Transcript Highlights:

• The increase in fiscal year 2027-28 reflects the addition of new pharmacy benefit manager data to the
• "Department of Managed Health Care for a budget overview and budget change proposals and trailer bill
• Mary Watanabe, Director of the Department of Managed Health Care.
• Talk about the PBM workload BCP.
• SB 41 builds upon the previously established pharmacy benefit manager...

Summary: The Assembly Budget Subcommittee on Health heard updates on five health-related budget items. First, members reviewed state support for distressed hospitals and health facilities. The California Health Facilities Financing Authority and HCAI described the Distressed Hospital Loan Program as a lifeline for 16 hospitals, many of which remain financially strained and are expected to seek loan forgiveness rather than repayment. Speakers cited reduced contract labor, new service lines, strategic partnerships, and the reopening of Madera Hospital as signs of progress, but also warned that federal policy changes under H.R. 1 will likely increase uncompensated care and pressure emergency departments. Public commenters from hospital, dental, and consumer groups supported additional funding, including a request to refresh the program with another $300 million. The committee then heard HCAI’s update on the California Rural Health Transformation Program, a five-year federal initiative funded at $233.6 million for California. HCAI said the program will focus on rural care models, workforce development, and health technology, with grants to be rolled out on a fast timeline and all funds obligated by October 30, 2026. Members raised concerns about rural provider capacity to apply for grants, and HCAI said it will use a third-party administrator, a technical assistance center, webinars, and other supports to help applicants. HCAI also presented its budget request for the health care payments database, seeking ongoing non-General Fund support to continue operations and expand data, including pharmacy benefit manager data. The Emergency Medical Services Authority presented three budget change proposals: funding to replace disaster medical services fleet vehicles, funding for IT security work, and additional positions for HR, enforcement, and legal workload. A member also raised concern that EMSA has not yet completed the annual ambulance rate reporting required by AB 716, and EMSA said it remains committed to the requirement but lost prior funding through later budget reductions. Covered California reported that it is still finalizing its own budget, but expects a lower operating budget due to efforts to reduce baseline costs and align spending with actual expenditures; it also projected enrollment declines tied to the expiration of enhanced premium tax credits, H.R. 1, and federal rule changes, while noting that revenues may still rise because premiums are expected to increase. Finally, the Department of Managed Health Care outlined budget proposals tied to menopause coverage and education, PBM licensure and enforcement under AB 116 and SB 41, credentialing reforms under AB 1041, and prior authorization reporting under SB 306. Public testimony generally supported the menopause and PBM proposals, while also urging clearer language and attention to Medi-Cal parity. The hearing concluded after public comment, including additional advocacy for sickle cell services and rural health workforce funding.

Transcript Highlights:

• So, I mean, I'm happy to have that discussion with Mayor Blangiardi and perhaps Managing Director Formby
• So, I mean, I'm happy to have that discussion with Mayor Blangiardi and perhaps Managing Director Formby
• So, I mean, I'm happy to have that discussion with Mayor Blangiardi and perhaps Managing Director Formby
• and we can try all the coordination that we want, you know, but at the end of the day, they have workloads
• that they're trying they have workloads that they're trying to<00:10:13.920> process to process

Bills: SB2066

Keywords: permitting, construction, efficiency, state projects, county collaboration, funding, staffing shortages, 912, senate, all

Summary: The joint committees on Energy, Intergovernmental Affairs, and Government Operations heard Senate Bill 2066 on county permitting and inspection. Testimony focused on whether the bill should exempt state projects from county permitting requirements. One testifier opposed the measure, arguing it would bypass established permitting processes, weaken good government, and put the public at risk. A DOE representative said the intent was to speed up state projects, but suggested a different approach: funding county positions dedicated solely to state permits, possibly as a pilot program, rather than removing county review entirely. Committee members discussed the difficulty of moving state projects through county systems, the lack of special treatment, and whether a more systematic or standardized process could be created for repetitive projects. After the discussion, the chairs announced a substantive rewrite of SB 2066. The amended version would delete the county-permitting exemptions for state projects and instead create a cooperative working group to address the intersection of state projects and county permitting needs. The revised measure would also include a blank appropriation for counties to fund personnel to expedite permitting for state projects only. Members clarified that any funded staff would be dedicated solely to state projects. The committee then took votes on the revised measure. The committees adopted the amended bill. The Government Operations Committee recommended the Senate draft one version, and members present voted yes, with Senator Awa excused. The measure was adopted with the revised approach and an effective date set for April 19, 2042.

Transcript Highlights:

• So we now have 14 funds to manage.
• At the time, we had $54 billion that we were managing.
• You're saying it's one half of 1% of the funds that you're managing, but are there also management fees
• Do we have diversity in our managers, the people who are managing the funds as well? Yes, Mr.
• had one manager.

Transcript Highlights:

• “The increase in fiscal year 2027–28 and ongoing reflects the addition of new pharmacy benefit manager
• Department of Managed Health Care for a budget overview and budget change proposals and trailer bill.
• Mary Watanabe, Director of the Department of Managed Health Care.
• And I'll let Dan talk about our PBM proposals, talk about the PBM workload BCP.
• It just seems to me, you know, pharmacy benefit managers, they're supposed to be adding such a great

Keywords: 988, house, all

Transcript Highlights:

• are talking about reductions in library hours, traffic signal maintenance, and cuts to emergency management
• This should be hiring more employees so it can be handled and managed in a better way.
• Every time people hear the word deregulation, they think it is better government and better management
• This action aims to provide municipalities with greater financial flexibility in managing and improving
• Circuit will work together to develop the program, and Hillsborough County Sheriff's Office will manage

Bills: HB 118, HB 388, HB 114, HB 205, HB 2789, HB 2791, HB 499, HB 2960, HB 3163, HB 3135, HB 2427, HB 1618, HB 1672, HB 1722, HB 1338, HB 787, HB 2618, HB 879, HB 1126, HB 4134, HB 3513, HB 718, HB 1536, HB 1445, HB 1640, HB 1893, HB 1734, HB 3229, HB 3306, HB 1276, HB 3272, HB 3276, HB 3516, HB 4145, HB 1585, HB 4810, HB 2989, HB 2558, HB 3014, HB 2742, HB 1695, HB 29, HB 125, HB 145, HB 171, HB 255, HB 50, HB 363, HB 116, HB 491, HB 1495, HB 368, HB 1285, HB 1905, HB 2002, HB 917, HB 2723, HB 2067, HB 1238, HB 745, HB 1188, HB 1606, HB 2003, HB 2147, HB 2355, HB 2546, HB 2495, HB 2818, HB 2249, HB 3228, HB 3240, HB 1507, HB 658, HB 1748, HB 1851, HB 1922, HB 2798, HB 107, HB 1587, HB 3684, HB 118, HB 388, HB 114, HB 205, HB 2789, HB 2791, HB 499, HB 2960, HB 3163, HB 3135, HB 2427, HB 1618, HB 1672, HB 1722, HB 1338, HB 787, HB 2618, HB 879, HB 1126, HB 4134, HB 3513, HB 718, HB 1536, HB 1445, HB 1640, HB 1893, HB 1734, HB 3229, HB 3306, HB 1276, HB 3272, HB 3276, HB 3516, HB 4145, HB 1585, HB 4810, HB 2989, HB 2558, HB 3014, HB 2742, HB 1695, HB 609, HB 630, HB 420, HB 767, HB 1708, HB 1404, HB 2457, HB 140, HB 227, HB 913, HB 2198, HB 2763, HB 1261, HB 1135, HB 1318, HB 2358, HB 2765, HB 2735, HB 3307, HB 1242, HB 2842, HB 333, HB 201, HB 694, HB 2415, HB 155, HB 272, HB 405, HB 519, HB 1136, HB 1275, HB 1437, HB 1532, HB 1675, HB 1868, HB 1888, HB 1990, HB 2286, HB 2523, HB 3129, HB 3251, HB 3354, HB 3479, HB 3803, HB 3804, HB 3805, HB 3806, HB 3887, HB 4163, HB 4238, HB 1240, HB 1842, HB 2029, HB 2622, HB 3255, HB 654, HB 4643, HB 4945, HB 3611, HB 3724, HB 3623, HB 3810, HB 4127, HCR 78, HCR 12, SB 767

Keywords: HB 388, HB388, coordination of benefits, COB questionnaire, health benefit plan, health insurance, insurance commissioner, Texas Department of Insurance, uniform form, primary payer, secondary payer, multiple coverage, dual coverage, Medicaid, CHIP, managed care, HMO, small employer health plan, school district health coverage, self-funded plan

Transcript Highlights:

• relating the notice provided to a Retail electronic customer of a procedure for requesting vegetation management
• members this bill requires utility to provide information on how customers can request vegetation management
• Building the certain rights of the sole managing conservatorship of a child in relation to the child's
• Speaker members this just clears up the confusion about whether or not the sole managing interpreter

Bills: HB 118, HB388, HB 114, HB205, HB2789, HB2791, HB499, HB2960, HB3163, HB3135, HB2427, HB1618, HB1672, HB1722, HB1338, HB787, HB2618, HB879, HB 1126, HB4134, HB3513, HB718, HB1536, HB1445, HB1640, HB1893, HB1734, HB3229, HB3306, HB 1276, HB3272, HB3276, HB3516, HB4145, HB1585, HB4810, HB2989, HB2558, HB3014, HB2742, HB1695, HB29, HB 125, HB145, HB171, HB255, HB50, HB363, HB 116, HB491, HB1495, HB368, HB 1285, HB1905, HB2002, HB917, HB2723, HB2067, HB 1238, HB745, HB 1188, HB1606, HB2003, HB2147, HB2355, HB2546, HB2495, HB2818, HB2249, HB3228, HB3240, HB1507, HB658, HB1748, HB1851, HB1922, HB2798, HB 107, HB1587, HB3684, HB 118, HB388, HB 114, HB205, HB2789, HB2791, HB499, HB2960, HB3163, HB3135, HB2427, HB1618, HB1672, HB1722, HB1338, HB787, HB2618, HB879, HB 1126, HB4134, HB3513, HB718, HB1536, HB1445, HB1640, HB1893, HB1734, HB3229, HB3306, HB 1276, HB3272, HB3276, HB3516, HB4145, HB1585, HB4810, HB2989, HB2558, HB3014, HB2742, HB1695, HB609, HB630, HB420, HB767, HB1708, HB1404, HB2457, HB140, HB227, HB913, HB2198, HB2763, HB 1261, HB 1135, HB1318, HB2358, HB2765, HB2735, HB3307, HB 1242, HB2842, HB333, HB201, HB694, HB2415, HB155, HB272, HB405, HB519, HB 1136, HB 1275, HB1437, HB1532, HB1675, HB1868, HB1888, HB1990, HB2286, HB2523, HB3129, HB3251, HB3354, HB3479, HB3803, HB3804, HB3805, HB3806, HB3887, HB4163, HB4238, HB 1240, HB1842, HB2029, HB2622, HB3255, HB654, HB4643, HB4945, HB3611, HB3724, HB3623, HB3810, HB4127, HCR78, HCR12, SB767

Keywords: HB 388, HB388, coordination of benefits, COB questionnaire, health benefit plan, health insurance, insurance commissioner, Texas Department of Insurance, uniform form, primary payer, secondary payer, multiple coverage, dual coverage, Medicaid, CHIP, managed care, HMO, small employer health plan, school district health coverage, self-funded plan

Transcript Highlights:

• Will this impact the agency’s workload?” “Good morning. And no, ma’am, it will not.
• We see that as an advantage for us to be able to manage our...
• It really depends on how many cases we have per year, the amount of workload that is needed.
• Amount of workload that is needed, it does tend to be difficult to hire OPS attorneys.
• We're going to move to the Department of Management Services.

Summary: The subcommittee met to review agency travel, budget reduction exercises, and member reports from agency meetings. Early discussion focused on the Department of Management Services (DMS), where members questioned the cost of travel for four out-of-state data/cyber staff and the secretary’s absence. DMS defended the hires as highly specialized enterprise cybersecurity and data personnel, said the positions were lawfully paid and posted, and explained that the staff work on statewide data cataloging and cyber risk reduction rather than agency-by-agency systems. Members also raised concerns about fleet inventory discrepancies and requested follow-up information on hiring, travel, and data inventory timelines. The chair said she would consider travel guardrails and possible reductions, and noted that DMS, the Lottery, and the Florida Commission on Human Relations did not meet the requested reduction target, while the Public Employee Relations Commission did not submit reductions. The committee then heard from the Florida Lottery about the secretary’s trip to Paris for the World Lottery Convention. Lottery staff said the trip was reimbursed through the multi-state lottery organization and was intended to share best practices and improve operations, though members questioned the value of the travel and requested reimbursement records and the trip agenda. The subcommittee also reviewed agency reduction exercises from several agencies. The Department of Revenue exceeded its target and was praised for frugality; DFS, the Florida Gaming Control Commission, the Office of Financial Regulation, the Office of Insurance Regulation, the Public Service Commission, the Division of Administrative Hearings, and the Department of Business and Professional Regulation each described how they met or approached their reduction goals, often through vacancies, reversions, or expense cuts. OIR warned that further reductions could hurt insurance regulation capacity, while OFR and PSC said their reductions were based on historical reversions and lower post-COVID travel or vacancy levels. Members then reported back on agency meetings. DMS members raised fleet tracking, real property audits, salary studies, and health plan savings ideas, and asked for follow-up on the Florida PALM project, cybersecurity grants, and state IT modernization. DFS members said the agency was efficient and that its Palm-related work and insurance consumer programs were important. Lottery members emphasized the agency’s revenue generation for education and its low administrative overhead. Gaming Control members highlighted storage costs for seized gaming equipment and suggested technology-based alternatives. PERC members said a union-related law had doubled their workload and asked for more staffing and possible AI assistance. OIR members stressed the need for a Tampa satellite office and more resources to recruit and retain specialized staff. The chair closed by saying the committee would continue reviewing travel, staffing, and reductions with an eye toward taxpayer value and transparency.

Transcript Highlights:

• Um as you with that the the workload.
• though<00:23:35.160> because The workload has not though because The workload has not though
• , >> Collaborative drug therapy management, >> Collaborative drug therapy management,
• take some of the workload take some of the workload away<03:34:54.280> from<03:34:54.560>
• workload within the pharmacy. workload within the pharmacy.

Keywords: 1189, house, all

Transcript Highlights:

• So our, our workload increases as a result of this increased number of licenses.
• So, however, this nursing workforce growth has significantly increased our workload, particularly in
• That's more manageable now. The contracting issue, yes, it does seem to be calming down.
• Um, to manage the workload effectively, additional staffing is necessary in key areas of information
• workloads and responsibilities for the TMB team.

Transcript Highlights:

• the May Revision proposals for the Department of Managed Health Care.
• My name is Grace Gallagher, advocacy manager with Painted Brain.
• My name is Grace Gallagher, advocacy manager with Painted Brain.
• care management.
• So all of our other managed care plans operate generally at the lower bound rate of a managed care rate

Keywords: 988, house, all

Transcript Highlights:

• <01:08:43.719> Systems algorithmic Management Systems algorithmic Management Systems surveillance
• <01:09:21.199> algorithmic algorithmic management algorithmic algorithmic management algorithmic
• implemented that algorithmically manage implemented that algorithmically manage the<01:10:18.400
• AI should not be allowed to manage on their own.
• Thank you for your testimony. not be allowed to manage on their not be allowed to manage on their own

Keywords: 1187, senate, all

Transcript Highlights:

• Improve our financial management and administrative management so We're working with OMEs to make sure
• And then disaster case management.
• That's for the Emergency Management Assistance Compact.
• But also, our staff workload. Ducation To me, it is not leniency.
• It includes project management fees and BI.

Keywords: 914, all

Transcript Highlights:

• is community offender management, and P535, which is the re-entry division.
• The local rule LR 3303, it's the case management order.
• the case management orders in every single case.
• District Office Manager, because it's an at-will position.
• So we're going to try to manage that, but I don't know how we manage it and how we deal with the action

Transcript Highlights:

• We are seeking a manager position for our economic development area.
• How does the State Land Office Measure and monitor workload. Mr.
• With me today, we have our CFO, Philip Gonzalez, and our Benefits Manager, Kayleigh Jones.
• Chair, have you ever thought about hiring a project manager or an engineer? Mr.
• To manage that equity, my raise was two and a half percent. Thank you, Mr. Chair.

Transcript Highlights:

• That legislation imposed several new workload requirements on a variety of departments, including the
• It will allow staff to access approved large language models through a state-managed environment with
• By centralizing the infrastructure, configuration, security, governance, and ongoing model management
• By centralizing the infrastructure, configuration, security, governance, and ongoing model management
• By centralizing the infrastructure, configuration, security, governance, and ongoing model management

Keywords: 987, senate, all

Transcript Highlights:

• elect locally to manage elections. elect locally to manage elections.
• a value and the use in having it managed a value and the use in having it managed centrally.<00:
• There's also the question of workload. There's also the question of workload.
• of managed for all intents and purposes of managing<00:47:16.960> elections<00:47:17.720>
• from<00:47:17.920> the managing elections from the managing elections from the administrative

Keywords: 1187, senate, all

Transcript Highlights:

• And yet we are also a little bit reticent because the workload of educators is so, so darn heavy.
• We have concerns about that as an unfunded mandate and also the amount of workload on the teachers.
• My name is Dominica Chavez, advocacy manager at New Mexico Kids Can.
• Chair, and that is always a concern when we are recruiting and retaining teachers: the workload that
• Chair, about the reporting, the additional reporting requirements, and that effect on the workload.

Bills: SB29, SB37

Keywords: SB29, math requirements for teaching license, teacher licensure, teacher endorsement, mathematics methods, elementary education, secondary education, special education, early childhood education, reciprocity, Public Education Department, Mathematics and Science Education Act, mathematics instructional leadership framework, professional learning plan, K-3 screening, mathematics screening assessment, mathematics difficulty, support plan, multilevel support, intervention

Transcript Highlights:

• So I can't respond to what the relative reduction in workload might look like that would be otherwise
• That's still workload, at least for the first quarter, that's full freight, almost as though we don't
• So that's still our working assumption around the workload that would be associated with the front-end
• Even as a manager, her colleagues made fun of her accent and undermined her for being Korean.
• And so, yes, we have automation, but we also will have workload implications.

Summary: The Assembly Budget Subcommittee on Human Services held an informational hearing focused on the impacts of federal HR1 on CalFresh and Medi-Cal, along with related state mitigation efforts. CDSS, DHCS, DDS, county representatives, LAO, and Finance discussed automatic exemptions, data-sharing between departments, county workload, and the timing of implementation. CDSS said about two-thirds of adults ages 18 to 64 are already known to be exempt in CalFresh, and that administrative data matches could newly exempt about 200,000 of the roughly 955,000 adults potentially at risk. DHCS said Medi-Cal work requirements would begin in 2027 and the department is working to automate exemptions, including for IHSS recipients and some caregivers, while DDS said its population is expected to be covered by auto-exemptions. County welfare directors emphasized that individualized worker contact is critical, that counties need more staffing and stable funding, and that without it they expect delays, higher error rates, and reduced exemption screening capacity. Members pressed for written timelines, county-by-county impact data, and clearer guidance; the administration said it would provide follow-up materials and technical assistance. No votes were taken. The committee then heard a separate discussion on a proposed CFAP expansion or “CFAP Plus” concept to provide state-funded benefits to additional populations affected by HR1, including lawfully present non-citizens and ABODs. CDSS said implementation could not occur before October 1, 2027 because of policy and system-design constraints, and that adding unique eligibility rules would increase complexity and cost. Finance cautioned that any expansion would have General Fund impacts likely in the hundreds of millions to multiple billions. Members asked for cost estimates and technical feedback on trailer bill language, and CDSS said it would review the proposal and respond. The hearing also covered CDSS’s CalFresh strategic plan and mandated reporter training updates. CDSS said it is hiring a strategic plan lead to develop a long-term, data-informed CalFresh plan, and that the revised mandated reporter training is on track for launch in fall/winter 2026, ahead of the July 1, 2027 statutory deadline. The training will include updated content on structural racism, ICWA protections, implicit bias, and the distinction between reporting and supporting families. Members praised the work and asked for continued updates. Later panels focused on Promise Neighborhoods, Stop the Hate, and housing programs. Promise Neighborhood advocates and CDSS described the state’s prior $12 million investment, a positive evaluation showing roughly a 4-to-1 return, and a new proposal to support place-based partnerships and community schools through AB 1969. Stop the Hate grantees and CDSS reported that the program has provided direct services, prevention, and statewide coordination to millions of Californians, and urged reauthorization before funding expires; members asked for best-practice language and discussed focusing future funding on solidarity work, harm reduction, legal services, and education. Finally, CDSS presented on the CalWORKs Housing Support Program and Housing and Disability Advocacy Program, saying proposed General Fund investments of $105 million and $55 million would prevent funding cliffs and allow the programs to continue through 2026-27, while the absence of new funding would force reductions in housing assistance, subsidies, and enrollments.

Transcript Highlights:

• <00:02:31.320> workflow employees regularly to manage workflow employees regularly to manage
• <00:02:51.000> their hardships for them to manage their hardships for them to manage their
• Adding PFML compliance to that workload Adding PFML compliance to that workload is<00:39:46.560>
• engage with an HR firm to help manage engage with an HR firm to help manage this<00:44:53.960>
• maybe think about um how we're managing maybe think about um how we're managing that<01:02:53.840

Keywords: 1183, house

Transcript Highlights:

• going to lag behind workload.
• going to lag behind workload.
• going to lag behind workload.
• going to lag behind workload.
• You can't hire people until workload.

Keywords: 1187, senate, all