Transcript Highlights:

• But because of the regulations and rules in Texas, that D-level operator can.
• There are opportunities for alternative rates. structures.
• The PUC rules provide the formula for utility rate application.
• There are no established rules for such programs.
• So they're able to do that, just come in, and in fact, we changed our rules.

Bills: HB29 , HB685 , HB1633 , HB1689 , HB1690 , HB1918 , HB2010 , HB2500 , HB2608 , HB2626 , HB29

Committee: House Natural Resources

Keywords: water audit, water loss, water loss mitigation plan, municipally owned utility, municipal utility, water conservation, Texas Water Development Board, TCEQ, Texas Commission on Environmental Quality, water leakage, leak detection, billing data accuracy, utility validation, water audit validation, water scarcity, water management, infrastructure, public utility, conservation plan, administrative penalty

Transcript Highlights:

• In addition to that, we have state statute and rule that mirror these federal actions.
• Yes, so that is still a piece of our rule.
• And so we just inspect them for compliance adherence to the rule. That's great.
• Have not previously been attributed to this fund, so this rule is making it come out of this fund?
• We do expect them to know the rule after that training and be able to comply.

Committee: All ALC-OCCUPATIONAL LICENSING REVIEW SUBCOMMITTEE

Summary: The committee first reviewed the Arkansas Division of Environmental Quality’s asbestos abatement program. DEQ explained that it licenses asbestos-related workers and businesses under federal and state law, including contractors, workers, inspectors, planners, designers, consultants, air monitors, and training providers. Members asked about the continued presence of asbestos in modern products, the status of the program’s grant fund, and why program expenses were expected to rise; DEQ said grants have not been issued in more than six years because revenues have not left a surplus, and the higher expenses reflect a reallocation of inspector salaries to the fund that supports the program. DEQ also described complaint-driven inspections, enforcement tools such as civil penalties and notices of violation, and the health risks of exposure, including asbestosis and mesothelioma. The report was accepted without objection. The committee then heard from the Arkansas Commission on Law Enforcement Standards and Training. The commission outlined its standards, compliance, decertification, basic academy, advanced training, and jail standards functions, and said it operates three basic academies in Camden, Benton-Bryant, and Springdale. Members asked about recruitment and retention, academy capacity, training hours, and costs to local agencies; the commission said attendance costs counties nothing because the state funds the academies, and that basic training is being expanded to 705 hours with a greater emphasis on practical instruction. The commission also described separate training for detention officers and school resource officers, and said law enforcement divisions in other agencies, such as the Department of Agriculture, are held to the same standards. It noted that most academy attendance requires agency hiring first, though a veterans-to-law-enforcement program allows some veterans to attend on their own and later seek employment. This report also was accepted without objection.

Transcript Highlights:

• They are organizations trying to follow the rules in a system where rules kept moving.
• rate structures, clearer Better rate structures, clearer documentation<00:08:54.920><c> standards,</
• </c> in a system where rules kept moving. in a system where rules kept moving.
• That is not rules change again.
• </c> preventing irreversible structural preventing irreversible structural decisions<00:10:37.880><c>

Bills: HF1767 , HF2068 , HF4725 , HF4637 , HF4638

Committee: House Human Services Finance and Policy

Transcript Highlights:

• It's just kind of just a structure that get everything and get the, and get the It's just kind of a structure
• It's not saying this is a hard, fast 90-day rule.
• It's not saying this is a hard, fast 90-day rule.
• CMS is not a hard, fast rule. We don't have the authority to do that.
• I'm trying to address the structure of the department because the structure is broken.

Committee: House Health and Welfare

Summary: The committee first heard SB 145, which would require adult residential care providers, especially assisted living centers, to have generators or other backup power arrangements and to submit preparedness plans to LDH. After technical amendments and testimony from the sponsor, LDH, and the assisted living industry clarifying the bill’s scope and cost concerns, the committee adopted the amendments and reported the bill favorably. It then took up SB 433, which would require Medicaid coverage of medically necessary FDA-approved weight loss drugs, including GLP-1 medications, subject to appropriations and fiscally sustainable coverage criteria; the bill was reported favorably after discussion of current Medicaid coverage and costs. The committee also approved SB 52, which requires better coordination between DCFS and LDH so SNAP and Medicaid benefits can follow children more quickly when they are removed from or returned to a home. Technical amendments changed reporting deadlines and required written notice, and the bill was reported favorably. SB 4 on public water fluoridation was amended to allow local governments or voters to opt out through a petition and election process, with support from the Louisiana Dental Association and others after compromise language was adopted; it was reported favorably with amendments. SB 152, which would prohibit the sale of cultured or lab-grown food products for human consumption, was also reported favorably with amendments after brief testimony in support and opposition. The committee next approved SCR 37, which asks the Surgeon General to review Louisiana’s informed consent laws and report back on any gaps, after discussion that the existing medical disclosure panel had not met since 2018. It then considered SB 194, a public assistance bill aligning Louisiana Medicaid and SNAP rules with recent federal changes on non-citizen eligibility and tightening Medicaid’s reasonable opportunity period for citizenship verification. After extensive debate over immigration, emergency care, and whether the bill could harm eligible applicants or rural hospitals, the committee adopted an amendment allowing LDH discretion for emergency health care services and reported the bill favorably by an 8-3 vote. Finally, HCR 113 created a task force to study gestational carrier agreements and assisted reproductive regulation; after debate over surrogacy, ethics, and referral to Civil Law, the committee rejected the referral motion and then reported the resolution favorably, and the meeting moved on to SB 333 on child-in-need-of-care proceedings and legal representation funding.

Transcript Highlights:

• The federal rules that require exemption screening require those screenings to occur at rules that require
• Issue 3: How should a program for this population be structured?
• . the minimum nutrition But have to apply the time limit rules.
• When rules change, impacts are immediate as well as widespread.
• When rules change, impacts are immediate as well as widespread.

Summary: The subcommittee heard an extended briefing on the impacts of H.R. 1 on Medi-Cal and CalFresh, followed by testimony from the Legislative Analyst’s Office and county officials. DHCS described major Medi-Cal changes in H.R. 1, including work/community engagement requirements, six-month redeterminations, reduced federal matching for some emergency services, narrower immigrant eligibility, reduced retroactive coverage, and limits on provider taxes and directed payments. CDSS outlined CalFresh changes, especially the expanded able-bodied adults without dependents time limit, reduced exemptions and waivers, and the new federal-state-county administrative cost split. Both departments emphasized implementation plans, automation, outreach, and county coordination, while acknowledging significant expected coverage losses and administrative burden. The LAO and an independent policy expert discussed how H.R. 1 could increase demand on county indigent care systems and public hospitals as people lose Medi-Cal. They reviewed the history of county indigent care, 1991 realignment, and AB 85, explaining that counties already rely on a patchwork of funding and that current realignment revenues are often used for public health rather than indigent care. They warned that counties may face large increases in uninsured residents, with wide variation in how counties respond, and raised concerns about equity, financing, and whether a more standardized state-county program should be created. Committee members pressed witnesses on county funding, exemptions, homelessness, older adults, undocumented residents, and the effect of administrative burden versus true ineligibility. County representatives from Los Angeles, Santa Clara, Tulare, and San Bernardino described the expected local impacts and asked for additional state support. They said H.R. 1 would drive major losses in Medi-Cal and CalFresh enrollment, increase uncompensated care, strain eligibility staff, and worsen homelessness and food insecurity. Several counties urged the Legislature to fund eligibility workers, preserve enrollment, and consider a CalFresh match waiver; Santa Clara and San Bernardino also cited local tax measures and staffing reductions already underway. No formal vote or committee action was taken in the portion provided.

Transcript Highlights:

• </c> to House Rule 35A. to House Rule 35A.
• </c> legislative day pursuant to House Rule legislative day pursuant to House Rule 48. 48. 48.
• </c> legislative day pursuant to House Rule legislative day pursuant to House Rule 48. 48. 48.
• :32:25.880><c> we</c> These are structures [clears throat] we These are structures [clears throat] we
• 10:46.840><c> and</c> updates outlines and structures and updates outlines and structures and formats

Transcript Highlights:

• These requirements supersede those currently in Ecology's rules, and Ecology is directed to amend its
• rules to conform with the requirements at the next planned rule update.
• Finally, the rule, or this bill gets rid of additionality requirements that are currently in the rule
• Finally, the rule, or this bill gets rid of additionality requirements that are currently in the rule
• The existing 10-year SAF incentive was carefully structured to maximize the value and...

Summary: The Senate Environment, Energy & Technology Committee heard three bills. SB 6246 would direct Ecology to develop recommendations for how no-cost allowances for emissions-intensive trade-exposed facilities (EITEs) should work from 2035 to 2050, and would require EITEs to submit facility-specific emissions data and periodic decarbonization plans as a condition of receiving allowances. Supporters said the bill preserves the Climate Commitment Act’s goals while giving the Legislature and Ecology better information to prevent emissions and job leakage and to plan for industrial decarbonization. Opponents argued the bill adds costly reporting and planning burdens, could threaten competitiveness, and in some cases could lead to allowance withholding; Ecology said it generally supports the approach but wants some streamlining and noted implementation costs are not in the governor’s budget. SB 5932 would provide certainty for sustainable aviation fuel development by changing how Ecology applies electricity carbon intensity in the Clean Fuels Program and by setting an earlier trigger for aviation fuel tax incentives. The sponsor and 12, a Moses Lake SAF developer, said the bill would give investors and producers needed certainty for expansion and help Washington remain competitive. Ecology and Climate Solutions opposed parts of the bill, saying it would weaken incentives for new renewable electricity generation, limit Ecology’s technical discretion, and reduce the Clean Fuels Program’s effectiveness, though Ecology said it supports decarbonizing aviation and is willing to work on the issue through rulemaking. Some testimony also supported the tax certainty portion while objecting to the Clean Fuels Program changes, and one witness asked for clarification on local participation in the incentive. SB 6172 would end remaining state tax and regulatory exemptions for the coal-fired TransAlta plant after its scheduled closure date. The sponsor said Washington should remove special treatment now that the state has phased out coal, while supporters said the bill reinforces the state’s clean energy transition and protects public health and climate goals. A few witnesses raised concerns about possible costs to utilities and ratepayers if the plant were ever required to run in an emergency, and asked for language to protect against that. The hearing concluded with the committee closing public testimony on all three bills; no votes were taken in the transcript.

Transcript Highlights:

• Structured debate on HB 1157.
• I MOVE THAT THE RULES BE WAIVED AND CS.
• I MOVE THE RULES BE WAIVED FOR CS FOR HB.
• I MOVE THE RULES BE WAIVED FOR CS FOR...
• I MOVE THE RULES BE WAIVED FOR CS FOR HB.

Bills: SB 2 , HB 2 , HB 2000 , HB 2196 , HB 213 , HB 222 , HB 645 , HB 1458 , HB 1022 , HB 141 , HB 502 , HB 643 , HB 3093 , HB 1700 , HB 117 , SB 503 , SB 2 , HB 120 , HB 20 , HB 150 , HB 6 , HB 100 , HB 210 , HB 215 , HB 1393 , HB 1151 , HB 1268 , HB 142 , HB 451 , HB 124 , HB 2 , HB 2000 , HB 2196 , HB 213 , HB 222 , HB 645 , HB 1458 , HB 1022 , HB 141 , HB 502 , HB 643 , HB 3093 , HB 1700 , HB 117

Transcript Highlights:

• The changes are structural and format-related that the Legislative Council deemed necessary and removes
• So their rates are... ...those penalties are not part of their rate structure.
• structure that the Legislature has created working properly.
• Groundwater conservation district rules or actions. With that, I'll take any questions. Thank you.
• What are your members doing to conserve water and make sure they're staying within the rules?

Bills: HB4530 , HB4931 , HB5559 , HB5560 , HB143

Committee: House Natural Resources

Keywords: water rights, Texas Water Trust, water bank, environmental conservation, water quality, instream flows, aquifer, water injection, Edwards Aquifer, environmental regulation, groundwater, Texas Commission on Environmental Quality, water conservation, drought, utility regulation, water use restrictions, Public Utility Commission, civil penalties, drought contingency, environmental protection

Summary: The Committee on Natural Resources met with a quorum present and first took up several pending bills for reconsideration and committee substitute adoption. House Bill 2692, relating to codification and clarification of local laws concerning the San Antonio River Authority, was reported favorably to the full House and sent to the Committee on Local and Consent Calendars by an 11-0 vote. House Bills 1407, 1520, 1535, 2970, 4153, 291, 3663, and 3915 were also reconsidered or laid out as pending business, with committee substitutes adopted where needed and each bill reported favorably, generally by unanimous vote, to the full House and then to Calendars or Calendars/Calendars-related referral as applicable. The committee then heard House Bill 4530, which would expand the Texas Water Trust framework to include groundwater rights, require Texas Water Development Board review and approval of groundwater dedications, and notify local groundwater districts when groundwater rights are placed in the trust. The bill’s author and witnesses from the Environmental Defense Fund, The Nature Conservancy, and Chispa Texas supported the measure as a conservation tool and a way to create a clear process for voluntary donations; a Texas Water Development Board witness testified neutrally. The bill was left pending. House Bill 4931, relating to an aquifer storage and recovery project in Medina County, drew support from the author, the Medina County judge, and a regional water alliance witness, who described severe stress on the Edwards Aquifer, low levels at Medina Lake, and the need for a local water-supply tool. The bill was left pending. House Bill 5559, which would clarify enforcement of drought contingency plans for investor-owned water utilities and involve the PUC in model plan development, received support from groundwater district representatives but also concerns from water company and utility witnesses about enforcement authority, approval procedures, and potential conflicts with existing obligations to provide continuous service; the committee substitute was withdrawn and the bill was left pending. House Bill 5560, which would raise the maximum civil penalty for certain groundwater conservation district enforcement actions from $10,000 to $25,000 per violation, prompted debate over whether current law is already sufficient; supporters said the higher cap would better deter overpumping, while opponents argued existing penalties are already severe. That bill was also left pending, and the committee adjourned subject to call of the chair.

Transcript Highlights:

• </c> through rule. through rule.
• through rules.
• </c> rules I mean that that would be by rule rules I mean that that would be by rule &gt;&gt; and<01:
• They need to be in rules.
• </c> day course those teachers like in rules. day course those teachers like in rules.

Bills: HB0076 , HB0102 , HB0115

Committee: Senate Education

Transcript Highlights:

• So two rules I wanted to briefly talk about.
• The other related rule we put into place as a permanent rule a couple years back is our wildfire smoke
• rule.
• Thank you. ...rule we put into place as a permanent rule a couple years back as our wildfire smoke rule
• Is there a rule for firefighters? Too.

Committee: House Labor & Workplace Standards

Summary: The committee heard a report from Labor and Industries on the Underground Economy Task Force in the construction industry. L&I said the task force, created by a 2024 budget proviso, studied underreporting, worker misclassification, unpaid taxes and premiums, and other underground-economy activity. L&I described consensus recommendations including defining and regulating construction labor providers, improving interagency information sharing, increasing penalties for repeat offenders, giving L&I more authority over successor accountability, reviewing agency penalties and policies, and exploring ways to track cash payments. Majority-but-not-consensus recommendations included posting subcontractor notices at job sites, setting a threshold for independent contractor use that would trigger review, holding direct contractors liable for unpaid wages owed by subcontractors, and reviewing reporting requirements. Testifiers from labor, business, and the Attorney General’s Office generally supported stronger enforcement and transparency, while business representatives cautioned against overregulation, preserving lawful cash payments, and protecting legitimate independent contractors and small businesses. L&I said the final report would be issued by December 31 and that the underground economy committee would be reconvened. The committee then heard the wage recovery work group report. L&I explained current wage-complaint law and the work group’s consensus recommendations to let the department prioritize wage complaints strategically, aggregate related complaints, raise the minimum penalty for willful violations from $1,000 to $1,500 and use a penalty matrix, improve employer awareness, and create a wage recovery fund. Under the proposal, penalties would be deposited into a new fund account, and after the fund is sufficiently built up, limited early payments could be made to eligible low-income workers facing immediate hardship, with a five-year review built in. Business and labor representatives both supported the general framework, though business raised concern about safeguards to recover funds if a claim later proved invalid or fraudulent. The committee also received an overview of Washington’s apprenticeship system and the Washington State Apprenticeship and Training Council. L&I described Washington as a state apprenticeship agency with higher standards than the federal system, and said registered apprenticeship combines paid on-the-job training with classroom instruction. L&I reported more than 15,500 active apprentices, 4,800 new registrations, 2,500 completions, and 206 active sponsors. Members asked about the difference between state and federal apprenticeship pathways, the role of program sponsors and training agents, and the objection process for new programs. L&I said objections do not stop approval but can delay recognition, and noted ongoing internal work to improve the process. The presentation also highlighted strong post-apprenticeship earnings and return on investment. Finally, the committee heard updates on wildland firefighter respiratory protection, the impacts of federal cuts to NIOSH, and ESD’s unemployment insurance and workforce systems. L&I and SHARP said wildland firefighters face significant smoke exposure and cancer risk, but current respirator options are limited by remote conditions, communication needs, fit, and heat; no NIOSH-approved commercial respirator currently meets the relevant NFPA standard. L&I said Washington’s firefighter rules do not currently require respiratory protection for wildland firefighting. On NIOSH, the presenter warned that federal cuts and grant disruptions could reduce training, surveillance, firefighter cancer research, agricultural safety work, and exposure-assessment programs, including work relevant to Hanford and mining safety. ESD reported rising UI claims, a stable unemployment rate, federal funding uncertainty, and pressure on the trust fund, but also described technology and process changes that have reduced call-center bottlenecks and improved claim processing. ESD said a 90-day pilot that compresses phone hours has increased calls answered and work completed while improving timeliness of first payments.

Transcript Highlights:

• So the structures range from 18% to 30%, depending on the amount of the loan.
• So the structures range from 18 to 30%, depending on the amount of the loan.
• In terms of the Supreme Court ruling, correct, that said that they could.
• In terms of the Supreme Court ruling, correct.
• That's rewriting the rules mid-game, something no fair society should ever do.

Bills: SB1113 , SB1117 , SB1206 , SB1460 , SB1802 , SB1906 , SB1917 , SB2340 , SB2455 , SB2680 , SB2690 , SB705 , SB748

Committee: Senate Business & Commerce

Summary: The committee took up pending business first and reported several bills favorably, including SB 2139, SB 2610, SB 1856, SB 2530, SB 2401, SB 2858, and SB 3016, with most of those measures moving out on committee substitutes and being sent to the local and uncontested calendar or to the full Senate. The committee also heard SB 1906 on expanding Chapter 342E consumer lending rates; supporters argued it would modernize Texas law and expand access to safe, regulated credit, while opponents from Texas Appleseed and AARP warned it would raise costs on already expensive loans and worsen debt burdens. SB 1906 was left pending after testimony. The committee also reconsidered and re-voted SB 1856 after a procedural issue, with the substitute ultimately adopted and the bill reported favorably. The committee then heard SB 1113, which would clarify that certain vehicle converters, including a Texarkana business, do not need an additional dealer license to sell converted vehicles. The bill’s supporters described a long-standing business model and said the new metal license plate rules had created problems, while the Texas Automobile Dealers Association opposed the bill in its current form and said it could be resolved through DMV action or narrower changes. DMV said it was still researching a possible administrative fix, and SB 1113 was left pending. The committee also heard SB 2680, a Public Information Act cleanup bill dealing with emergency deadlines, business-day exclusions, and litigation timing; broadcasters and other open-government advocates argued the issues were already addressed by prior law and court rulings, while the Attorney General’s office said the bill would help with catastrophe notices and timing conflicts. SB 2680 was left pending. Other bills heard included SB 1117, which would allow any Texas-licensed dentist to administer botulinum toxin neuromodulators for aesthetic purposes in the oral and maxillofacial region; the author and dental witnesses said it would clarify scope and improve access, and the bill was left pending. SB 2340 would clarify the Attorney General’s investigative authority over Texas corporations, including pre-suit depositions and sworn written questions; opponents raised due process and separation-of-powers concerns, and the bill was left pending. The committee also heard SB 705 and SB 748, both TDLR cleanup bills, and SB 1206, which would impose timelines and notice requirements on municipalities reviewing transmission projects; SB 1206 was supported by an electric cooperative and left pending. SB 1460, creating an ethics violation registry tied to licensing consequences, drew constitutional and due-process objections from several witnesses and was also left pending. After a recess, the committee heard SB 1802 on landlord duties to repair mobility assistance devices like elevators and ramps in rental housing, with the author describing prolonged outages affecting seniors; the bill was left pending. Finally, SB 2455, creating an Energy Waste Advisory Committee to coordinate efficiency and demand-response programs, drew support from energy-efficiency and environmental witnesses and was left pending, and SB 2690, targeting deceptive business-certification solicitations, was laid out and opened to testimony before the transcript ended.

Transcript Highlights:

• I'm going to be in the Rules Committee at 1:30. I don't know where you'll be.
• We've talked about the structural deficit.
• Instead, we have a $30 billion structural deficit, which is real.
• I'll try not to follow that rule.
• That's something I think I'm going to have to bring to rules or whatever.

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• We're cleaning up penalties and fee structures... ...cleaning up penalties and fee structures.
• It also cleans up the fee structure on page 14. I'm moving on; I'm not going to take much longer.
• On page 19, we're diversifying the board membership and changing the structure of the board. ...and we're
• No, they had some things that they said were going to be done in their rule.
• rule-making, and we bring them back to see how that all works.

Bills: HB159 , HB110 , HB114 , HB115 , HB116 , HB123 , HB125

Committee: House Boards, Agencies and Commissions

Transcript Highlights:

• I'm going to provide folks a few reminders of the rules of the road here in the House Ag and Natural
• Within the county structure specifically, counties benefit in two ways.
• My question for you is then, in that fee-for-structure cost recovery...
• My question for you is then, in that fee-for-structure, cost recovery structure, are there examples where
• a gradated structure, but I don't think that those categories are right.

Bills: SB5919 , SB5816 , SJM8015 , HB2737

Committee: House Agriculture & Natural Resources

Keywords: fire safety, insurance incentives, best practices, community protection, voluntary measures, juice grapes, agriculture, commerce, state regulation, market access, federal response, wildfire protection, community safety, infrastructure, natural resources, commercial shellfish, shellfish fees, Department of Health, biotoxin testing, export certificate

Transcript Highlights:

• The fusion center network operates mostly in secret with opaque authorities and governance structures
• The fusion center network operates mostly in secret with opaque authorities and governance structures
• So this audit seeks to provide an overview of how the PUC is enforcing Rule 21, if at all.
• In that case, the State Board of Education ruled unanimously in the board's favor.
• In that case, the State Board of Education ruled unanimously in the board's favor.

Committee: Joint Joint Legislative Audit

Summary: The committee met as a subcommittee because it initially lacked a quorum, heard a status update from State Auditor Grant Parks, and reviewed several new audit requests. Parks reported that 10 previously requested audits were underway, with most expected to be released in spring/summer and one pesticide audit still pending; he also noted ongoing litigation with Huntington Beach over a 2024 audit. He said the office had grown to just over 200 employees and could start about five new JALAC audits between April and July. The committee also noted that one Prop. 28 request was being held and one PUC-related request was moved off consent to the regular calendar. Senator Cervantes presented an audit request on California fusion centers, arguing they operate with little public oversight and may collect, share, and store sensitive information without adequate transparency or safeguards. Supporters, including former FBI agent Mike German and ACLU California Action, said fusion centers function as secretive intelligence-sharing hubs that can produce inaccurate or biased reports and may undermine privacy and civil liberties. Parks said the audit would examine the State Threat Assessment Center and two local fusion centers, focusing on oversight, legal authority, data quality, unauthorized disclosure controls, use of private vendors, funding, and performance metrics, while warning of likely access and public-disclosure limitations. The request drew sharp opposition from Assembly Member DeMaio, who called it a politicized “witch hunt,” but public comment included support from the Electronic Frontier Foundation. Senator Allen then presented an audit of the Public Utilities Commission’s enforcement of Rule 21 interconnection timelines for customer-sited solar and storage projects. He and witnesses said utilities have repeatedly missed deadlines, causing long delays and added costs for schools, nonprofits, and other customers; CPUC staff responded that the commission adopted timelines and compliance benchmarks in 2020, publishes quarterly data, and is already pursuing the issue through workshops and an open proceeding. Parks said the audit would assess CPUC monitoring, enforcement tools, and reasons for utility noncompliance. Public comment was mixed, with solar advocates supporting the request and PG&E objecting on process grounds and arguing the commission’s ongoing proceeding should address the issue. Senator Perez, with Senator Fong, requested an audit of Caltrans’ administration of the former SR 710 corridor property sales and affordable housing program. They described tenant complaints about mold, pests, deferred maintenance, inconsistent pricing and eligibility information, and possible failures to inform residents of purchase rights; Caltrans said it is working to complete sales and has already closed 59 properties since fiscal year 2024-25. Parks said the audit would examine compliance with the Roberti Act, pricing, appraisals, communications, rent accounting, property maintenance, and follow-up on prior recommendations. Finally, Senator Umberg requested an audit of the Orange County Board of Education, citing transparency, litigation spending, charter authorization, procurement, and whistleblower concerns; after quorum was established, Parks said the audit would review Brown Act and Public Records Act compliance, public resource use, contracting, litigation costs, charter oversight, and retaliation complaints.

Transcript Highlights:

• There was a lot of discussion around how to structure the payments, particularly in the managed care
• That's because of a signal that the federal government has given around potential rule changes.
• Proposition 35 changes the rules on how to spend the funds beginning in 2027.
• The PACE fees that we are proposing are really structured.
• plan under DMHC, so we really modeled the structure based on the way that is currently structured for

Summary: The committee heard a budget oversight hearing on the Department of Health Care Services, focusing first on the overall Medi-Cal budget and a March General Fund loan to cover a current-year shortfall. DHCS said the 2025-26 budget proposal totals $193.4 billion, with Medi-Cal projected at $188.1 billion total funds and $42.1 billion General Fund, driven by higher enrollment, pharmacy costs, managed care growth, and costs tied to eligibility expansions and the COVID-era redetermination unwinding. The department said the $3.44 billion loan was needed to manage cash flow and ensure timely payments to providers and plans, while the LAO noted Medi-Cal’s cash-basis budgeting creates volatility and that more detailed estimates would come with the May Revision. Members discussed federal Medicaid threats, the need for transparency on cost drivers, and the impact of pharmacy spending, long-term care, and immigration-related coverage expansions. The second major topic was family health programs, including California Children’s Services, the continuous coverage unwinding, and opioid settlement fund spending. DHCS described CCS funding methodology changes, ongoing county stakeholder work, and a delayed rollout of CCS monitoring and oversight until July 1, 2025, while county representatives and advocates argued the program is underfunded and asked for more technical assistance and a delay in implementation. On the unwinding, the department explained that federal redetermination flexibilities helped maintain coverage after the pandemic, but the Governor’s budget proposes ending them at the end of June 2025; advocates urged making the flexibilities permanent to avoid coverage losses. For opioid settlement funds, DHCS and Finance said the budget increases funding for naloxone distribution while reducing other harm-reduction spending based on updated settlement revenues, prompting criticism from members and public commenters who argued the change would weaken effective harm-reduction programs. The hearing also included an update on Proposition 35 implementation. DHCS said the voter-approved measure continuously appropriates MCO tax revenues beginning in 2025, with up to $4.6 billion annually available for specified Medi-Cal and provider investments in 2025 and 2026, but implementation depends on consultation with the required stakeholder advisory committee. The department and LAO noted uncertainty about future federal rules affecting the MCO tax after 2026. Public testimony largely supported maintaining Medi-Cal expansions, protecting immigrant coverage, preserving harm-reduction funding, and increasing support for community health workers, pediatric dental care, and CCS county administration. No votes were taken during the portion of the hearing provided.

Transcript Highlights:

• ,</c> standards, there's a lot of rules, standards, there's a lot of rules, there's<00:07:56.639><c>
• ,</c><01:56:16.800><c> performance-based</c> transparent rules, performance-based transparent rules,
• </c> opportunities to better structure opportunities to better structure funding<02:19:07.439><c> and
• That's a structural issue concern.
• </c> structural reality built into the law. structural reality built into the law.

Committee: Joint Appropriations

Transcript Highlights:

• Our rules, our Joint Rule 18, talks about the proponent of the bill, which I am, has the responsibility
• In fact, our Joint Rule says I only need to provide a fiscal note for one year.
• Our rules, our joint rule number 18, talks about the proponent of the bill, which I am, has the responsibility
• It's based on very different rules.
• And I would think the structure of taxation would certainly be an internal matter.

Committee: House Revenue and Taxation

Transcript Highlights:

• Should we take a vote after each rule?
• The pending amendment to this rule is to actually remove it entirely, repeal the rule.
• This is Rules of Career Technical Centers.
• order of rules on our agenda.
• So in the temporary rules on page, starting on page five, or on page five, is the temporary rule incorporating

Committee: House Education