Transcript Highlights:

• And that isn't a policy, and I don't... ...provide those waivers, and that isn't a policy, and I don't
• So this first, we're going to start with the State Board policy on tuition, Policy 805.1, with the board
• And so this is their tuition policy.
• Another one of our newest partnerships this summer, we were granted a partnership or a contract with
• I already got a great partnership.

Summary: The committee first reviewed the 2024-25 tuition waiver report for the North Dakota University System. Staff explained that waivers were reported for degree-seeking students and broken out by residency, institution, and waiver type. Members asked about partial versus full waivers, institutional discretion, athletic waivers, and whether campuses have published guardrails or transparency requirements. Staff said most waivers are set by institutions, with some statutory and board-required categories, and that athletic waivers are a small share of total waiver dollars. The report showed total gross tuition of $354.5 million, tuition waived of $38.9 million, and 11,193 of 42,040 students receiving some waiver. Members also discussed how waivers affect net tuition revenue, housing and food collections, and whether campuses are using waivers strategically compared with scholarships and other funding sources. The committee then heard a presentation on tuition rates by campus and State Board policy. Staff explained the board’s tuition factors for resident, Minnesota reciprocity, contiguous-state/U.S. nonresident, and international students, and noted that campuses often seek exceptions based on program-specific competition and enrollment goals. Members asked whether rates are based on cost or competition, and staff said campuses typically bring forward estimates and market comparisons when requesting special rates. The presentation also reviewed general fund appropriations versus net tuition revenue by campus, and members discussed how local tuition decisions and waivers do not directly affect the state funding formula, though they do affect institutional revenue and reserves. Questions were also raised about the Higher Learning Commission’s financial composite indicator and how it differs from the more intuitive reserve and revenue figures. The committee next received a broad overview of non-higher-education entities affiliated with the State Board of Higher Education, beginning with NDSU agriculture-related units. Dr. Greg Lardy described the State Board of Agricultural Research and Education, the NDSU Extension Service, the Agricultural Experiment Station, and the branch research centers, emphasizing their statewide role in crop and livestock research, extension education, and county-based outreach. He outlined funding mixes for extension, the experiment station, and branch stations, noting that grants and contracts support both research and education, while the agronomy seed farm is self-funded through seed sales. Members asked about the new and vacant FTE pool, R1 research status, matching requirements for grants, and whether state appropriations count toward research expenditures. Dr. Lardy also highlighted major research impacts, including crop varieties, virtual fencing, AI-assisted weed control, and NDAWN weather data. The Northern Crops Institute and the Upper Great Plains Transportation Institute also presented. NCI described its role in market development, technical services, and education for regional agriculture, its governance through the Northern Crops Council, and its funding from state appropriations, other states, and earned revenue. Members asked about the source of out-of-state funding, intellectual property, and the institute’s international reach. UGPTI then outlined its transportation research, federal and state funding structure, and work on road and bridge condition assessments, travel demand modeling, and workforce training. No votes were taken during the portion of the meeting reflected in the transcript.

Transcript Highlights:

• That’s a partnership with us and the IRS.
• Another partnership is offsets. So we have an offset program.
• Department of Energy released a policy flash, unilaterally... The U.S.
• Are there ways for us to be creative to look at supporting public-private partnerships?
• Whatever the policy was at the time that the coverage was in effect will be the policy that's followed

Summary: The Assembly Budget Subcommittee on Accountability and Transparency held a hearing focused on three issues: federal funding cuts and delays, possible state revenue impacts from reduced IRS enforcement, and the fiscal effects of AB 218 on local governments. The Franchise Tax Board described how state and federal tax systems are closely linked, how most returns are filed electronically through software, and how FTB relies on IRS information sharing for compliance, fraud prevention, offsets, and nonfiler work. Members raised concerns that federal staffing cuts at the IRS could weaken audits of large corporations and reduce California revenue, and asked about VITA and ITIN filers; FTB said it was not aware of VITA reductions, noted ITIN returns are processed the same as other returns, and said ITIN filing appeared slightly down this year. The Department of Finance said it is monitoring federal developments, summarized the continuing resolution and reconciliation process, and noted that California lost nearly $940 million in earmarked federal projects under the CR, while major federal budget decisions remain uncertain until the President’s budget and later congressional action. The University of California reported substantial federal pressure on research, student aid, and health care. UC said hundreds of millions of dollars in federal awards have already been canceled, with additional threats to NIH and DOE facilities-and-administration rates, graduate fellowships, student loan repayment plans, international student visas, Pell Grants, and Medicaid/Medi-Cal funding. Committee members pressed UC on the effects of DEIA-related federal restrictions, the loss of clinical trials and research staff, and the impact on low-income students and patients. UC said it is pursuing litigation with the Attorney General and other institutions, but emphasized that court action is only a temporary solution and that sustained state and private support may be needed. The second panel addressed the fiscal consequences of AB 218, which extended the statute of limitations for childhood sexual abuse claims against public agencies. FCMAT presented a report with 22 recommendations, including better statewide data collection, financing mechanisms, a possible victims compensation fund, and prevention measures. Los Angeles County described a tentative $4 billion settlement tied to AB 218 claims, saying it will require reserves, borrowing, and long-term annual payments through 2050, while also forcing curtailments and cuts to vacant positions to preserve services. Members discussed insurance pools, retroactive premiums, unidentified future claims, and the need for a compensation fund or other financing tools. No formal votes were taken; the hearing concluded with public comment, including testimony from local health officials about nearly $400 million in terminated federal public health grants and the resulting layoffs and service impacts.

Transcript Highlights:

• Today, economic policy is national security policy.
• They don't have policy experts to explain to them what's going on.
• USMCA isn't just policy; it's California's economic lifeline. Thank you.
• USMCA isn't just policy; it's California's economic lifeline.
• It's not just good trade policy.

Summary: The joint hearing of the Assembly Select Committee on California-Mexico Bi-National Affairs and the Assembly Economic Development, Growth, and Household Impact Committee focused on the USMCA and how the agreement affects California’s economy, jobs, supply chains, and competitiveness. Opening remarks emphasized California’s heavy trade dependence on Mexico and Canada, the importance of stable trade rules, and concerns that tariffs or uncertainty could harm workers, small businesses, agriculture, logistics, manufacturing, and border communities. Members said the hearing would help inform a future legislative report or resolution on California’s priorities for the agreement’s review. Academic and policy witnesses argued that the USMCA is central to North American economic integration and California’s role in it. Testimony from UC San Diego and CETYS University described California and Mexico as co-producers rather than simple trading partners, highlighting sectors such as medical devices, aerospace, semiconductors, logistics, and advanced manufacturing. Witnesses also warned that the upcoming review could involve not just trade but security and immigration issues, and they urged a stronger, longer-term agreement with more certainty, better border efficiency, and new tools such as specialized technician visas, binational certification standards, innovation zones, and a technology fund. Go-Biz and chamber representatives said USMCA provides predictability, market access, and support for small and medium-sized businesses, while also creating compliance burdens through rules of origin, labor standards, and customs procedures. They pointed to California’s trade missions, export support programs, and state-level cooperation with Mexico and Canada as ways to help firms participate in regional supply chains. Mexican government and business representatives said the agreement is largely functioning well, that Mexico’s public consultation process received nearly 800 submissions and about 2,000 chapter-specific comments, and that many stakeholders favor maintaining or extending USMCA. No formal votes were taken; the committee heard testimony and asked witnesses for follow-up information to inform its report and future recommendations.

Transcript Highlights:

• </c> and policy bills has come to fruition. and policy bills has come to fruition.
• </c> a policy year.
• We can work on policy a policy year. We can work on policy next<01:14:38.880><c> year.
• This was just a policy correction, and there is policy in the bill now.
• </c> brought forth as a policy. Senator Cron. brought forth as a policy. Senator Cron.

Transcript Highlights:

• Is the policy framework embedded within House Bill 8?
• The Dallas College and Aviation Industry Partnership.
• Navarro College and John Deere partnership.
• These partnerships strengthen local economies and the equipment.
• initiative that leverages partnerships with organizations.

Committee: House Higher Education

Transcript Highlights:

• Yes my name is Annie Armitage, and I'm your senior policy analyst covering the educator workforce.
• I'm also a policy analyst, and I'm assisting Annie on our teacher prep research. Thanks Evan.
• And Annie mentioned earlier the partnership and the importance of quality partnerships between EPPs and
• So, you You mentioned the partnership with UNM and UNMH in terms of potential health care needs.
• What are some of the partnerships that may be really key for us.

Transcript Highlights:

• upon... ...more changes and more continued layering of policy upon policy upon policy to get to a point
• So let's talk about goals, about the shared goals in this partnership.
• We approach this partnership the same way.
• Then this partnership with GovStream AI came about.
• for future partnerships.

Committee: Senate Housing

Summary: The committee heard presentations on several housing finance and permitting tools. Chattanooga described its payment-in-lieu-of-taxes (PILOT) affordable housing program, which ties property tax abatements to the number and affordability level of units provided, using a calculator based on market rents and HUD affordability levels. Senators asked about the 15-year term, auditing, and whether the program was attracting private market-rate developers; the presenter said the first mixed-income project would include 278 units with 42 affordable units and that annual compliance monitoring is conducted. Shoreline then described its MFTE and inclusionary housing approach, emphasizing that longer 20-year exemptions helped make projects pencil out and that most recent development has clustered around light rail station areas; city staff said they will study whether the program should be adjusted further and noted the importance of the new state inclusionary housing law. The Department of Commerce and MRSC discussed tax increment financing, proportional impact fees, and the CHIP program. Commerce explained that TIF can fund public improvements such as roads, utilities, parks, broadband, and some affordable housing or child care facilities, but jurisdictions should only use it when development is likely to occur and the public benefit justifies the investment. On impact fees, Commerce said fees should be proportional to the actual infrastructure demand of a project and based on capital facility plans; it also noted that fee reductions for affordable housing must be backfilled through CHIP. Senators asked for more information on CHIP funding levels, project selection, and how much of it supports affordable housing. Commerce also presented the first annual permit-timelines report under the 2023 permitting reforms, saying 2024 data showed timelines still exceeding statutory goals and that future reports will examine factors such as paper versus electronic processing and local reform efforts. Auburn and Bellevue highlighted local permitting innovations. Auburn said it has moved to fully electronic review, uses MyBuildingPermit.com, has internal performance standards, and offers a stock-plan program that can cut later review to about a week; staff said most stamped plans still require at least two review cycles and that the city is watching how middle-housing code changes affect development. Bellevue described a pilot with GovStream AI to use artificial intelligence for pre-application assistance, document triage, and plan-review support, with the goal of reducing back-and-forth and improving application quality. Finally, Seattle presented a pilot for accessory dwelling unit co-development in which a mission-driven partner would finance, build, and manage backyard ADUs for homeowners, with the owner eventually buying out the partner; senators raised questions about rent-setting, management fees, liability, and what happens if a homeowner sells early. The committee also heard from community land trust representatives, who explained how ground leases and resale restrictions keep homes permanently affordable and allow public subsidies to serve multiple generations.

Transcript Highlights:

• upon... ...more changes and more continued layering of policy upon policy upon policy to get to a point
• So let's talk about goals, about the shared goals in this partnership.
• We approach this partnership the same way.
• Then this partnership with GovStream AI came about.
• for future partnerships.

Summary: The Senate Housing Committee heard presentations on a range of housing finance, permitting, and affordability tools. Chattanooga described its affordable housing PILOT program, which uses a per-unit property tax abatement tied to the rent loss from providing affordable units, with a 15-year term and annual compliance monitoring. Committee members asked about the program’s structure, whether it had been used elsewhere, and who was participating; the presenter said the first mixed-income project would bring 278 units with 42 affordable units and that the model was attracting private market-rate developers. Shoreline then described its MFTE and inclusionary zoning approach, emphasizing that longer tax exemption periods and station-area zoning changes had helped spur development, with most current pipeline projects concentrated near light rail stations. The committee also heard from the Municipal Research Services Center and the Department of Commerce on tax increment financing, proportional impact fees, and permit timelines. Commerce explained that TIF can fund public improvements such as roads, utilities, broadband, and some affordable housing or child care facilities, while proportional impact fee guidance is intended to help jurisdictions charge fees more closely aligned with actual project impacts. On permit timelines, Commerce presented its first annual report under recent law changes, using 2024 as a baseline year and noting that reported timelines were generally longer than statutory goals; members asked about outliers, paper versus electronic processing, and whether back-and-forth between applicants and staff was driving delays. Commerce said it would follow up with more data, including on CHIP funding and permit reform practices. Several local governments then shared permitting process improvements. Auburn reported relatively short review cycles and described its move to fully electronic permitting, internal performance standards, and a stock plan program that speeds review for repeated home designs. Bellevue described an AI permitting pilot with a local startup to help with pre-application questions, document triage, and plan review, aiming to reduce incomplete applications and revision cycles. Seattle presented a pilot for accessory dwelling unit co-development in which a mission-driven partner would help homeowners split lots, finance, build, and manage ADUs, with the homeowner eventually buying out the partner and retaining ownership; committee members asked about rent setting, management fees, and default risk, and staff said they would follow up. The committee also heard brief overviews of community land trusts and limited equity cooperatives as permanent affordability models, with presenters urging continued state and local funding support and policy recognition for these approaches.

Transcript Highlights:

• at Chula Vista, and I hope we can hear from both CSU and Southwestern Community College about the policy
• In March 2025, we updated this policy to align with the recent change in federal regulations.
• prioritize partnerships that don't impact the State Library's own core functions.
• Right now, the state does not have a clear policy for how to fund the Law Library.
• You know, we need a proactive partnership regarding layoffs, staffing, and early exits.

Summary: The Assembly Budget Subcommittee on Education Finance met to review CSU and State Library budget issues, enrollment trends, the Capital Fellows program, and a Title IX update. Chair David Alvarez opened by stressing that CSU faces serious financial pressure, including a systemwide deficit and proposed cuts that he and several members said were too large and likely to harm access, course offerings, and student services. Public comment focused heavily on the Braille Institute Library, with patrons, staff, veterans, and advocates urging restoration of funding and warning that the proposed cut would severely affect blind and visually impaired Californians across Southern California. Several CSU faculty, staff, and union representatives also opposed the proposed reductions and warned of larger class sizes, fewer sections, and layoffs. On the CSU core operations item, the Department of Finance explained the Governor’s proposal to reduce ongoing General Fund support by about $375 million and defer a 5% base increase, while the LAO said CSU core funding would be roughly flat once tuition and targeted augmentations were considered, but warned that rising costs and prior shortfalls would still force campuses to cut spending. CSU’s Chancellor’s Office said the proposed cut would deepen existing problems, citing prior-year budget gaps, job losses, reduced course sections, and student-service reductions. Members pressed Finance and the LAO on whether cuts could be made more surgically, especially at the Chancellor’s Office or in institutional support rather than in instruction, and the LAO said the Legislature has flexibility to target cuts more specifically. CSU also described ongoing consolidation efforts, including shared services among campuses and the planned Cal Maritime/Cal Poly San Luis Obispo integration, while cautioning that savings are not yet fully known. The committee then discussed CSU enrollment. The LAO recommended holding enrollment targets flat because the budget does not add new funding, while CSU reported strong recent growth, including more California residents, record first-year enrollment, and expanded direct admissions and transfer pathways. Members questioned why some campuses with high demand turn away many applicants while others continue to lose enrollment, and CSU said it is shifting resources from campuses with sustained declines to those with demand, using a 10% below-target threshold. The committee also discussed whether enrollment declines mirror local population trends, how to improve marketing and program alignment, and whether lessons from Cal Poly Humboldt’s conversion could inform other campuses such as Sonoma State. The Capital Fellows item drew a Finance proposal for a salary increase and an LAO counterproposal for a smaller raise plus future COLA language; the committee kept the item open. Finally, CSU reported progress on Title IX compliance, saying it has completed most State Auditor recommendations, expanded civil rights staffing, and increased training, prevention, and case-management efforts, though members asked how proposed budget cuts might affect those services.

Transcript Highlights:

• The authority's primary mode for facilitating projects must be through partnerships with transmission
• The low-cost financing and public-private partnerships the authority provides will lower costs in risk
• The policy to exclude federal grants it difficult to give a precise estimate.
• The policy to exclude federal grants and rebates used for bus purchases from the depreciation formula
• Assumed savings, but at a lower level with some different assumed policies.

Summary: The Appropriations Committee held public hearings on several bills and took executive action on House Bill 2747. HB 2747 would change how Washington estimates future revenue in its four-year balanced budget outlooks by using the official revenue forecast instead of the current 4.5% growth assumption for the next two biennia. Staff described the bill as a technical change with indeterminate fiscal effects, and supporters said it would make budgeting more realistic and sustainable. The committee adopted a technical amendment and then reported the bill out of committee with a do pass recommendation by a vote of 26 ayes, 3 nays, and 2 excused. The committee also heard Second Substitute Senate Bill 6182, which would create an abortion savings program funded by a new annual assessment on health carriers offering exchange plans. Staff said the bill would generate about $10 million in fiscal year 2027 and about $2.1 million annually thereafter, with most funds going to grants for abortion care providers and some administrative costs for the Office of the Insurance Commissioner and the Department of Health. Supporters said it would stabilize access to abortion care and help low-income patients, while opponents argued it would force taxpayers and insurers to subsidize abortion and raised concerns about oversight, morality, and premium impacts. Substitute Senate Bill 6355, which would create a Washington Electric Transmission Authority to support new transmission projects and related tribal clean energy work, drew testimony from utilities, labor, clean energy advocates, counties, and landowners. Supporters said the state needs faster transmission buildout to improve reliability, support clean energy, and reduce congestion costs; opponents and county representatives raised concerns about eminent domain, loss of local tax revenue, board accountability, and the need for stronger landowner and county involvement. Staff estimated the bill would have a several-million-dollar general fund impact and noted possible indeterminate local revenue effects. The committee also received a briefing on engrossed Substitute Senate Bill 6260, which would reduce funding or eligibility for several K-12 programs, including bus depreciation, Running Start, and transition to kindergarten; public testimony was overwhelmingly opposed, with school officials, educators, community college representatives, students, and rural districts warning of reduced opportunities and harm to small and low-income districts.

Transcript Highlights:

• So this is definitely not an abstract policy dispute, as all of you know.
• Equity and inclusion policies.
• But we also know that we need partnership and continued partnership during this time.
• Thank you for your partnership.
• I'm the Director of State Policy at Public Health Advocates.

Transcript Highlights:

• strong partnership across state, local, and private sectors.
• We urge the Legislature to restore this policy in the budget.
• We need continued partnership from the state to restore promised funding and advance policies that keep
• And while we've made a lot of progress with the policy here, additional policies are necessary for the
• But there's a number of policies moving forward.

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:

• Simple policy changes like those proposed in House Bill 1021 can help and show.
• Michael Nguyen, Director of Policy.
• I am the Director of Policy for the Professional Educator Standards Board.
• We have several policy bills that we'll be asking you to support.
• The good news is, we saw on the policy bill front that won't cost anything.

Summary: The Joint Committee on Veterans and Military Affairs heard updates from Joint Base Lewis-McChord, Navy Region Northwest, Fairchild Air Force Base, the Coast Guard, state licensing agencies, the Washington National Guard, and a veterans behavioral health presenter. Across the military briefings, commanders emphasized readiness and major missions, while also highlighting quality-of-life issues affecting service members and families, including housing, child care, food insecurity, medical and dental access, and spouse employment. JBLM reported progress on 212 new family homes, ongoing PFAS cleanup, continued work on the Lewis Army Museum, and efforts to expand child care and food assistance. Navy Region Northwest discussed its economic impact, infrastructure projects, environmental stewardship, and future shipyard and homeport planning. Fairchild described its tanker and survival training missions, child care shortages, food insecurity during the shutdown, aging housing, and concerns about wind turbine development near military airspace. The Coast Guard highlighted its polar icebreaker buildup, rebuilding of Base Seattle waterfront infrastructure, and access-to-care challenges at remote stations such as Neah Bay, along with progress on housing and dental services. Committee members repeatedly raised support for military spouses, child care, food access, and licensure compacts. The Department of Licensing reported about 9,000 active military members or spouses licensed, with expedited processing, license portability, and an average time to license of just under nine days. The Department of Health said it had implemented prior military licensure laws, maintained a military-to-civilian crosswalk for health professions, and issued 129 credentials to military-trained health professionals and 1,300 to military spouses/domestic partners in the last fiscal year, all within 30 days. The Professional Educator Standards Board said military-affiliated applicants for educator credentials receive a streamlined process requiring fewer documents and expedited review. Members asked about verification of military spouse status, compact implementation, and whether future federal changes could affect existing interstate compacts. The Washington National Guard briefing focused on dual state and federal missions, election security, wildfire readiness, and a new National Guard Response Force requirement to train 700 personnel. The Guard also described the impact of the recent federal shutdown on employees and outlined policy and budget requests, including youth academy protections, alignment of the Washington Code of Military Justice with the federal UCMJ, making Civil Air Patrol a division of the Military Department, public records exemptions for critical infrastructure, 911 system improvements, disaster assistance funding, and capital requests for a new Joint Forces headquarters and a King County Readiness Center. Members pressed for more detail on drone threats, wildfire response, and whether the new response force would be used for immigration-related duties; the Guard said it understood the force to be intended for all-hazards response and would follow up. The final presentation, from a veterans behavioral health representative, focused on access barriers, suicide risk, and the need for culturally competent care, especially for women veterans and caregivers. The speaker cited high veteran suicide rates in Washington, long waits for services, and the ways child care, transportation, chronic pain, substance use, and military sexual trauma complicate treatment. No formal votes were taken during the meeting, but members and presenters discussed several pending or future legislative priorities, including licensure compacts, child care, military justice updates, and support for military and veteran families.

Transcript Highlights:

• I want to thank the senator for his partnership in this work.
• Which is, I wanted to understand more about these partnerships.
• So they have to have a policy in place to do. A policy to respect EU copyright law.
• Sorry, Nagarajan, background in tech policy, strategy, and innovation.
• My name is Zeon Pham from the Institute for California AI Policy.

Summary: The Senate Judiciary Committee and Assembly Privacy and Consumer Protection Committee held an informational hearing at Stanford on the intersection of artificial intelligence, copyright, transparency, and California’s creative economy. Chairs and members emphasized that the hearing was not on a specific bill and would not include a vote, but was intended to gather information ahead of the next legislative session. Opening remarks stressed the tension between protecting artists’ intellectual property and allowing AI innovation to continue in California, with several members noting the state’s outsized role in both the tech and entertainment sectors. The first panel featured Professor Pamela Samuelson and Stanford researcher Rishi Bommasani. Samuelson reviewed the current copyright litigation landscape, including dozens of lawsuits against generative AI companies, and explained that fair use will likely be central, especially the market-effects factor. She said state action is constrained by federal copyright preemption, but transparency, privacy, and deepfake-related regulation may still be possible. Bommasani described widespread opacity around training data among major California AI companies, discussed AB 2013 and the EU AI Act as transparency models, and warned that disclosure rules face enforcement and design challenges. Members asked about market dilution theories, open-source models, user data, machine unlearning, and what California can do without conflicting with federal law. The second panel included SAG-AFTRA board member Jason George, Animation Guild president Danny Lynn, and OpenAI copyright counsel Mark Gray. George and Lynn argued that AI training on performers’ and artists’ work without consent or compensation is already harming careers, devaluing creative labor, and enabling digital replicas and style imitation; both supported stronger transparency so rights holders can identify when their work is used and negotiate licenses. Gray said AI is increasingly being used as a productivity tool and pointed to growing partnerships between AI companies and publishers, studios, and record labels, while acknowledging concerns about deepfakes and specific harmful uses. Committee members pressed him on labeling AI-generated content, training-data disclosure, and how to protect creators while still encouraging innovation. No formal action or vote was taken.

Transcript Highlights:

• Good policy.
• It is a true partnership, and I just want to leave you with one thought. When was it?
• I serve as a senior manager of state public policy at Lucid Motors.
• “State public policy at Lucid Motors.
• All right, and then we’ll have a second one for CAC because of the partnership.

Committee: House House Rural Economic Development Committee of Reference

Summary: The committee first took up HB 2950, which would allow a governing body to approve a tourism improvement area to promote tourism and lodging. Supporters from the Arizona Lodging and Tourism Association, Visit Yuma, and Visit Phoenix said the bill would give communities a voluntary, locally controlled tool to market destinations, attract events, and strengthen rural and urban tourism economies without raising taxes on residents. Members discussed tourism’s economic importance in places like Yuma and other rural communities, and the bill was moved forward with a due pass recommendation on a 7-0 vote. The committee then held a presentation on rural economic development in Pinal County, focusing on the Lucid Motors project and its workforce partnership with Central Arizona College. Speakers from the Arizona Commerce Authority, Central Arizona College, and Lucid described the Drive48 training program, the creation of a skilled workforce pipeline, and broader economic impacts such as higher wages, job creation, and related growth in housing and infrastructure. The committee also read proclamations recognizing Lucid Motors and Central Arizona College for their contributions to economic development in rural Arizona. Finally, the committee heard HB 2946, which revises development fee requirements and prohibits development fees on accessory dwelling units. The sponsor argued the bill was intended to address housing affordability and reduce burdens on families and builders, while cities, towns, the League of Arizona Cities and Towns, and municipal attorneys opposed it, saying it would shift costs from growth to existing taxpayers and weaken the principle that growth should pay for growth. An amendment in the chair’s name was adopted to remove county-related provisions and make clarifying changes. The amended bill was then passed with a 4-1 vote and two members voting present.

Transcript Highlights:

• And what if the directive was lawful, but really terrible policy?
• And what if the directive was lawful, but really terrible policy? Mr.
• She understands partnership, accountability, and results.
• Our partnership with the Arizona Office of Tourism is critical.
• Our partnership with the Arizona Office of Tourism is critical.

Committee: Senate Director Nominations

Transcript Highlights:

• We appreciate the committee's continued partnership in that effort. Thank you. Thank you.
• And we have partnerships... Part of our overall beverage container recycling program.
• One of the biggest policy levers to reverse environmental injustices.
• So I'm joined here by our branch chief of the Office of Policy, Gabby Nemu Ceno, and... ...policy, Gabby
• I Cal EPA, and I'm over fiscal policy.

Summary: The Senate Budget Subcommittee No. 2 on Resources, Environmental Protection and Energy heard budget overviews and several budget change proposals from CalRecycle, CalEPA, and DTSC. CalRecycle outlined its proposed 2026-27 budget of 987 positions and $1.9 billion, and members focused on edible food recovery funding under SB 1383, beverage container recycling fees and infrastructure under SB 1013, plastic packaging reduction under SB 54, and composting implementation under SB 279. CalRecycle said edible food recovery has recovered more than 300 million meals but lacks ongoing funding, explained that beverage container processing fees are set by statute and reflect higher recycling costs for difficult-to-recycle materials, and noted that SB 54 implementation will include a pollution prevention mitigation fund for legacy plastic cleanup. The committee also discussed the need for more composting capacity and the role of volunteer cleanup groups, while public commenters urged continued funding for food recovery, composting, and landfill response. CalEPA presented its department overview and a proposal to strengthen landfill response and enforcement, emphasizing climate, air quality, water, and cleanup priorities. Secretary Garcia described the agency’s work on methane monitoring, toxics reduction, drinking water compliance, Exide cleanup, pesticide alternatives, and implementation of AB 617, while also noting the agency’s response to federal rollbacks. Members pressed CalEPA on landfill fires and subsurface elevated temperature events, especially at Chiquita Canyon, asking about authority, scientific resources, and when intervention should occur. CalEPA said it has authority to respond but needs more coordinated technical and enforcement capacity, and later presented a $5.1 million, 12-position multi-agency proposal involving CalEPA, CalRecycle, DTSC, and the Water Board to address current landfill events and improve future prevention and response. DTSC and the Board of Environmental Safety presented several proposals tied to reform implementation, hazardous waste oversight, and emerging waste streams. DTSC reported progress in clearing its permit backlog, advancing safer consumer products regulations, and continuing Exide cleanup, while seeking additional resources for cost recovery and enforcement, PFAS work, recycling infrastructure for solar panels and lithium batteries, and a new statewide planning division to implement the hazardous waste management plan and consolidate reporting systems. The Board of Environmental Safety described its oversight role, public meetings, permit appeals process, and fee-setting authority, and said its priorities include permit appeals, hazardous waste plan oversight, and performance metrics. Members questioned whether DTSC was creating too many new subdivisions, but the department said the new structure is needed to handle growing workload and modernize regulation. Public testimony generally supported the landfill proposal, DTSC consumer product enforcement, water board staffing, and continued funding for food recovery and composting programs.

Transcript Highlights:

• I call this meeting of the House Housing Finance and Policy Committee to order.
• The decisions made in this committee are important, and he encouraged the committee to look for policy
• So some of the things that relate to housing policy that you might hear about...
• I do know that there is a partnership; I just don't know what the conditions of that partnership are.
• I do know that there is a partnership; I just don't know what the conditions of that partnership are.

Committee: House Housing Finance and Policy

Transcript Highlights:

• </c><00:12:47.600><c> but</c> to change not just policies but to change not just policies but behaviors
• </c><00:27:15.039><c> program</c> through our state partnership program through our state partnership
• These partnerships have moved Sagal.
• I believe approach to the partnership.
• Gene, would you please partnerships.

Transcript Highlights:

• I understand the authorities pursuing a public-private partnership, and that they believe that this partnership
• What could materialize, and would be great if it did, would be a private equity partnership.
• However, we are not aware of any progress toward these recommended policies and procedures.
• . and my office and project stakeholders can hold them accountable for that policy.
• But overall, the partnership is the strongest I’ve seen it from 2010 to present. Thank you.

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.