analyst’s Office explained that California’s personal income tax base is highly volatile because high-income earners’ income is tied to capital gains and other fluctuating sources, and that Proposition 2’s current reserve rules set aside 1.5% of General Fund revenues plus a share of excess capital gains, but cap constitutional deposits at 10% of General Fund taxes. The LAO said its analysis evaluates reserve policy over decades and found the current system would cover about 30% of funding shortfalls in a 90th-percentile downturn scenario over 50 years, which is an improvement over no reserve but still inadequate. The LAO recommended raising the reserve cap substantially, ultimately to 50% by 2055, with an immediate increase to 20% and gradual increases thereafter. It also suggested either replacing Proposition 2’s deposit formulas with broader rules that capture volatility across all tax revenues or, alternatively, depositing all excess capital gains rather than only a share. The Department of Finance said the Governor’s prior proposal similarly sought to raise the cap from 10% to 20% and exclude reserve deposits and withdrawals from the state appropriations limit, arguing those two constraints limited the state’s ability to save during recent revenue surges. Other panelists and members discussed whether reserves should be paired with broader structural changes, including unemployment insurance reform, safety-net funding, infrastructure reserves, and the projected surplus temporary holding account. The California Budget and Policy Center supported reserve reform but emphasized balancing savings with current needs and noted other tools such as revenue increases, borrowing from special funds, and the new surplus-holding account. Members debated the causes and effects of Proposition 13, the appropriations limit, business departures, and whether reserve policy should be more directly tied to protecting Californians’ access to health care, food assistance, child care, and other core services. No votes or formal actions were taken, as the hearing was informational only.

Transcript Highlights:

• types of personal income that are much more volatile, including capital gains, partnership income, dividend

Committee: Senate Budget and Fiscal Review

Summary: The Senate Budget and Fiscal Review Committee held an informational hearing on California’s Budget Stabilization Account, or Rainy Day Fund, with presentations from the Legislative Analyst’s Office, the Department of Finance, Practical Idealism Economics, and the California Budget and Policy Center. The LAO explained that California’s revenue volatility is driven largely by the personal income tax and high-income capital gains, and described how Proposition 2 deposits work, the 10% cap on the BSA, and the LAO’s evaluation that the current policy would cover only about 30% of funding shortfalls over 50 years in an unfavorable benchmark scenario. The LAO recommended raising the cap to 50% over time and either adopting broader deposit rules or depositing all excess capital gains. Finance said the administration had proposed raising the cap to 20% and excluding reserve deposits and withdrawals from the state appropriations limit. The Budget Center supported reserve reform but stressed balancing savings with current service needs and noted other tools such as revenue changes, borrowing from special funds, and the new Projected Surplus Temporary Holding Account. Committee members debated the purpose and adequacy of reserves, the role of the state appropriations limit, and whether reserves should be paired with broader fiscal reforms. Several senators argued that reserves are needed to preserve core services during downturns and that the current system is too complicated and too small, while others emphasized the need to protect spending on health care, child care, and other services for working Californians. There was also discussion of infrastructure spending as a possible countercyclical tool and whether deposits for infrastructure should be treated differently under reserve and SAL rules. The LAO said the Legislature has flexibility in defining infrastructure spending and suggested an infrastructure fund could function as a separate reserve-like mechanism. A significant portion of the hearing turned to broader tax and budget policy, including repeated references to Proposition 13, the state’s revenue structure, business departures, unemployment insurance financing, and the impact of inequality on California’s fiscal resilience. Some members argued Prop. 13 was driven by affordability concerns for homeowners, while others said it created loopholes that benefit corporations and constrain local revenue. The hearing did not take any vote or formal action; it remained informational, with the chair indicating the committee would continue questions and public comment after the panel discussion.

Transcript Highlights:

• types of personal income that are much more volatile, including capital gains, partnership income, dividend

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• To be a beacon of economic growth, a place where private investment will pay dividends to this community

Transcript Highlights:

• same information ...and just removing the telephone game, quite frankly, from the equation has paid dividends

Summary: The Community Safety Committee held an interim work session on crisis response, with members and witnesses discussing how Washington can better integrate 911, 988, mobile crisis, co-response, and alternative response models for behavioral health crises in public spaces. Travis Parker opened with an overview of the Sequential Intercept Model and the crisis care continuum, emphasizing early intervention, 988 access, regional coordination, navigators and peer support, and the need for sustainable braided funding. Several Washington witnesses then described current programs and system gaps, including the growth of co-response teams, the importance of integrating 911 and 988 rather than treating them as competing systems, and the need to reduce unnecessary emergency room use and improve first responder wellness and training. City, fire, and crisis-system representatives described local challenges and reforms. Kim Hendrickson of Poulsbo said most crisis calls still come through 911 and urged better coordination among field-based teams, more behavioral health training for fire/EMS, and more alternatives to ER transport. Laura Pippen, a designated crisis responder, described a strained involuntary treatment system, fewer DCRs statewide, difficulty getting law enforcement support for transports, and limited facility capacity, especially for substance use disorder. Jennifer Stuber and South County Fire’s Keith Sharp highlighted workforce training, a crisis responder certificate program, and first responder wellness efforts. Research witnesses Evan Lauder and James Pine said the evidence is still developing but generally supports on-scene resolution, reduced ED transport and detention in some models, and the importance of clear dispatch protocols, coordination, and ongoing evaluation. Dispatch and program operators then gave examples of how systems are working in practice. Katie Myers of Washington APCO/NENA said 911 remains essential, but needs evidence-based triage protocols, liability protections, and additional funding if it is expected to take on more crisis-response responsibilities. Whatcom County described embedding a “community connector” in the 911 center to coordinate alternative response, while ValleyCom reported that its 988 diversion pilot transferred 2,165 calls with 98% resolved through 988/211 without returning to 911. National examples included Denver’s STAR program, Albuquerque’s Community Safety Department, and Atlanta’s PAD initiative, each showing different ways to route low-acuity or behavioral-health-related calls away from police and toward clinicians, peers, or civilian responders. The session ended with Washington examples continuing, including Whatcom County’s alternative response team, underscoring the committee’s interest in refining and expanding integrated crisis response systems in the next session.