Transcript Highlights:

• adjust their rates, and so this bill: the community health centers are paid a set Medicaid rate per patient
• Okay, we could do a roll call vote on the next if you'd prefer.
• If you'd prefer, the motion was to send to the floor with a due pass recommendation. Mr.

Committee: House Health and Welfare

Transcript Highlights:

• </c><00:07:56.840><c> and</c> a relationship between the patient and a relationship between the patient
• </c><00:19:41.240><c> and</c> always review risks with patients and always review risks with patients
• I don't know if that helps patients.
• I want safe patients. I want no side effects.
• </c> who complete [clears throat] patient who complete [clears throat] patient examinations<01:04:32.080

Committee: Senate Health and Human Services

Transcript Highlights:

• And I knew we were lucky and had great actuaries, and they're so patient in explaining complex things
• , you know... ...and had great actuaries, and they're so patient in explaining complex things, you know
• The SCPP could provide input on a preferred ad hoc COLA policy if you'd like to...
• The SCPP could provide input on a preferred ad hoc COLA policy if you'd like to make a recommendation
• You could request bill language, actuarial estimates to support a preferred policy, anything that you

Committee: Joint Select Committee on Pension Policy

Transcript Highlights:

• So that's, I guess, kind of my preference from what I've heard Donna say, but I think we just need to
• I guess my preference would be to do the underfund or not do the underfund and do the inflators.
• That was the item regarding consultation with nursing homes so they could keep gero-psych patients and
• /or add them to their mix of patients.
• And I supported it, but the rest of the committee preferred that we take it out. Okay.

Bills: SB2015

Committee: Senate Appropriations - Human Resources Division

Summary: The committee met to review revised long sheets and section-by-section language for a human services/health budget bill, with much of the discussion focused on how to present block grant funding and full-time equivalent (FTE) positions for behavioral health clinics and CCBHCs. Members debated whether to keep FTE counts in the budget at all, ultimately leaning toward removing or zeroing out the FTE references while keeping the dollar authority, and reducing the salaries-and-wages block grant by about $4.75 million. They also discussed public health federal authority, agreeing to remove about $60 million in unused federal spending authority tied to COVID-era funds, and clarified that if federal money later becomes available it could be requested through the Emergency Commission. A major topic was the provider inflation increase. The House version had 2% and 2%, while members debated alternatives and appeared to settle, at least for further work, on 2% in the first year and 1.5% in the second year, with staff asked to recalculate the fiscal impact. The committee also reviewed FMAP changes, noting a revised 2027 FMAP estimate and its effect on general fund and other funds, and discussed whether to adjust public health and other line items accordingly. Several members emphasized that many of these numbers are still tentative and will be refined before final action. The committee also touched on several policy items and capital-related provisions, including behavioral health services, Medicaid expansion, the moratorium on new ICF beds, and a proposed amendment for a medical homes/fourplex-related item that would show a $400,000 legislative investment with repayment from a developer. There was extended discussion of the All True hospital/facility proposal, with some members favoring leaving it in with a smaller initial commitment and others preferring to remove it and revisit later in conference committee. The meeting ended with staff asked to continue updating the bill language and members instructed to review remaining sections before the next meeting; no final votes were taken in the portion provided.

Transcript Highlights:

• </c> commitment to advancing patient care. commitment to advancing patient care.
• </c> say, preferably the naysay. say, preferably the naysay.
• than a Medicare patient.
• than a Medicare a Medicaid patient than a Medicare patient.<08:07:47.440><c> That</c><08:07:47.760><
• That ought to scare every patient.

Transcript Highlights:

• So some people claim that the civil penalties for people who have been involved with serious patient
• in New York wouldn't happen here, where all of the patients would be at one hospital.
• So this acted like a sort of transfer center for all of the hospitals to distribute those patients.
• patients.
• They've been warm, welcoming, and patient with me. These state employees work hard.

Committee: Senate Director Nominations

Transcript Highlights:

• And then I can submit the rest of my testimony in writing if you prefer.
• I've taken histories from many hundreds of patients so that they can start eating disorder treatment.
• I recently had a patient asked to leave treatment because other patients on the unit were taking I recently
• had a patient asked to leave treatment because other patients on the unit were taking selfies in wheelchairs
• Family Pairing plan has over 20 features, including the ability to limit screen time, check content preferences

Summary: The committee heard public testimony on several bills. SB 5976 would revise the Washington Commercial Electronic Mail Act by narrowing liability for misleading email subject lines and changing damages and Consumer Protection Act claims. Business, retail, hospitality, and e-commerce witnesses supported the bill, saying recent litigation has created uncertainty and exposed routine marketing emails to excessive penalties. Consumer advocates and the Washington State Association for Justice opposed it, arguing the current law protects consumers from deceptive marketing and that the bill would weaken enforcement and class actions. SB 6111 would require age verification and parental consent for minors creating social media accounts, restrict providers’ use of minors’ data, and authorize enforcement by the Attorney General and a limited private right of action. The sponsor and several parents, medical professionals, and advocacy groups supported the bill as a response to social media harms, including addiction, depression, cyberbullying, eating disorders, and exposure to harmful content. Technology and civil liberties witnesses opposed it, warning about privacy, data security, constitutional concerns, and the difficulty of implementing reliable parental consent and age verification. The committee also heard SB 6250, which would raise the maximum small loan amount from $700 to $1,200 and index it to inflation. The sponsor and a lender representative said the change would update an outdated limit and preserve existing consumer protections. Opponents, including legal aid, poverty, housing, labor, AARP, and community advocates, argued the higher cap would increase debt burdens and fees for low-income borrowers and older adults. Staff also briefed SB 6257, which would allow illness-related tolling for trainee real estate appraiser licensing timelines, and SB 6289, which would direct Commerce to create a statewide economic development and competitiveness strategic plan; SB 6289 drew supportive testimony from Commerce, ports, economic development groups, and business interests. The committee also held confirmation hearings for several Gambling Commission and Lottery appointees, who described their backgrounds and service, but no votes or final actions were taken in the transcript.

Transcript Highlights:

• about food insecurity and housing and utilities and safety and transportation because families and patients
• There's a lot of them quit taking patients.
• So if you multiply that, just say roughly 15 patients left that community for other places for health
• They have a connection to those patient populations.
• It's a preference of those residencies to New Mexico residents, which I think just seems to be smart

Bills: SB37 , SB29 , SB37 , SB29

Committees: Senate Senate Finance , Senate House Appropriations & Finance

Keywords: high-quality literacy instruction, science of reading, structured literacy, reading instruction, literacy assessment, dyslexia screening, phonics, phonemic awareness, fluency, vocabulary, comprehension, biliteracy, English language learner, ELL, bilingual education, dual language program, reading intervention, reading difficulty, reading improvement plan, literacy coach

Transcript Highlights:

• And this is what most people prefer, and as previously covered, is the least expensive service model
• A 2008 study found that 70% of patients who received peer bridger services to help with that transition
• In total, about 7,800 Medicaid residents or patients in skilled nursing facilities rely on Medicaid.
• When they need it, they truly need it. 59% of skilled nursing facility patients have moderate to high
• In home care, we know that home care is the preferred setting for clients.

Committee: Joint Joint Legislative Executive Committee on Planning for Aging and Disability Issues

Summary: The committee held what was described as its final meeting and began with introductions, then received updates on several long-term care and aging initiatives that originated from earlier J-LEC work. A presentation on the WA Cares Fund reviewed its development from a 2014 research project to implementation, including premium collection, expanded eligibility for near-retirees, portability, recent technical fixes, and the creation of a supplemental private insurance market. The presenter said the program is now largely in place and ready for future use, with benefits expected to go fully live next summer. The Dementia Action Collaborative also reported on its state plan, including Project ECHO dementia training, dementia-capable community pilots through area agencies on aging, and ongoing work on early detection, brain health, and caregiver support. Another DSHS presentation covered the Medicaid Transformation Project, including Medicaid Alternative Care, Tailored Supports for Older Adults, presumptive eligibility, and health-related social needs benefits such as rental assistance and nutrition support, with officials saying the waiver is likely secure until its 2028 renewal. The meeting then shifted to emerging issues from advocates and ombuds. The long-term care ombuds described persistent staffing shortages, concerns about low wages, the growing use of technology and surveillance in care settings, private equity ownership of facilities, and illegal or pressured discharges and evictions. The developmental disabilities ombuds focused on people with developmental disabilities who remain hospitalized without medical need, the need for better mental health and behavioral health access, and workforce training gaps for people serving this population. Disability Rights Washington urged more community-based supports to reduce repeated institutionalization, pointing to gaps in programs such as PACT, GOSH, and peer bridgers, and recommending those services be expanded and bundled at scale. Provider and workforce panels emphasized similar themes. Washington Health Care Association and LeadingAge Washington said assisted living and skilled nursing facilities face workforce shortages, Medicaid rates that lag behind costs, increasing client acuity, behavioral health needs, and discharge bottlenecks. They highlighted the need for more flexible care models, improved case management, and better reimbursement, including for complex behavioral health cases. Supported living providers reported high turnover, underfunding, and a successful pilot that used enhanced rates and added training to place 30 hard-to-serve individuals. SEIU 775 argued that the central problem across settings is the direct care workforce crisis, driven by low wages and inadequate benefits, and said rate increases must be tied more directly to worker compensation. DSHS closed by noting heavy reliance on federal Medicaid funding, ongoing pilots in training, transportation, remote caregiving, smart-home technology, and rental subsidies, and said future planning should shift toward a multi-sector state strategy after the committee sunsets.

Transcript Highlights:

• The state government does not have the power to add its own preferred requirements to who they allow
• This will ensure we protect the privacy of patients undergoing a medical or psychological evaluation,
• The protection of a patient privacy is critical, especially when the provider of care needs to... ...
• The protection of a patient privacy is critical, especially when the provider of care needs to collect
• SB 247 authorizes a bill preference of up to 10% for contractors who meet workforce equity goals.

Summary: The Senate took up a series of third-reading bills covering horse racing, local taxation, consumer financial security, elections, utilities, batteries, sexual health, body-worn cameras, property tax treatment for inherited homes, adoptee birth records, youth housing bonds, workers’ compensation, and civil rights. SB 795 on horse racing, SB 762 allowing Hercules to seek voter approval for a sales tax increase, SB 505 requiring two-factor authentication for money transmitter platforms, SB 46 barring California ballot access for presidential candidates who have already served two terms, SB 73 restricting federal access to voting machines without a court order, SB 327 on utility oversight and ratepayer protections, SB 501 expanding battery producer responsibility, SB 608 on school contraceptive access, SB 691 on EMS-related redaction of body-worn camera footage, SB 288 clarifying Proposition 19 timing for inherited homes in probate, SB 381 giving adoptees access to original birth certificates, SB 492 creating a youth housing bond, SB 555 increasing permanently partially disabled workers’ benefits, and SB 747 creating a civil cause of action for constitutional violations by federal officers were all debated and advanced. Most measures passed on roll call, with SB 505 and SB 288 approved by unanimous roll call, and SB 73 carrying an urgency clause that also passed unanimously. Debate on SB 747 was the most extensive and contentious. Supporters argued the bill was needed to hold federal officers accountable for alleged constitutional violations, especially in immigration enforcement, and described it as a civil-rights remedy for people harmed by federal agents. Opponents said existing federal and state remedies already cover such conduct, warned the bill was politically motivated, and argued it could increase litigation and strain law enforcement resources. The bill nevertheless passed on a 30-10 vote, with the urgency clause also approved. SB 492 on youth housing also drew debate over state bonding and debt, with supporters emphasizing early intervention for homeless and foster youth and opponents arguing the state should avoid borrowing and instead fund projects through the budget; it passed 30-9 on both urgency and the measure. Other bills also drew focused testimony. SB 555 was presented as a long-overdue cost-of-living adjustment for permanently partially disabled workers’ benefits, and SB 381 was supported as a way to give adopted adults access to their original birth certificates for identity and medical-history reasons. SB 691 was framed as a privacy measure for patients receiving medical or psychological treatment, while SB 501 was described as closing a gap in California’s battery recycling and safety rules by adding medium-format batteries used in e-bikes and portable power systems. SB 762 was presented as a local option for Hercules to address revenue shortfalls, and SB 46 and SB 73 both centered on election integrity and constitutional questions, with members split over federal-state authority and ballot access.

Transcript Highlights:

• Representative Senator Weaver has been waiting very patiently, and hers is probably a simple one, huh
• </c><00:36:26.720><c> and</c><00:36:26.960><c> hers</c> has been waiting very patiently and hers has
• And I know some parents just prefer to homeschool.
• 00:52:27.359><c> some</c><00:52:27.520><c> parents</c><00:52:27.920><c> just</c><00:52:28.079><c> prefer
• </c><00:52:28.480><c> to</c> And I know some parents just prefer to And I know some parents just prefer

Committee: House Education Policy

Transcript Highlights:

• And then I can submit the rest of my testimony in writing if you prefer.
• I'll start, and then I can submit the rest of my testimony in writing if you prefer.
• I've taken histories from many hundreds of patients so that they can start eating disorder treatment.
• I recently had a patient asked to leave treatment because other patients on the unit were taking selfies
• family pairing plan has over 20 features, including abilities to limit screen time, check content preferences

Bills: SB5976 , SB6111 , SB6250 , SB6257 , SB6289 , SGA9060 , SGA9169 , SGA9265 , SGA9266

Committee: Senate Business, Trade & Economic Development

Keywords: commercial email, spam regulations, online marketing, privacy, consumer protection, SB 6111, Washington Protecting Children Online Act, online child safety, minor privacy, age verification, parental consent, social media regulation, digital platforms, user-generated content, content moderation, online harms, youth protection, data privacy, geolocation, targeted advertising

Transcript Highlights:

• provider is a licensed nonprofit organization exempt from federal income tax that does not charge patients
• for the durable medical equipment provided to the patients by the nonprofit.
• scooters, 2,149 manual wheelchairs and transport chairs, 365 hospital beds and mattresses, and 201 patient
• An exemption from a tax preference performance statement, JLARC review, and the 10-year expiration is
• We have concerns about this bill because it conditions eligibility for a tax preference on the use of

Summary: House Finance heard bill briefings and testimony on several tax and property-tax measures. HB 2175 would exempt licensed nonprofit providers of free durable medical equipment from retail sales and use tax on items reasonably necessary to operate and provide care; the sponsor and a nonprofit provider described how the bill would help organizations that refurbish and donate wheelchairs, beds, walkers, and similar equipment, and staff noted a small Department of Revenue fiscal impact. The committee then heard HB 2608, which revises the targeted urban area property tax exemption for nuclear facility projects by requiring labor standards, including submission of a workforce or project labor agreement and related wage/apprenticeship information, and extending project-completion deadlines. Supporters said it would help attract major clean-energy and nuclear supply-chain investment and jobs, while opponents from construction groups, environmental advocates, and some public commenters objected to the PLA requirement, the tax preference for nuclear projects, and the broader policy direction; tribal consultation concerns were also raised. No votes were taken on these bills in the transcript. The committee also heard HB 2227, which expands an existing REET exemption for affordable homeownership sales from self-help housing to other nonprofit affordable homeownership programs, including community land trusts. The sponsor and nonprofit witnesses said the change would lower transaction costs, improve affordability, and support permanently affordable resale models; staff clarified the exemption applies to the initial sale from the nonprofit to an income-qualified buyer, not later resales. HB 2528 would allow cities and counties that fully plan under the Growth Management Act to impose the second local REET without voter approval, aligning opt-in jurisdictions with those required to plan under GMA. Supporters from cities and counties said the revenue would help fund sidewalks, ADA upgrades, water, sewer, and other infrastructure, while opponents argued it would raise home-selling costs and bypass voters. Finally, the committee heard HB 2292, which would subject long-term capital gains from qualified small business stock to the state capital gains tax beginning in 2026. Staff said the bill would affect about 260 taxpayers and raise roughly $1.2 million in FY 2027, while the sponsor and supporters argued the current QSBS exemption mainly benefits very wealthy investors and should be treated like other capital gains; opponents from the tech and startup community said the exemption helps founders attract investment, keep companies in Washington, and create jobs, and warned the bill would send a negative signal to entrepreneurs. The committee also heard HB 2257, a Department of Revenue request bill making technical and administrative changes to the tax code, largely to codify guidance from last year’s sales-tax-on-services law and make other clarifications; DOR said it was intended to provide certainty and had no fiscal impact. School groups testified that the 5814-related service-tax changes have increased costs for districts, especially for staffing and professional learning, and asked for relief or a broader exemption.

Transcript Highlights:

• agencies like MoDOT, to be able to facilitate the idea of a hospital zone where we can make sure that patient
• Therefore, we have an increase in patients and visitors accessing our facilities.
• It's either this or that, which would you prefer? Okay. So it would be at sentence.
• Would you prefer?

Committee: House Corrections and Public Institutions

Transcript Highlights:

• agencies like MoDOT, to be able to facilitate the idea of a hospital zone where we can make sure that patient
• Therefore, we have an increase in patients and visitors accessing our facilities.
• Which would you prefer? Okay. So it would be at sentencing. Would you prefer?

Committee: House Corrections and Public Institutions

Summary: The Committee on Corrections and Public Institutions heard testimony on House Bill 2912, House Bill 2753, and a joint hearing on House Bills 2171 and 3292. HB 2912 would expand the state’s use of master agreements for small projects, raising contract thresholds and adding architects, engineers, and surveyors to standing agreements for work under $100,000. Supporters from the Office of Administration and private engineering/architecture firms said the bill would reduce delays, lower costs, and avoid repeated RFQ/RFP processes for small projects. There were no witnesses in opposition, and the hearing closed after favorable testimony. HB 2753 would create a hospital zone designation, similar to school or work zones, allowing municipalities or counties to establish reduced-speed areas around hospitals when local conditions warrant it. The bill was presented in response to traffic and safety concerns around a rural hospital expansion and a state highway running through the campus area. Hospital representatives, the Missouri Hospital Association, and another hospital system supported the measure, emphasizing pedestrian, staff, ambulance, and visitor safety; committee members questioned the proposed penalties and whether the bill could create a statewide mandate, but supporters stressed it was permissive and locally initiated. No opposition testimony was offered. HB 2171 and HB 3292, identical bills, would direct the Department of Corrections to create a motivational boot camp program for offenders ages 17 to 21 convicted of nonviolent offenses, with the goal of rehabilitation and possible expungement after completion. Sponsors said the program would emphasize discipline, physical activity, and therapy, and could be a cost-saving alternative to prison; they noted a federal issue requiring changes for DWI/CDL cases and discussed a six-year sunset. Committee members raised questions about eligibility, screening, expungement language, program design, and how the proposal would interact with other sentencing bills. No witnesses testified in favor or opposition, and the committee adjourned after the hearing.

Transcript Highlights:

• But when VA mental health providers leave the VA system, their patients are left to start over.
• The provider-patient relationship—do we have any insight as to what might be causing that churn?
• a patient face-to-face can be augmented and enhanced by telemedicine.
• This patient might actually be suicidal. Thank you, Mr. Chairman.
• Two or three more patients, or five more patients in the community, might be what keeps that hospital

Committee: Senate Senate Veterans' Affairs

Transcript Highlights:

• So please be patient with all of us, and hopefully we can get through this as quickly as possible.
• Folks do deserve honesty and transparency when shopping for their preferred wine.
• Folks deserve honesty and transparency when shopping for their preferred wine.
• What about a person who won't use someone's preferred pronouns?
• Assembly Member Colosa, thank you for patiently waiting. Good afternoon.

Summary: The committee heard several bills, with extensive testimony and debate. AB 2507 by Assembly Member Wynn would strengthen state consultation with federally recognized tribal governments by requiring clearer tribal liaison roles, a tribal advisory committee, and more consistent early engagement across agencies. Support came from Wilton Rancheria and the California Tribal Business Alliance, with members praising the bill as improving respect, coordination, and outcomes for tribes. AB 2024, also by Wynn, would require the Outdoor Advertising Act permitting process to reach a determination on submitted applications, aimed at reducing delays and uncertainty; it drew support from the outdoor advertising industry and the California Association of Realtors, with members describing it as a technical cleanup measure. Both bills were later moved to Appropriations, along with a consent calendar of several other measures. AB 1585 by Assembly Member Connolly would require wine labeled as American to be made from 100% American-grown grapes, aligning the federal “American” label with California’s existing 100% state-origin standard. Supporters, including California wine grape growers, family wineries, consumer advocates, and several local agricultural groups, argued the bill would improve truth in labeling and help struggling growers. Opponents from major wine companies and industry groups warned it could reduce flexibility, create labeling complications, and limit the ability to list varietal and vintage on some blended wines. After a lengthy debate over labeling standards, consumer expectations, and impacts on interstate wine sales, the committee passed the bill to Appropriations. AB 1605 by Assembly Member Ransom would allow judges to place a no-alcohol-sales notice on the licenses of repeat or serious DUI offenders, restricting their ability to purchase alcohol as a preventive measure. Supporters, including the California Police Chiefs Association, the Safe California Roads Coalition, and the California Association of Highway Patrolmen, said the bill would give courts another tool to reduce recidivism and save lives. Retailers and restaurant representatives raised concerns about implementation and ID-checking burdens, but the bill was amended and passed to Appropriations. AB 2211 by Assembly Member Hoover, which would allow craft distillers to operate a second tasting room, also advanced with support from the California Distillers Association. Finally, AB 1578 by Assembly Member Jackson, presented by Assembly Member Solache, would require anti-hate speech training for local and state elected officials; it drew strong opposition over First Amendment and definitional concerns, and members pressed for a clearer definition of hate speech before further action.

Transcript Highlights:

• that without significant patient issue.
• Patients often cannot access care in time.
• That patient assessment... ...patient assessment is going to be, or it will be, set up by the statewide
• They were talking to the patient. That patient ended up having a detached cornea.
• They were talking to the patient. That patient ended up having a detached cornea.

Committee: House House Appropriations Committee of Reference

Summary: The committee opened by announcing a heavy agenda and noting that Senate Bill 1176 would be held. It then took up several Senate bills, beginning with SB 1272, which appropriates $5 million for the City of Douglas as a state match for the Douglas Port of Entry project. The bill was amended to draw the money from the Water Supply Development Revolving Fund instead of the General Fund. Senator Gowen, the Douglas mayor, and city staff described the project as a $678 million federal investment opportunity that would support water, wastewater, and broadband infrastructure, create jobs, and improve border security. The committee approved SB 1272 as amended on a 15-0 vote with three present and one not voting. The committee next approved SB 1503, as amended, which expands the state death benefit to include civilian pilots employed by law enforcement agencies and applies the change retroactively to January 1, 2026. Senator Gowen and DPS leadership testified that the change was needed so the family of a pilot killed in a February helicopter crash would qualify for the benefit. The bill passed 18-0 with one not voting. SB 1274, as amended, created a separate timeshare salesperson license and training path; supporters said it would streamline licensing for people who only sell timeshares, while one member objected to the added rulemaking discretion. It passed 17-1 with one not voting. The committee also approved SB 1286, which expands veterinary telemedicine by allowing longer prescription periods for certain medications after an electronic exam, with shorter limits for antimicrobials. Supporters said it would help rural and disabled pet owners and had been negotiated to the satisfaction of veterinarians and telemedicine advocates. The bill passed 18-0 with one not voting. SB 1519, as amended, raised the off-highway vehicle weight threshold from 2,500 to 3,500 pounds and revised related registration and funding provisions; supporters argued it would reflect newer enclosed-cab vehicles and better align Arizona with neighboring states, while opponents warned of trail damage and said the study process was not complete. It passed 10-7 with one present and one not voting. Finally, the committee approved SB 1618, which restructures the Military Affairs Commission, adds members with defense and aerospace expertise, requires more frequent meetings and reporting, and updates the Military Installation Fund and related duties to better attract and retain defense missions. Supporters said the changes would help Arizona compete for military and defense investment, while some members questioned whether the commission’s mission was being broadened too far and whether the existing structure should instead be handled through other agencies. The bill passed 10-6 with one present and one not voting. The committee then considered SCR 1020, which would index legislative salaries to inflation or deflation starting with future officeholders if approved by voters. Supporters argued the current $24,000 salary had eroded significantly since 1998 and limited who could serve, while opponents objected to legislators voting on their own pay or preferred reducing session time instead. The resolution was approved and sent forward for voter consideration.

Transcript Highlights:

• We're providing hands-on care to California patients.
• They're providing hands-on care to California patients.
• Nurses see the impacts of corporate profiteering on patients.
• And how when these benefits are cut off, patients and their families...
• Help patients and their families to stay afloat, and how when these benefits are cut off, patients and

Summary: The joint informational hearing focused on California’s taxation of foreign subsidiaries of U.S. corporations, especially the state’s water’s-edge election versus worldwide combined reporting. Committee members and witnesses discussed how unitary taxation and sales-factor apportionment work, why multinational corporations are a small share of filers but a large share of tax liability, and how foreign income, profit shifting, and double taxation concerns affect policy choices. The Franchise Tax Board explained current filing rules, the seven-year water’s-edge election, and recent filing statistics showing about 21,562 water’s-edge returns in 2023, roughly 6% of C corporation filers but about half of corporate tax liability. The Legislative Analyst’s Office and FTB staff emphasized that revenue effects from eliminating water’s edge are uncertain because foreign affiliate income is not directly observable, and they noted possible revenue volatility and administrative complexity. Several committee members asked about foreign government pushback, the burden on FTB, whether certain industries are more likely to shift profits, and whether companies would leave California; witnesses generally said there was no strong evidence that firms would exit the state because tax liability is driven mainly by California sales. They also discussed how California already administers both methods, how the election can be advantageous or disadvantageous depending on a firm’s facts, and how federal reforms like GILTI/NCTI, CAMT, and OECD Pillar Two may affect the issue. The second panel presented sharply contrasting views. One professor and a tax policy advocate argued that water’s edge creates unfairness, encourages profit shifting, and leaves California with billions in lost revenue, while a Tax Foundation witness argued that mandatory worldwide reporting would tax the wrong income, create double taxation and litigation risk, and impose heavy compliance burdens, especially for foreign-based multinationals. A later panel from the California Budget and Policy Center supported closing the “water’s-edge loophole,” saying it would raise needed revenue for public services and level the playing field between large multinationals and smaller domestic businesses. No vote or formal action was taken; the hearing was informational only.

Transcript Highlights:

• Senator Hicks, you have been Waiting patiently, you are recognized for a question. You, Mr.
• I can do the questioning if you prefer.
• And I want to thank all of the people that have come to my office in particular and. being patient with
• I do understand the relationship between patient and client.
• I've called the ICU of some of the major hospitals in this state asking about an update on a patient

Bills: HB3239 , HB3391 , HB3557 , HB4128

Committee: Senate Agriculture and Wildlife

Keywords: veterinary medicine, definitions, animal husbandry, board of veterinary examiners, telemedicine, veterinarian-client relationship, animal welfare, commercial pet breeders, licensing, advertising, animal cruelty, Oklahoma Agricultural Extension, local funding, financial institutions, county extension services, state funds, wildlife conservation, hunting regulations, mountain lions, black bears