Transcript Highlights:

• </c> calculated with reference to adjusted calculated with reference to adjusted taxable<00:34:16.720
• </c> included in the calculation of adjusted included in the calculation of adjusted taxable<00:34:37.440
• </c><00:34:53.919><c> taxable</c> to the calculation of adjusted taxable to the calculation of adjusted
• This creates a higher adjusted eBTI duh.
• </c><01:27:30.480><c> that</c> because I know there was a claim that because I know there was a claim

Bills: HF3127, HF3816, HF3814, HF3815, HF3817

Keywords: taxation, pass-through entity, qualifying owner, partnership, S corporation, tax return, corporate franchise tax, individual income tax, research expenditures, federal compliance, Minnesota Statutes, income tax, corporate tax, section 179, federal conformity, HF3815, Minnesota taxes, tax conformity, Internal Revenue Code, IRC conformity

Transcript Highlights:

• Claimed by these HDFC-awarded projects by November of each year, if they haven't been claimed by November
• The annual fee adjustments proposed will not be automatic.
• The annual fee adjustments proposed will not be automatic.
• That gets adjusted, right, to actuals over time.
• We're going to analyze those, right, and adjust accordingly.

Summary: The subcommittee heard an extensive presentation on the administration’s housing reorganization proposal, which would centralize multifamily affordable housing finance under the new Housing Development and Finance Committee (HDFC) and align it with the Governor’s trailer bill language. Administration officials said the plan is intended to create a one-stop application and award process, reduce duplicative timelines and costs, and pair state subsidy with private activity bonds and federal tax credits more efficiently. They also described proposed changes to the Affordable Housing and Sustainable Communities program, including shifting a larger share of funding toward housing-related awards while preserving a portion for sustainable communities investments. The Legislative Analyst’s Office generally supported the streamlining concept but recommended changes to the proposed bond set-aside timing and urged flexibility for integrated applications and future reporting on demand. Senators, especially Senator Cabaldon, raised concerns that the proposal could weaken the original climate-and-transportation purpose of the sustainable communities program and that the reorganization would be undercut by the lack of new housing production funding in the budget. The item was held open without a vote. The committee then received a report from the California Debt Limit Allocation Committee and the California Tax Credit Allocation Committee on federal and state housing tax credits. Staff explained that the federal H.R. 1 change lowering the bond-financing threshold from 50% to 25% greatly expanded the number of projects able to use the 4% federal tax credit, allowing California to fund many more projects and units. They also described the state low-income housing tax credit as an important gap-filling tool for projects that still need additional subsidy, and noted existing set-asides for rural, homeless, at-risk, and extremely low-income projects. Members discussed rehabilitation as well as new construction, and the item was informational only. Finally, the Civil Rights Department reported on the effects of federal civil rights policy changes and on three programs facing expiration: California vs. Hate, the Community Conflict Resolution Unit, and Investigations and Conciliation Enhancement. Director Kevin Kish said federal cuts and policy shifts have reduced support for fair housing and other civil rights functions, while CRD’s caseload has grown from about 8,700 open matters a year ago to more than 12,000, with a six-month wait for interviews despite overtime triage efforts. Senators expressed strong support for continuing the programs and concern about the broader federal rollback of civil rights enforcement. The department said it is using overtime, intake triage, and outreach partnerships to manage the workload and direct Californians to appropriate state, local, and nonprofit resources.

Transcript Highlights:

• 00:15:18.639><c> all</c><00:15:18.800><c> of</c> process claims, do underwriting, all of process claims
• There are your claims costs, your reserves for known claims, reserves for unknown claims, and then anything
• existing claims.
• There are your claims costs, your reserves for known claims, reserves for unknown claims, and then anything
• existing claims.

Keywords: 1189, house, all

Summary: The subcommittee took up the pooled risk management program bill and reviewed a new amendment drafted with input from the Insurance Department and Legislative Services. Department witnesses explained that the proposal would move oversight of pooled risk management programs from the Secretary of State’s office to the Insurance Department, add a licensure requirement, preserve the programs’ non-insurer status, and exempt them from third-party administrator licensure. They also described a series of solvency tools in the draft, including financial reporting, risk-based capital standards, minimum capitalization, investment limits, commissioner examination and enforcement authority, rulemaking authority, merger and affiliate-transaction review, confidentiality protections, and a separability clause. A major theme of the discussion was that pooled risk management programs differ from commercial insurers because the risk remains with the member local governments rather than being backed by a state guarantee fund. Witnesses said the bill is designed to emphasize solvency over return of premium and to give the Insurance Department a regulatory “toolbox” to prevent insolvency, including a proposed $5 million excess or stop-loss coverage benchmark, optional accessible policies, and a requirement that boards vote on dividends or premium returns when capital exceeds 600% of risk-based capital. Members questioned how this approach differed from the original Secretary of State bill and whether assessments on towns would still be possible; the department responded that the new framework would allow more flexible oversight and alternatives to immediate court action. The committee also discussed why the statute should continue to say the programs are not insurers, with the department explaining that this preserves their autonomy and avoids applying unrelated insurance laws and premium taxes. Members asked about the department’s workload and were told the department believed it could absorb the new duties without additional funding. No vote or final committee action was taken in the portion provided.

Transcript Highlights:

• </c><00:40:50.160><c> for</c> allowed us to uh take in uh claims for allowed us to uh take in uh claims
• </c> the amount being claimed for a service. the amount being claimed for a service.
• who have to process the claim.
• </c><01:03:26.559><c> It's</c> reimbursement claim to the DOE. It's reimbursement claim to the DOE.
• </c> both at the people who submit the claim both at the people who submit the claim and<01:03:32.720

Keywords: 1189, house, all

Transcript Highlights:

• On line 94 was a technology adjustment.
• So the new ones are in that center column. adjustment to the RDA that was in the adjustment to the RDA
• Mueller for those adjustments. Mr.
• </c> for those adjustments. for those adjustments. Um,<00:19:30.559><c> Mr.
• </c><01:05:10.319><c> that</c> the Biodiesel Industry, claims that the Biodiesel Industry, claims that

Keywords: 1187, senate, all

Transcript Highlights:

• uh when they there are competing claims uh when they put<00:03:56.599><c> a</c><00:03:56.760><c> bid
• They have to make a claim to the sheriff’s office to say, hey, I’m entitled to some of this surplus,
• a process for the sheriff to initiate a court proceeding. claim so they have to make a claim to claim
• This is the first adjustment to these fees in 22 years, and it's...
• </c> heard this amount has not been adjusted heard this amount has not been adjusted in<00:43:38.920>

Bills: HF1027, HF101, HF1021

Keywords: mortgage foreclosure, redemption, foreclosure surplus, sheriff's sale, junior lienholder, mortgagor, homeowner protections, loss mitigation, dual tracking, foreclosure redemption period, certificate of redemption, certificate of sale, sheriff, county recorder, registrar of titles, homeownership center, lien priority, real property, foreclosure by advertisement, surplus funds

Transcript Highlights:

• The fifth is better claims management transparency.
• c> improve</c><00:27:34.480><c> claims</c><00:27:34.880><c> management</c> litigation can improve claims
• </c> encouraging the uh the market to adjust encouraging the uh the market to adjust and<00:40:06.640
• </c> consumer who has a pending legal claim consumer who has a pending legal claim in<00:46:48.440><c
• </c><00:50:57.599><c> so</c> where the consumer drops the claim so where the consumer drops the claim

Keywords: 928, house, all

Summary: The committee heard testimony on HB 733-FN, a bill concerning third-party litigation financing (TPLF). Representative Cole, the prime sponsor, described TPLF as outside investors funding lawsuits in which they have no personal stake, arguing that the practice is largely unregulated, can involve foreign entities, increases litigation abuse, and contributes to higher insurance and consumer costs. He said the bill is modeled on an NCOIL proposal and would require disclosure of TPLF agreements, with guardrails and reporting requirements on specified pages of the bill. He also noted a couple of drafting fixes, including adding the word “knowingly” and incorporating a missing section later. Members raised questions about the bill’s foreign-entity language, especially the provision allowing a governor or the Department of Safety to designate a country as a threat to critical infrastructure. Representative Cole said he would have lawyers review that issue. Another member asked whether the bill would prohibit a party from obtaining outside funding for a lawsuit; Cole clarified that the bill is intended as a reporting measure, not a ban, and that disclosure would be required. He also said the bill is aimed at American citizens rather than foreign-backed financing, and that some states had considered caps on such arrangements, though this bill does not. Brandon Gratz of the Attorney General’s office testified that the enforcement language appears too limited, because it would allow only civil penalties and not broader Consumer Protection Act remedies such as injunctions or restitution. He suggested the Attorney General may not have meaningful authority under the bill as written and raised possible insurance-law issues. Commissioner D.J. Benton-Court of the Insurance Department said the disclosure could help insurers better assess risk and potentially soften the hard insurance market by improving transparency, competition, underwriting, innovation, and claims management. He also said the bill likely needs further work on jurisdiction and enforcement, and that the committee may need to coordinate with the Attorney General, Insurance Department, and possibly banking regulators. No vote was taken in the portion provided.

Transcript Highlights:

• We did not get any operational adjustment money.
• </c> get it but um operational adjustments get it but um operational adjustments were<00:33:58.080><c
• </c> did not get any operational adjustment did not get any operational adjustment money.<00:34:07.919
• people with smaller claims tend not to<00:59:24.960><c> have</c><00:59:25.200><c> counsel.
• </c> data practices act they're um claiming data practices act they're um claiming for<01:24:36.800><

Bills: HF3874, HF3875, HF3378

Keywords: judicial funding, Chief Justice security, fiscal year 2028, court system, judicial branch, judiciary, court notices, restitution, child protection, publication process, human services, Optum reports, data privacy, transparency, legislative oversight, 1183, house

Transcript Highlights:

• </c> but the highest was among those claims but the highest was among those claims that<00:17:52.240>
• And then the claims are reviewed by DHS staff to determine if those flags result in the claim not being
• </c><00:32:34.880><c> that</c> you're looking in depth on claims that you're looking in depth on claims
• </c><00:32:59.760><c> for</c> seeing in terms of volume of claims for seeing in terms of volume of claims
• </c> covered between 94 and 99% of BHP claims covered between 94 and 99% of BHP claims with<00:48:49.520

Keywords: 1187, senate, all

Transcript Highlights:

• </c><00:43:00.640><c> those</c> other counties so they can adjust those other counties so they can adjust
• </c><01:10:13.280><c> of</c> they will account for the claims of they will account for the claims of
• claim claim um<01:42:22.719><c> that</c><01:42:23.199><c> depends</c><01:42:23.520><c> on</c><01:42:
• It’s a different type of claim that we’re dealing with in our courts. Okay, thank you.
• It’s a different type of claim that we’re dealing with in our courts. Okay, thank you.

Keywords: 910, house, all

Summary: The Committee on Housing held a public hearing on January 31 and heard testimony on a series of housing and building-code bills. The first major item, HB 1 relating to building codes, drew sharply divided testimony. Supporters, including BIA Hawaii, Grassroot Institute, Dr. Horton, and several builders and trade groups, argued the current code-adoption process is slow, fragmented, and costly, and that reform would help housing production. Opponents, including Sierra Club Hawaii, AIA Hawaii, ICC, and labor representative Kiko Bosi, said the bill would weaken public safety, reduce statewide consistency, and could leave tenants and first responders at greater risk. No vote was taken during the hearing, and members asked questions about the effect of a governor’s emergency proclamation suspending the Building Code Council and about county authority over code amendments. The committee then heard HB 745 and HB 1321, both also relating to building codes. Grassroot Institute supported both measures, saying the system is broken and needs streamlining, while BIA Hawaii and others emphasized the cost burden of repeated code updates. Opponents, especially Bosi and ICC, argued that the bills would undermine the State Building Code Council’s role, create confusion, and prioritize cost over safety; Bosi also said labor should be included in any code discussions. Members questioned whether counties can remove state code provisions and whether the state code already supersedes county codes, and one member noted the need for clarity and consistent enforcement rather than a wholesale overhaul. Later, the committee heard HB 284 on housing, HB 761 on county permitting and inspection, and HB 738 on historic preservation. HB 284 drew support from several housing and real estate groups, while DLNR opposed it. On HB 761, HHFDC supported the bill, DLNR warned that the proposed changes could jeopardize Hawaii’s participation in the National Flood Insurance Program, DAGS said it would likely need to duplicate county permitting staff, and the Department of Planning and Permitting opposed it; Grassroot Institute and NAIOP supported it. For HB 738, HHFDC, DLNR, Grassroot Institute, Hawaii YIMBY, NAIOP, and others supported the measure, with Grassroot and NAIOP suggesting clarifications so expedited review would also cover mixed-use projects and better define the scope of work. The transcript does not show any final votes or committee action on these bills during the hearing.

Transcript Highlights:

• It also adjusts how prior convictions are treated for enhanced sentencing purposes while continuing to
• Department of Labor statistics currently say that there's about 30,000 unemployment claims and there's
• To that end, we're wanting to try to do some things to make sure that when we're paying these claims
• So we have the data of the fraud, so what we're doing here is adjusting our system.
• Some said it was just the policy adjustment, perhaps Senate Bill 216.

Bills: S0124, S0216, S0382, S0488, S0490, S0524, S0584, S0656, S0816, S0892, S1156

Keywords: Florida Virtual School, FLVS, virtual school, online education, distance learning, K-12 education, public school choice, charter-like franchise, student enrollment priorities, home education, homeschool, military families, active duty military, rural schools, inner-city schools, accelerated graduation, education technology, supplemental funding, direct-support organization, foundation

Summary: The Committee on Fiscal Policy met and first postponed SB 524 and SB 1156. It then heard and favorably reported several bills, including SB 488 and SB 490 by Sen. Massullo, which update Department of Highway Safety and Motor Vehicles procedures, raise the crash-reporting threshold, expand email use, and create a related public-records exemption. The committee also favorably reported SB 892 by Sen. Martin on enhanced sentencing for repeat offenders, SB 124 by Sen. Rodriguez updating Florida Virtual School statutes, and SB 584 by Sen. Yarbrough strengthening oversight of commercial driving schools and tax collector authority. SB 656 by Sen. Bradley, codifying the Internet Crimes Against Children Task Force and related grant program, and SB 816 by Sen. Bradley, formally establishing the University of Florida Diabetes Institute, also passed unanimously or near-unanimously. The most extensive debate centered on SB 216 by Sen. McLean, which would tighten unemployment assistance eligibility by adding job-search requirements, more frequent verification, and fraud-reporting measures. Supporters argued the bill would reduce fraud and improve program integrity, while opponents from labor groups and several senators warned it would burden claimants, especially rural residents, seniors, and workers facing layoffs, and could sharply reduce access to benefits. Despite those objections, the committee reported the bill favorably on a divided vote. The committee also considered CS/SB 382 by Sen. Truenow on electric bicycles, requiring riders to yield to pedestrians, sound an audible signal before passing, and limit speed near pedestrians, while creating a task force to study broader regulation of e-bikes and related devices. A mother whose son was killed on an electric scooter urged the committee to restore scooters to the bill, and several members expressed support for further work on that issue. The committee reported the bill favorably. At the end of the meeting, members recorded additional affirmative votes on selected tabs, and the committee adjourned.

Transcript Highlights:

• . >> Senate Bill 172, an act relating to utility fuel adjustment.
• Senate Bill 172. >> Senate Bill 172, an act relating to utility fuel adjustment.
• </c> spikes of the fuel adjustment spikes of the fuel adjustment searchcharge<00:10:55.360><c> that</
• utility has to expend additional money, they are entitled to recover that money through a fuel adjustment
• </c><00:24:15.840><c> when</c> have the ability to pay the claims when have the ability to pay the claims

Keywords: 958, all

Transcript Highlights:

• </c><02:19:46.160><c> targeted</c> adjusted Grant a total adjusted targeted adjusted Grant a total adjusted
• </c> additional targeted Aid and the adjusted additional targeted Aid and the adjusted total<02:27:04.040
• </c><02:39:50.319><c> I'm</c> insufficient to F meet the claims I'm insufficient to F meet the claims
• </c> where there's an a surprise of uh claims where there's an a surprise of uh claims that<02:43:47.279
• But to simply claim it's a welfare program is absurd.

Keywords: 928, house, all

Summary: The executive session focused primarily on HB 563, which revises the school funding formula, especially the adequate education grant amounts for special education students and the treatment of fiscal capacity disparity aid. Representative Ladd moved OTPA on Amendment 06508, explaining that FY 26 would largely hold the current formula steady, while FY 27 would increase several per-pupil amounts, including base cost, free and reduced-price meals, English language learner aid, and special education differentiated aid. He said the special education change was based on estimated case loads across disability categories and that the amendment also reinstates fiscal capacity disparity aid, using a formula intended to better assist property-poor communities. Several members supported the amendment as a step in the right direction, saying it better recognizes special education costs and separates property wealth from low-income student counts. Others raised concerns about the lack of time and the absence of a printed spreadsheet showing how the fiscal capacity disparity aid would affect each town. In response, sponsors said the spreadsheet existed, that the LBA had copies, and that the amendment would help about 40 target towns, while Manchester would be the main community receiving less under the new formula because of prior shifts in the extraordinary needs grant. Discussion also covered the broader impact of the bill, with members noting that about 200 of the state’s 245 cities and towns would see an increase and 45 a decrease under the proposed FY 27 changes. Supporters argued the bill was a compromise given limited revenues and that it should move forward so it can be considered by the full House and then Finance. No final vote on the amendment or bill was taken in the portion provided, and the chair indicated the committee was still deciding whether it had enough information to proceed.

Transcript Highlights:

• Line 261 is an operating adjustment for the Board of Animal Health.
• </c><00:20:09.039><c> for</c><00:20:09.360><c> the</c> operating adjustment for the operating adjustment
• There's $599,000, which is the department's request for their operating adjustment.
• </c> request for their operating adjustment. request for their operating adjustment.
• </c> print out from prior to the adjustments print out from prior to the adjustments that<01:27:24.639

Bills: HF2446, HF2563, HF2444

Keywords: agriculture finance, broadband development, Department of Agriculture, Board of Animal Health, Agricultural Utilization Research Institute, Office of Broadband Development, food safety, food handler license, cottage food, home processed food, livestock dealer, meat packing company, milk marketer, milk marketing license, grain buyer, grain storage, beginning farmer, emerging farmer, farm down payment assistance, livestock investment grant

Transcript Highlights:

• To provide some definition, in claims with managed care organizations, many times claims are denied upon
• a process called extrapolation, which takes a sample of those claims, evaluates our... ...of those claims
• of claims.
• It allows students to perform adjustments and manipulations on the patient.
• They can't say, oh, you need an adjustment. I'm going to do this.

Keywords: 974, senate, all

Summary: The Senate Committee on Health and Welfare met on May 13 with a quorum present and approved the prior meeting minutes. The committee first heard HB 971, which would equalize Medicaid reimbursement rates between independent clinics and hospital-owned rural health clinics; supporters said independent clinics are disadvantaged by a large payment disparity, and the bill was reported favorable without objection. The committee also recognized visiting Alpha Phi Alpha members and other guests during personal privilege remarks. Members then considered HB 414, which would bar hiring certain health care workers and direct support professionals with serious disqualifying convictions from other states and address background-check issues for therapeutic group homes. After adopting three amendment sets, the bill was reported as amended. HB 740, creating an independent review process for Medicaid behavioral health claim disputes in the coordinated system of care, was amended to clarify applicability and CSOC definitions and then reported as amended. HB 288, which would place the term “miscarriage” alongside “spontaneous abortion” in medical documentation, drew emotional testimony from affected parents and advocates; the committee reported it favorable. The committee also advanced several more bills: HB 405, updating the name of the national acupuncture certifying body, was reported favorable; HB 786, prohibiting extrapolation in certain managed-care claims recoupments, was reported favorable; HB 1095, allowing alternative backup power sources for nursing homes, was reported favorable; HB 403, raising the cottage food gross-sales cap, was amended from $50,000 to $150,000 and then reported favorable; HB 930, modernizing cosmetic-product regulation and creating a small-producer exemption, was reported favorable; HB 557, defining long-term pharmacies for policy purposes, was reported favorable; HB 779, on expedited partner therapy for sexually transmitted diseases, was reported favorable; HB 915, setting utilization-management timelines and standards, was reported favorable; HB 546, expanding criteria for peace officers to take someone into protective custody during a mental health crisis, was reported favorable; HB 796, creating a chiropractic preceptorship program, was reported favorable; and HB 933, authorizing commemorative birth certificates, was reported favorable. The final major item was HB 1041, a “no-mandate” bill barring discrimination based on medical intervention status. The sponsor and Surgeon General said it was aimed at healthy, asymptomatic individuals and not at public health quarantine powers, but Senator Boudreaux objected to exemptions for schools and hospitals and offered an amendment to restore broader coverage. That amendment failed on a roll-call vote, and the bill remained under discussion as the transcript ended, with no final committee disposition shown in the excerpt.

Transcript Highlights:

• </c> offered numerous necessary adjustments offered numerous necessary adjustments to<00:08:54.880><c
• This bill would provide additional time for businesses to adjust their payroll systems, staffing plans
• This bill would provide additional time for businesses to adjust their payroll systems, staffing plans
• This will help identify remaining technical and customer service challenges, allowing for adjustments
• <c> risks</c> adjust adjustments this policy risks adjust adjustments this policy risks creating<00:42

Keywords: 1183, house

Transcript Highlights:

• provision, or it didn't point to the right clean claims provision of the, um, that the Department of
• </c><03:20:01.920><c> provision</c> it pointed to a clean claims provision it pointed to a clean claims
• :04.000><c> clean</c> or it didn't point to the right clean or it didn't point to the right clean claims
• provision of the um that the claims provision of the um that the department<03:20:06.720><c> of</c><
• </c><03:30:49.359><c> as</c><03:30:49.840><c> as</c> whether the rates can be adjusted as as whether

Keywords: 928, house, all

Summary: The committee first took up several liquor-related bills. Senate Bill 24, allowing students under 21 to taste wine in educational settings, drew no opposition or amendment and was reported out 6-0. Senate Bill 79, authorizing self-pour automated systems under the liquor commission, also faced no opposition and was voted ought to pass 6-0. Senate Bill 80, shifting licensing, auditing, and enforcement for wholesale and retail e-cigarette sales to the liquor commission, prompted discussion about whether the change would add cost; members heard that the liquor commission already handles similar enforcement and that the change was meant to address nonreporting. It was voted ought to pass 6-0. The committee then discussed Senate Bill 87, concerning alcohol service in salons, barbershops, and spas. Members and staff focused on how to limit the amount served, whether to require recordkeeping, and privacy concerns about tracking what patrons drank. The discussion settled on removing references to alcohol type and quantity and keeping only patron records, with the understanding that the agency would set the details by rule. The bill was not formally amended at the meeting, but members agreed an amendment would be drafted for the following week; the bill itself was reported ought to pass with that amendment to be determined. Finally, the committee heard testimony on Senate Bill 245, the EMS No Surprises Act and System Stabilization Act. The sponsor, Senator Suprena, said the bill would prohibit balance billing for emergency ambulance calls and unscheduled transfers, while setting reimbursement at either locally set public rates or 325% of Medicare. She explained that the proposal was based on national work on ground ambulance billing and was intended to stabilize struggling EMS providers. Committee members sought clarification that the bill did not eliminate balance billing for non-emergency transfers, and the sponsor confirmed it did not. A second witness, Jerry Stringham, testified in support, citing his reimbursement background.

Transcript Highlights:

• . adjustment. adjustment.
• The regional cost adjustment adjusts all of those model components by 33% higher.
• -</c> what this regional cost adjust- what this regional cost adjust- adjustment<01:27:50.520><c> figures
• </c> adjustment figures. adjustment figures.
• . adjustment. adjustment.

Keywords: 916, all

Transcript Highlights:

• They were able to claim that full jackpot.
• They won, and they come to claim the big prize. And then, yes, Representative.
• You can win to claim the prize, right? You can't, if you're a miner, you can't buy a ticket.
• you can still claim a price That's correct, that's the law today.
• Gerdes' question, can an LLC or an LP or corporation claim a prize? Absolutely. Okay.

Keywords: 1184, house, all

Transcript Highlights:

• State-only claiming adjustments.
• We've made additional adjustments related to our state-only claiming for members with unsatisfactory
• And that could be some benefit that would give the state more time to adjust the fee.
• So even if we sort of adjust uniformity, we still may have to think about that limit too.
• that the state has had to pay costs for these claims.

Summary: The subcommittee heard a lengthy Department of Health Care Services presentation on the governor’s Medi-Cal budget, including a $229.1 billion total-funds proposal, projected Medi-Cal enrollment declines as redeterminations continue, and several major cost drivers such as managed care growth, Medicare-related costs, pharmacy spending, and changes tied to federal policy. Members focused heavily on the elimination of Prop. 56 dental supplemental payments beginning July 1, 2026, questioning the likely impact on provider participation and utilization. DHCS said it is completing the required rate reduction/access analysis for CMS, has been holding stakeholder meetings and issuing provider bulletins, but could not yet quantify the real-world effect. The committee also discussed a $50 million savings proposal tied to new hospice utilization management authority and asked about possible effects on emergency dental care and provider participation. The hearing then moved through the November 2025 family health estimate and several county and program administration issues, including CCS, GHPP, and Every Woman Counts. DHCS said family health costs are rising despite slight caseload declines because of higher utilization and medical costs, and members raised concerns about CCS website accessibility, county administrative funding, and the transition of youth aging out of CCS. The department said most CCS beneficiaries are also on Medi-Cal, that counties have long raised funding concerns, and that it had clarified use of maintenance-and-operations dollars to address some county workload issues. Members also asked about Every Woman Counts potentially seeing higher demand as Medi-Cal changes take effect; DHCS said that is possible and that the program has multiple funding sources including General Fund. A major portion of the hearing focused on provider taxes and federal changes under H.R. 1, especially the Medi-Cal managed care organization tax and the hospital quality assurance fee. DHCS explained that H.R. 1 restricts new or increased health care-related taxes, phases down allowable tax levels over time, and tightens “generally redistributive” rules, which could sharply reduce the state’s ability to use the MCO tax for Medi-Cal financing. Members asked whether the Legislature could amend Prop. 35 or whether voters would need to act; DHCS said a three-fourths legislative amendment may be possible if it aligns with the measure’s purpose, but the department is still evaluating options. The committee also discussed hospital financing, with DHCS describing recent increases in state-directed payments and the effect of H.R. 1 in capping those payments at Medicare levels, and the LAO noting the tradeoff between preserving provider taxes and maintaining Medi-Cal funding. The subcommittee also reviewed a series of DHCS budget change proposals and trailer bill items, including managed care final-rule implementation, managed care operations, a hospital value strategy, a one-year extension of skilled nursing facility financing, long-term care payment transparency, and interoperability/prior authorization requirements. Members repeatedly questioned the use of limited-term versus permanent positions, the overlap among proposals, and the timing of new financing reforms. DHCS said the SNF extension would preserve current workforce standards, sanctions, growth limits, and the SNF quality assurance fee while the department develops a broader 2027-28 redesign. No votes were taken; items were repeatedly held open for later action. Covered California then presented on the expiration of the federal enhanced premium tax credit and the resulting affordability crisis. The agency said Californians will lose about $2.5 billion in premium assistance for 2026, average premiums could nearly double for many enrollees, and as many as 400,000 people could eventually leave marketplace coverage. Open enrollment ended with 1.9 million sign-ups, down 3% from the prior year, with especially steep declines among middle-income consumers and increased movement into bronze plans. Covered California said the state’s $190 million affordability subsidy is helping lower-income enrollees retain coverage, but cannot fully replace the lost federal assistance. Members also asked about the Health Care Affordability Reserve Fund, repayment of loans from that fund, the status of federal review of California’s essential health benefits benchmark, and implementation of the new gender-affirming care benefit under AB 144.