Transcript Highlights:

• too much pressure on flexible funds to backfill the costs.
• Capital program that puts far too much pressure on flexible funds to backfill the costs.
• We understand that you plan to bond revenues to address cost overruns.
• Rivian welcomes the opportunity to operate within a clear regulatory framework.
• We are fully committed to meeting ...to operate within a clear regulatory framework.

Summary: The Senate Transportation Committee held public hearings on three bills: SB 6225, a proposed substitute bond bill authorizing transportation funding bonds; SB 6005, the proposed substitute supplemental transportation budget; and SB 6354, a bill to expand access to electric vehicles through limited direct sales by qualifying EV-only manufacturers and changes to the documentary service fee. Staff explained that SB 6225 would authorize $1.1 billion in general obligation bonds, an additional $400 million for selected Move Ahead Washington highway projects, a $500 million increase in SR 520 bond authority, and the expiration of some older unused bond authorizations. For SB 6005, staff described a $17.5 billion supplemental budget with $1.5 billion in new funding, including reappropriations, preservation and maintenance spending, ferry investments, Climate Commitment Act-related adjustments, and a six-year balanced plan through 2031. For SB 6354, staff outlined the direct-sales framework for qualifying EV manufacturers, dealer licensing requirements, penalties for violations, and a fee increase that would direct revenue to EV rebates and multimodal transportation. Testimony on the budget and bond bills was broadly supportive from transit, local government, labor, construction, ports, and climate advocates, who praised preservation funding, ferry investments, safety programs, EV charging, rail electrification, and flood-response or local project funding. Several witnesses asked for specific project or account changes, including support for Skagit Transit, Day Road and Poplar Way bridge-related funding, Spokane TMC operating support, Kent corridor funding, and additional rail capital projects. Some speakers also urged more Climate Commitment Act funding for EV rebates, charging, and rail electrification, while others warned against deeper cuts to local programs and stressed the need for long-term preservation and bonding to stabilize the system. Testimony on SB 6354 was sharply divided. Rivian, Lucid, and several Washington auto dealers supported the bill as a compromise that would allow limited direct sales for EV-only manufacturers while preserving franchise protections and generating revenue for EV rebates. Climate advocates supported the bill as a way to accelerate EV adoption and asked that more of the fee revenue go to instant rebates for low-income buyers. In opposition, the Alliance for Automotive Innovation and Honda argued the bill creates unequal rules, weakens the franchise system, and was not the product of a true compromise. The committee announced that SB 6225 and SB 6005 would be in executive session Thursday at 8 a.m., with amendments due by noon the prior day, while SB 6354 would be scheduled for executive action later.

Transcript Highlights:

• on a 247 basis and their operate on a 247 basis and their continued<00:04:17.840><c> operations</c><
• </c> they also have to remain operational they also have to remain operational even<00:04:26.720><c>
• </c> preliminary estimates indicate the cost preliminary estimates indicate the cost to<00:10:54.079>
• If you look at the project cost, the total forecasted cost is $151 million.
• ,</c><00:22:45.200><c> the</c> If you look at the project cost, the If you look at the project cost,

Summary: The committee heard capital plan presentations from the Justice and Public Safety Cabinet, the Personnel Cabinet, and the School Facilities Construction Commission. The Justice Cabinet described its large portfolio of more than 900 facilities across the state and said decades of underfunded maintenance have created a backlog of repairs. Requested projects included a high-acuity mental health treatment facility for juvenile justice youth, two female detention centers to support the regional detention model, major corrections repairs and replacements, a new kitchen at Eastern Kentucky Correctional Complex, a new dormitory at the Kentucky Correctional Institute for Women, completion of a new Eastern Kentucky prison, DOCJT training facility upgrades in Richmond and Madisonville, State Police radio system replacement and post construction, a combined Frankfort headquarters/Post 12 facility, and expanded crime lab and storage capacity. When asked about the high cost of the EKCC kitchen project, staff said construction inside an operating facility raises costs and that building a new adjacent kitchen would be more economical in the long run. The panel also asked about Fish and Wildlife officers training at DOCJT; staff said they do and that the training is funded through the CLEFT fund. The Justice Cabinet also said the recently enacted Senate Bill 4’s AI inventory and registry requirements would be part of its enterprise application and AI inventory system work. The Personnel Cabinet requested funding to replace CHRIS, the state’s human resources and payroll system, which supports payroll and benefits for about 48,000 employees and the Kentucky Employee Health Plan for roughly 192,000 members. Staff said the current SAP-based system went live in 2011, is approaching end of support in 2030, and has not received functionality enhancements since 2016. They said the replacement is estimated at $151 million, with most of the cost tied to professional services and software, and that the project would begin in July 2026, go live by July 2030, and require a stabilization period through 2032. In response to questions about outsourcing payroll or reusing existing systems, staff said the complexity of state HR, payroll, tax updates, and integrations with other agencies makes outsourcing or partial reuse impractical. The School Facilities Construction Commission introduced its role in helping all 171 school districts address unmet facility needs, focusing on core school facilities such as roofs and elementary buildings rather than athletic projects. No votes or formal actions were taken during the excerpted discussion; the meeting consisted of presentations, explanations of requested projects, and member questions.

Transcript Highlights:

• and management cost share.
• and operational activities.
• And we have to start looking at the number one cost. Number one cost is labor.
• And we have to start looking at the number one cost. Number one cost is labor.
• costs related to a new pension adjustment. project is indeterminant pending the associated costs related

Summary: The Emergency Board approved a series of consent federal grant applications from the Natural Resources and Public Safety subcommittees, along with several budget and position requests. The board approved grant applications for parks, transportation, judicial, emergency management, higher education, school nutrition, and other programs, including retroactive approvals where deadlines had passed. One member objected to the Natural Resources consent grants over concerns about future funding needs, but the motion still passed. The board also approved a one-time increase for Judicial Department court security, including digital privacy protections, circuit court security, and a statewide facilities assessment. A major discussion centered on Southern Oregon University’s financial stability. The Higher Education Coordinating Commission reported on SOU’s structural deficits, declining enrollment, and projected cash shortfall. The subcommittee recommended, and the board approved, allocating $7.5 million from the special appropriation for short-term stability, with a required update at the September 2026 Emergency Board meeting and a future request for the remaining funds. Members debated the broader crisis in higher education, with several saying SOU’s situation reflects systemwide enrollment and funding pressures and that long-term restructuring will be needed. The board also approved an AmeriCorps volunteer generation grant, an apprenticeship expansion grant, and a Department of Education nutrition equipment grant. In public safety, it approved funding for Oregon Military Department readiness facilities, a statewide evacuation planning tool, and a juvenile justice information system modernization report, while requiring a follow-up viability report. The Department of Justice received approval for additional antitrust positions and expenditure limitation, though several members raised concerns about the funding structure and incentives tied to settlement revenues; the motion passed despite objections. In natural resources, the board approved funding for the Water Resources Department’s well abandonment, repair and replacement grants, an assistant water master position in Washington County, groundwater data collection in the Lower Umatilla Basin, a wetlands remote sensing pilot, and parks-related grant applications for operations, maintenance, and capital improvements. Members generally supported the requests but raised concerns about geographic equity, long-term sustainability, and whether some county responsibilities were being shifted to the state. The meeting also included discussion of a Department of Emergency Management evacuation tool as an urgent wildfire preparedness measure, with members emphasizing its potential to save lives.

Transcript Highlights:

• While we have seen an increase in the cost for goods and services, we have seen an increase in the cost
• The second category is optimizing operational costs. Capacity.
• annual outgoing cost and the estimated out-year cost.
• The initial build-out of this module would cost approximately $300,000 in one-time costs and $100,000
• Is there anything else that we ought to know about their operation that's costing the state money?

Bills: SB1 , SB 1

Committee: Senate Finance

Transcript Highlights:

• done quickly, also on cost.
• Obviously the 345 is kind of an average cost from the transmission operators themselves.
• of transmission costs.
• is to assign cost to those who created those costs.
• And we want improved cost outcomes. allocation, making sure that those who cause the cost pay the cost

Bills: SB 6 , SB6 , SB504 , SB765 , SB815 , SB929

Committee: Senate Business & Commerce

Transcript Highlights:

• We utilize for search and rescue operations that go on to our aircraft. Those exceed those costs.
• I don't know what the current cost was of the armored vehicle 13 years ago, but that cost has significantly
• when we talk about the price of equipment and the operational costs for that division and the needs to
• provide those services to Missouri citizens that are on the waterways, those costs have Those costs
• And so those fees are collected, and those fees help with the operational cost of that training academy

Committee: House Corrections and Public Institutions

Summary: The committee first met in executive session and adopted a House Committee substitute combining House Bills 2592, 2834, and 2787 into one measure. The combined substitute was then voted do pass by a unanimous roll call, recorded as 15 ayes and 0 noes after a brief correction to the tally. The committee then heard House Bill 1786, which would raise the Highway Patrol’s spending threshold for purchasing vehicles, watercraft, aircraft, and related specialized equipment without returning to the legislature from $100,000 to $500,000. The sponsor and Highway Patrol witnesses said the current cap is outdated because boats, armored vehicles, bomb trucks, and aircraft equipment now cost far more than $100,000, while members asked about inflation, the revolving fund, and whether a lower increase might be more appropriate. No opposition testimony was offered. Next, House Bill 2885 was heard. It would redirect the first $1 million in annual boat registration fee revenue away from general revenue and into the Missouri Water Patrol Division. The sponsor and Highway Patrol said registration revenue has declined while operating costs have risen, and the division needs the money to support enforcement, search and rescue, dive operations, and boating safety programs. Members asked how much revenue is collected and whether the change would affect other programs; testimony indicated the bill would mainly earmark existing revenue rather than increase overall department funding. The committee also heard House Bill 2694, which would exempt four fee-supported funds from the end-of-biennium sweep to general revenue: the Highway Patrol Academy Fund, the State Forensic Laboratory Account, the Boiler and Pressure Vessels Safety Fund, and the Elevator Safety Fund. The sponsor and Department of Public Safety witnesses said the sweeps make long-term planning difficult and can disrupt training, lab support, and safety inspection operations, though members raised concerns about excess balances, guardrails, and whether fee reductions should be considered if reserves grow too large. Finally, House Bill 1712 was heard; it would make intentionally failing to charge an electronic monitoring device a crime, closing a loophole in existing tampering law. The sponsor, a sheriff, and other witnesses said the bill addresses deliberate attempts to evade monitoring, while members discussed battery warnings, rural access to electricity, and the costs and benefits of pretrial release. No votes were taken on the later bills before the committee adjourned.

Transcript Highlights:

• For example, ramping up the cost of programs, there were hiring challenges, etc.
• We have seen estimates of workload data and potential costs to the courts.
• the cost of continuing to confine them and keep them in custody.
• Those will improve. operational efficiencies within CDCR.
• Sure, so in 2023 the county was operating two juvenile halls in the county.

Transcript Highlights:

• ' claim costs.
• And the removal, those two presumptions are driving all this costs that L&I is indicating.
• I mean, Amazon... ...local operations that are driving the decision-making.
• The cost of living adjustment is based on the change in the average monthly wage.
• They can't just go get a raise and keep up with rent, groceries, or medical costs.

Bills: SB5379 , SB6106 , SB6147 , SB6180 , SB5927 , SB6287

Committee: Senate Labor & Commerce

Keywords: interest arbitration, parks and recreation, public employees, labor relations, employee rights, laid-off employees act, WARN notice, mass layoff, business closure, plant closing, worker adjustment and retraining notification, employment security department, employee notice, layoff notice, worker protections, job loss, employment loss, public records exemption, privacy, employee names and addresses

Transcript Highlights:

• The first item up on the slide covers business operations.
• of vehicles will create additional cost savings for agencies.
• cost increases.
• And oftentimes the cost of the repair is more than the $10,000.
• And oftentimes the cost of the repair is more than the $10,000.

Committee: Senate Appropriations Committee on Agriculture, Environment, and General Government

Summary: The committee first took up confirmation of five water management district appointees: Ted Everett and Jerome Pate to the Northwest Florida Water Management District, Michael Romano to the Big Cypress Basin Board of the South Florida Water Management District, and Paul Bissfam, John Hall, and Virginia Johns to the Southwest Florida Water Management District. Senator McClain moved confirmation, the roll was called, and the committee recommended all appointees favorably. Members then received the Governor’s Florida First budget presentations for environmental agencies. The environmental package totaled about $5.8 billion and emphasized Everglades restoration, water quality, resilience, land conservation, state parks, hazardous waste cleanup, wildlife management, wildfire response, and citrus support. DEP highlighted more than $1.4 billion for water resources, including $810 million for Everglades restoration, $202 million for Resilient Florida, $150 million for Florida Forever, $70 million for state parks, and $221 million for contamination cleanup. FWC, Agriculture, and Citrus funding priorities were also outlined. Members asked about Florida Forever funding, state park wastewater and septic needs, a reduction at the Florida Wildlife Research Institute, and beach renourishment funding for storm damage. The committee also heard the General Government portion of the budget, which totaled about $2.9 billion and covered DBPR, Lottery, Financial Services, Management Services, Revenue, PERC, and the Gaming Control Commission. DBPR requested funds for license processing, an animal abuse hotline, fleet replacement, and IT retention. FGCC sought new enforcement squads and an IT licensing/enforcement system. The Lottery proposed marketing, retail engagement, IT, and retention funding. DMS emphasized building modernization, fleet telematics, 911 and radio upgrades, cybersecurity, a local government cybersecurity grant program, and data interoperability. PERC described a sharp increase in labor cases and elections after SB 256 and requested staffing, election administration, and hearing officer pay increases. DFS highlighted My Safe Florida Home, fire marshal and first responder support, financial investigations, and gold and silver legal tender implementation. Revenue requested operational and IT funding and support for fiscally constrained counties. Questions focused on DBPR’s condo and HOA initiatives, cybersecurity grant reductions, and the My Safe Florida Home program’s abandoned grants and matching requirements. No additional votes were taken, and the committee adjourned.

Transcript Highlights:

• They already covered that costs.
• Was that the full, complete cost of the project, or did you also have a portion of the cost?
• </c><01:15:16.800><c> cost?
• </c> costs.
• And essentially the two costs costs.

Bills: HF2148 , HF2693 , HF2542 , HF1141 , HF1770 , HF1489 , HF1709 , HF244 , HF1266 , HF807 , HF2619 , HF1340

Committee: Senate Capital Investment

Keywords: affordable housing, local control, revolving loan fund, community partnerships, Minnesota housing policy, housing, locally controlled housing, Minnesota Housing Finance Agency, housing infrastructure bonds, state bonds, bonding bill, supportive housing, permanent supportive housing, homelessness, veterans housing, senior housing, manufactured home parks, community land trust, single-family housing, multifamily housing

Transcript Highlights:

• benefit-cost ratio is 2 to 1.
• And then the second one was cost. You talked about, well, we know the cost.
• cost estimate.
• Further, a successfully completed initial operating segment whose design and operation has proven to
• If we have a blackout, that would cost Californians billions of dollars, in both economic costs and in

Transcript Highlights:

• You have Operation Game Thief, 100%.
• But if it’s good enough for the owner for the operating, it should be good enough for whoever’s operating
• have an ID card or have passed the test before they’re operators.
• It would make that cost go up.
• not including writers operators I mean is what she you know but you know so not including writers operators

Committee: Joint Arizona Off-Highway Vehicle Study Committee

Summary: The Arizona Off-Road Vehicle Study Committee met to review Senate Bill 1519 and broader OHV policy issues, including funding, mitigation, enforcement, and education. Staff summarized the bill’s amended provisions: raising the OHV/ATV weight threshold from 2,500 to 3,500 pounds, directing ADOT to create a new usage classification, creating an Off-Highway Vehicle Law Enforcement Fund, and setting a 50% vehicle license tax for vehicles in the 2,500–3,500 pound range. Members discussed how many vehicles would be affected, with industry testimony estimating about 2,600 new Arizona sales in that weight class in 2025 and growth of roughly 10% annually. Committee members also debated whether changes should be revenue-neutral to ADOT/HIRF or instead generate dedicated enforcement and mitigation funding without reopening HIRF distribution. The committee then turned to education. Staff reviewed SB 1567, which requires OHV course completion before issuance of an OHV indicia and includes a report due December 1, 2026. Game and Fish said the mandatory education appears to be improving behavior, especially helmet use by children. Several witnesses, including representatives from Riding Arizona and ABATE Arizona, supported a consistent statewide training model and suggested expanding the requirement from owners to operators, with possible reciprocity or compact-style recognition with other states. Members also raised practical questions about proof of completion, online access, and how law enforcement would verify compliance. For mitigation and enforcement funding, committee members and invited stakeholders discussed the scale of the need. A research presentation from Arizona Sportsmen for Wildlife Conservation estimated about $3.5 million annually for additional law enforcement and about $7.5 million annually for natural resource mitigation, for a combined target of roughly $11 million per year. The estimate was based on county sheriff input and existing federal land-management data on illegal or user-created roads, with a statewide rough range of 12,000 to 17,000 miles of roads needing some form of closure or decommissioning. Members emphasized that the estimate did not include all possible costs, such as fence repair, tank restoration, or environmental compliance, and discussed soft versus hard closures, prevention, and the need to pair any mitigation spending with enforcement and education. No formal vote was taken in the portion provided; the committee mainly received information, asked questions, and continued discussion of possible recommendations.

Transcript Highlights:

• We have to be able to have the people to operate our system 24/7, 365 days a year.
• We have to be able to have the people to operate our system 24/7, 365 days a year.
• But I would say that my constituents are complaining about the cost of living in general.
• </c> complaints and such around of the cost complaints and such around of the cost that<00:19:00.600>
• While we were using the coal generation plant, we were third in the nation in utility cost.

Summary: The committee first took up House Bill 387, which would amend MSD governance and spending rules in Louisville. The sponsor said the bill was intended to add oversight and accountability in response to large MSD rate increases, though the original rate-approval provision had been removed because of concerns about contracts and bond ratings in Oldham and Bullitt counties. MSD Executive Director Tony Parrott testified that MSD is a public utility serving more than 800,000 people through wastewater, stormwater, and flood protection services, and argued that most rate pressure comes from federal and state mandates tied to a consent decree and other orders. He said MSD already provides annual notice and bond approvals through Metro Council, offers customer assistance programs, and needs flexibility for advertising, public notices, recruitment, and compliance. Members discussed stormwater funding, aging infrastructure, flood control, and the bill’s limits on advertising and other expenditures. The committee substitute was adopted and the bill passed on a roll call vote. The committee then considered House Concurrent Resolution 22, as substituted, which expressed support for exploring nuclear energy and included language noting Kentucky’s ability to use nuclear waste, uranium tailings, and spent fuel in ways described by the sponsor as cleaner. Supporters said Kentucky faces an energy shortage and that nuclear, including small modular reactors, should be part of the state’s future energy mix. Some members said they would support the resolution but wanted a feasibility study or noted that it does not carry the force of law. The resolution passed. Finally, the committee began House Bill 519, sponsored by Representative Fugate, which would prevent utility companies from passing demolition costs for retired coal-fired or fossil-fuel plants on to ratepayers. The sponsor cited sharply rising electricity bills in eastern Kentucky, the decline in coal employment, and the burden of demolition costs from the Big Sandy plant being placed on customers. He argued that utilities should absorb those costs rather than shifting them to ratepayers. The bill was introduced with a motion and second, and the committee was preparing to hear further questions and testimony when the transcript ended.

Transcript Highlights:

• Their safe operating capacity is 112 with the current footprint of their living units in operation.
• Echo Glen has operated closer to their safe operating capacity, which is good.
• costs, there is sort of an increase.
• programs and campus operating budgets.
• costs.

Committee: House Appropriations

Summary: The House Appropriations Committee held a work session covering juvenile rehabilitation system capacity, behavioral health capacity, federal funding changes, and a 2026 budget overview. DCYF officials said the juvenile rehabilitation population is older, includes more adult-sentenced youth and post-25 residents, and is projected to keep growing, creating crowding at Green Hill School and placement limits across the system. They described safe operating capacity concerns, staffing turnover, mental health acuity, and the need for additional medium-security and specialized mental health beds, including a proposed Parkland facility and continued development of Harbor Heights. Committee members were told to follow up separately with questions, and the presentation moved on due to time. Behavioral health officials from DSHS and HCA then reviewed forensic and civil capacity. DSHS described expanding state hospital and civil treatment capacity through Olympic Heritage, Maple Lane, Brockman Campus, and a new 350-bed forensic hospital at Western State, while noting ongoing construction, staffing, and funding issues. HCA outlined its strategy to move long-term civil commitment care into community settings through contracted long-term civil commitment beds, intensive behavioral health treatment facilities, PACT teams, and intensive residential treatment teams. Members asked about out-of-state placements, Medicaid funding, and the differences among facility types; officials said the goal is to right-size inpatient capacity while expanding community-based supports. OFM then presented an update on federal funding and the effects of H.R. 1 and H.R. 5371. Agency staff said H.R. 1 would tighten SNAP work requirements, reduce exemptions, shift some lawful immigrants to state-funded food assistance, increase state administrative and benefit costs, and affect Medicaid eligibility, redeterminations, cost sharing, and state-directed payments. HCA estimated major Medicaid caseload reductions and significant future fiscal impacts, while OFM also noted marketplace subsidy changes and higher education and K-12 downstream effects. H.R. 5371 was described as a short-term federal funding extension through January 30, 2026, with some full-year appropriations and a change affecting hemp producers. Finally, Mary Monroe gave a 2026 supplemental budget preview, citing declining NGFO revenue forecasts, reversions, vetoes, and the added uncertainty from H.R. 1, with the projected ending fund balance moving from positive amounts to a negative outlook over the four-year period.

Transcript Highlights:

• Amendment 8 added cost to our contract. Amendment 9 was a zero-cost amendment.
• The EDW vendor is currently operational.
• Certain aspects of the Unified Operations Center are operational in the provider services module.
• The costs here on the budget include the non-recurring licensing costs, and the recurring piece in the
• The costs here on the budget include the non-recurring licensing costs, and the recurring piece in the

Summary: The subcommittee heard updates on several major technology modernization efforts, beginning with the Department of Financial Services’ Florida PALM project, which is replacing the state’s decades-old FLAIR accounting system. DFS described PALM as a statewide effort affecting all three branches of government, with cash management already live and the remaining financial management, payroll, and data warehouse components still in development. Officials said the project began in 2014, was restructured after a 2022 legislative pause, and is now being recommended for a go-live delay from January 2026 to July 2026. Members asked about governance, staffing, contract structure, cost growth, and maintenance costs; DFS said the contract is deliverable-based, the current amendment would add a net $2.2 million, and post-go-live maintenance is expected to be about $13 million annually under the current contract through July 2027. The Agency for Health Care Administration then updated the committee on the FX Medicaid enterprise modernization program. AHCA explained that federal CMS directed states to move from monolithic Medicaid systems to a modular approach, leading Florida to procure separate vendors for integration services, data warehouse, unified operations, provider services, and claims processing, with pharmacy benefits still to be procured. Officials said the project has spent about $334 million to date, with most costs federally matched, and requested $189.95 million for the upcoming year. They also highlighted a 2024 special assessment that produced 81 recommendations, most tied to staffing shortages, and said the Legislature added 47 FTEs, with 17 currently filled or being filled. Members asked about governance changes, production status, data access, and future technology maintenance; AHCA said some components are operational, the data warehouse is nearing certification, and the agency is working to keep the system adaptable and nonproprietary. The Department of Children and Families presented its Access modernization project, which is replacing a mainframe-based eligibility system used for SNAP, TANF, Medicaid assistance, and related programs. DCF said the six-year, $205 million project is in its third year and has already delivered a new customer portal with mobile access, multi-factor authentication, and fraud protections, while also building a worker portal, document management, community partner tools, and workload management functions. The agency said it is requesting $36.625 million for the next fiscal year, the same as last year, and emphasized that the project has remained on schedule and on budget by breaking work into smaller modules and using strong vendor and staff support. Members praised the project’s progress and asked about cybersecurity testing and the long delay before modernization began; DCF said security requirements were built in from the outset and that the remaining work will focus on moving staff off the legacy mainframe and modernizing notices and back-end processes.

Transcript Highlights:

• They will operate as if they're operating today, as long as they meet the spacing requirements in the
• There has been zero negative impact on freight operations or the passenger operations that utilize freight
• So what is the cost? Because this winds up being a cost-benefit.
• It's a process of the operation that they have.
• The costs are iffy, but this, you know, this committee doesn't really take jurisdiction over costs per

Summary: The committee first heard SB 220, which would require Los Angeles Metro to submit an expedited governance reform report to the Legislature in light of Measure G and the upcoming creation of a countywide elected executive. Senator Allen said the bill was intended to prompt a locally driven discussion about how Metro’s board should reflect the new county structure, not to prescribe a specific governance plan. Metro and the City of Los Angeles opposed the bill, arguing that local task forces and an ad hoc Metro committee were already studying the issue and that the bill was premature and unnecessary. Several committee members echoed local-control concerns, while others supported keeping the bill alive as a vehicle for further discussion. The bill was moved on a do-pass motion to Appropriations and ultimately recorded at 7-2, with the measure held on call for absent members. The committee then heard SB 667, the California Railway Safety Act, which would require freight railroads to install wayside detector systems at specified intervals, with different treatment for short-line railroads, and would require railroad response plans to be submitted to the CPUC. The author and labor supporters argued the bill would help prevent derailments like the East Palestine disaster by detecting overheated bearings earlier and improving crew notification and inspection protocols. Railroads and business groups opposed the bill, saying the spacing mandate and related requirements would be costly, could slow freight and passenger operations in shared corridors, and might discourage investment in short-line infrastructure. After extensive discussion about safety, preemption, costs, and passenger rail impacts, the committee passed the bill to Appropriations on a 7-2 vote, with the measure also held on call. Finally, the committee took up ACR 71, which designates a portion of State Route 101 in Santa Clara County as the Little Saigon Freeway. The author and numerous supporters described the designation as a recognition of San Jose’s Vietnamese American community, its refugee history, and the cultural and commercial importance of Little Saigon. There was no opposition testimony. Members spoke in support, including comments about the connection between the San Jose and Orange County Vietnamese communities. The resolution was adopted and sent to Appropriations on a unanimous roll call among those present, with 10 votes recorded before the chair returned.

Transcript Highlights:

• The California Cost of Living Tax Credit helps Californians cope with the state's persistently high cost
• Energy costs are also rising rapidly.
• , energy costs, and insurance costs.
• in which we operate.
• But I'm also looking at the increased costs of benefits.

Committee: Senate Revenue and Taxation

Transcript Highlights:

• You recognize that families are carrying the cost.
• to the public cost of doing nothing, HAP 4 specifically is highly cost effective.
• know, the prison costs from 20 years later.
• the prison costs from 20 years later like it's not really meaningful as a cost-benefit analysis in that
• So it's an unbearable cost to our members.

Summary: The Senate Budget and Fiscal Review Subcommittee 4 met to hear an information-only agenda focused on homelessness. The chair and vice chair opened with remarks about affordability, accountability, and the need for flexible but effective state responses. The committee then heard an update from Dr. Ryan Finnegan of UC Berkeley’s Turner Center on homelessness trends, data limitations, and program impacts. He said homelessness remains high, with 2024 point-in-time counts showing about 187,000 people experiencing homelessness statewide, though unsheltered homelessness has declined somewhat as shelter capacity expanded. He emphasized that California’s high housing costs and shortage of affordable housing are the main drivers, while also noting persistent racial disparities, high chronic homelessness, and the importance of coordinated housing, health, and social services. He also warned that cuts or changes to federal programs and state funding streams like HAP could threaten progress. Members questioned Dr. Finnegan about the 9% decline in unsheltered homelessness, the timing and methodology of point-in-time counts, how to interpret trends over time, and the role of policy changes such as Housing First, Proposition 47, and Martin v. Boise. He explained that the 9% figure came from 30 continuums of care that had completed 2025 counts, and that HUD’s eventual statewide number would likely differ because not all regions counted that year. He also discussed how different funding sources are layered in local programs, including HAP, local funds, philanthropic support, federal funds, and CalAIM reimbursements. Several members stressed the need for clearer, more comparable measures of effectiveness and outcomes, including whether programs reduce long-term homelessness and move people toward self-sufficiency. The committee then heard from the California Interagency Council on Homelessness on statewide data systems, especially the Homeless Data Integration System (HDIS). Staff described HDIS as the first state-level integrated homelessness data system, built from local HMIS data and used to track demographics, services, outcomes, and program performance across all 44 continuums of care. They said HDIS has enabled statewide dashboards, system performance measures, and new accountability tools under AB 977 and AB 799. Cal ICH also said HAP Round 4 was highly cost-effective under the State Auditor’s methodology, estimating a cost of about $9,172 per person permanently housed, and that new AB 799 dashboards are intended to provide clearer public reporting on outcomes, fiscal data, and progress toward statewide goals. Members asked about measuring self-sufficiency, identifying the best local partners, detecting fraud, and whether the new dashboards will allow better comparisons among program types and funding uses. No votes were taken, and the one scheduled vote was postponed.

Transcript Highlights:

• You just heard Representative Spillsbury talk about the cost to operate this, and I seem to recall that
• Is that cost taken into consideration? Is that a cost of the business? I don't believe it is.
• Is that cost taken into consideration? Is that a cost of the business? I don't believe it is.
• Is that cost taken into consideration? Is that a cost of the business? I don't believe it is.
• </c> operators that are already operating operators that are already operating that<05:04:38.320><c>

Summary: The committee held a public hearing on HB 135, introduced by Representative Michael Harrington. He said the bill would codify a portion of the New Hampshire Constitution to bar New Hampshire businesses from being required to collect sales or use taxes for other states unless Congress mandates it, arguing that the U.S. Supreme Court’s Wayfair decision created an onerous compliance burden for businesses. He described the patchwork of state and local sales tax rules, thresholds, and product exemptions as extremely complex and said the bill was intended to push the issue back toward Congress and the courts. Members questioned whether the bill’s reference to a “foreign government” would apply to other U.S. states, whether the proposal would conflict with the Supremacy Clause, and whether it would create standing for businesses to challenge Wayfair. Harrington responded that “foreign government” meant any government other than New Hampshire, that he believed the state could challenge the decision in court by passing a law contrary to Wayfair, and that businesses were already being harmed by compliance costs. Some members raised concerns about whether the bill was an unfunded mandate or simply a private compliance burden, and Harrington argued that the state itself would not be collecting the taxes, but businesses would still face recordkeeping and administrative costs. Sam Garland of the Department of Justice then testified. He said the department was not taking a formal position on the bill, but offered technical comments. Garland acknowledged that Wayfair created significant compliance burdens and noted that states have become somewhat more uniform, with all states now having a $100,000 economic nexus threshold, though not all use the 200-transaction threshold and local tax variation remains substantial. He said the department’s concerns were legal, describing the issue as uncharted constitutional territory involving both vertical and horizontal federalism. No vote or final action was taken during the hearing.

Transcript Highlights:

• And this is to accommodate just general increases in operating costs. Thank you.
• And this is to accommodate just general increases in operating costs. Thank you.
• </c> general increases in operating general increases in operating costs.<00:42:58.079><c> Thank</c><
• And again, uh, here costs. Thank you.
• We make a lot more money than we cost.

Bills: HF1151 , HF1239 , HF1240 , HF2020 , HF2514 , HF2515 , HF2451

Committee: House State Government Finance and Policy

Keywords: Compensation Council, salaries, state officials, judicial compensation, legislative process, public funds, misuse, law enforcement, accountability, state government, legislative auditor, compliance, transparency, retirement benefits, health insurance, dependents, state employees, Medicare, legislative studies, government oversight