Transcript Highlights:

• There was a capital project loan.
• would revert to the Capital Development and Reserve Fund.
• shall revert to the Capital Development Fund.
• Directing legislative council service and all capital outlay applicants that future capital submissions
• Capital is just out of hand, and we're not there encompassed.

Committee: Senate Senate Finance

Transcript Highlights:

• teach my children as they got old enough to think about money is you don't sell or borrow against capital
• assets to spend on operating, on day-to-day living.
• It's taking money out of a capital asset, a pension fund, and using it to pay day-to-day expenses.
• Fix your day-to-day expenses and protect your capital assets.

Summary: The House was called to order, a quorum was confirmed, and members recited the Pledge of Allegiance and a prayer. The chamber approved the previous day’s minutes, held brief party caucuses, and received a Senate message announcing the signing of engrossed substitute House Bill 1187. The House then moved through third-reading business on several bills, concurring in Senate amendments before final passage votes. Engrossed Substitute House Bill 1795, dealing with school restraint and isolation practices, drew the most debate. Supporters said the Senate changes added clarity and strengthened protections around restraint, while opponents argued schools and private providers serving high-need students need more training and funding before restrictions are tightened. The bill passed 58-37. Engrossed House Bill 1941, allowing small cannabis producers to form limited agricultural cooperatives, also passed after debate over whether cannabis should be treated as an agricultural product; it passed 69-26. Engrossed Second Substitute House Bill 2034, concerning the use of surplus pension funds from the LEOFF 1 plan, generated extensive opposition from members who said pension money should remain for retirees and first responders and warned against using it to balance the budget. Supporters described the measure as a prudent fiscal step for an overfunded closed plan. It passed 50-46. House Bill 1526, which allows snack bar licensees to sell wine by the glass, passed 87-9, and Second Substitute House Bill 1701, allowing independently owned wineries and breweries to lease third-party kitchen space, passed 89-7. The House then went at ease.

Transcript Highlights:

• And in the case of EAEDC and the asset limit, one, this is one where the asset limit was sort of changed
• So, you know, it's human capital.
• So, you know, it's human capital.
• So we're trying to expand the human capital.
• I need more human capital there.

Committee: Joint Joint Committee on Ways and Means

Transcript Highlights:

• </c> committee to know that the the assets committee to know that the the assets we're<00:39:44.400><
• </c> those state-owned assets those state-owned assets that<00:40:28.000><c> were</c><00:40:28.240><c
• </c><00:51:56.200><c> the</c> the state of Minnesota as an asset the the state of Minnesota as an asset
• </c><00:52:00.520><c> is</c> another year and then that asset is another year and then that asset is
• </c> also going to build in the capital also going to build in the capital maintenance<00:54:40.640><

Committee: Senate Taxes

Transcript Highlights:

• relative to the May Revision beginning in July 2027 and provides funding to ensure no change to the asset
• The asset test limit alone would have threatened coverage for seniors and people with disabilities at
• It rejects the immediate $2,000 asset limit. It delays harmful dental cuts and cuts to our clinics.
• It rejects the immediate $2,000 asset limit. It delays harmful dental cuts and cuts to our clinics.
• and interstate rail capital program, and the low-carbon transit operations program.

Summary: The Assembly Budget Committee met to consider the 2026 Budget Act, which leaders said was the negotiated compromise with the Senate and was expected to move to the floor that evening. Opening remarks emphasized that the plan balances the budget over two years, reduces the structural deficit, and builds reserves, while also protecting core services in the face of federal cuts. Jason Sisney outlined the legislative budget framework and the likely floor bills, including AB 109, SB 110, SB 122, and SB 125. Department of Finance representative Eric Khali said the administration appreciated the two-year balanced approach and supported the modification in SB 122, while noting the package uses additional revenues and new spending to soften or reject some proposed cuts. Most of the discussion focused on major spending areas. Members and subcommittee chairs highlighted protections and additions for health care and human services, including rejecting the proposed Medi-Cal asset limit change, delaying premium increases, restoring clinic and dental funding, supporting distressed hospitals and county indigent care, and expanding county eligibility staffing to handle H.R. 1-related workload. Education members described record or expanded support for TK-12 schools, child care, special education, community colleges, teacher recruitment, and higher education, including a change to extend Cal Grant eligibility to age 30 for some community college students. Housing and homelessness funding was increased for HAP, multifamily housing, and the low-income housing tax credit, while public safety members pointed to investments in victims’ services, restorative justice, and prison closure savings. Several members also raised concerns or priorities tied to the budget deal. Some praised the package as a moral document that protects vulnerable Californians, immigrant communities, LGBTQ residents, seniors, and people with disabilities. Others noted unresolved issues, including the MCO tax’s impact on districts, the need for more support for local journalism, arts, biotech R&D incentives, transit and GGRF-related concerns, and the need for continued work on Prop. 98 and long-term fiscal resilience. The vice chair cautioned that despite the current progress, the state remains vulnerable to revenue volatility and warned that the budget should build more resilience against a possible downturn. No formal vote was taken in the portion provided, but the committee was preparing the budget package for floor action and final negotiations.

Transcript Highlights:

• By making this change, it recognizes the critical cultural and natural resources as vital assets to the
• And then,… It recognizes the critical cultural and natural resources as vital assets to the state, and
• Now, of course, we have a capital budget program, and the stewardship division was kind of under and
• So when we got capital monies in and we were looking at those investments into building new shelters
• I have to go down to, let's say I want Capital Construction.

Committee: Joint Legislative Evaluation & Accountability Program

Transcript Highlights:

• Our regions have unique assets and opportunities to build out strong economies.
• in the governor's office before this job, has let every region of the state figure out its unique assets
• AB 2243 creates a rigorous process to answer questions about capitalization levels, timelines for return
• AB 2243 creates a rigorous process to answer questions about capitalization levels, timelines for return
• Sorry for my extreme assets. Oh, so we're just missing... Can someone check now?

Summary: The Assembly Committee on Economic Development, Growth, and Household Impact heard several bills focused on trade, affordability, and public finance. AB 2745 (Fong) would update California’s international trade and investment strategy, add a public advisory process, and allow regional trade hubs; supporters from the California Asian Pacific Chamber of Commerce and California Forward said it would help California compete globally and attract investment, while no opposition testified. AB 2366 (Avila Farías) would require state agencies to analyze cost-of-living impacts when adopting regulations and direct the LAO to develop guidance; supporters from the New California Coalition and the California Manufacturers and Technology Association argued it would improve transparency and help address affordability, while members noted concerns about implementation and unintended consequences. The committee also heard AB 2243 (Haney), which creates a commission to study whether California should establish a state public bank and how it might be structured. Supporters from the California Public Banking Alliance, climate groups, and other organizations said a public bank could reduce borrowing costs and finance housing, climate, and small business needs; the California Bankers Association and credit unions opposed the bill, arguing it could compete with private banks, duplicate prior studies, and raise unresolved regulatory and cost issues. Several committee members said they would support the study concept but wanted the bill amended so any final decision would return to the Legislature, and the author agreed to clarify that point and remove language related to extending local public bank licensing timelines. The committee also took up consent items AB 2048 (Calderon), AB 2583 (Hoover), and ACR 129 (Haney), which were approved without opposition. After quorum was established, the committee voted AB 2366 out on a 7-0 basis to Judiciary, AB 2745 out on a 7-0 basis to Appropriations, and AB 2243 out on a 7-0 basis to Finance, with the consent calendar also approved.

Transcript Highlights:

• of Oklahoma, making more people aware of what this industry has to offer, whether it's erudite the capital
• Five-year capital projects, and while you see the cash on the books, those projects have been programmed
• We'll have enough tenants and enough activity out there to be a self-sustaining asset.
• And then, that way, the only thing we'd be asking for long term would be for capital projects.
• Anytime a large-scale capital project came available, that would be our only ask.

Transcript Highlights:

• This is capital outlay funds to support CTE, maintenance, and and and security.
• So this is capital outlay money that will be distributed to school districts using the SB 9 formula.
• how do we leverage those assets?
• How do we honor those assets? It's something that again you'll hear me talk about in a minute.
• Capital outlay oversight task.

Transcript Highlights:

• ensure that data center development in California does not lead to runaway energy costs, stranded assets
• Those four projects represent $3.1 billion in capital investment.
• Those four projects represent 3.1 billion in capital investment.
• And if I can add into the mix when you answer, is there a risk for these becoming standard assets?
• That's how we fund our capital work.

Summary: The joint informational hearing of the Assembly Committees on Utilities and Energy and Privacy and Consumer Protection focused on the energy impacts of AI and the rapid growth of data centers in California. Chairs and members emphasized that the state wants to support innovation and data center development, but only under terms that protect ratepayers, preserve reliability, and avoid stranded grid costs. Testimony from Lawrence Livermore National Laboratory, the California Energy Commission, the CPUC, CAISO, PG&E, Silicon Valley Power, and the Data Center Coalition described the scale of projected load growth, the uncertainty in forecasting, and the need for coordinated planning across agencies. Dr. Nate Gleason of Lawrence Livermore said data centers are a major and fast-growing share of electricity demand, with planning challenges driven by short construction timelines for data centers versus long lead times for transmission and generation. He urged stochastic planning, co-optimization of generation, storage, and transmission, and greater use of flexible load and demand response. CEC Director Alicia Gutierrez described the CEC’s bottom-up forecasting approach, based on utility energization requests and load profiles, and said California has over 23,000 megawatts of data center capacity requests in the CAISO footprint. CPUC Deputy Executive Director Luan Tesfai outlined recent actions on energization timelines, flexible service connections, PG&E’s Rule 30 tariff, and the commission’s resource planning and transmission permitting work. CAISO’s Neil Miller stressed that large loads affect transmission planning, interconnection, and reliability standards, and said the agency is preparing additional stakeholder work on technical issues. Utility and industry witnesses said California is already seeing substantial data center interest and is building out infrastructure accordingly. PG&E’s Mike Medeiros said the utility has more than 10 gigawatts of data center interest in its territory, has shifted to cluster studies, and is using flexible interconnection tools such as FlexConnect to speed service while protecting reliability. Silicon Valley Power’s Nico Prokos said data centers account for about 55% of its power use and that the city is investing heavily in transmission and local system upgrades to support projected load growth. He also warned that AI loads may be more variable than traditional cloud loads and that backup generation and air quality constraints complicate curtailment strategies. The Data Center Coalition’s Karabonder argued that data centers are also driving efficiency gains and support critical digital services, while urging better forecasting methods, more transparency, and regular backcasting. Members asked about statutory authority, data availability, flexible load, and whether current forecasts are sufficient for long-lead infrastructure planning. Witnesses said California already has authority to pursue flexible service and rate design, and that the CEC and CPUC have access to utility data, though out-year demand remains highly uncertain. CPUC representatives noted an advanced rate design rulemaking and said the commission is opening additional work on ratepayer impacts. No votes were taken during the informational hearing, and the discussion ended with continued questions about how California should structure planning, pricing, and reliability rules as AI-related load grows.

Transcript Highlights:

• </c> we'd be able to recycle the capital we'd be able to recycle the capital from<00:16:16.800><c> an
• Senator Wheeler: Well, would it be fair to say that the value of the Mitchell plant as an asset, the
• Same time, you're in a parallel path working towards either acquiring or building a new asset.
• </c><00:30:09.880><c> Those</c><00:30:10.600><c> two</c> building a new asset.
• Those two building a new asset.

Summary: The committee met for an initial natural resources hearing with a quorum present and introductory housekeeping, including prayer, roll call, and recognition of guests. Chair Smith outlined ground rules for questions and then invited Kentucky Power and American Electric Power representatives to the table to discuss a proposed plan involving the Mitchell Power Plant and future generation needs in Eastern Kentucky. Witnesses Cindy Wiseman, Alex Vaughn, and AEP CEO Bill Fehrman said the company’s goals are to stabilize and lower rates, reduce rate volatility, and expand generation in the Commonwealth. They explained that Kentucky Power seeks legislative authority to securitize its 50% interest in the Mitchell coal plant, describing securitization as a refinancing mechanism that would lower annual plant costs by about $34 million and help offset roughly one-third of the expected cost of adding new generation in Kentucky. They emphasized that the proposal is not intended to close Mitchell, and said Kentucky Power currently has no plan to divest its interest; the company still needs the plant to serve customers while it pursues additional dispatchable generation in Kentucky. Members pressed the witnesses on the plant’s book value versus fair market value, whether the Mitchell interest had ever been assigned a nominal value, how any divestiture proceeds would be handled, whether Kentucky Power owns Wheeling Power, and how long Mitchell can continue operating. The company said it values Mitchell at net book value for accounting purposes, not fair market value, and explained that Wheeling Power is a separate AEP affiliate and that West Virginia affiliates have already proposed securitization of their share. Witnesses said Kentucky Power’s interest cannot technically operate past 2028 without additional environmental control investment, while the West Virginia side is depreciating through 2040. They also described the financing timeline, saying securitization would require enactment of legislation, a PSC financing order, bond issuance, and then parallel work to acquire or build new generation, with any reinvestment terms to be addressed through the regulatory process.

Transcript Highlights:

• were making the best use of agencies, Where we were making the best use of agencies, facilities, the assets
• So that means you would go, I don't know how many years, depending on the number of assets you have,
• And the numbers that we had run based on what we think the total amount of assets that we have in the
• state, both on land, near water, and offshore, we're looking at roughly a billion dollars of assets
• But these are their assets that they're legally required to plug.

Bills: HB513 , HB581 , HB596 , HB660 , HB719 , HB766 , HB802 , HB940 , HB950 , HB1028 , HB1183 , HB1201 , SB233 , SB300 , SB303 , SB315 , SB324 , SB411

Committee: House Appropriations

Keywords: supplemental pay, law enforcement, probation officers, parole officers, constitutional amendment, plugging credit, inactive well assessment, oil and gas regulation, well plugging, Louisiana Department of Natural Resources, HB 660, district attorney salary, assistant district attorney salary, prosecutor pay raise, Louisiana prosecutors, state-paid salaries, warrant payment, R.S. 16:10, R.S. 16:11, general fund impact

Transcript Highlights:

• And I'm a capital outlay analyst with the Legislative Finance Committee.
• We haven't bonded capital in 6 years.
• It would have created a new major projects fund for higher education capital.
• It's just a matter of fortitude to get that asset management plan done.
• I mean, $6.3 billion in capital outlay projects.

Transcript Highlights:

• It being 9:30, I'd like to call to order the organizational meeting of the Long Range Capital Planning
• </c> Nyland I'm the real property asset Nyland I'm the real property asset manager<00:11:57.839><c> with
• </c><00:17:10.079><c> budget</c> 2025 welcome to capital budget 2025 welcome to capital budget overview
• Welcome to Long Range Capital Planning, sir. Thank you, Mr.
• </c> Rockingham welcome to long range Capital Rockingham welcome to long range Capital planning<00:45

Summary: The Long Range Capital Planning and Utilization Committee met in organizational session and first elected Representative John Cluder as clerk. A nomination of Senator Mark Makoni as vice chair was made but not voted on because he was absent; it was carried over to the next meeting. The committee also reviewed its guidelines and procedures, including how it handles property-disposal requests, late items, and informational materials, and then approved the November 12, 2024 minutes with one abstention from a member who had been absent. The committee then considered several state property and lease requests. It approved a 50-year, $1-per-year ground lease for about 5.66 acres at Berlin Regional Airport in Milan for a New Hampshire Army National Guard hangar/support facility, after hearing that the project is federally funded, intended for training and search-and-rescue support, and would have no permanent full-time staffing. The committee also approved a 30-year lease for the Department of Justice to move the chief medical examiner’s offices, morgue, and autopsy suite to 279 Pleasant Street in Concord, with testimony that the current Concord Hospital space is inadequate and that the new site would double body-storage capacity. Several Department of Safety and Department of Transportation property items were approved as well. Safety received approval for a 10-year lease, with renewal options, for the State Police aircraft hangar at 91 Airport Road in Concord. Transportation was authorized to continue disposal efforts for remnant parcels in Concord, Conway, Lisbon, Effingham, and Mount Vernon, with testimony explaining market conditions, appraisals, access limits, and easements; members asked questions about access and buildability, but each item was approved. During the Berlin lease item, the committee was told the FAA objects to any lease longer than 50 years at that airport, so the request was revised from 55 years to 50 years on the record before approval.

Transcript Highlights:

• AB 1052 establishes a legal framework to legitimize digital assets.
• As digital assets become more widely used, the risks grow.
• Digital assets are no longer abstract or futuristic financial instruments.
• influence to issue digital assets and personally profit.
• -based nonprofit focused on advocating for Bitcoin and digital assets.

Summary: The Assembly Banking and Finance Committee heard several bills, beginning with AB 407, which would expand the California Pollution Control Financing Authority. The author said the measure would increase flexibility and access to resources, and the bill was approved 7-0 and sent to the Committee on Local Government. The committee also adopted the consent calendar, which included AB 76, by a 7-0 vote. A lengthy portion of the meeting focused on AB 1065, which would prohibit swipe fees on the sales tax portion of credit card transactions. Supporters, including small business owners, restaurant and grocery representatives, and a payments-policy expert, argued the bill would reduce costs for merchants and consumers and rein in dominant card networks. Opponents, including banks, credit unions, and payment industry groups, argued the bill is likely preempted by federal law, would be difficult to implement, and could disproportionately affect community banks and credit unions. After extensive questioning about preemption, fraud, implementation, and consumer impacts, the committee rejected the bill on a 6-0 vote, but then granted reconsideration by a 7-1 vote. The committee then heard AB 1365, which would create the Cal Account Program, a zero-fee, zero-penalty state banking account for unbanked and underbanked Californians. Supporters said the program would help low-income households, survivors of abuse, and others facing barriers to traditional banking, while opponents from community banks and credit unions argued existing low-cost accounts and the Bank On program already address the need and raised concerns about cost, feasibility, and duplication. The bill advanced on a 6-0 vote and later received enough votes on the reopened roll to move forward to the Committee on Labor and Employment. The committee also approved AB 1052, which would create a legal framework for digital assets and address unclaimed digital property and restrictions on public officials issuing or promoting digital assets, and AB 1180, which would create a pilot program for paying state fees with digital financial assets and require a report on broader adoption. Both bills passed with broad support after brief testimony and discussion. Final roll calls later confirmed AB 1052 and AB 1180, along with AB 407 and AB 1365, were moved out of committee.

Transcript Highlights:

• , of course, one-time charges that local governments levy on new development projects to fund the capital
• So, Madam Chair, Representative Weber, each impact fee is for a specific capital improvement plan.
• Each impact fee is for a specific capital improvement plan.
• So each fee is very specific to a particular capital improvement plan.
• Doesn't participate in the cost, but yet gets to benefit from the capital asset that's created.

Committee: House Local Government

Transcript Highlights:

• One is capital outlay supporting guidance.
• Training on capital outlay, funding assistance.
• Especially if they have capital outlay. We, you know, we need to help them spend that.
• We have capital outlay to build this.'
• We only received $50,000 in capital outlay.

Committee: House House Rural Development, Land Grants And Cultural Affairs

Transcript Highlights:

• same company, there has been understandable hesitation from companies to allow their facilities and assets
• bill addresses regulatory lag by permitting the natural gas utility to defer costs in a regulatory asset
• Right now, GRIP allows recovery. of essentially capital items, capital depreciation associated with that
• bill would allow carrying costs and a profit margin for the utility for those expenses, both the capital
• And in the meantime, we are depreciating those assets. That's pipe in the ground.

Bills: HB2766 , HB2891 , HB3334 , HB3791 , HB3911 , HB4021 , HB4041 , HB4042 , HB4384 , HB4426

Committee: House Energy Resources

Keywords: inactive wells, oil and gas regulation, environmental protection, Railroad Commission of Texas, well plugging, Railroad Commission, penalties, violations, pipeline safety, civil penalties, criminal penalties, wildfire prevention, oil and gas, safety inspections, administrative penalties, excavation, notification, utilities, underground facilities, regulatory compliance

Transcript Highlights:

• authorization and reauthorization for programs to support a wide range of state capital investments.
• These resources complement the capital program.
• We continue to invest in their capital needs via MassDOT's capital improvement plan to ensure that RTA
• assets are maintained in a state of good repair.
• projects. ...priorities so they know what they want to move forward with capital projects.

Committee: Joint Joint Committee on Ways and Means

Summary: The Joint Committee on Ways and Means held a hearing at UMass Amherst on Governor Healey’s fiscal year 2027 budget proposal, focusing on energy/environment-related transportation issues and the Massachusetts Department of Transportation. The hearing opened with welcomes from the co-chairs and local legislators, followed by remarks from UMass Amherst Chancellor Javier Reyes, who highlighted the university’s research, sustainability, transportation, and workforce contributions and thanked the administration and legislature for support of public higher education. MassDOT Secretary and MBTA General Manager Phil Eng, along with agency leaders, presented the administration’s transportation budget package. They described a combined funding plan through House 2, a Fair Share supplemental budget, and a Chapter 90 bill, emphasizing investments in MassDOT operations, snow and ice response, regional transit authorities, the MBTA, bridge and pavement repair, housing-related transportation improvements, sustainable aviation fuel, microtransit, and local road programs. Officials also highlighted record highway construction activity, safety initiatives such as work zone speed cameras and pedestrian protections, RMV service and equity improvements, airport and drone technology programs, and MBTA gains in reliability, accessibility, ridership, and service expansion. Committee members asked about Western Massachusetts priorities, especially Chapter 90 funding for rural road mileage, bridge repairs, and the Compass Rail/West-East Rail program. MassDOT officials said pending federal grants were moving forward, with some awards recently obligated and others expected as federal processes advance, and they said Palmer Station remains part of the long-term rail plan. Members also raised the Cape Cod bridges and the need for multi-year Chapter 90 funding. Officials said the Sagamore Bridge procurement would begin soon, with construction targeted for 2027, and reiterated that transportation investments support jobs, local economies, and municipal infrastructure statewide.

Transcript Highlights:

• Washingtonians own a quarter of a trillion-dollar asset.
• So in addition to roads, cities' own bridges, and other assets and infrastructure, transportation is
• So in terms of expenditure trends since 2019, capital spending fluctuated during and after the COVID
• So making sure that we're watching all of our assets in various parts.
• So making sure that we're watching all of our assets in various parts.

Bills: SB5989

Committee: Senate Transportation

Keywords: aircraft fuel tax, tax revenue distribution, aviation funding, transportation, state revenue