Transcript Highlights:

• The complexity of the system that we have, and the system view of the U.S. healthcare industry is just
• and instead move toward value-based payments, population-based payments, and episodes of care.
• Value-based payments, population-based payments, and episodes of care are designed to incentivize quality
• Predictable payment rules and stable funding within the health care system are also essential to keep
• get a bonus payment.

Committee: House Health Care Affordability, Select

Transcript Highlights:

• It is a cost applied to all of the card services as a convenience to process the payment.
• Well, it can range, depends on the size of the system. It can range. It can range.
• Well, it can range, depending on the size of the system.
• So the water system is what remits the payment to the health department, and then it's the convenience
• These are water systems. Okay.

Summary: The Senate Committee on Revenue and Fiscal Affairs met on May 28, 2026, approved the May 19 minutes, and then considered three third-party convenience fee schedules for online payments. The first was for the Department of Agriculture and Forestry, presented by Rebecca Dupree with Louisiana Interactive; members confirmed the online payment option would be voluntary and approved the fee schedule without objection. The second was for the Department of Health’s Safe Drinking Water Program, presented by Karen Benjamin, and generated extended discussion about a $2.50 flat fee plus a 2.5% card-processing charge, especially whether that charge would violate recently passed Senate Bill 254 regarding debit card surcharges. Senators Mizell, Lambert, and Luneau questioned the structure, and department representatives said they believed the fee was not a surcharge and that ACH payments would avoid the percentage charge; the committee approved the fee schedule but urged the department to review it for compliance with SB 254. The third fee schedule was for the Louisiana Office of State Fire Marshal, presented by Lindsay Savoy and Garrett Lee, covering online payments for the conveyance program and the Fire Emergency Training Academy. Senators again raised concerns about the 2.5% card charge in light of SB 254, and the presenters said they intended to comply with the new law and would discuss the issue further. The committee approved this fee schedule as well, with a similar reminder to consider the bill’s impact going forward. The meeting then adjourned.

Transcript Highlights:

• </c> and that the system is working for them. and that the system is working for them.
• It is a big, big, big system.
• It is a big, big, big system.
• It is a big, big, big system.
• It is a big, big, big system.

Committee: Senate Human Services

Transcript Highlights:

• All of the opioid settlements involve payments over time according to specific payment schedules, and
• It's a huge gap in our system.
• The incentive payment program made $1.5 billion available in incentive payments to Medi-Cal managed care
• , the managed care payment system generally, have impacted and kept utilization of the benefits lower
• The main question I have is that this really could be a significant reshaping of the payment system,

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:

• In California, statewide, in our child support services system, we have a million children in the system
• I don't have any children yet, but I've seen the foster care system up close.
• I don't have any children yet, but I've seen the foster care system up close.
• Payments are supposed to go through the state case registry no matter what, right?
• Ultimately, these are court-ordered payments that have to be paid.

Summary: The Assembly Judiciary Committee met without quorum for part of the hearing and proceeded on several bills, with testimony focused on probate access, domestic violence protections, child support services, and an immigration resolution. On AB 1660, the author and county public administrators said financial institutions often delay or refuse lawful requests for account information and assets, causing harm to estates and vulnerable people; banks and credit union representatives opposed the new penalties, arguing the underlying statute may be outdated and that fraud concerns require more verification. The author agreed to amend the bill to make penalties discretionary rather than mandatory, and the bill ultimately passed out of committee to the floor with a due-pass recommendation and later add-on approval. AB 1657, by Assembly Member Rogers, would bar courts from requiring domestic violence survivors seeking temporary restraining orders to notify the alleged abuser before filing; the Sonoma County district attorney and others supported it as a safety measure, and it passed unanimously to the floor with multiple members requesting coauthor status. The committee also heard AB 1643, which would automatically enroll custodial parents in child support services after a support order is entered unless they opt out. The author and child support officials argued the bill would increase access to free enforcement and collection services, reduce child poverty, and help families who do not complete the current application process; some members raised concerns about fees, opt-out clarity, and whether automatic enrollment could interfere with amicable co-parenting arrangements. After discussion about the program’s funding and the need for a clear opt-out process, the bill was moved to the Human Services Committee, with some members voting no or not voting and later add-on action placing it on call and then advancing it. The committee also considered SJR 8, urging Congress to modernize the federal immigration registry so long-term undocumented residents could qualify for lawful permanent residency on a rolling basis; supporters described it as a long-overdue pathway for immigrant families and workers, and the resolution was adopted to the floor after a vote and later add-on action. Throughout the hearing, members repeatedly emphasized the need to balance enforcement, fraud prevention, and access to services. Several members supported the domestic violence and probate bills as necessary fixes to existing systems, while others urged continued work with stakeholders on standardized forms, clearer procedures, and modernized safeguards. The committee also took up consent items and add-ons, including AB 1597, AB 1651, and AB 1652 on consent, and later finalized votes on the measures discussed above.

Transcript Highlights:

• . system. system.
• state</c> the swift payment system that the state the swift payment system that the state uses<01:26:
• system.
• system.
• This is just what state payment system.

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• </c> um for SNAP um based on our payment um for SNAP um based on our payment error<00:18:19.520><c> rate
• So that's our normal payment schedule.
• that made duplicate or utility payments that made duplicate payments<00:26:24.640><c> available</c><
• </c> payments available through this program. payments available through this program.
• ><c> actual</c><00:27:12.240><c> cost</c> [snorts] Housing payment um actual cost [snorts] Housing payment

Summary: The committee on Human Services and Homelessness received a briefing from Scott Morish of the Hawaii Department of Human Services on upcoming SNAP changes tied to the federal One Big Beautiful Bill Act (HR1/OBBA) and on the federal government shutdown’s impact on November SNAP benefits. DHS described its SNAP workload and statewide participation, noting about 86,229 households and 168,947 individuals receiving benefits in September, with roughly $58–$60 million distributed monthly. Morish said DHS has already made system and policy updates in preparation for the November 1 implementation date. Most of the briefing focused on expanded able-bodied adult work requirements. DHS explained that the work rule now applies to additional groups, including adults ages 55 to 64, households with dependent children age 14 and older, people experiencing homelessness, veterans, and youth ages 18 to 24 who transitioned from foster care. The department said affected individuals must generally work or participate in qualifying activities for 80 hours per month, with noncompliance leading to a three-month benefit limit and a 36-month ineligibility period. DHS also reviewed exemptions, including for disability, pregnancy, caregiving, school or training, unemployment, and substance use treatment, and clarified that the new Indian Health Care Improvement Act exemption does not include Native Hawaiians. DHS said it received approval for Hawaii’s request for a non-contiguous-state exemption from payment error penalties through September 30, 2026, but must still make good-faith efforts to implement the work rules. Morish also outlined OBBA changes to non-citizen eligibility, saying that beginning November 1 only lawful permanent residents, COFA residents, and Cuban or Haitian entrants will remain eligible, while other previously eligible categories such as refugees, asylees, and some parolees will no longer qualify. He noted that ineligible non-citizens must still be included in household reporting and their income counted. The committee then discussed the federal shutdown’s effect on SNAP, with DHS saying USDA directed states to suspend November SNAP issuance because of insufficient funding; existing October benefits remain usable, and TANF and general assistance are not affected. DHS said it has posted FAQs and call-center messages, and is working with the Hawaii Food Bank on an additional $2 million in support and with nonprofit partners on a new Hawaii Relief program funded by TANF for families with dependent children. Members asked about eligibility for kūpuna and documentation for the relief program, and DHS said the TANF-funded program is limited to households with a child under 18, while FAQs are now available online.

Transcript Highlights:

• </c><00:10:13.440><c> and</c> addressing um improper payments and addressing um improper payments and
• </c> problem in the human services system problem in the human services system that<00:25:04.400><c>
• </c> create a couple week lag in payment create a couple week lag in payment within<00:47:36.800><c>
• </c> Minnesota's uh human services systems. Minnesota's uh human services systems.
• </c> ensure that that system is there. ensure that that system is there.

Committee: House Human Services Finance and Policy

Transcript Highlights:

• A landlord must first apply any payment made by a tenant toward rent before applying any payment toward
• the tenant any means of payment agreed upon in the rental agreement and any means of payment previously
• full payment.
• Payment portals are not neutral tools. Once they are open, payments are automatically accepted.
• Will you accept a partial payment?

Bills: SB6139 , SB6214 , SB6237 , SB6091 , SB6096 , SB6200 , SGA9278 , SGA9279

Committee: Senate Housing

Keywords: rental payments, landlords, tenants, eviction, legal procedures, housing stability, land banking, property authority, housing development, urban planning, real estate management, SB 6237, Washington landlord-tenant law, Residential Landlord-Tenant Act, rental property disclosure, flood risk, flood hazard area, special flood hazard area, potential flooding, tenant notice

Transcript Highlights:

• So it expands it to include Proposition 98 settle-up payments, budgetary borrowing, and payments toward
• The other allowed debt payments also would remain.
• Whether it be groceries, car payments, tuition, whatever it is.
• The relative savings associated with making those extra payments through the debt payments would really
• The relative savings associated with making those extra payments through the debt payments would really

Committee: Senate Budget and Fiscal Review

Transcript Highlights:

• SOME SYSTEMS HAVE BEEN UPDATED.
• THE SAME OF THE SUPPLEMENTAL PAYMENTS FOR THE CANCER HOSPITALS ALL THESE SUPPLEMENTAL PAYMENTS ALSO HAVE
• THE CHILDREN SPECIALTY HOSPITAL SUPPLEMENTAL PAYMENTS ARE TO PAYMENTS HERE. ONE FOR GE.
• THE KICK PAYMENT WOULD BE BASED PAYMENT PLUS A PERCENTAGE OF COST THAT THE PLANS HAVE INCURRED FOR THOSE
• WE ARE STILL UNDER OUR UPPER PAYMENT LIMIT THAT IS NOT AN ISSUE OR CONCERN.

Transcript Highlights:

• The formal child welfare system.
• These large systems, you know, in these large systems, foster youth are a very small population.
• This is our main method of measuring performance within the child welfare system. system.
• Creating the level of care system.
• and the child welfare system.

Transcript Highlights:

• the award on provider payments.
• And the interpretation was that's a provider payment, and provider payments are capped at 15%.
• So they allow for provider payments, but they can only be— Provider payments are capped at 15%.
• This system will integrate with other CDPH systems.
• surveillance system.

Summary: The hearing began with testimony from Let California Kids Hear and supporters urging action on pediatric hearing aid coverage. Advocates said California has repeatedly failed to enact a workable solution over the past eight years and argued that children need early access to sound to support development. The proposal discussed would limit the coverage mandate to the large-group market, which advocates said would cover roughly 70% to 80% of affected children and avoid the exchange-related cost issue that contributed to prior vetoes. Supporters, including parents, audiologists, and children’s health groups, backed the proposal, and the chair expressed sympathy and support while noting hope for a federal solution for exchange plans. The Department of Finance then gave opening remarks about the state’s structural deficit and the need to balance new investments against projected out-year shortfalls. HCAI followed with a broad overview of its programs, including CalRx insulin and naloxone initiatives, reproductive health grants, the Office of Health Care Affordability, hospital seismic compliance, workforce programs, and the diaper access initiative. Members asked about geographic targeting of workforce funds, the behavioral health workforce pipeline, and the status of the 21st Century Nursing Initiative, which HCAI said had reverted funds. The committee also discussed a proposed transfer of the Data Exchange Framework and Office of the Patient Advocate to HCAI, new reporting on long-term care staffing and health coverage waiting periods, and a Behavioral Health Services Act workforce proposal that would use BHSA funds to support training, stipends, and technical assistance while offsetting $100 million in General Fund spending; members and LAO questioned the offset and asked for more detail, and the item was held open. HCAI also presented the Rural Health Transformation Program, explaining that California received $233.6 million in federal funds for the first year and had to revise its proposal so that $35 million in provider payments would be tied to specific transformative activities rather than general financial relief. The program will fund rural care model redesign, workforce development, and technology/infrastructure improvements, with grants to be rolled out on a tight timeline and subject to CMS approval. Members asked about the size of California’s award, the use of funds for maternity care, labor and delivery access, dialysis, tribal set-asides, and the role of a technical assistance contractor. The department said the program will use supply-and-demand workforce modeling to target funding and that all funds must be obligated by October 30. Finally, the Department of Managed Health Care outlined its budget and two major bill-related proposals: SB 41 on PBM reform and SB 306 on prior authorization transparency. DMHC said SB 41 would require PBM licensure, ban spread pricing, require rebate pass-through, and regulate pharmacy network practices, while SB 306 would require reporting on prior authorization and create a list of services exempt from prior authorization. DMHC requested additional positions and funding to implement both measures.

Transcript Highlights:

• payments.
• system.
• The capitated payment has gone out the door before SSA updates their system, and then what it will show
• Their system, and then what it will show is that there was a payment that was made after the incarceration
• management system.

Committee: All LEGISLATIVE JOINT AUDITING

Summary: The Legislative Joint Auditing Committee met on June 5 and first adopted prior minutes and several committee reports. The executive committee report noted adoption of its minutes, staff updates on scheduled audits, approval of an annual financial audit for the City of Horseshoe Bend, and an update on the intern program. The Counties and Municipalities report covered delinquent private water and sewer audits, compliance follow-up with towns including Denning, Gum Springs, Omer, Fargo, Jericho, and Haynes, and review of current and deferred reports; the committee filed most current reports but deferred several and referred some matters to prosecutors and the Attorney General. The Educational Institutions report said 103 education audits were reviewed, most with no findings, while several school districts had findings and one Booneville School District finding was referred to law enforcement. The State Agencies report included findings at the Department of Finance and Administration and a deferred Department of Health report, and the committee filed 13 reports. The committee then received lengthy presentations on the State of Arkansas annual comprehensive financial report and the state single audit for fiscal year ended June 30, 2025. Legislative Audit issued unmodified opinions on the state financial statements, but identified two material weaknesses: insufficient internal controls at the Office of State Technology to monitor threats and unauthorized access, and improper methodology changes and documentation issues at the Division of Workforce Services affecting year-end estimates for unemployment-related accounts. The single audit covered $12.4 billion in federal awards across 469 programs, with 16 major programs reviewed. Auditors reported 33 findings overall, including 31 federal findings, $12.9 million in outstanding questioned costs, and qualified opinions for the Summer Electronic Benefit Transfer program, the Coronavirus Capital Projects Fund, and the Child Care Development Fund cluster. Committee members questioned DHS, the broadband office, OST, DFA, Education, and Workforce Services about the findings, corrective actions, cyber protections, federal drawdowns, child care reporting, and accounting methodology changes. Several agencies described corrective steps. DHS said it had changed how it draws Summer EBT funds, addressed provider revalidation and incarceration-related Medicaid issues, and updated internal processes and staffing. The broadband office said the questioned costs reflected invoice documentation disputes rather than missing payments and expected Treasury review to resolve the issue. OST said it was expanding logging, endpoint detection, and enterprise monitoring, and described broader cybersecurity investments, training, and a roadmap. DFA and Workforce Services addressed the workers’ compensation and unemployment accounting issues, with Workforce Services saying it had updated its policy and submitted the methodology to DFA. After discussion, the committee voted to hold the two statewide audit reports over until the August meeting, with members asked to submit specific questions in advance so only needed agencies would return. The final item was a special report on the Hot Spring County Solid Waste Authority for January 1, 2023 through June 30, 2025. The audit reviewed compliance with laws, board procedures, bidding, payroll, permits, inspections, and cash handling. It noted prior private audit findings on segregation of duties, that recent private audit reports had not been obtained for 2023 through 2025, and that the current administrator said prior office staff and bookkeeping contractors resigned when he was hired. The authority’s operations and revenue sources were described, and the report was presented for committee review.

Transcript Highlights:

• payments.
• system.
• The capitated payment has gone out the door before SSA updates their system, and then what it will show
• management system.
• alerting system.

Committee: All LEGISLATIVE JOINT AUDITING

Transcript Highlights:

• systems and master accounts.
• And should be a leader in payment stablecoins.
• That's true in traditional financial and payment services as well.
• But if we're going to ultimately intertwine this with the financial system...
• And solves for the unique risks in the system, especially respect to custody.

Committee: Senate Subcommittee on Digital Assets

Keywords: Digital Assets, Bitcoin, Stablecoins, Legislation, Bipartisan, Consumer Protection, Regulatory Framework, Financial Innovation, Testimony

Summary: The inaugural meeting of the Digital Assets Subcommittee brought a wave of excitement and anticipation regarding the future of digital assets, including Bitcoin and stablecoins. Chair Lummis expressed gratitude towards Senator Scott for establishing the subcommittee, indicating a commitment to promote responsible innovation while safeguarding consumers. Members discussed the necessity for a bipartisan legislative framework to regulate digital asset markets effectively while outlining the potential benefits such legislation could have on enhancing financial inclusion and streamlining payments. The meeting featured expert testimonies from key figures in the digital asset industry, highlighting the importance of creating clear regulatory guidance for digital assets to foster innovation without compromising consumer protections.

Transcript Highlights:

• and a system of monitoring and accountability related to that.
• So before payment can even occur, a family must be— So before payment can even occur, a family must be
• And then payment is available after the provider provides care.
• talking a little bit about provider payment.
• The system can handle it themselves, but we need the system to do that.

Summary: The committee began with a work session on Washington’s child care oversight and subsidy system, focusing on Working Connections Child Care, licensing, audits, and fraud prevention. DCYF officials said the program serves over 63,000 eligible families, with about 6,600 licensed providers and roughly 2,200 license-exempt family, friend, and neighbor providers. They described annual unannounced licensing visits, complaint investigations, attendance tracking, eligibility verification, random and focused audits, and referrals to the Office of Fraud and Accountability or Office of Financial Recovery when needed. Senators asked about voucher amounts, visit frequency, and what happens when children are not present; officials said the average subsidy is about $2,200 per month, providers are paid directly, and repeated failed visits can lead to license closure. Child Care Aware and provider testimony emphasized the quality system, Early Achievers, and a virtual provider described the practical realities of home-based care and unannounced inspections. The committee then heard Senate Bill 5952, which would standardize the process for waiving high school physical education requirements. The bill’s sponsor said the goal was to make PE waiver decisions consistent across districts so students who move schools are not disadvantaged, especially in six-period schedules with limited room for electives. Student supporters said a uniform process would improve fairness and help students fit in AP, career, or other coursework. Opponents, including PE teachers and the Washington Association of School Principals, argued that PE is a core academic subject, that athletics is not interchangeable with PE, and that local flexibility should remain. The State Board of Education supported the bill, saying current district policies vary widely and a standardized process would improve equity and transparency. Next, the committee took testimony on Senate Bill 5961, which would transfer the Imagination Library of Washington from DCYF to OSPI. The sponsor called it a simple administrative move to align the book-gifting program with early literacy and K-12 education, noting the program serves about 120,000 children in all 39 counties. OSPI and program representatives supported the transfer, saying it better fits the birth-to-grade-three literacy continuum and strengthens accountability. Testifiers highlighted the program’s role in school readiness, early brain development, and access to physical books for young children. Finally, the committee opened Senate Bill 5969, which would allow a student’s IEP transition plan to satisfy high school and beyond plan requirements if the IEP team chooses. The sponsor, a special education teacher, said the bill would reduce duplication and better support students with disabilities as they transition to postsecondary life. The committee then began hearing testimony on the proposal.

Transcript Highlights:

• Well, it can range, depends on the size of the system. It can range. It can range.
• Well, it can range, depends on the size of the system.
• So the water system is what remits the payment to...
• The water system is what remits the payment to the health department, and then it's the convenience fee
• These are water systems. Okay.

Committee: Senate Revenue & Fiscal Affairs

Transcript Highlights:

• at 100% of Medicare payment rates.
• It simplifies the payment plans by and large.
• health care systems.
• HR1 will take billions out of California's health system.
• payment error rate.

Summary: The Assembly Budget Subcommittee on Accountability and Oversight held its fifth hearing of the year to examine the newly enacted federal H.R. 1 and its effects on California. Members and the chair described the law as a major threat to state health, food, education, and climate programs, and emphasized that California would not be able to fully backfill the federal cuts. Several members also highlighted the bill’s tax provisions, including temporary deductions for tips, overtime, seniors, and auto loan interest, while warning that the largest benefits flow to higher-income taxpayers and that major cuts to Medi-Cal, CalFresh, and clean-energy incentives are delayed or phased in over time. The Legislative Analyst’s Office and the Department of Finance presented detailed overviews of the bill’s likely impacts and implementation timelines. They identified the main affected areas as health care coverage and financing, food assistance, higher education, personal income taxes, and clean-energy/electric-vehicle credits. They explained that H.R. 1 limits provider taxes used to finance Medi-Cal, adds work and redetermination requirements, restricts CalFresh eligibility and increases state costs, changes student loan and Pell Grant rules, extends and modifies federal tax provisions, and phases out many clean-energy credits. Finance also noted major rescissions of Inflation Reduction Act funds, new border and immigration enforcement spending, and the possibility of PAYGO sequestration if Congress does not act to offset the deficit increase. During member questions, the committee focused on likely enrollment losses, administrative burdens, and fiscal exposure for the state and counties. Witnesses said many details still depend on federal guidance, but they estimated significant impacts on Medi-Cal, CalFresh, and graduate/professional student borrowing, and noted that California’s high CalFresh error rate could increase state costs. UC testified that the elimination of Graduate PLUS loans would affect thousands of professional students, especially in health, law, and other high-cost programs. Members asked for follow-up data on county, health, and tax impacts, and staff agreed to provide additional tables and estimates as implementation guidance becomes clearer. Public commenters from counties, early childhood advocates, health coalitions, disability rights groups, immigrant-rights organizations, and other stakeholders urged the Legislature to mitigate the law’s effects. They warned of higher county costs, reduced access to health care and food assistance, increased administrative burdens, and harm to children, immigrants, people with disabilities, and low-income families. Several urged new state revenue solutions and stronger protections for Medi-Cal, CalFresh, child care, and home- and community-based services. No votes were taken; the hearing was informational and ended with a commitment to continue monitoring federal guidance and to work on state responses in the budget process.

Transcript Highlights:

• There are systems There are systems that have been demonstrated in other jurisdictions that eliminate
• One consisting of a payment of $8,32 on One consisting of a payment of $8,32 on July 1, 2027, and two
• of 2,00 $17 on July 1, 2027, and two payments of $17 on July 1, 2027, and two payments of $1,800 on
• , augmented school system.
• And what I see in here, the percentage of income tax payments, is that this falls after Tax payments,